Fayis M MFFV Pro

MARKET FEASIBILITY & FINANCIAL VIABILITY
BACHELOR’S DEGREE IN
HOTEL MANAGEMENT
PROJECT REPORT
SUBMITTED IN PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR
THE B.H.M. DEGREE
TOPIC: “MARKET FEASIBILITY & FINANCIAL VIABILITY”

BY: MOHAMMED FAISE AY
REG NO : 19SBC27030
FACULTY GUIDE: Chef Mohan Das
PRINCIPAL : Dr. SUDHARSHAN GM
BANGALORE - 560083
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T.JOHN COLLEGE
DEPARTMENT OF HOTEL MANAGEMENT
CERTIFICATE
. THIS IS TO CERTIFY THAT PROJECT REPORT ON.

MARKET FEASIBILTY AND FINANCIAL VIABILITY, SUBMITTED
TOWARDS PARTIAL FULLFILLMENT FOR THE REQUIREMENT OF
BACHELOR OF HOTEL MANAGEMENT DEGREE BY,
MR. MOHAMMED FAISE AY WITH REGISTER NO: 19SBC27030 IS AN
ORIGINAL WORK DONE BY HIM
FACULTY GUIDE. Chef Mohan Das
DECLARATION
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I MOHAMMED FAISE AY, HEREBY DECLARE THAT THE PROJECT

REPORT ON MARKET FEASIBILIY AND FINANCIAL VIABILITY OF
HOTEL THE HAVANA PALACE SUBMITTED TOWARDS PARTIAL
FULFILLMENT FOR THJE REQUIREMENT OF BACHELOR OF HOTEL
MANAGEMENT DEGREE IS AN ORIGINAL WORK DONE BY ME
UNDER THE GUIDANCE OF Chef Mohan Das.
THIS PROJECT REPORT HAS NOT BEEN FORMED FOR THE AWARD
OF ANY OTHER DEGREE / DIPLOMA / FELLOWSHIP OR ANY SIMILAR
TITLE FROM ANY OTHER UNIVERSITY OR ORGANIZATION OR
PUBLISHED ANYWHERE ELSE.
NAME: MOHAMMED FAISE AY

PLACE: BANGALORE
REG NO: 19SBC27030 DATE:
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ACKNOWLEDGEMENT
I AM VERY THANKFUL TO Dr. SUDHARSHAN GM PRINCIPAL

AMC COLLEGE BANGALORE FOR HER COURTEOUS SUPPORT FOR
COMPLETION OF THIS PROJECT.
I EXTEND MY SINCIERE THANKS TO MR. RAJESH KUMAR HOD OF
HOTEL MANAGEMENT FOR HIS MORAL SUPPORT DURING THE
COURSE OF MY PROJECT.
I AM IMMENSELY THANKFUL TO MY GUIDE Chef Mohan Das FOR

THEIR VALUABLE GUIDANCE THROUGHOUT THE COURSE OF MY
PROJECT.
I WOULD ALSO LIKE TO THANK THE HOTEL AND THE STAFF,
WITHOUT THEIR HELP THIS PROJECT WOULD NOT HAVE BEEN
POSSIBLE, I WOULD LIKE TO CONVEY MY REGARDS TO MY
PARENTS AND MY FRIENDS FOR HELPING AND SUPPORTING ME TO
COMPLETE THIS PROJECT.
FINALLY I THANK ALL MY FRIENDS FOR THEIR ASSISTANCE WHEN

NEEDED DURING THE PERIOD OF MY PROJCET.
NAME OF STUDENT
MOHAMMED FAISE AY
CONTENTS
PARTICULARS PAGE NO
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Chapter I Introduction
Chapter II Scope , Objective, Methodology and Limitation of the Project
Chapter III Profile of the Place and site
PART A – MARKET FEASIBILITY
Chapter IV Demand Quantification
Chapter V Technical Details of Proposed Project
Chapter VI Recommendation Market Mix
Chapter VII Conclusion
PART B – FINANCIAL VIABILITY
Chapter VIII Introduction of Financial Aspect of the Proposed Project
Chapter IX Cost of the Project (Introduction to fixed assets and capital cost)
Chapter X Man power Requirement and cost
Chapter XI Sales Revenue
Chapter XII Operational Expenses
Chapter XIII Working Capital Requirement
Chapter XIV Financing the project
Chapter XV Profitability Statement
Chapter XVI Fund Flow Statement
Chapter XVII Break Even Analysis, Debt, Service ratio
Chapter XVIII Coverage Ratio
Chapter XIX Ratio Analysis
Conclusion
Bibliography
Annexure and Exhibits
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CHAPTER – 1
INTRODUCTION TO HOTEL AND

TOURISM INDUSTRY
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INTRODUCTION TO TOURISM AND HOTEL INDUSTRY
The word ―tour‖ is first used to refer a journey in which one travels and visits a number
of places in circuit. A tourist travels home to get away from routine grid but that end of
all is that he is only eager to go back to his sweet home. Tourism is the world‘s fastest
growing industry. It is estimated that nearly forty cores of world tourist go abroad the globe
in a year. India is giving the higher priority to the tourism industry even since its
independence in 1947. Various schemes have been formulated to give toil to tourism industry
and also to develop domestic tourism in the country.
GROWTH OF TOURISM
After the industrial revolution tourism was developed in a big way. The novelty of holidays
plus the emergence of the travel organizers. Thomas Cook was the first travel agent in the
work. Practically every country in the world today looking towards tourism as an important
factor in the growth of the national property. Millions of people who would have considered a
few hundred miles very long journey during order times enjoy the prospect of moving from
one continent to the other. Prosperity, leisure coupled with a gust for pleasure and re-creation
are the motivating was rapid to begin within the motives was exploration business
pilgrimage, religion, education and health understand by a few wealthy and influential, but
their mobility was slow and treacherous. Tourism in India
TOURISM IN INDIA
Before 1947 India was under the British rule for 200 years. 15 august is the independence day
of India. In 1948, India got a geographical location in the world map as in north map as an
independence and democratic state. India is one of the few countries in the world today in
which the social and religion structure which define the nation identify remain intact and
have continued to do so far at least 4000 years despite invasion religious perception political
and many other cautions. The wealth of the cultural traditions extending over thousands of
years, the natural surroundings. The architectural master pieces, music, dance, painting,
customs and languages all there go to make India a tourist paradise. It all comes back to that
amazing variety.
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TRENDS IN INDIAN TOURISM
The diversity of India is legendary, presenting writers, marketers and travel agencies with
endless opportunities to sell its charms. From the Himalayas to the desert of Rajasthan, to the
natural beauty of Kerala and the cultural intensity of Varanasi. India offers something for
everyone. But in recent years things have shifted. With the growth of the online travel
industry, in all its different guises, people now have a lot more information at their fingertips
and the research process has become a larger, richer part of holiday planning. At the same
time, travel industry providers have grown exponentially in India, so visitors now have more
options than ever. In turn, this means that India has to work harder to keep up with demand,
and demands. Here there are micro trends seen across the evolving Indian travel landscape.
The advent of hostels
THE ADVENT OF HOSTELS
Zostel reception in Jaipur
Hostels were never really a part of the Indian tourism story. Yes, there have always been low
budget options for backpackers, but recently we've seen hostels mushrooming across the
tourist trail, most noticeably around Rajasthan and Agra. Set-ups like Zostel and Moustache
are offering a cheap, basic hostel experience, making life a lot easier, and the country more
accessible, for the lowest-budget traveller. And we're not talking just international kids on a
gap year, but young Indian kids out for adventure. So much so that Zostel has plans for a
staggering 30 more properties in the second half of 2015.Leisure travel is not a product of
luxury but rather considered a necessity to consolidate one's energy."
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THE GROWTH OF BOUTIQUE HOTELS
Amarya villa, Delhi
Boutique hotels, privately run small hotels, arty hotels with just a few rooms. We think
boutique hotels should be a key element in India's plans to boost tourism, almost always
presenting an opportunity for tourists to be more engaged with their surroundings (and less in
a resort 'bubble') while still having a certain level of comfort. Unfortunately, the 'boutique' tag
is severely abused and misused by the ranks of private, old school and often state-supported
corporate hoteliers. Quality will always rise, surely, but the lack of any consistent and
trustworthy starring system remains an obstacle.
NEW DESTINIATION
Chandelao Garh, village hotel in Rajasthan
One of the clearest trends we are seeing is a willingness to explore new regions, amongst
both young upper-middle-class Indians and tourists from overseas. States like Gujarat, the
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stunning North-East and 'heavenly' Kashmir have seen a lot of growth in tourism, both
domestic and international, as infrastructure improves and more providers come online.
In the already famous state of Rajasthan, lesser-known districts like Pali are now hitting the
international visitor's radar, boosted by their central locations and proximity to improved
airports and, in the case of the above, national parks and safari options.Also, particularly in
Rajasthan, small rural villages are now gaining popularity thanks to boutique set-ups like
Chandelao Garh and Deogarh, both representing authentic, intriguing, safe and relatively
accessible offbeat destinations, mostly appealing to Europeans.
ADVENTURE SPORTS OPPORTUNITIES
White water rafting in Himachal Pradesh
It's incredible really that with the length of India's coastline, the wildness of its interior and
the staggering beauty of the Himalayas, it does not already feature on the adventure/extreme
sports locations list. This is, of course, largely to do with the lack of infrastructure, but even
that can't stop the passion for adventure sports now apparent in young Indians. Educated kids
from the cities are spreading their wings, creating their own businesses and setting up shop in
far flung corners of the country. Now tourists can kite surf in Rameswaram, ski in Gulmarg,
Whitewater raft in Rishikesh and go caving in the North East, the list goes on. So far it seems
these opportunities are largely lost on (and under marketed to) international visitors, who are
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much more likely to visit the Taj Mahal than the stunning mountain regions. Once the
foreign-inbound market catches on, the opportunity for growth is immense.
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SOME INFORMATION ABOUT INDIA:-
 Area: 3787000sq.km
 Language: Hindi is the national language
 Education: 73%literate
 National Dress: Dhoti Kurta
 Religion: Hindu, Muslim, Buddhism, Sikh, Jainism, Christian
 Capital: New Delhi
 National Bird: Peacock
 National Animal: Tiger
 National Food: Rice
 National Flower: Lotus
ESTIMATES OF TOURIST ARRIVALS TO INDIA FORECAST 2016-

2020
Tourist Arrivals in India is expected to be 685772 by the end of this quarter(April 2016),
according to Trading Economics global macro models and analysts expectations. Looking
forward, they estimate Tourist Arrivals in India to stand at 696875 in 12 months time. In the
long-term, the India Tourist Arrivals is projected to trend around 762402 in 2020, according
to our econometric models. The tourism master plan, the first for Karnataka, envisages
initiatives to attract private investment ranging from US$ 2.2 billion to US$ 4.4 billion in the
next three to five years. The plan is prepared based on the Vision 2020 document prepared
and adopted by the Karnataka State Planning Board. The state government aims to generate
200,000 jobs in the tourism sector in the next five years. The master plan is aimed at making
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Karnataka the number one destination for tourism in the country by 2020.
HOTEL INDUSTRY
The term Hotel is derived from an old French word ―Ostel‖ meaning an Inn servant. The
same is called in Latin word ―Hospital‖. In French ―HOUSE SPICE‖, then―Hostel‖ and
eventually ―Hotel‖. The word ―Inn‖ has been in use since 14th century and it was until
18century. Then the hotel became fashionable. The hotel is an institution or a building which
provides lodging, meals and other services for the traveling public. In other words it is a
place, where the tourists can stop, and from being the traveler become the guest. It serves the
local population also. But the primary function of the hotel is to accommodate those away
from home and supply them with their basic needs and try to meet their expectations.
DEFINITION OF HOTEL
The place where a bona fide traveller can receive food and shelter provided, he is in a
position to pay for it and he is in a fit condition to be received. TYPES OF HOTEL
Indian hotels can be classified in five major types:
 Commercial Hotel
 Resort Hotel
 Motel Hotel
 Residential Hotel
 Transit Hotel
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NATURE AND CHARACTERISTICS OF HOTEL:
A hotel is a fixed immobile institution. It is a product that cannot be moved to the consumer.
It is unique that the customer enters the hotel boundary and consumes the product with in it.
Unlike a factory or a plant which never permits its consumers to enter its boundary unless for
visiting only. A store or a shop does permit the same but the customer returns with tangible
memory and some feelings of satisfaction or dissatisfaction.
The following features distinguish the hotel industry from other industry:
 Its product is tangible.
 Its product is not transportable.
 Its product is highly perishable or has a short life span.
 Demand for its product is derived demand. The

visitor goes to a particular destination and spends
hotel nights because it helps in the satisfaction of
certain wants like sightseeing, pilgrimage, business,
training etc.,
 The demand for its service is not subject to low diminishing
marginal utilities.
FUNCTION
The basic functions of the hotels are different from that of any other business, which can be
grouped in 4 functions namely: -
 Providing living accommodation.
 Supply food, drink etc., for immediate consumption.
 Transportation, recreational and entertainment facilities.
 Any other function incidental or ancillary to this

