ERA Boutique Hotel - Marketing Plan by camilaramirez

Marketing Plan

Team 1 Bajar, Omid Diaz, Thomas Fernandez-Salvador, Andrea Franz, David Khanna, Devisha Lee, SangGil (Daniel) Martin, Chanel Martinez, Brenda Ramirez Gonzalez, Camila Torrez, Denise Trivedi, Manthan

Table of Contents ERA Fact Sheet ........................................................................................................................... 4 Mission ................................................................................................................................................... 6 Vision ...................................................................................................................................................... 6 Rooms & Pricing ................................................................................................................................. 6 Food & Beverage Outlets ................................................................................................................. 6 Services & Amenities ........................................................................................................................ 7 Meeting & Conference Facilities ................................................................................................... 7 Retail ....................................................................................................................................................... 7 ERA and the Leading Hotels of the World ........................................................................ 8 Our Name .................................................................................................................................. 10 Our Design ................................................................................................................................ 10 Site Location ............................................................................................................................ 11 Property Design ..................................................................................................................... 11 A Glimpse of ERA .................................................................................................................... 12 Our Concept ............................................................................................................................. 13 Maintaining Our Balance as a Boutique Hotel ............................................................. 14 Our Six Gears ........................................................................................................................... 16 Sustainability at ERA ............................................................................................................ 16 Target Market ......................................................................................................................... 20 Demographics ......................................................................................................................... 22 International and Domestic Travelers ........................................................................... 23 International Traveler Profiles ........................................................................................ 32 Understanding our Customers .......................................................................................... 34 Generation X- ‘Gen Xers’ ...................................................................................................... 37 The Guestrooms – ‘Rest Here’ ............................................................................................ 39 Additional Amenities and Services.................................................................................. 44 Hotel Facilities ........................................................................................................................ 54 Fitness Center – “Get Fit Here”................................................................................................... 55 Business Center and ‘The Library’ ............................................................................................ 57 Meeting and Events ........................................................................................................................ 58

Food and Beverage ................................................................................................................ 61 All Day Dining Restaurant............................................................................................................ 62 In-Room Dining ................................................................................................................................ 64 Lobby Café.......................................................................................................................................... 65 Rooftop Terrace & Lounge........................................................................................................... 67 Retail & Outlet Mall ............................................................................................................... 77 The Gallery ......................................................................................................................................... 77 Pop-Up Retail Store ........................................................................................................................ 77 The Shops at ERA ............................................................................................................................ 78 Main Competitors .................................................................................................................. 83 Competitive Map .................................................................................................................... 85 SWOT Analysis ...................................................................................................................... 88 ERA’s Sales Force ................................................................................................................... 90 LHW - An extension to ERA’s Sales Team ........................................................................ 93 ERA’s Marketing Objectives ............................................................................................... 96 Pre-opening Strategy............................................................................................................ 98 Sales Channels ........................................................................................................................ 99 Marketing Budget ................................................................................................................ 100 Sales Forecasts...................................................................................................................... 101 Online Marketing ................................................................................................................. 103 ERA’s Website ....................................................................................................................... 107 ERA & Leading Hotels of the World Promotional Tools ......................................... 108 ERA & LHW’s Communication Tools ............................................................................. 116 Mobile Linkage & Application ..................................................................................................117 Social Media.....................................................................................................................................118 Travel Websites .............................................................................................................................120 Tracking the ROI .................................................................................................................. 122 References .............................................................................................................................. 124

Hotel Name:

ERA | Boutique Hotel

Address:

2201 S. Michigan Ave Chicago, IL 60616

Hotel Rating: About us:

Ambit Consulting is a firm dedicated to developing multi-use properties in the hospitality industry. Our mission is to develop properties that are functional, dynamic and focused on location and particular target markets.

Overview:

Located just steps away from the largest convention center in North America, ERA combines the practicality of a business hotel with the personalized service and comfort of a four-star boutique hotel. As the newest and only member of The Leading Hotels of the World in the Midwest, ERA provides a one-of-a-kind experience, while remaining true to the high quality standards expected from LHW members. Whether visiting Chicago for a convention or simply sightseeing, our 216-room hotel is an ideal place for conscientious travelers looking for a place with personality and charm. At ERA, we encourage our guests to be themselves and will provide them with all the tools necessary for them to tailor their own stays. ERA focuses on lifestyles and experiences, bringing together its guests, history, and community. Inspired by Chicago in the 1950s, we will add a vintage touch to our modern design. 4

“My energy will inspire the people around me to be the best they can be.“

“Each person is unique in their own way and it is my passion to bring out the best out of people in every way possible.“

David Franz, Director of Operations

“I strive to put an experience on every plate. I am dedicated to the art of culinary and the fulfillment of bringing people happiness one ingredient at a time“

“As a goal oriented people’s person, I have what it takes to present our product in a way to win the hearts of our customers “ Thomas Diaz, Chief Marketing Officer

Brenda Martinez, Executive Chef

“It is said that ‘the path to success is a lonely road’. I believe that with passion and dedication and the right set of mind as a team this can be changed.“ Omid Bajar, Chief Administrative Officer

Chanel Martin, Director of Human Resources

“Quality service is what can make or break an establishment, therefore it is my duty to guarantee the highest level of excellence in service possible. “ “I wish to portray the best of my mathematical and analytical skills to achieve the most appropriate quantifiable results“

Denise Torrez, Director of Food & Beverage

Manthan Trivedi, Chief Financial Officer

“ I will passionately bring the best of sustainability to the world of hospitality” “I think that facing challenges that take you out of a day to day routine helps to foster new and unique ideas” Andrea Fernandez, Executive Assistant Manager, Rooms

Camila Ramirez, Chief Sustainability Officer

“To fulfill a vision, one must do it with passion. I will continue to inspire my team with a path to success and make them believe in themselves by starting with the principle that the meaning of leadership is to produce more leaders and encourage them to dream big.”

“Every establishment has an engine, without it, it cannot operate. It is important to keep that engine running smoothly with hard work and attention to detail.”

Devisha Khanna, Chief Executive Officer

Daniel Lee, Chief Operating Officer

Mission Our mission is to provide an authentic experience for independent individuals in which practicality and comfort are not compromised.

We break barriers by providing personalized service to facilitate and enhance the guest experience, while committing to sustainable practices.

Vision Our vision is to become the preferred choice for both our guests and employees, as a distinguished landmark within our community.

Rooms & Pricing ERA will consist of 216 guestrooms, offering four different room categories for our guests to choose from. Our average daily rate will be $300, in function of seasonality and demand.

Food & Beverage Outlets The Glass Onion All-day dining

Foraged Rooftop terrace & lounge

Crafted Signature restaurant

Located on the ground floor of Cermak Street, The Glass Onion features a contemporary American cuisine featuring a buffet breakfast, lunch and dinner with an optional A La Carte Menu. Projecting from the 8th floor over ERA’s courtyard, our rooftop terrace and lounge offers simple and small dishes made with fresh local ingredients focused in organic and natural cuisine; along with specialty cocktails. The rooftop terrace will be open from mid-April - mid October, and the lounge all year round. Located on South Michigan Avenue, this two level gastro-pub will feature an array of craft beers both locally and nationally with a menu featuring classic American signature dishes that is homage of the American 1950’s.

Lobby Courtyard Café

Located in our lobby overlooking the courtyard of ERA is Interlude, our café offering a wide selection of freshly baked pastries, a full coffee bar, freshly mixed and blended juices. After 4:30pm, a small selection of beer and wine is available.

In-Room Dining

Available 24/7, with a limited menu from 11pm to 6am, our in-room dining offers an array of dishes that have a locally inspired fare.

Interlude

Services & Amenities 



Concierge service

100% non-smoking property (Smoking area located outside of building)



Complimentary wireless Internet access



24-hour on-site fitness center



Enclosed parking and 24-hour valet



Self-service business center & library



24-hour In-Room Dining



Private meeting & conference facilities



Adjacent retail outlet mall

(With Limited Menu)



Personalized room preferences and welcome amenities

Meeting & Conference Facilities Our meeting & conference facilities provide the ideal function space for business reunions, intimate gatherings and wedding receptions. With our proximity to McCormick Place, we are the ideal host for pre and post-convention needs. Whether in need of a hospitality room or a private place to close a deal, ERA offers 4,320 sq. ft. of flexible space, allowing for functions of up to 250 guests.

Retail The Gallery

A boutique gallery located on the lobby level of the hotel, where guests can purchase hotel amenities as well as historic Chicago memorabilia.

Pop-up Retail

This pop-up retail shop will change its offerings based on the season and conventions taking place. It will be located on the lobby level with direct access to both Cermak and S. Michigan Street.

The Shops at ERA

Adjacent to the hotel, this mall will offer guests and residents a variety of brand outlets including women & men’s fashion, accessories, fine leather & luggage, as well as gift and specialty items.

ERA and the Leading Hotels of the World

Leading Hotels of the World is internationally recognized as the prestigious hospitality organization for luxury hotels and resorts around the world, founded in 1928 as a boutique referral association by a small group of European and Egyptian hoteliers. LHW oﬀers hotels resort owners and independent management companies the ﬂexibility to obtain LHW services and consultation.

ERA & LHW

Headquarters 485 Lexington Avenue, Suite 401 New York, NY 10017 Telephone: (212) 515-5600

Key Officers

As an independent hotel, brand affiliation can help ERA achieve the recognition it cannot obtain on its own. As LHW’s purpose is to preserve and enhance independent luxury hotels as the choice for travelers and hoteliers alike, it will provide us with the recognition we deserve and need without devaluing the essence of ERA. LHW, with its guiding principle, will enhance and augment ERA’s sales, marketing and reservation efforts on a global scale by concentrating on our hotel’s individual needs. With 25 sales offices and 12 call centers around the world, LHW will establish a strong presence for ERA in both mature and emerging markets, creating a powerful network effect.

Andrea Kracht Chairman Ted Teng President & Chief Executive Officer Daniel Neumann Senior Vice President & Chief Financial Officer

LHW’s Mission Statement “We are the marketer for the best independent luxury hotels in the world. Everything we do leads to making extraordinary reservations and reservations extraordinary.”

Ownership The Leading Hotels of the World, Ltd. is a wholly owned subsidiary of Hotel Representative, Inc. 8 (HRI)

LHW Properties Worldwide “When extraordinary and one-of-a-kind intersect, you have likely found a Leading Hotel of the World…”

LHW is the largest luxury hotel collection, with more than 430 of the world’s unique and independent, luxury properties in over 80 countries, with over 68,000 rooms. ERA is the newest and only member of The Leading Hotels of the World located in Midwest, United States.

Our Name ERA is more than just a hotel. It is a link between Chicago’s past and its present. An era is a period of time in history defined by distinct events, trends, and characteristics. The beginning of a new era is marked by a significant change in practices and fashions. Our name, ERA, represents a unity between past and present eras, in particular, a glimpse of the 1950s era and today’s modern era. The 1950’s was a period of post-war change, innovation and flair. It marked a turning point for the United States, as life and people’s roles changed in response to events. We now also live in an era of change, modernity and style. Today’s modern era is marked by efficiency, technology and progress. At ERA we bring harmony to the two eras, creating a place where past meets present, comfort meets convenience, and business meets pleasure.

