BUSINESS PLAN : EXECUTIVE SUMMARY JULYBEACH RESORT

HISTORY JulyBeach Resort was founded by Catherine Lugtu and her brother Miguel Carlo Lugtu on a small town in Nasugbu, Batangas. They were visionaries and risk takers. They both loved the land and had a keen interest in real estate development. After a couple of successful real estate projects in Laguna and Cavite, Catherine and Carlo were looking around Batangas for a real estate investment, when their mother called about a For Sale by Owner advertisement in the Batangas City Journal. The ad was for a beach property in Nasugbu. Catherine and Carlo long to see that the beach nestled in breathtaking coconut grove was a very special opportunity for them to make a Boracay-inspired spot in Luzon. They saw the vision and bought the property. They named the property JulyBeach Resort for their family was born in the month of July. The two looked after their dreams and manage the resort which at that time, consisted of 5 cottages, a three storey lodge with 12 units and an office and laundry room. Their familys vision continues to unfold, and JulyBeach Resort became a high-class tourist destination. FAADE and DESCRIPTION JulyBeach Resort is set amongst a twenty-one hectare coconut grove, nestling in serene solitude amidst perfume garden surrounded by tropical jungles facing the exotic turquoise sea. The stretch of sand lined with nature away from noise and pollution where there is a privilege of total tranquility. The grounds are beautifully landscaped and the staff firmly believes that they have not only committed themselves to a job but, also to a way of life. Management has taken training to a different level of providing unparalleled service. There are luxury rooms, executive suites, and affordable cabins with Jacuzzi tubs. Each room has individual climate control, direct-dial phones, and televisions. The resort hotel facility has a large main lobby area, indoor pool/outdoor pool/Jacuzzi/sauna/spa, lighted tennis court, parking lots, storage shed, ample parking, and all equipment necessary for operation of high-class resort. MARKET The JulyBeach Resort has a wide variety outgoing people as their target market. The unique resort facility with affordable prices will attract people living in the local area along with visiting tourists. The 21-hectare proximity of this area to these targets increases the success rate of this project. A direct marketing (direct mail) package consisting of a tri-fold brochure, letter of introduction, and reply card will be sent to a list of potential guests. The brochure and letter introduces JulyBeach Resort, stresses the importance of having a good time in comfortable surroundings, provides information on our resort services, and describes what sets us apart from other area resort and lounge properties. Discussions and interviews will be held with a variety of individuals involved with other similar businesses to develop the data, review the market potential, and competitive situation. PROPOSED BUSINESS

We seek funds for the renovation of JulyBeach Resort, a marketed, "nature style" resort specializing in peoples "gateway" to provide relaxation, recreation and adventure in Nasugbu, Batangas, a popular tourism spot located in the Southern Tagalog Region. Moderately priced between the high-line resort properties and strips, JulyBeach Resort proposes to fill an affordability niche in the Philippines. Despite the pristine beach, grill, poolside beverage service, and morning continental breakfast bar, we are still craving for more innovations and seeking investment funds to renovate the resort. Improvements will include the makeover of 18 to 20 cabins (with 3 suites), addition of bar/lounge area with dance floor, extra parking lot build-out, and an outdoor pool. With this refurbishment and other new amenities, JulyBeach Resort will form the basis of a highly profitable resort venture.

Mission JulyBeach Resorts Mission is to exceed the expectations of our guests, inspire and reward our associates and provide superior financial results to those who entrust us with managing their assets. We ensure a positive experience for each and every resort guest, holiday club member and shareholder their most significant investment. We continue to diversify our investment portfolio and paramount our mission of generating continued growth through expansion, innovation and maximization of market share. JulyBeach Resort seeks to conduct its operations in an environmentally sensitive manner. Vision JulyBeach Resort will be a global, award-winning resort, offering consistent products and services in key business and leisure destinations. Our growth will be achieved through resort patronization, management and selective staffing. We will be known for our innovation, exemplary service and superior financial performance. JulyBeach Resort is committed to being the employer of choice in the hospitality industry. Business Tagline Your Gateway to Relaxation and Adventure is our current tagline. Where Hospitality Meets Pleasure will be our proposed tagline for the resort.

MANGAMENT AND STAFFING JulyBeach Resort's CEO, Catherine Erika Lugtu, will manage all aspects of the business and service development to ensure effective customer responsiveness. Ms. Lugtu has an extensive business background, including years of experience developing a variety of businesses. She received her B.S. in Accountancy, and currently is an M.B.A. candidate at University of Sto. Tomas. She will be assisted by her co-executives who will provide additional support services. Support staff will be added as guest and/or patron load factors mandate. LOCATION JulyBeach Resorts current location is in Nasugbu, Batangas

Other Preferred Locations: Tanza, Cavite Puerto Azul, Palawan Canlubang, Laguna LOAN REQUEST The owners are requesting a Php 20,000,000 loan to fund the inventory and renovation costs. They will contribute Php 5,000,000 cash to begin the improvements. The full amount will be needed in five months, after which time a steady repayment will take place out of operating cash flows. The loan will be entirely repaid in two years after the renovation and expansion. COLLATERAL The loan will be fully collateralized by the equity of the house and lot of Arce Bucks, Jazmine Magabo and Angelique Gabrillo which is estimated to be in exceess of Php 1,000,000. FINANCIAL PROJECTIONS The following assumptions will be incorporated into JulyBeach Resort statements.

All operating costs are based on the management research of similar operating companies. Automated informational and bar control systems will reduce staff requirements. Developmental costs are amortized over a two-year period. Room Occupancy Rate at 60%, overhead and operations costs are calculated on an annual basis. Salaries are based on a fixed salary expense basis. All fixed and variable labor costs should rise annually at 2.2% per year. All revenues are figured to rise annually at 5.2%. Fixed annual, administrative, and office expenses rise at an annual rate of one half of one percent.

SCOPE AND LIMITATION This executive summary would only cover the proposed business, location, history, faade and description of JulyBeach Resort. It would only give subtle information about the

market, financial projections, management and operations for it will be further discussed and delivered by other associates of the team.