activity such as auto rental, air-line ticketing, tour
reservation etc.
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Firms or establishments which produce the same goods or service are classified as belonging
to the same industry likewise a group of firms which provide food, drink, accommodation
etc., away from home are called hotel and catering industry. The hotel industry is made up of
several hotels, catering and other services establishment located in close proximity or widely
spread geographically. They could be in the form of proprietorship, partnership, private or
public companies.
GROWTH AND DEVELOPMENT OF HOTEL INDUSTRY
The concept of traveling and halting overnights on the way is an age old one. But during the
16th to the 17th century hotels in India were owned and co-operated by British and Swiss
mainly for their own use or foreign visitors. Western style residential hotels are
comparatively of recent origin of India. ―Pallomji Pertonjee‖ opened the 1st western style
hotel The British Hotel in 1840 at Mumbai. The 20th century is a turning point of hotel
industry in India. Big businessmen and new entrepreneurs entered in the field.
EMERGING TRENDS IN HOSPITALITY INDUSTRY
The Indian hospitality industry has emerged as one of the key industries driving the growth of
the services sector and, thereby, the Indian economy
1.PROMOTE F&B REVENUE During the changed scenario has meant that many
Hotels have started re working their strategy. One of the strategies adopted is pushing up
revenues from F&B (Food & Beverage) as well as Banqueting functions. This has started
paying dividends with some of the Hotels reporting increase in F& B revenue by 20 to 25%
year on year. Going forward F&B revenues are likely to play a key role in the revenue stream
of the Hotel.
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2. PERVASIVE WELLNESS: Pervasive wellness support to rise to the development

of new hotel patterns and other operations specializing in weight loss and total wellness
designed to transform you during and after your stay.
3. HEALTH CAMPS: Health camps Signals broadens to include overall wellbeing,

health as the centre of a holiday experience becomes more desirable. Hotel chains are re-
branding around wellness, recognizing the concept and focusing on fitness .India‘s health and
wellness tourism is expected to generate revenues of INR320bn in 2016, after increasing at a
growth rate of 25.6% over the next 4 years
4. MEGA-CITY LIVING: The more urbanization globally has been one of the most
significant trends in population dynamics over the past century. The number of megacities is
projected to increase to 37 in 2025, at which time they are expected to account for 13.6 per
cent of the world urban population. The tremendous growth in urban populations will create
thunder pressures on food, water, waste treatment, and health care, by 2025.
5.ARCTIC/ANTARCTIC TRIPS: The growth of Space Tourism, increasing interest

and participation in Arctic/Antarctic trips, deep sea exploration and other remote journeys all
drive more to seek to access the latest hospitality patterns. Space tourism, specifically
suborbital space flights, could become a billion-dollar market within 20 years. The
Advancing submersible vehicle technology increase access to deeper ocean depths, followed
by more demand for hospitality industry.
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CHAPTER- 2
SCOPE, OBJECTIVE
METHODOLOGY & LIMITATION
OF THE PROJECT
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SCOPE
To study about the existing 4 star hotels in Mangalore
To study about the facilities of the existing hotel
To know the type of clientele of the existing hotel
To study about the USP of the existing hotel
OBJECTIVES
To analyze the existing 4 star hotels in Mangalore
To estimate the demand for a new 4 star hotel
To decide the location and technical aspects of a new hotel
To estimate the manpower requirements of the proposed hotel
To assess the market feasibility of a new hotel
To assess the financial viability of a new hotel
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METHODOLOGY
1. The study is based upon primary and secondary data.
a). Primary Data- This consists of first hand data collected for a specific
purpose. Primary data has been collected by the surveying of the hotels in
Mangalore and interviews & discussions with the hotel personnel’s, tourist
agents etc.
b). Secondary Data- This consists of information already in existence

somewhere, having been collected for another purpose. Obtained by referring
books, journals, tourism magazines and information obtained from the
internet.
2. To analyze the existing market situation with the help of a few derived
formulas.
LIMITATIONS
1. The scope of the study is limited to the hotels in Mangalore.
2. Restriction regarding rules and regulation of the country.
3. The time period for the survey is limited to 6 months.
4. Confidential information couldn‘t be retrieved by interviewing the hotel

personnel’s.
5. Financial constraints being a student.
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CHAPTER - 3
INFORMATION OF PLACE AND

SITE
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Mangalore
Coordinates: 12.87°N 74.88°E
Coordinates: 12.87°N 74.88°E
Country India
State Karnataka
Region Tulu Nadu
District Dakshina Kannada
Government
MayorJacintha Vijay Alfred
Area
Metropolitan City 132.45 km2 (51.14 sq mi)
Elevation 22 m (72 ft)
Population (2016)
Metropolitan City 623,841
Rank21
Density 3,586.5/km2 (9,289/sq

mi)
Metro[2]619,664
Languages
Official Tulu, Konkani, Beary and Kannada
Time zoneIST (UTC+5:30)
PIN575001 to 575030
Telephone code 0824
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Vehicle registration KA-19
Website www.mangalorecity.gov.in
Nickname(s): Kudla, Kodiyal, Maikala
PROFILE OF THE PLACE
Mangalore (also called Kuḍla in Tulu, Maṅgaḷuru in Kannada, Koḍiyāl in Konkani, or Maikāla
in Beary bashe) is the chief port city of the Indian state of Karnataka. It is located about 350
kilometres (220 mi) west of the state capital, Bangalore. Mangalore lies between the Arabian
Sea and the Western Ghat mountain ranges, and is the administrative headquarters of the
Dakshina Kannada (formerly South Canara) district in south western Karnataka.
Mangalore derives its name from the local Hindu Goddess Mangaladevi. It developed as a
port on the Arabian Sea—remaining, to this day, a major port of India. Lying on the
backwaters of the Netravati and Gurupura rivers, Mangalore is often used as a staging point
for sea traffic along the Malabar Coast. The city has a tropical climate and lies in the path of
the Arabian Sea branch of the South-West monsoons. Mangalore's port handles 75 per cent of
India's coffee exports and the bulk of the nation's cashew exports.
Mangalore was ruled by several major powers, including the Kadambas, Vijayanagar
dynasty, Chalukyas, Rashtrakutas, Hoysalas, and the Portuguese. The city was a source of
contention between the British and the Mysore rulers, Hyder Ali and Tipu Sultan. Eventually
annexed by the British in 1799, Mangalore remained part of the Madras Presidency until
India's independence in 1947. The city was unified with the state of Mysore (now called
Karnataka) in 1956.
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Mangalore is demographically diverse with several languages, including Tulu, Konkani,

Kannada, and Beary bashe commonly spoken, and is the largest city of Tulu Nadu region.
The city's landscape is characterised by rolling hills, coconut palms, freshwater streams, and
hard red-clay tiled-roof buildings In an exercise carried out by the Urban Development
Ministry under the national urban sanitation policy, Mangalore was placed as the eighth
cleanest city in the country. In Karnataka, it is second after Mysore.
Mangalore was named after the local Hindu deity Mangaladevi, the presiding deity of the
Mangaladevi temple. According to local legend, Matsyendranath, the founder of the Nath
tradition, arrived in the area with a princess from Kerala named Parimala or Premaladevi.
Having converted Premaladevi to the Nath sect, Matsyendranath renamed her Mangaladevi.
After her death, the Mangaladevi temple was consecrated in her honour at Bolar in
Mangalore.The city got its name from the Mangaladevi temple.
One of the earliest references to the city's name was made in 715 CE by the Pandyan King
Chettian, who called the city Mangalapuram. The 14th-century Arabian traveller Ibn Battuta
referred to Mangalore as Manjarur in his chronicles. The city is also called Mangalūru, a
reference to Mangaladevi (the suffix ūru means town or city). During the British occupation
in 1799, Mangalore (anglicised from Mangalūru), stuck as the official appellation. However,
according to historian George M. Moraes, the word "Mangalore" is the Portuguese corruption
of Mangalūru.
Mangalore's diverse communities have different names for the city in their languages. In
Tulu, the primary spoken language, the city is called Kudla, meaning junction, since the city
is situated at the confluence of the Netravati and Gurupura rivers. In Konkani, Mangalore is
referred to as Kodial. The Beary name for the city is Maikala, meaning wood charcoal, an
attribution to the early practice of producing charcoal from wood on the banks of the
Netravati river.On the occasion of Suvarna Karnataka
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(Golden Karnataka) in 2006, the Government of Karnataka stated that the city would be
renamed Mangalooru, though this change in name is not implemented.
HISTORY
The area that is now Mangalore has been mentioned in many ancient works of Hindu history.
The name of this town appears in maps as early as the 1652 Sanson Map of India.In the epic
Ramayana, Lord Rama ruled over the region, while in the epic Mahabharata, Sahadeva, the
youngest of the Pandavas, governed the area. Arjuna, the hero of Mahabharata, also visited
the area when he travelled from Gokarna to Adur, a village near Kasargod.Mangalore's
historical importance is highlighted by the many references to the city by foreign travellers.
Cosmas Indicopleustes, a Greek monk, referred to the port of Mangalore as
Mangarouth.Pliny the Elder, a Roman historian, made references to a place called Nitrias,
while Greek historian Ptolemy referred to a place called Nitra.Ptolemy's and Pliny the Elder's
references were probably made to the Netravati River, which flows through Mangalore.
Ptolemy also referred to the city as Maganoor in some of his works.
In the third century BCE, the town formed part of the Maurya Empire, ruled by the Buddhist
emperor, Ashoka of Magadha. The region was known as Sathia (Shantika) during the
Mauryan regime. From second century CE to sixth century CE, the Kadamba dynasty ruled
over the region. From 567 to 1325, the town was ruled by the native Alupa rulers.The Alupas
ruled over the region as feudatories of major regional dynasties like the Chalukyas of
Badami, Rashtrakutas, Chalukyas of Kalyani, and Hoysalas. Mangalapura (Mangalore) was
the capital of the Alupa dynasty until the 14th century. The city, then an important trading
zone for Persian merchants, was visited by Adenese merchant Abraham Ben Yiju.The
Moroccan traveller Ibn Battuta, who had visited the town in 1342, referred to it as Manjarun,
and stated that the town was situated on a large estuaryBy 1345, the Vijayanagara rulers
brought the region under their controlLater, the Jain Kings and the Muslim Bangara Kings
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ruled the town as feudatories of the Vijayanagar Empire, and brought the town firmly under
an efficient and centralised administration. In 1448, Abdul Razak, the Persian
ambassador of Sultan Shah Rukh of Samarkand, visited Mangalore, and was amazed at a
glorious temple he saw in the city, en route to Vijayanagara.
According to the Scottish physician Francis Buchanan who visited Mangalore in 1801,
Mangalore was a rich and prosperous port with flourishing trading activity. Rice was the
grand article of export, and was exported to Muscat, Bombay, Goa and Malabar. Supari or
Betel-nut was exported to Bombay, Surat and Kutch. Pepper and Sandalwood were exported
to Bombay. Turmeric was exported to Muscat, Kutch, Surat and Bombay, along with Cassia
Cinnamon, Sugar, Iron, Saltpeter, Ginger, Choir and Timber.
European influence in Mangalore can be traced back to 1498, when the Portuguese explorer
Vasco da Gama landed at St Mary's Island near Mangalore. In 1526, the Portuguese under the
viceroyship of Lopo Vaz de Sampaio succeeded in defeating the Bangara King and his allies
and conquered Mangalore. The trade passed out of Muslim hands into Portuguese hands. In
the mid-16th century, Goud Saraswat Brahmins, and Goan Catholics from Goa migrated to
Mangalore as a result of Goa InquisitionIn 1640, the Keladi Nayaka kingdom defeated the
Portuguese and ruled the town until 1762. The Portuguese were allowed to have trade
relations with Mangalore. In 1695, the town was torched by Arabs in retaliation to Portuguese
restrictions on Arab trade.
Hyder Ali, the de facto ruler of the Kingdom of Mysore, conquered Mangalore in
1763,consequently bringing the city under his administration until 1767. Mangalore was
ruled by the British East India Company from 1767 to 1783, but was subsequently wrested
from their control in 1783 by Hyder Ali's son, Tipu Sultan; who renamed it Jalalabad. The
Second Anglo–Mysore War ended with the Treaty of Mangalore, signed between Tipu Sultan
and the British East India Company on 11 March 1784. After the defeat of Tipu at the Fourth
Anglo–Mysore War, the city remained in control of the British, headquartering the Canara
district under the Madras Presidency
The city was largely peaceful during British rule, with urban and infrastructural
developments affected during the period. Mangalore flourished in education and in industry,
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becoming a commercial centre for trade. The opening of the Lutheran German Basel Mission
in 1834 brought many cotton weaving and tile manufacturers
to the city. When Canara (part of the Madras Presidency until this time) was bifurcated into
North Canara and South Canara in 1860, Mangalore was transferred into South Canara and
became its headquarters.South Canara remained under Madras Presidency, while North
Canara was transferred to Bombay Presidency in 1861.The enactment of the Madras Town
Improvement Act (1865) mandated the establishment of the Municipal council on 23 May
1866, which was responsible for urban planning and providing civic amenities. Roman
Catholic missions to Mangalore like the Italian Jesuit "Mangalore Mission" of 1878 played
an important role in education, health, and social welfare.The linking of Mangalore in 1907
to the Southern Railway, and the subsequent proliferation of motor vehicles in India, further
increased trade and communication between the city and the rest of the country.
As a result of the States Reorganisation Act (1956), Mangalore (part of the Madras
Presidency until this time) was incorporated into the dominion of the newly created Mysore
State (now called Karnataka). Mangalore is a major city of Karnataka, providing the state
with access to the Arabian Sea coastline. Mangalore experienced significant growth in the
decades 1970–80, with the opening of New Mangalore Port on 4 May 1974 and
commissioning of Mangalore Chemicals & Fertilizers Limited on
15 March 1976. The late 20th century saw Mangalore develop as a business, commercial and
information technology (IT) centre, although the traditional red tile- roofed houses are still
retained in the city.
GEOGRAPHY AND CLIMATE
Mangalore is located at 12.87°N 74.88°E in the Dakshina Kannada district of Karnataka. It