Our Design The design of the logo symbolizes our idea of history meeting present-day. The word ‘ERA’ evokes a sense of reminiscence, while the modern design transports you to the future. The ‘E’ of the logo represents the physical structure of the hotel, as its layout is in the form of a letter ‘E’ when seen from above. The hotel consists of three sections, of which are also depicted in the logo. Each line of the letter ‘E’ represents the essence behind each section and its corresponding features. 

“Guest Experience” – Meeting Facilities, Fitness Center



“Community” – Lobby, Communal Areas & Dining Outlets



“Relaxation” – Guestrooms, Business Center & The ‘Library’

Site Location

Property Design

A Glimpse of ERA The Entrance - “Enter a new ERA”

The Lobby – ‘Gather Here’

Our Concept When picturing the venue for a typical business meeting in Chicago, one would not expect to find a hotel with intimate design and welcoming service. But, ERA is going to change that. We are part business and part boutique, creating the perfect balance.

BUSINESS HOTEL

BOUTIQUE HOTEL

Maintaining Our Balance as a Boutique Hotel ERA is on the forefront of the next generation of hotels, balancing the intimacy of a boutique hotel with the advantages of a business hotel. At ERA we connect with our guests and link their lifestyles with the experiences they have with us. Our guests are what make this balance possible, and our interaction with them maintains that balance. We execute this plan through a series of essential touch points in which we have direct contact with our guests.

Our Service Our most valuable assets are our employees and the service they provide. Their genuine service makes them key drivers of the interaction with our guests and ultimately our success. Our team is energetic, enthusiastic and we are always willing to help, establishing lasting relationships. We encourage our employees to go the extra mile and provide the best experience possible.

Our Property Our property is designed with our guests in mind. Our intimate and charming atmosphere welcomes our guests, and our all-encompassing facilities give them what they need. We give our guests the opportunity to tailor their own stay by offering accommodation, dining, shopping and social spaces all in one.

Our Dining We also reach our guests through their dining experiences. Offering unique selection of dining outlets, we connect with our guests through an array of culinary experiences. We play with flavors and use local ingredients to capture our essence and share it with our guests.

Our Community We connect our guests with our local community and bring its historic past to them. We aspire to bring character and life back to the area. As a distinguished landmark, we will mark the revival of the Music Row.

Our Technology Our modern take on the 1950s does not forget that we are in the 21st century. We incorporate user-friendly technology in our operations in order to enhance guest experience. We make it simple to connect with our guests and for our guests to connect with each other.

Our Six Gears At ERA, six core values are the gears that keep our business and operations running. All of our values aim at creating a synchronicity amongst our employees, guests and community. Guest and employee satisfaction, as well as service to our local community are the foundations of ERA. Ongoing interaction between these three parties and reinforcement of our six gears promote productivity, innovation and excellent service at ERA.

Respect We respect our guests and employees, while also teaching them to value and embrace our local community.

Authenticity By providing and supporting genuine service, we insure our guests an authentic experience.

Flexibility Being able to adapt to different situations, we are flexible in order to best meet guest and employee needs.

Quality Through consistent quality in our products and services we will achieve guest and employee satisfaction.

Sustainability We commit to sustainability in all aspects of our design, services and operation through employee and guest engagement.

Encouragement We encourage both our guests and employees to be themselves and play an active role in the hotelâ&#x20AC;&#x2122;s operations. 16

Sustainability at ERA At ERA, we pride ourselves in running an efficient and sustainable operation without undermining our guest or business needs. We are committed to sustainability in all aspects of our design, operation and services, engaging our guests, employees and local community. Through inspired leadership, effective communication and incentives, we are able to raise awareness on sustainability and be a role model for those around us. We incorporate sustainable practices in the following areas:

Architecture Sustainable building design Natural light & ventilation Green spaces

Departmental Functions Energy use reduction Water conservation General energy area use plan

Facilities Sensor lights/faucets

Daily Operations Laundry options Chemical-free cleaners Electronic keys Paper reduction & recycling

Equipment Composting Rainwater conservation Wastewater treatment Landscape Use Garden areas Native plants Flow of water/goods

SUSTAINABLE DESIGN

SUSTAINABLE OPERATIONS

SUSTAINABLE SERVICES

Awareness Employee training Guest acknowledgement Guest awareness campaigns Incentives Employee & guest incentives Best sustainable practices/promotions Rewards for sustainable initiatives Compensation for less than average energy and water usage

Our sustainability initiative, greenLEEF, focuses on all aspects of the hotelâ&#x20AC;&#x2122;s design, operation and services in order to minimize our environmental impact.

Our Sustainability Mission We are committed to running a low-impact operation that is socially and environmentally responsible, catering to the wellbeing of our guests and the environment.

Our Sustainability Vision Our vision is to be recognized for our sustainable practices in our services and operations, which will contribute to our environment, community and profitability.

Certifications & Recognition ERAâ&#x20AC;&#x2122;s commitment to sustainability goes beyond green certifications and endorsements. With that in mind, we acknowledge the importance of third party certifications and recognition programs, to both promote our sustainable initiatives to potential guests and ensure those initiatives are met.

TARGET MARKET

Target Market At ERA, we acknowledge the importance of understanding the needs and wants of our desired clients. In order to fully recognize what ERA offers its guests, it is crucial that we establish our target market and their purchasing behavior. The following chart illustrates our target market; the values allocated to each segment have been derived from our proximity to McCormick Place Convention Center and to our intimate setting and personalized service. We are aware that in order to attract and satisfy each target market, there are special interests and demands that need to be met. Therefore, we have gathered information and reached various conclusions with regards to who our guests are, what their purpose for traveling is and what they expect from us.

Market Mix

Business 42%

Meetings & Groups 28%

Leisure 30%

Business ERA is two blocks away from North Americaâ&#x20AC;&#x2122;s largest convention center and three miles from Chicagoâ&#x20AC;&#x2122;s financial center. Chicago is home to the headquarters of a wide number of influential U.S. and international companies, thus bringing millions of businessfocused visitors each year. In addition, McCormick Place Convention Center is a main catalyst to attracting business travelers to the city; last year it hosted 2.2 million people. For this reason our focus will be on 42% independent and corporate business travelers. These guests expect location, convenience, and efficient service, business related amenities and to be connected at all times; all of which ERA offers. Within this segment we seek both domestic and international travelers.

Leisure In late 2012, Mayor Emmanuel reported that leisure travelers represented the fastest growing segment of visitors coming to Chicago due to its 6 to 7 percent annual growth (Bergen, 2013). According to the City of Chicago the regional advertising campaign launched by the city promoting leisure travel showed positive results in the past year, which impacted hotel occupancy, an increase in revenue and return on investment (Smith Travel Research, 2012). Due to the growth of this segment, ERAâ&#x20AC;&#x2122;s market mix targets 30% leisure guests primarily made up of independent travelers, couples and small families.

Meeting and Groups Meetings and groups make up 28% of our target market, as we offer intimate and private spaces to host informal and formal meetings and events. ERA is prepared with 4,320 sq. ft. of banqueting and meeting space to address small, self-contained groups who seek detailed and personalized service, who might also attend some conventions at McCormick Place.

Demographics

50+ yrs

20%

25-35 yrs

25%

25% $50,000 - $75,000

30%

AGE

INCOME

35-50 yrs

$75,000 â&#x20AC;&#x201C; $100,000 $100,000 +

55%

45%

Gender

45% Female

55% Male

Marital Status Single 40%

Married 45%

Divorced 15%

International and Domestic Travelers Chicago has ranked amongst the top ten cities to visit in the United States for three consecutive years according to CondĂŠ Nast Traveler. On June 2013, Mayor Rahm Emanuel reported 46.37 million domestic and international travelers in 2012. This value represents an increase of 43.59 million visitors in 2011. Domestic travelers made up 97% of the total; an increase of 6.2% over 2011 and international travelers reached 1.369 million visitors, an increase of 14.2% over 2011. The city has reached these results due to its strong marketing plans and is forecasted to continue with this growth (Press, 2013). Taking into consideration the results obtained by Choose Chicago we target 75% Domestic and 25% International travelers.

Domestic Market Domestic travelers make up 75% of our target market due to their 97% dominance of the total visitors the city hosted in 2012. The city of Chicago is one of the leading and most diverse economies in the world, generating an annual Gross Regional Product (GRP) of more the $500 billion and employing over four million people. It is the home of twenty-nine Fortune 500 headquarters as well as to more than four hundred major corporate offices. The key drivers in the economy are widely varied with manufacturing, information technology, health services, trading post and transportation as its main industries (World Business Chicago, 2010). The city is one of the worldâ&#x20AC;&#x2122;s greatest transportation hubs because of its central location offering air, rail and water distribution; the intersection of six out of seven class I U.S railroads in the city and the union of six main highways. Chicagoâ&#x20AC;&#x2122;s airports are a non-stop center for over 150 domestic locations from all parts of the country (World Business Chicago, 2010). In response to the diverse and large number of business travelers that are arriving to Chicago throughout the year, ERA is targeting this fruitful segment. The economic power of the city will continue to drive men and women from all states that are in need of lodging facilities that will meet their needs. In 2012, Don Welsh, President of Choose Chicago reported an increase of overnight domestic travelers by 7.9%, reaching 1.33 billion (D.K. Shifflet Associates, 2011). This increase represents an opportunity for ERA to attract domestic visitors and cater to this new demand. We are targeting the main cities of the United States due to their economic influence as well as ease of transportation. Our domestic visitation targets are divided by cities with strong economic standing and growing markets which generated a growth of 233,000 travelers over the past year (Office of the Mayor of the City, 2012). 23

Our target cities are the following: Strong Markets New York City Los Angeles Seattle San Antonio Washington DC

Growing Markets Cincinnati Detroit Grand Rapids Indianapolis Milwaukee St. Louis

LHW Properties in the United States: Sunny Isles Beach Las Vegas Carmel Valley Cary Santa Monica Chatham Fisher Island Honolulu Houston Telluride

New York City New Orleans Charleston Los Angeles Santa Barbara Vail Boston San Francisco Washington DC Nashville

Coral Gables Palm Beach Philadelphia Miami Beach Lenox Lake Placid Williamsburg

Chicago

Domestic Traveler Profiles Names: Matthew and Sally Bayer Ages: 34 & 31 Nationalities: American, Portland Marital Status: Married Occupations: Social Media Manager and Journalist Household Income: US$ $90,060 Personalities: Aesthetic, spontaneous, and reflective Interests: Adventure, travelling, nature Dislikes: Structure and routine

Name: Russell Hayes Age: 48 Nationality: American, San Francisco Marital Status: Married Occupation: Director of Human Resources - Consulting Firm Income: US$ $127,400 Personality: Perceptive, positive, influential, resourceful Interests: Public speaking, photography and writing Dislikes: Rooms next to the elevator, slow service and cats

Name: Adam Rifkin Age: 42 Nationality: American, Long Island Marital Status: Married Occupation: Marketing Executive Income: US$ 95,000 Personality: Intellectual, trendsetter, energetic, outgoing Interests: Books, journals, socializing, golf Dislikes: Confining environments and schedules, techno music

Name: Kim Graham Age: 39 Nationality: American, Seattle Marital Status: Divorced Occupation: Public Relations Specialist Income: US$ $53,190 Personality: Communicative, quick-thinking, extrovert Interests: Networking, social gatherings, and eating locally Dislikes: Wasting time, ignorance and staying indoor

