How Well Is “le Cerf De Tremblant” Performing as Investment?

1. How well is “LE CERF DE TREMBLANT” performing as investment?

Since its acquisition, the property has been making yearly losses driven by a lack of adequate visibility. This issue can be addressed by developing and implementing a marketing plan that will aim at increasing the condo’s visibility among its target market. The condo already has a strong customer loyalty with 25% of recurring bookings, and an additional clientele would substantially increase the revenue. Also, given its strategic location within an touristic area, the value of the property is set to increase over time.

2. Main issues to be addressed:

a) Given the yearly losses over the past 4 years, is this an investment worth keeping?

b) Given the financial restraints, how can the condo’s nightly occupancy rate be increased?

c) Given the annual carrying costs of the property being higher than the revenue, how and when will the investment reach a break-even point?

1. For the past 4 years the condo has been operating at a loss, is it worth keeping?

2. How to bring up the number of rented nights without using much capital?

3. How and when do we reach break-even point? The annual carrying cost of the property is higher than revenue

3- SWOT

STRENGTH WEAKNESSES

● Size of the condo (2300sq feet)

● View and location

● Ability to cook and BBQ

● Previous customers were satisfied

● New and well decorated unit ● Only 1 condo available

● Small budget for advertising

● Low visibility beyond Ottawa and Montreal

● No amenities (swimming pool etc)

● No professional management

OPPORTUNITIES THREATS

● Golf course location and accessibility

● Can be partners with one of the management companies in the area.

● Many families prefer the ability to cook their own foods

● Already built website

● Growing interest in outdoor activities among canadian public

● Many vacant nights including on holiday season

● Social media marketing ● Other condos offering