Professional Documents
Culture Documents
Feasibility Report On Hotel
Feasibility Report On Hotel
HOTEL PROJECT
1. INTRODUCTION:
The new millennium has seen the country open up its economy to
foreign investors leading to a large number of private players investing in
the country. With its buoyant economy, India is emerging from behind the
traditional stereotype of being a land of cows, magicians and poor, illiterate
people.
From the eternal snows of the Himalayas to the peninsula of the far South,
from the deserts of the West to the humid deltas of the East, from the dry
heat and cold of the Central Plateau to the cool forest foothills, Indian
lifestyles reflect the geography. The food, clothing and habits of Indian
differ in accordance to the place of origin.
The Colorful mosaic of Indian festivals and fairs - as diverse as the land, is
an eternal expression of the spirit of celebration. Observed with
enthusiasm and gaiety, festivals are like gems ornamenting the crown of
Indian Culture. They are round the year vibrant interludes in the mundane
routine of life.
In Indian cuisine, food is categorized into six tastes - sweet, sour, salty,
spicy, bitter and astringent. A well-balanced Indian meal contains all six
tastes. This principle explains the use of numerous spice combinations
and depth of flavor in Indian recipes.
HOTELS & RESTAURANTS EMPLOYEES COOPERATIVE
HOTEL PROJECT
As India gets younger and richer, there will be sustained demand for short
duration travel at major gateway destinations and these markets will grow
exponentially in the next three to five years. With sustained economic
performance, India's per capita income will also continue to witness
growth. Moreover, higher disposable income rather than lower savings has
influenced the present-day consumption boom in India. As income,
induced spending is likely to sustain itself for a longer period and higher
disposable incomes are also expected to enhance the concept of traveling
for leisure thus providing the necessary impetus to destination travel
within integrated travel circuits. In most markets, insufficient room
availability and high rates create conditions that are not conducive for
large incentive based group travel.
Overall, the industry saw a 12 month growth of 30% in average rate (in
2006-07) as opposed to a growth of 23.7% the previous year. Occupancy
growth which had been 2.6% previous year, showed a marginal growth of
0.7% (in 2006-07). Average rates in 2006-07 witnessed another increase
across all market segments. This is partially attributable to the strong
demand. All-India occupancy touched a record 72% mark for the first time.
While the year-on-year demand growth from certain segments continued,
the overall supply addition has been marginal. Due to the widening gap,
hotels over the last 3 – 4 years have realigned their yield management and
pricing to increase penetration from high paying customers.
The indications are that when year round occupancies start touching the 70
– 75% mark, there is substantial un-accommodated demand in the market.
During this high demand period, many cities were completely sold out on a
number of nights, resulting in hotels selling a significant proportion of its
inventory on rack rates.
Hotel Supply
There has also always been considerable debate about the number of
rooms India actually has. Our estimate is that there are possibly 110,000
rooms currently operating in India. It is also felt that there would probably
be another 25000 to 30000 guest houses or corporate guesthouses taking
the total supply of transient guest rooms to approximately 200,000 units /
rooms. However, shocking and a number that we are confident about is the
low number of branded or quality room supply in the country; it stands at
below 40000. This overall number for India is actually lower than that for
many international cities around the globe. Therefore, when we look at the
approximate 102,000 rooms being developed or say we use a probability
factor of 58% across the country, the numbers of room being developed in
HOTELS & RESTAURANTS EMPLOYEES COOPERATIVE
HOTEL PROJECT
India still remain extremely low and offer huge potential to investors and
operators across all segments. In most cities, this high growth can easily
attributed to the existing low base of quality hotel supply.
Future Trends
The hotel industry has its own set of entry barriers, which are :
1. VISION
2. MISSION
4. Project Details:
Project Components :
5. Technical Aspects:
Demographic Details: The area falls near 87°5’ Longitude & 23°88N
Latitude. The Climate of the area is tropical in nature. Winter is pleasant
with coldest months being December and January. The average minimum
temperature at winter is 7°C. Summer is very hot. May being the hottest
month with temperature rising up to 45°C with hot wind blowing at noon.