Name: Dr. Alberto Cruz, D.D.S Age: 47 Nationality: American, Miami Marital Status: Single Occupation: Neuromuscular Dentist Income: US$ $142,740 Personality: Service-oriented, analytical, sociable Interests: Research, innovation, sports, classic rock Dislikes: Mediocrity and dust

Domestic Group Profiles Names: Steve Hobson & Lindsey Stone Ages: 49 & 45 Nationalities: American, San Antonio Marital Status: Single Occupation: Corporate Transients Income: US$ $215,180 combined Personalities: Hard-working, functional, networking Interests: Dining out, immersing in local culture, socializing, health Dislike: Inconsistency and unpunctuality

Names: Daniel Craig, Andrew Dickson, Scott Blair Ages: 45, 49, 48 Nationalities: American, Washington D.C Marital Status: Married Occupation: Business Transients Income: US$ 285,875 combined Personalities: Diligent, straight-forward, organized Interests: Downtown sightseeing, jazz bars, souvenirs, pubs Dislike: Traffic and excessive service

International Market 2012 International Visitation Ranking

Country

Number of arrivals 2012 Growth from 2011

Canada

22.70 million

Mexico

14.51 million

United Kingdom

3.76 million

-2%

Japan

3.70 million

14%

Germany

1.88 million

Brazil

1.79 million

19%

China

1.47 million

35%

France

1.46 million

-3%

South Korea

1.25 million

Australia

1.12 million

8% (Administration, 2012)

The following shows statistics of international visitation and spending in the United States in 2012 given by the U.S. Commerce Department. There is a common pattern between the nations that travel the most to the U.S. and amount of expenditure. For these reasons ERA targets the countries listed in the table above. As well, we are aware of the present growth in the Asian and South American markets These two markets accounted for more than half a million overseas visitors in 2012. Chicago's 2012 performance is significant since it reflects more than 66% of Mayor Emanuel's 2020 goal of reaching 50 million visitors (Chicago, 2013).

2012 International Visitors Spending Ranking

Country

Growth from 2011

Canada

Number of arrivals 2012 $25.5 billion

1 2

Japan

$16.5 billion

13%

United Kingdom

$12.6 billion

Mexico

$10.0 billion

Brazil

$9.3 billion

11%

China

$8.8 billion

14%

Germany

$6.9 billion

10%

Australia

$5.4 billion

10%

France

$5.3 billion

India

$4.9 billion

10%

(Administration, 2012)

International Target Market

International Growing Markets

Canada

Japan

China

United Kingdom

Mexico

Brazil

Australia

Germany

India

China

Venezuela

France

Argentina

Australia

South Korea

India

Colombia

The table below illustrates the three fastest growing regions of International Visitation in the U.S. According to the International Trade Administration, 64% of the total forecasted growth is expected to come from Canada (29%), China (19%), Mexico (9%) and Brazil (7%) (Administration, 2012). For this reason ERA targets these growing markets.

South America, Asia, and Oceania Growing Regions compared to 2012 Region

South America

Growth 2013 %

11%

Asia

Oceania

Nation

Brazil Venezuela Argentina Colombia Japan China South Korea India Australia

Growth 2018 % 52% 66% 65% 54% 29% 60% 12% 229% 43% 43% 35% 39%

(International Trade Administration, 2013)

International Traveler Profiles Name: Eva Tang Age: 34 Nationality: Canadian, Montreal Marital Status: Single Occupation: Financial Manager Income: US$ 90,160 Personality: Stable, kind, creative and hardworking Interests: Shopping, eating out, socializing, music Dislikes: Conflict, confrontation and lack of humility

Name: Jason Rose Age: 53 Nationality: English, London Marital Status: Married Occupation: Business Operations Manager Income: US$ $100,150 Personality: Hard-working, straight-forward, organized Interests: Reading, culture, and golf Dislike: Inefficiency and incompetence

Name: Adriana Age: 29 Nationality: Mexican, Mexico City Marital Status: Single Occupation: Meeting, Events and Convention Planner Income: US$ $66,020 Personality: Hard-working, straight-forward, organized Interests: Dining out, shopping, health, night life Dislike: Long lines, outdated dĂŠcor and fast food

Name: Lucile Bonnay Age: 38 Nationality: French, Montpellier Marital Status: Single Occupation: Art Director Income: US$ $81,260 Personality: Curious, creative, passionate, versatile Interests: Arts, Music, Photography and boutique shopping Dislikes: Mundane detail and peanuts

Name: ChinaTel Group, Inc. Age: 38-45 Nationality: Chinese, American Marital Status: Married Occupation: Software Development Management Team Income: US$ $120,000 Personality: Hardworking, organized, meticulous Interests: Technology, sightseeing, dining and networking Dislikes: Slow service and slow Wi-Fi

Understanding our Customers ‘Millennials’ and ‘Gen Xers’ ‘Millennials’ and ‘Gen Xers’, (Individuals ranging from 25 to 50 years) make up 75% of our target market. To understand the spending habits of this wide range of customers, both generations need to be analyzed separately.

Generation Y- ‘The Millennials’ ERA is aware that in the near future, Generation Y individuals, (born from 1980 to 1995), will become the world’s largest and most influential economic segment. In fact, forecasts report that by 2030 they will outnumber Baby Boomers (individuals born from 1946 to 1963) by twenty million (Flieri, 2013). Men and women 19 and 34 years old will be leading the business industry with an influential 80 million people, known as the ‘Millennials’. This generation is identified for being educated, technology skillful, devoted to ‘live in the moment’, and cherish experiences. To cater to the needs of this particular market segment, ERA acknowledges the following five characteristics:

The Gadget Frenzy Leisure and business travelers are in constant need of connectivity, no matter where they are; mobile devices are an essential element to their traveling experiences. For this reason, free Internet access is no longer an ‘extra’, but rather a ‘must’. Multiple power outlets are more commonly looked for due to the fact that typical business and leisure travelers carry multiple devices such as laptops, tablets, and smartphones all at once. Millennials embrace change and are motivated to adapt to the latest technology, always seeking for the fastest, sleekest and latest products.

Our Answer

Complimentary WiFi

Multiple power outlets

QSR checkin option

-ERA App -Leading Link Mobile

The Integrated Loners Millennials are interested in public spaces in which they can work, have a drink or snack, even if they do not have company. Rather than spending time alone in a confined space, they feel comfortable sharing communal spaces with other individuals like them. When spaces such as the lobby, lounge and ‘Library’ are integrated with one another, they can relax, reflect and enjoy their time while still being productive.

Our Answer

Informal meeting spaces

Grab n’ Go snacks

‘Active lobby concept”

Appetite for a unique experience Young travelers try to avoid mainstream options; they are original and unique individuals that require products that are a reflection of them. Millennials take pride in being the first ones to discover a ‘cool’ experience and are anxious to share them with friends and family. They are knowledgeable of history and respond positively when elements such as design, music and décor from the past are integrated with ‘modern’ hotels. Even if business travelers require basic amenities found in ‘cookie-cutter’ establishment they seek a place that will enhance their individuality. They search for innovation and discovery rather than comfort and familiarity.

Our Answer

Our perfect balance

Personalized service

Craft beer & unique happenings

Networking Spiders Millennials care greatly about socializing, exchanging ideas and networking. Whether staying in a hotel for business or pleasure, they value activities and events in which they gather and interact. Whenever they meet an individual with similar interest, they seize the opportunity to expand their web and connect. They value the opinion of their peers and enjoy sharing their ideas and beliefs.

Our Answer

Connectivity web

Social hub

Jazz brunches, blues nights & more!

â&#x20AC;&#x2DC;The Sustainnalsâ&#x20AC;&#x2122; Gen Y leisure and business travelers are educated, environmentally conscious, and are driven to be the ones who make a change. They are willing to adjust their habits if it is going to help the environment or their community, and are interested in encouraging others to do so as well. Recognition for their actions motivates them to take bigger and more constant leaps.

Our Answer

Our Sustainable Era

Vertical Garden & Green Roof

Green initiatives

Generation X- ‘Gen Xers’ Generation X, (Individuals born from 1964 to 1979), represents an important part of ERA’s market. The 44 million Americans, which fall into this generation, have great influence on the hotel industry since they range from 34 to 50 years old, and are in the peak of their professional lives. For the first time in history ‘Gen Xers’ are spending a greater amount of money (18% more) on luxury items than Baby Boomers (Fox, 2013). This generation is characterized for being independent, interested in research and they value money. The graph below represents the lead that Gen X has taken in the U.S labor force since 2009.

(POW Research Center, 2009)

Generation X individuals want to get information and understand products before purchasing them. The more data they have available, the more confident they are when making booking decisions or dining out. Gen Xers log into their emails daily and are frequent social media users. They make 80% of their purchases online (Fox, 2013), and when booking vacations 70% book on a travel sites. They are extremely loyal to their preferred brands and those businesses they identify with.

THE GUESTROOMS

The Guestrooms – ‘Rest Here’ ERA hotel’s tasteful 216 rooms and suites offer a boutique charm where business meets style. Each of our luxury room offers quality amenities, well designed finishing, and mid-century vintage décor. Each room will take our guests out of their frenetic daily routines by designing spaces where one cannot help but to relax. With a varied design, ERA guestrooms incorporate brick wall façades, floor to ceiling windows, harmonious light palettes and hardwood floors. All rooms are handcrafted and with delicate and discrete details show a different face of ERA. Black and white 1950’s photographs of the windy city, elegant automobiles, and images of stylish men and women will be decorating each room creating a sense of reminiscence.

Color Scheme

Categories Room Types Standard Queen Standard Double Grand King Grand Double Era Suite Total no. of rooms

Number of Rooms 141 47 17 7 4 216

Sq. Ft. 335 335 425 425 550

Standard Queen and Double Our ERA Standard Queen and Double guestrooms are 335 square feet of beautiful wooden floors and unexpected antique surprises that take our guests back in time. All 188 Standard rooms offer 38” HD LCD TV with over 100 channels; surround sound system, complimentary WiFi and a working station. The bath products are all Earthology natural and organic plant-based essences. Standard rooms offer lovely views either of the hotel’s courtyard or of the lively Music Row on South Michigan Street. Standard Amenities           

  

Complimentary WiFi IPod Dock Affinia bed mattress Writing desk and with memory office chair Minibar fridge Mr. Coffee coffeemaker Closet with luggage rack In room safe (7.87in x 16.93in x 13.78in) 38” HD LCD Television Telephones with dual phone lines Two bathrobes and slippers Kohler Bathroom fixtures Earthology bathroom amenities Organic cotton towels

          

In room DirectStreams touch monitor Easy to use alarm clock Vivreau water bottles Intelligentsia coffee Iron and Ironing board upon request Newspaper upon request In-room dining menu RFID locks Tasteful antique décor Vintage photographs Dry cleaning and laundry services

Grand Queen and Double Our ERA Grand Queen and Double guestrooms are 425 square feet of true comfort and style. All twenty of the spacious Grand guestrooms offer a 42” HD LED TV, a workstation and intimate living room area. Grand suites are no exception to ERA’s strive for balance, so whether you are staying for business or pleasure, our Affinia queen and king Mattresses assure that a good night sleep is never lost. Grand rooms have both the courtyard and Music Row views depending on the guests’ preference and our availability. Grand Amenities            

