Development of a four star hotel in

the Bavarian Altmühl Valley

Bachelor Thesis for Obtaining the Degree

Bachelor of Business Administration

In Tourism & Hospitality Management

Submitted to Gabriel Kacerovsky

Anna-Lena Listl

1111577

Vienna, 15th May 2014

P a g e | 2

Declaration of authorship I hereby affirm that this Bachelor’s Thesis represents my own written work and that I have

used no sources and aids other than those indicated. All passages quoted from publications

or paraphrased from these sources are properly cited and attributed.

The thesis was not submitted in the same or in a substantially similar version, not even

partially, to another examination board and was not published elsewhere.

15.05.2014

Date Signature

P a g e | 3

Table of contents

Declaration of authorship ........................................................................................................ 2

Table of contents ..................................................................................................................... 3

List of charts ............................................................................................................................. 5

List of abbreviations ................................................................................................................. 7

Classification ............................................................................................................................ 8

1 Project Introduction ............................................................................................................ 10

1.1 Project .......................................................................................................................... 10

1.2 Assignment ................................................................................................................... 10

2 Location ............................................................................................................................... 11

2.1 Kapfelberg .................................................................................................................... 11

2.1.1 Location – macro ................................................................................................... 11

2.1.2 Location – micro .................................................................................................... 12

2.2 Nature Park Altmühl Valley .......................................................................................... 15

3 Market ................................................................................................................................. 17

3.1 General economic data ................................................................................................ 17

3.2 Culture and tourism ..................................................................................................... 17

3.3 Population and demographic growth .......................................................................... 18

3.4 Transportation ............................................................................................................. 18

3.4.1 Air traffic ............................................................................................................... 18

3.4.2 Shipping traffic ...................................................................................................... 19

3.4.3 Railway traffic and public transportation ............................................................. 19

3.4.4 Road traffic ............................................................................................................ 20

3.5 Project site ................................................................................................................... 20

3.5.1 Location and expanse ........................................................................................... 20

3.5.2 Visibility ................................................................................................................. 20

3.6 Existing & future supply of competitive facilities ........................................................ 22

3.6.1 Bad Gögging .......................................................................................................... 23

3.6.2 Bad Abbach ........................................................................................................... 26

3.6.3 Kelheim ................................................................................................................. 26

3.7 Assessment .................................................................................................................. 28

4 Hotel Project ....................................................................................................................... 30

P a g e | 4

4. 1 Idea and concept ......................................................................................................... 30

4.2 Space & function .......................................................................................................... 33

4.2.1 Spa & Wellness ...................................................................................................... 33

4.2.2 Conference Center ................................................................................................ 34

5 Financial Analysis ........................................................................................................... 34

5.1 Average Room Rate (ARR) ........................................................................................ 35

5.2 F&B revenue per room............................................................................................. 35

5.3 SPA revenue per room ............................................................................................. 35

5.4 Revenue details ........................................................................................................ 36

5.5 Staff planning ........................................................................................................... 38

5.6 Operating P&L statement ........................................................................................ 39

5.7 Investment structure ............................................................................................... 42

6 Outcome ............................................................................................................................. 42

Bibliography ........................................................................................................................... 44

Appendix ................................................................................................................................ 46

Interview ............................................................................................................................ 46

P a g e | 5

List of charts # Title Page

Chart 1 Location within German 8

Chart 2 Location micro 9

Chart 3 Property as seen from street I 9

Chart 4 Property as seen from street II 10

Chart 5 Prospect of Eastern boundary 10

Chart 6 Prospect of Western boundary 11

Chart 7 Farm remains 11

Chart 8 Nature park Altmühl Valley and the district of Kelheim 12

Chart 9 Map nature park Altmühl Valley 12

Chart 10 Impressions Altmühl Valley 12

Chart 11 Overnights nature park Altmühl Valley 2011 13

Chart 12 Overnights district Kelheim 2011 14

Chart 13 Journey times from project site 14

Chart 14 Land development plan 16

Chart 15 Areal of competitors 17

Chart 16 Accommodation overview nature park Altmühl Valley 17

Chart 17 Accommodation nature park Altmühl Valley 2012 22

Chart 18 Bed division nature park Altmühl Valley 2012 22

Chart 19 Hotel Monarch 23

Chart 20 Hotel Marc Aurel 23

Chart 21 Hotel Eisvogel 24

Chart 22 Hotel Gut Deutenhof 25

P a g e | 6

Chart 23 Hotel Wittelsbacher Hof 26

Chart 24 Location of competitors 27

Chart 25 List of competitors 27

Chart 26 SWOT Analysis Kapfelberg 28

Chart 27 Suitability hotel type 29

Chart 28 Suitability guest segment 31

Chart 29 Overview golf courses 33

P a g e | 7

List of abbreviations Measures

h Hour(s)

km Kilometer(s)

m Meter(s)

mio Million

sqm Square meter(s)

Symbols/signs

€ Euro

+ More than

Others

BF Breakfast

DR Double room

MICE Meetings incentives conferences events

MOF Multiple occupancy factor

NA Not available

p.P. Per person

TA Tourist association

Tab Table

P a g e | 8

Classification The following classification description has been adopted from PKF hotelexperts:

“The classification of hotels in this study is based on the internal hotel classification of PKF

hotelexperts which is orientated towards the strict international parameters for the

classification of hotels (maximum of five stars). Hotels in Germany are classified according

to the Deutsche Hotelklassifizierung, which is a nationwide standardized classification

system administered by the Deutsche Hotel- und Gaststättenverband (DEHOGA; German

Hotel and Restaurant Association). The classification system was introduced in 1996 and

largely reflects on objective criteria such as room equipment and range of services offered.

According to information provided by the association, subjective impressions are generally

not accounted for. The classification is only carried out upon application and awards one to

five stars. Furthermore, the appendix superior is awarded to hotels which achieved

extraordinarily good results within their respective category (e.g. four star superior).

