Herculane Resort_Life Resort

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HERCULANE RESORT

LIFE RESORTBUSINESS PLAN PRESENTATION

© 2014 S&B BUSINESS TOUR

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CONTENT• HERCULANE LIVE THE HISTORY!...................................................................................................3• THE LIFE MISSION!...........................................................................................................................4• THE LIVING STRATEGY TO DEVELOP THE LIFE RESORT (HERCULANE RESORT)……….5• WHAT HERCULANE CAN OFFER NOW………………………………………………..6• DYNAMICS OF TOURISM IN HERCULANE……………………………………………...7• DYNAMICS OF CONSTRUCTION AUTHORIZATIONS IN HERCULANE…………………8• DYNAMICS OF ACCOMMODATION FACILITIES IN HERCULANE………………………9• WHY THE TOURISTS COME TO HERCULANE?........................................................................10• HOW MANY DAYS/YEAR IN HERCULANE?.............................................................................11• OUR TARGET!..................................................................................................................................12• SWOT ANALYSIS………………………………………………………………............13• MARKETING STRATEGY………………………………………………………………14• INVESTING IN HERCULANE…………………………………………………………...15• OPERATIONAL…………………………………………………………………….......16FILES ATTACHED : INVESTMENT TIME LINE HERCULANE RESORT; HOTEL FERDINAND 3ST OPERATIONAL BUDGET; HOTEL ROMAN 2ST OPERATIONAL BUDGET; HOTEL HERCULES 2ST-3ST OPERATIONAL BUDGET; HOTEL MINERVA 2ST OPERATIONAL BUDGET; HOTEL CERNA 4ST OPERATIONAL BUDGET; HOTEL DECEBAL + PAVILION 6 5ST OPERATIONAL BUDGET; HOTEL PAVILION 3+4+5 4ST OPERATIONAL BUDGET; HOTEL TRAIAN 4ST OPERATIONAL BUDGET; AQUA PARK HERCULANE OPERATIONAL BUDGET


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HERCULANE LIVE THE HISTORY!

• LOCATED IN THE S-V OF ROMANIA, AT 41 KM FROM DROBETA-TURNU SEVERIN, HERCULANE RESORT IS THE OLDEST ROMANIAN RESORT AND ONE OF THE OLDEST IN THE WORLD.

• THE HERCULANE RESORT WAS STARTED BY THE ROMAN EMPEROR TRAIAN IN 102 AC. THE FIRST DOCUMENTARY NOTE IS DATED IN 153 AC. THE NAME OF THE RESORT COME FROM HERCULES – SON OF ZEUS AND HELEN - . IMPRESSED BY THE HEALING POWER OF THE WATER SPRINGS FOUND HERE THE ROMANS CONSIDERED THOSE AS A GOD’S GIFT AND DEVELOPED A POWERFUL CULT FOR THOSE IN THE NAME OF HERCULES.

• IN THE RECENT HISTORY THE HERCULANE RESORT WAS BUILT DURING THE LIFE OF THE ROMANIAN KING FERDINAND AND WAS DECLARED AS THE ROMANIAN ROYAL RESORT.

• HERCULANE RESORT IS SURROUNDED BY MEHEDINTI MOUNTAINS (IN THE EAST) AND CERNEI MOUNTAINS (IN THE WEST). IT IS 2 HOURS FAR FROM THE TIMISOARA AIRPORT AND 25 KM FAR FROM THE ROMANIAN BORDER WITH SERBIA

• DURING IT’S ALMOST 2000 YEARS, HERCULANE RESORT IS FAVORED DUE TO THE SURROUNDINGS AND THE THERMAL WATER WITH PROVED HEALING CHARACTERISTICS. THE ILLNESSES SUCCESSFULLY TREATED HERE ARE RELATED TO THE LIVER ILLNESS, RHEUMATIC, PERIPHERAL NEUROLOGICAL (PARALYSIS AND PARESIS), DIGESTIVE ILLNESSES AND ASSOCIATE. THE PURE AIR WITHOUT ALLERGENS RICH IN OZONE AND NEGATIVE IONS IS DECISIVE IN TREATING ALSO THE ASTHENIA, CERTAIN ENDOCRINE DISORDERS, RESPIRATORY DISORDERS, WEAKLY, PHYSICAL AND INTELLECTUAL OVEREXERTION, ANEMIA.