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Complimentary WiFi IPod Dock Affinia bed mattress Writing desk with memory office chair Minibar fridge French press with grinded coffee Closet with luggage rack In room safe (7.87in x 16.93in x 13.78in) 42” HD LED Television Sleeper Sofa Two Telephones with dual phone lines Two bathrobes and slippers Kohler bathroom fixtures

           

Earthology bathroom amenities In room DirectStreams touch monitor Easy-to-use alarm clock Vivreau water bottles Intelligentsia coffee Iron and Ironing board Newspaper upon request In-room dining menu RFID locks Tasteful antique décor Vintage photographs Dry cleaning and laundry services

ERA Suite Each of the spectacular ERA Suites is 550 square feet, featuring a king size bed and separate living room for added space and comfort. Aside from working area, the living room, is a unique place of its’ own to sit back, relax and take in the incredible views Chicago’s skyline offers. As for the bedroom, guests are pampered when resting in the Amalfi 800 thread count fitted sheets from Hotel Luxury Collection. The luxury bathroom fixtures from Toto make, along with the many amenities found in this suite, the perfect escape into complete relaxation. Suite Room Amenities              

Complimentary WiFi IPod dock King bed Affinia mattress Amalfi 800 thread count sheets by Hotel Luxury Collection Writing desk with memory office chair Minibar fridge Closet with luggage rack In room safe (7.87in x 16.93in x 13.78in) 42” HD LED Television in living room 38” HD LCD Television in bed room Cabinet with decorative materials in living room Two telephones with dual phone lines Kohler shower, bathtub, and toilet Marble sink with mirror

             

Earthology bathroom amenities Organic cotton towels In room DirectStreams touch monitor Easy to use alarm clock Vivreau water bottles Intelligentsia coffee Newspaper upon request In-room dining menu RFID locks Tasteful antique décor Vintage photographs Sleeper Sofa Howell Wingback linen wing chairs Dry cleaning and laundry service seven days a week*

Additional Amenities and Services Standard Double

Grand King

ERA Suite

Additional Amenities and Services Exercise In-Room Workout Zone For our guests who want to work out at their own rhythm, schedule and space, why not do it in their own room? ERA has made this possible in an easy and fun way. Find plenty of space in the in-room fitness zone, which has a variety of personal exercise equipment. We provide yoga mats, fitness balls and lightweights along with exercise guidance upon request.

Route Builder For our guests who enjoy fresh air, following their own beat, and exploring, we help to plan outdoor exercise as well. We will find the best option for our guests to walk, run or bike around beautiful city of Chicago.

Multimedia Appliances DirectStreams has developed a solution, designed for the hospitality market and thanks to the "DSID Multimedia Local Server" very easy to install and to manage.â&#x20AC;&#x2122; DirectStreamsâ&#x20AC;&#x2122; unique technology architecture creates innovative features for high quality digital video broadcast. They focus on building software solutions for the best in room experience of guests. By customizing solutions to ERA, DirectStreams offers high quality standards of reliability, evolution and innovation.

In room DSID First DSID FIRST developed in partnership with LG, is the first all-in-one hospitality solution that delivers: Television, Video-On-Demand, wired and wireless Internet access through one network and one single device. With DSID First, we will achieve major savings compared to traditional installs while keeping your guest rooms free of unnecessary hardware.

Mobil Devices- DS Touch DS Touch, a revolutionary Cloud Solution using an iPad as the Guest Mobile Terminal. DirectStreams Touch provides an amazing interactive experience to all ERA guests for all famous hospitality services such as information about the property, local attractions, weather forecast, room service menu, etc

Common Areas- DS Signage Digital Signage is to display high-definition videos, slideshows, advertisements or event schedules across the hotel lobby or conference center.

Vivreau Bottled Water At ERA we strive to reduce our impact on the environment one step at a time. This is why we provide Vivreau water bottling system, which dispenses unlimited quantities of environmentally friendly, purified, chilled, still and sparkling water in designer re-usable glass bottles. Its water is sourced locally, eliminating costly transportation, pollution and packaging. Vivreau is purified using an advanced micro-filtration system that eliminates 99.99% of bacteria, contaminants, and additives, while allowing the natural minerals to remain giving clean, clear taste. Guests will find Vivreau water bottles in each of ERAâ&#x20AC;&#x2122;s guestrooms.

Intelligentsia Coffee Serving Intelligentsia coffee in our hotel since it supports a local Chicago business that has great quality and variety of coffee. Intelligentsia prides itself on working closely with farmers around the world to get the purest and tastiest coffee possible.

Affinia Mattress At ERA we never take ‘resting’ for granted, this is why all our 216 rooms will have Affinia Mattresses feature Sealy Posturepedic Plush Sleep System specializing in true comfort. The Affinia Bed offers Sealy's new uni-cased edge support and a maintenance-free one-sided mattress. The ‘Shock Abzzorber Plus’ box spring enhances comfort by amplifying perimeter firmness and extends the life of the product by deflecting weight from the mattress.

Sheets by Hotel Luxury Collection Enjoy the luxury feel of Hotel Luxury Collection's exclusive 800 thread count 100% Cotton Sateen Sheets. Hotel Luxury Collection’s, premier 'Amalfi' collection is designed to meet today's expectation of comfort and luxury. The feel is luxurious and soft to the skin. Each top is finished with two rows of 'Ebony/Black' Embroidery on white for a classic timeless look. The beautiful and generously sized matching pillowcases have a 7cm Oxford border. We also encourage our guests to reuse linen to reduce our impact on the environment.

Room Furniture At ERA we believe in simplistic design. We want to bring peace to our guests rather than overwhelm them with superfluous elements. For this reason all of our furniture and decoration is carefully selected to be subtle yet delicate. The furniture we have selected is all beautifully designed and comfortable, such as our Crate and Barrel sleeper sofas and chairs.

Duro Design Hardwood Floors Beautiful hardwood floor finishes from Duro Design are found in all ERA guestrooms. The natural flooring products are stylish, ultra-resistant, easy to maintain, rich and vibrant in color. Duro Design combines its very own MP765 finishing system with state-of-the-art dyeing and tinting technology to create tough, yet beautiful floors. They have developed durable, commercial-grade, low-VOC, water base urethane finish, which is clear and non-yellowing, extremely wear-resistant, thick and flexible floors.

Bathrooms ERAâ&#x20AC;&#x2122;s bathrooms all have beautiful finishingâ&#x20AC;&#x2122;s with dark wood cabinets, light palate ceramic floor tiles and Kohler fixtures. All our bathrooms are stylish, spacious, and offer a wide array of amenities, which include: bathrobes, slippers, organic cotton towels (face, body, and bathmats) and Earthology beauty products. We encourage our guests to reuse their towels, so that together we can reduce our environmental impact.

Kohler Bathroom Fixtures All bathrooms in ERA are equipped with Kohler bathroom fixtures, which are aesthetically pleasing and sustainable in their design. Kohler has water-efficient plumbing products, they restore iconic buildings, and from polypropylene resin engine covers made from recycled carpet in order to reduce their environmental footprint. ERA will be using WaterSense-labeled faucets that use at least 30 percent less water than standard 2.2-gpm faucets while still meeting strict performance guidelines. Dual-flush toilets

Earthology The bathrooms in each of our guestrooms will have Earthology beauty care products. Aside from their refreshing scents, all of Earthologyâ&#x20AC;&#x2122;s beauty care line is made of natural and organic plant-based essences. They are environmentally sensitive, cruelty-free products that do not contain chemicals made in the United States. Purchases of these bathrooms amenities will be made in bulk, while they will be available for the guests to use through a wall-mounted dispenser in the bathroom. By doing so, not only will we reduce our impact, but we will also significantly reduce our costs and waste.

Nandina Organic Cotton Towels Nandina Organic cotton towels utilize an amazing range of natural fibers from plants. These towels offer our guests an experience that is organic and environmentally responsible. At ERA, we use the Heirloom Collection, which are made of the finest quality of organic cotton that is soft and long lasting.

LED Lighting In addition to our floor to ceiling windows, we want to be as energy efficient as we can, for this we reason we use LED lighting bulbs, which are durable, versatile and longer lasting than incandescent bulbs.

ERA Stationary

Something Old, Something New and Something Borrowed According to an internal survey conducted by USA today, 60% of guests answered that they forget to bring something when traveling. At ERA, we give our guests the opportunity to borrow addition items other than the traditional Q-TIPS, dental floss and toothpaste. Our guests can contact our front desk if they need hair spray, a nightlight, phone chargers, makeup remover wipes, or even jewelry! "The jewelry box" is located in our boutique shop, â&#x20AC;&#x153;The Galleryâ&#x20AC;?. It contains accessories such as earrings, necklaces, scarves, belts and cufflinks chosen by the Chicago designer Laura Lombardi. *Guests can borrow these accessories without a charge, however, a security deposit of $100 to be authorized on their credit card until items are returned, without damage.

HOTEL FACILITIES

Fitness Center – “Get Fit Here” ERA prides itself in taking care of its guests in all aspects of their stays. Our 24-hour, on-site fitness center allows us to take care of our guests by giving our guests the opportunity to take care of themselves. Conveniently located on the second floor of the hotel’s right wing, our Fitness Center is the ideal place to start your day off right or unwind after a long one. Our Fitness Center is equipped with state of the art, eco-friendly fitness equipment along with an adjacent yoga & stretching room facing our inner courtyard. We also offer New Balance brand sport sneakers, shorts, shirts and complimentary water for those guests that want to stay on track but don’t want to travel with their fitness gear. New Balance retail can be purchased in our retail mall. Includes: 

Treadmill



Bench Press



Elliptical Trainer



Leg Press



Stationary Bicycle



Free Weights



Stair-Master



Medicine Balls



Rower



Yoga Mats

Green Series Equipment Staying true to our core values of sustainability, without compromising the guest experience, we have chosen for one of the newest, eco-friendly equipment available commercially. All of our Green Series™ equipment is energy efficient, running on AC motors with Green Technology inverters and UL & NEMA certifications to minimize energy consumption. The wax impregnated and high-resistance polyester running belt drive systems ensure maintenance-free and efficient operations, while the materials themselves minimize our environmental footprint. The Green Series™ equipment has a very low product shipping weight compared to other models and 99% of the equipment can be recycled.