Overall, the German classification system applies less strict criteria than the internal

classification of PKF hotelexperts.

***** Outstanding standard; extraordinarily good service, extraordinarily large (average

of 42 sqm, minimum of 36 sqm) and luxuriously equipped rooms; excellent f&b

facilities; extensive sports, leisure and spa facilities

Typical brands: Four Seasons, Mandarin Oriental, Ritz-Carlton

**** Very high standard; very good service; large (average of 34 sqm, minimum of 30

sqm) and very comfortably equipped rooms; excellent f&b facilities; extensive

sports, leisure and spa facilities

Typical brands: Hilton, Marriott, Sheraton

*** High standard; good service; spacious (average of 26 sqm, minimum of 24 sqm) and

comfortably equipped rooms; good f&b facilities; sports, leisure and spa facilities,

which are adequate to the type and the site of the hotel

Typical brands: Courtyard by Marriott, Four Points by Sheraton, Novotel

** Simple standard; limited service; relatively small (minimum of 18 sqm) and simple

rooms; no or only simple f&b facilities; no or only simple sports, leisure and spa

facilities

P a g e | 9

Typical brands: Campanile, Express by Holiday Inn, Ibis

* Very simple standard; no or very limited service; very small (minimum of 12 sqm)

and very simply equipped rooms; no f&b facilities; no sports, leisure and spa

facilities

Typical brands: B&B, Etap, Formule 1; Première Classe”

(PKF, 2008)

P a g e | 10

1 Project Introduction

1.1 Project Core of this project is a property situated in the heart of Bavaria within the borders of

Germany’s second largest nature park – the nature park Altmühl Valley. The aim is to create

a feasibility study for the site and to develop a first frame for a suiting hotel concept on its

outcomes. The deliverables of this research are generated for the investor search.

As mentioned, the estate is located at the outlines of the Bavarian nature park Altmühl

Valley. So far it has not been developed; beside the rotten remains of a former farm there

is nothing but field and trees.

The following elements should be framed:

• Upscale hotel with 80-120 rooms

• Spa & wellness area

• Multifunctional meeting and banquet rooms

• Restaurant and bar

Furthermore parking and back-of-house facilities are included into the concept.

1.2 Assignment The target of this paper is to develop a feasibility study and a suiting hotel concept for the

above building ground in the frame of my Bachelor’s thesis. Later use of this paper for an

investor’s search is reserved.

The assignment’s research aims can be divided as follows:

• Location Analysis

• Market Analysis

• Product Development

• Financial Analysis

• Outcome

All work has been done within February to May 2014. Distances and driving minutes have

been measured with google maps or are result of personnel knowledge.

P a g e | 11

2 Location

2.1 Kapfelberg

2.1.1 Location – macro

Kapfelberg is a picturesque village located in the south of Germany, right in the heart of

Bavaria. The state is surrounded by Baden-Wuerttemberg in the west; Hesse, Thuringia and

Saxony in the North plus Czech Republic and Austria in the East and South. Kapfelberg

belongs to the administrative district of Kelheim with its same named county seat. Bavaria’s

three biggest cities all can be found in a radius of less than 130 km. From Kapfelberg it’s

about 100 km to the Czech border – if you drive via Cham – and about 150 km to Austria if

you enter the country via the highway A3 at Suben. The motorway interchange Regensburg

(A3, A93, E56) can be reached in about 15 minutes.

Chart 1 Location within Germany

P a g e | 12

2.1.2 Location – micro

From the project site it’s a two minutes’ drive to the heart of the village with its magnificent

church and its petite castle. The distance between the district town Kelheim and Kapfelberg

is about 11 km. The property in Kapfelberg is in very close neighborhood to a village called

Poikam – less than 2 km ‒ where the local train station is situated. Furthermore it is only 7

km to the municipality of Bad Abbach, a popular spa town. The next bigger city – the

UNESCO World Heritage Site Regensburg with its various historical attractions ‒ can be

found in a distance of less than 22 km.

Chart 2 Location micro

The estate is situated directly next to the Danube – only separated through a small quay.

The backside is embedded by two rocky hills – one on the left, one on the right – and a

number of cultivated fields. Only about 9000 sqm of the 19.141 sqm big property are

building ground. There are no residential buildings in direct neighborhood; instead there is

a popular camp site to both sides. Kapfelberg’s marina can be found across the street. In

addition Kapfelberg is positioned at the east end of the Altmühl valley – a 2962 km² big

nature park (nationale -naturlandschaften.de).

P a g e | 13

Chart 3 Property as seen from street I

Chart 4 Property as seen from street II

P a g e | 14

Chart 5 Prospect of eastern boundary

Chart 6 Prospect of western boundary

P a g e | 15

Chart 7 Farm remains

2.2 Nature Park Altmühl Valley The Altmühl Valley can be found in the very heart of Bavaria in between Nurnberg /Munich

and Regensburg / Heilbronn. The 2.962 km² big areal is the second largest nature park of

Germany and allures its visitors with its pictorial lime rocks, Roman relicts, multitudinous

castles and a stunning variety of hiking and cycling tracks. Kapfelberg is situated on its very

eastern frontier.

Chart 8 Nature park

Altmühl Valley (grey) and

the district of Kelheim

(yellow); (Geschäftsbericht,

2012)

P a g e | 16

Chart 9 Map nature park Altmühl Valley (Geschäftsbericht, 2012)

Highlights of the nature park Altmühl Valley:

• Hiking route Altmühltal - Panoramaweg Picturesque hiking track along 200 km of the Altmühl river.

• The liberation hall

A stunning monument that reminds its visitors of the glorious victory over

Napoleon.

• Nature Reserve Weltenburger Enge/ Donaudurchbruch

Over 200.000 years ago a secondary channel of the Danube fought its way through

the million years old rock beds of the Jura limestone creating an impressive natural

spectacle.

