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CONTENTS OF THE PROJECT
S.N. TITLE PAGE

NO.
CHAPTER 1 INTRODUCTION 2-11
SCOPE, OBJECTIVE, METHODOLOGY & LIMITATION OF

THE
CHAPTER 2 PROJECT 12-14
CHAPTER 3 INFORMATION OF PLACE & SITE 15-28
PART-A MARKET FEASIBILITY
CHAPTER 4 DEMAND QUANTIFICATION 30-39
CHAPTER 5 TECHNICAL DETAILS OF THE PROPOSED PROJECT 40-49
CHAPTER 6 RECOMMENDED MARKET MIX 50-56
CHAPTER 7 CONCLUSION 57-58
PART-B FINANCIAL VIABILITY
INTRODUCTION TO THE FINANCIAL ASPECT OF THE

CHAPTER 8 PROJECT 60-63
CHAPTER 9 COSTOF THE PROJECT (fixed assets and capital costs) 64-66
CHAPTER MANPOWER REQUIREMENT AND THE COST 67-73

10
CHAPTER SALES REVENUE 74-75
11
CHAPTER OPERATIONAL EXPENSES 76-77
12
CHAPTER WORKING CAPITAL REQUIREMENT 78-82
13
CHAPTER FINANCING THE PROJECT 83-84
14
CHAPTER PROFITABILITY STATEMENT 85-87
15
CHAPTER CASH FLOW STATEMENT 88-95
16
ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

CHAPTER BREAK EVEN ANALYSIS & DEBT SERVICE RATIO 96-101
17
CHAPTER COVERAGE RATIO 102-103
18
CHAPTER RATIO ANALYSIS 104-109
19
CONCLUSION 110-111
BIBLIOGRAPHY 112-113
ANNEXURES 114-143

CHAPTER 1
INTRODUCTION

HOSPITALITY AND TOURISM INDUSTRY
The generous and cordial provision of service to a guest is known as hospitality. Hospitality organization
provides accommodation, food and beverage, transportation, entertainment and health care. Hospitality
industry mainly consists of all those business and institutions that provide food and lodging-such as hotels,
motels, loges, inns, cruise ships, restaurants and the institutions of public services. In a broad sense, any
group engaged in tourism, entertainment, transportation and lodging are covered under hospitality.
Hospitality industry is a part of travel and tourism industry. Hospitality industry is now both profitmaking as
well as non-profit making.
The concept of total quality management is found getting an important place in the marketing management
of hotels. The emerging positive trend in the tourism industry indicates that hotel industry is like a reservoir
from where the foreign exchange flows. This naturally draws our attention on hotel management. Like other
industries, the hospitality industry also needs to explore avenues for innovation, so that a fair blending of
core and peripheral services is made possible. It is not to be forgotten that the leading hotel companies of the
world have been intensifying research their peripheral services with the motto of adding attractions to their
mix.
The recruitment and training programmers are required to be developed in the face of technological
sophistication. The leading hotel companies have been found promoting an ongoing training programmed so
that the personnel come to know about the use of sophisticated communication technologies.
INTRODUCTION TO HOTEL INDUSTRY

Hotels can be defined as a home and business as it offers service and accommodation at a price reasonably
commensurate with the services rendered. A hotel is an establishment providing accommodation, meals, and
other services for travellers and tourists. According to British Law of Hotel is defined as a place where a
benefice traveller can receive food and shelter, provided he is a position to pay for it, and is in condition to
be received. The word hotel is derived from French hotel (coming from the same origin a hospital), which
referred to a French version of a building seeing frequent visitors, and providing care, rather than a place
offering accommodation. In contemporary French usage, hotel now has the same meaning as the English
term, and hotel particular is used for the old meaning, as well as “hotel” in some place names such as hotel-
Dieu (in Paris), which has been a hospital since the Middle Ages. The French spelling, with the circumflex,
was also used in English, but is now rare. The circumflex replaces the “s” found in the earlier hostel
spelling, which over time took on a new, but closely related meaning. Grammatically, hotels usually take the
define article hence “The Astoria Hotel” or simply “The Astoria.” Facilities provided may range from a
basic bed and storage for clothing, to luxury features like en-suite bathrooms. Larger hotels may provide
additional guest facilities such as a swimming pool, business center, childcare, conference facilities and
social function services. Hotel rooms are usually numbered (or named in some smaller hotels and B&BS) to
allow guests to identify their room. Some hotels offer meals as part of a room and board arrangement. In the
United Kingdom, a hotel is required by law to serve food and drinks to all guests within certain stated hours.
In japan, capsule hotels provide a minimized amount of room space and shared facilities. The precursor to
the modern hotel was the inn of medieval Europe.

For a period of about 200 years from the mid-17th century, coaching inns served as a place for lodging for
coach travellers. Inns began to cater for richer clients in the mid-18th century. One of the first hotels in a
modern sense was opened in Extern in 1768. Hotels proliferated throughout Western Europe and North
America in the 19th century, and luxury hotels began to spring up in the later part of the century. Hotel
operations vary in size. Function and cost. Most hotels are major hospitality companies have set industry
standards to classify hotels types. An upscale full-service hotel facility offers luxury amenities, full service
accommodations, on-site full service restaurants, and the facilities with a large volume of full service
accommodations on-site full service restaurants, and a variety of onsite amenities.
Boutique hotels are smaller independent non-branded hotels that often contain upscale facilities. Small to
medium-sized hotel establishments offer a limited amount of on-site amenities. Economy hotels are smaller
to medium-sized hotel establishments that offer basic accommodation with little to no services. Extended
stay hotels are small to medium sized hotels that offer longer-term full service accommodation compared to
a traditional hotel. Timeshare and Destination clubs are a form of property ownerships involving ownerships
of an individual unit of accommodation for seasonal usage. A motel is smallsized low-rise lodging with
direct access to individual rooms from the car park. Boutique hotels are typically hotels with unique
environment or intimate setting. A number of hotels have entered the public consciousness through popular
culture, such as the Ritz Hotel in London. Some hotels are built specifically as a destination in itself, for
example at casinos and holiday resorts. Most hotel establishments consist of a General Manager who serves
as the head executive (often referred to as the “Hotel Manager”), departments heads who oversee various
departments within a hotel, Middle managers, administrative staff, and line-level supervisors. The
organizational chart and volume of job positions and hierarchy varies by hotel size, function and is often
determined by hotel ownership and managing companies. The cost and quality of hotels are usually
indicative of the range and type of services available. Due to the enormous increase in tourism worldwide
during the last decades of the 20th century, standards, especially those of smaller establishments, have
improved considerably. For the sake of greater comparability, rating systems have been introduced, with the
one to five stars classification being most common.
HOTEL INDUSTRY ORIGIN

The depreciation in 1930 had a disaster effect in a hotel industry after the World War II and brought a
tremendous up surge to hotel industry with continuous prosperity of hotel industry. Mass travel is a modern
phenomenon that emerged after World War II.
Mass tourism continues to grow as political freedom, economic wherewithal and social equality spread
across the globe. With the economic engine of development running at full steam, there was a growth in
international travel and thereby growth in hotel industry.
Estimates abound as to the importance and size of housekeeping. Certainly, its economic contribution is
critical to the global economy whether as a service to the business community. Prior to the 1980s, the Indian
hotel industry was a nascent and slow growing industry primarily consisting of relatively static, single hotel
companies.
However, Asian games in 1982and the subsequent partial liberalization of the Indian economy generated
tourism interest in India with significant benefits accruing to the hotel and tourism sector in terms of
improved demand patterns. Fortunes of the hotel industry are tied to the fortunes of tourism and the general

business climate in the country, which is why the economic liberalization initiatives implemented since
1991, led to a soaring demand and supply gap in the hotel industry.
There are just three front sides of the Hotel Industry Earnings: In proving Rooms, Banquets and Restaurants.
CLASSIFICATION OF HOTEL
Hotel can be classified into different categories or classes, based on their operational criteria. For example
the type of accommodation they provide, location of the property, type of services provided, facilities given
and the clientele they cater to can help categories hotels today.
Hotels today are basically classified into the following categories
• Market Segment
• Economy / limited services hotel
• Mid-market hotel
• All-suite hotels
• Time-share hotels
• Condotel / Condominium
• Executive hotels
• Luxury / Deluxe hotels
PROPERTY TYPE
• Traditional hotel
• Motels
• Bread and breakfast inns
• Commercial Hotel
• Chain hotel
• Casino hotel
• Boutique hotels
• Resorts
• Spa’s
• Conference resorts
• According to size

• Small hotels (150 rooms)
• Medium hotels (up to 299 rooms)
• Large hotels (up to 600 rooms)
TYPE OF HOTELS
• Commercial.
• Airport.
• Suite.
• Residential.
• Resort.
• Bed and Breakfast.
• Time Share.
• Casino.
• Conferences Centre
• Convention.
CONCEPT OF TOURISM
Tourism is today the world’s largest industry. Today, it presents a challenge to the economics of the
developing world. It has enormous reward kin the form of financial which helps to reduce unemployment by
giving the opportunity.
Tourism is an industry concerned with attracting people to destination, transporting them there, housing,
feeding and entertaining them upon arrival returning them to their homes. Tourism is a basic and most
desirable human activity deserving the praise and encouragement of all people and governments.
The World Tourism Organization defines tourists as people who “travel to and stay in places outside their
usual environment for more than twenty-four hours and not more than a consecutive year for leisure,
business and other purposes not related to the exercise of an activity remunerated from within the place
visited”. Tourism has become a popular global leisure activity. In 2008, there were over 922 million
international tourists’ arrivals, with a growth of 1.9% as compared to 2011. International tourist’s receipts
grew to US$ 944 billion in 2008, corresponding to an increase in real terms of 1.8%.
Tourism is vital for many countries such as Canada, Maldives, Egypt, and Greece and so on, due to large
intake of money for businesses with their goods and services and the opportunity for employment in service
industries associated with tourism.

DEVELOPMENT OF TOURISM IN INDIA
EARLY DEVELOPMENT
The first conscious and organized efforts to promote tourism in India were made in 1945 when a committee
was set up by the Government under the Chairmanship of Sir John
Sargent, the then Educational Advisor to the Government of India (Krishna, A.G., 1993). Thereafter, the
development of tourism was taken up in a planned manner in 1956 coinciding with the Second Five Year
Plans. The Sixth Plan marked the beginning of a new era when tourism began to be considered a major
instrument for social integration and economic development.
But it was only after 80s that tourism activity gained momentum. The Government took several significant
steps. A National Policy on tourism was announced in 1982. Later in 1988, the National Committee on
Tourism Formulated a comprehensive plan for achieving a sustainable growth in tourism. In 1992, a
National Action Plan was prepared and in 1996 the National Strategy for promotion of Tourism was drafted.
In 1997, the new Tourism Policy recognizes the roles of Central and State governments, public sector
undertaking and the private sector in the development of tourism were. The need for involvement of
Panchayati Raj institutions, local bodies, non-governmental organizations and the local youth in the creation
of tourism facilities has been recognized.
NEW CONCEPT OF ECO - TOURISM

Ecotourism is defined as “responsible travel to natural areas that conserves the environment, sustains the
well-being of the local people, and involves interpretation and education”. Its purpose may be to educate the
traveller, to provide funds for ecological conservation, to directly benefit the economic development and
political empowerment of local communities, or to foster respect for different cultures and for human rights.
Since the 1980s ecotourism has been considered a critical Endeavour by environmentalists, so that
experience destinations relatively untouched by human intervention. Several university programs use this
description as the working definition of ecotourism.
Offering market-linked long-term solutions, ecotourism provides effective economic incentive for
conserving and enhancing bio-cultural diversity and helps protect the natural and cultural planet. And by
increasing local capacity building and employment
opportunities, ecotourism is an effective vehicle for empowering local communities around the world to
fight against poverty and to achieve sustainable development.
Principles of ecotourism are;
• Minimize physical, social, behavioural, and psychological impacts.
• Build environmental and cultural awareness and respect.
• Provide direct financial benefits for conservation.
• Generate financial benefits for both local people and private industry.
• Deliver memorable interpretative experiences to visitors that help raise sensitivity to host countries
political, environmental, and social climates.
• Design, construct and operate beliefs of the indigenous people in your community and work in
partnership with them to create empowerment.

With an emphasis on enriching personal experiences and environmental awareness through interpretation,
ecotourism promotes greater understanding and appreciation for nature, local society and culture.
Responsible ecotourism includes programs that minimize the negative aspects of conventional tourism on
the environment and enhance the cultural integrity of local people. Therefore, in addition to evaluating
environment and cultural factors, an integral part of ecotourism is the promotion of recycling, energy
efficiency, water conservation, and creation of economic opportunities for local communities. For these
reasons, ecotourism often appeals to advocates of environmental and social responsibility.
Ecotourism is a form of tourism that involves visiting natural areas-in the remote wilderness or urban
environments. According to the definition and principles of ecotourism established by the International
Ecotourism Society (TIES) in 1990, ecotourism is
“Responsible travel to natural areas that conserves the environment and improves the wellbeing of local
people”. Martha Honey expands on the TIES definition by describing the seven characteristics of
ecotourism. Which are;
• Involves travel to natural destinations
• Minimize impact
• Builds environmental awareness
• Provides direct financial benefits for conservation
• Provides financial benefits and empowerment for local people
• Respects local culture
• Supports human rights and democratic movements
Such as:
• Conservation of biological diversity and cultural diversity through ecosystem protection
• Promotion of sustainable use of biodiversity, by providing jobs to local populations
• Sharing of socio-economic benefits with local communities and indigenous peoples by having their
informed consent and participation in the management of ecotourism
• Tourism to unspoiled natural resources, with minimal impact on the environment being a primary
concern.

