Professional Documents
Culture Documents
Adithyanpnair Project
Adithyanpnair Project
Adithyanpnair Project
HOTEL MANAGEMENT
PROJECT REPORT
Submitted in Partial
Fulfillment of the requirement
for The B.H.M. degree
Topic : “Market Feasibility & Financial Viability”
By:Adithyan P Nair
Registration No : H1910403
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CERTIFICATE
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DECLARATION
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.
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ACKNOWLEDGEMENT
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 project.
Name of student
Mr. Adithyan P Nair
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CONTENTS
PAGE
PARTICULARS
NO.
1. Introduction 3-18
PART-A
MARKETING FEASIBILITY
7. Conclusion 79-80
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CONTENT
PARTICULARS Page.no
PART- B
FINANCIAL VIABILITY
3. Means Of Finance 85
5. Estimated of Income 87
8. Depreciation Statement 91
9. Profitable Statement 92
13. Sensitivity analysis & Cost benefit analysis & Network analysis 101-103
Conclusion
Bibliography
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CHAPTER 1
INTRODUCTION TO
MARKET & MARKETING,
TOURISM AND
HOSPITALITY INDUSTRY
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The term market is derived from the Latin word ‘Marcatus’ which merchandise, wares,
traffic, trade or a place where business is conducted. The common uses of market means a
place where goods are bought and sold.
Market is a place where goods and services are exchanged. Markets consist of buyers and
sellers with facilities to communicate each other for transactions of goods and services.
Marketing is the economic process by which goods and services are exchanged between the
producers and the consumers and their value determined in terms of money price.
The action or business of promoting and selling products or services, including market research
and advertising is called marketing.
A market is a place, i.e. physical or non-physical. On the other hand, marketing is an art
(abstract) of creating a utility of the product.
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The market is a process which sets the price of the product with the demand and supply
forces. Conversely, marketing is a process which analyses, creates, informs and delivers value
to the customers.
The market varies by product, place and other factors. As opposed to marketing, the
philosophy can be consistently applied, irrespective of product, place and any other
factor.Market facilitates trade between the parties. Unlike marketing, that creates a link
between the customer and company, to provide the right product at a right time at right place.
TOURISM
Tourism, the act and process of spending time away from home in pursuit of recreation,
relaxation, and pleasure, while making use of the commercial provision of services. As such,
tourism is a product of modern social arrangements, beginning in western Europe in the 17th
century, although it has antecedents in Classical antiquity. It is distinguished from exploration
in that tourists follow a “beaten path,” benefit from established systems of provision, and, as
befits pleasure-seekers, are generally insulated from difficulty, danger, and embarrassment.
Tourism, however, overlaps with other activities, interests, and processes, including, for
example, pilgrimage. This gives rise to shared categories, such as “business tourism,” “sports
tourism,” and “medical tourism” (international travel undertaken for the purpose of receiving
medical care).
the Western tradition, organized travel with supporting infrastructure, sightseeing, and an
emphasis on essential destinations and experiences can be found in ancient Greece and Rome,
which can lay claim to the origins of both “heritage tourism” (aimed at the celebration and
appreciation of historic sites of recognized cultural importance) and beach resorts. The Seven
Wonders of the World became tourist sites for Greeks and Romans.
Pilgrimage offers similar antecedents, bringing Eastern civilizations into play. Its religious
goals coexist with defined routes, commercial hospitality, and an admixture of curiosity,
adventure, and enjoyment among the motives of the participants. Pilgrimage to the earliest
Buddhist sites began more than 2,000 years ago, although it is hard to define a transition fro m
the makeshift privations of small groups of monks to recognizably tourist practices.
Pilgrimage to Mecca is of similar antiquity. The tourist status of the hajj is problematic give n
the number of casualties that—even in the 21st century—continued to be suffered on the
journey through the desert. The thermal spa as a tourist destination—regardless of the
pilgrimage associations with the site as a holy well or sacred spring—is not necessarily a
European invention, despite deriving its English-language label from Spa, an early resort in
what is now Belgium. The oldest Japanese onsen (hot springs) were catering to bathers fro m
at least the 6th century. Tourism has been a global phenomenon from its origins.
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Transport innovation was an essential enabler of tourism’s spread and democratization and its
ultimate globalization. Beginning in the mid-19th century, the steamship and the railwa y
brought greater comfort and speed and cheaper travel, in part because fewer overnight and
intermediate stops were needed. Above all else, these innovations allowed for reliable time-
tabling, essential for those who were tied to the discipline of the calendar if not the clock. The
gaps in accessibility to these transport systems were steadily closing in the later 19th century,
while the empire of steam was becoming global. Railways promoted domestic as well as
international tourism, including short visits to the coast, city, and countryside which might
last less than a day but fell clearly into the “tourism” category. Rail travel also made grand
tour destinations more widely accessible, reinforcing existing tourism flows while
contributing to tensions and clashes between classes and cultures among the tourists. By the
late 19th century, steam navigation and railways were opening tourist destinations fro m
Lapland to New Zealand, and the latter opened the first dedicated national tourist office in
1901.
After World War II, governments became interested in tourism as an invisible import and as a
tool of diplomacy, but prior to this time international travel agencies took the lead in easing
the complexities of tourist journeys. The most famous of these agencies was Britain’s
Thomas Cook and Son organization, whose operations spread from Europe and the Middle
East across the globe in the late 19th century. The role played by other firms (including the
British tour organizers Frame’s and Henry Gaze and Sons) has been less visible to 21st-
century observers, not least because these agencies did not preserve their records, but the y
were equally important. Shipping lines also promoted international tourism from the late 19th
century onward. From the Norwegian fjords to the Caribbean, the pleasure cruise was already
becoming a distinctive tourist experience before World War I, and transatlantic companies
competed for middle-class tourism during the 1920s and ’30s. Between the World Wars,
affluent Americans journeyed by air and sea to a variety of destinations in the Caribbean and
Latin America.
Tourism became even bigger business internationally in the latter half of the 20th century as
air travel was progressively deregulated and decoupled from “flag carriers” (national
airlines). The airborne package tour to sunny coastal destinations became the basis of an
enormous annual migration from northern Europe to the Mediterranean before extending to a
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growing variety of long- haul destinations, including Asian markets in the Pacific, and
eventually bringing post communist Russians and eastern Europeans to the Mediterranean.