• The monastery of Weltenburg

Oldest monastery of Bavaria and oldest cloistral brewery worldwide

Chart 10 Impressions Altmühl Valley

P a g e | 17

3 Market

3.1 General economic data The following information can be found more detailed on www.landkreis-kelheim.de.

Kelheim has a strong position in the retail industry compared to its surroundings. About 172

shops add up to a total shopping area of 53.365 m². With a centrality ranking of 180 it

manages to bring external purchasing power into the city way above average. As well as it is

an important service and production site for a very diverse branch of businesses. Among

local supply, businesses with international importance are located in Kelheim, such as PCO

AG – a producer of camera systems – and Kelheim Fibres GmbH – a producer of viscose

fibers. About 400 out of 1000 inhabitants of Kelheim are employed in Kelheim, creating a

remarkable job centrality. Furthermore big industrial locations such as Munich, Regensburg

and Ingolstadt are in very close distance with renowned globally acting companies such as

BMW and Audi. Many employees commute to these locations. The county of Kelheim has

an unemployment rate under Bavarian average, 2013 2,9 % of Kelheim’s working

population was registered as unemployed. Additionally Kelheim profits of its well-

developed infrastructure, its proximity to highways and airports and its direct connection to

the Rhine-Main-Danube Canal. Kelheim offers an upper vocational school and a technical

secondary school next to a grammar school. Regensburg offers an even wider range of

educational institutions, such as two universities; so does Ingolstadt.

3.2 Culture and tourism The county of Kelheim is a culturally valuable region. It is not only known for its Roman

relicts, the oldest cloistral brewery of the world or the liberty hall, but also for its scenic

beauty. The Danube, prospering juniper fields and white Jurassic rocks offer a place full of

peace and harmony for everyone seeking touch with the nature – no matter if bicyclist,

hiker or watersport fan. That’s the two sites of Kelheim: It is not only“[…] part of the

tourism association Eastern Bavaria […] [but also] it is part of the nature park Altmühl

Valley”, so it “[…] profit[s] of two brands” (Wieben, 2014). In 2011 the nature park Altmühl

Valley recorded 2,2 mio overnight stays and 6,3 mio day trip tourists. 1,12 mio commercial

overnights aroused a gross revenue of 114.8 mio €.

P a g e | 18

Structure Absolut Ø Expense per day Gross revenue

Overnights

Commercial 1,12 mn 102,20 € 114,8 mn €

Private 0,73 mn 74,90 € 54,7 mn €

Camping (touristic

and permanent)

0,38 mn 36,10 € 13,8 mn €

Day trip tourism 6,3 mn 21,40 € 134,8 mn €

Days of Stay 8,53 mn Revenue: 318,1 mn €

Chart 11 Overnights nature park Altmühl Valley 2011 (Geschäftsbericht Almtühltal, 2012)

A glance at the overnight numbers of the district of Kelheim shows that there mainly is

domestic tourism – more than 90%.

District Overnights Change

compared

to last

year (%)

Arrivals Change

compared

to last

year (%)

Duration

of stay

(days)

Overnights

of

foreigners

(%)

Kelheim 730.541 4,0 223.462 1,4 3,3 6,1

Chart 12 Overnights district Kelheim 2011 (Geschäftsbericht Almtühltal, 2012)

3.3 Population and demographic growth Bavaria has about 12.549.150 inhabitants. Its five biggest cities – all with a population of

more than 125.000 people- can be reached in less than 130 km; the fourth biggest city –

Regensburg - is even situated in only 30 km distance. Until 2030 the Bavarian population is

going to decrease to 12, 53 million, but the main two surrounding administrative districts

Upper Bavaria and Lower Bavaria are states with an overall stagnating respectively

increasing population. The county of Kelheim has about 113.996 inhabitants; the city itself

counts around 15.560 people.

All data according to Genesis Online Datenbank, 2014.

3.4 Transportation

3.4.1 Air traffic

Kelheim has a good position between two big airports: Munich Airport can be reached in

less than an hour car ride or alternatively in one and a half hours by train from Regensburg

P a g e | 19

main station. The airport is ranked number two of Germany when it comes to passenger

volume and number seven in whole of Europe (Munich airport, n.d.). In 2013 Munich

airport served 19 destinations within Germany. Another international airport that can be

reached within a bit more than an hour is Nurnberg airport. Over 40 destinations within

Germany and Europe can be reached nonstop from here (Airport Nuernberg, n.d.).

Furthermore it is only a three hours’ drive to world’s eleventh largest airport – Frankfurt

airport - which can alternatively also be reached by a nonstop train connection from

Regensburg main station within three and a half hours. Frankfurt airport offers flights to

295 destinations worldwide during its summer flight plan (Fraport, 24.03.2014).

Airport Journey time car Journey time train

Munich <1 h 1,5 h

Nurnberg >1 h 1,5 h

Frankfurt 3 h 3,5 h

Chart 13 Journey times from project site

3.4.2 Shipping traffic

A small marina is located vis-à-vis the property. Prices for anchorages depend on the boat

size and vary from 9,00 - 24,50 € (Yachthafen Donautal, 2014). The port suits ideally for

boats with less than a two meter draft. A slightly bigger marina is located in Saal – about

seven kilometers away. It offers anchorages for boats up to 30 m length and charges

overnight prices from 10,00 to more than 25,00 €. Here guests also have the opportunity to

rent a console boat for 200,00 € per day (excluding required refueling). Additionally a fleet

of seven passenger boats is awaiting the guests in Kelheim. Excursions along the Danube as

well as the Altmühl are available.

3.4.3 Railway traffic and public transportation

A small railway station is located in less than 2 km distance in Poikam. Regional trains stop

here and there is a frequented connection to Regensburg main station. Regensburg offers a

good range of connections with direct links to Munich, Nurnberg, Hamburg, Dusseldorf and

more (Regensburg Hauptbahnhof, March 2014). For further information visit www.bahn.de.

