The Out of the Box Hotel

Abstract

Pablo Picasso once said, “Art washes away from the soul the dust of everyday life”. Out of the Box hotel proposes to its guests to immerse themselves in the art universe and take a break from their daily life in order to have fun, relax and enjoy the present moment. This independent property of 50 rooms is a living piece of art itself where the Italian artist community could show their work. One mindset: being Out of the Box in every aspect in order to become the hotspot of art and hospitality in Italy. Nowadays, millennials are looking more and more for memorable experiences, that’s why we saw the last past years an explosion of new concepts in different sectors such as the entertainment industry, the food business and in the immersive art industry. For the museum and galleries of art, the companies are always trying to provide a better experience for their customers, however, in the mind of young people these places can be seen as boring and restrictive. In the hospitality industry, we find a uniformity and a lack of personality in the decoration due to the growth of hotel chains in the market to the detriment of independent hotels. To finish in the art business, the diversity of style and creations from the artists are infinite but unfortunately, many of them are not able to live from their work. By realizing these gaps in the market, we decided to create Out of the Box where hoteliers and artists can work hand in hand to offer a quirky place to stay that goes against standardization and offers a high quality of service. Art hotels in Milan are not rare, but a similar proposition does not exist and competing in the market is feasible. Out of the Box intends to create the difference by being visually unexpected and voluntarily very Instagrammable, a good way to make noise and promote the establishment. Each room has a unique design, and the guests have the possibility to choose depending on their preferences. The hotel offers a unique experience to its guests, especially with a diversity of art events. People coming to Out of the Box want to be surprised and have high expectations. Usually, young people travel for leisure and our target profile is very aware of new trends. Coming mainly from Europe, USA, and China all the guests have a very strong or moderate common interest in art. By meeting the artists, they will also understand why this hotel is so special. The soul of community is the strongest differentiation factor of the company. Out of the Box intends to include the art community by selecting upcoming artists of different natures and bring them together as new collectives. They work in the hotel experience and product concept for specific timeframes and can show their art in the form of a new marketplace. We support our artists by giving them 3% of the rooms’ revenues and events. Both the art community and the hotel can mutually benefit from each other. Recognized as the capital of fashion and design of the world and as the economic city of Italy, Milan is a strategic choice. According to the city branding insights of EXPO 2015, Out of the Box benefits from the potential of Milan’s cultural heritage as a way to reinforce and promote new forms of art. Therefore, as a business it becomes an ideal place to bring together different types of artists and events ranging from their early beginnings to the most experienced. This city shows huge potential with a constant growth in number of tourists’ arrivals and hospitality investments. The financial statement of the project is principally based on benchmarking. Analyzing and evaluating the main competitors in Milan allows us to maintain a sense of proportion and feasibility. To give the opportunity to the Out of the Box project and to see the light beginning of 2022, a total investment of 12,816,293 euros is required, out of which 30% in equity and 70% coming from mortgage for 15 years. The Net Present Value reaches 13,723,040 euros with an Internal Rate of Return equal to 12,7% with YIELD 6,5%. A payback period of 12 years is expected. Full of imagination and designed with passion, the team is confident in the viability of the business plan and in general success for the stakeholders, guests, and all associates.