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THE LIFE MISSION!

OUR MISSION:

TO COMBINE THE BEST TOURISTIC SERVICES AND THE HEALING NATURAL RESOURCES

FOR OUR CLIENTS


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THE LIVING STRATEGY TO DEVELOP THE LIFE RESORT

(HERCULANE RESORT)• WE VALUE AND USE THE UNLIMITED THERMAL WATER RESOURCE FOR HEALING• WE COMBINE THE HEALING THERMAL WATER WITH THE MODERN AND TRADITIONAL

MEDICAL PRACTICES TO MAKE THE PEOPLE FEEL BETTER AND LIVE LONGER• WE BRING TOGETHER THE ANCIENT HISTORY OF HERCULANE AND THE RECENT ONE

BY RECONSTRUCTION AND TRANSFORM THE OLD ACCOMMODATION CAPACITIES IN MODERN AND LUXURY ONES, IN THE BENEFIT OF THE TOURISTS

• WE DEVELOP LEISURE FACILITIES AND USE THEM TO MAKE OUR CLIENTS HAPPIER• WE ARE USING ALL THE ABOVE TO MAKE OUR CLIENTS TO WISH TO COME BACK


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WHAT HERCULANE CAN OFFER NOW

• NATURAL FACTORS: CLIMATE MOUNTAIN DEPRESSION WITH MEDITERRANEAN INFLUENCES, SEDATIVE-MATTER; INSULATED MINERAL HYPERTHERMIA (38-60 ° C), LOW-LEVEL RADIOACTIVE, HYPOTONIC, WITH DIFFERENT CHEMICAL COMPOSITIONS

• SULFUR, CHLORINE, CALCIUM, SODIUM, • CHLORIDE, SODIUM, CALCIUM

• ACCOMMODATION CAPACITY: 5000 PLACES MOST OF THEM IN OLD HOTELS.• TREATMENT CAPACITY WITH THERMAL WATER: 4000 PLACES – AVAILABLE NOW 800 PLACES • LEISURE ACTIVITIES IN THE RESORT: MOUNTAIN CLIMBING, PARAGLIDING, HIKING IN DOMOGLED CERNA

VALLEY RESERVATION PARK, VISITING HERCULANE MUSEUM AND ROMAN BATHS• TOURISM OBJECTIVES NEARBY: DECEBAL'S FACE CARVED IN ROCK IN DANUBE BOILERS, MONASTERY OF ST.

ANNE, CATHOLIC CATHEDRAL, BOAT CRUISE ON THE DANUBE,IRON GATES MUSEUM, MONASTERY VODITA HISTORY MUSEUM, BRIDGE OF GOD (NATURAL BRIDGE OF STONE), THE WORKS OF BRINCUS (TG. JIU), ROMAN CAMP SARMISEGETUSA, BUFFALO RESERVATION HATEG, CORVIN CASTLE, MONASTERY PRISLOP, FORTRESS DEVA


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DYNAMICS OF TOURISM IN HERCULANEYear 2006 2007 2008 2009 2010

Tourists in Hotels 48298 47739 60189 60319 66815Tourists in small pensions 66263 72574 89212 120594 128824

1 2 3 4 50

20000

40000

60000

80000

100000

120000

140000

48298 4773960189 60319

668156626372574

89212

120594128824

Tourists dynamics

Tourists in Hotels Tourists in small pensions

Source: Tourism Ministry

We can easily observe the move from accommodation in hotels to small pensions

The reasons for this are clearly the lack of services and the deterioration of the hotels.


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DYNAMICS OF CONSTRUCTION AUTHORIZATIONS IN HERCULANE

Year 2006 2007 2008 2009 2010

Total construction authorizations 2217 2380Construction authorizations for accommodation purposes 1833


The statistic refers to accommodation places versus total places authorized to be build.