A bus station can be found only a few meters next to the property. However it is served

infrequently by only one bus line that goes to Kelheim (VLK, n.d.).

P a g e | 20

3.4.4 Road traffic

The property is directly connected to the quayside. It takes only a few minutes to reach the

federal highway B16 that links Kapfelberg with cities like Regensburg and Ingolstadt. In less

than 20 minutes the motorway junction Regensburg (A3 & A93) can be reached. As it is an

extremely frequented interchange the A3 is supposed to be expanded from four to six lanes

(construction start not before 2015). The A3 proceeds from the Dutch border to the

Austrian boarder connecting cities such as Dusseldorf, Cologne, Regensburg and Passau.

3.5 Project site

3.5.1 Location and expanse

The property is located at the eastern border of Kapfelberg. The Danube flows less than 10

m beneath the estate. On the left side are located Kapfelberg’s marina, a snack bar and a

small camping ground, on the other side is also a camping ground. The backside is

surrounded by two hills and fields.

In total the property covers an area of 19.141 sqm, but only about 9.000 sqm are declared

as building ground (Chart 14).

3.5.2 Visibility

The building will be well-visible from all sites; a frequented quay road runs along the

property line. Furthermore passing ships on the Danube have good prospect of the hotel.

Chart 14 Land development plan (see next page)

P a g e | 21

P a g e | 22

3.6 Existing & future supply of competitive facilities

Chart 15 Areal of competitors (radius = 30km)

In 2012 the nature park Altmühl Valley offered in total 1.206 accommodation possibilities,

29 % were hotels and guesthouses (Geschäftsbericht Naturpark Altühltal, 2012). This sector

held 75 % of beds sold. Direct competition to this project arises from hotels in Kelheim, Bad

Abbach and Bad Gögging – which creates a radius of 30 km around the property. Bad

Abbach and Bad Gögging attract their visitors with a range of thermal springs and health

treatments, whereas Kelheim is popular for bicyclists and hikers. Hotels located in the city

of Regensburg were not taken into account, although it would be within the considered

radius. It is assumed that our provincial wellness and conference hotel does not stand in

direct competition with city hotels.

Type of accommodation Number of businesses Number of beds

Hotels/Guesthouses 349 12.592

Boarding Houses 141 742

Holiday Flats 716 3.580

Total 1.206 16.916

Chart 16 Accommodation overview nature park Altmühl Valley (Geschäftsbericht, 2012)

P a g e | 23

Chart 17 Accomodation types nature park Altmühl Valley 2012 (Geschäftsbericht, 2012)

Chart 18 Bed division nature park Altmühl Valley 2012 (Geschäftsbericht, 2012)

3.6.1 Bad Gögging

Bad Gögging offers a popular thermal spa with a sulfur spring, thermal water and a moor. It

is one out of two bathing resort within the examined area. A wide range of wellness & spa

treatments is provided by a number of suppliers; furthermore Bad Gögging is a renowned

health centre for a great variety of cures. This site has a long tradition in the sector of

health & spa, relicts of Roman baths can still be visited around the area. Besides that four

hotels also specialized on MICE, two of those being four star superior houses. This range

gets supported by the Bad Gögging Kurhaus that provides its customers with five size

varying rooms. The distance between Kapfelberg and Bad Gögging is about 26 km.

The Monarch Hotel****S & Convention Centre

The Monarch offers twelve different meeting rooms covering an area of 2.500 m², what

makes it to the biggest convention hotel of Lower Bavaria. Its capacity manages

conventions up to 540 participants and basic technical equipment is included into the

convention room fees. Besides that it offers a well-equipped wellness & SPA centre with

remarkably low prices. The cheapest full body massage starts at 49€ for 40 minutes. Only

one hops treatment can be found among their brochure.

Accomodation 2012

Hotels/Guest- houses

BoardingHouses

Holiday Flats

Bed Division 2012

Hotels/Guest- houses

BoardingHouses

Holiday Flats

P a g e | 24

Chart 19 Hotel Monarch (busreisen24.com, n.d.)

Facts:

• Year of construction 1997

• Category ****S

• Number of rooms 310

• Conference area 2.500 sqm

• Wellness area 300+ sqm

• Distance to project site 29 km

Marc Aurel Spa & Golf Resort****S

14 conference rooms and a 2.800m² big wellness area belong to the hotel. Highlights

among its treatments are the Ayurveda massages and its spa suite. Furthermore the hotel

tries to conceptualize a Roman theme in all its facilities including three restaurants. On top

of that Marc Aurel tries to attract guest with its house own 9-hole golf course, squash

rooms and a high ropes course.

Chart 20 Hotel Marc Aurel (1golf.eu,n.d.)

P a g e | 25

Facts:

• Year of construction 1996

• Category ****S

• Number of rooms 165

• Conference area 800+ sqm

• Wellness area 2.800 sqm

• Distance to project site 28 km

Hotel & Gasthof Eisvogel****

The hotel’s conference facilities are limited. By combining two rooms the maximum

number of 30 participants can be hosted. On the other hand the hotel impresses with a

newly renovated spa & wellness area. Swimming pool, 15 treatment rooms and two private

suites can be found on 1.600 sqm. The family run hotel has one very special feature: It

specialized on hops treatments and even registered its own brand – HopfenWell

(Mittelbayerische, 26.03.2014)

Chart 21 Hotel Eisvogel (Gasthof Eisvogel, n.d.)

Facts:

• Year of construction 1989

• Category ****

• Number of rooms 58

• Conference area 100+ sqm

• Wellness area 1.600 sqm

• Distance to project site 26 km

P a g e | 26

3.6.2 Bad Abbach

The Bavarian health resort Bad Abbach is situated only eight kilometers next to Kapfelberg.