INTRODUCTION TO MARKET AND MARKETING
A market is a place where two parties can gather to facilitate the exchange of goods and services. The two
parties involved are usually buyers and suppliers. The term market refers to the group of consumer or
organizations that is interested in the product, has the resources to purchase the product, and is permitted by
law and other regulations to acquire the product.
An actual or nominal place where forces of demand and supply operate and where buyers and sellers interact
(directly or through intermediaries to trade goods, services or contracts or instruments for money or barter
Markets include mechanism or for
1. Determining price of trade items,
2. Communicating the price information
3. Facilitating deals and transaction and
4. Effecting distribution
The market for a particular item is made up of existing and potential customer who needs it and has the
ability and willingness to pay for it.
The action or business of promoting and selling products or services, including market research and
advertising is called marketing.
“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customer, clients, partner, and society at large.” — American
Marketing Association.
“Marketing is everything.” — Regis McKenna
Regis McKenna’s bold statement exemplifies the school of thought that everything you do – not just your
products, pricing, promotion, and distribution, but even your billing, how you answer The phone, your speed
of handling problems –it all affects how your customer perceives your company, so everything is marketing.
“Marketing is the social process by which individuals and groups obtain what they need and want through
creating and exchanging products and value with other” — Philip Kotler. “Marketing is the process whereby
society, to supply its consumption needs, evolves distributive systems composed of participants, who,
interacting under constraints – technical (economic) and ethical (social) – create the transactions or flows
which resolve market separations and result in exchange and consumption.” – Bartle’s
“Marketing is any contact that your business has with anyone who isn’t a part of your business. Marketing is
also the truth made fascinating. Marketing is the art of getting people to change their minds. Marketing is an
opportunity for you to earn profits with your business, a chance to cooperate with other businesses in your
community or your industry and a process of building lasting relationships.” — Jay Conrad Levinson
Marketing is “The management process responsible for identifying, anticipating and satisfying customer
requirements profitably.” — The Chartered Institute of Marketing

Financial ability means to find out, whether it is financially viable to start a 5 star property at this project
report is based on 5 star hotels. In simple words, financial viability is to find out, starting a five star hotel is
successful or not.
The financial planning includes the selection of objectives and selection of policies, programs and procedure
to achieve the objective. The various consideration relating to the present capital needs, requirements of
investors and possibilities of expansion resolve themselves into a present determination of:
1. The amount of capital to be raised.
2. The form and proportionate amount of securities to be issued.
3. Policies as to administration of capital

It is not too much emphasize the correct estimate of the present and future needs of the; a sound capital
structure and proper projection of capital will lead to success of the company.

CHAPTER 2
SCOPE, OBJECTIVES, METHODOLOGY, AND LIMITATION

SCOPE, OBJECTIVE, METHODOLOGY, AND LIMITATION
Scope
The scope of this study is: -
• To attain the market feasibility report of various hotels.
• To understand the functioning of the hotels.
• To understand the fluctuations in business, reasonability in occupancy and other factors that affect
the operations of the hotel.
• This study involves the financial viability for the project considering the market, hotel facilities
including accommodation and food and beverage
OBJECTIVES:
The objective of the study under taken is to understand the feasibility of setting up of hotel in hesaraghatta
• To calculate the breakeven point.
• To estimate the total cost of project and suggest an effective method of financing
• To estimate the total expected revenues from various departments and calculate their profitability.
• To assess the debt service ratio.
Methodology:
Collection of data was done by following method:
Primary data: during the survey done in Doddanekundi to determine the market feasibility most of required
data information for the project has been collected by surveying the fivestar hotels (IBIS and NOVOTEL
TECHPARK, BELLENDUR).
Secondary data: This has been complied by referring to various books and from theoretical inputs provide,
through brochures, internet, and information from the faculty guides to analyse the market situation with the
help of a few derived formulas.

Limitations:
• Calculations made in the project are based on concrete assumptions, which may not be fully accurate
and subject to change.
• The market feasibility as it beyond scope of the study the hotel officials are not ready to reveal some
strategic information so the financial aspects are not covered.
• Non – availability of updated information.

CHAPTER 3
INFORMATION OF PLACE AND SITE

PROFILE OF THE PLACE
KARNATAKA
Karnataka is state in South West india.it was created on 1st November 1956, with the passage of the States
Reorganizations act. Originally known as the State of Mysore, it was renamed Karnataka in 1973. The capital
and the largest city of the Karnataka is Bangalore. Karnataka is bordered by the Arabian Sea and the Laccadive
sea to the west, Goa to the North West, Maharashtra to the north, Telengana the north east, Andhra Pradesh to
the east, Tamil Nadu to the south east, and Kerala to the south west.
The state covers an area of 191,976square kilometers (74,122 sq. mi), or 5.83% of the total geographical area
of India. It is the seventh largest Indian state by area. With 61,130,704 inhabitants at the 2011 census,
Karnataka is the eight largest states by population, comprising 30 districts.
Kannada is the most widely spoken and official language of the state. The two main river systems of the state
are the Krishna and tributaries, he Bhīma, Ghataprabha, Vedavati, Malaprabha, and Tungabhadra, in the north,
and the kaveri and tributaries, the Hemavati, Shisha, Arkavati, Lakshmana Thirtha and Kabibi, in the south.
Both these rivers flow out of Karnataka, the generally accepted one is that Karnataka is derived from the
Kannada words Karu and nadu, meaning “elevated land”. Karu nadu may also be read as Karu, meaning
“black”, and nadu, meaning “region”, as a reference to the black cotton soil found in the BayaluSeeme region
of the state.
The British used the word Carnatic, sometimes Karnatak, to describe both sides of peninsular India, south of
the Krishna. With an antiquity that dates to the Paleolithic, Karnataka has been home to some of the most
powerful empires of ancient and religious and literary movements, which have endured to the present day.
There are 30 districts in Karnataka.
• Bagalkote, Belgaum, Bellary, Bidar, Bijapur, Chamarajanagar, Chikkaballapur, Chikkamagaluru,

Chitradurga, Dakshina Kannada, Davanagere, Dharwad, Gadag, Gulbarga, Hassan, Haveri, Kodagu,
Kolar, Koppal, Mandya, Mysore, Raichur, Ramanagara, Shimoga, Tumkur, Udupi, Uttara kannada,
yadgir

BANGALORE CITY
Bangalore officially known as Benguluru,is the capital of the Indian state of Karnatak.it has population of
about 8.42 million and a metropolitan population about 8.52 million, making it the third most populous city
and fifth most populous urban agglomeration in India, Located in Southern India on the Deccan Plateau, at a
height of over 900m. (3,000 ft.) Above sea level, Bangalore is known for its pleasant climate throughout the
year. Its elevation is the highest among the major large cities of India. A succession of south Indian dynasties,
the western
Gangas, the Cholas and the Hoysalas, ruled the present region o Bangalore until in 1537 CE, KempeGowda a
feudal ruler under the Vijayanagara Empire-established a mud fort considered to be the foundation of modern
Bangalore.
In 1638, the Marathas conquered and ruled Bangalore for almost 50 years, after which the Mughals captured
and sold the city to the Mysore Kingdom of the Wadiyar dynasty. It was captured by the British after victory
in the fourth Anglo-Mysore War (1799), who returned administrative control of the city to the maharaja of
Mysore. The old city developed in the dominions of the maharaja of Mysore and was made capital of the
princely state of Mysore, which existed as a nominally sovereign entity of the British raj. In 1809, the British
shifted their cantonment to Bangalore, outside the old city, and a town grew up around it, which was governed
as part of British India. Following India’s independence in1947, Bangalore became the capital of Mysore
State, and remained capital when the new Indian state of Karnataka was formed in 1956. The two urban
settlements of Bangalore- city and cantonment-which had developed as independent entities merged into a
single urban Centre in1949. The existing Kannada name, Bengaluru, was declared the official name of the city
in 2006.
Bangalore is known as the “Silicon Valley of India” because of its role as the nation’s leading information
technology (IT) exporter. Indian technological organizations ISRO, Infosys and Wipro are head quartered in
the city. A demographically diverse city, Bangalore is the second fastest-growing major metropolis in India.
It is home to many educational and research institution in India, such as Indian Institute of Science (IISc),
Indian Institute of Management (Bangalore) (IIMB), National Institute of Fashion technology, Bangalore,
national institute of Design, Bangalore (NID R&D Campus), National law school of India University (NLSIU)
and national Institute of Mental Health and Neurosciences (NIMHANS). As a growing metropolitan’s city in
a developing country, Bangalore confronts substantial pollution and other logistical and socio-economic
problems. With a gross domestic product (GDP) of $83 billion, Bangalore is ranked fourth in India by overall
GDP contribution, after only Mumbai, Delhi and Kolkata.
GEOGRAPHY
Bangalore lies in the southeast of the South Indian State of Karnataka. It is in the heart of the Mysore Plateau
(a region of the larger Precambrian Deccan Plateau) at an average elevation of 900 m (2,953 ft.). It is located
at 12.97◦ N 77.56◦E and covers an area of 742 km2 (286 sq. mi.).The majority of the city of the Bangalore
Urban district of Karnataka and the surrounding rural areas are a part of the Bangalore Rural district. The
Government of Karnataka has carved out the new district of Ramanagara from the old Bangalore Rural district.
Bangalore has a handful of freshwater lakes and water tanks, the largest of which are Madivala tank, Hebbel
Lake, Ulsoor Lake, Yediyur Lake and Sankey tank. Groundwater occurs in silty to sandy layers of the alluvial
sediments. The peninsular gneissic Complex (PGC) is the most dominant rock unit in the area and includes
granites, gneisses and migmatites, while the soils of Bangalore consist of red laterite and red, fine loamy to
clayey soils.

CLIMATE
Bangalore has a tropical savanna climate (climate classification) with the distinct wet and dry seasons. Due to
its high elevation, Bangalore usually enjoys a more moderate climate throughout the year, although occasional
heat waves can make summer somewhat uncomfortable. The coolest month is December with an average low
temperature of 15.5◦C (59.7◦F) and the hottest month is April with an average high temperature of 36◦c (97◦f).
The highest temperature ever recorded in Bangalore is 38.9◦c (102◦f) (recorded in March 1931). However, the
suburbs of Bangalore recorded temperatures as high as 41◦c (106◦F) which are now part of present day
Bangalore. The lowest even recorded is 7.8◦C (46◦F) (recorded in January 1884). Winter temperatures rarely
drop below 12◦c (54◦F), and summer temperatures seldom exceed 37◦C (99◦F). Bangalore receives rainfall
from both the northeast and the southwest monsoons and the wettest months are September, October and
August, in that order. The summer heat is moderated by fairly frequent thunderstorms, which occasionally
cause power outages and local flooding. The heaviest rainfall recorded in a 24hours period is 179 millimeters
(7in) recorded on 1 October 1997.
TRANSPORT AIR
Bangalore is served by the KempeGowda International

Airport (abbreviated as KIA) (IATA: BLR, ICAO:
VOLBL), located at Devanahalli, about 40 kilometers
(25 miles) from the city Centre. It was formerly called
Bengaluru
International Airport (BIA). The airport started
operations from 24 may 2008 and is private airport managed by a consortium led by the GVK Group. The city
was earlier served by the HAL Airport at Vimanapura, a residential locality in the eastern part of the city. KAL
is now the third busiest airport in India in terms of passage traffic and the number of air traffic movements
(ATMs) with about 280 per day. The most hassle-free way to commute is by taxi. Meru cabs and Megha cabs
have taxis present in the rank at the airport.
RAIL
A rapid transit system called the Namma Metro is being out. A 7 kilometers (4miles) stretch from
Bayappanahalli to MG Road opened to public on 20 October 2011, while another 10 kilometers (6 miles)
stretch from Malleswaram to Peenya was opened on 1 march 2014. Once completed, this will encompass a
42.3 km elevated and undergoing rail network comprising 41 stations. It is expected to connect central
locations in Bangalore to the airport near Devahalli as well as the chikballapur regions. There are four major
railway station, Yeswantapur junction and Krishnarajapuram railway station, with railways lines towards
Jolarpettai in the east, Chikballapur in the north-east, and Guntakal in the north, and Tumkur in the north-west,
Nelamangala in the west, and Mysore in the south-west and Salem in the south. Bangalore is well connected
by rail to most cities in Karnataka, as well as with other major cities in India. The sprawling Rail Wheel factory
is Asia’s second largest manufacture of Wheel & Axle for Railways and is headquarters in Yalahanka,
Bangalore.

