Cuzco Powerpoint

Cusco Cusco

PeruPeru

70 Unit Hotel Project

Four Star

What is Cuzco?What is Cuzco?

Cuzco, has become Cuzco, has become the stop over city to the stop over city to view the famous view the famous Machu Picchu Ancient Machu Picchu Ancient Ruins. The large Ruins. The large amount of museums amount of museums and churches have and churches have become Cuzco in the become Cuzco in the most important tourist most important tourist to center of Peru.to center of Peru.

Gateway to Machu PicchuGateway to Machu Picchu

Cusco is one of those Cusco is one of those rare places -- perhaps rare places -- perhaps like Bali, Katmandu, or like Bali, Katmandu, or Prague -- that seems Prague -- that seems able to preserve its able to preserve its unique character and unique character and enduring appeal enduring appeal despite its prominence despite its prominence on the international on the international tourism radar.tourism radar.

One of the New 7 WondersOne of the New 7 Wonders

Machu Picchu Peru, is reported Machu Picchu Peru, is reported to be among the leaders in the to be among the leaders in the New 7 Wonders contest, which New 7 Wonders contest, which has just surpassed the 45 has just surpassed the 45 million vote mark, according million vote mark, according to the organizing body -the to the organizing body -the New7Wonders Foundation.New7Wonders Foundation.

Other sites that are reported Other sites that are reported to be among the leaders are: to be among the leaders are: the Acropolis (Greece), the the Acropolis (Greece), the Chichen Itza (Mexico), the Chichen Itza (Mexico), the Roman Coliseum (Italy), the Roman Coliseum (Italy), the Eiffel Tower (France), the Eiffel Tower (France), the Great Wall of China, and Petra Great Wall of China, and Petra (Jordan).(Jordan).

South America for VisitorsSouth America for Visitors

Top 10 Most Visited South American Attractions - 2006Top 10 Most Visited South American Attractions - 2006

1) 1) iguazu Falls, Argentina and Braziliguazu Falls, Argentina and Brazil2)2) Cartagena, ColombiaCartagena, Colombia

3) 3) Machu Picchu, PeruMachu Picchu, Peru4) 4) Devil's Island, French GuianaDevil's Island, French Guiana5) 5) Nazca Lines, PeruNazca Lines, Peru6) 6) Angel Falls, VenezuelaAngel Falls, Venezuela7) 7) Cuzco, PeruCuzco, Peru Where airport is located- Machu Picchu is a 3 hour Where airport is located- Machu Picchu is a 3 hour train train ride from Cuscoride from Cusco8) 8) Lake Titicaca, Peru and BoliviaLake Titicaca, Peru and Bolivia..9) Mendoza, Argentina9) Mendoza, Argentina10) Cities from Space10) Cities from Space

Bustling CityBustling City

Abundant Night LifeAbundant Night Life

Downtown CuzcoDowntown Cuzco

Beautiful CityBeautiful City

Domestic and Foreign Tourism Growth In CuscoDomestic and Foreign Tourism Growth In Cusco

YearYearDomesticDomestic ForeignForeign TOTALTOTAL

19931993 347,668347,668 148,963148,963 496,631496,631

19941994 405,560405,560 283,065283,065 688,625688,625

19951995 417,040417,040 394,079394,079 811,119811,119

19961996 380,532380,532 465,596465,596 846,128846,128

19971997 369,339369,339 460,569460,569 829,908829,908

19981998 339,333339,333 524,985524,985 864,318864,318

19991999 357,812357,812 676,947676,947 1,034,7591,034,759

20002000 340,544340,544 734,103734,103 1,074,6471,074,647

20012001 324,428324,428 683,483683,483 1,007,9111,007,911

20022002 342,030342,030 677,197677,197 1,019,2271,019,227

20032003 343,359343,359 710,139710,139 1,053,4981,053,498

20042004 478,669478,669 1,105,9571,105,957 1,584,6261,584,626

20052005 519,898519,898 1,309,7521,309,752 1,829,6501,829,650

Official data from the department of tourism- Cusco

2006 Foreign tourism 1,101,494

2006 Domestic Tourism 405,045

Total 1,506,539

* See spreadsheet for Tourism in Cusco categorized by country

Over 500,000 come from the USA and Europe but there is no major franchise hotels except Best Western

The top rated hotels in Cusco are:The top rated hotels in Cusco are:

The Monasterio ( 5 star) The Monasterio ( 5 star)

Libertador (4 star)Libertador (4 star)

NovotelNovotel ( 4 star) ( 4 star)

There are a few good 3 star hotels but the majority 2 to 3 star hotels There are a few good 3 star hotels but the majority 2 to 3 star hotels are in average condition to US standards. are in average condition to US standards.

CompetitionCompetition

Hotel Monasterio Four StarHotel Monasterio Four Star Room InformationRoom Information122 units122 units PricesPrices$435 deluxe double; $520-$435 deluxe double; $520-

$1150 Rates include breakfast buffet$1150 Rates include breakfast buffet minibar, hair dryer, safeminibar, hair dryer, safe

CompetitionCompetition

Libertador Palacio del Inka 4 starLibertador Palacio del Inka 4 star Room InformationRoom Information254 units254 units PricesPrices$185 deluxe double; $215-$185 deluxe double; $215-

$350 suite. Rates include taxes$350 suite. Rates include taxes In Room Amenities In Room Amenities A/C, TV/VCR, A/C, TV/VCR,

fax and dataport in some units, fax and dataport in some units, minibar, hair dryer, sfeminibar, hair dryer, sfe

CompetitionCompetition

    NovotelNovotel Room Information Room Information 99 units 99 units    Prices Prices $118-$186 double. Rates $118-$186 double. Rates

include taxes and breakfast  include taxes and breakfast   In Room Amenities In Room Amenities AC, TV, AC, TV,

minibar, hair dryer  minibar, hair dryer  

We are looking into some of the We are looking into some of the following franchises:following franchises:

The average occupancy rate for the Department of Cusco in 2006 was 65% for a 4 star Hotel

We plan to build 87 rooms

Your ReturnYour ReturnEstimate:Estimate: at a low $130 Avg. per night for at a low $130 Avg. per night for

a 70 room hotel at 65% occupancy the a 70 room hotel at 65% occupancy the estimated net profit of the hotel is:estimated net profit of the hotel is:

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

30% share stays in the company. We are offering a 30% share stays in the company. We are offering a 4%4% ownership, of the ownership, of the remaining 70%, per every 100,000 investedremaining 70%, per every 100,000 invested

For example: 1,419,433 x 70% = 993,603 For example: 1,419,433 x 70% = 993,603 x x 4%= 39,7444%= 39,744 , which in this case , which in this case equals to a 39% annual return on your investmentequals to a 39% annual return on your investment

ExpediaExpedia

Below are the December rates from Below are the December rates from expedia for the top hotels. ( Dec. is expedia for the top hotels. ( Dec. is the slowest month of the year in the slowest month of the year in Cusco)Cusco)

Monasterio $ 330Monasterio $ 330 Libertador $ 205Libertador $ 205 NovotelNovotel $ 130 $ 130

Site Location

Two blocks

Away from main plaza

Right sideLeft side

Cuzco 1 SiteCuzco 1 Site

Cuzco 2 SiteCuzco 2 Site

Cuzco 2 SiteCuzco 2 Site