The biggest advantage of the location is the renowned Asklepios clinical centre which is

specialized on orthopedics and rheumatology. Additional Bad Abbach has a popular sulfur-

moor bath called Kaiser Therme.

Gut Deutenhof***

There are no hotels worth

considering competition wise in Bad

Abbach, however in its county can

be found a three star superior golf

hotel. With its 13 rooms Gut

Deutenhof is rather small, but it is

perfectly situated at the property of

a popular 27-hole golf course.

Chart 22 Hotel Gut Deutenhof (Hotel.de, n.d.)

In addition, conventions up to 120 participants can be held, after all the technical standards

are limited.

Facts:

• Year of construction 1997

• Category ***

• Number of rooms 13

• Conference area 100+ sqm

• Wellness area -

• Distance to project site 26 km

3.6.3 Kelheim

Kelheim is the next town, just in 8 km distance. As the head of the tourism department –

Barbara Wieben – states: “There is no wellness tourism in Kelheim” (Wieben 2014). Besides

the following hotel there is no supplier with wellness facilities – or remarkable conference

equipment in Kelheim.

P a g e | 27

Carathotel Wittelsbacher Hof Kelheim****

The newly renovated hotel offers a

combined fitness and wellness facility,

but there is no pool. Massages can be

arranged with an external service

provider in-house. Moreover MICE are

attracted by the hotel’s possibility to

host up to 550 guests in its biggest hall

Ludwigssaal and up-to-date technical

equipment.

Chart 23 Hotel Wittelsbacher Hof (Carathotel Kelheim, n.d.)

In total four conference rooms are offered. A special advantage is that the Ludwigssaal is

accessible for cars, making car presentations possible. As the production sites of

internationally known car companies such as Audi and BMW can be found in the

surrounding area, this feature is of great advantage. “The Wittelsbacher Hof possesses

technical equipment that is absolutely unique around this area, even in Regensburg you

can’t find something comparable” (Wieben, 2014).

Facts:

• Year of construction 2010

• Category ****

• Number of rooms 84

• Conference area 700+ sqm

• Wellness area 200+ sqm

• Distance to project site 26 km

P a g e | 28

Chart 24 Location of Competitors

Hotel Category

Rooms

Single Double Suites Total

Price DR

(€; incl. BF)

The Monarch Hotel &

Convention Centre ****S 163 133 11 310 119,00

Marc Aurel Spa & Golf

Resort ****S 13 136 16 165 160,00

Hotel & Gasthof Eisvogel **** 7 45 6 58

119,00

Gut Deutenhof *** 1 10 2 13 85,00

Carathotel Wittelsbacher

Hof Kelheim **** 8 73 3 84

119,00

Total ∑ 192 399 36 627

Ø 38 80 7 125 120,40

Chart 25 List of competitors (prices according to 05/05/14)

3.7 Assessment The results of the evaluation of the micro site can be summarized as follows:

P a g e | 29

Strengths Weaknesses

• Danube across the street

• Marina in direct neighborhood

• Affinity towards tourism of site

(adjacent camping ground)

• Central location within several

industrial locations

• Proximity to Munich and Nurnberg

airport

• Relatively outlying position

• Car necessity

• Lack of public transportation

• Not recognized as touristic

destination

Opportunities Threats

• Position along popular hiking and

bicycle tracks, e.g. Jurasteig

• Stromtreter project for e-bikes

• Location within nature park

• Various golf courses close-by

• Use of two destination brands

(Nature Park Altmühl Valley & TA

Eastern Bavaria)

• No selfsame competition among

the regional market

• Tourist magnet Regensburg in

proximity

• Flood (about every 10 years Danube

reaches dangerous high-tide)

• Seasonality (Low season from

November to February)

• Weather dependency

Chart 26 SWOT Analysis Kapfelberg

One of the biggest opportunities for this project is definitely that there is no significant

competition within a close radius. Even Wieben, the head of Kelheim’s tourism department,

states that she sees “great potential in the field of conference business” (Wieben, 2014)

and that there is a gap in supplies in the wellness sector. However, demand exists. On the

other hand there is the need to come up with innovative solutions to fight the threats of

weather dependency and seasonality.

The following hotel types are suitable for the estate.

P a g e | 30

Chart 27 Suitability hotel type

4 Hotel Project

4. 1 Idea and concept As previously described the aim of this project is to develop an upscale wellness and

conference hotel for the underlying property. But for this special location that is not

enough: The hotel concept must have a distinct character, so that the hotel is going to be

recognized over the county’s borders. Dipl.-Ing. Barbara Wieben correctly stated among our

interview:

“What we permanently recognize is a new trend: There is an increasing desire for the

countryside; we call it Landlust. People are seeking small, dreamy houses, nativeness,

something original. And that’s where Kelheim is able to score” (2014).

The idea of escapism perfectly suits the property: Embedded by two green hills, with view

to the Danube on the one and to fertile fields on the other site, it is the ideal escape for

anyone looking for originality and unsophistication.

Furthermore it is highly recommended to adopt the concept of organic, regional food. The

area offers a great choice on the supply side covering various products: For instance, the

meat of the Altmühl Valley lamb – a local landscape conservation project in the Altmühl

Valley.

P a g e | 31

Moreover the connection to the world’s largest hops region should also be reflected in the

hotels concept. It’s the base of two ideas:

• Creating a hops & beer themed wellness area

• Offering a “show brewery” in the restaurant

Positioning By implementing the above ideas clear distinction to the surrounding competitors is

achieved. A concept that combines nature, regional products, wellness and convention

does not exist in a radius of at least 30 km. The hotel will be a clearly outstanding highlight

in the region.

Due to the quality and monopolistic position of the concept a category lower than midscale

can’t be recommended.

I perceive the following guest segment as crucial for the planned hotel:

• Seminar and conference guests

A business center with totally up-to-date equipment and variable room sizes

through movable walls is awaiting its guests. The surrounding car manufacturers

are targeted with a special car entrance to one of the conference rooms.