Similar traffic flows expanded from the United States to Mexico and the Caribbean. In eac h
case these developments built on older rail-, road-, and sea-travel patterns. The earliest
package tours to the Mediterranean were by motor coach (bus) during the 1930s and postwar
years. It was not until the late 1970s that Mediterranean sun and sea vacations became
popular among working-class families in northern Europe; the label “mass tourism,” which is
often applied to this phenomenon, is misleading. Such holidays were experienced in a variety
of ways because tourists had choices, and the destination resorts varied widely in history,
culture, architecture, and visitor mix. From the 1990s the growth of flexible internationa l
travel through the rise of budget airlines, notably Easy jet and Ryan air in Europe, opened a
new mix of destinations. Some of these were former Soviet-bloc locales such as Prague and
Riga, which appealed to weekend and short-break European tourists who constructed their
own itineraries in negotiation with local service providers, mediated through the airlines’
special deals. In international tourism, globalization has not been a one-way process; it has
entailed negotiation between hosts and guests.
Tourism in India
Tourism in India is important for the country's economy and is growing rapidly. The World
Travel and Tourism Council calculated that tourism generated ₹16.91 lakh crore (US$240
billion) or 9.2% of India's GDP in 2018 and supported 42.673 million jobs, 8.1% of its tota l
employment. The sector is predicted to grow at an annual rate of 6.9% to ₹32.05 lakh crore
(US$450 billion) by 2028 (9.9% of GDP).In October 2015, India's medical tourism sector
was estimated to be worth US$3 billion, and it is projected to grow to US$7–8 billion b y
2020. In 2014, 184,298 foreign patients traveled to India to seek medical treatment.
Over 10 million foreign tourists arrived in India in 2017 compared to 8.89 million in 2016,
representing a growth of 15.6%. Domestic tourist visits to all states and union territories
numbered 1,036.35 million in 2012, an increase of 16.5% from 2011. In 2014, Tamil Nadu,
Maharashtra and Uttar Pradesh were the most popular states for tourists. Delhi, Mumbai,
Chennai, Agra and Jaipur were the five most visited cities of India by foreign tourists during
the year 2015. Worldwide, Delhi is ranked 28th by the number of foreign tourist arrivals,
while Mumbai is ranked 30th, Chennai 43rd, Agra 45th, Jaipur 52nd and Kolkata 90th.
The Travel and Tourism Competitiveness Report 2019 ranked India 34th out of 140 countries
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overall. India improved its ranking by 6 places over the 2017 report which was the greatest
improvement among the top 25% of countries ranked. The report ranks the price
competitiveness of India's tourism sector 13th out of 140 countries. It mentions that India has
quite good air transport infrastructure (ranked 33rd), particularly given the country's stage o f
development, and reasonable ground and port infrastructure (ranked 28th). The country also
scores high on natural resources (ranked 14th), and cultural resources and business trave l
(ranked 8th). However, some other aspects of its tourism infrastructure remain somewhat
underdeveloped. The nation has many hotel rooms per capita by international comparison and
low ATM penetration. The World Tourism Organization reported that India's receipts fro m
tourism during 2012 ranked 16th in the world, and 7th among Asian and Pacific countries.
The Ministry of Tourism designs national policies for the development and promotion o f
tourism. In the process, the Ministry consults and collaborates with other stakeholders in the
sector including various central ministries/agencies, state governments, union territories and
private sector representatives. Concerted efforts are being made to promote niche touris m
products such as rural, cruise, medical and eco-tourism. The Ministry of Tourism maintains
the Incredible India campaign focused on promoting the tourism in India.
The hospitality industry is part of the service industry and is comprised of 4 major sub-sectors
which include food and beverages, travel and tourism, recreation and lodging. At the core the
hospitality industry concerns itself with providing products and services to people whic h
assist in recreation and supporting the well-being of people. It includes different activities,
which main goal is to provide a service and customer’s satisfaction.
Away from home, surrounded by strangers and yet you feel welcome. The original idea of
hospitality has remained unchanged since the creation of the word itself. Derived from the
Latin word “hospes”, meaning both visitor and stranger, hospitality has its roots in ancient
history.
Thousands of years ago, when road networks were scarce and traveling was cumbersome
strangers arriving in a foreign land had to rely on either their camping skills or a local’s
kindness when looking for shelter. During the age of pilgrimage and the development of
major trade routes throughout Europe, it was mostly inns and taverns offering primitive
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rooms to weary travelers. The idea of a hotel built for the sole purpose of hosting guests did
not exist in Europe until the 18th century, when technological progress and the introduction
of faster and more reliable modes of transport made long distance travel available to wider
public. With the influx of large numbers of foreigners into major cities, the need for
accommodation led to the opening of the first hotels in the modern sense. Since then, the
sector has known a nearly unbroken run of growth and international expansion.
While many business niches are composed of only a handful of different businesses, the
hospitality industry applies to nearly any company that deals with customer satisfaction and is
focused on meeting leisurely needs rather than basic ones.
With the broadness of this industry, some defining aspects are important to understanding.
The hospitality industry is a broad category of fields within service industry that includes
lodging, event planning, theme parks, transportation, cruise line, and additional fields within
the tourism industry.
A hospitality unit such as a restaurant, hotel, or an amusement park consists of units such as
facility maintenance and direct operations (servers, housekeepers, porters, kitchen workers,
bartenders, management, marketing, and human resources, etc.).
Lodging
Food & Beverage
Recreation
Every category under the umbrella of the term “hospitality” further contains many different
sub-sector and operators. The mere global scale of the industry makes it difficult to provide a
conclusive overview without taking up hours of your time. Travel, for instance, encompasses
all modes of transportation available to travelers, including coaches, airplanes, vessels, taxis
etc. While all sectors are interconnected and reliant on each other, each one of them is facing
unique challenges and opportunities in the future.
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• Accommodation
The accommodation sector of the hospitality industry is concerned with providing customers
with a place to stay, on a temporary basis. It is most commonly associated with the tourism
industry, where people book holidays or trips and require lodgings, but the accommodation
sector also caters to local people seeking a short break from their everyday routine, or those
who require temporary accommodation for almost any other purpose.
Bed & breakfasts, also known as B&Bs, are small establishments, which offer overnight stays
and breakfast in the morning. Most B&Bs owners live in the property, while guests are
provided with a private room and, in most cases, they will also have a private or en suite
bathroom. However, bathroom facilities are sometimes shared.