has an average elevation of 22 metres (72 ft) above sea level.It is the administrative
headquarters of the Dakshina Kannada district, the largest urban coastal center of Karnataka,
and the fourth largest city in the state. Mangalore is situated on the west coast of India, and is
bounded by the Arabian Sea to its west and the Western Ghats to its east. Mangalore city, as
a municipal entity, spans an area of
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132.45 km2 (51.14 sq mi).Mangalore experiences moderate to gusty winds during day time
and gentle winds at night. The topography of the city is plain up to 30 km (18.64 mi) inside
the coast and changes to undulating hilly terrain sharply towards the east in
Western Ghats. There are four hilly regions with natural valleys within the city. The geology
of the city is characterised by hard laterite in hilly tracts and sandy soil along the seashore.
The Geological Survey of India has identified Mangalore as a moderately earthquake-prone
urban centre and categorised the city in the Seismic III Zone.
Mangalore lies on the backwaters of the Netravati and Gurupura rivers. These rivers
effectively encircle the city, with the Gurupura flowing around the north and the Netravti
flowing around the south of the city. The rivers form an estuary at the south- western region
of the city and subsequently flow into the Arabian sea. The city is often used as a staging
point for traffic along the Malabar Coast. The coastline of the city is dotted with several
beaches, such as Mukka, Panambur, Tannirbavi, Suratkal, and Someshwara. Coconut trees,
palm trees, and Ashoka trees comprise the primary vegetation of the city.
Under the Köppen climate classification, Mangalore has a tropical monsoon climate and is
under the direct influence of the Arabian Sea branch of the southwest monsoon. It receives
about 95 per cent of its total annual rainfall within a period of about six months from May to
October, while remaining extremely dry from December to March.The annual precipitation in
Mangalore is 3,479 millimetres (137 in). Humidity is approximately 75 per cent on average,
and peaks during May, June and July. The maximum average humidity is 93 per cent in July
and average minimum humidity is 56 per cent in January.
The most pleasant months in Mangalore are from December to February, during which time
the humidity and heat are at their lowest. During this period, temperatures during the day stay
below 30 °C (86 °F) and drop to about 19 °C (66 °F) at night. This season is soon followed
by a hot summer, from March to May, when temperatures rise as high as 38 °C (100 °F). The
summer gives way to the monsoon season, when the city experiences more precipitation than
most urban centres in India, due to the Western Ghats.Rainfall up to 4,000 millimetres (157
Page | 28
in) could be recorded during the period from June to September. The rains subside in
September, with the occasional rainfall in October.
DEC – FEB (pleasant)
MAR – MAY (hot max 40C)
JUN – SEP(heavy rain)
OCT- NOV(less rain)
Page | 29
ECONOMY
Mangalore's economy is dominated by the agricultural processing and port-related

activities .The New Mangalore Port is India's ninth largest port, in terms of cargo handling. It
handles 75 per cent of India's coffee exports and the bulk of its cashew nuts. During 2000–01,
Mangalore generated a revenue of 33.47 crore (US$6.16 million) to the state. The city's major
enterprises include Mangalore Chemicals and Fertilizers Ltd. (MCF), Kudremukh Iron Ore
Company Ltd. (KIOCL), Mangalore Refinery and Petrochemicals Ltd. (MRPL), BASF,
Bharati Shipyard Limited and Total Oil India Limited (ELF Gas).
The leaf spring industry has an important presence in Mangalore, with Canara Workshops
Ltd. and Lamina Suspension Products Ltd. in the city.The Baikampady and Yeyyadi
Industrial areas harbour several small-scale industries. Imports through Mangalore harbour
include crude oil, edible oil, LPG, and timber.The city along with Tuticorin is also one of two
points for import of wood to South India.
Major information technology (IT) and outsourcing companies like Infosys, Wipro, and
MphasiS BPO have established a presence in Mangalore.Plans to create three dedicated I.T.
parks are underway, with two parks (Export Promotion Industrial park (EPIP) at Ganjimutt
and Special Economic Zone (SEZ) near Mangalore University) currently under construction.
A third IT SEZ is being proposed at Ganjimutt. Another IT SEZ, sponsored by the BA group,
is under construction at Thumbe and spans 2 million square feet (180,000 m²).
The Mangalore Chemicals & Fertilizers Limited is a major industry in Mangalore that was
commissioned in 1976.
The Oil and Natural Gas Corporation (ONGC) plans to invest over 35000 crore (US$6.44
billion) in a new 15 million tonne refinery, petrochemical plant and power, as well as LNG
plants at the Mangalore Special Economic Zone. Indian Strategic Petroleum Reserves Ltd, a
special purpose vehicle under the Oil Industry Development Board, is developing strategic
crude oil reserves in Mangalore and two other places in India. Out of the proposed 5 million
metric tonnes per annum (MMTPA) storage, 1.5 MMTPA would be at Mangalore. According
to an
Page | 30
International edition of India Today (28 November – 4 December 2006), Mangalore is the
fastest growing non-metro in South India.
Corporation Bank, Canara Bank, and Vijaya Bank were the three nationalised banks
established in Mangalore during the first half of the 20th century. Karnataka Bank, founded
in Mangalore, was one of the largest banks to have not been taken over by the
Government.The Mangalore Catholic Co-operative Bank (MCC Bank) Ltd. and SCDCC
Bankwere the scheduled banks established in Mangalore.
The boat building and fishing industry have been core businesses in Mangalore for
generations. The Old Mangalore Port is a fishing port located at Bunder in Mangalore, where
a large number of mechanised boats anchor. The traffic at this port was 122,000 tonnes
during the years 2003–04.The fishing industry employs thousands of people, their products
being exported to around the region. Mangalorean firms have a major presence in the tile,
beedi, coffee, and cashew nut industry, although the tile industry has declined due to concrete
being preferred in modern construction.The Albuquerque tile factory in Mangalore is one of
India's oldest red roof tile manufacturing factories. Cotton industries also flourish in
Mangalore. The Ullal suburb of Mangalore produces hosiery and coir yarns, while beedi
rolling is an important source of revenue to many in the city.
DEMOGRAPHICS
Mangalore has a population of 484,785 per the 2011 census of India .The urban area has a
population of 619,664while the Mangalore city metropolitan area has a population of 484,785
(2011). The number of males was 240,651, constituting 50 per cent of the population, while
the number of females were 244,134. The decadal growth rate was 45.90. Male literacy was
96.49 per cent, while female literacy was
91.63 per cent. About 8.5 per cent population was under six years of age. Mangalore's
literacy rate is 94.03 per cent—significantly higher than the national average of 59.5 per cent.
Birth rate was 13.7 per cent, while death rate and infant mortality rate were at 3.7 per cent
and 1.2 per cent respectively. The Mangalore urban area had 32 recognised slums, and nearly
22,000 migrant labourers lived in slums within the city limits. According to the Crime
Review Report (2006) by the Dakshina Kannada Police, Mangalore registered a drop in the
crime rate in 2005, compared with 2003.
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The four main languages in Mangalore are Tulu, Konkani, Kannada, and Beary bashe; with
Tulu being the mother tongue of the majority.Malayalam, Hindi, Urdu and English are also
spoken in the city. A resident of Mangalore is known as a Mangalorean in English,
Kudladaru in Tulu, Kodialghar in Catholic Konkani, Kodialchi or Manglurchi in Goud
Saraswat Brahmin Konkani, Manglurnavaru in Kannada, and Maikaaltanga in Beary bashe.
Hinduism is the largest religion in Mangalore, with Mogaveeras, Billavas, Ganigas and Bunts
forming the largest groups. Kota Brahmins, Shivalli Brahmins, Havyaka Brahmins, Sthanika
Brahmins, Goud Saraswat Brahmins (GSBs) and others form the remaining sections of
Hindus. Christians form a sizeable section of Mangalorean society, with Konkani-speaking
Catholics, popularly known as Mangalorean Catholics, accounting for the largest Christian
community. Protestants in Mangalore known as Mangalorean Protestants typically speak
Kannada. Most Muslims in Mangalore are Bearys, who speak a dialect of Malayalam called
Beary bashe. There is also a sizeable group of landowners following Jainism.
CULTURE
Many classical dance forms and folk art are practised in the city. The Yakshagana, a night-
long dance and drama performance, is held in Mangalore, while Pilivesha (literally, tiger
dance), a folk dance unique to the city, is performed during Dasara and Krishna Janmashtami.
Karadi Vesha (bear dance) is another well known dance performed during Dasara. Paddanas
(Ballad-like epics passed on through generations by word of mouth) are sung by a community
of impersonators in Tulu and are usually accompanied by the rhythmic drum beats. The
Bearys' unique traditions are reflected in such folk songs as kolkai (sung during kolata, a
valour folk-dance during which sticks used as props), unjal pat (traditional lullaby), moilanji
pat, and oppune pat (sung at weddings).The Evkaristik Purshanv (Konkani: Eucharistic
procession) is an annual Catholic religious procession led on the first Sunday of each New
Year. The Shreemanti Bai Memorial Government Museum in Bejai is the only museum of
Mangalore.
Most of the popular Indian festivals are celebrated in the city, the most important being
Dasara, Diwali, Christmas, Easter, Eid, and Ganesh Chaturthi. Kodial Theru, also known as
Mangaluru Rathotsava (Mangalore Car Festival) is a festival unique to
Page | 32
the Goud Saraswat Brahmin community, and is celebrated at the Sri Venkatramana Temple.
The Mangalorean Catholics community's unique festivals include Monti Fest (Mother Mary's
feast), which celebrates the Nativity feast and the blessing of new harvests.The Jain Milan, a
committee comprising Jain families of Mangalore, organises the Jain food festival annually,
while festivals such as Mosaru Kudike, which is part of Krishna Janmashtami festival, is
celebrated by the whole community.[ Aati, a festival worshiping Kalanja, a patron spirit of
the city, occurs during the Aashaadha month of Hindu calendar. Festivals such as Karavali
Utsav and Kudlostava are highlighted by national and state-level performances in dance,
drama and music. Bhuta Kola (spirit worship), is usually performed by the Tuluva
community at night. Nagaradhane (snake worship) is performed in the city in praise of Naga
Devatha (the serpent king), who is said to be the protector of all snakes. An ancient ritual
associated with the ‗daivasthanams‘ (temples) in rural areas, Hindu kori katta, a religious and
spiritual cockfight, is held at the temples and also allowed if organised as part of religious or
cultural events
Neer dosa, a variant of dosa, and Pundi (Rice ball), are native to Mangalore.
Mangalorean cuisine is largely influenced by the South Indian cuisine, with several cuisines
being unique to the diverse communities of the city. Coconut and curry leaves are common
ingredients to most Mangalorean Curry, as are ginger, garlic and chili. Mangalorean Fish
Curry is a popular dish in Kanara. The Tuluva community's well-known dishes include Kori
Rotti (dry rice flakes dipped in gravy), Bangude Pulimunchi (silver-grey mackerels), Beeja-
Manoli Upkari, Neer dosa (lacy rice- crêpes), Boothai Gasi, Kadubu, and Patrode. The
Konkani community's specialities include Daali thoy, beebe-upkari (cashew based), val val,
avnas ambe sasam, Kadgi chakko, paagila podi, and chana gashi. Vegetarian cuisine in
Mangalore, also known as Udupi cuisine, is known and liked throughout the state and region.
Since Mangalore is a coastal town, fish forms the staple diet of most people. Mangalorean
Catholics' Sanna-Dukra Maas (Sanna—idli fluffed with toddy or yeast; Dukra Maas—Pork),
Pork Bafat, Sorpotel and the Mutton Biryani of the Muslims are well- known dishes. Pickles
such as happala, sandige and puli munchi are unique to Mangalore. Shendi (toddy), a country
liquor prepared from coconut flower sap, is popular.
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CIVIC ADMINISTRATION
Mayor : PREMANANDA SHETTY
Deputy Mayor : SUMANGALA RAO
DC : Dr. RAJENDRA K V
Police Commissioner : N. SHASHI KUMAR
The Mangalore City Corporation (MCC) is the municipal corporation in charge of the civic
and infrastructural assets of the city. Municipal limits begin with Mukka in the north, to
Netravati river bridge in the south and western sea shore to Vamanjoor in the east. The MCC
council comprises 60 elected representatives, called corporators, one from each of the 60
wards (localities) of the city. Elections to the council are held once every five years, with
results being decided by popular vote. A corporator from the majority party is selected as a
Mayor.[120] The headquarters of Mangalore City Corporation is at Lalbagh. Its sub-offices
are at Surathkal and Bikarnakatta. As of 2001, the Mangalore municipality covered an area of
73.71 km2 (28.46 sq mi).
Until the revision of Lok Sabha and the legislative constituencies by the Delimitation
commission, Mangalore contributed two members to the Lok Sabha, one for the southern part
of the city which fell under the Mangalore Lok Sabha Constituency, and another for the
northern part of the city which fell under the Udupi Lok Sabha Constituency. Additionally,
Mangalore sent three members to the Karnataka State Legislative Assembly. With the
revision, the entire Mangalore taluk now falls under the Dakshina Kannada Lok Sabha
constituency, resulting in Mangalore contributing only one Member of Parliament (MP).
The Dakshina Kannada Police is responsible for the law and order maintenance in
Mangalore. The department is headed by a Commissioner of Police. Mangalore is also the
headquarters of the Western Range Police, covering the western districts of Karnataka, which
is headed by an Inspector General of Police (IGP).
Page | 34
EDUCATION
National Institute of Technology (Karnataka) in Surathkal, which is one of the premier

institutes of India, is located near Mangalore.
The pre-collegiate medium of instruction in schools is predominantly English and Kannada,

and medium of instruction in educational institutions after matriculation in colleges is
English. Additionally, other media of instruction exist in Mangalore. Recently, a committee
of experts constituted by the Tulu Sahitya Academy recommended the inclusion of Tulu (in
Kannada script) as a medium of instruction in education.
Schools and colleges in Mangalore are either government-run or run by private trusts and
individuals. The schools are affiliated with either the Karnataka State Board, Indian
Certificate of Secondary Education (ICSE), the Central Board for Secondary Education
(CBSE) and the National Institute of Open Schooling (NIOS) boards. After completing 10
years of schooling in secondary education, students enrols in Higher Secondary School,
specialising in one of the three streams – Arts, Commerce or Science. Since the 1980s, there
have been a large number of professional institutions established in a variety of fields
including engineering, medicine, homoeopathic medicine, dentistry, business management
and hotel management. The earliest schools established in Mangalore were the Basel
Evangelical School (1838) and Milagres School (1848). The Kasturba Medical College
established in 1953, was India's first private medical college. Popular educational institutions
in the city are National Institute of Technology (Karnataka), Sahyadri Educational
Institutions - College of Engineering & Management, Adyar,KS Hegde Medical Academy,
A. J. Institute of Medical Science, Father Muller Medical College, Father Muller
Homeopathic Medical College, Yenepoya Medical College, Srinivas Medical College
Mangalore Institute of Technology & Engineering (MITE), Bearys Institute of Technology,
P.A. College of Engineering, St. Aloysius College, Canara College, Canara Engineering
College,Alvas Education foundation, S.D.M. College and St. Joseph Engineering College.
The Bibliophile's Paradise, a hi-tech public library run by the Corporation Bank, is located
Page | 35
Mannagudda in Mangalore.[ Mangalore University was established on 10 September 1980.