Specifications for the Green Series™ 7000 equipment: 

Full commercial cardio equipment



Easy glide and pull seat adjustments



Embedded 10” touchscreen displays with built-in TVs and easy-to-operate consoles



Oversized comfortable seats

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Ergonomically correct handlebars

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Maintenance-free drive systems

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Easy to install and transport



Comes standard in contemporary matte black finish

 

Integrated iPod®/MP3 input and USB 500 lb. user weight capacity



User-friendly displays

   

Size: 800 Sq. Ft Hours of Operation: 24hours / 7days Price: Complimentary (Hotel guests only) Managed by ERA hotel o Self-service gym o Access with room key only o Assistance available by calling reception

Business Center and ‘The Library’ Located on the lobby level of the South Michigan Wing of ERA, ERA offers an attended (service upon request) business center as well as a multi-function work center. Our business center will be open 24/7. The Business Center at ERA is designed to offer support services for the travelling guest. Our library area is incorporated in our business center to create a relaxing atmosphere. Guests can come and relax and do work or just read a book. Floor plan:

Facilities and Services 

          

Two workstations featuring ﬂat screen iMac Apple Computers Color Laser Printers (Fees apply) Free Wi-Fi and Ethernet access Multi-function fax/copier/printer/scanner Rugged Bill Acceptor for 1’s, 5’s, 10’s and 20’s Credit Card Reader Word processing software – Word, Excel and PowerPoint A completely secure, self-service system Multi-lingual - user's choice of 6 different languages Content Filter for undesirable content Antivirus software Laptop port for Internet use and printing Graphic Designer

              

FedEx and UPS shipping and receiving Office supplies Computer graphics Color manipulation Print production Color printing Color copies Enlargements Transparencies Brochures, Flyers, Menus Signage and Banners Table tents and name tags Dinner place cards Business cards Open 24/7

Meeting and Events Share ideas, inspire others and celebrate special occasions at ERA. Our intimate hub is perfect for your meetings, special events, corporate retreats and weddings located in Chicago’s Music Row. Whether you are planning a company conference or a special celebration, ERA offers beautiful high celling venues, delicate décor and genuine services that make for unforgettable events. With our expert event planning team and packages, we will make sure that all that you need and more is taken care of. ERA’s Meeting and Events team is committed to all our clients from the moment of inquiry through the closing of the event. Arrangements can be made through ERA’s website or by scheduling a meeting with our groups manager and coordinator, who will make sure that your event will runs smoothly and flawlessly. Formal or intimate, every single meeting at ERA is personalized and tailored to exceed our guest’s expectations. Our services include every detail, from room set-up, catering and audiovisual equipment to organizing enjoyable and unique activities for our meeting delegates. Below are the following styles of set-ups:

Boardroom Style

U-Shape Style

Conference Style

Banquet Style

Corporate Meeting Spaces

Audio/Visual Equipment        

72” conference tables Padded chairs Wired & wireless projectors and projector screen 42” flat-panel HDTV Speakerphone Flipchart/easel Free Wi-Fi Stationary box with meeting supplies

Special Events Spaces

Flexible Spaces

The flexibility of our banqueting space facilitates the preparation and operation of any event. With the use of SKYFOLD retractable walls, we convert an entire space into three distinct rooms with their own ambiances. The SKYFOLD Zenith Series will be incorporated streamlined design that matches the design and dĂŠcor of the room. These vertical retractable walls will both facilitate our operations and enhance our meeting facilities for our guests.

FOOD & BEVERAGE OPERATIONS

All Day Dining Restaurant Location: Cermak St. Covers: 90 Size: 2,160SqFt

Cuisine: American Dining Service Type: Buffet and A La Carte Dress Code: Smart Casual

"The Glass Onion” Inspires from the Beatles’ White Album, is located on the ground floor of Cermak Street, where a contemporary American fare can be experienced, is the perfect place for a light breakfast, leisurely lunch or intimate dinner. This menu features an American dining cuisine served with high quality fresh ingredients to create simple culinary creations, whereby the atmosphere transforms with the hours, moving from casually relaxed to subtly elegant in the evening. The Glass Onion embraces the idea of eating seasonally, locally and naturally forming a parallel between the Beatles and this all day dining restaurant, whilst a slight instrumental of “The Glass Onion” plays faintly in the background. "I told you 'bout strawberry fields. You know the place where nothing is real. Well, here's another place you can go. Where everything flows. Looking through the bent backed tulips. To see how the other half live. Looking through a glass onion..."

The Glass Onion reflects on these lyrics by creating a concept whereby comfort food in this non - pretentious environment is brought to our guests where "what you see, is what you get"

DĂŠcor and Interior Design A large show bar with a mirrored counter will stand in the upper right hand corner of the restaurant creating the focal point for diners, while giant baskets of fruit will bring bursts of color to the dining space. This will be a valuable attraction to our local residents in the neighborhood as well as the Chicagoans, creating a focal point for diners and the perfect scene for our guests by hosting an array of gourmet and festive culinary activities.

Target Market Our customers would include hotel guests, conventioneers, tourists, and consumers shopping in the adjacent outlet mall, The Shops at ERA, which is just steps away from the main entrance of ERA. We anticipate an average guest check of $15 for breakfast to $25 for dinner.

Competitive Differentiation Special events, including themed brunches, such as a weekly Sunday Jazz brunch will be hosted, as well as prix-fixe dinners to celebrate national holidays such as Easter, Thanksgiving, Christmas Eve and Christmas Day etc.

Exterior Design Designed using natural, textured materials including stone, wood, leather and glass, the outside patio seating will be decorated with potted plants and a retractable roof during the summers. The interior will have both booths and tables where our guests can be seated.

In-Room Dining In order to maximize the use of our all day dining restaurantâ&#x20AC;&#x2122;s kitchen, In-Room dining will be providing from this centralized kitchen, located on the lobby level, which will be available 24/7 with a limited menu after 11pm. The in-room dining menu offers an array of dishes that have a locally inspired fare. In-house guests can enjoy a decadent cuisine in the privacy of their own room or suite from a light snack to a gourmet meal. A limited menu will be offered from 11pm to 6am for late diners who can then wake up to a leisurely breakfast at The Glass Onion.

Lobby Café Location: Lobby

Cuisine: Café

Covers: 46

Service Type: Self- Service

Size: 1,104SqFt

Dress Code: Elegant Casual

Located in the lobby overlooking the courtyard of the ERA is Interlude, our café offering a wide selection of freshly baked pastries, a full coffee bar, freshly mixed and blended juices. After 4:30pm a small selection of beer and wine is available as well. Live music plays during the weekends for guests to enjoy. The café presents an elegant backdrop for whatever the day or night may bring. This indoor setting in the lobby allows guests to absorb the entire atmosphere of the hotel.

Décor and Interior Design Comfortable seating and coffee tables will be adorned with an organic centerpiece and infuse a natural feel to our lobby café. Our countertop will be inviting with soft bright colors that complement the outdoors. It will feature a large menu in the background along with Interlude’s Menu on a printed chalkboard that will be visible to those who pass by.

Target Market Our potential customers would include hotel guests. We anticipate an average guest check of $25. This includes a cocktail and a small plate that can be shared with other guests.

Competitive Differentiation Our café will provide an intimate setting to sit back and take a moment for you in what can become a very busy day. Whether our guests come from a long day of shopping, or back-toback meetings, we will be conveniently located amongst it all. Our lobby will become the center on the community created at ERA. It is a place where our guests come together and navigate through all the features we have to offer. From our Library to our shopping outlets, our lobby can become a place to unwind. Interlude helps in bringing out lobby together. Interlude features drinks that can be the pick-me-up needed to keep going throughout the day, or it can be an evening glass of wine to be enjoyed on one of our lobby couches.

Promotions Operations Live Music Interlude will feature live music on Weekends. Local Chicago musicians, carefully chosen by the restaurant manager, will play from 6:30pm until 10:30pm. Musical variations to include Jazz, samba, tango, etc and other suitable types of music will help contribute to the ambiance of our lobby atmosphere.

Evening Hour Alcohol served after 4.30pm – 10pm; Guests can immerse into the relaxed elegance of our Lobby. By night, moods lift and music embraces with eclectic music.

Hip Hotels Music A broadcast service that provides 9 channels of bespoke, eclectic music content with difference, integrity, elegance and inspiration to play continuously in the Lobby and Public areas of Hotel.  Easy-to-use scheduling facility for different music styles at different times of the day with zero downtime and 24 hour support line. Monitored by Hip Hotels Music account manager.

Rooftop Terrace & Lounge Location: 8th Floor

Cuisine: Organic and Natural

Covers: 60

Service Type: Bar / Lounge

Size: 2,000 SqFt

Dress Code: Smart Casual

“Bring the outside to the inside” Foraged is a life – style inspired lounge. Projecting from the 8th floor over ERA’s courtyard features the rooftop terrace and lounge offering a menu focused in organic and natural cuisine. Simple and small dishes made with fresh local ingredients, all of them designed carefully to provide a harmonic experience. Foraged will be elevated projecting from our hotel featuring an idyllic outdoor rooftop vertical garden where hotel guests can savor on a mindfully crafted fare. Guests can also sip onto the refreshing cocktails while enjoying the feeling of summer. As the day progresses, guests will transcend into the calmness of the evening where vintage wines tantalize their palette under the retractable fabric awning. This outdoor rooftop terrace will be separated from an indoor lounge with glass walls. As the night falls, this simple lounge will transcend into an elegant playground for the nocturnal.

DĂŠcor and Interior Design The idea and concept of Foraged is that the guests are transported into this oasis that nobody expects and they experience the bringing of the outside inside and the inside outside. The vertical herb garden will enhance the backdrop of the city skyline while nature and organic materials define the rest of the rooftop garden space. Foraged is an experience where you can come to the same place four times and feel a different experience every time.

Exterior Design The floors, walls and ceiling are designed using limited natural materials like wood. The elevated terrace will have a retractable fabric roof during the summers, promoting outdoor seating that will increase the number of customers served during service hours, especially when the weather cooperates. The En-Fold Retractable Fabric Roof by Uni-Systems is a high performance retractable tensile structure designed specifically for Foraged. Redefining the line between indoors and out; EnFold retractable fabric roof maintains Foraged open sky when weather permits or a protective cover in the case of inclement weather.

En-Fold roof can greatly reduce wind in many instances by creating a pressure pocket in the semi-enclosed space, thus causing the wind to go up and over the structure. Excessive sunshine will almost always prevent customers from sitting outdoors, unless shade can be provided. En-Fold allows from 5% to 40% light transmission and effectively blocks 100% of the sunâ&#x20AC;&#x2122;s harmful UV rays.

Sustainability Retractable Roof En-Fold is a lightweight structure that covers large spaces with minimal amount of material. The standard Tenara fabric membrane material has a 25+year life expectancy and is 100% recyclable. The all-aluminum structural members are also 100% recyclable. Blurring the lines between indoors and out, En-Fold allows for natural ventilation and day lighting, to reduce the load on HVAC and electrical systems. En-Fold is also an excellent source of shade and can help to reduce thermal gain in adjoining structures.

Target Market Our customers would include hotel guests, conventioneers, tourists, and consumers shopping in the adjacent outlet mall, The Shops at ERA. The space will also be the location for special events such as rooftop, weddings and cocktail receptions, release parties, networking events or corporate parties. We anticipate an average guest check of $20-$25 which includes drinks and small plates.

Competitive Differentiation The outdoor rooftop terrace at Foraged will be open only during the months of Spring and Summer, while the lounge will remain open 12 months a year. Upon request, weddings, cocktail receptions and sit down dinners at Foraged can be arranged. This space will also be the ideal location for special events such as release parties, networking events or corporate parties. We will have a beautiful skyline view while maintaining an intimate natural feel with our vertical garden that is sure to be memorable for any occasion.

Events The outdoor rooftop terrace at Foraged will be open only during the months of Spring and Summer, while the lounge will remain open 12 months a year. Upon request, weddings, cocktail receptions and sit down dinners at Foraged can be arranged. This space will also be the ideal location for special events such as release parties, networking events or corporate parties. We will have a beautiful skyline view while maintaining an intimate natural feel with our vertical garden that is sure to be memorable for any occasion.