It is easily to observe that the investors in tourism (especially small ones) started to adapt to the request for accommodation in Herculane

1 20

500

1000

1500

2000

2500 2217 2380

1833

Construction Authorizations

Total construction authorizationsConstruction authorizations for accommodation purposes


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DYNAMICS OF ACCOMMODATION FACILITIES IN HERCULANE

Year 2006 2007 2008 2009 2010Accomodation buildings 3 31 31 42 48


Here it is very easy to see how the accommodation old buildings tried to answer to the market request.

Practically they tried to authorize again their activity in order to be allowed to use their facilities for accomodation

1 2 3 4 50

10

20

30

40

50

60

3

31 31

4248

Accomodation buildings

Accomodation buildings


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WHY THE TOURISTS COME TO HERCULANE?Tradition to come to Herculane 7%For treatment 27%For leisure 13%For sport activities 8%For treatment + leisure 45%

Tradition to come to Herculane; 7%

For treatment; 27%

For leisure; 13%For sport activities; 8%

For treatment + leisure; 45%

Why come to Herculane

It shows very clear that the main purpose forcoming to Herculane is the healing thermalwater.

In the same time we can see that the main ways to bring more tourist here are the development and marketing the leisure activities together withthe renovation of the thermal water facilities.


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HOW MANY DAYS/YEAR IN HERCULANE?

The most common way to spent the days in Herculane isduring the weekends.

In the same time the graphic shows the huge potential forlonger stay in Herculane (more than 14 days) for thethermal water cures.

This potential is clearly the main reason for improvingthe accommodation and treatment facilities. For transforming the weekend tourist to 1-7 days tourists itis very important to build and market the leisure activities.

1 or 2 weekends/year 38%1 - 7 days 27%7 - 14 days 14%More than 14 days 21%

1 or 2 weekends/

year38%

1 - 7 days27%

7 - 14 days14%

More than 14 days21%

Days / year in Herculane


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OUR TARGET!• TO BRING MORE TOURISTS IN HERCULANE AND TO KEEP THEM THERE BY:

• RENOVATING AND INTRODUCING AGAIN IN THE TOURISTIC MARKET THE BASINS WITH THERMAL WATER (8 BASINS + 180 INDIVIDUAL CABINS)

• RENOVATING AND IMPROVING THE ACCOMMODATION FACILITIES (MORE THAN 2000 ACCOMMODATION PLACES IN 8 HOTELS)

• OFFERING LOCAL LEISURE ACTIVITIES (BUILDING AND OPERATING THE AQUA PARK, DEVELOPING COMPETITIONS FOR HIKING AND PARAGLIDING)

• MARKETING OVER EUROPE (ESPECIALLY EUROPE NORTHERN COUNTRIES) AND ASIA THE FACILITIES AND THE HEALING NATURAL RESOURCES OF HERCULANE

• TO MAKE THE TOURISTS COME BACK FOR SEVERAL YEARS BY:• OFFERING LOYALTY VOUCHERS FOR COMING IN THE NEXT YEARS• IMPROVING THE HEALING AND ACCOMMODATION SERVICES ACCORDING TO THE MAIN

REQUESTS IN THE INDUSTRY


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SWOT ANALYSISSTRENGHTS- NATURAL ENVIROMENT- TRADITION IN HEALING CURES- UNIQUE COMBINATION BETWEEN

PURE AIR AND THERMAL WATER- INFINITE RESOURCE OF THERMAL

WATER- NEAR THE ROMANIAN BORDER TO

SERBIA- WELL KNOWN IN ROMANIA

WEAKNESSES- 2 HOURS FAR FROM THE NEAREST

ROMANIAN INTERNATIONAL AIRPORT

- OLD STANDARD FOR ACCOMODATION AND LOW SERVICES

- LOW OFFER FOR LEISURE ACTIVITIES

OPPORTUNITIES- FOR SALE THE MOST OF TRADITIONAL

ACCOMODATION FACILITIES- FOR SALE 90% OF THERMAL WATER

BASINS AND INDIVIDUAL CABINS- THE COMBINATION OF ANCIENT HISTORY

AND MODERN SERVICES WILL BRING A SPECIAL FLAVOUR TO THE TOURISTS’ MIND

- THE CURE TREATMENTS AVAILABLE WILL MAKE THE TOURISTS COME BACK AGAIN AND AGAIN

THREATS- LOW STANDARD PUBLIC

INFRASTRUCTURE (THERE IS AN E.U. PROGRAMME TO IMPROVE IT)

