College of Engineering

MSc in Engineering Management Program

Project: Building a Five Star Hotel in Abu Dhabi

Course Name: Project Management

Course Number: MEM 501

Instructor Name: Dr. Wisam Abu-Jadayil

Student Name: Nouf Alyammahi Student ID: 1081368

Student Name: Khaseibah Alhefeiti Student ID: 1086781

Student Name: Ahmed Elthagib Student ID: 1045363

Winter 2022

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Abstract

The main goal of the project is to build a 5-star hotel in one of Abu Dhabi city beaches,
discussing many activities involving planning a proper construction project. This report shows the impact
and value that will be added to Abu Dhabi government economy while discussing in detail the phases of
the project conception, planning, resources allocation, performance, cost, and the termination.

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Table of Contents
Abstract.......................................................................................................................................................1
Table of Contents........................................................................................................................................2
Table of Figures...........................................................................................................................................3
List of tables................................................................................................................................................3
Introduction.................................................................................................................................................4
1. Project Conception, Definition, and Initiation.....................................................................................4
1.1 Project scope:....................................................................................................................................4
1.2 Project objectives:..............................................................................................................................5
1.3 Stakeholders......................................................................................................................................5
1.3.1 Stakeholders roles and responsibilities:......................................................................................5
1.4 Feasibility Study................................................................................................................................6
1.4.1 Technical Feasibility...................................................................................................................6
1.4.2 Economic Feasibility..................................................................................................................7
1.4.3 Operational Feasibility................................................................................................................8
1.4.4 Scheduling Feasibility.................................................................................................................8
1.5 Payback period..................................................................................................................................9
Project Planning..........................................................................................................................................9
2.1 Project Charter.............................................................................................................................9
2.2 WBS................................................................................................................................................11
2.3 WBS Complete Schedule.................................................................................................................13
2.4 Gantt Chart......................................................................................................................................15
3. Project Resources Allocation.................................................................................................................15
3.1 Resource Allocation........................................................................................................................15
3.2 RACI Matrix....................................................................................................................................16
3.3 Cost Calculation..............................................................................................................................18
4. Project Performance Monitor and Control.........................................................................................19
4.1 Work Overview Report....................................................................................................................20
4.2 Milestone Report.............................................................................................................................21
4.3 Late Tasks Report............................................................................................................................21
4.4 Resource Overview..........................................................................................................................22
5. Project Evaluation, Closeout, and Termination.....................................................................................22

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 5.1 Closeout Report...............................................................................................................................22
Conclusion.................................................................................................................................................23

Table of Figures
Figure 1: Hotel revenue...............................................................................................................................7
Figure 2: WBS...........................................................................................................................................12
Figure 3: WBS schedule.............................................................................................................................14
Figure 4: WBS schedule.............................................................................................................................14
Figure 5: Gantt chart..................................................................................................................................15
Figure 6: Resources allocation...................................................................................................................16
Figure 7: Cost calculation..........................................................................................................................19
Figure 8: Work overview report................................................................................................................20
Figure 9: Project overview.........................................................................................................................20
Figure 10: Milestone report.......................................................................................................................21
Figure 11: Late tasks.................................................................................................................................21
Figure 12: Resources overview.................................................................................................................22

List of tables
Table 1: Key dates.......................................................................................................................................8
Table 2: Project charter...............................................................................................................................9
Table 3: RACI Matrix...............................................................................................................................17
Table 4: Project closeout report.................................................................................................................23

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Introduction
Abu Dhabi is one of the best tourist spots in United Arab Emirates (UAE) and the government of Abu
Dhabi is always supporting tourism and engage the people and organization to start several start-ups for
enhancing the tourism. Tourists from whole world will come to UAE as it is famous for the tourism. A
well-known company located in Abu Dhabi is planning to build a five-star hotel in one of the beaches of
Abu Dhabi. So, the company needs a complete and details project management plan for the project that
contains the estimated budget and time needed for completing the project. Along with that the resources
that are needed for completing the project will also need to recognize in the project management. This
plan will also contain the feasibility study, work breakdown structure, and closeout report for the same.