ROAD
BMTCs Volvo buses are popular mode of commuting within Bangalore. Busses operated by Bangalore
Metropolitan Transport corporations (BMTC) are an important and reliable means of public transport available
in the city. While commuters can buy tickets on boarding these buses, BMTC also provides an option of bus
pass to frequent users. BMTC runs air-conditional luxury buses on major routes, and also operates shuttle
services from various parts of the city to the Bengaluru International Airport. The Karnataka State Road
Transport Corporation operates 6,918 buses on 6,352 schedules, connecting Bangalore with other parts of
Karnataka as well as other states.
The main bus depots that KSRTC maintains are the KempeGowda Bus Station, locally known as “Majestic
bus stand”, where most of the out station buses ply from. Taxis are metered and are generally more expensive
than auto-rickshaws. There are currently 1,000 vehicle’s being registered daily in Bangalore RTOs. The total
number of vehicles as on date is 3880,000 vehicles with a road length of 11,000 kilometers (6,835 miles).
CULTURE
Bangalore is known as the “Garden City of India” because of its gentle climate, broad streets, greenery and
the presence of many public parks, such as Lal Bagh and Cubbon Park. Bangalore is sometimes called as the
“Pub Capital of India” and the “Rock/Metal capital of India’ because of its underground music scene and it is
one of the premier places to hold international rocks concerts. In May 2012, lonely planet ranked Bangalore
3rd among the world’s top 10 cities to visit. Biannual flower shows are held at Lal Bagh Gardens during the
week of Republic day (26 January0 and Independence Day (15 august). Bangalore Karaga or “Karaga
shaktyotsava” is one of the most important and oldest festivals of Bangalore dedicated to the Hindu goddess
Draupadi.
PLACE TO VISIT IN BANGALORE

A scenic place, which bears striking resemblance to England’s Windsor castle, Bangalore palace is a scenic
tourist hotspot with a majestic castle-like structure set amidst lush green environs. Is a scenic tourist hotspot
with a majestic castle-like structure set amidst lush greenenvirons?
HISTORIC
MYSORE PALACE
The "'Mysore Palace"' is a historical palace in the city of Mysore in Karnataka, southern India. It is the official
residence and seat of the Wodeyars and rulers of Mysore, the royal family of Mysore, who ruled the princely
state from 1399 to 1950. The palace houses two durbar has (ceremonial meeting halls of the royal court) and
incorporates an array of courtyards, gardens, and buildings. The palace is in the central region of inner Mysore,
facing the Chamundi Hills eastward.

It is said to house one of the largest Nandi murthis in the world. The height of the murthi is
approximately 15 ft. (4.6 m) and it is approximately 20 feet (6.1 m) long.
ST. PHILOMEN CHURCH
This beautiful Cathedral was built in 1956 and is one of the largest churches in the country.
It has been built in the Gothic style with beautiful stain glass windows and lofty towers. The
illuminated church in the evening is a wonderful site not to be missed.
A priceless French statue of a celebrated Greek saint in a German cathedral located in the
heart of India is how some have described Mysore’s famous Saint Philomena’s Cathedral.
Located in the north of the city, on Cathed ral Road, is Saint Philomena’s Cathedral, among
the most majestic churches in India
SHOPPING SPACE
COMMERCIAL STREET, MG ROAD

Commercial Street is a street in Bangalore, the state capital of Karnataka, India. One of the
oldest and busiest shopping areas of the city, the street is famous for its trade in clothes,
footwear, jewellery, electronics; and food joints. With only 75 parking slots available on the
street for four-wheelers, the street is one of the most cro wded in the city.
Commercial Street lies in the heart of the city in theCentral Business District area, close to M
G Road, another popular shopping area, and Russell Market in Shivajinaga r
MANTRI SQUARE MALL
Mantri Square is a shopping mall situated in the Malleswaram locality

in Bangalore, Karnataka, Indi a. Mantri Square is one of the biggest malls in the country.

DAY OUT PACKAGES
AMUSEMENT PARK, WONDERLA
A world of splashing waters, ecstatic children to a day of pure thrill rides -Wonderla is truly
the wonderland of fun and joy. Treat yourself and your children to a day of pure thrill and
excitement at the Wonderlaamusement Park. The rides at the park are divided in terms of
kid’s rides, water rides, dry rides and high thrill rides.
GRS FANTASY PARK
the
only
amusement cum Water Park in and around Mysore. Situated just 15 minutes from Mysore,

on the Mysore -Bangalore highway, GRS is easily accessible by road. With 40 acres of plush
greenery to call its own, GRS sports a wide range of dry and wet rides that cater to the entire
family for a fun filled safe vacation for all. Come visit us – we have all the ingredients for that
perfect holiday
NANDI HILLS
Nandi Hills, or Nandidurg, is a hill fortress in the south Indian state of Karnataka. Tipu Sultan
Fort, a summer retreat of the namesake 18th-century ruler, features stone carvings and wall
paintings. Prisoners are said to have been thrown to their death from Tipu’s Drop, now
known for its panoramic views. Local Hindu temples include the hilltop Yoga Nandeeshwara
Temple, guarded by a huge statue of a bull (nandi).
CUBBON PARK
This beautiful park showcases more than 6000 species of trees and plants, along with famous
statues and well-planned avenues spread out over an area of 300 acres. Cubbon Park is
frequented by nature lovers as well as those who wish to explore the magnificent landscaping
and architecture
ADMINISTRATIVE of this park COLLEGE,
MANAGEMENT situated right in theROAD,
BANNERGHATTA heart of Bangalore city.
BENGALURU-560083
MUSEUMS
The HAL Kiran on display at the HAL Aerospace Museum. It showcases six decades of aviation heritage.
• Government Museum was established in 1865 has a rare collection of archaeological and geological
artifacts including old jewellery, sculpture, coins and inscriptions. The museum is also home to the
Halmidi inscription, the earliest Kannada inscription ever found (450 AD).KempeGowda Museum is
dedicated to Yalahanka chieftain KempeGowda (1513-1569) who is the founder of Bangalore city.
The museum is located on the first floor of Mayo Hall. The museum has KempeGowda statue as well
as poster and pictures of forts, temples, reservoir and inscriptions from his time.
• Karnataka Folk Museum is located in a 15 acre campus at Kumara Park West has an excellent
collection of Folk puppets, costumes, utensils, instruments, weapons and masks. Folk music
collections and dance videotapes.
• Gandhi Bhavan established in 1965 at Kumara Park to showcase of Mahatma life. It houses a photo
gallery, his letter, a library and audio visuals.
• HAL Aerospace Museum showcases the growth of the Indian aviation industry and HAL for-six
decades. The Museum is maintained by HAL (one of Asia's largest Aerospace companies). The
museum houses displays of various aircraft and helicopter, Aircraft engine models, Flight simulator,
a mock Air Traffic Control Tower and exhibit of Indian aviation history.
• Madras Sapper Museum & Archives, inaugurated in 1979, showcases the history of the Madras
Engineer Group (called the Sapper, established in 1803). The Madras Sapper is the oldest regiment of
the Corps of Engineer of the Indian Army. The museum chronicles their history and achievements
and houses armoury used by the regiment, medals, their attire and a sports gallery.
• NIMHANS Brain Museum showcases the human brain and its functions. It is located at
National Institute of Mental Health and Neurosciences (NIMHANS) and is run by its department of
neuropathology. The Museum seeks to help visitor see the brain, understand how it works and get an
insight into the kind of diseases that can affect it. The museum has a diverse collection of over600 brain
samples and is the result of over30 year of research. The Museum is open to the public on Saturdays
from 10 am to 3 p.m.
• Law Museum is a museum (established in 2006) dedicated to the legal profession. It was the brainchild
of Karnataka Chief justice Cyriac Joseph. The museum houses an original print of the Constitution of
India, articles and documents related to the legal profession, seals, insignia and books. It also
showcases the history of the High Court and the development of courts over the ages.

• Legends Motorcycle Museum is a collection of 20 plus vintage motorcycles in working condition
whose vintage dates back to 1924. The Museum is the lifelong collection of motorcycle enthusiast SK
Prabhu. The museum walls are covered with biker memorabilia and photographs. The collection
includes a 1924 BSA 250 cc, a Cezeta 1962 and some rare motorcycles from World War II: the BSA
M20 1942 500 cc, James ML 1942 and the Norton 500cc 1942.
THEATRE, MUSIC, AND DANCE
Bangalore is home to the Kannada film industry, which churns out about 80 Kannada movies each yea₹
Bangalore also has a very active and vibrant theatre culture with popular theatres being Ravindra Kalakshetra
and the more recently opened Ranga Shankara. The city has a vibrant English and foreign language theatre
scene with places like Ranga Shankara and Chowdiah Memorial Hall leading the way in hosting performances
leading to the establishment of the Amateur film industry. Kannada theatre is very popular in Bangalore, and
consists mostly of political satire and light comedy. Plays are organized mostly by community organizations,
but there are some amateur groups which stage plays in Kannada.
Drama companies touring India under the auspicious of the British Council and Max Müller Bhavan also
stage performances in the city frequently.
Bangalore is also a major Centre of Indian classical music and dance. The cultural scene is very diverse due
to Bangalore's mixed ethnic groups, which is reflected in its music concerts, dance performances and plays.
Performances of Carnatic (South Indian) and Hindustani (North Indian) classical music, and dance forms like
Bharat Natyam, Kuchipudi, Kathakali, Kathak, and Odissi are very popular₹ Yakshagana, a theatre art
indigenous to coastal Karnataka is often played in town halls. The two main music seasons in Bangalore are
in April– May during the Ram Navami festival, and in September–October during the Dusshera festival, when
music activities by cultural organizations are at their peak. Though both classical and contemporary music are
played in Bangalore, the dominant music genre in urban Bangalore is rock music. Bangalore has its own sub-
genre of music, "Bangalore Rock", which is an amalgamation of classic rock, hard rock and heavy metal, with
a bit of jazz and blues in it. Notable bands from Bangalore include Raghu Dixit Project, Krypton, Inner
Sanctum, Agam, All The Fat Children, and Swaratma.
Bangalore is the most sought out cosmopolitan city in India. Bangalore is the capital of southern state of
Karnataka. Kannada is the language spoken by the locals.

PART-A
MARKET FEASIBILITY

CHAPTER 4
DEMAND QUANTIFICATION

DEMAND QUANTIFICATION
It is a part of market research and broadly includes:
1. Determining the size of both current and potential market

2. Accessing market trends
3. Demand and sales forecasting
The laws of demand express the functional relationship between price and the commodity demanded.
The major 7 types of demand are;
1. Price demand:
Price demand refers to the different quantities of the commodity or service which consumers will purchase at
a given time and at given prices, assuming other things remaining the same. Price demand has inverse
relation with the price. As the price of commodity increases its demand falls and as the price decreases, its
demand rises.
2. Income demand:
Income demand refers to the different quantities of a commodity or service which consumers will buy at
different levels of income, assuming other things remaining constant. Usually the demand for a commodity
increases as the income of a person increases unless the commodity happens to be an inferior product.
3. Cross demand:
When the demand for a commodity depends not on its price but on the price of other related commodities, it
is called cross demand. Here we take closely connected or related goods which are substitutes for one
another.
For example, tea and coffee are substitutes for one another. If the price of coffee rises, the consumer will be
induced to buy more of tea and, hence, the demand of tea will increase.
4. Direct demand:
Commodities or services which satisfy our wants directly are said to have direct demand. For example, all
consumer goods satisfy our wants directly, so they are said to have direct demand.
5. Derived demand or indirect demand:

Commodities or services demanded for producing goods which satisfy our wants directly are said to have
derived demand. For example, demand for a factor of production (say labor) is a derived demand because
labor is demanded to help in the construction of houses which will directly satisfy consumers’ demand.
6. Joint demand:
In finished products as in case of bread, there is need for so many things—the services of the flour mill,
oven, fuel, etc. The demand for them is called joint demand. Similarly for the construction of a house we
require land, labor, capital, organization and materials like cement, bricks, lime, etc.

7. Composite demand:
A commodity is said to have a composite demand when its use is made in more than one purpose. For
example the demand for coal is composite demand as coal has many uses—as fuel for a boiler of a factory,
for domestic fuel, for oven for steam-making in railways engine, etc.
DEMAND DETERMINANTS
Demand for commodities and service depend on several factors. The various determinants of demand are as
follows.
• Price
It is the value of commodity expressed in terms of money and it is the most important determinant of
demand. At any particular moment it is likely that consumers will be willing to buy more of product at the
lower price and vice-versa.
• Income of the Consumer

The higher the income of consumer the demand will be higher for the product. Greater income means greater
purchasing power. Therefore with an increase in their income people can buy more goods and services.
When the income falls down automatically their demands for the food and service will be less.
• Changes in the price of related goods

The demand for the good is also affected by the prices of other goods, especially to those, which are
substitute and complements to each other. When the price of substitute for goods falls, the demand for that
goods declines and when price of the substitute rises, the demand for that good.
In the case of complementary goods also, the changes in price of any of them would affect the demand
of others.
• Taste, habits and preferences of the customers

The demand of the commodity will be affected by the taste, habits and preferences of the consumer. Taste
and preferences often changes so as result there will be change in demand.
• The number of consumers in the market

The number of the consumer depends upon substitutability of the commodities. So the demand will be frater
when the people of that area are more.

