2013-2015

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Contents:
General Managers Report

Page.3

Mission Statement

Page.4

Business Profile

Page.5

Marketing Report

Page.8

Operations Report

Page.11

Corporate Report

Page.16

Conclusion

Page.18

General
Report:
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Managers

The multi-award winning Nouveau hotel provides exceptional accommodation and services
in the epicentre of Sydney, Australia. In the expansive twin buildings, nature meets urban
living in innovative, cutting edge architectural design with native flora lining the buildings
vertical walls. In this contemporary setting the management team and staff are committed to
achieving the best experience for our valued guests through the provision of superb facilities,
meaningful and professional service, and ensuring a comfortable and relaxing stay. We are
dedicated to contributing positively to the global community by placing environmental
sustainability at the centre of our process and philosophy.
2013 to 2015 has been a period of great growth for our company. When the market and
demand for hotel rooms increased, we made the business decision to purchase and run a
second hotel. While this initially had negative impacts on our share prices, with them
dropping from $6.02 to $2.12, it increased our share prices overall to $7.25. We are a leading
employer, with more than 100 staff employed in roles ranging from management to cleaning.
Nouveau has produced an overall profit of $5898569 over the past two years and our
occupancy in the final quarter was very pleasing, with a 85% occupancy rate. Nouveau has
set the bar extremely high for luxury, cooperate accommodation and I am very excited about
our future prospects. We regularly contribute to the local community that we operate in
through responsible practices and extensive charitable endeavours, along with investing
$69000 into the community.
Over this two year period, we have also had great success winning many awards including
the United Nations World Environment Day Awards in 2015, the 2015 TripAdvisor
Travellers Choice Top 25 hotels in Australia, 2014 Winner Green Globe Awards Small
Business & Premiers Award, and the 2014 Winner Qantas Award Excellence in
Sustainability.
Over the past two years, there have been a few ethical issues, to all of which we have
responded with the utter most professionalism and respect. When we were faced with toxic,
promotional gifts, we took the more expensive, time consuming option of recalling,
inspecting and replacing the pencils, but we felt that we had strong corporate social
responsibly to the community.
Nouveau is a unique hotel, striving to be Australias greenest urban development. Some of the
environmental strategies that we have implanted are a central thermal plant and a trigeneration power station using, onsite water recycling plant which collects rainwater,
greywater and black water for treatment and reuse in laundries, toilets and gardens. We have
a 100% capture and reuse system of all rainwater falling on roofs. Also, hydroponic vertical
gardens regulate the internal temperature and a heliostat reflects light around the building and
park areas, cutting our electrical costs and emissions. Overall our building has a 5 green star
rating, (Green Building Council of Australia rating system).
Looking to the future, our company has plans to expand, taking our hotel and creating a chain
around Australia, with emphasis on the 6 capital cities: Sydney, Melbourne, Canberra,
Adelaide, Darwin and Perth. Additionally, we aim to keep our 5 green star energy rating and
to stay up to date with the latest technology and environmentally sustainable strategies in
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order to keep it at the centre of our process and philosophy. We will continue to remain
committed to delivering long-term shareholder value by securing new hotel projects and
maintain our mentality of world class service and state of the art facilities in an
environmentally sustainable setting.
On behalf of the Board, I wish to thank all of our employees and management for working so
hard to ensure the success of Nouveaus future. I would also like to thank you for your
continued support and interest as a shareholder of the Nouveau Hotel.

Alice Chapman
General Manager

Mission Statement:
The multi-award winning Nouveau hotel provides exceptional accommodation and services
in the epicentre of Sydney, Australia. In the expansive twin buildings, nature meets urban
living in innovative, cutting edge architectural design with native flora lining the buildings
vertical walls. In this contemporary setting the management team and staff are committed to
achieving the best experience for our valued guests through the provision of superb facilities,
meaningful and professional service, and ensuring a comfortable and relaxing stay. We are
dedicated to contributing positively to the global community by placing environmental
sustainability at the centre of our process and philosophy.

Business Profile:
The Nouveau hotel is multi-award winning and revolutionary in presenting design and
accommodation with professional flair in a contemporary setting. Here city meets nature,
with surrounds of expansive gardens and definitive guest rooms veiled in living green walls.

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Located in the epicentre of Sydney, Australia the Nouveau hotel buildings are minutes away
from the Sydney CBD, Central Station, and other key locations for optimum convenience.
We are proud to provide state of the art facilities including meeting and function rooms, free
internet access, business packages, pool and a heated spa, gymnasium along with a world
class bar and restaurant. Our architecturally designed buildings allow for stylish and
innovative accommodation and a luxurious stay for all of our guests. Nouveau is housed in
a 117-metre-tall tower designed by architect Jean Nouvel featuring vertical gardens by
Patrick Blanc and LED art by Yann Kersale. A luxury shopping centre is located on the lower
levels, leading out to a parkland below. The design includes a cantilevered section including
a heliostat to provide light below. All of this is provided in an environmentally sustainable
setting which our hotel is renowned for as the winner of the United Nations World
Environment Day Awards in 2015 amongst numerous more prestigious awards. This is the
result of a commitment to providing the best service and quality by all our staff while
remaining environmentally sustainable.
Our hotel is aimed at a corporate market but also accommodates tourism and other people
groups. Our facilities include a large board room and function space which we hire out for
weddings and other cooperate events. Over the next two years, we aim to bring our
occupancy up to 85% whilst still maintain our 5 green star energy rating.