1. Project Conception, Definition, and Initiation

Abu Dhabi is famous for its tourism and support from the government for the foreigners and for
building new tourist places. There are some existing five start hotels are located in Abu Dhabi. The
specialty for this new hotel will be that is will be created in one of the beautiful beaches in Abu Dhabi.
Before starting the project, it is necessary to figure out the problems that they need to face during the
development process and benefits and profit that can earn by the company from the hotel. The first part of
the project management plan will be the project conception and definition that contains the feasibility
study.

1.1 Project scope:

1- To complete the project within the agreed timeframe of three years from Feb 2022 to Aug 2025,
and handover to the owner of “Hilton Hotel”.
2- To meet the requirements of the owner as following:
 An occupancy of 200 single room, 20 suits and 10 apartments.
 5 Meeting rooms.
 4 Restaurants and coffee shops.
 Guest areas.
 Reception.
 3 elevators.
 IT center
3- To complete the all the project works within agreed budget of 76,273,280 AED that includes
goods, materials, food, accommodation, transportation, and labour cost.

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 4- To maintain the project quality according to the plan, without omitting any single part of project
work and hand over the project after revising entire the project work, to make ensure the owner
are satisfied with the project work.
5- To make sure the customer is satisfied, by finishing the project with the specification the
customer provided and exactly the customer wants.

1.2 Project objectives:

1- To monitor the project works day-by-day and how the project team performance to avoid the
problems that are facing on the project activities to complete the project on time.
2- Adopt an effect monitoring system to handle goods, materials and other services which are used
in the project to control the budget.
3- Supervise the all the project works, to ensure that the works are carryout according to the plan
provided, to maintain the quality of the work.
4- Get the continuous feedback from owner or consultant that the owner has selected, to provide the
product the customer actually wants.
5- Continuous monitoring of weather forecast, to organize the work schedules, suppliers’
transportation, to mitigate the obstacle facing on the project performance.

1.3 Stakeholders

Stakeholders of this project defined as all internal and external stakeholders. Internal stakeholders
who involved in this project are Investors, investing for the project, Board of Directors, Managing
director, Organizational staffs, Project manager, Project team members, Contractor and Suppliers.
External stakeholders are government agencies, Architectures, Consultants, Competitors, Tourists, and
banks.

1.3.1 Stakeholders roles and responsibilities:

1- The project investors will oversee the research of the business and finalized the budget for the
project and investing on project.
2- Project board of directors will be establishing the organization mission and vision, establish the
plan and provide resources required for the project.

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 3- Managing director will develop the organization strategic plan in an effective manner and
accountable for overall performance of organization. Managing day-to-day activities of the
business, authority delegated from board and implementing board policies and strategy, allocating
resources required to achieve the objectives.
4- Project Manager responsibility is completing the project on time, within the provided or given
budget, and maintain the quality criteria provide training for the project staffs, maintain the
project quality, identify the project procurement, develop and approve project charter, define the
goals and objectives.
5- Project Teams members responsible are performing the project activities. They also help
obtaining commitments to complete the project within schedule and limited budget.
6- Contractors will carry out the task handover according to the design and plan and contract they
may be a construction or electrical.
7- A Supplier will supply good and material according to the contract, which are required for the
project and should maintain the quality standard of the according to the contract.

1.4 Feasibility Study

In the initial phase of the project, a detailed feasibility study will be conducted to understand the
scope of the project perfectly. After conducting the feasibility study, a feasibility report will be created
that will explains whether the project will be successful in the current environment. It will judge the
project practically to provide a detailed study report. There are various types of feasibility study,
Technical Feasibility, Economic Feasibility, Operational Feasibility, and Scheduling Feasibility.

1.4.1 Technical Feasibility

The technical feasibility study will be conducted to determine the resources that are needed for the
completion of the project and the technical specifications for the project. The development process for the
five-star hotels will consist of getting the approvals, construction of the building, interior works, and the
grand opening of the hotel. The following specialists are needed for building the five-star hotel:

 Project Manager: Responsible for managing the whole process of building the five-star hotel
from the beginning to the opening of the hotel
 Finance Manager: Responsible for managing all the finance for the project and controls the flow
of budget.

