High-Yield investment return is achieved by:

 

Lower Capital Cost —

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Utilizing indigenous architecture and materials, minimal importation of materials and technology

Typical development criteria result in parachuting first-world practices and technology into a developing economy based on the false assumption that installer and maintenance capability is equal to the sources. They are not. The result leads to higher capital costs and inconsistent installation (finish) quality.

Utilizing indigenous architecture and materials minimizes the importation of materials and technology, resulting in lower capital expenditure and higher-quality installation and finish.

Because the Harmony Project model is based on authenticity, indigenousness is a feature with local fabrication and showcasing proven local technology and materials. High-design/fashionable facilities are NOT a feature, as they are for most international brands. Think Mandarin Oriental, Four Seasons, even Aman, and facilities filled with sophisticated service come to mine — each a White Swan.

Because the Harmony Project reverses the relationship to authentic experience supported by facilities, the last thing we need is imported technology, materials, and design. A Triple Top and Bottom Line approach to sustaining development guides the process. The desirous outcome also includes lower capital (and maintenance) cost — part of our Black Swan paradigm.

Avoidance of fad-driving costly renovations

Facilities based on Indigenous facility experiences avoid fad-driving renovations. Capex costs are generally limited to equipment, not wholesale F&B, and public space concept change is driven by fashion.

Higher Profit Margins —

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Efficient staffing & lux room rates

Profit margins are higher with efficient labor costs and an experience-driven product able to command high room rates.

Because the Harmony Project recruits, trains, and operates with Omotanashi in mind, staffing costs are efficient. A highly motivated staff is cross-trained and flexible resulting in a flat hierarchy and efficient labor costs.

Capital investment is focused on the guest room experience rather than rambling spas and expansive public spaces. Facility design celebrates the natural environment drawing views, sounds, and aromas into the built spaces.

Experiential designed guest rooms tend to result in larger sizes (starring at around 100sqm) than the competitive-set. This makes comparisons persuasive when evaluating room product price-point with the competitive-set.