The

The

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The

The Bar
The

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Marketing Report:
The Marketing Team:

Racheal Sharp (Manager)

Jared Cohen

Erin Rowling

Over the past eight quarters, we have spent $6500000 on marketing. This money has been put
to good use on our many advertising campaigns which have included a high end website, a
social media launch, advertisements on buses that roam the Sydney CBD, TV and radio ads
and countless business cards, brochures and flyers, which have all been used to raise
awareness of our hotel.
The Marketing Size, Results and Trends

Market Share= Throughout the 7 quarters our market share has been at a steady rate.

Takeover- 10% Steady

Quarter:
1- 9%

Down

2- 8%

Down

3- 9%

Up

4- 9%

Steady

5- 9%

Steady

6- 10%

Up

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7- 9%

Down

Room Prices:
Takeover =

Quarter 7=

Standard-120

Standard- 120

Deluxe-180

Deluxe- 170

Luxury-300

Luxury- 270

Occupancy (%):
TOTAL:
Takeover= 83%
Quarter 7= 85%

Advertising:
Takeover= $100,000

Quarter 7= $100,000

Promotions:
Takeover= $50,000

Quarter 7= $50,000

Target Market:
Our hotel NOUVEAU is a corporate hotel. The target market for our hotel is business
people and people that travel for business conferences, that need easy access to the city of
Sydney.
The Competition:
Our hotel performance is above industry average, and we are constantly working to remain
above.

Occupancy-

Hotel 1

Hotel 2

Industry average

84.5%

85.0%

69.7%

136

142

115

99

Average Rate-131
(AUD/room occupied)
RevPAR8|Page

111

(AUD/room available)

Marketing Mix and Strategies:

Product:
Our building has a spectacular architectural design, of glass windows on the exterior of the
building, with mirrors and well structured rooms throughout the interior. NOUVEAU has a
cantilever heliostat attached to the top of our hotel, this is to reflect light onto the roof and
walls of our hotel. This adds to our architectural design as well as adding to our
environmentally sustainability. This mirrored cantilever reflects the light onto the rooftop
garden, which is then used in the kitchen, it also saves money on electricity and lowers our
carbon emissions.
Price:
Between our two hotels the prices are exactly the same. We have done this because they are
both placed in major cities. The standard rooms are priced differently to the deluxe and
luxury this is because we have priced our rooms according to quality, so the nicer to quality
the higher the room prices.
Promotion:
To promote our Hotels we have used a range of e-commerce ideas. To get the word out about
our product we have created a website with all the information (and a gallery) that people
need to know and the prices for our rooms. We have kept up with the 21st Century, and
introduced a facebook page. This allows clients to see images of our rooms, prices of our
rooms, locations of the hotels, and any deals that we offer. We have also have cooperated
with third parties (tripadvisor etc.), we have done this to increase our profit.
Placement:
We own two NOUVEAU hotels. Our first hotel is situated in the heart of Sydney, this
makes it easy for people with business conferences/functions to stay in the city and their
destination is in walking distance. Our second hotel is situated in the city of Melbourne.
Again this makes it easy for business people to stay in the city, and not be too far away from
their business destination. We have placed our hotels in the hearts of the two major Australian
cities because they are both in close distance to key locations for the convenience of our
guests.

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Operations Report:
The Operations Management Team:

Olivia Gentle (Manager)

Josee Hart

Anna Schauss

At NOUVEAU the highly equipped Operations management team makes a number of

fundamental decisions to ensure the profitable and smooth running of the hotel on a day-today basis. Over the past two years a number of changes have been made in expenditure as
well as level of service and facilities available for guests to ensure optimum functioning of
the business and exceptional hotel experience.
Development of Facilities and Services during 2013-2015:
After takeover in early 2013, the hotel has been largely improved and altered to better
provide for our guests. In order to provide largely for a corporate and business oriented
audience a number of facilities and services have been implemented. In QUARTER
NUMBER the hotel was refurbished and the following services were introduced:

Two new meeting and conference rooms were constructed, which are equipped with
furniture, presenting tools including plasma flat screen televisions with AirPlay,
Chromecast and a number of other presenting and connection methods, whiteboards
and tea and coffee services, and have been designed to ensure optimum entrance of
light into the room and aesthetic appeal to create a productive and comfortable space.

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Free internet access has been provided for all of our guests for both personal and
business use.

Business packages, including catering for functions, reduced room rates, high quality
service, streamlined check-in process and restaurant deals.

Printing and photocopying services for guests.

Two new functions spaces have been constructed that can support up to 500 people,
for large scale events such as launches, presentations, and more.