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  Legal Advisor: Responsible for help the company for getting the necessary approvals and
provide legal advises during the project.
 Building Contractor: Responsible for constructing the building according to the plan and
complete it on time within the budget.
 Human Resource Manager: Responsible for hiring necessary staffs for the hotel after the
construction.
 Quality Assurance Manager: Responsible for maintaining the quality of the building, interior,
and other things.
 Technical Staffs: Responsible for the technical things in the hotel including the CCTV and all
other technical details.
 Marketing Manager: Responsible for marketing the hotel for getting customers to the hotel.

1.4.2 Economic Feasibility

Economic feasibility study will contain the analysis on the cost of the project and the estimated
turnover from the hotel. This will help the company to analyze whether it will be beneficiary or non-
beneficiary for the company and determine that whether the project will be a cost-effective project or not.
The estimated budget for the proposed project will be AED 76,273,280.00 including the construction and
interior works. The estimated completion time for the project will be 1280 working days.

As any 5-star hotel the primary revenue is coming from the renting of booked room, and our hotel is
containing 200 rooms. The revenue of the rent for the hotel rooms, suits and apartments is calculated as
below:

Hilton Hotel
Revenue

20 suits 10 apartments
200 Rooms
revenue revenue
Figure 1: Hotel revenue

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1.4.3 Operational Feasibility

The operational feasibility study will analyze the existing system and describes how the proposed
system will be useful. For getting the operational feasibility study, it is necessary to understand the
requirements of the system in a detailed manner. The proposed project of Building a five-star hotel in
Abu Dhabi will going to implement the following operations:

 The hotel should contain 200 single rooms, 20 suits, and 10 apartments.
 The hotel should contain 5 meeting rooms for the corporate.
 There will be 4 restaurant and coffee shop included in the hotel.
 It should contain the reception and guest areas.
 An IT centre will be created for managing all the technical related works.
 And three elevators and staircases inside the building.

1.4.4 Scheduling Feasibility

The scheduling feasibility will describe the developing scheduling for the project. The proposed project of
building a five-star hotel will be planned to start on 04 th January 2022 and the other expected deadlines
for the project are given below

Table 1: Key dates

Milestones Expected Deadlines

Legal Approvals 03-03-2022

Budget Approvals 14-04-2022
Building Construction 09-01-2025
Interior Works 28-05-2026
Hiring Staffs 2-07-2026
Marketing 27-11-2026
Grand Opening 30-11-2026

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1.5 Payback period

The investment for building a five-star hotel in Abu Dhabi is estimated as 76,273,280

AED and expecting an annual payback of 12,500,000 AED from all the incomes related to this

hotel. So, the expected payback period can be calculated as:

Investment
Payback Period =
Cash flow per year

76,273,280
Payback Period = =6.1
12,500,000

That means the payback period for this five-star hotel will be approximately 6 years.

Project Planning
2.1 Project Charter

The project charter will describe the objectives, advantages, risks of the proposed project. The project
charter for Building a Five start Hotel in Abu Dhabi is given below:

Table 2: Project charter

Project Charter

Project Title Building a Five start Hotel in Abu Dhabi

Project Start Date 04-01-2022 Project End Date 30-11-2026

Project Manager Dr. Wisam Abu Jadayil

Description

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The proposed project of building a five-star hotel will be developed in one of the beaches in
Abu Dhabi. The new initiative will attract the tourists from worldwide to UAE especially to
Abu Dhabi. The project will contain the construction of building, interior works, and hiring
the necessary staffs.

Purpose

The main purpose of this project of building a five-star hotel is to invite tourists to the hotel
as it will be developed in the beach. The long-term goal of this project is to provide a huge
amount of job vacancies to the people including the foreigners as well.

Project requirements

The main requirement is the funding in order to compete other luxurious hotels and to attract
in terms of the design and to have a great experience

Objective

The primary objective of this project is to build a new five-star hotel in Abu Dhabi beach that
will invite tourists and also the UAE residents to the hotel to spend time there especially
during the vacation.

Scope

The scope of this project is the growing tourism industry that will invite the tourists from the
entire world. Due to the COVID – 19, now the tourism has comparatively less scope but most
of the people took vaccination and the tourism field will come back with more energy in the
coming years.