• Hotels
Arguably the most obvious form of accommodation that falls within the hospitality industry,
hotels cater to people who require overnight or longer-term stays. Aside from offering
lodgings, they tend to provide various other services, including room service, housekeeping,
and facilities for eating and drinking.
• Motels
Motels are similar to hotels, but are specifically designed for use as overnight
accommodation by motorists. With this in mind, they are generally situated at the roadside,
and will have free car parking facilities. Unlike hotels, however, motels usually offer little in
the way of additional services or amenities.
• Hostels
Hostels are a form of communal accommodation, where multiple guests will usually sleep in
a shared room, with the guests effectively renting a bed. Bathroom and kitchen facilities are
usually shared and hostels offer less privacy than hotels. Yet, they are usually significantly
cheaper, making them a solid option for those with a low budget.
• Resorts
A resort is similar to a hotel, but it will provide a wider range of facilities and amenities. This
means that guests are able to access sleeping facilities, food and drink facilities, entertainment
facilities, shopping facilities and other amenities without needing to leave the resort. Many
resorts also offer all-inclusive pricing.
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• Serviced Apartments
Another form of accommodation that shares similarities with hotels, serviced apartments are
self-contained units, which are supplied for either short-term or long-term stays. These
apartments will typically be fully furnished, will contain a kitchen, and may include various
hotel-like services, such ass laundry and cleaning.
• Time Sharing
While food and drinks are necessities, most food and drinks services also fall under the
hospitality industry umbrella, due to the fact that they offer people a way of spending their
leisure time and disposable income, as well as an opportunity to socialise and enjoy an
experience. Again, the food and drinks sector caters to a wide range of customers, including
tourists, locals, ex-pats and passers-by.
• Restaurants
Restaurants provide customers with food and drinks services, with the food either being eaten
in the establishment, or taken away for consumption. This section of the hospitality industry
includes fine dining restaurants, takeaway restaurants, fast food restaurants and a variety of
other restaurant types.
• Catering
Catering services are food services provided within a particular site, or in a more remote
location, where food and drink are not necessarily the main service provided. Examples of
this include catering provided at parks, arenas, stadiums, hotels, event venues and on certain
forms of public transport.
Bars and cafés provide customers with options to go out, socialise and enjoy food and drinks.
They also tend to be a more casual option than most sit- in restaurants. Cafés generally focus
on coffee, tea and light snacks, while bars tend to prioritise alcoholic drinks and soft drinks,
and may also offer additional entertainment.
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• Nightclubs
Nightclubs are one of the main ways the hospitality industry caters to people in search of
night-time entertainment. They serve alcoholic drinks, are kept open until late, and often
place an emphasis on both music and dancing. Many nightclubs have specific themes and
they may cater for locals, as well as visitors or tourists.
Tea rooms and coffee shops provide a similar function to cafés, primarily serving varieties of
tea and coffee, as the name suggests. With that being said, tea and coffee shops are often
individual room within larger buildings, such as hotels, and they may also sell products to be
taken away, such as tea bags and coffee beans.
It is important to understand that the hospitality industry and the travel industry are closely
linked. Many of the services that are classed as travel industry offerings are also hospitality
offerings, because they are linked to leisure, customer satisfaction, pleasure, experiences and
the use of disposable income. Importantly, the cross-over between the tourism industry and
the hospitality industry centres on services, rather than end-products.
• Travel Agents
Essentially, travel agents serve to sell travel products to customers, on behalf of suppliers.
They will often receive a commission for successful sales and can be a convenient option for
inexperienced travellers, providing them with advice on the best travel products for their
particular needs.
• Tour Operators
A tour operator offers a combination of travel and tour products, combining them into a
package, which is then sold to customers. This might, for instance, include travel to a
destination, transfers from a hotel or train station to a hotel, as well a number of trips,
activities or experiences throughout the customer’s stay.
Online travel agents, or OTAs, perform many of the same functions as traditional travel
agents, albeit over the internet. However, the use of online platforms means customers often
have access to a greater level of self-service, with the OTAs helping users to search for the
travel products that best suit their requirements.
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• Cruises
Cruises are voyages on cruise ships, undertaken for pleasure, rather than for the sole purpose
of transportation. A cruise may have various stops along the way, but passengers will spend
the vast majority of their time aboard the cruise ship, which will provide them with lodgings,
entertainment, catering and more.
• Car Rental
Car rental services cater to customers who require short-term access to a car. In many cases,
these services are used by tourists travelling to other parts of the world, although some locals
may also wish to rent a car, especially if they do not have regular access to one, or if they
require a larger number of passenger seats.
• Casinos
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Chapter-2
SCOPE, OBJECTIVES,
METHODOLOGY AND
LIMITATION
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SCOPE
The survey was conducted to study about the existing 4-star hotel in Thavakkara,
Kannur,kerala India and also about the facilities clientele would require as such facilities like
banquet halls, business center etc. know which type is the hotel concentrating on for example
business class, Indian tourist etc. this type of survey cover of important of three-star hotels in
kannur, India and their features
OBJECTIVES
To analyze the existing hotel in Thavakkara a beautiful to assess the market feasibility for
starting a new 4-star hotel.
METHODOLOGY
PRIMARY DATA
,Kannur
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SECONDARY DATA
Obtained by referring books and information from the faculty guides to analyze the
market situation with the help of a few derived formulas.
LIMITATION
Absence of data which was not disclosed by the personnel of some hotels.
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CHAPTER-3
PROFILE OF THE PLACE
AND SITE
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KERALA STATE
Kerala is a state on the southwestern Malabar Coast of India. It was formed on 1 November
1956, following the passage of the States Reorganization Act, by combining Malayalam
speaking regions of the erstwhile states of Travancore-Cochin and Madras. Spread over
38,863 km2 (15,005 sq mi), Kerala is the twenty- first largest Indian state by area. It is
bordered by Karnataka to the north and northeast, Tamil Nadu to the east and south, and the
Lakshadweep Sea to the west. With 33,387,677 inhabitants as per the 2011 census, Kerala is
the thirteenth- largest Indian state by population. It is divided into 14 districts with the capital
being Thiruvananthapuram. Malayalam is the most widely spoken language and is also the
official language of the state.