• Guests of incentives

The hotel suits perfectly the needs of smaller incentives. On the one side wellness

and conference facilities are covered on the other side guests can choose from a

grand variety of outdoor activities, such as rafting tours on the Danube or a bicycle

tour to some of Bavaria’s most magnificent beer gardens.

• Individual tourists

This group is supposed to be especially attracted by the idea of escapism. Nature

experience, sport activities and a well-equipped SPA offer a great time-out.

• Tourist groups

Though aiming at the four star classification, group travels – especially couch

parties ‒ are attractive for the hotel, particularly off-season. The hotel is perfectly

located as a vantage point to discover the attractions of the Altmühl Valley situated

in the West, as well to explore the UNESCO world heritage site Regensburg and its

surroundings in the East. Bus parking lots will be provided.

• Weddings

The hotel is an ideal place for all couples who are looking for a magnificent wedding

location surrounded by a gorgeous landscape. Various in-house facilities sum up to

a multifunctional wedding location.

P a g e | 32

Chart 28 Suitability guest segment

Golf

Golf tourists are going to be a crucial part of the hotel’s guest segment as the area is known

for its quantity of magnificent golf courses. In a radius of only 55km are situated six 18-hole

courses.

• Golf-Club Bad Abbach – Deutenhof

Distance: 8 km

• Gut Minoritenhof Golf & Countryclub

Distance: 15 km

• Golfclub Thiergarten

Distance: 36 km

• Golf-Club Straubing

Distance: 52 km

• Golfclub Schmidmühlen

Distance: 55 km

• Altmühlgolf Beilngries

Distance: 51 km

In a later stage of planning it is seeked to negotiate special greenfee rates for our guests.

Special treatments for golfers, such as pre-golf massages are going to be available in the

SPA. Additional a storage room for golf euipment will be available.

P a g e | 33

Chart 29 Overview golf courses

4.2 Space & function At this stage of planning the following functions are advised to be integrated into the hotel:

4.2.1 Spa & Wellness

Because of facing quite large spa facilities of the compeititors in Bad Gögging – up to 2.800

sqm – the wellness area needs to be at least 1000 sqm. To differentiate the SPA focuses on

products with ingredients typical for the region: Hops, juniper, herbals and more. Nature

experience and originality are in focus. By offering natural finish treatments, special

segments such as pregnant women shall be attracted. A stay in the hotel is going to be

perfect to prepare for birth and catch some relaxation before the busy time starts. In

general eight treatment rooms and three private spa suites are awaiting the guests.

Highlight is Germany’s very first beer pool filled with clear spring water and house brewed

beer. The beer pool does not only offer our guests an unforgettable experience, but is also

meant to gain supraregional attention.

Design parameters:

• Exclusive beer pool 200 sqm

P a g e | 34

• Heated in-/outdoor pool 100 sqm

• 8 treatment rooms á 15 sqm

• 3 Private Spa Suites á 40 sqm

• Sauna (Finnish, Bio) á 20 sqm

• Steambath 20 sqm

• Lounge area 300 sqm

• Relaxation Room 100 sqm

• Fitness Room 80 sqm

• Sun deck 100 sqm

• Library 42 sqm

• Changing areas & bathrooms á 20 sqm

• Reception &waiting area 40 sqm

4.2.2 Conference Center

The hotel’s second specialization lies in the MICE business. Eleven meeting rooms, partly

with possibility to combine two rooms and spacious ballrooms cover not only the field of

business conventions, but also offer great facilities for private events, such as weddings. In

respect of the surrounding car manufacturers the auditorium maximum is car accessible –

making indoor car presentations possible. The conference center elates with a size of 2.500

sqm.

• Seminar I & II (auditorium maximum) á 480 sqm

• Seminar III ‒ V á 190 sqm

• Seminar VI 370 sqm

• Seminar VII ‒ XI 50 sqm

An underground garage with about 80 parking lots will be available.

5 Financial Analysis The following pages contain the preliminary financial analysis. The forecasts were generated on the base of a 120 rooms wellness and conference hotel.

It is foreseen to outsource housekeeping and laundry.

P a g e | 35

5.1 Average Room Rate (ARR)

An average room rate of above 112,00 € can be expected for the first years.

5.2 F&B revenue per room

For occupancy rates of 60 %, 65 % and 70 % the expected f&b revenues per room are

shown above.

5.3 SPA revenue per room

For occupancy rates of 60 %, 65 % and 70 % the expected spa revenues per room are shown

above.

P a g e | 36

5.4 Revenue details

For the first year a revenue per available room (RevPar) of 67,00 € can be expected. In the

second year the RevPar is going to rise to 73,00 €.

P a g e | 37

P a g e | 38

5.5 Staff planning

P a g e | 39

5.6 Operating P&L statement

From the first year on the hotel is going to be in the black. Condition for that is that the

hotel manages to achieve a 60 % occupancy with an ARR of 112,00 €.

P a g e | 40

P a g e | 41

P a g e | 42

5.7 Investment structure

At this point net total project costs of at least 15.000.000,00 € can be anticipated as

investment sum.

6 Outcome The outcome of this study can be summarized as follows: The regional hotel market -radius

of 30 km around the project site- is not saturated, especially in the field of conference and

wellness tourism lays great potential as there is a very limited number of hotels with

correspondent facilities. However, investors still bear a certain risk when realizing this

project: The tourism regions nature park Altmühl Valley and peculiarly Eastern Bavaria lack

recognition on a national and most notably international level. Differentiation therefore is

inevitable. With Germany’s only and world’s second beer pool has been found a great

solution. Nationwide media recognition can be taken for granted then implementing this

innovative idea. Furthermore the spacious, top modern meeting facilities are going to help

encounter the threats of seasonality. The form of operation – management, lease or

P a g e | 43

similar- has to be clarified within further research. A net investment sum of almost 16 mio €

has to be raised in order to realize the project.