Acceptance criteria

The success criteria should meet in order to accept the project which are:
 Adhere to the deadline
 Follow the specifications
 Customer satisfaction

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  Adhere to safety

2.2 WBS

Work Breakdown Structure (WBS) is created for a project for developing the project step by step.
In WBS, the project is divided into small parts called chunks. These small parts are then assigned to the
corresponding resources. The project manager will create the project management plan for the project that
will ease the monitoring process and allow them to track the progress of the project development. The
WBS of Building a Five Start Hotel in Abu Dhabi is given below:

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 1.0 Build a Five Star
Hotel

1.3 Building
1.1 Legal approval 1.2 Budget Approvals 1.4 Interior Works 1.5 Hiring staffs 1.6 Marketing
Construction

1.3.1 Hire a Contractor

1.1.1 Build project 1.2.1 Create a Budget 1.5.1 Customer Service 1.6.1 Develop
to construct Hotel 1.4.1 desgin Interior
developmnet plan Plan Staffs Marketing Plan
Building

1.1.2 Get legal licences 1.2.2 Get approvals for 1.5.2 Housekeeping 1.6.2 Advertising in
1.3.2 Land Scaping 1.4.2 Design Exterior
anPermits the budget. staffs Social medias

1.3.3 Create Parking

1.4.3 Install Appliances 1.5.3 Front Desk Staff
Space

1.3.4 Manager Office 1.5.4 Kitchen Staffs

1.3.5 Rooms and suits 1.5.5 Restaurant Staffs

1.3.6 Restaurant and 1.5.6 Management

Coffee shops Staffs

1.3.7 Guest area

1.3.8 Reception

1.3.9 IT Centre

1.3.10 Electrical Work

Figure 2: WBS

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2.3 WBS Complete Schedule

The WBS complete schedule for the project is then created using the MS Project and identifies
the resources and allocates them for each activity in WBS and the time needed to complete each activity.
The project consists of multiple tasks with a specific start and finish time. The schedule shows the
availability of the manpower. The main factors needs to be taken into consideration are:

 Task to be done
 Task deadline
 The concerned personnel to complete the task

In this stage, the following steps should be determined in order to create the schedule:

 Define the activities

 Cost estimation
 Define dependent tasks

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Figure 3: WBS schedule

Figure 4: WBS schedule

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2.4 Gantt Chart

The Gantt chart is the actual flow of the project development with timelines that will get from the
MS Project.

Figure 5: Gantt chart

3. Project Resources Allocation

3.1 Resource Allocation

Identifying and allocating the resources to the appropriate activities is one of the most essentials parts
of the project management plan. The resource allocation will be done in the beginning of the project so
that the resources can utilize their skills for the successful completion of the project. Each activity is
allotted to a single resource and the entire resources are working together to achieve the final goal of the
project. The resources are required to ensure the completion of project which can be divided to
manpower, cost and the materials as the following resources are needed to build 5 star hotel:

1- Project Manager
2- Finance Manager
3- Legal Advisor
4- Building Contractor

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 5- Human Resource Manager
6- Quality Assurance Manager
7- Technical Staff
8- Marketing Manager
9- Building Materials
10- Furniture
11- Design Materials
12- Electrical Materials
13- Opening Ceremony (Cost)

Figure 6: Resources allocation

3.2 RACI Matrix

In RACI matrix, every task in the project is listed with the resources and their responsibilities.
The notations used in the RACI matrix are listed below:

 R: Responsible, which means who is responsible for completing the task.

 A: Accountable, which means who is making then decisions for the task.
 C: Consulted, which means who is communicated for taking decisions for the task.
 I: Informed, which means to whom the updating of the task needs to be informed.

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 Table 3: RACI Matrix

Task Name

Legal Advisor

Contractor

Marketing
Assurance

Technical
Resource
Manager

Manager

Manager

Manager
Building
Finance

Human

Quality
Project

Staff
1.0 Build a Five Star Hotel
1.1 Legal approval
1.1.1 Build project R C I A
development plan
1.1.2 Get legal license and I A R C
permits
1.2 Budget Approvals
1.2.1 Create a Budget Plan A R C I
1.2.2 Get approvals for the A R C I
budget.
1.3 Building Construction
1.3.1 Hire a Contractor to R A I C
construct Hotel Building
1.3.2 Land Scaping I A R C
1.3.3 Create Parking Space I A R C
1.3.4 Manager Office I A R C
1.3.5 Rooms and suits I A R C
1.3.6 Restaurant and I A R C
Coffee shops
1.3.7 Guest area I A R C
1.3.8 Reception I A R C
1.3.9 IT Centre I R C A
1.3.10 Electrical Work I R C A
1.4 Interior Works
1.4.1 design Interior A I R C
1.4.2 Design Exterior A I R C
1.4.3 Install Appliances A I R C
1.5 Hiring staffs
1.5.1 Customer Service A I R C
Staffs
1.5.2 Housekeeping Staffs A I R C