• Change in propensity to consume
The income of the people remaining constant, if the people propensity to consume rises, then out of given
income they would spend a great part of it. With the rise in the propensity to consume, the demand for goods
will increase. On the other hand, if propensity to save increases, the demand for the goods will decreases.
• Consumer expectation with regard to future prices and income

If the consumers expect that in the near future there will be a price rise, then in the present, they would
demand greater qualities of the goods. In anticipation of a rise in the future income, consumers may buy
more in the present.
• Income distribution
If the distribution of the National Income is more equal to the societies propensity to consume will be
relatively high. This means that there will be greater demand for goods. But with more unequal distribution
of income, the demand for consumer goods will be comparatively lesser.
• Law of demand
Being equal, if the prices of commodity rises the quantity of demand will falls and if the price of the
commodity falls, the quantity demanded of it will increase. According to the law of demand there is an
inverse relationship between price and quantity demanded.
Demand quantification is a part of market research and broadly include:
1. Determining the size of both current and potential market

2. Accessing market trends
3. Demand and sales forecasting
There is an increase in demand for the product when the price of the particular product falls down.
There are some cases where the demand of the products increases when the price of the product
increases.
The demand analysis is a part of the market analysis, which is a part of the market research and
broadly includes.
Determining the current and potential market.
Assessing market trends
Demand and sales forecasting
• Demand analysis
Creating and developing a new hotel project should take into account the following;

1. Demand of a hotel
2. Steps to be taken to make product feasible in market
3. Design of hospitality product compressing of rooms facilities and environment
4. Political condition
This chapter deals with demand analysis of the hospitality product is generated by incoming of
tourists and the type of the hotel for its stay. Usually foreign tourist get their wants and needs in
luxury hotels mostly as they can afford it but for domestic tourist they stay in good hotel but usually
it has been deserved that they have mixture of performs.
It is seem that majority of foreign tourist stay in five star hotel minority in three star hotels or youth
hotels or guest house of the host families’
The demand of hospitality product influenced by the following factors;
• Income of the tourist
• Transportation
• Growth of industry, business and trade
• Publicity given by tourism department
• Tourist travel on a/c of going pilgrimage, educational tours, health care and sports etc.
A market survey was conducted on few existing hotels.
Name of the hotel No. of rooms % occupancy Product
Radisson Blue 218 53 11,553
Marriot 214 68 14,552
Novotel 215 65 21.060
Aloft 251 55 13,805
Total 898 241 60,971

Product = Total no. of rooms x Occupancy
Average Occupancy = Total Product
Total Rooms
Total Product = 60,971
Total no. of rooms = 898
Therefore, Average Occupancy = 60971

898
= 67.89%
Assuming that the break even occupancy is 60% for a 5 star hotel,
So the total potential of rooms for the proposed hotel,

Total potential of rooms = Total Rooms x Average Occupancy
Break Even Occupancy
= 898 x 67.89
60
=1016.1
Demand for Rooms for the Proposed Hotel
Demand for Rooms = (Average Occupancy – BEO) x Total no. of Rooms

BEO
= (67.89 – 60) x 898

60
= 118.1

Therefore it is suggested that the proposed hotel “SHINING ” at Doddanekundi, Mahadepura, Bangalore
Karnataka 560037, and India commence rooms of 121.
Details:
The propose hotel will be located at, Doddanekundi, Mahadepura, Rameshnagar post, Bangalore City in
Karnataka 560037 India. It takes 50 minutes to travel from Bangalore Airport.
The hotel is named as shining.
Front office
Front office is the main emphasis of the hotel. This directly or indirectly contacts the guest first. So the
appearances of the front office must be attractive. It is proposed to have a lobby with the one capsule life,
where will have a front office counter with accommodate the registration and reservation cash counter along
with some play hub for kids. And travel desk must be present nears the front desk.
F and B service department

The propose hotel will have three outlets under the f&b department. One is coffee shop, other is specialty
restaurant and multi-cuisine restaurant with the bar service and small shop for bakery product.
Coffee shop
The coffee shop star is located in the ground floor next to the front office. It will have a number of 50
covers. The coffee shop is serving multi cuisine food, short s eats and meals. The proposed hotel is
expecting good business from the coffee shop.
Restaurant
The space is a specialty restaurant which serves authentic Indian delights and some oriental dishes and
having a capacity of 65 covers functioning from 6am to 10 am, 11:30 pm to 4 pm, and 6:30 pm to 11:30 pm
The restaurant will have round and square tables with the different theme and colors.
Bar
The bar Orion is in the form of a miniature pub. It consists of 40 covers.
Other features
Food buffet on seven days in a week in space but 6 days in galaxy and one day (Saturday) is ala-cart service.
The hotel has all modern security equipment and firefighting systems, in house laundry, travel desk with
concierge.

Health club
It offers you all Ayurveda massage with gym, sauna, and Jacuzzi,
Room service
The proposed hotel will have 24 hours operating room service department. They are serving food and
beverage to the rooms according to the order of guests. A well modernized kitchen that can meet the
challenges.
Conference hall
There will be a conference hall with a seating capacity of pax at different seating styles. There would be an
additional facility such as stationary and a board, conference video calling. Overhead project would be
provided on demand. This would be situated in the business Centre. “Swarms” is the propose name for the
conference hall.
Banquet hall
There would be one banquet hall with a capacity of accommodating pax which would rent out for parties
function etc.
Types of rooms
1. Deluxe room:
This room has 360sqft sizes and come with king bed or twin bed for two people.
2. Executive Deluxe room:

This room features Executive lounge access it will be a luxurious room with 360sqft area and also come with
king bed or twin bed.
3. Junior Suite room:

Room features;
• 780sqft
• Air-conditioned
• Living/sitting area
• Living room is separated
• Living area is separated from bed by privacy wall

4. Presidential suite room:
It is a spacious suit features separate living and sleeping spaces with sofa set for unwinding in style.
Room features;
• 1760sqft
• Air conditioned
• Living/sitting area
• Dining area
• Living room is separated
The shift timing at the proposed hotel will be:

SHIFTS FROM TO
1 shift 7:00 a.m 4:00 p.m
General shift 9:00 a.m 6:00 p.m
2 shift 1:00 a.m 10:00 p.m
Nigfht shift 10:00 p.m 7:00 a.m

CHAPTER 5
TECHNICAL DETAILS OF PROPOSED
PROJECT

TECHNICAL DETAILS OF PROPOSED PROJECT
Rate of per square feet area in Doddanekundi is Rs. 8000.
Total Ground to be purchased = 2.5 acres
= 108,900 sqft
Cost of land= per square Feet cost x total ground purchased

= 8000 x 108900
= Rs. 871,200,000 crores
Conveyance Cost = 15 % of cost of land

= 871,200,000 x 15/100
= Rs. 130,680,000 crores
Cost of development = 10% of cost of land

= 871,200,000 x 10/100
= Rs. 87,120,000 crores
Total cost of land for the hotel = Cost of land + Conveyance cost + Cost of
Development
= Rs. (871,200,000 + 130,680,000 + 87,120,000)
= Rs.1, 089,000,000 crores

TYPE OF THE HOTEL BUSINESS HOTEL
NAME OF THE HOTEL SHINING
LOCATION DODDANEKUNDI,
MAHADEPURA, BANGALORE
560037
NUMBER OF ROOMS 121
DELUXE ROOMS 65
EXECUTIVE SUITE ROOM 34
JUNIOR SUITE ROOM 21
PRESIDENTIAL SUITE ROOM 1
SIZE OF DELUXE ROOM 360 sqft
SIZE OF EXECUTIVE DELUXE ROOMS 360 sqft
SIZE OF JUNIOR SUITE ROOMS 780 sqft
SIZE OF PRESIDENTIAL SUITE ROOMS 1760 sqft
TOTAL BUILD UP AREA 83870 sqft
MINIMUM AREA REQUIRED 108900

BASEMENT AREA SQFT
ACCOUNTS DEPARTMENT 400
HR DEPARTMENT 400
TIME OFFICE 300
RECEIVING AREA 300
HOUSEKEEPING DEPARTMENT 1000
FIRE ESCAPE 100
STAFF CAFETERIA 600
LOCKER (MALE) 500
LOCKER (FEMALE) 300
STORE AND PURCHASE DEPARTMENT 800
CENTRALIZED AC 500
SERBIVE LIFT 100
SECURITY OFFICE 200
ENGENEERING AND MAINTAINANCE 500
CAR PARKING 5000
TOTAL 11000

GROUND FLOOR SQFT
LOBBY AND RECEIPTON 3000
G.M. OFFICE 500
SHOPPING CENTRE 400
COFFEE SHOP 1000
KITCHEN 2000
RESTAURANT / BAR 1300
GUEST LIFT 500
GYM 750
ROOM SERVICE 300
BANQUET HALL 2500
BANQUET STORE 300
CONFRENCE HALL 1800
TOTAL 14350

1st FLOOR SQFT FOR 1ST FLOOR
SERVICE LIFT 150
FIRE ESCAPE 100
GUEST STAIRS 75
SET BACK AREA AND CORRIDOR 800
SERVICE STAIRS 75
HOUSEKEEPING PANTRY 200
GUEST LIFT 100
DELUXE(18*20) 13 ROOMS 4680
EXECUTIVE DELUXE (18*20) 7 ROOMS 2520
JUNIOR SUITS (26*30) 4 ROOMS 3120
TOTAL 11,820

2nd FLOOR SQFT FOR 2ST FLOOR
SERVICE LIFT 150
FIRE ESCAPE 100
GUEST STAIRS 75
SERVICE STAIRS 75
GUEST LIFT 100
TOTAL 11,820

3rd FLOOR SQFT FOR 3ST FLOOR
SERVICE LIFT 150
FIRE ESCAPE 100
GUEST STAIRS 75
SERVICE STAIRS 75
GUEST LIFT 100
TOTAL 11,820

4th FLOOR SQFT FOR 4ST FLOOR
SERVICE LIFT 150
FIRE ESCAPE 100
GUEST STAIRS 75
SERVICE STAIRS 75
GUEST LIFT 100
TOTAL 11,820

5TH FLOOR SQFT
SERVICE LIFE 150
GUEST STAIRS 75
GUEST LIST 100
SERVICE STAIRS 75
DELUXE ROOM 4680
EXECUTIVE DELUXE ROOM 2520
JUNIOR SUITE ROOM 3900
PRESIDENTIAL SUITE ROOM 1760
TOTAL 11240

CHAPTER 6
RECOMMENDED MARKET MIX

RECOMMENDED MARKET MIX
The new hotel project feasible as per the demand analysis should adopt a right marketing strategy in order
to capture a good market share of hospitality product outlined in earlier chapter needs to be from promoted
to attract tourists. The formula for market strategy concept says successful marketing it is necessary to look
into following 7 elements.
1. Place
2. Product
3. Price
4. Promotion
5. Process
6. Physical evidence
7. People
Marketing mix is a significant tool for creating the right marketing strategy and its implementation through
effective tactics. The purpose of a company’s marketing mix to control its making plan. An effective
marketing mix includes the 4 PS: product, price, place and promotion or variable are with the fold of the
organization and therefore here to be properly shaped to achieve marketing and company goals. The external
marketing force refused to us uncomfortable element. They are as follows:
 Customer buying behaviour
 Traders behaviour
 Competitive behaviour
 Government behaviour

1. Place
Place is the one of the major part for locating the hotel. The selection of the place can includes suitable
place, speciality of area, geographic condition of the area, the tourist place in area. The main thing is the
place decision in its convenient locations. The central part of town is easily accessible while making place
decision. It should also keep in mind.
The location decision influences the sensitivity of marketing decision. If we select suitable place for
constructing a hotel the on flow and inflow of tourist or user would not be described. A market manager
would find convenient to help policy making a suitable location development plan as the environment
condition can’t remain static.
2. Product
Hotel is a product which requires many mixes to be easily assemble this necessities designed for a suitable
product mix in true with the changing needs are requirements of users of the hotel services. Induction and
elimination processes are considers significant on the very context. The management of guest, beverages,
foods, telephone, property, operation maintenance energy or power can’t be uniform in all categories. The
product decisions are also influenced but the classification of ten hotels into different categorised.
3. Pricing
The major factor in market mix is pricing. Market mix is making of pricing decision. Though in the
hospitality business it difficulty to take decision regarding particular pricing strategy as number of times
faces problems of seasonal fluctuation. Still the hotel organization has to be very particular in adopting this
policy.
Hotel classification comities feels the hotel rates not be allowed to rise unchecked and accomplish this hotel
industry should be required to introduce internal.
Discipline to keep price at reasonable level, the pricing decision are besets with many problems. Thought
fixing the hotel tariff is just like pricing any product or service. The hotel market are have to be careful that
the owner. In the hotel industry the problem of the pricing fixation is more pronounced. The room tariffs are
of three types: the American plan, Modified American plan, European plan. The American plan includes
three full meals and rooms. Modified American plan includes the price of room and breakfast, lunch or
dinner. No meal are includes in room rates under European plan.
In making pricing decision it is also important that we are not under ourselves. In rate fixing and users
physiology and behaviour should also kept in mind. Some guests are found extremely sensitive to price level
and for them reduced rate would normally be a stimulant. In market mix pricing is an important factor. The
505 of total revenue is from sale of room. As the product is exclusive and offers a high standard, the pricing
will be little high. Room rates are quite reasonable. The room tariff of the proposed hotel is given:-

 Deluxe Room: 8,500
 Executive deluxe Room: 10,500
 Junior Suite: 15,000
 Presidential Suite: 35,000

The above mentioned room prices are all excluding the tax. Extra bed is chargeable i.e. Rs. 1500 + tax
Tax = 7.5 %
Luxury Tax= 14.5%
4. Promotion
Promotion can be done through four ways. They are as follows:-
• Advertising
• Publicity
• Personal selling
• Sales promotion
Advertising
Today it is an important sources increasing business. It can be done through mainly travel guides, which are
available in market for tourist.
Newspaper and magazines play an important role in advertising.
Another factors is the boards and bummers on the side of the highways near cross roads, heart of the city,
residential areas etc.
Publicity
Publicity can be sponsoring events of public interests holding press meetings. The publicity the hotel is
achieved through the staff by their behavior and character. If a guest gets maximum pleasure or enjoyment,
he will certainly say his feelings to his relatives and friends and those who come to meet.