It caters to the higher educational
needs of Dakshina Kannada, Udupi and Kodagu districtsand is a National Assessment and
Accreditation Council (NAAC) accredited four-star level institution.
SPORTS
Kambala (buffalo race), contested in water filled paddy fields, and Korikatta (cockfight) are
popular. Cricket is the most popular sport in the city. Dakshina Kannada's only full-fledged
cricket stadium, the Mangala Stadium, is in Mangalore. The Sports Authority of India (SAI)
has also set up a sports training centre at the stadium.The Central Maidan in Mangalore is
another important venue hosting domestic tournaments and many inter-school and collegiate
tournaments. The Mangalore Sports Club (MSC) is a popular organisation in the city and has
been elected as the institutional member for the Mangalore Zone of the Karnataka State
Cricket Association (KSCA). Football is also quite popular in the city and is usually played in
the maidans (grounds), with the Nehru Maidan being the most popular venue for domestic
tournaments. Chess is also a popular indoor sport in the city. Mangalore is headquarters to the
South Kanara District Chess Association (SKDCA), which has hosted two All India Open
Chess tournaments.
Other sports such as tennis, squash, billiards, badminton, table tennis and golf are played in
the numerous clubs and gymkhanas. Pilikula Nisargadhama, an integrated theme park, has a
fully functional nine-hole golf course at Vamanjoor. Budhi Kunderan, a former Indian wicket
keeper was from Mangalore. Ravi Shastri, who represented India for several years in
international cricket as an all-rounder and captained the team, is of Mangalorean descent.
MEDIA
Page | 36
Major national English language newspapers such as Times of India, The Hindu, The New
Indian Express and Deccan Herald publish localised Mangalore editions. The Madipu,
Mogaveera, Samparka (Contact) and Saphala (Fulfillment) are well-known
Tulu periodicals in Mangalore. Popular Konkani language periodicals published in the city
are Raknno (Guardian), Konknni Dirvem (Konkani Treasure), and Kannik (Offering). Beary
periodicals like Jyothi (Light) and Swatantra Bharata (Independent India) are also published
from Mangalore. Among Kannada newspapers, Udayavani (Morning Voice), Vijaya
Karnataka (Victory of Karnataka), Prajavani (Voice of the People), Kannada Prabha and
Varthabharathi (Indian News) are popular. Evening newspapers such as Karavali Ale (Waves
from the Coast), Mangalooru Mitra (Friend of Mangalore), Sanjevani (Evening Voice), and
Jayakirana (Rays of Victory) are also published in the city. The Konkani language newspaper
kodial Khabbar is released fortnightly. The first Kannada language newspaper Mangalore
Samachara (News of Mangalore) was published from Mangalore in 1843.
The state run, nationally broadcast Doordarshan provides both national and localised
television coverage. Cable television also provides broadcast cable channels of independently
owned private networks. Canara TV transmits daily video news channels from
Mangalore.Mangalore is not covered by the Conditional access system (CAS); however, a
proposal to provide CAS to television viewers in Mangalore sometime in the future has been
initiated by V4 Media, the local cable service provider. Direct-to-Home (DTH) services are
available in Mangalore via Dish TV, Tata Sky, Sun Direct DTH, Airtel digital TV, Reliance
BIG TV and Videocon D2h . All India Radio (AIR) has a studio at Kadri (with frequency
100.3 MHz) that airs program during scheduled hours. Mangalore's private FM stations
include Radio Mirchi 98.3 FM, Big 92.7 FM[ and Red 93.5 FM.
Mangalore is home to the Tulu Film Industry, which has a catalogue of 31 films, and releases
one film annually, on average. Popular Tulu films include Kadala Mage (Son of the Sea) and
Suddha (The Cleansing Rites). Tulu dramas, mostly played in the Town Hall at Hampankatta,
are very popular.[125] In 2006, a Tulu film festival was organised in Mangalore.
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TRANSPORT
The Netravati railway bridge serves as the gateway to Mangalore.Mangalore's location makes
it accessible via all forms of transport. Transport systems in Mangalore include private buses,
KSRTC buses, trains, taxis and autorickshaws.
Four National Highways pass through Mangalore. NH-66 (previously known as NH-17 till
April 2011[150]), which runs from Panvel (in Maharashtra) to Edapally Junction (near
Cochin in Kerala), passes through Mangalore in a north–south direction, while NH-48 runs
eastward to Bangalore. NH-13 runs north-east from Mangalore to Solapur.National Highways
Authority of India (NHAI) is upgrading the national highways connecting New Mangalore
Port to Surathkal on NH-66 and BC Road junction on NH-48. Under the port connectivity
programme of the National Highways Development Project (NHDP), a 37.5-kilometre (23.3
mi) stretch of these highways will be upgraded from two-lane to four-lane roads. NH-234,
715-km long Highway connects Mangalore to Villupuram.[153]
Mangalore's city bus service is operated by private operators and provides access within city
limits and beyond. Two distinct sets of routes for the buses exist—city routes are covered by
city buses, while intercity routes are covered by service and express buses. Karnataka State
Road Transport Corporation (KSRTC) operates long distance bus services from Mangalore to
other parts of the state. The other key players who run bus services from Mangalore are the
Dakshina Kannada Bus Operators Association (DKBOA) and the Canara Bus Operators
Association (CBOA). These buses usually ply from the Mangalore Bus Station. White
coloured taxis also traverse most of the city. Another mode for local transport is the
autorickshaw.
Rail connectivity in Mangalore was established in 1907. Mangalore was also the starting
point of India's longest rail route. The city has two railway stations— Mangalore Central (at
Hampankatta) and Mangalore Junction (at Kankanadi). A metre gauge railway track, built
through the Western Ghats, connects Mangalore with Hassan. The broad gauge track
connecting Mangalore to Bangalore via Hassan was opened to freight traffic in May
Page | 38
2006[157] and passenger traffic in December 2007. Mangalore is also connected to Chennai
through the Southern Railway and to Mumbai via the Konkan Railway.
The Mangalore Harbour has shipping, storage, and logistical services, while the New
Mangalore Port handles dry, bulk, and fluid cargoes. The New Mangalore Port is also well
equipped to handle petroleum oil lubricants, crude products and LPG containers. It is also the
station for the coast guard. This artificial harbour is India's ninth largest port, in terms of
cargo handling, and is the only major port in Karnataka.Mangalore International Airport
(IATA: IXE) is near Bajpe/Kenjar, and is located about 15 kilometres (9 mi) north-east of the
city centre. It is the second airport in Karnataka to operate flights to international
destinations.
Electricity in Mangalore is regulated by the Karnataka Power Transmission Corporation

Limited (KPTCL) and distributed through Mangalore Electricity Supply Company
(MESCOM).Mangalore experiences scheduled and unscheduled power cuts, especially
during the summer, due to excess consumption demands. Major industries like Mangalore
Refinery and Petrochemicals (MRPL) and Mangalore Chemicals & Fertilizers (MCF) operate
their own captive power plants
Potable water to the city is supplied by Mangalore City Corporation.[170] Almost all water is
from the vented dam constructed across the Netravati River at Thumbe, 14 kilometres (9 mi)
from Mangalore. The Karnataka Urban Development and Coastal Environment Management
Project (KUDCEMP) aim to improve safe water supply systems and reduce leakage and
losses in the distribution system in Mangalore. The official garbage dumping ground of
Mangalore is in Vamanjoor. The city generates an average of 175 tons per day of waste,
which is handled by the health department of the Mangalore City Corporation. The city has
developed and maintains public parks such as Pilikula Nisargadhama,Kadri Park at Kadri,
Tagore Park at Light House Hill, Gandhi Park at Gandhinagar,and Corporation Bank Park at
Nehru Maidan Fixed Line telecom services are offered along side GSM and Code division
multiple access (CDMA) mobile services. Mangalore is the headquarters of the Dakshina
Kannada Telecom District, the second largest telecom district in Karnataka. The telephone
density in the city is 8.74 per 100 population. Prominent broadband internet service providers
in the city include Tata, Airtel and DataOne by BSNL
Page | 39
PART – A
MARKET FEASIBILITY
CHAPTER – 4
DEMAND QUANTIFICATION
Page | 40
DEMAND ANALYSIS & DEMAND QUANTIFICATION
This is to find out the extent of demand in opening a new 4 star hotel in Mangalore, basically
four hotels of 4 star category has been taken into consideration.
Type of Clientele
No. of % of
Name of Hotels
Rooms Occupancy (0) Business Tourist
(r) Others
(b) (t)
The Ocean pearl 110 72% 35% 32% 33%
Goldfinch The
Finest Boutique 106 69% 33% 55% 12%
Hotel
The Gateway
100 64% 60% 25% 15%
Mangalore
Hotel Deepa
61 62% 29% 52% 19%
Comforts Mangalore
CALCULATIONS
Average No. Of Rooms
= Total No. Of Rooms = 110+106+100+61
Total No. of Hotels 4
= 94.25
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DEMAND ANALYSIS
 Let ―N‖ be the total No. of Rooms
 N= 110+106+100+61 = 377
 Let ―O‖ be the occupancy of the Hotels surveyed
 Let ―W‖ be the Weighted Average Occupancy
CALCULATION OF ACTUAL REQUIREMENT OF ROOMS
Weighted average occupancy
= sum of the products of no. of rooms & occupancy in each hotel
Sum of the total no. of rooms in each hotel
= [110 X 72] + [106 X 69] + [100 X 64] + [61 X 62]
110+106+100+61
= 7920 + 7314 + 6400 + 3782
377
= 25416 = 67.42 %
377
Weighted Average Occupancy (W) = 67.42%
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3. ESTIMATED DEMAND SUPPLY GAP
Y = (W – B.E.P) * N
100
W= Weighted Average Occupancy %
B.E.P. = Estimated Break Even
Point Of Occupancy % (57%)
N=Existing Number of Hotel
Rooms In The Market.
Y= W- B.E.P. × N
100
= 67.42% - 57% × 377
100
= 10.42 * 3.77 = 39.283
NO. OF ROOMS THAT CAN BE ESTABLISHED WITHOUT MAKING

LIKELY LOSS
Let ‗X‘ be the maximum number of rooms that can be established without making any likely
loss.
X = Y × 100
B.E.P.
= 39.283× 100 = 68.92

57
Thus, the maximum number of rooms that can be established is 69 rooms.

But the proposed project will have 70 rooms which can be considered feasible.
Page | 43
CHAPTER – 5
TECHNICAL DETAILS OF
PROPOSED PROJECT
Page | 44
TECHNICAL ASPECTS & MANPOWER PLANNING OF THE HOTEL
The proposed 4 star hotel ‘The HAVANA PALACE’ is set up in Kadri, Mangalore.
The hotel will be designed to meet the standards laid down by the tourism department.
Type of room No. of rooms
Deluxe rooms 49
Executive rooms 14
Handicapped room- 01
Suite rooms 06
Guest Room Area Specifications:
Size of deluxe room : 245 sq.ft.
Size of the bathroom : 45 sq.ft.
Total size of one deluxe room : 290 sq.ft.
Total area of deluxe rooms : 290*50= 14500sq. ft.
Size of an executive room : 300 sq.ft.
Size of the bathroom : 60 sq.ft.
Total size of executive room : 360 sq.ft.
Total area of the executive rooms : 360*14= 5040 sq.ft
Size of suite room (2 rooms) : 440 sq. ft.
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Size of bathrooms (2 nos.) : 45 + 49 = 94 sq.ft.
Total size of suite room : 534 sq.ft.
Total area of suite rooms : 534*6 = 3204 sq.ft.
Total area of guestrooms : 14500+5040+3204 = 22744

sq.ft.
Air conditioning unit
The proposed hotel will be installed with central air conditioning system & an emergency
A.C unit will also be installed to facilitate during any major breakdown.
POWER
The proposed hotel will be installed with 3 generators of 250 kV each to avoid any major
breakdown.
2 transformers of 440 V will also be installed.
3 boilers will also be installed from which 2 will be hot water boilers & 1 will be steam
boiler for laundry purpose.
The hotel will have 2 bore well as the total water requirement of the hotel is estimated as
10000 gallons of water.
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Hotel building
Hotel area – 80000 sq. ft.
Sr. no. Basement Area Area in Sq. ft.
1 HR office 400
2. Engineering & maintenance 1150
3. Boiler room 400
4. Staff cafeteria 800
5. Locker (male) 300
6. Locker (female) 400
7. Purchase & receiving area 450
8. Store (dry) 500
9. Cold storage 600
10. Housekeeping department 1000
11. Account office 200
12. Computer room 200
13. Garbage room 300
14. Telephone exchange 400
15. Service staircase 50
16. Service elevator 100
17. Fire exit 50
18. Laundry 1000
19. Doctor‘s clinic 200
20. Corridors & passage 200
21. Guest/ staff parking 1500
22. Total 10200Sq.ft
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Sr. no. Ground Floor Area in Sq. ft.
1. Front office (reception) 650