The name Kerala has an uncertain etymology. One folk etymology derives Kerala from the
Malayalam word kera ‘coconut tree’ alam ‘land’; thus, ‘land if coconuts’, which is a
nickname for the state used by locals due to the abundance of coconut trees. The word Kerala
is first recorded as Ketalaputo (‘son of Chera[s]’) in a 3rd-century BCE rock inscription left
by the Maurya emperor Ashoka (274-237 BCE), one of his edicts pertaining to welfare. This
contradicts the theory that kera is from ‘coconut tree’. At that time, one of three states in the
regions was called Cheralam in Classical Tamil: Chera and Kera are variants of the same
word. The word Cheral refers to the oldest known dynasty of Kerala kings and is derived
from the Proto-Tamil-Malayalam word for lake.
The earliest Sanskrit text to mention Kerala as Cherapadha is the late Vedic text Aitareya
Aranyaka. Kerala is also mentioned in the Ramayana and the Mahabharata, the two Hindu
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epics. The Skanda Purana mentions the ecclesiastical office of the Thachudaya Kaimal who is
referred to as Manikkam Keralar, synonymous with the deity of the Koodalmanikyam temple.
Keralam may stem from the Classical Tamil cherive-alam ‘declivity of a hill or a mountain
slope’ or chera alam ‘land of the Cheras’. The Greco-Roman trade map Perplus Maris
Erythraei refers to Kerala as Celobotra.
The state of Kerala has been through the ages an integral part of the Indian sub-continent. Its
history is part of the general history of India and its culture is one of the major streams that
have enriched the composite culture of the country. At the same time Kerala has had the
distinction of bringing an independent geographical and political entity from very early days.
Its unique geographical position and peculiar physical features have invested Kerala with a
distinct individuality. The land of Kerala comprises the narrow coastal strip bounded by the
Western Ghats on the east and the Arabian Sea on the west in the southern of the Indian
Peninsula. Paradoxical as it might seem, this geographical position has helped to ensure, to
some extent, its political and cultural isolation from the rest of the country and also facilitated
its extensive and active contacts with the countries of the outside world.
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HISTORY OF KERALA
The ancient history of Kerala is shrouded in the mists of tradition. The most popular legend
would have it that the land crust that forms the state was raised from the depths of the ocean.
Parasurama, the Brahmin avatar (incarnation) of lord Vishnu, had waged on epic series o f
vengeful wars on the Kshatriyas. Came a moment when Parasurama was struck by remorse at
the wanton annihilation he had wrought. He offered severe penance atop the mountain
heights. In a mood of profound atonement, the sage heaved his mighty axes into the midst o f
the distnt ocean. The waves formed and frothed as a prawn-shaped land extending fro m
Gokarnam to Kanyakumari surfaced from the depths of the sea to form the State and hence
the sobriquet ‘Gods Own Country’
EARLY HISTORY
CIVILIZATION
Legends apart, the first set of people who left their footprints on the soil of Kerala can be
identified at present only with reference to their burial practices. Though record are lacking, a
reasonable assumption is that they spoke an archaic form of Tamil. They constructed strange
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burial monuments in granite, literate and pottery, most of which are strikingly similar to the
megalithic monuments of West Europe and Asia. These monuments are, however, younger
than their counterparts in the rest of Asia. Historians have postulated a time bracket between
10th century B.C. and 5th century A.D. for these people. It is clear from the grave relics,
including iron tridents and daggers, that the megalithic builders had long emerged out of the
stone age into the iron age without passing through a bronze age. In fact, there is very little
evidence of the old and the new stone ages in Kerala. It is quite possible that the Maurya n
invaders who reached the Mysore borders in their conquest southwards, encountered the
megalith making tribes who lived in hill forts and controlled the surrounding countryside.
Fortunately, a whole corpus of ancient Tamil literature known to scholars by the name o f
Sangham literature, has been preserved. It is believed that during the period of Ashoka the
Great, the southern most tribes were just emerging from the tribal status of civilization.
Contacts with the more advanced Mauryan world could have accelerated the pace of politica l
and social movement among the Cheras and the minor chieftains of Kerala.
THE CHERAS
Though the Cheras had their capital at Vanchi in the interior, they had the famous harbor
towns of Tyndis and Muziris on the Arabian Sea coast for trade. The Cheras ruled over the
central portion of the present day Kerala. They seemed to have attracted a good deal of Romn
trade. There are vivid descriptions in Sangham literature of Yavana ships coming to Muziris,
laden with gold and waiting for pepper, the black gold of the Romans, at some distance from
the shore. The hoards of Roman gold coins unearthed from Kottayam and Eyyal in Kerala
authenticity to such statements. There were a number of other minor chieftains who
flourished in different parts of Kerala. The sage Agastya is the father of Tamil grammar and
literature and the entire social world of Kerala, as part of Tamilakam (Tamil land) is reflected
in the rich collection of secular poems which form the characteristic legacy of the Sangham
age.
TRADE
Contact with the Mauryan empire gave the first impulse for the transformation of tribal policy
into civilized polity. The stimulus of overseas trade provided by the Roman empire in the first
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three centuries of the Christian era triggered off the next phase of development in Tamilakam.
The geographical advantages of i.e., the abundance of pepper and other spices, the
navigability of the rivers connecting the high mountains with the seas and the discovery o f
favorable trade winds which carried sailing ships directly from the Arabian coast to Kerala in
less than forty days, combined to produce a veritable boom in Kerala’s foreign trade. The
harbors of Naura near Kannur, Tyndis near Quilandy, Muziris near Kodungalloor and Bacare
near Alappuzha owed their existence primarily to the Roman trade. Roman contact with
Kerala might have given rise to small colonies of Jews and Syrian Christians in the chie f
harbor towns of Kerala. The Jews of Kochi believe that their ancestors came to the west coast
of India as refugees following the destruction of Jerusalem in the first century A.D. The
Syrian Christians claim to be the descendants of the converts of St. Thomas, one of the
Apostle of Jesus Christ. Arab contacts are also very ancient and Islam came to Kerala as far
back as the 9th century A.D.
BRAHMIN SETTLEMENT
The fourth and fifth centuries witnessed the decline and fall of the Western Roman empire. A
shriveling of the Roman sea trade followed, leading in its turn, to a decline of the harbor
towns like Tyndis and Muziris. Further, political incursions from the north into Tamilaka m
took place. The traditions of Nambudiris (Kerala Brahmins) recorded in the Keralolpatti
chronicle refer to Mayurvarman, The Kadamba king, as their patron during the period after
Parasurama. A Kadamba record of the 5th century at the Edakkal cave in Wayanad bears
testament to the Kadamba presence in Kerala. The last phase of the Sangham age coincided
with a silent revolution that was brewing within the social system in Kerala. By about the 8th
century, a chain of 32 Brahmin settlements had come up, which eventually paved the way for
the social, cultural and political separation of Kerala from the Tamil country, in due course.