Personal selling:
Some of the people selected to the hotel job for marketing. They should be very polite in their behaviors and
good looking. The language must be fluent and clear also. Both females and males are selected for this
purpose. They are supposed to go to companies and market for the hotel, their banquet hall for conference;
seminars or practices etc., the different sale tricks of the people will increase the profit of the hotel. General
journals can carry striking advertisements will turn the minds of the residents of it’s different types of tests
in different seasons based on menu of different states will attract people from different parts of the country.
Sales promotion
Guests who have reserved room will be given few pick up from airport/railway station and also it can make
the guest stay more pleasant and enjoyable. This is achieved by wishing the guests, having compliments like
pens, scribbling pads, match boxes etc. sweets and fruits can be given to the guests without charging wishing
the guest by sending cards on their birthdays, weddings anniversaries. It will automatically make a very
good impression on each guest about the hotel.
This all will help to increase the business of the hotel by providing simple facilities to the guest. There are
two alternative marketing strategies.
 Shot gun approach

 Riffle approach
Shot gun approach
This is the market which is tested as a single unit for an aggregate market, despite the difference of everyone
in the market it can be adequately satisfied with one marketing mix. So the total market will be target of the
company. This kind of mass marketing is known as shot gun approach.
Riffle approach
In this the total market consists of several segments with different significant enough of that are marketing
mix will not satisfy everyone or even a majority of the market.
The strategy employees separate programs making activities. The advantage of target market is that the
seller will able to identify the market and can provide better following and products.

5. Process
Process means the speed with which the products and services of the hotel arrives at the market. They should
be available at the appropriate time. It is the job for the sales department to analyze and forecast the future
demand of the products in the market; in time. If we are behind out competitors the result will be loss of
customers profit and most important thing is the loss of opportunities to find a new market.
6. Physical evidence
Physical evidence means the environment in which the service or product is delivered with the physical or
tangible commodities and the situation where the firm and the customer interact. There are two types of
physical evidence. Which are:-
Peripheral evidence
It is actually possessed and taken away by the customer as a part of the purchase of the service by itself is of
no value.
Essential evidence
It cannot be possessed by the customer. For e.g. size and design, interior decoration, décor of the hotel. This
gives the customer a feeling about Bangalore. This meets customer satisfaction.
7. People
It is the most important ingredient in the marketing mix. People are the backbone of any organization. The
people are responsible for the designing of a product or service. While designing a product or serviced the
marketers need to have through knowledge about the customers likes, dislikes, behavior, attitudes etc. this
helps the marketers to get an overall idea about the customer’s choice interacts. They can earn a good profit
margin and eventually it will meet customers’ needs and offset ultimate customer satisfaction.
Target market
The proposed hotel is located in the hotel closely by and easily accessible to important places it is within
easy rich of all tourists and business Centre.,
The hotel will be equally beneficial to tourist and businessperson. The hotel caters for all kind of guests
providing excellent services.

CHAPTER 7
CONCLUSION

CONCLUSION
The tourism industry in India is one of the fastest growing industries, earning precious foreign currency. As
rapid of growing population there is earning surplus purchasing power and the demand for the leisure
activities are developing so tourism industries are developing. Since the tourism industry is developing
people are travelling a lot so there is a recruitment of accommodation, food and beverage. As we all know
that India is a land of great diversity. It is a very rich in nature. One will find everything here. That is the
main reason that India is a major tourist attraction worldwide. But we fail to take advantage. The main
reason for the failure is poor marketing of the tourist product and poor infrastructure facilities available at
the destination.
Now a day’s even inbound tourism is witnessing a decreasing trend, to focus Bangalore as an international
tourist destination. A common tourism policy should be adopted throughout the state. Our infrastructure has
to be improved like road transportation, accommodation facilities, connectivity by air, all basic facilities etc.
Moreover a uniform taxation policy is required for foreign tourists. Measures should be taken for domestic
tourist to create confidence in them. The need of training is required for the work force who is dealing with
the tourist product. They are required to maintain high professional standards.
Education and training is needed for those who required. The government should be able to provide the
tourists all safety.
Travel agency, hotels and KTDC play an important role for promoting tourism in Bangalore. They are the
one who facilitates tourists and provides information to them. The working of the agency is to satisfy the
customer. But they need help from the government to promote tourism. The corporation from tourist and
local community is also required.

PART B
FINANCIAL VIABILITY

CHAPTER 8
INTRODUCTION TO FINANCIAL ASPECT OF THE PROPOSED PROJECT

INTRODUCTION TO FINANCIAL ASPECT OF THE PROPOSED PROJECT
The financial viability means to find out, whether it is financially viable to start a 5 star property as this
project report is based on 5 star hotels. In simple words, financial viability is to find out, starting a five star
hotel is financially successful or not.
The financial planning includes the selection of objectives and selection of policies, programs and
procedures to achieve the objective. The various consideration relating to the present capital needs,
requirements of investors and possibilities of expansion resolve themselves into a present determination of:
 The amount of capital to be raised.

 The form and proportionate amount securities to be issued.
 Policies as to administration of capital
It is not too much to emphasize the correct estimate of the present and future needs of the capital; a sound
capital structure and proper projection of capital will lead to success of the company.
PROJECT PROFILE
NAME OF THE PROPOSED HOTEL SHINING
LOCATION DODDANEKUNDI, MAHADEPURA,

BANGALORE
CATEGORY OF HOTEL 5 STAR
ROOM STATEMENT
DELUXE ROOMS 65
EXECUTIVE DELEXUE ROOMS 34
JUNIOR SUITE ROOMS 21

PRESIDENTAL SUITE ROOMS 1
TARIFF STRUCTURE
DELUXE ROOMS 8,500
EXECUTIVE DELUXE ROOMS 10,500
JUNIOR SUITE ROOMS 15,000
PRESIDENTIAL SUITE ROOMS 35,000
PROPOSED FACILITIES
COFFEE SHOP STAR
SPECIALITY RESTAURANT SPACE
MULTI-CUSINE RESTAURANT GALAXY
BAR ORION
ROOM SERVICE 24 HOUR
BUSINESS CENTRE OUT SOURCE
LAUNDRY OUT SOURCE
HEALTH CLUB
BANQUET HALLCONFERENCE HALL SWARMS
CONFRENCE HALL PLUTO
TRAVEL DESK

FINANCIAL INFORMATION
1. Estimate cost of project = 6300
2. Means of finance
Debt
(A) Long term loan (SBT) = 2500

Equity
(B) Promoters contribution = 4005
(C) Subsidy = 50
3. Breakeven point = 40.6%
4. Average return on investment = 16.03%
5. Debt service coverage ratio = 1.45
6. Debt equity ratio = 0.61:1
7. Sensitivity analysis =2.70:1
8. Cost benefit analysis = 0.51
9. Payback period =6 year 2 months

CHAPTER 9
COST OF THE PROJECT

FIXED ASSETS:
Assets are properly and possession of a business like stock, land, building etc. those assets which are
acquired and held permanently in the business and used for the purpose of earning profit are called assets.
COST OF LAND
Cost of land = per square Feet cost x total ground purchased
= 8000 x 108900
= Rs. 871,200,000 crores
Conveyance Cost = 15 % of cost of land

= 871,200,000 x 15/100
= Rs. 130,680,000 crores
Cost of development = 10% of cost of land

= 871,200,000 x 10/100
= Rs. 87,120,000 crores
Total cost of land for the hotel = Cost of land + Conveyance cost + Cost of
Development
= Rs. (871,200,000 + 130,680,000 + 87,120,000)
= Rs.1, 089,000,000 crores

COST OF THE PROJECT
The project cost is the total project cost includes design fees, material cost, construction cost, permits fees,
land, furnishing, financing and all other cost that were incurred in complete the project.
PARTICULARS Rs. In Lakhs
COST OF LAND 10890.00 crores
COST OF BUILDING AND CIVIL WORKS 3345.79 Crores
PLANT AND MACHINERY 152.00
FURNITURE AND FIXTURE 176.246
MISCELLANEOUS ASSETS 80.22
MARGIN OF CONTIGENCY 537.34
PERLIMINARY AND PRE-OPERATIVE 192.79

EXPENSES
TOTAL 15374.386
(+) INTEREST DURING IMPLEMENTATION 301.35
GRAND TOTAL 15675.736 crores

CHAPTER 10
MAN POWER REQUIREMENT AND COST

MAN POWER REQUIREMENT
Service is the integral part of any hotel, which gives it an ambience, good will and reputation. Hence more
importance has to be given to select, force team of personnel in various department for a 5 star hotel of high
standard. It is necessary to have a small hard working, qualified and efficient team.
The success of any service establishment depends to a large extent on manpower and productivity or its
work force. Success in personnel management might be attached with good planning.
SL. NO. DESIGNATION NUMBER
1 GENERAL MANAGER 1
2 F & b MANGER 1
3 F.O. MANAGER 1
4 EXECUTIVE CHEF 1
5 EXECUTIVE HOUSEKEEPER 1
6 CHIF ACCOUNTANT 1
7 STORE MANAGER 1
8 PURCHASE MANAGER 1
9 STORE SUPERVISOR 1
10 CHEF DE PARTIES 3
11 ENGINEER 1

12 TECHNICIANS 6
13 CAPTAINS 6
14 STEWARDS 25
15 BANQUET MANAGER 1
16 ROOM BOYS 20
17 H.K. SUPERVISOR 5
18 SECURITY MANAGER 1
19 SECURITY GUARDS 14
20 SALES & MARKETING MANAGER 1
21 ASST. SALES & MARKETING MANAGER 1
22 SALES & MARKETING ASSOCIATES 6
23 ACCOUNT ASSOCIATES 5
24 RESTAURANT MANAGER 1
25 H.R MANAGER 1
26 ASST. H.R.M. 1
27 H.R. EXECUTIVE 1
28 FRONT OFFICE ASSISTANT 12

29 SOUS CHEF 2
30 COMMIS 20
31 COOKS 6
32 KITCHEN STEWARDING MANAGER 1
33 KITCHEN STEWARDING BOYS 10
34 BELL DESK MANAGERBELL CAPTIAN 1
35 BELL BOYS 8
36 BELL CAPTAIN 2
37 DOOR KEEPER 3
38 FLORIST 3
TOTAL 176
SALARY & WAGES (YEARLY)

SL. NO. DESIGNATION NUMBER AMOUNT TOTAL
OF STAFF IN
LAKHS
1 GENERAL MANAGER 1 15,00,000 24.00
2 F & b MANGER 1 60,000 9.60
3 F.O. MANAGER 1 60,000 9.60

4 EXECUTIVE CHEF 1 60,000 9.60
5 EXECUTIVE HOUSEKEEPER 1 60,000 9.60
6 CHIF ACCOUNTANT 1 60,000 9.60
7 STORE MANAGER 1 40,000 7.2
8 PURCHASE MANAGER 1 50,000 7.2
9 STORE SUPERVISOR 1 30,000 4.8
10 CHEF DE PARTIES 3 25,000 9.00
11 ENGINEER 1 30,000 4.2
12 TECHNICIANS 6 18,000 14.4
13 CAPTAINS 6 20,000 14.4
14 STEWARDS 25 15,000 45.00
15 BANQUET MANAGER 1 50,000 4.8
16 ROOM BOYS 20 15,000 36.00
17 H.K. SUPERVISOR 5 25,000 12.0
18 SECURITY MANAGER 1 25,000 2.4

19 SECURITY GUARDS 14 12,000 25.2
20 SALES & MARKETING 1 50,000 4.8

MANAGER
21 ASST. SALES & MARKETING 1 30,000 3.0

MANAGER
22 SALES & MARKETING 6 22,000 10.80

ASSOCIATES
23 ACCOUNT ASSOCIATES 5 15,000 9.00
24 RESTAURANT MANAGER 1 35,000 3.6
25 H.R MANAGER 1 65,000 7.80
26 ASST. H.R.M. 1 25,000 3.00
27 H.R. EXECUTIVE 1 20,000 1.80
28 FRONT OFFICE ASSISTANT 12 15,000 21.60
29 SOUS CHEF 2 40,000 10.80
30 COMMIS 20 12,000 36.00
31 COOKS 6 10,000 8.64
32 KITCHEN STEWARDING 1 18,000 2.4

MANAGER
33 KITCHEN STEWARDING 10 10,000 12.00

BOYS
34 BELL DESK MANAGERBELL 1 25,000 3.00

CAPTIAN

35 BELL BOYS 8 20,000 4.8
36 BELL CAPTAIN 2 10,000 9.60
37 DOOR KEEPER 3 12,000 4.32
38 FLORIST 3 8,000 2.88
TOTAL 176 395.4
Salary per annum = Rs. 395.4

Benefits (10% of total salary) = Rs. 39.54
Training charges (2% of salary) = Rs. 7.90
Total salary and wages = Rs. 442.84
Salary per monthly = Rs. 32.91

CHAPTER 11
SALES REVENUE

SALES REVENUE
Management, investors and analysis monitor closely the amount and trend of sales. An increasing values
trend indicates growth and probability of an increase in earnings.
Gross sales:
Gross sales consist of total sales for cash and total sales on credit during a given accounting period.
Sales return:
Sales return is merchandise returned by a buyer. It happens when customer finds any defects on the product
and may agree items keep such goods if an allowance, called sales allowance.
Sales revenue is generated as earned as if the following conditions have been fulfilled.
The seller has passed the legal ownership of the goods to the buyer.
The selling price of the goods has been established.
The buyer has paid the purchase price of the goods or its certain that he will pay the rice.
Revenue from sales

Items 1st year 2nd year 3rd year 4th year 5th year
Operating level 65% 70% 75% 80% 85
Room sale 2988.14 3218.00 3447.86 3677.74 3907.58
F & B sales 674.89 726.88 778.8 830.73 882.65
Total 3663.03 3944.88 4226.66 4508.47 4790.23