- AGGRESSIVE MARKETING FOR SIMILAR RESORTS IN EUROPE (EX: VICHY)


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MARKETING STRATEGYTO MARKET THE ACCOMODATION AND HEALING PROPERTIES OF THE THERMAL WATER WE WILL USE:- THE STORY OF HERCULANE FROM ANCIENT TIMES TILL NOW. WE CAN USE THE

HERCULES IMAGE.- THE PRESENTATION AND ADVERTISING OF THE UNIQUE COMBINATION OF PURE AIR

AND THERMAL WATER- THE SPECIAL IMAGE OF ACTUAL LUXURY COMBINED WITH ROMAN ANCIENT BUILDING

STYLE AND THE ROYAL BUILDINGS REALISED DURING THE AUSTRIAN-HUNGARIAN EMPIRE (1800-TH)

- ADVERTISE THE SLOW FOOD STYLE- ALL THE ACCOMODATION WITH 3, 4 AND 5 STARS CLASSIFICATION WILL BE

MARKETED WITH ALL INCLUSIVE AND ALL INCLUSIVE PLUS PACKAGES


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INVESTING IN HERCULANE• WE HAVE THE OPPORTUNITY TO BUY, RENOVATE AND INTRODUCE AGAIN IN THE

TOURISTIC INTERNATIONAL MARKET ALMOST 80 PERCENT OF THE TRADITIONAL ACCOMMODATION AND 90 PERCENT OF THE THERMAL WATER BASINS.

• WE HAVE ALSO THE OPPORTUNITY TO RENT THE EXCLUSIVE RIGHTS FOR USING THE THERMAL WATER FOR 20 YEARS.

• NEW PROJECTS TO INVEST ALSO ARE THE AQUA PARK HERCULANE AND THE INTEGRATED PHYSIOTHERAPY INSTITUTE. DEVELOPING BOTH OF THEM GUARANTEE THE RETURN OF INVESTMENT IN 7 YEARS FROM THE MOMENT THEY BECOME OPERATIONAL.

• INVESTMENTS NEEDED : 227,950,000 EUR (PLEASE SEE THE DETAILED INVESTMENT TIME LINE FILE ATTACHED)


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OPERATIONAL• PRACTICALLY ALL THE FACILITIES WILL BE FULLY OPERATIONAL IN 16 MONTH. (PLEASE SEE THE

INVESTMENT TIME LINE HERCULANE RESORT FILE ATTACHED)

• THE BUSINESS START TO HAVE INCOMES FROM THE FIRST MONTH AFTER ACQUISITION FROM HOTEL FERDINAND 3* WHICH IS FULLY OPERATIONAL (PLEASE SEE THE HOTEL FERDINAND 3ST OPERATIONAL BUDGET FILE ATTACHED)

• ALSO THE OTHER ACCOMMODATION, LEISURE AND CURE FACILITIES WILL BE OPERATIONAL GRADUALLY IN THE SECOND YEAR. THIS FACT ASSURE US THAT WE ARE HAVING THE OPPORTUNITY TO HAVE THE INVESTMENT RETURN IN MAXIMUM 8 YEARS FROM THE START. (PLEASE SEE ALL THE OPERATIONAL BUDGET FILES ATTACHED – THOSE ARE DEVELOPED FOR EVERY ACCOMMODATION FACILITY)


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CONCLUSION

UNIQUE LIFE TIME OPPORTUNITY!


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CONTACTSS&B BUSINESS TOUR

Romania, Bucharest101 MATEI BASARAB STR., Bl 64, Sc.

A Ap.34,

Razvan Banciu – Project Manager

Tel: 0040 744 537 045

E-mail: [email protected]

Skype: razvan.banciu


mailto:[email protected]

Documents

Herculane Resort_Life Resort