2. Back office 200
3. Reservation 100
4. Guest safety locker room 80
5. Lobby 1800
6. Travel desk 100
7. Bell desk 80
8. Guest staircase 150
9. Guest elevator 150
10. Room service 200
11. Fire exit 50
14. Banquet store 400
15. Banquet hall 3285
16. Speciality Restaurant 1200
17. Coffee shop & bar 1200
18. Gymnasium 700
19. Spa & parlour 600
20. Shopping arcade 1500
21. Main kitchen 2000
22. Guest cloakroom (male) 275
23. Guest cloakroom (female) 275
24. Sales department 100
25. Finance control office 100
Total 15345Sq.ft
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Sr. No First Floor Area in Sq. ft
1. GM‘s office 250

2. Staff toilet (male) 70
3. Staff toilet (female) 70
4. Business centre 400
5. F & B control room 200
6. Fire exit 100
11. Corridor 350
12. Pantry 150
13. Linen chute 110
14. Deluxe rooms (17 rooms) 4930
15. Executive rooms (5 rooms) 1800
16. Suite rooms (2 suites) 1068
Total 9948Sq.ft
Page | 49
Sr. no. Second Floor Area in Sq. ft.

2. Executive rooms(5 rooms) 1800
4. Pantry 150
5. Linen chute 110
7. Service elevators 100
10. Corridor 350
11. Terrace garden 1722
12. Fire exit 100
Total 10680Sq.ft
Sr. No Third Floor Area in Sq. ft.

2. Executive rooms(4 rooms) 1140
4. Pantry 150
5. Linen chute 110
7. Service elevators 100
10. Corridor 350
11. Fire exit 100
Total 8008Sq.ft
Page | 50
TOTAL BUILT-UP AREA = 54181 SQ. FT.
Vacant site available = hotel area – total built-up area
= 80000 – 54181
= 25819 sq. ft.
As a large amount of vacant space is left out, it will be utilized for :
1. Swimming pool 2500 sq. ft.

2. Parking area 8000 sq. ft.
3. Security office 200 sq. ft.
4. Time office 160 sq. ft.
5. Gardens & landscape 15000 sq. ft.
Page | 51
CHAPTER – 5
RECOMMENDED
MARKET MIX
Page | 52
RECOMMENDED MARKET MIX
In marketing planning we use market information to access situation. We have to select

specific marketing target for each and every segment on subdivision for the market. We
formulate a combination of marketing programming to reach particular target on market
segment .The combination of these marketing methods on devices is known as the marketing
mix.
As successful marketing strategy must have a marketing mix, as well as target market for
whom the market mix is prepared.
The 7 basic facts of marketing are:
1. Place
2. Product
3. Price
4. Promotion
5. People
6. Physical Evidence
7. Process
PLACE
By place we mean the selection of the location of the hotel. The location place is important in
attracting business. Therefore locations advantage over other hotels is very important.
Considering various parameters connected with the logistics of location, the hotel is built in
Kadri, Mangalore.
Page | 53
Distance From
Airport -13 km
Railway station- 4 km
Bus stand- 1 km Main
market- 2 km
Proposed hotel mainly focuses on business class rather than other clients.
PRODUCT
The hotel offers deluxe rooms, executive rooms, suite rooms, restaurant, banquets, coffee
shop & bar, spa & parlour, gymnasium, business centre etc. the hotel product has another
important dimension considered as ‗Service‘. In order to provide the best service it is
necessary to recruit skilled personnel as well as profession manager so that the culture of
good service can be made the unique product of the hotel.
Hospitality products offered:
1) An ultimate shopping experience in a beautifully designed

shopping arcade next to lobby offering antique items.
2) Scrumptious food at the coffee shop and restaurant.
3) Spa offering splendid ayurvedic, water and sun treatments by experts.
4) Airports pick up and drop.
5) Banking facilities.
Page | 54
OUTLETS OF THE PROPOSED HOTEL ‘THE HAVANA PALACE’
KUDLA(specialty restaurant): It has a unique color theme and décor serving the most
delicious and lip smacking authentic coastal cuisine.
AROMA coffee shop & bar: An elegantly appointed coffee shop & bar serving most exotic
food and drink promises to keep your spirits soaring. The restaurant provides authentic dishes
that attract most tourists.
THE PEARL (banquet hall): Suitable for marriages, birth day parties, reception. It can
accommodate 250 people.
PRICE
ROOM TYPES RATES( INR)
DELUXE 7000
EXECUTIVE 9000
SUITE 12000
PROMOTION
Under this the following aspects are considered:
Advertising
Sales Promotion
Publicity and Public Relations
A blend of common methods and some unusual methods will be adopted in the promotion of
the hotel before inauguration. They are as follows:
Page | 55
ADVERTISING
It will begin when construction work is on the edge of
completion. Different methods adopted are
a) Local Media
b) National Media
c) Hoardings
d) Newspapers and Pamphlets
DATABASE
Under this method personalized letters will be send to executives of top companies in India
and outside.
TRAVEL AGENTS
All the well known travel agents will be informed about rates and other facilities provided which
would help in promoting our services.
AFTER INAUGURATION
Food Festivals
Various food festivals would be organized which will enlighten our culture and indirectly
help in building the image of our hotel.
DISCOUNTS
Certain discounts will be given to guests who will make prior reservations.
PACKAGES
Beneficial packages will be offered through which guests can not only enjoy the facilities but
can also get delighted by an ultimate travelling experience.
Page | 56
PEOPLE
It is the important ingredient in the marketing mix. People are the backbone of any
organization. The people are designing the product or service. While designing a product or
service the marketers need to have a thorough knowledge about the customer‘s likes, dislikes,
behaviour, attitudes etc.
This helps the marketers to get an overall idea about the customer‘s choice. If they can
introduce the products or services which are matching with the customer‘s interests. They can
earn a good profit margin and eventually it will meet customer‘s needs and offer ultimate
customer satisfaction. Staff will be given proper training by the training department and their
respective heads of departments. They will be introduced with fire fighting and other safety
measures.
PHYSICAL EVIDENCE
It means the environment in which the services or product is delivered with the physical to
tangible commodities and the situations where the firm and the customer interact there are
two kinds of physical evidence.
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. E.g.: Complimentary Chocolates, Tickets etc.
ESSENTIAL EVIDENCE
The customer cannot possess it. E.g.: Size and Design, Interior decoration etc.
Page | 57
PROCESS
Process means the way things are actually done and the steps taken to achieve the desired
results. In a hotel, the system by which you receive delivery of the service constitutes the
process. E.g.: Late service of the dish can lead to word mouth or loss of customers or loss of
sales or affect reputation.
The service in my hotel will be fast and neat as per the guest request. E.g.: Order of service in
a restaurant.
Valet service will also be there in the proposed hotel.
UNIQUE SELLING PROPOSITIONS
The concept of cookery classes and meditation classes for resident and non-resident guests
The fast internet connections with easy connectivity and accessibility, light on pocket.
Traditional local cuisines with a wide range of varieties in an traditional manner.
Traditional dances during the weekend night show during the weekend dinner for guests.
Page | 58
CHAPTER - 7
CONCLUSION
Page | 59
CONCLUSION:-
The tourism industry is the second largest industry in the world and the rate which it is
growing it will become the largest industry soon. The phenomenonal growth of the industries
mainly due to man‘s urge to travel for business or pleasure and increase in disposal of income
among the middle class under developed and developing countries can use their natural
resources. Most countries like India have used their limited resources and benefitted to
tourism.
Now a days due to industrialization, consumer demands, changing preferences and

competitive hotel have constantly adopted with the changing times and positioning
themselves in market suitability.
The need for business as well as tourist has increased day by day, thus making business
clients as well as tourist will be very beneficial. The growth of hotel business mainly depends
on the development of infrastructure mainly in case of hotels.
The proposed hotel is the need of the business travellers and tourists who want to explore this
city.
These feasibility studies conducted in Mangalore, among the 4 star facilities providing hotels
show there is still considerable demand for rooms and the proposed 70 rooms‘ hotel will be
profitable & feasible venture.
Page | 60
PART –B
FINANCIAL VIABILITY
CHAPTER – 8
INTRODUCTION TO FINANCIAL
ASPECTS OF THE PROPOSED
PROJECT
Page | 61
PROJECT PROFILE
Name of the hotel: THE HAVANA PALACE
Location: Kadri, Mangalore
Category of hotel: 4 star
Type of owner ship: private LTD Company
Target market: leisure and business class
Room statement
TYPE NO.
Deluxe room 49
Executive room 14
Handicapped room 01
Suite room 6
Total 70
TARIFF
Deluxe room – Rs. 7000
Handicapped room - Rs. 7000
Executive room- Rs 9000
Suite room - 12000
VAT- 14.5%
Luxury tax- 10%
Page | 62
FACILITIES:
1. Speciality restaurant – KUDLA
2. Coffee shop & bar – AROMA
3. Banquet – THE PEARL
4. The Spa & parlour
5. Gymnasium
7. Business centre
Financial information(Total Cost) Rs. 2702.852 (in lakh)
Need of finance: Term loan Rs 1657.849
Share capital Rs 615.001
Promoter contribution Rs 410.001
Subsidy 20
Debt equity ratio 1.59
Payback period 3.2years
Breakeven point 54.25%
Debt service coverage ratio 1.76
Sensitivity analysis 1.573
Cost benefit analysis 0.529
Page | 63
CHAPTER - 9
COST OF THE PROJECT
Page | 64
COST OF THE PROJECT
PARTICULARS AMOUNT IN LAKHS (Rs.)
Total cost of land (Annexure I) 374.034
Building and civil works ( Annexure II) 1441.213
Plant and machinery (Annexure III) 93.35
Furniture and fixtures (Annexure IV) 133
Miscellaneous fixed assets (Annexure V) 46.5
TOTAL A Rs.2088.107
Margin for contingency (Annexure VI) 208.81
TOTAL B Rs. 208.81
Add Preliminary and pre-operative expenses 253.621
(Annexure VIII )
Interest on Implementation (Annex 10) 152.314
TOTAL C Rs. 405.935
TOTAL COST OF THE PROJECT Rs. 2702.852
Page | 65
CHAPTER – 10
MAN POWER REQUIREMENT & COST
Page | 66
MAN POWER REQUIREMENT
The success of any service establishment depends to a large extend on the manpower and the
productivity of its work force. Success in personal management might be attached only with
good planning.
The manpower of the proposed hotel will be distributed as below. No. of employees will be
1.5 times of the no. of rooms in hotel.
Sr. no. Administrative Staff No. of Employees
1. General manager 1
2. Secretary 1
3. AGM 1
Total 3
Sr. no. Front Office No. of Employees
1. Front office manager 1

2. Lobby manager 1
3. Front office assistants 3
4. G. R. E 1
5. Bell captain 1
6. Bell boys 3
7. Telephone operator 1
8. Night auditor 1
9. Cashier 1
Total 12
Sr. no. F&B Production No. of Employees
Page | 67
1. Executive chef 1
2. Sous chef 1
3. Chef de partie 3
4. Commis (I,II,III) 8
Total 13
Sr. no. F&B Service No. of Employees
1. F&B manager 1
2. Restaurant manager 1
3. Banquet manager 1
4. Coffee shop manager 1
5. Captain 3
6. Stewards 7
7. Bartender 1
Total 15
Sr. no. Room Service No. of Employees
1. Room service manager 1

2. Room service steward 4
3. Order taker 1
Total 6
Sr. no. Housekeeping No. of Employees
1. Executive housekeeper 1
2. Floor supervisor 3
3. Room boy 10
4. Housemen 2
5. Gardener 1
Total 17
Page | 68
Sr. no. Engineering & Maintenance No. of Employees
1. Chief engineer 1
2. Supervisor 1
3. Technicians 3
4. Total 5
Sr. no. Security No. of Employees
1. Chief security officer 1