Reception Setup at Foraged Rooftop Terrace

Signature Restaurant Location: S. Michigan Avenue Seats: 90 Size: 2,565 SqFt

Cuisine: Contemporary American Gastro-pub Service Type: Lunch & Dinner Dress Code: Elegant Casual

Located on our retail side, The Shops at ERA, on South Michigan Avenue, Crafted will feature an array of craft beers both locally and nationally from the ‘originals’ to the ‘exaggerated’ to the seasonal ‘revisionists’ on to the ‘extremists’. Guests can pair their beer with the tempting menu featuring classic signature dishes that is homage to the American 1950’s. Guests can also enjoy this upscale comfort food while cheering on their home team, on the projector while sipping the latest brew.

DĂŠcor and Interior Design Featuring a dark oak bar with metal and leather chairs, our bartenders will pour each sip into a frosty mug. The subtle industrial dĂŠcor with dark metal fixtures; steel, wood, leather and brick will give an edgy rustic feel giving a reminiscent of the perennial era. For a more intimate feel, guests can walk the wooden tavern steps extending to the second level dining room that has warm lighting that host comfortable leather lounges. There, guests can absorb the atmosphere that is unique and cheery and look down to the first level.

Exterior Design Place

Target Market Our customers would include; hotel guests, conventioneers, tourists, and consumers shopping in the adjacent retail outlet mall, The Shops at ERA. Our guests will be those who are attracted to something edgy and new, but with comfort food staples done right. We anticipate an average guest check of $25 for lunch or $35 for dinner.

Competitive Differentiation Crafted is not the average pub. Our gastro-pub serves unique beers that are local heroes and national favorites. The food not only compliments these beers and spirits, but also takes dishes from the 1950’s and upgrades them with fresh seasonal ingredients and modern cooking styles. Crafted will offer feature an array of craft beers both locally and nationally from the ‘originals’ to the ‘exaggerated’ to the seasonal ‘revisionists’ on to the ‘extremists’. Guests can pair their beer to complement its diverse menu as well as tiered beer pairings for its tasting menu. Below is a Brandscape of the types of craft beers we will offer:

Promotions Operations State of the Craft Beer Craft Beer is reshaping the way beer is marketed from “brand” to “style” like wine. This is becoming the more important aspect of consumer choice, especially among our guests who will be staying at ERA, and the consumers shopping at The Shops at ERA Beer Mixology and “BEERTAILS” Crafted will introduce a small beer mixology course during the weekdays to draw in the local residents. Crafted’s very own Beer Mixologist will talk about which beer they will be using that day, it’s elements, and create a cocktail for everyone to sample. This cocktail will then be featured for the remainder of the week as Crafted’s “Mixology Special”. For those non-beer drinkers, this will be something new to try out.

“BEERTAILS”

“Three Breweries – Three States – Three-Beer Cocktails”

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RETAIL & OUTLET MALL

Retail The Gallery Our hotel will offer a retail shop on our ground floor located in the lobby. You will be able to access this store from both entrances to our hotel lobby. The Gallery will offer hotel amenities such as toiletries and basic travel necessities that our guests may have forgot to pack or are in need of during their stay at ERA. The store will also offer Chicago memorabilia such as clothing, maps, and gifts related to Chicago and its history.

Pop-Up Retail Store ERA’s Pop-Up Retail store Fits in with the “Entertainment Economy, the Experience Economy, and the Surprise Economy” surprising consumers with temporary performances, giving them something that can be perceived as exclusive, discoverydriven and ‘get it while it lasts'.

The Shops at ERA The retail building will be in the shape of a â&#x20AC;&#x153;Câ&#x20AC;? and will help create an open and widespaced atmosphere between the two properties.

Below is a Brandscape to show the type of retail outlet stores The Shops at ERA would lease their space to:

Promotions at The Shops at ERA

COMPETITIVE SET

Competitive Set

Property Name

Location

# of Rooms

Proximity to ERA

Market Distribution %

127 W. Huron St Chicago, IL 60654

Room Rack Rate

Facilities & Amenities

 221 Opening February 2014

★★★★★ 3.3 miles

Age of building

N/A

$159.00 to $239.00 (Suite room available)

    

660 N. State St Chicago, IL 60654

 216 May 2008

★★★★★ 3.1 miles

55 E. Ontario St Chicago, IL 60611

27.1%

3.3 miles

1301 N. State Pkwy Chicago, IL 60610

3.9 miles

   

297 $183.00 to $259.00 (Suite room available)

  



37.2%

 285 June 1926

★★★★★



 

June 1985 ★★★★★

$189.00 to $500.00 (Suite room available)

35.7%

$185.00 to $215.00 (Suite room available)

    

24 hour Fitness Center Rooftop Lounge Onsite & Offsite catering service Meeting Space Flexible Banquet Hall Spa 24 hour Fitness Center Private Business Meeting Space Flexible Banquet Hall Valet Parking Rooftop Lounge Spa Room Service 24 hour Fitness Center / SPA Valet Parking Business Lounge Board Room / Small Private Meeting Space Flexible Ball Rooms for wedding, and events 24 hour Fitness Center Business Lounge ‘Library’ Private Meeting Space Banquet & Event Hall Rooftop Lounge Valet Parking

Our Competitors Dana Hotel is a luxury 4-star boutique hotel, which has been designed for living; a boutique hotel and spa that offers an artful contrast that balances the beauty of natural elements with state-of-the-art technologies, making its guestrooms and suites ideal for guestsâ&#x20AC;&#x2122; lifestyles. Natural, sustainable woods, warm earth tones and flawless details make Dana one of the more unique hotels Chicago has to offer. Their overall meeting space is 8,900 sq. ft. and they have an additional 1,200 sq. ft of multi purpose room that can accommodate up to a 100 guests. Dana has a signature restaurant called Freestyle Food and Drinks which is located next to the hotel and is open for breakfast, lunch and dinner. Additionally, Dana has a rooftop lounge offering in-house guests a social space with refreshments. Their target market is 70% business and 30% leisure travelers. All of these aspects make Dana Hotel a very similar property to ERA in terms of facilities and amenities.

The James is a 4-star luxurious chain boutique hotel, remodeled in 2011, consisting of 297 guestrooms of which 106 are suites. It has 7,000 sq. ft. of meeting space for up to 300 guests, a business center, a fine dining restaurant, Prime House, and a bar named J Bar. It also hosts a 2,000 sq. ft. fitness center for their guests. The James distinguishes itself by providing guests a one-of-a-kind hotel experience by implementing art in every aspect of its design. This takes the guest through a visual and luxurious journey during their stay. This unique incorporation of art and history attracts a different target market aside from conventioneers. As a hotel that also provides full-services, while at the same time offering them a taste of Chicago and the local area, The James is a competitor of ERA.

The Godfrey, expected to open February 1st 2014, is an independent 4-star boutique hotel with a unique style and design. Its cubist influenced façade and chic accommodation will offer guests an unforgettable experience. The Godfrey offers all of the necessary guest amenities with a fitness center, spa, signature restaurant and rooftop lounge. It can accommodate up to 1,500 people in their meeting and events spaces. This hotel is designed to accommodate conventioneers; however it mainly targets guests that are looking for a stylish and unique experience unlike the typical 4 and 5-star properties. Someone that is looking for a hotel with its own identity would want to stay at this hotel. Offering its guests comfort, style and class, The Godfrey will be a competitor of ERA once it opens.

Main Competitor PUBLIC Chicago is a 4-star boutique hotel, remodeled in 2011, with 285 rooms. It has a total of 8,800 sq. ft. of meeting spaces divided into 12 rooms, which can accommodate between 10-180 guests. It also hosts a business center, fitness center and dining outlets. The Pump Room is the concept restaurant of PUBLIC, which has a 30’s and 40‘s theme with a modern twist. Although this hotel targets a higher-end market segment, it is still very similar in terms of the amenities and facilities they offer. PUBLIC’s theme is more classical with a modern twist, which makes them a true competitor as they are attracting the same type of guests as ERA. Their facilities and amenities such as their business center, fitness center and guestrooms make it very similar to our hotel as well. PUBLIC’s market segmentation is 70% business and 30% leisure, which is similar to ERA’s segmentation. Lastly, PUBLIC’s main target focus is not on the convention market as it has un-accommodated demand during the convention season. PUBLIC has differentiated itself from the other convention hotels by additionally targeting a niche market where there is a demand for a unique and contemporary experience. Focusing primarily on guest experience and lifestyle, PUBLIC is our main competitor. 83

PUBLIC vs. ERA Facilities & Amenities

PUBLIC Chicago

ERA

Hotel Type

Boutique

Hotel Rating

★★★★★

Rooms

285

213

# Room Categories

Event/Meeting Space

8,600 sq. ft.

4,320 sq. ft.

Member of LHW

✗

✔

Retail Stores

✗

24/h Fitness Center

✔

Library Lounge

✔

24h Self-Service Business Center

✔

Rooftop Lounge

✔

Valet Parking

✔

Concierge

✔

HD LCD TV

✔

iPhone/iPod Dock

✔

Personalized Online Meeting Planner

✔

Complimentary Wi-Fi

✔

24/h Room Service

✔

Limited menu after 11:00p.m

Outdoor Terrace

✔

Best Available Rate guarantee in hotel website

✔

Pet-friendly

✔

✗

Sustainable Practices

✗

✔

Onsite Parking

✗

✔

Competitive Map

Distance of 3.1 mi, 12 Min Drive

Distance of 3.3 mi, 12 Min Drive

Distance of 3.9 mi, 14 Min Drive

Distance of 3.0 mi, 11 Min Drive

Positioning Chart The following chart shows ERAâ&#x20AC;&#x2122;s positioning in comparison to its main competitors based on their characteristics and service level.

TRENDY

< 1 MILE FROM MCCORMICK PLACE

5+ MILES FROM MCCORMICK PLACE

CONSERVATIVE 86

Food and Beverage Main Competitors Signature Restaurant - “Crafted” Capacity/ # of Seats

Cuisine

Ambiance

300

AmericanClassic

American

Intimate Contemporary Intimate Rustic

Capacity/ # of Seats

Cuisine

Ambiance

Price

Au Cheval 800 W Randolph St. Chicago, IL 60607

American Modern Classics

Intimate Contemporary

$15-$25

Nellies 2458 W Division St. Chicago, IL 60622

Puerto Rican

Intimate Rustic

$15-$20

The Gage 24 S Michigan Ave, Chicago, IL 60603 The Sable 505 N State St, Chicago, IL 60654

Price $40-$50 $45-$60

All Day Dining - “The Glass Onion”

Rooftop Garden and Lounge – “Foraged” Capacity/ # of Seats

Cuisine

Ambiance

Price

The Terrace at the Conrad 521 N Rush St., Chicago, IL 60611

AmericanLow-country

ContemporaryLongue

$35-$45

The Terrace at the Trump 401 N Wabash Ave, Chicago, IL 60611

American

ContemporaryBar-Longue

$80 - $110

SWOT Analysis After analyzing our competition and our position in the market, we have identified a series of strengths & opportunities as well as weaknesses & threats.

SALES FORCE

ERAâ&#x20AC;&#x2122;s Sales Force Sales & Marketing Director

PR & Communications Manager

Market Research Manager

Regional Sales Manager

Sales & Marketing Director The Sales & Marketing Director will be in charge of running the day-to-day business while supervising all the managers. Establishing the yearly sales objectives for each different region, it will be his/her responsibility to maintain sales volume, product mix and selling price by keeping current with supply and demand, changing trends, economic indicators and competitors. The Sales & Marketing Director will report to the CEO.