P a g e | 44

Bibliography Bildergalerie n.d.. Carathotel Wittelsbacher Hof Kelheim., retrieved from

http://www.carat-hotel-kelheim.de/bilder. On April 15, 2014php

Cohen, M.; Bodeker, G. 2008. Understanding the global spa industry – Spa Management.,

Burlington: Elsevier Butterworth-Heinemann

D’Angelo, J. M. 2006. Spa business strategies – A plan for success. USA: Thomson Delmar

Learning

Eisvogel entdeckt das grüne Gold 26.03.2014. Mittelbayerische., retrieved from

http://www.mittelbayerische.de/region/kelheim/artikel/eisvogel-entdeckt-das-

gruene-gold/1038294/eisvogel-entdeckt-das-gruene-gold.html on April 15, 2014

Fahrpläne ab 15.12.2013 n.d.. Vlk, retrieved from

http://www.landkreis-

kelheim.de/LandratsamtundBuergerservice/Geschaeftsverteilung.aspx?view=~/kxp

/orgdata/default&orgid=56a64580-8aca-4c8a-b2bd-7b7bf99991f7 on April 15, 2014

Gasthof Eisvogel, n.d.. Hotel und Gasthof Eisvogel., retrieved from

http://www.gasthof-eisvogel.de/inhalt.asp?id_menu=6&id=22 on April 15.,2014

Genesis Online Datenbank. Bayerisches Landesamt für Statistik und

Datenverarbeitung , retrieved from

https://www.statistikdaten.bayern.de/genesis/online?sequenz=tabelleErgebnis&se

lectionname=45511-001z on March 23., 2014

Geschäftsbericht Naturpark Altmühltal 2012. Naturpark Altmühltal. Received from

Informationszentrum Naturpark Altmühltal

Hotel Monarch, Bad Gögging n.d.. Busreisen24.com., retrieved from

http://www.busreisen24.com/destinationen/getDetail?detail=280?detail=280&cat

egory=5&country=54&view=detail on April 15.,2014

Illing, K.-T. 2009. Gesundheitstourismus und Spa-Management. München: Oldenbourg

Wissenschaftsverlag GmbH

Landgasthof Gut Deutenhof n.d.. hotel.de., retrieved from

http://www.hotel.de/de/landgasthof-gut-deutenhof/hotel-51953 on April 15.,2014

Lawson, F. 2009. Hotels & Resorts – Planning, Design and Refurbishment. Oxford: Elsevier

Architectural Press

Liegeplatzgebühren 2014. Yachthafen Donautal., retrieved from

P a g e | 45

http://yachthafen-donautal.de/liegeplatzgebueren.htm on April 12., 2014

Marc Aurel Spa & Golf Resort n.d.. 1golf.eu., retrieved from

http://www.1golf.eu/club/marc-aurel-spa-golf-resort/ on April 15.,2014

Nationale Naturlandschaften n.d.. Naturpark Altmühltal., retrieved from

http://www.nationale-naturlandschaften.com/naturpark-altmuehltal/1 on

February 12., 2014

Pkf hotelexperts 2008. Short feasibility study Dresden., retrieved from

http://intranet.modul.ac.at/moodle/course/view.php?id=1141 on April 02., 2014

Ransley, J.; Ingram, H. 2004. Developing Hospitality Properties & Facilities. 2nd Ed., Oxford:

Elsevier Butterworth-Heinemann

Regensburg Hauptbahnhof March 2014. Wikipedia., retrieved from

http://de.wikipedia.org/wiki/Regensburg_Hauptbahnhof on February 12., 2014

Sommerflugplan 24.03.2014. Fraport Pressemitteilungen., retrieved from

http://www.fraport.de/de/presse/newsroom/pressemitteilungen/sommerflugplan-

-frankfurt-freut-sich-auf-neue-fluggesellschaften.html on February 12., 2014

Von Freyberg, B. 2014. Hospitality Development – Hotelprojekte erfolgreich planen und

umsetzen. 2nd Ed., Berlin: Erich Schmidt Verlag GmbH & Co. KG

Wieben, Barbara. Interview by Anna-Lena Listl. The destination of Kelheim, Kelheim:

March 28., 2014

Wirtschaft und Regionalentwicklung n.d.. Landkreis Kelheim., retrieved from

http://www.landkreis-

kelheim.de/WirtschaftundRegionalentwicklung/DerWirtschaftsraumLandkreisKelhe

im.aspx on March 15., 2014

Zahlen, Daten, Perspektiven n.d.. Munich Airport., retrieved from

http://www.munich-airport.de/de/company/facts/index.jsp on April 12., 2014

Zahlen und Fakten n.d.. Airport Nuernberg., retrieved from

https://www.airport-nuernberg.de/facts on April 12., 2014

P a g e | 46

Appendix

Interview The destination of Kelheim

Interviewee: Dipl.-Geogr. Barbara Wieben

Department head tourism, economy, marketing and culture at the municipality of Kelheim

Conducted by Anna-Lena Listl

Kelheim, 28th March 2014

Wherein do you see the biggest strengths of the destination Kelheim?

Definitely in the location. On the one site the region itself is already a plus, furthermore the

surrounding nature adds up.

Kelheim is part of the tourism association Eastern Bavaria as well as it is part of the nature

park Altmühl Valley. It’s not a daily situation to be part of two associations at once. But this

should be valued absolutely as positive, since remarkable synergetic effects revolve out of

this situation. In a way we technically profit of two brands: The brand of the tourism

association Eastern Bavaria, that is already quite well established, and the brand of the

nature park Altmühl Valley, that still has to undergo further development.

What kind of role does the UNESCO world heritage site Regensburg that is situated just

around the corner? Do you perceive it as a competitor?

The proximity to the metropolitan area of Regensburg has to be seen definitely as a chance.