2. Security supervisor 1
3. Security men 5
4. Door man 1
5. Total 8
Sr. no. Accounts & Finance No. of Employees
1. Accounts manager 1
2. Cashier 1
3. Asst. cashier 1
4. Total 3
Sr. no. Sales & Marketing No. of Employees
1. S&M manager 1
2. S&M assistant manager 1
3. S&M personnel 3
4. Total 5
Page | 69
Sr. no. Purchase No. of Employees
1. Manager 1
2. Assistant 2
Sr. no. Kitchen stewarding No. of Employees
1. Stewarding manager 1
2. Dishwashing supervisor 1
3. Utility workmen 3
4. Dishpot washer 2
5. Total 7
Sr. no. Spa & Parlour & Gymnasium No. of Employees
1. Spa manager 1
2. Assistants 2
3. Hair-dressers 1
4. Gym instructor 1
5. Total 5
Sr. no.
1. HR MANAGER 1
2. HR Associate 1
Total no. Of staff = 104employees Shift Timings
The executives and the back office staff will have general shift i.e. from 9am to 6pm, and the
staff of core dertments and security will have three shifts i.e. morning shift 7am to 3pm,
evening shift 3pm to 11 and night shift 11pm to 7am.
Page | 70
CHAPTER – 11
SALES REVENUE
Page | 71
ESTIMATED SALES REVENUE
The following illustrated table shows the estimated revenue from different sources of
operation under varied occupancy. The revenue generating areas of a hotel are the rooms
which gives maximum sales followed by various F & B outlets like coffee shop, specialty
restaurants and banquets. The other revenue generating areas are travel desk, laundry, etc.
ESTIMATED SALES REVENUE (amount in Lakhs)
S YEAR
YEAR 1 YEAR 2 YEAR 3 YEAR 4
Occupancy 5
n 65% 70% 73% 76%
o 80%
A ROOM SALES
1 Deluxe Room 830.375 894.25 932.575 970.90 1022
367.92
2 Executive Room 298.935 321.930 335.727 349.524
0
210.24
3 Suite 170.82 183.96 191.844 199.728
0
1600.1
TOTAL A 1300.13 1400.14 1460.146 1520.152
6
B FOOD & BEVERAGE

SALES
1 Specialty Restaurant 241.995 260.610 271.779 283.88 297.84
Page | 72
2 Coffee Shop & bar 213.525 229.95 239.805 249.66 262.80
3 Room Service 249.113 268.275 279.225 291.27 306.6
4 Banquet Hall 267.30 287.438 300.577 312.075 328.5
1195.7
TOTAL B 971.933 1046.273 1091.386 1136.885
4
C OTHERS
1 Telephones 24.6 32 45 35.84 54.85
2 Laundry 40 55.57 62.65 58 72
3 Car Rental 22.85 27.63 32.086 29.74 35
4 Health Club 19.68 26 33 28 38.68
5 Travel Desk 15 18.83 19 21 25.47
6 Spa & Parlor 35.49 41.59 49.79 46.34 55
7 Misc. 25 29 32 33 42.86
Rs.323.
TOTAL C Rs.182.78 Rs.230.62 Rs.274.3 Rs.251.92
86
Rs.2454.84 Rs.2677.0 Rs.2908.95 Rs.311

GRAND TOTAL (A + B + C) Rs.2825.832
3 33 7 9.76
Page | 73
CHAPTER – 12
OPERATIONAL EXPENSES
Page | 74
OPERATIONAL EXPENSES
(amount in lakhs)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Sr.no. Occupancy
65% 70% 73% 76% 80%
F&B Cost (40%
1 388.773 418.509 436.523 454.754 478.296
of F&B sales)
Salaries &
2 154.62 154.62 170.082 170.082 187.09
Wages
ELECTRICITY
3 245.484 267.40 282.583 290.89 311.97
(10% sales)
Administrative
4 122.74 133.70 141.29 145.445 155.985
Expenses (5%)
Maintenance,
Repair &
5 122.74 133.70 141.29 145.445 155.985
Replacement
(5%)
Advertisement &
6 245.484 267.40 282.583 290.89 311.97
Publicity (10%)
7 Telephone (5%) 122.74 133.70 141.29 145.445 155.985
Legal fee &

8 49.096 53.48 56.51 58.17 62.395
Insurance (2%)
Miscellaneous
9 122.74 133.70 141.29 145.445 155.985
Expenses (5%)
GRAND
Rs.1574.417 Rs. 1696.209 Rs.1793.441 Rs.1846.566 Rs.1975.661
TOTAL
Page | 75
CHAPTER – 13
WORKING CAPITAL
REQUIREMENT
Page | 76
The working capital funds are planned to be met partly by banks as overdrafts and partly by
promoters. A month‘s capital requirement for raw materials is estimated to be 40% OF F&B
SALES of the month.
Half of this is planned to be raised as bank overdraft and half to be met by promoters.
20% of the month‘s revenue is expected to be from credit sales and thus shares between bank
and promoters at a proportion of 4:1.
Raw Bills Salaries & Cash

Materials Receivable Wages for 1 Flow Tot
BANK: OWN (15 days (20% of 1 month Work
0:1
stock 40%) month) Capi
(50:50) (80:20) Total salary/12
YEAR 1
Bank 8.098 163.656
Owner 8.098 40.91 12.885 2
TOTAL 16.196 204.566 12.885 2 235.6
YEAR 2
Bank 8.715 178.464 -
Owner 8.715 44.616 12.885 2
TOTAL 17.436 223.08 12.885 2 255.4
The salaries and wages expenditure has to be met by the promoters itself. The liquid cash
portion, which is 2 lakhs also, has to be raised by promoter‘s fund.
AMOUNT IN LAKHS
YEAR 3
Page | 77
Bank 9.094 188.38 -
Owner 9.094 47.09 14.173 2
TOTAL 18.188 235.47 14.173 2 269.831
YEAR 4
Bank 9.474 193.92 -
Owner 9.474 48.482 14.173 2
TOTAL 18.948 242.40 14.173 2 277.521
YEAR 5
Bank 9.96 207.98 -
Owner 9.96 51.99 15.59 2
TOTAL 19.92 259.97 15.59 2 297.48
Page | 78
CHAPTER – 14
FINANCING THE PROJECT
Page | 79
FINANCING THE PROJECT
TOTAL COST OF THE PROJECT = Rs 2702.852 Lakhs

DEBT
Long Term Loan from ICICI Bank @12.85% = Rs 1657.849 Lakhs

Total Debt = Rs 1657.849Lakhs
Equity
Share Capital =Rs 615.001Lakhs
Promoter‘s contribution =Rs 410.001Lakhs
Subsidy
Subsidy = Rs. 20 Lakhs
Total equity = Rs. 1045.002Lakhs
Page | 80
CHAPTER – 15
PROFITABILITY STATEMENT
Page | 81
PROFITABILITY STATEMENT
The table illustrates the profits and also the cash position at the end of the year.
Depreciation in all fixed assets is calculated by diminishing the value method (W D V
– Written down Value method). This is written off at the rate of 10% per annum on building
and structures, 18% per annum on miscellaneous fixed assets
The balance amount would be paid back in the following years by which time the business
would be stabilized.
PROFITABILITY STATEMENT ( in Lakhs)
Particulars I year II Year III Year IV Year V Year
Occupancy % 65 % 70% 73% 76% 80%
A Operating Profit 880.426 980.824 1032.391 1062.391 1144.099
Interest on long term

203.086
1 loan 162.409 121.852 81.234 40.617
2 Depreciation 213.208 180.753 154.725 133.357 115.667
Preliminary & Pre-

3 50.724
operative Expenses 50.724 50.724 50.724 50.724
Interest on bank
17.60
4 overdraft 19.18 20.24 20.84 22.33
B Profit before tax 395.808 567.758 684.85 776.236 914.761
5 Tax(30% of B) 118.742 170.327 205.455 232.87 274.428
6 Surcharge(5% of 5) 5.937 8.516 10.272 11.64 13.721
Page | 82
Education Cess (3% of

3.562
6a 5) 5.109 6.163 6.986 8.232
C Profit after tax 267.567 383.806 462.96 524.74 618.38
7 Depreciation 213.208 180.753 154.725 133.357 115.667
Preliminary & Pre-

50.724
8 operative Expenses 50.724 50.724 50.724 50.724
D Surplus 531.499 615.283 668.409 708.821 784.771
Instalment on long
331.569
9 term loan 331.569 331.569 331.569 331.569
E Net Cash Flow 199.93 283.714 336.84 377.252 453.202
The income tax payable is 30% on profit before tax .
Page | 83
CHAPTER – 16
FUND FLOW STATEMENT
Page | 84
FUND FLOW STATEMENT- SOURCES OF FUNDS
Construction
Particulars I Year II Year III Year IV Year V Year
Period
Long Term
Loans 1657.849 -- -- -- -- --
Share Capital 615.001 -- -- -- -- --

Promoter's
Contribution 410.001 -- -- -- -- --
Subsidy 20 -- -- -- -- --
Gross Profit 488.253
-- 565.395 605.052 626.814 681.327
Depreciation -- 213.208 180.753 154.725 133.357 115.667

Pre-operative
and Preliminary
Expenses -- 50.724 50.724 50.724 50.724 50.724
Total 2702.852 752.185 796.872 810.501 810.895 847.718
Page | 85
CASH FLOW STATEMENT- DISPOSAL OF FUNDS
Construction
Particulars I Year II Year III Year IV Year V Year
Period
Fixed Assets 46.5 -- -- -- -- --
Margin of
Contingency 208.81 -- -- -- -- --
Preliminary
and Pre-
operative
Expenses 253.621 -- -- -- -- --
Interest during
implementation 152.314 -- -- -- -- --
Interest on long
term loan -- 203.086 162.409 121.852 81.234 40.617
Interest on
Bank
OD(annexure
10b) -- 17.60 19.18 20.24 20.84 22.33
Installment of
long term loan -- 331.569 331.569 331.569 331.569 331.569
Dividend
(10% on share 61.5
capital) -- 61.5 61.5 61.5 61.5
Total 661.245 613.755 574.658 535.161 495.143 456.016
Page | 86
CHAPTER – 17
BREAK EVEN ANALYSIS AND

DEBT SERVICE RATIO
Page | 87
BREAK EVEN ANALYSIS
Break even analysis is a study of cost revenue and sales. It finds out the volume of sales
required by the firms cost and revenue to be equal. The break-even point is the point when
the net income becomes zero. It is a situation of no profit and no loss.
The break even analysis explains to us the relationship between cost revenue and output that
helps a firm sell to its full competence. This analysis forms an important bridge between the
plans of the firm and business behaviour.
The break down analysis still remains an important tool for the management to function
efficiently.
1.Assuming the break even at 73% occupancy during the third year.
2.Total revenue (for the 3rd yr at 73% occupancy) :
= grand total revenue of 3rd year

= Rs. 2825.832 lakhs
3.Fixed Cost :
a. Power & electricity (40%) =Rs. 113.033 lakhs

b. Salary and wages =Rs. 170.082 lakhs
c. Taxes, insurances & legal fee =Rs. 56.51 lakhs
d. Interest on long term loan =Rs. 121.852 lakhs
e. Depreciation =Rs. 154.725lakhs
f. Administrative overheads =Rs. 141.29 lakhs
g. Advertisement and publicity =Rs. 282.583 lakhs
4. Variable Cost
1 Raw Materials 436.523
2 Electricity & Power 169.549
3 Repair & Maintenance 141.29
4 Interest on Bank OD 20.24
5 Miscellaneous Expenditure 141.29
Page | 88
Total of C 908.892
Total Fixed Cost = Rs. 1040.075 lakhs
5 . Contribution = total revenue – total variable cost
=2825.832 – 908.892
=Rs. 1916.94 lakhs
4.Break Even Point= fixed cost x 100

contribution
= 1040.075 x100
1916.94
= 54.25%
5.Break Even % @ absolute occupancy
= B.E.P x assumed occupancy of 3rd year

100
= 54.25x 73
100
= 39.60 %
Break Even Turnover
= total revenue x B.E.P Assumed occupancy
= 2825.832 x 39.60
73
= Rs. 1532.917 lakhs
Page | 89
DEBT SERVICE RATIO (amount in lakhs)
Sr YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

.n Particulars
o.
1 Interest on 203.086 162.409 121.852 81.234 40.617

long term loan
2 Installment on 331.569 331.569 331.569 331.569 331.569

long term
3 Total Rs.534.655 Rs.493.978 Rs.453.421 Rs.412.803 Rs.372.186
DSCR=covera 1.37:1 1.57:1 1.74:1 1.91:1 2.21:1

ge/debt
Average Debt Service Ratio :
= sum of debt service ratio for 5 years

5
1.37+1.57+1.74+1.91+2.21
5
= 1.76
Page | 90
CHAPTER – 18
COVERAGE RATIO
Page | 91
COVERAGE RATIO
The coverage ratio (CR) for the year is calculated by dividing the total coverage (this
includes tax, depreciation, preliminary and pre-operative expenses) by the total debt from
first year to sixth year. The average DSCR is calculated by dividing the total of all debt ratios
by six. Thus, average DSCR comes out to be:-
COVERAGE (IN LAKHS)
Sr.no Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
1
Profit after
267.567
Tax (PAT)
383.806 462.96 524.74 618.38
2 Depreciation 213.208 180.753 154.725 133.357 115.667
3
Preliminary
&Preoperati 50.724 50.724 50.724 50.724 50.724
ve cost
4
Interest on
203.086 162.409 121.852 81.234 40.617
long term loan
6 Rs.790.05
A. Total Rs.734.585 Rs.777.692 Rs.790.261 Rs.825.388
5
Page | 92
CHAPTER – 19
RATIO ANALYSIS
Page | 93
1. RETURN ON INVESTMENT
= Net cash flow x 100 Equity
For 1st year :
= 199.93 x 100
1045.002
= 19.13%
For 2nd year :
= 283.714 x 100
1045.002
= 27.15%
For 3rd year :
= 336.84 x 100
1045.002
= 32.23%
For 4th year :
= 377.252 x 100
1045.002
= 36.1%
Page | 94
For 5th year :
= 453.202 x 100
1045.002
= 43.37%
1. AVERAGE RETURN ON INVESTMENT
= sum of return on investment of 5 years