Through the development of these facilities the operations team aims to encourage more
business for the hotel and also enhance the experience of guests both staying for leisure and
business reasons.
The total cost was $1 809 800 in the seventh quarter compared to $1 809 800 at takeover.
This was due to a commitment to provide a larger amount of facilities, and to update and
modernise our services to be a key runner in the competitive market. The materials cost in the
seventh quarter was $1 000 000 compared to $50 000 at takeover, and the equipment costs
were $240 000 in the seventh quarter compared to $80 000 at takeover. This increase allowed
for better provision of resources and services for our guests. This development has allowed
NOUVEAU to be more suited to a modern and contemporary context, and achieve the most
for our valued customers.
Further Additions to the NOUVEAU Hotel Chain:
In the third quarter of 2013, a second hotel was constructed as part of the NOUVEAU hotel
chain. This has allowed NOUVEAU to branch out and accommodate for a larger target
audience and respond to demands. This addition has been largely successful, and has
contributed to ongoing success within our business. In the near future, NOUVEAU aims to
continue to expand in key city centres similar to Sydney across Australia. This will allow for
widespread excellence in accommodation across the country, and convenience for our guests
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in a modern, sustainable and innovative setting. The second hotel was successfully
constructed with an establishment cost of $1M to allow for materials and equipment to be
supplied.

Staff Decisions 2013 2015:

At NOUVEAU we are all about providing world class staff service and ensuring it is
delivered in a professional, meaningful fashion. This guarantees a comfortable and relaxing
stay, and that our guests will leave feeling respected and valued, and continue to return.
Throughout the previous two years we have maintained a high quality level of service across
the board, in administration, food and beverages, room service, maintenance and all other
areas. At a quarterly rate this has cost an average amount of $3 129 025.

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This has resulted in enormous return for our business opportunities, through return visits,
great reviews on sites such as TripAdvisor and by critics, and increased morale for our
employed staff.
I recently stayed at NOUVEAU hotel. I was immensely pleased with the impeccable service
the staff offered throughout the stay. Travelling for business events has never been more
rewarding, and the provided facilities for meetings and functions were in great condition and
priceless! The number of environmentally sustainable strategies implemented in the centre of
Sydney surprised me and I fully support their movement to becoming green. Will be
returning soon! - Pauline F
During the past term (2013-2015) a number of incentives have been introduced for our staff,
to provide encouragement to excel and achieve within their individual roles, and also create
the best experience possible for our guests. This program also aims to reward our constantly
hard working staff, that are the backbone for our success and continue to maintain the
excellent work rate.
I really enjoy working at NOUVEAU. The management staff are extremely supportive and
provide an encouraging environment for me to continue to succeed. They provide adequate
training, pay, and incentives to ensure that the staff enjoy themselves too! - Staff Member of
NOUVEAU
Total Expenditure and Costs:
Overall the total expenditure per quarter for the maintenance and management of the hotel
complex is outlined below.
In the seventh quarter:
Total Cost - $1 809 800
At takeover:
Total cost - $902 000
Overall Process and Performance within Operations:
Over the previous two years, NOUVEAU has improved exceedingly well to become an
established, innovative, and modern hotel complex. The decisions made within this quarter
have contributed to this success, and the achievement of a number of awards for service
quality and provision of eco-friendly facilities.
In the near future, NOUVEAU aims to continually improve services and provide new
services for our guests to provide the best possible experience. We also aim to provide
exceptional service, and provide a supportive environment for our staff to work within. New
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hotels are on the horizon to continue to establish and spread the definitive quality of
NOUVEAU service, facilities and experience.

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Corporate Report:
The Corporate Team:

Micheal Woodward (Manager)

Matt Lees
Nathaniel Worcester

Statement of Financial
Position:
At

Takeover:

Cash

At Bank: $696,944

Hotel

Equipment: $858,000
Liabilities: $0

Shareholder Equity: $1,554,944

Dividends Paid: $0

After Seven Quarters:

Cash At Bank: $3,184,784
Repaid Debentures: $1,585,000
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Shareholder Equity: $5,898,569

Dividends Paid: $40,000

Statement of Financial Performance:

At Takeover:
Sales: $2,516,000
Total Gross Income: $2,516,000
Expenses: $1,684,000
Tax: $277,056
Profit: $554,944

After Seven Quarters:

Sales: $5,127,333
Total Gross Income: $5,127,333
Expenses: $3,111,676
Tax: $671,214
Profit: $1,344,443
Over the past seven quarters we have developed a strong financial position within the market
and there have been no unprecedented drops in the share price.

Conclusion:
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Over the past two years, our hotel Nouveau has undergone significant growth and
development, whilst still providing exceptional accommodation, services and state of the art
facilities. We remain dedicated to contributing positively to the global community by placing
environmental sustainability at the centre of our process and philosophy. In to the future, we
will continue to remain committed to delivering long-term shareholder value by securing new
hotel projects and maintain our mentality of world class service and state of the art facilities
in an environmentally sustainable setting.

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