These colonies were capable of producing a great philosopher, Sankaracharya. Shri sankara
was born in the village of Kaladi in central Kerala. He was an intellectual giant of the 9th
century, who saved the Hindu orthodoxy through the synthesis of cults and who can well be
ranked with St. Thomas of Aquinas in clarity of thought and understanding. He was a product
of the post Sangham, new Aryan settlements of Kerala, who were far removed from the
cradle – land of the Indo – Gangetic civilization. The whole of Kerala came to be covered by
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a network of temple centered Brahmin settlements. Under their control, these settlements had
a large extend of land, number of tenants and the entailing privileges. With more advanced
techniques of cultivation, Socio-political organization and a strong sense of solidarity, The
Brahmins gradually formed the elite of the society. They succeeded in raising a feuda l
fighting class and ordered the caste system with numerous graduations of upper, intermediate
and lower classes. In due course, the consolidation of these settlements and the
establishments of their ascendancy gradually led to the evolution of a new Malayalee
language and a new malayalee culture, the separate identity of Kerala was in the making.
The ninth century raised the curtain of a new epoch in Kerala history. The ancient capital o f
Vanchi fell into the hands of the Pandyas. The vanquished rulers founded a new capital near
the old harbor city of Muciri (Muziri), now known as Kodungalloor. The new capital was
called Makotai or Mahodayapura and was built around the great Siva temple o f
Tiruvanchikulam. No trace of the place at Makotai remains today. The author of Kokasandesa
found it in ruins even in the 16th century. He saw in the ruins yet another example of the
fickle nature of the goddess of prosperity. The revival of the Chera kingdom was actually a
by-product of the Aryan Brahmin settlements and assumptions of the socio-politica l
dominance they had established. The Perumal was the lord of Mahodayapura and the
overload of Kerala (Keraladhinatha). But his sovereignty was constrained by the pre-existing
power of the Brahmin settlements and the hereditary chieftains. Each Nadu or District had its
own hereditary or nominated governor. Thus the great feudatories were the hereditar y
governors of Kolathunad, Purakizhanad, Kurumpanad, Eranad, Valluvanad, Kizhamalanad,
Vempalanad and Venad. The northernmost district of Kolathunad was almost independent and
was brought under Chera sovereignty by force towards the end of the 9th century. Venad, the
southernmost district, was carved out of the ancient territory of the Vels. A new harbor city,
named Kollam, was established here in A.D. 825. In the course of time, it became the second
capital of the Cheras of Makotai. Kollam gradually gained in trade and prosperity under the
leadership of Mar Sapir Iso, the Syrian Christian merchant prince. The founding of Kolla m
city marked the beginning of an era, which came into use all over Kerala and parts of the
Pandyan kingdom and even in Ceylon by astronomers and officials, who tagged it on to the
Saptarishi era. The Kollam era came to be known as the Malayalam era.
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The beginning of the 12th century marked a period of troubled times for Kerala. The attack by
the combined forces of the Cholas and the Pandyas and internal conflicts in the Chera
kingdom made Rama Kulasekara the Perumal, to leave the country in the company of some
Arab Muslims. He is believed to have been converted into Islam and have died at a place
called Sapher in Arabia. This event has been referred to as the partition of Kerala. In the
absence of a central power, the divisions of Chera kingdom soon emerged s principalities
under separate chieftains. These were crucial events which shaped the destinies of Kerala, for
many centuries to come. In this period, Kerala was chiefly a land of agricultural villages.
Society had a feudal complexion with a graded hierarchy, hereditary occupations and well-
defined duties and responsibilities for each class of people. Proprietorship of land was closely
related to political power and administration. A peculiarity of the social system in Kerala
which comes to notice in the epigraphic and literary records of this age is the matrilineal for m
of inheritance. In spite of the predominantly agrarian character of society, trade and
commerce flourished. Hill products from the Western Ghats carried down, by many rivers, to
the natural harbors on the Arabian Sea secured an expanding market in West Asia and Europe.
A number of Jewish and christen traders exploited this situation with the help of the
monsoon. The native chieftains overlooked the differences in faith and race and extended
them religious tolerance as well as social equality. These merchants were not inclined to or
capable of disturbing established order. In fact, Syrian Christian and Jewish leaders like Mar
Sapir Iso and Joseph Rabban came to the rescue of Chera kings in times of war and thereb y
earned their gratitude in full measure.
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KANNUR
Kannur is one of the 14 districts along the west coast in the state of Kerala, India. The town
of Kannur is the district headquarters and gives the district its name. This place is famous for
Communist politics and temple festivals. It is known as the “Land of Looms and Lores” The
old name, Cannanore is the anglicized form of Malayalam name “Kannur”. Kannur district is
bounded by Kasargod district to the north, Kozhikode district to the south, Mahe district to
the southwest and Wayanad district to the southeast. To the east the district is bounded by the
Western Ghats, which forms the border with the state of Karnataka (Kodagu district). The
Arabian Sea lies to the west. Paithalmala is the highest point in the Kannur district (1,372m).
Enclosed within the southern part of the district is the Mahe district of the Union Territory o f
Pudecherry. The district was established in 1957. Kannur is the sixth-most urbanized district
in Kerala, with more than 50% of its residents living in the urban areas. Kannur has an urba n
population of 1,640,986, which is the second largest in Kerala after Ernakulam district.
Kannur was an important trading center in the 12th century with active business connections
with Persia and Arabia. It served as the British military headquarters on India’s west coast
until 1887. In conjunction with her sister city, Tellicherry, it was the largest city on the
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western coast of British India in the 18th century after Bombay and Karachi. St. Angelo Fort
was built in 1505 by Dom Francisco de Almeida, the first Portugese Viceroy of India. The
Dutch captured the fort from the Portuguese in 1663. They modernized the fort and built the
Bastions Hollandia, Zeelandia and Frieslandia that are the major features of the present
structure. The original Portuguese fort was pulled down later. A painting of this fort and the
fishing ferry behind it can be seen in the Rijks museum, Amsterdam. The Dutch sold the fort
to king Ali Raja of Arakkal in 1772. The British conquered it in 1790 and used it as one of
their major military stations on the Malabar Coast. During the 17th century, Kannur was the
capital city of the only Muslim Sultanate in the Malabar region, known as Arakkal. During
the British Raj system, Kannur was part of the Madras province in the North Malabar
District.