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 1.5.3 Front Desk Staff
1.5.4 Kitchen Staffs
1.5.5 Restaurant Staffs
1.5.6 Management Staffs
1.6 Marketing
1.6.1 Develop Marketing
Plan
1.6.2 Advertising in Social
medias
1.6.3 Invite Chief Guests
1.7 Grand Opening
A I R C
A I R C
A I R C
A I R C
I A C R
I A C R
I A C R
R I C A

3.3 Cost Calculation

The project manager will manage the budget to ensure the coverage on the staff salaries and the
purchases of the materials. Each resource in the project has a standard rate for their work. After assigning
the resources to the activities, the overall cost of the project will be calculated. And the estimated cost for
the proposed project is AED 76,273,280.00. This total cost for the project is calculated based on the
resources allocated for each task. For example, let’s take the task ‘Build Project Development
Plan’ task, and calculate the cost for it.

Resources needed for this task = Project Manager and Legal Advisor.

Cost for Project Manager = 450 AED per hour.

Cost for Legal Advisor = 380 per hour.

Duration of the task = 24 days = 24 * 8 = 192 hours

Cost of project manager for this task = 192 * 450 = 86,400 AED.

Cost of legal advisor for this task = 192 * 380 = 72,960 AED.

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Total cost for this task = 86,400 + 72960 = 159,360 AED.

Same like this, the cost for each task is automatically calculated by the MS Project and
added up to get the total cost for the project.

Figure 7: Cost calculation

4. Project Performance Monitor and Control

The project development process should be monitored continuously to track the progress of the
project. The project management plan created will contains the time duration and deadline for each
activity in the project and the milestones are listed. The milestones should be delivered in the exact
deadline. If any of the process is not completed on time, then they are called exceeding activities and the
activities that done before the deadline are called succeeded activities. Monitoring the activities with their
deadlines will help to figure out the distractions and deviations in the development process and allow the

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project manager to control it by taking action against it. The following reports will help the project
manager to understand the progress of the project development.

4.1 Work Overview Report

Figure 8: Work overview report

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Figure 9: Project overview
4.2 Milestone Report

Figure 10: Milestone report

4.3 Late Tasks Report

Figure 11: Late tasks

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4.4 Resource Overview

Figure 12: Resources overview

5. Project Evaluation, Closeout, and Termination

5.1 Closeout Report

The project closeout report will contain the assurance that is given to the higher authority that the
project will be complete successfully or not. This hotel construction project has very huge scope in the
tourism industry as it will create in the beach. So that the project will be a successful one that can retrieve
the capital as profit within a few years. In the closing phase, a report will show the if the project was a
success or not as its include the main points of the project to provide a clear picture of the performed
tasked in addition to the following:

 Complete all the steps need to be delivered

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  Project completion
 Follow the project management process

The project closeout report is given below:

Table 4: Project closeout report

Milestones Date Accepted Status

Legal Approvals 03-03-2022 In Progress

Budget Approvals 14-04-2022 -
Building Construction 09-01-2025 -
Interior Works 28-05-2026 -
Hiring Staffs 2-07-2026 -
Marketing 27-11-2026 -
Grand Opening 30-11-2026 -

Conclusion

The opening of a new five-star hotel in Abu Dhabi will be a new initiate as it is created in a
beach. The project will contain a great scope in the tourism of Abu Dhabi. The project management plan
will be created by the project manager for this project. An efficient project management plan is necessary
for successfully complete the project within the desired time and budget. Before starting the
documentation for this project, the team members did a thorough study about the scope and benefits of
the project. Each team members worked in the preparation of the document and from this we learned a lot
new technologies that will help us in the future.

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