CHAPTER 12
OPERATIONAL EXPENSES

OPERATIONAL EXPENSES
SL. ITEMS 1ST 2ND YEAR 3RD 4TH 5TH

N YEAR YEAR YEAR YEAR
O.
1 COST OF F & B SALES(40% OF 269.9 290.75 311.52 332.29 353.06

TOTAL F & B SALES) 5
2 ELECTRICITY (5 % OF TOTAL 183.1 197.24 211.33 225.42 239.55

SALES) 5
3 SALARIES ( 10% INCREASE AFTER 442.8 487.12 535.83 589.41 64.83

EVERY YEAR) 4
4 ADMINISTRATION & 73.26 78.89 84.53 90.16 95.80

MANAGEMENT (2% OF TOTAL
SA;LES)
5 ADVERTISEMENT & PUBLICITY 183.1 197.24 211.33 225.42 239.55

(5% 5
POF TOTAL SALES)
6 INSURANCE & LEGAL EXPENSES 36.63 39.44 42.26 45.26 47.90

(1% OF TOTAL SALES)
7 MISCELLANEOUS (2% OF TOTAL 73.26 78.89 84.53 90.16 95.80

SALES)
8 TELEPHONE (1%) 36.63 39.44 42.26 45.08 47.90
9 REPAIRS & MAINTENANCE (1%) 36.63 39.44 42.26 45.08 47.90
TOTAL 1335. 1448.45 1565.85 1688.10 1815.81

5
77

CHAPTER 13
WORKING CAPITAL REQUIREMENT

WORKING CAPITAL
It is the capital of a business which is used in its day-to-day trading operations, calculated as the current
assets minus the current liabilities. Current assets consist of stock, each balance, bank balance, debtors and
so on. Current liabilities consist of creditors, bills payable, bank overdraft etc.
DETERMINATION OF WORKING CAPITAL
 Nature of the business

 Scale of operation
 Growth and expansion
 Length of operating of business
 Production policies
 Rapid of turnover
 Fluctuations in supplies
 Operating efficiency
 Credit policy
 Profit level
ADVANTAGE OF WORKING CAPITAL
 Increase solvency
 Increase goodwill
 Easy loans
 Cash discount
 Regular payment of salaries and wages
DISADVANTAGES OF HAVING EXCESS WORKING CAPITAL
 Idle funds
 Unnecessary
 High bad debts
 Inefficient
 Low return of investment (R.O.I) ➢ Value of shares may come down

 Encourages speculation
CONSEQUENCES OF IN-ADEQUATE CAPITAL
 It cannot meet short-term obligation

 Bulk buying is not possible
 It damages the reputation of firm
 Utilization of fixed assets is not possible
 Return on investment decreases
SOURCES OF WORKING CAPITAL

Short term sources
 Trade credit or purchases

 Bank, credit-od, cash bills, discounting
 Customers advances
 Short term deposits
Long-term sources
 Trade loans
 Public deposit
 Redeemable debenture
 Redeemable preference shares
 Equity share

Raw Accounts Salaries & Cash flow Rs. In
materials(15days receivable wages (one Lakhs
stock of 40% f & b 20% of total month)
sales) sales
for one
month
Ratio 1:1 4:1 0:1 0:1 Total
1st year 5.54 48.84 - - 54.38

bank
Owner 5.54 12.2 36.90 1.00 55.64
Total 11.09 61.05 36.90 1.00 110.02
II year bank 5.48 52.59 - - 58.07
Owner 5.48 13.15 40.59 1.00 60.22
Total 11.94 65.74 40.59 1.00 118.29
III year 6.40 56.35 - - 62.75

bank
Owner 6.40 14.09 44.65 66.14

Total 12.80 70.44 44.65 128.89
IV year 6.82 60.11 - - 66.93

bank
Owner 6.82 15.03 49.11 1.00 71.96
Total 13.64 75.14 49.11 1.00 138.89
V year bank 7.25 63.86 - - 71.11
Owner 7.25 15.97 15.97 54.02 78.24
Total 14.50 79.83 79.83 54.02 149.35

CHAPTER 14
FINANCING THE PROJECT

FINANCING THE PROJECT
Project finance is the long-term financing of infrastructure and industrial projects based upon the projected
cash flows of the project rather than the balance sheets of its sponsors. Usually, a project financing structure
involves a number of equity investors, known as ‘sponsors’, as well as a ‘syndicate’ of banks and other
lending institutions that provide loans to the operation. They are most commonly non-recourse loans, which
are secured by the project assets and paid entirely from project cash flow, rather than from the general assets
or credit worthiness of the project sponsors, a decision in part supported by financial modeling. The
financing is typically secured by all of the project assets, including the revenue-producing contracts. Project
lenders are given linen on all of these assets and are able to assume control of a project if the project
company has difficulties complying with the loan terms.
To find out means of finance Rs. In lakhs
Debit
A) Long term loan from I.D.B.I. 2450
Equity
b) promoters contribution 3905.74
c) subsidy 50.00
Total 6405.74

CHAPTER 15
PROFITABILITY STATEMENT

PROFITABILITY STATEMENT
Profitability is the primary goal of all business ventures. Without profitability the business will not survive in
the long run. So measuring current and past profitability and projecting future profitability is very important.
Profitability is measured with income and expenses. Income is money generated from the activities of the
business. For example, if crops and livestock are produced and sold, income is generated. However, money
coming into the business from activities likes borrowing money to not create income. This is simply a cash
transaction between the business and the lender to generate cash for operating the business or buying assets.
Sl. Items 1st year 2nd year 3rd year 4th year 5th year
No.
A Operating profit 2327.53 2496.43 2660.81 2820.37 2974.42

(income-expenditure)
1 Interest on Long term 301.35 241.08 180.81 120.54 60.27

loan
2 Depreciation 423.37 370.08 324.59 285.74 252.17
3 Pre operate and 192.79 192.70 192.79 192.70 192.79

preliminary expenses
written off
4 Interest on b.o.d. 6.76 7.38 7.97 8.81 9.73

(working capital)
B Profit before tax 1403.26 16185.1 1954.65 2212.49 2459.46

A=(1+2+3+4)
5 Corporate tax (30% of 420.97 505.53 586.39 663.74 737.83

B)

6 Surcharge - - - - -
6A Education cess(3% of 12.62 15.16 17.59 19.91 22.13

5+6)
C Profit after tax B=(5+6- 433.59 520.69 603.98 683.98 759.96

6A)
7 Depreciation 423.37 370.08 324.59 285.74 252.17
8 Pre-operative and 192.79 192.79 192.79 192.79 179.79

preliminary expenses
written off
D Surplus available 1049.79 1083.56 1121.36 1162.18 1204.92

(C+7+8)
9 Long term loan 490 490 490 490 490

installment
E Net cash flow (D-9) 559.79 593.56 631.36 672.18 714.92

CHAPTER 16
CASH FLOW STATEMENT

CASH FLOW STATEMENT
In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial
statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents,
and breaks the analysis down to operating, investing and financing activities. The statement indicates the
sources from where cash has been generated and uses for which cash, has been applied the resultant is the
changes in cash balance over the period.
SOURCES OF CASH
 Cash from operation

 Cash generated but issue of the share capital
 Increase in short term and long term
 Reduction in or disposal of assets other than cash
USES OF CASH
 Purchase of assets
 Reduction or discharge of liability
 Redemption of preference share capital
 Payment of cash dividend to share holders
A. Cash flow Year ended Year ended Year ended Year ended Year ended
from 1st year 2nd year 3rd year 4th year 5th year
operation
activities
Net profit before tax 186.33 1705.87 718.30 1447.82 1450.55
Adjustments for

Depreciation 1165.55 1297.57 1007.48 991.75 1678.07
Non cash 41.35 - - - -

miscellaneous
expenses
Effect of rate 87.74 3.77 - - 314.80

exchange
Liabilities written - 3.95 70.13 21.54 -

off
Profit on sale of 269.78 32.83 - - 10.63

fixed assets
Provision for - 2.20 - - -

doubtful advances
Provision for 0.50 - 116.96 533.40 -

diminution in value
of investment
Interest income 66.43 66.92 60.98 10.75 72.48
Dividend income 21.88 132.92 141.64 257.06 7.75
Interest expenditure 1690.83 704.18 450.13 406.50 461.84
Total 2556.03 3476.97 2160.38 2546.45 3835.66

Trade and other 1234.09 30.52 760.80 85.74 315.44
Receivables
Inventories 48.89 14.28 9.94 56.34 16.37
Trade and other 246.10 176.14 87.93 191.45 279.69

payables
Cash generated 3987.33 3284.59 1477.57 2595.82 3816.28

from operations
Payment of direct 363.97 506.69 141.44 375.95 604.91

taxes
NET CASH FROM 3623.36 2777.90 2219.87 1336.13 3211.37

OPERATING
ACTIVITIES
Cash flow from

investing activities
Purchase of fixed 2358.85 1895.71 971.75 634.47 1498.30

assets
Purchase of 11.51 13.96 - - -

furniture’s,
fixtures,
equipment
Sale of fixed assets 666.67 143.51 44.60 20.07 65.26

Purchase of 2101.79 229.08 681.40 109.61 0.01
investments
Loan to associate 320.00 - 45.17 - -
Sale of investments 4.80 - 116.91 180.81 -
Interest received 42.34 54.39 61.85 10.98 70.51
Decrease in capital - 197.73 6.62 4.49 190.04

advance
Increase in other 216.08 62.40 - - -

bank balances
Dividend received 21.87 4.14 141.64 257.06 7.75
Cash used in 3632.55 1801.38 1236.36 278.05 15343.88

investing activities
Cash flow from

financing activities
Proceeds from rights 11788.62 - - - -

issue of shares
Proceeds from issue - 139.60 281.03 64.24 -

of share capital

Right issue expenses 111.14 - - - -
Proceeds from -
borrowings
Term loans 4716.52 767.01 1700.00 750.00 576.13
Cash credits from - 102.57 - 339.55 180.35

bank
Unsecured loans 75.21 - - - -
Loan from finance 208.45 - - - -

companies
Proceeds from short 1.78 780.00 500.00 1000.00 100.00

term loans
Proceeds from - 10.00 - - -

unsecured loans
Loan management - 0.87 - - -

fees
Proceeds from 4.40 - - - -

advance against
equity
Payment of

Term loan from 7213.98 6271.93 2200.00 - 400.00
banks
Cash credit from 532.44 86.13 - 339.55 25.55

banks
Short term loans - 557.75 500.0 1000.00 600.00
Unsecured loans 849.66 44.29 - - 210.28
Loan from finance 154.32 - - - 1.92

companies-
Loan syndication 0.05 - - - -

fees and upfront
fees
Interest paid 1719.00 793.87 442.48 414.83 341.20
Dividend paid 539.23 615.60 637.68 513.47 720.27
Tax on dividend 76.16 88.14 91.95 67.50 69.00
Net cash used in 5589.36 6659.40 9.09 67.50 69.00

financing activities

Net increase in cash 5589.36 5682.88 90.68 43.53 155.75
and cash
equivalents
(A+B+C)
Cash and cash 643.79 6624.70 75.98 166.66 1212.76

equivalent at
beginning of the
year
Less:- adjustments 0.41 - - - -

on account of
inclusion as
subsidiary
Add:- adjustments 391.96 - - - -

on account of
inclusion of
jointly controlled
entry
Cash and cash 6624.70 941.82 166.66 123.13 1368.51

equivalent at the
end of the year

CHAPTER 17
BREAK EVEN ANALYSIS AND DEBT SERVICE RATIO

BREAK EVEN ANALYSIS
A breakeven point is achieved when total cost equals total talking and therefore neither profit nor loss made.
The breakeven analysis is also known as “cost volume profit relationship”.
PRACTICAL APPLICATIONS OF B.E.P.
• Pricing decision
• Make or buy decision
• Product/sales mix
• Utilization of limiting factors
• Alternative methods of production
• Discontinuance of product line
• Expansion of capacity
• Profit planning
(Assuming for 3rd year operation, occupancy – 75%)

a) Estimate revenue 4226.66
b) Fixed cost
1. Electricity & power 84.53
2. Salaries & wages 535.83
3. Interest on long term loan 180.81
4.Insurance & legal 42.26

expenses

5.Depreciation 324.59
6.Advertisement 211.33
7. Administration & general 84.53

expenses
Total 1463.88
c) Variable cost
Raw materials 311.52
Electricity and power 126.79

(60%)
Repair & maintenance 42.26
Interest on BOD 7.97
Miscellaneous expenditure 84.53
Total 573.07

CONTRIBUTION
Contribution = Estimated cost – variable cost
= 4226.66 – 573.07
= 3653.59
Breakeven point = fixed cost X 100

Contribution
= 1463.88/3653.59 X 100
= 40.06%
Absolute break even = Breakeven point X occupancy

100
= 40.06 X75/100
= 30.05 %
Break even turnover = Estimated revenue X absolute breakeven point

Occupancy %
= 4226.66 X 30.05/75
=1693.48 lakhs
DEBT SERVICE RATIO
• Net income to debt service is called debt service ratio

• It is the ratio used to test the debt- servicing capacity of a firm
• This ratio indicates whether the amount of profit is adequate to repay loan instalments with interest
• It is calculated by dividing the net profit before interest and taxes by fixed interest charges.