Regensburg does us good, but we also do Regensburg good. Lots of Regensburg’s tourists

come to Kelheim as day tourists. Unfortunately not much is reflected in our number of

overnight stays. Major events can be seen as exceptions: Soon the German Katholikentag is

going to take place with Regensburg as the host; the city is completely overbooked. We

benefit from that, we are fully booked as well. In this matter Munich also plays a role:

During the Oktoberfest, when whole of Munich is fully booked, quite a lot of visitors book a

room in Kelheim.

Do people actually relate Kelheim to the Altmühl Valley or do they just come because of

the city itself?

It gets definitely connected to the Altmühl Valley, at least of the majority of visitors.

Negatively spoken we are the end of the nature park; however we prefer to say: We are the

P a g e | 47

gate to the nature park Altmühl Valley. The hiking trails do play a quite major role for

Kelheim, such as the panorama trail Altmühl Valley.

To come back to Kelheim’s strengths at this point: The biggest visitor magnets are the

monastery of Weltenburg – the world’s oldest monastic brewery – and the Liberation Hall.

Furthermore it is important to note that we do have lots of regular customers here in

Kelheim. There are special tributes for remarkably loyal guests. Of course years ago this

procedure has been significantly easier; there have been many guests that spent their

holidays in Kelheim always to the same time over a period of five, ten or even twenty years.

Nowadays the booking behavior has changed: People book more spontaneously and seek

to explore various different places. But we still get notifications of our hosts if there are

longtime repeat guests and then we do certainly come and pay homage to these guests.

Generally spoken, Kelheim has a large amount of day trip tourists; indeed over 600.000 day

trip tourists came to Kelheim during the past year. Day trip tourism is definitely an

important economic factor for us.

Long stay guests often are mechanics that are temporary needed at the surrounding

industrial sites.

We do not have influence on the duration of stay of our visitors. We accept that Kelheim is

not a traveler’s first holiday destination, but rather that people come here to spent their

second or third vacation during the year – and then mostly as a short trip. But we are also

satisfied with being a short trip destination with a great variety of sport activities.

Unfortunately Kelheim’s number of tourists is extremely dependent on the weather. We

can definitely say that “nature catastrophes” play a major role. We suffered a lot under last

year’s flood. In fact Kelheim’s banks held up against the water and therefore there were

only minimum impacts, but people had the pictures of Passau and Straubing in their minds

and hence avoided the region extensively.

What we permanently recognize is a new trend: There is an increasing desire for the

countryside; we call it Landlust. People are seeking small, dreamy houses, naturalness,

something original. And that’s where Kelheim is able to score.

How big is the amount of wellness and conference guests in your region? Are there any

requests for that matter?

P a g e | 48

There is no noteworthy wellness tourism in Kelheim. Simply the supply is missing. The hotel

Wittelsbacher Hof is offering a small wellness/ fitness facility, but unfortunately not even

with a pool.

Otherwise we cede the “baths- tourism” to Bad Abbach or Bad Gögging – or at least we are

forced to as we are lacking the supply. But also here exchange works, the regional tourist

associations maintain excellent collaboration.

There is a reason that the tourism association of the county Kelheim promotes the slogan

“diversity that inspires”. We are a diverse region that is what makes us. At the same time

we are happy that the collaboration with each other works so smoothly. We work as a

team.

By the way the hops region Hallertau gets now also further developed and advertised as a

destination. People seek more and more to experience beer culture and of course

indulgence.

Regarding Kelheim as a MICE destination:

The hotel Wittelsbacher Hof possesses technical equipment that is absolutely unique

around this area, even in Regensburg you can’t find something comparable. Other than that

I definitely see great potential in the field of conference business, especially if you equip

yourself with such totally up-to-date instrumentation.

Sustainability plays an increasing role – especially in tourism. Do you have any aims or

projects in the field of sustainability?

Sustainability in means of “looking ahead” definitely is important – we aim to act

sustainable and prospective.

Regarding the protection of the environment: We tend to work intensified with direct

marketers. Guests request more often organic products and particularly regional products.

Regionalism is in great demand. For instance we offer a culinary tour around the fields of an

organic farm with an adjacent tasting of its asparagus at a local inn. Last year we even

organized a press trip under the theme of culinary art and organic food.

What do you offer newly opened hotels? Are there collective marketing channels or

platforms?

P a g e | 49

We offer good collaboration, especially trust-based collaboration. Gastronomes become

part of Kelheim’s free guidebook. Moreover there is the magazine “Altmühltal aktuell” that

appears in an edition of 50.000 pieces once a year. It offers the possibility for a joint

appearance of Kelheim – for free. Additionally hotels have the opportunity to be listed on

the webpages of all three tourist associations: Tourist association Kelheim, tourist

association Eastern Bavaria and Nature Park Altmühl valley.

Our tenor is: None makes a solo attempt. We support each other and appear together.

How does the typical tourist in Kelheim look like? Can you feel the demographic change?

The demographic change is slightly noticeable, yes. We do host less super active mountain

bikers, but rather relaxed and leisurely bicyclists. Mainly we have bicycle tourists that are

primarily 60+.

A huge plus are e-bikes: Nowadays most people have technical affinity – also in a higher

age. For instance we have a great number of visitors that use QR codes to orientate

themselves around sites. With the technical support of e-motors people have again the

opportunity to be active in a way in which they would usually no longer be able to. This

enables us to create things such as the Stromtreter project. Tourism operations offer a

network of compatible e-bike charging stations. Today actually every tourist information

center should have such a station in its disposal.

The golden as well as the silver ager are an interesting target group, because they do also

bring good capital with them.

How is the tourist number in Kelheim going to develop over the next years in your

opinion? Is it going to be stable?

During the past years our visitor numbers have been quite stable, we can expect that this

will last over the next years. Maybe the anniversary year of the liberty hall, that took place

last year, will affect the number positively – that stays exciting to watch. Furthermore we

have an eye on possible effects from Regensburg’s tourism.