Other cities administered from Kannur include Tellicherry (21 Km south), Thaliparamba (20
Km north), Payyannur (40 Km north), Mattannur (25 Km east), Koothuparamba (22 Km
south east), Chakkarakkal (16 Km south east), Iritty (42 Km) and Panoor (31.1 Km).
The main language spoken is Malayalam. However, English, Hindi and Tamil are the other
languages which are also spoken and understood by the majority of the people.
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GEOGRAPHY
Kannur has an elevation of 1.02 meter (2.98 ft) along the coast of the Lakshadweep Sea, with
a sandy coastal area. The town has an 8 km- long seashore which is known as
Muzhappilangad beach. This beach is the largest Drive-In Beach in Asia. Also a 3 km- long
beach at Payyambalam.
The district has a humid climate with an oppressive hot season from March to the end of
May. This is followed by the South West monsoon which, continues till the end of September.
October and November form the post- monsoon or retreating monsoon season. The North East
monsoon which follows extends up to the end of February, although the rain generally ceases
after December. During the months of April and May, the mean daily maximum temperature
is about 35 degree Celsius. Temperature is low in December and January – about 20 degree
Celsius. On certain days the night temperature may go down to 16 degree Celsius. The
annual average rainfall is 3438mm and more than 80 percent of it occurs during the period
of South West monsoon. The rainfall during July is very heavy and the
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Kannur district is very rich in vegetation. Natural vegetation, except in some coastal regions,
consists of different types of forests. But, in spite of generally favorable climatic conditions,
vegetation is not uniform. In restricted regions, with their own micro climate or special,
edaphic features, plant formations assume different characters. Thus, plant communities,
ranging from psammophytes and mangroves to evergreen forests are seen in the district. The
coastal region is a comparatively narrow zone, characterized by secondary soil which is
rather loose and sandy. The sterile sandy tract supports only a poor vegetation of the
psammoophyte type. Plants are few and mostly prostrate. Erect species are small and short.
Owing to very poor water holding capacity of the soil, these plants are provided with special
xerophytes adaptations.
Another conspicuous feature of this area is the mangrove vegetation, found at the estuaries of
rivers and backwaters, and often extending to the interior along their banks. Human
interference has much changed the vegetation of the coastal region. Major part of the district
comes under midland region with numerous hills and dales and it presents an undulating
surface gradually ascending and merging into the slopes of Western Ghats.
Soil is secondary and lateritic with underlying rock of late rite or disintegrated gneiss.
Tropical flora of this area is a most deciduous forest consisting of a mixture of evergreen and
deciduous trees. Undergrowth consists of a variety of annual and perennials. The mountains
are a continuation of the midland region, gradually ascending to the main ridge of Western
Ghats. Vegetation over the whole area is of the forest type. Irregular distribution of teak,
localized areas of bamboo dominance, change of good quality forest into open grass lands,
etc are characteristic
RIVERS
Kannur district is endowed with a fine river system. Except for a few minor ones, most of the
rivers are perennial and provide good scope for irrigation and for controlling floods through
minor irrigation projects.
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The Valapattanam river is the longest river in the district, originates from the Brahmagiri
Ghats located about 15 km North of Mananthavady (in Wayanad district) passes through the
villages of Iritty, Edakkunnam,Perumpunna, Irikkur and Kalliassseri and joins in the
Lakshadweep Sea about 10 km North of Kannur. It has a total catchment area of1191 Sq.km
of which 528 Sq.km in Karnataka state. The main tributaries of Vlapattanam River are
Valiapuzha and Aralam puzha.
The Kuppam river originates from Padinalkkadu Ghat Reserve Forest in the Kodagu district
of Karnataka state and flows westwards through Thadikkadavu, Kuveri and Thalipparamba
and joins the Valapattanam river. It has a catchment area of 536 Sq.km. The Anjarakkandy
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river originates from Kannoth forests in Thalassery taluk and passes through Kannavam,
Kadamkunnu and Vemmanal before it joins the Lakshadweep Sea. It has a catchment area
oh113 sq km.
The Mahe river also known as Mayyazhippuzha originates from Wayanad Ghats and passes
through Mananthavady taluk of Wayanad district, Vadakara taluk of Kozhikode district and
Thalasseri taluk of Kannur district before it joins the Lakshadweep Sea at Mahe about 6 km
south of Thalasseri. It has a catchment area of about 233 sq km. most of the rivers are
navigable. The Valapattanam river has the longest navigable length followed by the
Anjarakkandy river.
Myths and legends abound in the district. The ships of Solomon, they say, anchored along its
coasts to collect timber for building the Temple of the Lord here. Kannur finds mention as
NAURA in the Periplus of the Erithrean Sea a Greek work of great antiquity.
Tucked far away from the maddening crowd, lies Kannur, the most enchanting district of
Northern Kerala. The scene is breathtaking. The Lakshadweep Sea washes the sands of
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sugary beaches laced with rows of green coconut palms. Long rivers break into silvery spray
and merge into the blue green waters of the sea. Obviously Kerala is the most beautiful of all
Indian states and Kannur definitely shows Kerala at its best.
KALARI
The ancient Kolathiri kingdom that ruled here was known for its patronage of the
development of the distinct arts forms and culture of North Kerala and in a very distinct way
influenced the evolution of the distinctive cultural ethos of the entire state of Kerala.
Nowhere is it so visible as in Kannur. Thaliparamba, near Kannoor, became a renowned
center of learning, enlightenment and culture during the 14th and 15th centuries, under the
Kolathiri Rajas. As was the case in the olden days , temples were intimately linked as the
icons of culture and so it was that the famous Thaliparamba temple developed into a
renowned cultural centre.
Thalassery is the seat of the martial art Kalari Payattu, the forerunner of Karate & Kung-Fu.