Formula
D.S.C.R = Net profit (before interest and taxes)

Fixed interest charges
Average (A) 1st year 2nd year 3rd year 4th year 5th year
Profit after tax 433.59 520.69 603.98 683.65 759.96
Preliminary 192.79 192.79 192.79 192.79 192.79

&
preoperative
expenses
Interest on long 301.35 241.08 180.81 120.54 60.27

term loan
Total (in lakh) 927.73 954.56 977.58 996.98 1013.02
Coverage 1st year 2nd year 3rd year 4th year 5th year
(B)
Interest on 301.35 241.08 180.81 120.54 60.27

long term
Installment 490 490 490 490 490

on long term
loan

Total (in 791.35 731.08 670.81 610.54 550.27
lakh)
Average D.S.R. = Total coverage A / Total coverage B

= 4869.87/3354.05
= 1.45

CHAPTER 18
COVERAGE RATIO

COVERAGE RATIO
The coverage ratio is a measure of company’s ability to meet its financial obligations. In broad terms, the
higher the coverage ratio, the better the ability of the enterprise to fulfill its obligations to its lenders. The
trend of coverage rations over time is also studied by analysts and investors to ascertain the change in a
company’s financial position. Common coverage ratios include the interest coverage ratio, debt service
coverage ratio and th asset coverage ratio.
Debt coverage ratios 1st year 2nd year 3rd year 4th year 5th year
Interest cover 5.94 4.43 3.19 3.64 1.58
Total debt to owners fund 0.07 0.10 0.14 0.07 0.23
Financial charges coverage 10.00 6.87 5.43 5.35 2.14
Financial charges coverage 8.21 5.78 4.37 4.96 1.98

after tax

CHAPTER 19
RATIO ANALYSIS

RATIO ANALYSIS
A ratio analysis is a quantitative analysis of information contained in a company financial statement. Ratio
analysis is based on line items in financial statements like the balance sheet, income statement, and cash
flow statement, the ratios of one item- or a combination of items- to another item or operating and financial
performance such as its efficiency,
liquidity, profitability and solvency. The trend of these ratios over time is studied to check
whether they are improving or deteriorating. Ratios are also compared across different companies in the
same sector to see how they stack up, and to get an idea of comparative valuations. Ratio analysis is a
cornerstone of fundamental analysis.
Particulars (in %) 1st year 2nd year 3rd year 4th year 5th year
Investment valuation ratios
Face value 2.00 2.00 2.00 2.00 2.00
Dividend per share 1.10 1.10 0.90 1.90 0.90
Operating profit per share 4.60 4.04 3.51 4.30 3.80
Free reserves per share - - - - -
Bonus in equity capital 47.82 47.82 47.82 47.82 47.82
Profitability ratios
Operating profit margin 19.85 18.76 17.71 22.31 21.12

(in %)

Profit before interest and tax 10.14 10.29 8.50 13.31 11.34
margin
Gross profit margin 10.47 10.70 8.83 13.86 12.61
Cash profit margin 16.15 14.76 15.16 17.81 13.68
Adjusted cash margin 7.30 14.76 15.16 17.81 13.68
Net profit margin 7.07 7.72 4.49 11.11 6.28
Adjusted net profit margin 6.98 7.43 4.32 10.66 5.64
Return on capital employed 3.96 6.75 5.24 7.72 8.47
Return on net worth 3.96 3.92 2.12 5.08 2.73
Adjusted written on net worth 42.62 3.70 3.24 4.62 2.92
Written on assets excluding 46.62 42.42 41.97 42.09 41.21

revaluations
Written on assets including 46.49 46.32 45.92 46.10 45.28

revaluations

Written in long term funds 7.27 7.12 5.64 7.75 8.47
Liquidity and solvency

ratios
Current ratios 0.81 0.80 0.67 0.95 1.50
Quick ratio 1.05 1.06 1.14 0.92 1.45
Debt equity ratio 0.07 0.10 0.14 0.07 0.23
Long term debt equity ratio 0.03 0.04 0.06 0.06 0.23
Management efficiency ratio
Inventory turnover ratio 33.86 30.97 33.23 33.27 30.51
Debtors turnover ratio 7.38 7.16 7.20 8.26 9.14
Investments turnover ratio 33.86 30.97 33.23 33.27 30.51
Fixed assets turnover ratio 0.47 0.43 0.40 0.42 0.39

Total assets turnover ratio 0.51 0.46 0.41 0.43 0.36
Assets turnover ratio 0.46 0.42 0.39 0.37 0.35
Average raw material holding - - - - -
Average finished goods held - - - - -
No. of days in working capital 69.97 77.67 87.67 51.28 178.96
Profit and loss account

ratios
Material cost composition - - - - -
Imported composition of raw 15.66 15.01 4.44 6.29 5.95

material consumed
Selling distribution cost of - - - - -

composition
Expenses as composition of 38.90 46.85 42.56 42.01 46.66

total

Cash flow indicators ratios
Dividend payout ratio net 65.06 66.15 100.93 51.35 79.70

profit
Dividend payout ratio cash 28.48 32.37 33.90 29.17 33.84

profit
Earning retention ratio 34.94 29.91 33.82 43.50 25.41
Cash earnings retention ratio 71.52 66.72 71.18 69.24 67.11
Adjusted cash flow times 0.76 1.27 1.90 0.78 3.42

CONCLUSION

CONCLUSION
Bangalore is one of the business areas, tourist sectors of the city and the center of India’s
high-tech industry. It is growing day to day. As projected in market feasibility reports there
is a potential demand for a few new 5 star hotels. This project worked out the financial to be
located in Bangalore, Doddanekundi road.
The total cost of estimated at Rs. 6405.74. the facility included are-bar, restaurant, 24 hour
room service, coffee shop, banquet, conference hall, car parking, travel counter etc. as need
for such establishment. The hotel provides different types of room. The total number of room
is 121.
The source of finance are mainly through long-term loan from financial institution (SBI)
keeping a debt equity ratio of 0.61:1 and from the income and expenditure are worked out
taking the prevailing rate in similar establishment in Bangalore. The occupancy is assumed
65% in 1st year, gradually leading to level 85% in 5th year.

BIBILIOGRAPHY

BIBILIOGRAPHY
BOOKS:
• HOTEL MANAGEMENT MADE EASY

• HOTEL MAGAZINES
• HOTEL ECONOMICS
• HOTEL AND CATERING COSTING AND BUDGETS
WEBSITE:
• www.wikipedia.com
• www.bangaloretourism.com
• www.blrrealestate.com

ANNEXURES
ANNEXURE - 1
COST OF LAND RS IN CRORE
LAND AREA REQUIRED RATE/UNIT (8000 x 108,900) 8000
ADD 15% CONVEYANCE 1306
ADD 5% SITE DEVELOPMENT 871
TOTAL LAND COST 10890
ANNEXURE – 2
BUILDING AND CIVIL WORK
BUILT UP AREA RATE/SQFT. 6709.60
(83870*8000)
ADD 18% ELECTRICAL WORKS 452.28
ADD 15% FOR PLUMBING & DRAINAGRE 377.41
TOTAL BUSINESS COST 3345.79

ANNEXURE – 3
PLANT & MACHINERY RS IN LAKHS
CENTRAL A/C 50.00
LIFT (2 NOS) 20.00
GENERATORS 10.00
TRANSFORMERS 10.00
BOILERS 10.00
BOREWELL & PLUMBING 5.00
EPBX (10 LINES) 2.00
INSTRUMENTS 3.00
LCD TV/MUSIC 15.00
KITCHEN EQUIPMENTS 13.00
DISH WASHERS 5.00
FIRE FIGHTING EQUIPMENTS 3.00

COMPUTERS AND PRINTERS 6.00
TOTAL 152.00
ANNEXTURE-4 FURNITURE AND FIXTURES ANNEXURE – 4A (DELUXE ROOMS
ITEMS NO’S*RATE/UNIT TOTAL (IN LAKHS)
DOUBLE COT AND MATTRESS 65*25000 16.25
SIDE TABLE 130*1500 1.95
CHAIRS 130*1500 1.95
COFFEE TABLE 65*2000 2.6
CUPBOARDS 65*3000 1.95
LUGGAGE RACK 65*3000 1.95
TOILET FITTINGS 65*15000 9.75

UPHOLSTERY 65*15000 9.75
DRESSING TABLES 65*3500 2.27
FIXTURES 65*10000 6.5
MINIBAR 65*10000 6.5
TOTAL 61.42
ANNEXURE- 4B (EXECUTIVE DELUXE ROOMS)
ITEMS NO’S RATE/UNIT TOTAL IN LAKHS
DOUBLE COT AND MATTERS 34*30000 1.02
SIDE TABLR 68*2000 1.36
CHAIRS 68*2000 1.36
COFFEE TABLE 68*3000 2.04
CUPBOARDS 34*4000 1.36

TOILET FITTINGS 34*20000 6.80
UPHOLSTRY 34*20000 6.80
FIXTURES 34*15000 5.10
MINIBAR 34*10000 3.40
TOTAL 31.96
ANNEXTURE- 4C (JUNIOR SUITE ROOMS)
ITEMS NO’S*RATE/UNIT
DOUBLE COT & MATTRESS 21*40000 8.40
SIDE TABLE 42*4000 1.68
CHAIRS 42*3000 1.26
FRIDGE AND MINIBAR 21*15000 3.15
CUPBOARDS 21*10000 2.10

SOFA SETS 21*15000 3.15
TOILET FITTINGS (TUB,WC ETC) 21*25000 5.25
UPHOLSTRY 21*20000 4.20
FIXTURES 21*20000 4.20
TOTAL 35.17
ANNEXTURE- 4D (PRESIDENTIAL SUITE ROOMS)
ITEMS NO’S*RATE/UNIT
DOUBLE COT & 1*40000 40000

MATTERS
SIDE TABLE 2*4000 8000
CHAIRS 2*3000 6000
FRIDGE AND MINIBAR 15000 15000

CUPBOARDS 15000 15000
LUGGAGE RACK 5000 5000
SOFA SETS 25000 25000
TOILET FITTINGS (TUB, 30000 30000

WC ETC)
UPHOLSTRY 10000 10000
DRESSING TABLES 5000 5000
FIXTURES 1*20000 20000
KITCHEN 1*30000 30000
TOTAL 2.81
ANNEXTURE-4E SPECIALITY RESTAURANT (90 COVERS)
ITEMS NUMBER UNIT PRICE TOTAL (IN

LAKHS)
TABLES (2 SEAT) 25 1500 0.375
TABLES (4 SEAT) 12 2200 0.264

CHAIRS 90 1000 0.9
SIDE STATIONS 4 3000 0.12
FIXTURES 12 400 0.048
DÉCOR & UPHOLSTRY - - 4.00
TOTAL 5.707
ANNEXTURE -4F THE BAR (40 COVERS)
ITEMS NUMBER UNITE PRICE TOTAL
TABLE (4 SEAT) 5 2200 0.11
TABLE (2 SEAT) 10 1500 0.15
CHAIRS 40 1000 0.40
COUNTERS 1 3000 0.03
DÉCOR AND - - 3.00

UPHOLSTRY

FIXTURE - - 1.00
TOTAL 4.69
ANNEXTURE – 4G THE COFFEE SHOP (50 COVERS)
ITEMS NUMBER UNIT PRICE TOTAL (IN LAKH)
TABLES (2 SEAT) 5 2000 0.10
TABLES ( 4 SEAT) 10 3500 0.35
CHAIRS 50 2000 3.45
FIXTURES 10 400 0.04
DÉCOR & - - 4.00

UPHOLSTRY
SIDE STATION 3 3000 O.09
TOTAL 5.226

ANNEXTURE -4H ROOM SERVICE (121 ROOMS)
NUMBER UNIT PRICE TOTAL (IN

LAKHS)
B/F TRAYS 45 1000 0.45
TEA TRAYS 40 600 0.24
12” SLAVER 20 350 0.07
9”SALVER 20 300 0.06
TROLLY 7 5000 0.35
TRAY RACK 2 1500 0.03
O.T. CABIN 1 7000 0.07
DESKS 2 1500 0.03
MISCELLANEOUS - - 0.20
TOTAL 1.4

ANNEXTURE -4I CONFRENCE HALL (30 COVERS)
CHAIRS 30 600 0.18
TABLES 10 1200 0.12
PODIUM 1 2000 0.02
SOUND SYSTEM 1.00
12”SDALVERS 20 300 0.06
FIXTURES/MISCELLANEOUS - - 0.75
TOTAL 2.13
ANNEXTURE- 4J BANQUET
CHAIRS 150 6000 0.90
TABLES 25 1200 0.30
PODIUM 2 2000 0.03

SOUND SYSTEM 5 2000 1.50
12”SDALVERS 25 300 0.07
TOTAL 4.06
ANNEXTURE- 4K STORES, PURCHASING & HOUSEKEEPING

CUPBOARDS 25 3000 0.75
SHELVES 55 2000 1.10
RACKS 40 1000 0.20
BINS 60 300 0.18
FIXTURES - - 0.90
TOTAL 3.33

ANNEXTURE -4L ADMINISTRATION OFFICES
ITEMS NUMBER UNIT PRICE TOTAL (I LAKHS)
TABLES 12 3000 0.36
CHAIR 40 1200 0.48
SHELVES 15 4000 0.60
TOTAL 3.64
ANNEXTURE- 4M RECEPTION AND LOBBY
ITEMS 2.00
COUNTER 0.20
STATIONARYKEY RACK 0.20
STATUS BOARDS 0.15
CUPBOARDS AND SHELVES 0.30
SAFETY DEPOSIT LOCKERS 1.00
SOFAS 3.50

FIXTURES 1.50
MISCELLANEOUS 2.00
TOTAL 10.85
ANNEXTURE -4N GYM
MULTI GYM 2 200000 4.00
CHAIRS 5 600 0.03
FIXTURES/MISCELLANEOUS 1.5
TOTAL 5.53
ANNEXTURE- 40 STAFF CAFETERIA
TABLES 20 700 0.14
CHAIRS 60 400 0.24
MISCELLANEOUS 0.20
TOTAL 0.58

ANNEXTURE -5A
MISCELLANEOUS FIXED ASSETS THE SPECIALITY RESTAURANT (65 COVERS)
2 SEATS 20 200 0.04
4 SEATS 08 250 0.02
NAPKINS 65 60 0.039
TABLE CLOTH 65 600 0.39
PAR STOCK 4*0.489
TOTAL 1.95
ANNEXTURE -5B COFFEE SHOP

