hw1hd - Cornell ID # 2140510 Page |1 Introduction The Big...

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C o r n e l l I D # 2 1 4 0 5 1 0 P a g e | 1 Introduction The Big Red Investors are proposing to build a 67-room independent, select-service hotel on West Hill off Route 79 in Ithaca, NY. The site is composed of 159 acres of raw, undeveloped land with breath-taking views of the Cornell campus. The hotel will seek to gain more than its fair share of the leisure and group segments by focusing on all that Ithaca has to offer. By performing calculations of Ithaca’s hotel market in 2009, the proposed hotel is expected to capture about 105% of its fair share of the area’s demand with the following breakdown by segment: 75% of business, 115% of group, and 135% of leisure. Thus, the hotel is hoping to achieve an occupancy percentage of approximately 71% which is right at the Ithaca average of 72%. This report will continue to rationalize how the proposed hotel will achieve these penetration percentages. Site Description The current site for the proposed hotel is located off Route 79 in Ithaca, New York. The site is located on a hill in a very rural, quiet setting. It is relatively flat and looks ready to be developed. It begins to slope as you move east. It is relatively isolated compared to the clusters found in the Commons, at the airport, or near South Hill. Travelers will be able to experience Ithaca’s beauty much easy from a quiet, peaceful hotel. The site has beautiful views of Cornell’s campus especially at night when campus is lit. The plan is to tuck the hotel back from the main road by using a service road to give it a more “nature” feel, although a well-lit sign would need to guide travelers to the hotel. By creating a longer service-drive to the hotel, this then opens doors for more development to take place along this new road and in surrounding areas. Big Red Investors feels this hotel would meet the needs of Ithaca’s leisure travelers as well as create demand for potential businesses around the hotel’s location. Ithaca’s Demand Generators The two largest demand generators in Ithaca are Ithaca College and Cornell University. They generate large amounts of demand for conferences, guest speakers, recruiters, as well as visiting
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C o r n e l l I D # 2 1 4 0 5 1 0 P a g e | 2 sports team. There are also busy weekends throughout the year such as Parents’ Weekend or the long awaited graduation weekend. Ithaca is also home to many secondary demand generators such as its renowned local wineries, unique stores, and of course its “gorges” state parks. These demand generators are more leisure- oriented, and, thus, will be more applicable to the proposed hotel. Ithaca leisure activities such as boating, fishing, hiking, swimming, or wine touring create year-long demand for hotel rooms, but will peak in the summer months. Site Rationale
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hw1hd - Cornell ID # 2140510 Page |1 Introduction The Big...

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