Cusco

Peru

70 Unit Hotel
Project
Four Star
What is Cuzco?

 Cuzco, has become

the stop over city to
view the famous
Machu Picchu Ancient
Ruins. The large
amount of museums
and churches have
become Cuzco in the
most important tourist
to center of Peru.
Gateway to Machu Picchu
 Cusco is one of those
rare places -- perhaps
like Bali, Katmandu, or
Prague -- that seems
able to preserve its
unique character and
enduring appeal
despite its prominence
on the international
tourism radar.
One of the New 7 Wonders
 Machu Picchu Peru, is
reported to be among the
leaders in the New 7 Wonders
contest, which has just
surpassed the 45 million vote
mark, according to the
organizing body -the
New7Wonders Foundation.
Other sites that are reported
to be among the leaders are:
the Acropolis (Greece), the
Chichen Itza (Mexico), the
Roman Coliseum (Italy), the
Eiffel Tower (France), the
Great Wall of China, and Petra
(Jordan).
 South America for Visitors

 Top 10 Most Visited South American Attractions - 2006

1) iguazu Falls, Argentina and Brazil

2) Cartagena, Colombia
3) Machu Picchu, Peru
4) Devil's Island, French Guiana
5) Nazca Lines, Peru
6) Angel Falls, Venezuela
7) Cuzco, Peru Where airport is located- Machu Picchu is a 3 hour
train ride from Cusco
8) Lake Titicaca, Peru and Bolivia.
9) Mendoza, Argentina
10) Cities from Space
Bustling City
Abundant Night Life
Downtown Cuzco
Beautiful City
 Domestic and Foreign Tourism Growth In Cusco

Year
Domestic Foreign TOTAL
1993 347,668 148,963 496,631
1994 405,560 283,065 688,625
1995 417,040 394,079 811,119
1996 380,532 465,596 846,128
1997 369,339 460,569 829,908
1998 339,333 524,985 864,318
1999 357,812 676,947 1,034,759
2000 340,544 734,103 1,074,647
2001 324,428 683,483 1,007,911
2002 342,030 677,197 1,019,227
2003 343,359 710,139 1,053,498
2004 478,669 1,105,957 1,584,626
2005 519,898 1,309,752 1,829,650

Official data from the department of tourism- Cusco

 2006 Foreign tourism 1,101,494

2006 Domestic Tourism 405,045

Total 1,506,539

Over 500,000 come from the USA and Europe but there
is no major franchise hotels except Best Western
* See spreadsheet for Tourism in
Cusco categorized by country
The top rated hotels in Cusco are:

The Monasterio ( 5 star)

Libertador (4 star)
Novotel ( 4 star)

There are a few good 3 star hotels but the majority 2 to 3 star hotels
are in average condition to US standards.
 Competition
 Hotel Monasterio Four Star
 Room Information122 units
 Prices$435 deluxe double; $520-
$1150 Rates include breakfast buffet
 minibar, hair dryer, safe
 Competition

 Libertador Palacio del Inka 4 star

 Room Information254 units
 Prices$185 deluxe double; $215-
$350 suite. Rates include taxes
 In Room Amenities A/C, TV/VCR,
fax and dataport in some units,
minibar, hair dryer, sfe
 Competition
   Novotel
 Room Information 99 units 
  Prices $118-$186 double. Rates
include taxes and breakfast  
 In Room Amenities AC, TV,
minibar, hair dryer  
 We are looking into some of the
following franchises:
We plan to build 87 rooms

The average occupancy rate for the

Department of Cusco in 2006 was
65% for a 4 star Hotel
 Your Return
Estimate: at a low $130 Avg. per night for

a 70 room hotel at 65% occupancy the

estimated net profit of the hotel is:

1,419,433 (see spreadsheet for a detailed analysis)

30% share stays in the company. We are offering a 4% ownership, of the

remaining 70%, per every 100,000 invested

For example: 1,419,433 x 70% = 993,603 x 4%= 39,744 , which in this case
equals to a 39% annual return on your investment
 Expedia
 Below are the December rates from
expedia for the top hotels. ( Dec. is
the slowest month of the year in
Cusco)

 Monasterio $ 330
 Libertador $ 205
 Novotel $ 130
Site Location

Two
blocks
Away from
main plaza
 Cuzco 1 Site

Left Right side

side
Cuzco 2 Site
Cuzco 2 Site