Marketing Research Manager The Marketing Research Manager at ERA will be in charge of instilling a marketing ethos throughout the business, while researching and reporting on external opportunities. He/she will understand both current and potential customers; assist the CMO in order to develop the marketing strategy and plan. He/she will make customer focused decisions. The Marketing Research Manager will report to the Sales & Marketing Director.

PR & Communications Manager The Public Relations & Communications Manager will be in charge of main client groups, determining the best way to communicate our message to them. He/she will write interesting and, at the same time, effective press releases, prepare information for media kits and maintain ERAâ&#x20AC;&#x2122;s web page up to date. The PR & Communications Manager will report directly to the Sales & Marketing Director.

Regional Sales Managers The Regional Sales Managers will be in charge of directly supervising the work of the sales associates from the different regional sales teams and making sure they accomplish their goals, which have been set by the Sales & Marketing Director. They will report directly to the Sales & Marketing Director.

LHW’s Sales Force Directors of Business Performance (DBPs)

Distribution Support Services (DSS) Account Manager

Quality Control Department

Distribution Support Services (DSS) DSS offers global support and ensures that ERA can fully utilize LHW’s distribution services and programs. The DSS team is comprised of 11 regional account managers, located in New York, Orlando, Mexico City, London, Paris, Milan, Frankfurt, Singapore and Sydney. Their responsibilities include training ERA in the Central Reservation System (CRS), managing rates, availability, and descriptive hotel information. Additionally, they will distribute and review the Scorecard Report, a quarterly production report, with your hotel. Distribution Support Services (DSS) Account Manager Conducts a database audit, which includes information on rates, availability, positioning in GDS and the Internet. Such audit will outline key areas for improvement and distribution optimization. Quality Control (QC) QC plays a crucial role in ensuring the accuracy of ERA’s implementation workbook. The team validates and reviews the implementation workbook before creating the ERA’s “shell” in the central reservation system. ERA will be trained so that our staff will have the necessary skills to load rates and hotel content prior to going “live”. QC works closely with DSS to perform several audits before opening your hotel’s availability. Reservations Once the hotel availability is open, the reservation team will need to be educated about ERA through information gathered by the LHW internal staff. ERA will conduct a hotel presentation within the first 3 to 6 months of activation to further familiarize the LHW staff about the hotel and destination. 91

LHW Services provided to ERA Sales     

25 Worldwide Sales Oﬃces - 1 sales office located in Chicago Corporate Sales Force Group Sales Travel Industry Sales Leading Events

Marketing & Communications  Branding & Advertisements  Loyalty Marketing, Leaders Club  Strategic Partnership  Internet Marketing  CRM/Database Marketing  Public Relations  Events & Corporate Meetings  Marketing Programs; Leading Green

Reservations & Distribution Services  “LW” GDS Chain Code  12 call centers  Internet Booking Engine  Mobile IBE/Facebook booking Widget  CRS/PMS Interface  Full-Service distribution, Quality Control, Support Helpdesk  Travel Agency Commission Management  Online Travel Agencies

Operations Support Services  Guest Satisfaction Surveys (GSS)  Social Media Feedback Tool  Membership Account Management  Quality Control Support Helpdesk  Leading Quality Assurance (LQA)  Leading Learning Institute (LTI)  Smith Travel Research Partner (STRP)

LHW - An extension to ERA’s Sales Team Global Sales Offices LHW is an extension to ERA’s sales, marketing and distribution departments by providing global, luxury hotel sales, and marketing and distribution expertise along with a technology platform to help ERA capture and optimize business potential. ERA’s nearest LHW Sales Office: Chicago 333 North Michigan Avenue, Suite 1816, Chicago, IL 60601-3907 Unites States

Database LHW maintains a database that contains the names and profiles of over 850,000 influential travelers throughout the world including over 70,000 travel agency contacts, corporate travel planner and meeting planners. Additionally, LHW maintains a proprietary database containing more than 12,000 worldwide qualifies group planners.

Corporate Sales Force LHW’s corporate sales force consolidates ERA’s rate negotiations with major corporations, travel management companies, travel agency consortia and American Express Fine Hotels & Resorts on behalf of ERA.

Group and Travel Industry Sales LHW’s group sales department is dedicated to increase ERA’s group revenue through corporate accounts, third-party meeting planners and associations. The group sales team will therefore provide ERA with services including organizing and facilitating site inspections, targeting key meeting and event planners globally via email campaigns and complimentary LHW e-newsletters.

Core Marketing Programs LHW will provide ERA with compelling promotions with no additional charge, designed to increase market share and enhance a new and existing customer base. Core Marketing Programs will be featured as Leading Exclusive Oﬀers. A targeted approach from LHW will identify the top revenue producing rate plans (Leading Breakfast Inclusive, Leading Suites) along with brand-enhancing packages that highlight the identity of ERA. 93

LHW and ADR LHW has consistently outperformed its competitive set in terms of ADR delivered to its member hotels via the GDS. The LHW code accounts for close to 25% of the total market, $305 million, in comparison to all six-luxury hotel groups together, which totals $904 million.

ERA benefits from all this, however it is important for ERA to also have itâ&#x20AC;&#x2122;s own sales teams in order to attract our target market. We will divide our sales teams into two different categories: Domestic and International. As well as these two teams, who will work in their different regions in order to attract both group and FIT business, we will also employ a sales associate in charge of selling our hotel for weddings and events.

Domestic Sales Team With 75% of our target market being domestic, we will need sales representatives to target the major US regions. Two sales associates will be in charge of the U.S. market; one in charge of the Western and Central regions and the other in charge of the Northeast and Southern regions.

Objectives of Domestic Sales Team  

Achieve the objective of 75% of our target market from these markets. Reach the sales objective assigned by the sales & marketing director.

 Create a base of domestic guests.

International Sales Team Along with LHW’s sales team, ERA will have an international sales associate in charge of tapping into international markets. He/she will be in direct contact and transmit our marketing message to the target market of the following regions:

EUROPE NORTH AMERICA

ASIA

(Excluding domestic)

SOUTH AMERICA

Objectives of International Sales Team:   

Achieve the objective of 25% of our target market from these markets. Reach the sales objective assigned by the sales & marketing director. Create a base of international guests.

Events Sales Associate Our sales associate in charge of weddings and events will have the task of promoting and bringing this type of business to our hotel. This sales associate will report directly to the PR & Communications manager.

ERAâ&#x20AC;&#x2122;s Marketing Objectives Our marketing efforts focus on a series of interconnected objectives that will lead to our overall financial goals.

Establish our brand in the market Create & control our social media presence

Increase rooms sales revenue

FINANCIAL GOALS Communicate our brand values

Establish long-lasting relationships with our guests

Establish our brand in the market Using our marketing and advertising tools during our pre-opening period and onwards, along with the LHW services that will be an extension to our Sales Team, we will aim at being identified as a company that provides value for money and encompasses lifestyle into its brand. In order to measure our brand recognition we will use surveys and feedback from our guests.

Create and control our social media presence Taking into account the profile of our target market, social media will be a key aspect for our marketing initiative. To develop a strong presence and build lasting connections through social media will be a key marketing objective.

Communicate our brand values Our team will be in charge of transmitting our values by providing adequate information that will not lead to misinterpretation. With our target market in mind, we will tailor our messages to resonate with our audience.

Establish long-lasting relationships with our guests Our marketing team will develop strategies in order to establish relationships with our guests with the objective of guaranteeing we are their first option the next time they visit Chicago; therefore, creating an emotional connection between our guests and ERA.

Increase rooms sales revenue To augment our profit from year to year we will aim at increasing our occupancy at the same time as increasing the revenue we receive from our room sales. Since this cannot be measured in our first year of business, the initial year will set a benchmark for the following years.

Pre-opening Strategy In order to prepare to position ERA before opening, we will have to apply a series of different pre-opening marketing tactics. It is essential that our target market is aware we exist even before we have opened our doors for business. The following strategies will be put in place before ERA’s grand opening: Hotel Website: Our website will go live 12 months prior to our opening day. Online Travel Agencies: OTAs, such as Expedia, Travelocity and Orbitz among others, must go live 3 months prior to the opening day for sales. Social Media: ERA will be very active in its social networks from before the opening in order to attract guest’s attention and bring about interest. Implementation of Revenue Management: 12 months prior to the opening day we will start segmenting strategies, demand calendars, pricing grids and elaborating competitive rate surveys. This is very time consuming, but essential in running an adequate strategy. Reservations Call Center: Although most of our bookings will come from other sources, it is important to still maintain this sales channel alive in order to be available to all potential guests. That is why we must have our reservations call center up and running 3 months prior to the hotel opening. Setting up Systems: We will have purchase our PMS system, CRS, CRM and all other systems needed for our property between 6 and 3 months prior to our opening. Team recruiting: In order to have well-prepared and trained staff we need time. This normally would be 2 years in advance and never less than 18 months prior to the opening day for our executive positions. Our staff must be prepared and well trained. LHW - LQA Executive Review Prior to the opening date, ERA will host a LHW Executive Review, allowing LHW employees to experience the hotel. ERA’s General Manager will be available for tour and discussion of the following: Background; Location; Ownership/Management; Sales and Marketing plan; Hotel Facilities. During this, an LQA inspection will be scheduled and ERA is to meet a minimum score of 85%. Soft Opening: ERA, a LHW Member, will create an event for a soft opening. This will also be a great opportunity to take press and some industry bloggers on a tour of the hotel without it being crowded and under the pressure of daily operations. This will give us a chance to have press releases regarding ERA’s opening published. It is also a chance to bring corporate deciding decision makers and treat them well in order to achieve business in the future. 98

Sales Channels

HOTEL & LHW WEBSITE

35%

34% ERA & LHW SALES TEAMS

25% DIRECT RESERVATIONS (Walk-ins & call reservations)

Hotel Website: We expect to receive 35% of our reservations through ERAâ&#x20AC;&#x2122;s and LHWâ&#x20AC;&#x2122;s website. Our best price guarantee on our web page will make us reach this 35% and we hope to increase it in the future once we become a recognized brand. Sales Teams: Our sales associates and partners at LHW will be our second biggest sales channel, bringing 34% of our business in. Both our domestic and international teams will accomplish this through group reservations as well as through individual traveler reservations. We expect LHW reservations team to contribute 20% of our total reservations. OTAs: In our first years of existence we will depend more on online travel agencies than we would like to, but this will decrease over the years. Direct Reservations: We will have very few walk-ins due to our location and we do not expect to have a big demand of call reservations due to technological advancements.