Sometime nor’westor blows in the afternoon in the month of April & May.
The average rain fall per year is in the tune of 1430.8mm with June and July
being the wettest months with on average monthly rain fall of 270-
280mm/month. The area being situated in the eastern part of the district the
average rainfall is better than that in western part of the district.
THE FUTURE
With such a proactive approach, the future looks pretty bright. The
tremendous change in the hospitality sector seen so far has been not just
in quantity (occupancy) but also quality. The demand in the premium
segment has also increased steadily. The city has reinforced its position as
HOTELS & RESTAURANTS EMPLOYEES COOPERATIVE
HOTEL PROJECT
the country's favored conference destination and industrial zone. Cost
advantage has invited a host of small/medium scale Industries BPO & IT
companies to flourish here. Employment and spending power have
increased tremendously. This has a bearing on F&B spends by locals. The
future is promising.
The State Government has the vision of making West Bengal the
destination state of India, given its attractive diversity, natural endowments
and friendly population. West Bengal has a rich tourist potential, which is
yet to be exploited
West Bengal has great potential for tourism with its temple towns, Holistic
Resorts, monuments and other tourist attractions.
Andal upcoming Airport will also add advantage for the visitors
Nearby Towns
Durgapur is growing rapidly along with its nearby towns and adjoining
areas. City like Asansol is already a well known city and other towns are
also growing along with Durgapur. These areas adjoining Durgapur has its
own importance and we are providing some information about few of them.
HOTELS & RESTAURANTS EMPLOYEES COOPERATIVE
HOTEL PROJECT
Asansol
Bishnupur
Bankura Town
Bolpur
Burdwan
Panagarh
Raniganj
Asansol
Asansol is the second largest city in West Bengal located in the Burdwan
district. It is a industrial- Coal-mining centre. It is the central city for its coal
belt surrounding and is heavily industrialised, it also acts as a trading town
owing to its location as a transport centre.The major industries here are
IISCO(SAIL), Chittranjan Locomotive Works, Hindustan cables Limited,
Burn standard, Rekitt & Coleman, Burnpur Cement and a number of small
scale industries. The Eastern coalfields a subsidary of Coal India lies here.
Bishnupur
Bolpur
The name PANAGARH is tagged with a town located in West Bengal, India.
It is situated in the Burdwan district. The importance of this place is right
from the presence of the Military Base Camp up to the Indian Air force
station. Two ways communication by Railways & National Highways (NH2)
retains PANAGARH always connected with other places.
Raniganj
Durgapur Barrage
HOTELS & RESTAURANTS EMPLOYEES COOPERATIVE
HOTEL PROJECT
Exalts Kumar Mangalam Park
Science and Energy Park
Troika Park
Deul/ Gor Jungle/ Maa Shyama Rupa Mandir
Rondia
Laodoha Forest
Nachan Dam
Ghagar Budi
Maithon
Lamia Park
Shatabdi Park
Rondia
MAJOR PLAYERS:
Some of the famous hotels in Durgapur include, Hotel Peerless Inn, Hotel
Pritika, Hotel Rose Valley, Hotel Luxor, Hotel City Residency, Pratik Motel.
RISK FACTORS:
The hotel industry needs quality employees and with demand for the same
improving across the industry, the company feels that wage inflation is a
critical factor in determining the costs for the company. Thus, our
Company will continue to focus on improving manpower efficiencies and
creating a lean organization, while maximizing effectiveness in terms of
customer service and satisfaction, as an area of great importance for the
management of the company
a. Financial Details : The following financial details are
separately annexed in this report:
1 PROJECT COST
ANALYSIS
STRENGTHS –
WEAKNESSES
OPPORTUNITIES
Ever increasing demand from the rich and affluent for a pollution free
environment and holiday
THREATS