Around 40 Kalari arenas of the martial art are spread around the district. Kalari Chikitsa and
Marma Chikitsa, a special type of physiotherapy treatment for diseases as well as toning up
the body is also a specialty here.
considered to be one of the oldest surviving fighting systems still in existence in the world. It
was originally practiced in northern and central parts of Kerala and southern parts of Tamil
Nadu. Kalaripayattu has three variants, which are distinguished by their attacking and
defensive patterns. There are three schools of Kalari. They are : 1) Arappa kayy 2) Pilla
Thangi 3) Vatta thiripp
Kalaripayattu had developed into its present form by the 6th century, during an extended
period of warfare between the Chera and Chola dynasties.Kalaripayattu includes strikes,
kicks, grappling, preset forms, weaponry and healing methods. Regional variants are
classified according to geographical position in Kerala; these are the Northern style from
Malabar region in north Kerala practiced by the Central style from inner Kerala and the
southern style from Thiruvitankoor. Northern kalaripayattu is based on elegant and flexible
movements, evasions, jumps and weapons training, while the southern “Adi Murai” style
primarily follows the hard impact based techniques with priority on empty hand fighting and
pressure point strikes. Both systems make use of internal and external concepts. Vedic sage
Agastya is regarded as the founder and patron saint of southern kalaripayat, silambam and
varmam an ancient science of healing using varmam points for varied diseases.
THEYYAM
with several thousand-year-old traditions, rituals and customs. The performers of Theyyam
belong to the lower caste community in ancient caste structure formed by Namboothiri
brahmins in Kerala, and have an important position in Theyyam. The people of these districts
consider Theyyam itself as a channel to a God and they thus seek blessings from Theyyam. A
similar custom is followed in the Mangalore region of neighbouring Karnataka known as
Bhuta Kola.
Bringing life to intriguing myths and exciting legends, the Theyyam festival is one of the
most eagerly awaited festivals of the vibrant city of Kannur. Drawing the attention of
thousands of people every year from across the country, this festival is renowned as the most
remarkable and riveting art form of Malabar, the northern part of Kerala. This joyous
celebration includes performances of over four hundred different traditional folk dances and
It encompasses dance, mime and music. It exalts the beliefs of the ancient tribals who gave a
lot of importance to the worship of heroes and the spirits of their ancestors, local deities,
gods, goddesses and heroes. The ceremonious dance is accompanied by the chorus of such
musical instruments as Chenda, Elathalam, Kurumkuzal and Veekkuchenda. There are over
400 separate Theyyams, each with their own music, style and choreography. The most
prominent among these are Raktha Chamundi, Kari Chamundi, Muchilottu Bhagavathi,
Wayanadu Kulaven, Gulikan and Pottan.
Kannur is the land of looms and lore, a small town in southern part of India and a district in
northern part of Kerala. Kannur formerly known as Cannanore during the British raj and
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which is the one and only place in the whole of India which was targeted by Portuguese,
Dutch, French, British and Germans and used for trading by Arabs, Hebrews, Persians, etc.
Kannur was an important trading center in the 12th century with active business connections
with Persia and Arabia. The 14th century narrative of Ibn Battuta had mentioned about
Kannur in his travelogue and in 16th century AD, a Portuguese official Duarte Barbosa also
mentions about Kannur in his records. Since then even Kannur handloom fabric was one of
the hot selling commodities in the overseas. Due to its unending relation with handloom
industry it is known as 'Town of export excellence'. The industry is spread in 37 Panchayat
and 5 Municipalities. There is ample scope for fabrics in world market, which is exclusively
reserved for handloom industry. Because of quality and fame of Kannur handlooms, Kannur
is commonly known as the 'Manchester of Kerala'.
There are three streams of historical incidence pointing towards the tradition, origin and
development of Kannur handlooms. First stream of historical story is that the weaving
tradition started in between 16th and 17th century when the Kolathiri Raja, the ruler of
Chirakkal in Kannur, brought some weaver families from Cheranadu in Tamil Nadu. These
people settled at Kadalayi theru, in Kannur and this resulted in the establishment of first
saliya theru in Kannur. The weavers had mainly produced woven fabrics for the temples and
the royal people. The weaver families developed their social life in the district and became a
major work force and the main products were thorthu (towel), panimundu (lower cloth), and
mundu (dhoti).
Second stream of the story dates back to 1844, when frame looms were introduced by Basel
mission which were brought from Germany. In 1852, development in this loom started with
the use of fly shuttles and from this time onwards the Malabar frame looms came to be used
in its present form. The product produced by them was mission mundu. The third stream of
incidence originated from the social reform movements. The activities of Vagbhatananda
guru and Sree Narayana guru, movement led to the reformation of the ‘thiyya’ community
with evidences in their social life and as well as in involvement in the industrial activities.
Among these the handloom weaving was prominent one with hundreds of people engaged in
it. The social reform movements at the time of independence gave an organized structure to
handloom weavers by bringing them in the fold of co-operative societies. During those days
the rulers brought weavers for satisfying their clothing needs. Trained weavers took up the
work due to social compulsion of employment. They integrated into and got organized as an
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industrial segment through the co-operative movement for satisfying their needs. Years later
the weavers from Kannur had developed ‘Kannur crape’ which blew their fame into the
skyscrapers in the country as well as in the overseas. It 1960s, 70s and 80s Kannur crape was
the most hot selling fabric in UK and USA.
TRANSPORTATION
Kannur has a good road network connecting to Mangalore, Bangalore, Mysore, Kodagu and
Cochin. The railway station is also well connected to all parts of India. Kannur is 7 Kms from
Azhikode, 18 Kms from Parassinikadavu, 21 Kms from Vaduvankulam, 90 Kms from
Kozhikode, 112 Kms from Madikeri, 211 Kms from Mangalore, 272 Kms from Kochi and is
linked via Kerala State Road Transport Corporation (KSRTC) and some private travel
services. The Kannur International Airport which is about 30 kilometres from the city began
operations on December 9 and is the fourth international airport in the state. Other nearby
airports are at Calicut, Mysore and Mangalore. Kannur is on National Highway 66 or NH 66
(formerly National Highway 17) between Kozhikode and Mangalore. This highway is
scheduled to be expanded to four lanes. A bypass for Kannur city is proposed under the NH
widening project. Kannur is connected to Kodagu, Mysore and Bangalore in Karnataka by the
Kannur-Coorg-Mysore Highway. This highway is upgraded to National Highway in 2017.