5
= 157.98
= 31.596%
2. PAY BACK PERIOD
= 100
Average return on investment
= 3 yrs 2 months
Page | 95
SENSITIVITY RATIO
3rd year of operation
Change in Income for 1% occupancy
Total Revenue = 13986.425/ 73
Occupancy %
= 191.594 lakhs
Change in Expenditure for 1% occupanc
Total Expenses = 8886.294 / 73
Occupancy %
= 121.73 lakhs
Sensitivity Ratio = Change in Income = 191.594/ 121.73 = 1.573
Change in ExpendituRe
Page | 96
CONCLUSION
Page | 97
CONCLUSION
Mangalore ,popularly known as the city of beaches, is among the most beautiful cities of
India. It is a more industrial city along be a pretty tourist attraction, centre with extreme
weather conditions and friendly people. It is a city where tourist, industrialist, educationist
and several other professionals keep frequenting. It is a center for many conferences,
company meetings, as well as cultural events and thus Mangalore offers abundant clientele to
hoteliers.
The Project under review is a 4 star hotel located at Kadri in Mangalore, about 13 km from
the airport and 4 km from the railway station. The total estimated cost of the project is Rs
2702.852 lakhs. There are 70 rooms and the occupancy has been assumed to be 65% on the
first year, and 80% in the 5 th year. Apart from the normal room service, the hotel provides
facilities like restaurant, banquet hall etc.
The estimated income and expenditure have been arrived keeping in view the economic costs
at which services can be offered to prospective clients. The debt equity ratio which is 1.59
speaks of healthy combination of debt of equity finance. The breakeven point percentage is
54.25, debt service coverage ratio is 1.76, sensitivity ratio is 1.573 and cost profit analysis is
0.529.It was seen that the hotel will be able to payback its investors, with a period of 3.2
years. The rate of depreciation on the assets and preliminary and pre operating expenses to be
written off per annum have been kept down at fairly reasonable limits which should prove to
be to the satisfaction of the auditors.
The estimated profitability as seen from profit before tax and profit after tax should provide
for worthwhile investment.
The details of the project report will reveal a sincere effort to illustrate quantitatively the
various estimates such as cost of project , means of finance, working capital position , loan
repayment , depreciation of assets , profitability etc , besides the breakeven analysis. The
emphasis is to present pictures as clear as possible of the financial implication of the
proposed hotel.
Considering all round aspects the proposed hotel, 70 rooms 4 star project reveals the
financially sound position and should work thus I conclude that the project is financially
viable and stable.
Page | 98
BIBLIOGRAPHY
Page | 99
BIBLIOGRAPHY
BOOKS
Marketing Management : Philip Kotler
Marketing For Profitability Industry : Roberts
Financial Management For Hospitality Industry: Andrew Schmidgal
Tourism Promotion and Development: Arora
Fundamentals of Financial Managemen: James C Vanhorne
WEBSITES
 www.mangaloretourism.com
 www.99acres.com
 www.propertywala.com
 www.karanatakatourism.com
 www.indiamap.com
 www.indiahotels.com
 www.ksrtc.com
 www.wikipedia.org
OTHER SOURCES
 Know India
 Other Books, Magazines, Journals.
 Hotel Staff.
 Mangalore Guides.
Page | 100
ANNEXURES AND EXHIBITS
Page | 101
INTERVIEW SCHEDULE NO 1 (For Hotels)

GENERAL INFORMATION
1. Name of the Hotel
2. Name of the person
Giving information
3. Location Suburb/ city/ Country side
4. Distance from
a. Airport ……………..Kms
b. Railway Station ……Kms
c. Bus Station ………..Kms
d. Port ………………... Kms
5. Year of starting the hotel
6. From which sector public/ private/ joint
7. Total No of Employees Male Female Manager
Administrative
Service Staff
Kitchen,
Restaurant / Bar Staff
Page | 102
Other
8. Total cost of the project
9. Annual Turn over
10. Other Hotels owned by this management
Management Names Location Grade
11. nearby Hotels Names` Location Grade
ACCOMMODATION INFORMATION
Type of hotel : Deluxe / 2 star/ 3 star/ 4 star/ 5 star
Size of the hotel : Small / Medium/ Big
Number of type of rooms : Types Total no.

avaialble
Single
Double
Suites
Page | 103
Other
4. Room tariff A/C : Single

Double
Suites
Other
Non A/C : Single

double
suits
others
5. Extent of room occupancy : Daily average

(Peak season)
Daily average
(Lean season)
6. Annual average during the
Last 3 months :
Room size : Single

Double
Suites
Page | 104
Other
8. Facilities in rooms : Telephone

Television
Music
Hot water
Refrigerator
Others (specify)
9. Room check out time : 12 Noon / 24 hours
10. Mode of payment of bills : Cash / Cheque / Others
11. Types of guests/ visitors : Type Volume in %

Business Tourists-
FIT
Groups
Vacationers
Government officials
Others (Specify)
Classification of guests / : (Domestic)………………%

Visitor (% of total)
(International)……………%
Page | 105
HOTEL FACILITIES (Please tick)
1.Facilities
Restaurant
Coffee shop
Bar & coffee shop
Swimming Pool
Health Club
Travel counter
Medical (in-house doctor)
Car rentals
Banquet
2.Details of Restaurant/ coffee shop/ Bar/ Night club
Restaurant/ Coffee Seating A/C Oper Type of Guest in – Sales/ Covers sold
shop/bar/club Capacity hours food house, out day Nos. Nos. & amnt
Non
house
A/c
Special Restaurant
Coffee shop
Night club
Page | 106
3.Details of Conference / seminar/ banquets/ conventions

Details Nos held Available Avg no of Charges per
per day capacity participants participants
Conventions
Conferences
Seminars
Banquets
Sp occasions like
marriage etc
FUTURE PLANS
1. Accommodation Facilities (Rooms) yes/ no
2. Expansion of F & B outlets yes/no
3. Diversification yes/ no
If yes, what kind of diversification
4. Other Plans (if any please specify
ADDITIONAL INFORMATION GATHERED
(By the investigator)
Name of the investigator
Group No if any
Date of data collection
Page | 107
MARKET FEASIBILITY SURVEY
INTERVIEW SCHEDULE NO 2 (For Hotel Guests)
A. GENERAL
1. Name of the guest:
2. Age :
3. Sex :
4. Educational background :
5. Profession :
6. Nationality :
7. Purpose of visit : Business/
Tourism/ Vacations/Others 8 If an non Indian, is it
your first visit to India: Yes / No
a) Places visited so far?
b) Next place of visit:
9. Type of tour package : Group/ Organized by tour operator/

Govt.
Organized /Institutional / self
10. Your impression about the tour :
Page | 108
B. ACCOMMODATION & FOOD SERVICE
Name of the hotel staying in type:
Type of room occupied :
Room Tariff :
How did you choose this hotel :
What factors did you consider :a

b
What are the facilities provided?

In this hotel a
b
c
d
e
What additional facility does you
Need x
Page | 109
1. Are you able to enjoy your Stay in this hotel :
2. Type of food that you like to have : Non Veg / Veg / Others
3. How much do you want to spend On food per day?
4. What is your opinion on the hotel tariff considering
5. the facilities provided : Expensive / Moderate / Fair / Low
C. IMRESSIONS
A Please give your impressions on the following
particulars : Expensive /Good / Satisfactory / Poor
1. Accommodation
2. Food service
3. Beverage service
4. Hospitality
5. Courtesy of staff
6. Cleanliness and Hygiene
Page | 110
7. Accounts and billing
8. Entertainment
9. Information
10. Shopping arcades
11. Image and atmosphere of the hotel
12. Parking facilities
13. Location
14. a. Others (Specify)
b. Your suggestions to
c. Others comment Name of the Investigator
Date and Place of the Interviewer
Page | 111
Page | 112
LAYOUT OF THE ROOM
SUITE
Page | 113
DELUXE ROOM
Page | 114
LAYOUT OF THE RESTAURANT
AROMA BAR & COFFEE SHOP
Page | 115
KUDLA RESTAURANT
Page | 116
LAYOUT OF COFFEE SHOP KITCHEN
Page | 117
THE HIERARCHY OF THE HAVANA PALACE
Hotel General Manager
Front Executive Food & Executive

Office Housekeeper Beverage chef
Manager
Manager
HR Manager Chief Engineer Chief security

officer
Sales& Kitchen
Finance
Marketin Stewarding
manager
g Executive
Manager
Page | 118
THE HIERARCHY OF FRONT OFFICE
Front Office Manager
Duty Manager Night Auditor
Business Centre Assistant
Front Office Assistant
Airport Representative
Bell Boys
Telephone Supervisors
Telephone Operators
HIERARCHY OF HOUSEKEEPING DEPARTMENT
Executive Housekeeper
Floor Supervisor Public a re supervisor Linen room supervisor

a
Room Boys Public area assistants Linen Maids
Florist Linen Boys
Page | 119
HIERARCHY OF PRODUCTION DEPARTMENT
EXECUTIVE CHEF
SOUS CHEF
CHEF DE PARTIE
COMMIS
Page | 120
HIERARCHY OF SERVICE DEPARTMENT
F&B MANAGER
BANQUET MANAGER OUTLET MANAGER
ASST. BANQUET MANAGEMENT CAPTAIN
CAPTAIN STEWARDS
STEWARDS
Page | 121
HIERARCHY OF ENGINEERING DEPARTMENT
Chief
Engineer
Technicia
ns
Air-
Audio Plumbin Electric
conditioni
Video g al
ng
Page | 122
HIERARCHY OF KITCHEN STEWARDING
Kitchen
Stewarding
Supervisor
Utility Workers Dish Wasters Pot Washers
Page | 123
LAND AND SITE DEVELOPMENT
PARTICULARS IN LAKHS
Size of Land x Rate per sq Ft 299.227
( 19948.5 sq.ft x Rs.1500)
Add Conveyance 18% 44.884
Add Development 15% 29.923
Total Land cost 374.034
Page | 124
BUILDING AND OTHER CIVIL WORKS
PATICULARS RS. IN LAKHS
Build up area x rate / sqft (124275 x 1000) 1083.62
Add Electricity 18% 195.05
Add Plumbing 15% 162.543
Total Building Cost 1441.213
Page | 125
PLANT AND MACHINERY
Lifts: Rs. 12.5 lakhs
Generators 3 nos: Rs. 8 lakhs
Transformers 3 nos.: Rs. 4 lakhs
Bore wells and pumps: Rs. 5 lakhs
Boilers: Rs. 5 lakhs
CCTV & music channel: Rs. 10 lakhs
units : Rs. 15.5 lakhs
EPABX: Rs. 5 lakhs
Dish washer: Rs. 3 lakhs
Heavy duty photocopier: Rs. 3 lakhs
Kitchen equipments: Rs. 20.35 lakhs
Fire fighting and security equipment: Rs. 2 lakhs

TOTAL:Rs.93.35 lakhs
Page | 126
KITCHEN EQUIPMENTS
A Rs.in B Rs.in C Rs.in

lakhs lakhs lakhs
Gas Range 2 Rice cooker 0.8 Dough maker 0.50
Baking 2 Trolley 0.6 Pot racks 0.60

oven
Tandoor 0.50 Grinder 0.4 Potato peeler 0.80
Mincer 0.07 Ice cube 1 Salamander 0.15

machine
Deep 2.2 Walkin 4 Knifes 0.09

freezer coolers
Deep fat 0.40 Ice cream 0.80 Baine marie 0.15

fryer cabinet
High 0.25 Juice mixer 0.05 Micro wave 0.45

pressure
burner
Stainless 0.15 Pots & 1 Pine blender 0.07

steel pans
burner
Pizza oven 0.40 Bottle 0.27 Miscellaneous 1

cooler
TOTAL 7.62 8.92 3.81
GRAND TOTAL(A+B+C) = Rs. 20.35 lakhs
Page | 127
FURNITURE AND FIXTURE OF ROOM
Deluxe Executive
Suite
Sr.no Particulars Room Room
(in rupees)
(in rupees) (in rupees)
1 Queen Bed 15000 - -
2 King Bed - 20000 20000
3 Study Table 5000 7000 8000
4 Chair (2) 1500 2000 2000
5 Sofa 12000 12000 15000
6 Dresser + Stool 6000 6000 8000
7 Cupboard 7000 7500 10000
8 Mirror 3000 3000 5000
9 Carpet 7000 7000 15000
10 TV + Rack 40000 40000 40000
11 Luggage Rack 4000 5000 7000
12 Upholstery 8000 8000 15000
13 Water Closet 2000 4000 4000
Page | 128
14 Bathtub 10000 10000 12000
15 Washbasin 3000 3500 4000
16 Room Fixtures 7000 8000 10000
17 Bath Fixtures 5000 6000 10000
18 Miscellaneous 12000 15000 20000
19 TOTAL (a) 147500 164000 205000
20 No of Rooms (b) 50 14 6
21 TOTAL COST OF
Rs.7375000 Rs. 2296000 Rs.1230000
CATEGORY (a x b)
TOTAL COST OF ROOMS = Rs 109.01 lakhs
FOOD AND BEVERAGE OUTLETS
PRICE COST
Sr. no OUTLET PARTICULARS Nos.
(in rupees) (in rupees)
1 Speciality Restaurant Tables 20 7000 140000
Chairs 80 1200 96000
Carpet (sqft) 20 1000 20000
Page | 129
Side Station 4 5000 20000
Décor 20000
Fixtures 15000
Misc 5000
TOTAL Rs.316000
2 Coffee Shop Tables 25 4500 112500
Chairs 100 800 80000
Side Station 5 5000 25000
Décor 20000
Fixtures 14000
Misc 5000
TOTAL Rs.256500
3 Banquet Hall Buffet Tables 15 7000 105000
Conference Tables 5 5000 25000
Chairs 250 700 175000
Podium 1 3000 3000
Bar Counter 1 10000 10000
Décor 24000
Fixtures 20000
Misc 5000
TOTAL Rs.367000
Page | 130
4 Room Service Buffet Tray 20 500 1000
Tea Tray 30 250 7500
Trolley 3 1500 45000
Hot Case 5 1000 5000
Tray Rack 2 5000 1000
RSOT Desk 1 5000 5000
Fixtures 5000
Misc 5000
TOTAL Rs.74500
5 Business Centre Tables 5 5000 25000
Chairs 5 1000 5000
Décor 7000 7000
Fixtures 6000 6000
Misc 5000 5000
TOTAL Rs.48000
TOTAL COST OF FOOD AND BEVERAGE OUTLETS – Rs. 10.62 LAKHS
Page | 131
Sr. DEPARTMENT PARTICULARS Nos. PRICE COST