ITEMS NUMPER UNIT PRICE TOTAL (IN
LAKH)
2 SEAT TABLE CLOTH 5 200 0.01
4 SEAT TABLE CLOTH 10 250 0.025
NAPKINS 100 60 0.06
TOP CLOTH 15 600 0.09
PAR STOCK 4*0.185
TOTAL 0.75

ANNEXTURE – 5C BANQUETS (150 COVER)
FRILLS 20 1000 0.2
TABLE CLOTHES 20 300 0.06
NAPKINS 125 100 0.12
PAR STOCK 4*0.38
TOTAL 1.52
ANNEXTURE -5D CONFRENCE HALL
ITEMS NUMBER UNIT PRICE TOTAL(IN LAKH)
FRILLS 15 1000 0.15
TABLE CLOTH 15 300 0.045
NAPKINS 50 100 0.05
PAR STOCKS 4*0.223
TOTAL 0.89

ANNEXTURE – 5E GUEST ROOM LINEN
ITEMS NUMBER UNIT PRICE TOTAL (IN

LAKH)
DOUBLE BE SHEET 300 400 1.2
BLANKETS 125 1500 1.87
BED COVERS 125 1200 1.5
PILLOW CASES 500 150 .75
HAND TOWEL 250 100 .25
BATH MAT 125 100 .12
PILLOWS 500 400 .20
BATH TOWEL 250 300 .75
FACE TOWEL 250 100 .25
PAR STOCK 4*6.89 27.56
MATTRESS 130 1000 1.30

PROTECTOR
TOTAL 28.86

ANNEXTURE -5F KITCHEN STEWARDING (ALL F & B OUTLETS & ROOMS)
ITEM NUMBER UMIT PRICE TOTAL(Rs. In

lakhs)
GLASS 600 300 1.8
CHINAWARE 2000 500 10.00
FLATWARE 3000 600 18.00
CUTLERY 2500 225 5.6
TOTAL 35.4
ANNEXTURE – 5G STAFF CAFETERIA
ITEM NUMBER UNIT PRICE TOTAL(Rs. In

lakhs)
PLATES & GLASS 300 200 0.6
CUTLERY 300 100 0.3
TOTAL 0.9

ANNEXTURE-5H HOUSEKEEPING
ITEM NUMBERS UNIT PRICE TOTAL (RS. IN

LAKHS)
VACUUM 10 15000 1.5

CLEANER
H.K.CADDY 15 1000 0.15
MOPS DRY 20 300 0.06
MOPS WET 25 200 0.05
BROOMS 35 60 0.02
GLASS 5 35000 1.75

CLEANING
SQUEEZERS 40 200 0.08
WAITERS CLOTH 200 60 0.12
SCRUBBING 1 150000 1.5

MACHINES
MISCELLANEOUS 1.00
TOTAL 6.23

ANNEXTURE – 6 MARGIN FOR CONTINGENCY
ITEM TOTAL (RS. IN LAKHS)
TOTAL COST OF LAND 1620
TOTAL COST OF BUILDING & CIVIL 3345

WORKS
PLANT & MACHINERY 152
FURNITURE & FIXTURES 176.24
MISCELLANEOUS 80.22
TOTAL 5373.46
10% OF FIXED ASSETS 537.34
ANNEXTURE- 7 SALARY & WAGES (YEARLY)
SL. DESCRIPTION NO. OF AMOUNT TOTAL IN

NO. STAFF LANKH
1. GENERAL MANAGER 01 150000 24.00
2. F & B MANAGER 01 60000 9.60
3. FO MANAGER 01 60000 9.60
4. EXECUTIVE CHEF 01 60000 9.60

5. EXECUTIVE 01 60000 6.60
HOUSEKEEPER
6. CHIEF ACCOUNTANT 01 600000 9.00
7. STORE MANAGER 01 40000 7.2
8. PURCHASE MANAGER 01 50000 7.2
9. STORE SUPERVISOR 01 30000 4.8
10. CHEF DE PARTIES 03 25000 9.00
11. ENGINEER 01 30000 4.2
12. TECHNICIANS 06 18000 14.4
13. CAPTAIN 06 20000 14.4
14 STEWARDS 25 15000 45.00
15. BANQUET MANAGER 01 50000 4.8

16. ROOM BOYS 20 15000 36.00
17 HK SUPERVISION 5 25000 12.0
18. SECURITY MANAGER 01 25000 2.4
19. SECURITY GAURDS 14 12000 25.2
20 SALES & MARK. 01 50000 4.8

MANAGER
21. ASST. SALES & MARK. 01 30000 3.0

MANAGER
22. SALES & MARK. 6 22000 10.80

ASSOCIATES
23. ACCOUNT ASSOCIATES 05 15000 9.00
24 RESTAURANT 01
MANAGER
25. H.R. MANAGER 1 65000 7.80

26. ASST. H.R.M 01 25000 3.00
27. H.R. EXECUTIVE 01 20000 1.80
28. FRONT OFFICE 12 15000 21.60

ASSISTANT
29. SOUS CHEF 02 40000 10.80
30. COMMIS 20 12000 36.00
31. COOKS 6 10000 8.64
32. KITCHEN 01 18000 2.4

STEWARDING
MANAGER
33. KITCHEN 10 10000 12.00
STEWARDING BOYS
34. BELL DESK MANAGER 01 25000 3.00
35. BELL CAPTAIN 02 20000 4.8
36 BELL BOYS 08 10000 9.60
37. DOOS KEEPER 03 12000 4.32
38. FLORIST 03 8000 2.88
TOT - 176 395.4

AL

SALARY PER ANNUM = RS. 395.4
BENEFITS (10% OF TOTAL SALARY) = RS. 39.54
TRAINING CHARGES (2% OF SALARY) = RS. 7.90
TOTAL SALARY AND WAGES = RS.442.84
SALARY PER MONTH = RS.32.91 ‘
ANNEXTURE -8 INTEREST ON SBT LOAN (LONG TERM@12.3%)
YEAR INSTALMENTS LOAN AMOUNT INTEREST
I 548.34 2741.73 337.23
II 548.34 2193.39 269.78
III 548.34 1645.05 202.34
IV 548.34 1096.71 134.8
V 548.34 548.34 67.44
ANNEXTURE-9 INTEREST ON BANK OVERDRAFT @ 13%
YEAR OCCUPANCY% REVENUE AT OCCUPANCY TOTAL(RS IN

%PER YEAR LAKHS)
1 65% 2016.62*65/100 1310.80
2 70% 2016.62*70/100 1411.63

3 75% 2016.62*75/100 1512.46
4 80% 2016.62*80/100 1613.30
5 85% 2016.62*85/100 1714.13
ANNEXTURE- 10A ESTIMATION OF INCOME FROM DELUXE ROOM

Revenue at 100% occupancy for 1 year = total revenue/day 365
=5.52*365
= 2016.62
YEAR OCCUPANCY% REVENUE AT TOTAL(IN LAKH)

OCCUPANCY%
1 65% 1303.05*65/100 846.98
2 70% 1303.05*70/100 912.13
3 75% 1303.05*75/100 977.28
4 80% 130505.*80/100 1042.44
5 85% 1305.05*85/100 1107.59

ANNEXTURE- 10B ESTIMATION OF INCOME FROM EXECUTIVE DELUXE ROOM
=3.57*365
YEAR OCCUPANCY REVENUE AT TOTAL(IN LAKH) = 1303.05

OCCUPANCY%
PER YEAR
1 65% 1149.75*65/100 747.33
2 70% 1149.75*70/100 804.82
3 75% 1149.75*75/100 862.31
4 80% 1149.75*80/100 919.8
5 85% 1149.75*85/100 977.28
ANNEXTURE- 10C ESTIMATION OF INCOME FROM JUNIOR SAUITE ROOM
=3.15*365
= 1149.75
YEAR OCCUPANCY% REVENUE AT TOTAL(IN

OCCUPANCY%PER LAKHS)
YEAR
1 65% 127.75*65/100 83.03
2 70% 127.75*70/100 89.42
3 75% 127.75*75/100 95.81
4 80% 127.75*80/100 102.2
5 85% 127.75*85/100 108.58

ANNEXTURE- 10D ESTIMATION OF INCOME FROM PRESIDENTIAL SUITE ROOM
=0.35*365
= 127.75
YEAR OCCUPANCY REVENUE AT TOTAL(IN LAKH)

OCCUPANCY%
PER YEAR
1 65% 127.75*65/100 83.03
2 70% 127.75*70/100 89.42
3 75% 127.75*75/100 95.81
4 80% 127.75*80/100 102.2
5 85% 127.75*85/100 108.58

ANNEXTURE- 11A
ESTIMATION OF INCOME FROM ESPECIALLY RESTAURANT
=62000*365
= 226.30 LAKHS
YEAR OCCUPANCY% REVENUE AT TOTAL(RS.IN
OCCUPANCY%PER LAKHS)
YEAR
1 65% 226.30*65/100 147.09
2 70% 226.30*70/100 158.41
3 75% 226.36*75/100 169.72
4 80% 226.30*80/100 181.04
5 85% 226.30*85/100 192.35

ANNEXTURE- 11B ESTIMATION OF INCOME FROM COFFEE SHOP
=40000*365
= 146.00 LAKHS
YEAR OCCUPANCY % REVENUE AT OCCUPANCY % TOTAL (IN
PER YEAR LAKHS)
I 65% 146*65/100 94.9
II 70% 146*70/100 102.2
III 75% 146*75/100 109.5
IV 80% 146*80/100 116.8
V 85% 146*85/100 124.1
ANNEXTURE- 11C ESTIMATION OF INCOME FROM BAR
=32000*365
= 116.80 LAKHS
YEAR OCCUPANCY% REVENUE AT TOTAL (IN
OCCUPANCY %PER LAKHS)
YEAR
I 65% 116.80*65/100 75.92
II 70% 116.80*70/100 81.76
III 75% 116.80*75/100 87.6

IV 80% 116.80*80/100 93.44
V 85% 116.80*85/100 99.28
ANNEXTURE- 11D ESTIMATION OF INCOME FROM ROOM SERVICE
=60500*365
= 220.82 LAKHS
YEAR
I 65% 220.82*65/100 75.92
II 70% 220.82*70/100 81.76
III 75% 220.82*75/100 87.6
IV 80% 220.82*80/100 93.44
V 85% 220.82*85/100 99.28

ANNEXTURE- 11E ESTIMATION OF INCOME FROM CONFRENCE HALL
=15000*365
= 54.75 LAKHS
OCCUPANCY LAKHS)
%PER YEAR
I 65% 54.75*65/100 35,58
II 70% 54.75*70/100 38.32
III 75% 54.75*75/100 41.06
IV 80% 54.75*80/100 43.80
V 85% 54.75*85/100 46.53

ANNEXTURE- 11F ESTIMATION OF INCOME FROM BANQUET
=75000*365
= 273.75 LAKHS
YEAR
I 65% 273.75*65/100 177.93
II 70% 273.75*70/100 191.62
III 75% 273.75*75/100 205.31
IV 80% 273.75*80/100 219.00
V 85% 273.75*85/100 232.68

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CONTENTS OF THE PROJECT

S.N. TITLE PAGE

CHAPTER 1 INTRODUCTION 2-11

SCOPE, OBJECTIVE, METHODOLOGY & LIMITATION OF

PART-A MARKET FEASIBILITY

CHAPTER 4 DEMAND QUANTIFICATION 30-39

CHAPTER 5 TECHNICAL DETAILS OF THE PROPOSED PROJECT 40-49

CHAPTER 6 RECOMMENDED MARKET MIX 50-56

CHAPTER 7 CONCLUSION 57-58

PART-B FINANCIAL VIABILITY

INTRODUCTION TO THE FINANCIAL ASPECT OF THE

CHAPTER MANPOWER REQUIREMENT AND THE COST 67-73

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

INTRODUCTION TO HOTEL INDUSTRY

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

HOTEL INDUSTRY ORIGIN

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

• Economy / limited services hotel

• Luxury / Deluxe hotels

• Bread and breakfast inns

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

• Medium hotels (up to 299 rooms)

• Large hotels (up to 600 rooms)

• Bed and Breakfast.

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

NEW CONCEPT OF ECO - TOURISM

• Minimize physical, social, behavioural, and psychological impacts.

• Build environmental and cultural awareness and respect.

• Provide direct financial benefits for conservation.

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

• Involves travel to natural destinations

• Builds environmental awareness

• Provides direct financial benefits for conservation

• Provides financial benefits and empowerment for local people

• Respects local culture

• Supports human rights and democratic movements

• Conservation of biological diversity and cultural diversity through ecosystem protection

• Promotion of sustainable use of biodiversity, by providing jobs to local populations

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

Markets include mechanism or for

1. Determining price of trade items,

2. Communicating the price information

3. Facilitating deals and transaction and

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

1. The amount of capital to be raised.

2. The form and proportionate amount of securities to be issued.

3. Policies as to administration of capital

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

SCOPE, OBJECTIVES, METHODOLOGY, AND LIMITATION

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

• To attain the market feasibility report of various hotels.

• To understand the functioning of the hotels.

• To calculate the breakeven point.

• To assess the debt service ratio.

Collection of data was done by following method:

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

• Non – availability of updated information.

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

INFORMATION OF PLACE AND SITE

ADMINISTRATIVE MANAGEMENT COLLEGE, BANNERGHATTA ROAD, BENGALURU-560083

• Bagalkote, Belgaum, Bellary, Bidar, Bijapur, Chamarajanagar, Chikkaballapur, Chikkamagaluru,