Marketing Budget At ERA, we are aware that as a company that has not yet been consolidated, in the first years of life of the property a bigger investment towards marketing ourselves will be needed in order to place us in the market. One of the biggest advantages, as well as many others, of having the marketing tools of LHW, is that they will give ERA the availability of reaching out to a wider targeted audience and reduce the budget of our internal Sales & Marketing department. In order to run an efficient team at ERA that works independently as one, but has to at the same time coordinate with the team at LHW, we will need to put in measures that are effective in order to attract our targeted markets to come and stay with us. Special attention will be provided in measuring the efficiency of the different marketing tools that will be used, in order to understand how our customer awareness is being transmitted. Our ability and willingness to change on the fly if necessary will also give us competitive advantage with all the different avenues to promote ERA. According to the detailed research done and due to the extensive Marketing plan that we have put in place at ERA, we will be investing a total of $1,166,500 in our marketing budget. This budget has been calculated by investing $5400 per room, per year. A big part of our marketing strategy will be concentrated in our social media tools, which will be directed by our Public Relations Manager who will be in charge of coordinating all different social media tools that are at our disposal. The intern or trainee working with the manager will be helping him or her in order to respond to any guest message and making sure that our message is reaching our targeted audience. In order to establish the budget for the department we will have to take into account the following matters as shown on the table on the right side.

100

Sales Forecasts When forecasting the room revenue for ERA in its first year of existence, and on a month-to-month basis, we have taken into account our predicted occupancy and our ADR of $300. Our predicted room revenue for the year is of $17,656,704 and our predicted average occupancy for the whole year will be of 75%.

The following chart shows the room revenue that we will expect to generate each month:

This occupancy will be divided in the following way into our different customer segmentation:

101

MARKETING TOOLS

102

Online Marketing We believe that technology is the cornerstone of business growth. Whether it means new tools for maximizing efficiency, new platforms for reaching out to potential customers or new resources for building professional networks; digital innovation is a boom for businesses of all shapes and sizes. Social media and the recent proliferation of mobile devices have proven particularly beneficial for the hotel industry. It provides boutique hotels like ERA an unprecedented opportunity to connect with guests in every way possible.

Inspiring loyalty even before our guests walk through the doorâ&#x20AC;Ś

Search Engine Marketing (SEM) In general, the higher and more frequently you are ranked in the search engine result page, the higher the chances are of getting more visitors from search engine users. We therefore focus on Search Engine Optimization (SEO) by adjusting and re-writing our website content to achieve a higher ranking in search engine results, in order to create more traffic on our website, as we believe that it will increase online bookings.

E-mail Marketing ERA will use e-mail in the form of ads, request business or solicit sales as a commercial message to approach existing and potential guests. This is aimed at building loyalty, trust and brand awareness. We plan to do this by sending e-mails to our guests and partners from our database to enhance the relationship and encourage loyalty and repeat business as well as acquire new business.

103

Referral Marketing We will use the referral marketing method to promote our product and services to new guests through referrals. By applying appropriate strategies we can influence referrals such as ‘’word of mouth’’. By tracking guest’s behavior online, through the use of web browser cookies, and offline, through traceable business cards, we will be able to anticipate the guest’s needs. Tracking and influencing the spread of our brand by rewarding our guests to promote our brand to others, the return will greatly outweigh the cost of this system.

Content Marketing The importance of content marketing for us is to communicate with guests and clients rather than selling directly to them. We will deliver consistent ongoing valuable information in media sharing and content publishing in the form of: 

News



Info graphics



Video



Articles



eBooks



Photos

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105

106

ERA’s Website The ERA website will be designed to be user-friendly and appealing, which will stimulate curiosity and interest in exploring the website further. On the landing page, a simple display of changing images of our hotel will move along the screen. The reservation mask will be found on the top left corner and linkage to the reservations page will be visible from all pages, making for easier access. A navigation panel will be provided on the top of the webpage with drop sub-menus to other relevant pages: Activities, Rooms & Rates, Meetings & Groups and About Us. On the bottom of the page we will provide our contact information with an email acquisition link to expand our customer database and strengthen the e-marketing. The short-term goal of ERA’s website is to turn most of the “lookers into bookers”, which will generate approximately 35% of hotel reservations. The PR & Communications Manager will be in charge of updating the webpage regularly. The use of keywords that are relevant to our target audience will allow for more activity on the site. By doing so, our website will be on top of the search results as a sponsored link.

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Leading Hotels of the World Promotional Tools LHW Websites LHW.com LHW Website featuring a dedicated page for ERA in 5 languages.

Leading Extranet Portal Contains up-to-date news and information, sales, marketing & advertising opportunities etc.

Leading Quality Assurance (LQA) A full-service quality inspection organization providing ERA with assessment programs.

108

Guest Satisfaction Survey (GSS) Platform Designed to measure ERA’s overall guest experience, providing real online data tools to help ERA assess and refine all aspects of the operations.

The Ambassador Blog Leading the Way http://blog.lhw.com/ The Leading Hotels of the World (LHW) blog tells all kinds of one-of-a-kind stories: Authentic, unique and inspirational. And remember, “Not all those who wander are lost”

Leading Link Mobile ERA will have two types of mobile compatible booking engines. One will be provided through the hotel and another one through LHW. These will be mobile compatible booking engines, which will work with all mobile platforms including iPhone, Android, Blackberry, Windows7, Nokia Symbian, and others.

Leading Link Facebook Through LHW, ERA will benefit from an option of adding a booking “widget” to the LHW Facebook page. The widget allows clients to check Era’s availability directly from Facebook. Leading Hotels will provide all the necessary codes needed to implement the widget.

Loyalty Program - Leaders Club Leaders Club oﬀers deeply discounted rates during closed-user “Private Sales” that take place about four times per year. ERA will coordinate with LHW for special rates on behalf of Leaders Club members. These oﬀers are communicated monthly in our ERA Leaders Club Newsletter, “Liaisons”. Leaders Club members are LHW’s most highly valued customers. They spend, on average, 30% more than our other customers.

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Membership is offered in two tiers – Leaders Club and Unlimited: Leaders Club Benefits: Members are entitled to: • A one-category room upgrade on published rates (based on availability) • Early check-in and late check-out (based on availability)  • Welcome amenity  • Complimentary internet access • Daily complimentary continental breakfast for two  • Access to one-of-a-kind, specially-created travel experiences • Invitations to Leaders Club events  • Hometown Benefits in participating cities  • The chance to earn a free night after 5 stays

Unlimited Benefits: In addition to all Leaders Club benefits, Unlimited members enjoy: • A guaranteed one-category room upgrade on published rates (ERA suites remain at the discretion of ERA) • Guaranteed 4:00 pm late check-out  • An additional customized benefit on-property  • A dedicated personal concierge • Complimentary airport VIP lounge access  • Family Plan – 3 Access Memberships included  • The chance to earn a free night after 4 stays  • Ability to redeem up to 3 Reward certificates at one time for one stay

Membership Directory ERA will be included in the Directory of The Leading Hotels of the World with a full page, four-color entry with a worldwide circulation of 650,000 copies. It is printed in English, Japanese, Chinese, and Italian. It will be displayed in each of ERA’s rooms, the business center and ‘The Library’.

Advertising LHW’s Creative launch of the “All Kinds of One-of-a-Kind” campaign communicates the breadth and scope of the LHW brand and highlights the individuality and excellence of ERA. ERA as a LHW hotel member can participate in all major travel and lifestyle magazines such as Departures, TimeOut Chicago, Condé Nast Traveler, and many more. 110

111

Business Package Promotion

Eco-Friendly Discount

112

Pre-opening Adverts

113

Leading Hotels of the World Package for ‘Leaders Club’

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Our ‘Xplor Chicago’ Package includes:   

Complimentary breakfast (2) Music Row Tour or Beer Tour Late check out

This package will not only promote our hotel to visitors, but will also draw attention to the new entertainment district – Music Row. By advertising the hotel to leisure guests and promoting the neighborhood, we will receive both hotel and non-hotel business.

Our ‘Hello, Neighbor’ Special provides guests who reside or work in Chicago to receive a 15% discount off our best available rate. This special will be beneficial for both the hotel and our neighbors. By providing a discount for people living or working in Chicago, we can bring local business to our hotel, restaurants and shops.

115

Leadings Partners LHW works with the following partners:

Among the services ERA will benefit from are: 

 

Screening and evaluation of individual journalists’ request for accommodation. Based on a careful screening of journalists’ credentials, productivity, and media outlets, recommendations are made regarding the value of oﬀering complimentary or reduced-rate accommodation. Providing journalists worldwide with assistance on story angles, news and information on ERA. Management of the Leading Hotels Image Library on www.LHW.com/press. This is heavily promoted as a central resource for the media, travel professionals and luxury partners.

LHW’s Communication Tools Feature Press Releases Categorizes and releases ERA based upon a variety of themes used to trigger story lines for writers and to make them aware that there are many faces to The Leading Hotels of the World. Leading Exclusive Oﬀers Press Releases Issued in support of Leading Exclusive Oﬀers, the LHW core marketing programs will increase market impact of the initiatives and to provide added exposure for ERA. 116

New Member Alert Releases ERA will be activated in the reservation systems of The Leading Hotels of the World. Seasonal OďŹ&#x20AC;ers Releases Periodic media updates with information on seasonal promotions available at ERA. Provided Distribution Channels Powerful global brands and distribution channels such as American Express, Delta, SpaFinder, Singapore Airlines, Lufthansa will generate incremental business for ERA.

Mobile Linkage & Application With growing availability of mobile applications and web browsing on smartphones, ERA will have a separate landing page for mobile phones, designed for smaller screens with simplified content. ERA will also create a smartphone application to provide easy access and personalized user pages for our guests, where they can receive their room numbers and radio frequency identifications (RFID) for their room keys for express check-in.

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Social Media Social media is a great way to reach out to our guests on a personal level, so it is important for ERA to stay current with the new social media trends. Our PR & Communications Manager is in charge of all the social media provided directly by the hotel itself. He/she will update them accordingly and enter new platforms if he/she deems it necessary.

Facebook ERA will use Facebook to encourage guest interaction. By joining the conversation and engaging with our guests, we will better understand our guests and their needs. We want their voice to be heard so they feel engaged and become our voice by recommending us to others, leading them and others to return. By putting ERAâ&#x20AC;&#x2122;s information in an attractive way is critical to turning social media hotel visitors into social media hotel bookers.

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Twitter Twitter is based on real-time communication, and because hotel stays are also time-sensitive, there is a natural fit between Twitter and how we market ourselves. By having an impeccable twitter profile, we can use this social platform as a tool to hear what our guests are saying about us, join the conversation or even provide promotional packages in exchange for their Twitter information. This will create a gateway for us to keep track of our guestsâ&#x20AC;&#x2122; wants and needs, maintaining a closer relationship with them.

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Travel Websites A satisfied guest is a returning guestâ&#x20AC;Ś Although we encourage direct bookings on our webpage with promotional offers, we realize the importance of third parties in attracting business. The wide network and trust these travel agencies have established is an essential tool to bringing leisure guests to our hotel. By establishing a partnership with these third parties we can promote ERA to a broader audience. This also gives us the opportunity to use guest feedback to improve our hotel and its services, as well as show our guests that their opinions matter. The PR & Communications Manager will be in charge of monitoring any feedback and replying to guests on behalf of the hotelâ&#x20AC;&#x2122;s General Manager.

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Tracking the ROI In order to make sure that our marketing efforts are paying off, we track and monitor our ROI to see which methods are effective, which need improvement and which ones need to be eliminated based on the performance.

Channel Performance

Is our web, mobile or social channel working best?

Traffic & Conversion Sources

Understanding where our traffic comes from.

Room Reports

Understanding how our pricing strategy is helping our ROI with detailed room reports.

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Leading Quality Assurance (LQA) Dashboard

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