no.
(in (in rupees)
rupees)
1 Stores, Purchase, House Cupboards 15 2000 30000

Keeping
Shelves 20 1000 20000
Desks 4 3000 12000
Chairs 8 500 4000
Bins 8 2000 16000
Fixtures 3000 3000
Misc 3000 3000
TOTAL Rs.88000
2 Administrative Offices Cupboards 12 2000 24000
Shelves 20 1000 20000
Desks 30 3000 90000
Chairs 30 500 15000
Décor 100000 100000
Sofas 20000 20000
Fixtures 50000 50000
Misc 30000 30000
Page | 132
MISCELLENEOUS FIXED ASSETS
ROOMS:
Telephone/ internet/ fax: Rs. 5 lakhs
TOTAL :Rs. 5 LAKHS
FBS OUTLET:
Crockery and cutlery : Rs. 5 lakhs
Glassware : Rs. 5 lakhs
Stainless steel equipments : Rs. 3.5 lakhs
Guest disposable : Rs. 1 lakhs
TOTAL :Rs. 14.5 LAKHS
HOUSEKEEPING:
Linen: Rs 10 lakhs
Staff uniform : Rs. 6 lakhs
Housekeeping and store trolleys: Rs. 2 lakhs
Machine tools: Rs. 4 lakhs
Cleaning supplies: Rs. 2 lakhs
Guest disposable : Rs. 1 lakh
Guest supplies : Rs. 3 lakhs
TOTAL : Rs. 28 LAKHS
Page | 133
GRAND TOTAL : Rs. 46.5 LAKHS
MARGIN FOR CONTINGENCY
Particulars Rs.in lakhs
Total cost of land 374.034
Total cost of building 1441.213
Total cost of Plant and Machinery 93.350
Total cost of Furniture and Fixtures 133
Total cost of Miscellaneous assets 46.5
Total 2088.097
Margin For Contingency
10% of Total Fixed Assets
= 10 *2088.097
100
= Rs. 208.81 lakhs
Page | 134
SALARIES AND WAGES

SALARIES AND WAGES FOR A MONTH:
SALARY TOTAL
DEPARTMENT/ NO. OF
Sr.no.
DESIGNATION EMPLOYEES In In Rupees
Rupees
ADMINISTRATIVE
1 General Manager 1 70000 70000
General Manager‘s
2 1 9000 9000
Secretary
3 AGM 1 35000 35000
TOTAL 3 Rs.114000
FRONT OFFICE
4 Front Office Manager 1 35000 35000
5 Lobby Manager 1 20000 20000
6 Cashier 1 10000 10000
7 Front Office Asst 3 8000 24000
8 Bell Captain 1 5000 5000
9 Bell Boy 3 4000 12000
10 Guest Relation Executive 1 8500 8500
Page | 135
11 Night Auditor 1 10000 10000

24 Captain 4 10000 40000
TOTAL 12 Rs.124500
25 Steward 6 8000 48000
26 Bartender 1 10000 10000

FOOD & BEVERAGE
PRODUCTION
Room Service Order
27 1 8000 8000
12 Executive Chef
Taker 1 60000 60000
Personnel
13 TOTALChef
Sous 211 40000 40000Rs.283000
TOTAL 5 Rs.77000
14 Chef de Parties 3 12000 36000
HOUSE KEEPING
15 Commis 1 3 8000 24000
28 Executive FINANCE
House Keeper 1 40000 40000
16 DEPARTMENT
Commis 2 2 7000 14000
29 39 Account
Floor Manager
Supervisors 31 20000
12000 20000 36000
17 Commis3 3 6000 18000
30 40 RoomCashier
boy 101 120008000 12000 80000
TOTAL 13 Rs.192000
31 41 Asst. Cashier
Gardener 11 100005000 10000 5000
32 Housemen
FOOD TOTAL
& BEVERAGE 23 7000 Rs.42,00014000
35 SERVICE
Laundry Manager 1 12000 12000
Food & Beverage&
ENGINEERING
18 TOTAL 181 45000 45000Rs.187000
Manager
MAINTENANCE
42 SALES
Chief&Engineer
19 Restaurant Manager 11 25000
25000 25000
25000
MARKETING
43 Supervisors
20 Sales &Banquet Manage 11 15000
25000 15000
25000
Marketing
36 1 30000 30000
44
21 Technicians
Manager
Coffee shop Manager 13 7000
25000 21000
25000
Sales & Marketing Asst.
37 TOTAL 115 23000 Rs.61,000
22 Room Service Manager 25000 25000 23000
Manager
38 SECURITY 34
23 Room
Sales & service Steward
Marketing 80008000 32000 24000
45 Chief Security Officer 1 25000 25000
46 Supervisors 1 15000 15000
47 Security Men 5 7000 35000

Page | 136
48 Doorman 1 7000 7000

TOTAL 8 Rs.82000
KITCHEN
STEWARDING
Kitchen Stewarding
49 1 10000 10000
Manager
50 Utility Workers 3 5000 15000
51 Dishpot Washer 2 5000 10000
52 Dishwash superwisor 1 7000 7000
TOTAL 7 Rs.42000
SPA & PARLOUR

53 Spa Manager 1 25000 25000
54 Assistant 2 7000 14000
55 Hairdresser 1 5000 5000
56 Gymnasium Instructor 1 5000 5000
TOTAL 5 Rs.49000
57. HR MANAGER 1 35000 35000
GRAND TOTAL 104 Rs.1288500
Page | 137
Salaries for 3 months = Rs. 1288500 * 3
= Rs. 38.655 lakhs
Salaries for 1 year = Rs. 1288500 * 12
Sr. no. PARTICULARS AMOUNT (in lakhs )
1 Salaries & Wages (3 months) 38.655
2 Loan Processing & Application Fees 3
3 Project & Report Fees 2
4 Registration & Establishment 44.884
5 Insurance @2.5 % 41.689
6 Advertising & Publicity 4
7 Electricity Deposit 3
8 Telephone Deposit 1
9 Water Supply Deposit 5
10 Miscellaneous 46.5
11 Margin for Working Capital 63.893
TOTAL Rs. 253.621
= Rs. 154.62 lakhs
PRELIMINARY AND PRE- OPERATIVE EXPENSES
Page | 138
ESTIMATION OF INCOME
ROOM SALES( DELUXE ROOMS- 49)
YEAR ROOM %OCCUPANCY NO. OF Rs. In

TARIFF DAYS LAKHS
1 7000 65% 365 830.375
2 7000 70% 365 894.25
3 7000 73% 365 932.575
4 7000 76% 365 970.90
5 7000 80% 365 1022.00
ROOM SALES( EXECUTIVE- 14)

TARIFF DAYS LAKHS
1 9000 65% 365 298.935
2 9000 70% 365 321.930
3 9000 73% 365 335.727
4 9000 76% 365 349.524
5 9000 80% 365 367.920
Page | 139
ROOM SALES( SUITE ROOMS- 6)

TARIFF DAYS LAKHS
1 12000 65% 365 170.82
2 12000 70% 365 183.96
3 12000 73% 365 191.844
4 12000 76% 365 199.728
5 12000 80% 365 210.240
ESTIMATION OF INCOME
FBS OUTLETS
SPECIALITY RESTAURANT:
YEAR COVER RATE NO. OF Rs. IN

SOLD DAYS LAKHS
1 52 1275 365 241.995
2 56 1275 365 260.610
3 58 1275 365 271.779
4 61 1275 365 283.88
5 64 1275 365 297.84
Page | 140
COFFEE SHOP & BAR:
YEAR COVER RATE NO. OF Rs. IN

SOLD DAYS LAKHS
1 65 900 365 213.525
2 70 900 365 229.950
3 73 900 365 239.805
4 76 900 365 249.660
5 80 900 365 262.800
INCOME FROM ROOM SERVICE
YEAR NO. OF RATE NO. OF Rs. IN

ROOM DAYS LAKHS
1 45.5 1500 365 249.113
2 49 1500 365 268.275
3 51 1500 365 279.225
4 53 1500 365 291.270
5 56 1500 365 306.600
Page | 141
INCOME FROM BANQUET:
YEAR AVG. PAX NO. OF Rs. IN

REALIZATION DAYS LAKHS
1 450 163 365 267.30
2 450 175 365 287.438
3 450 183 365 300.577
4 450 190 365 312.075
5 450 200 365 328.500
INTEREST ON TERM LOAN
loan from ICICI Bank @ 12.85% p.a
YEAR LOAN INSTALLMENT INTEREST BALANCE

BALANCE
1 1657.849 331.569 203.086 1326.28
2 1326.28 331.569 162.469 994.711
3 994.711 331.569 121.852 663.142
4 663.142 331.569 81.234 331.569
5 331.569 331.569 40.617 0
Page | 142
INTEREST ON WORKING CAPITAL LOAN
Bank ICICI Bank @ 10.25 %
(Rs.)
Year Amount in lakhs in lakhs
1 171.754 Amount x interest % 17.60
Interest on implementation= term loan X interest/2 X period of implementation /2
=1657.849 X 12.25/200 X 3/2
= 152.314
Page | 143

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MARKET FEASIBILITY & FINANCIAL VIABILITY

TOPIC: “MARKET FEASIBILITY & FINANCIAL VIABILITY”

. THIS IS TO CERTIFY THAT PROJECT REPORT ON.

FACULTY GUIDE. Chef Mohan Das

I MOHAMMED FAISE AY, HEREBY DECLARE THAT THE PROJECT

UNDER THE GUIDANCE OF Chef Mohan Das.

NAME: MOHAMMED FAISE AY

REG NO: 19SBC27030 DATE:

I AM VERY THANKFUL TO Dr. SUDHARSHAN GM PRINCIPAL

I AM IMMENSELY THANKFUL TO MY GUIDE Chef Mohan Das FOR

FINALLY I THANK ALL MY FRIENDS FOR THEIR ASSISTANCE WHEN

Chapter II Scope , Objective, Methodology and Limitation of the Project

Chapter III Profile of the Place and site

PART A – MARKET FEASIBILITY

Chapter IV Demand Quantification

Chapter V Technical Details of Proposed Project

Chapter VI Recommendation Market Mix

Chapter VII Conclusion

PART B – FINANCIAL VIABILITY

Chapter VIII Introduction of Financial Aspect of the Proposed Project

Chapter X Man power Requirement and cost

Chapter XI Sales Revenue

Chapter XII Operational Expenses

Chapter XIII Working Capital Requirement

Chapter XIV Financing the project

Chapter XV Profitability Statement

Chapter XVI Fund Flow Statement

Chapter XVII Break Even Analysis, Debt, Service ratio

Chapter XVIII Coverage Ratio

Chapter XIX Ratio Analysis

Annexure and Exhibits

INTRODUCTION TO HOTEL AND

INTRODUCTION TO TOURISM AND HOTEL INDUSTRY

TRENDS IN INDIAN TOURISM

THE ADVENT OF HOSTELS

Zostel reception in Jaipur

THE GROWTH OF BOUTIQUE HOTELS

Amarya villa, Delhi

Chandelao Garh, village hotel in Rajasthan

ADVENTURE SPORTS OPPORTUNITIES

White water rafting in Himachal Pradesh

SOME INFORMATION ABOUT INDIA:-

 Language: Hindi is the national language

 National Dress: Dhoti Kurta

 Religion: Hindu, Muslim, Buddhism, Sikh, Jainism, Christian

 Capital: New Delhi

 National Bird: Peacock

 National Animal: Tiger

 National Food: Rice

 National Flower: Lotus

ESTIMATES OF TOURIST ARRIVALS TO INDIA FORECAST 2016-

Indian hotels can be classified in five major types:

NATURE AND CHARACTERISTICS OF HOTEL:

 Its product is tangible.

 Its product is not transportable.

 Its product is highly perishable or has a short life span.

 Demand for its product is derived demand. The

 Providing living accommodation.

 Supply food, drink etc., for immediate consumption.

 Transportation, recreational and entertainment facilities.

 Any other function incidental or ancillary to this

GROWTH AND DEVELOPMENT OF HOTEL INDUSTRY

EMERGING TRENDS IN HOSPITALITY INDUSTRY