Kannur railway station is one of the major stations of the Southern Railway zone, under the
jurisdiction of the Palakkad. It is well connected to the major cities like Chennai, Pune, Delhi
and Mumbai via Mangalore Express, Chennai Mail, West Coast Express, Executive Express,
Chennai-Mangalore Express, Nagarcoil Express and Mangalore SF Special and trains
including the Thiruvananthapuram Rajdhani Express and Kochuveli Garib Rath. Six daily
trains and around 15 weekly or bi-weekly trains connect Kannur to the capital
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Thiruvananthapuram. Kannur is well connected through rail with Mangalore and Kozhikode.
Kannur South railway station and Edakkad railway stations are located under Kannur
Corporation limits. Chirakkal railway station is located north of the city. Only the passenger
trains are halting at these three stations. Thalassery railway station is another major station in
Kannur.
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EZHIMALA
Perched at a height of 286 meters, the Ezhimala hill is one of the most visually appealing
Kannur tourist places. The hill is a part of an isolated cluster of hills and the vantage point
offers bedazzling views of the sheer naked natural splendour around – hills covered in a
blanket of green, cotton white clouds covering the clear blue skies, and the beautiful valley
underneath. The place also has cultural and historical significance – the place was a
battlefield during the Chola-Chera wars. Buddhists consider the place sacred because it is
believed that Lord Buddha visited Ezhimala.
TELLICHERRY FORT
Situated on the Thalassery beach and perched on a rocky cliff, the Tellicherry Fort is one of
the most ancient places to visit in Kannur. Square in shape and surrounded by massive stone
walls that have been caved intricately, the fort is a tourist hotbed for cultural and architectural
enthusiasts.
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The fort also features a beautiful lighthouse that provides stunning views of the nearby
landscape. Art lovers will find attending the gallery inside the complex hosting several caves,
monuments and ancient paintings a brilliant way to spend
Considered as one of the most historic sites in Kannur, the St. Angelo Fort was constructed by
the first Portuguese viceroy of India. The fort is triangular in shape appears as a massive yet
magnificent structure standing at the helm of the ruthless sea. The laterite walls made of
stone lend it an even more imposing air and it is a must- visit destination for architecture
students. The sea wall segregating the fort from the sea provides breathtaking views of the
Mopilla Bay. Visit the fort for taking a relaxing walk in the complex and enjoy stunning
views of the Arabian Sea.
DHARMADAM ISLAND
The untouched shores of the Dharmadam Island offer an escape from routine, worries, and
tiredness like never before. Because of its segregation from the hustle and bustle of city life,
the island has become a retreat centre for weary travelers. It Surrounded by rivers on three
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sides and the Arabian sea on one side, the island features a brilliant view of the confluence of
Anjarakandy and Thalassery Rivers. The canopy of tall coconut trees, the picturesque views
of the sea, dense bushes peppered along the beach – all of this makes the island a sight to
behold.
PAITHALMALA
Perched at a height of 4500 meters above sea level, this bewitching hill station is located
about 65 kms from Kannur and is one of the most amazing places to visit in Kannur.
Adrenaline rush seekers will find a haven here – the trek to the village is 6 kms and enlivens
up the senses. The panoramic view of lush green forests, waterfalls featuring pristine waters
and an array of flora and fauna keeps you on your toes throughout the trek. The hamlet itself
is secluded from everything that makes modern life exhausting and serves to act as a salve for
frayed nerves.
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Tropical and evergreen forests stretching over an area of an impressive 55 square meters, the
Aralam wildlife sanctuary is truly the finest of its kind. It is truly a wondrous sight to behold-
enjoy the exotic array of flora and fauna, catch a glimpse of jumbo elephants and witness the
Nilgiri langurs playing on trees.
PAPPINISSERI
Pappinisseri is a small hamlet in the Kannur district of God’s own country and is the perfect
idyllic getaway from the lightning-paced lifestyle of modern cities. The beautiful village has
a population of less than 35000 and is, therefore, the perfect place to spend a few days away
from civilization in the arms of nature. Surrounded by lovely green hills and showcasing
various little islands in the river Baliapatam, natural beauty is at its full splendour in
Pappinisseri. The Vadeswaram hills in the town are also known for their gorgeous scenic
vistas.
SUNDARESWARA TEMPLE
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One of the most famous Kannur tourist places is the Sundareswara temple. The temple is
considered to be one of the most important pilgrimage places for devotees of Lord Shiva.
Shiva resides here in the form os Sundareswara, the God of Beauty. The insides of the temple
are majestically decorated in the most intricate yet opulent manner by the renowned artist and
Shiva devotee, Sri Chaithanyaall Swami. The interiors of the temple with gracefully adorned
walls and magnificent ceiling capture the essence of grandiosity like never before.
ARAKKAL MUSEUM
Formerly the residence of the only Muslim Royal family in Kerala, the Arakkal is one of the
most significant places to visit in Kannur. The museum hosts artefacts and heirlooms of the
royal family, including the family seal, swords and daggers used by the rulers, a telescope,
and royal copies of the Holy Quran. The place is a treat for history buffs and cultural
enthusiasts. The breathtaking architecture is an added bonus and serves to act hundreds of
tourists every year. The museum is a must-visit site for those looking to understand the rich
cultural heritage of the district.
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Thavakkara is a small area located in the heart of Kannur City of Kerala, India. There are
well known temples, schools, hotels and business firms in Thavakkara. It is located near to
Central Railway Station in Kannur. Kannur's Main Municipal Bus Terminal is in Thavakkara.
Kannur 0 KM Kannur 0 KM
Muzhappilangad Beach 11 KM Kodagu 82 KM
Thalassery 19 KM Kozhikode 90 KM
Ranipuram 27 KM Wayanad 92 KM
Payyoli 53 KM
Co ordinates 11.866515,75.370641
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CHAPTER – 4
DEMAND QUANTIFICATION
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DEMAND: The term demand signifies the ability or the willingness to buy a particular
commodity at a given point of time.
1. Tourist Inflow
2. Transport Facility
Reasons which generate demands can be grouped under the following heading:
1. Business
2. Leisure
3. Others
In order to prepare market feasibility report on the hotels in Kannur basically four
hotels of 4 star categories has been taken into consideration.
1. Blue Nile
2. Royal Omar’s
3. The Hotel Canoe
4. Broad Bean
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Types of Clients
No of Occupancy
Name of Hotels Rooms
%
Business Tourist Others
Blue Nile 106 (R1) 80% (O1) 25% (B1) 65% (T1) 10%
Royal Omars 94(R2) 75% (O2) 60% (B2) 25% (T2) 15%
The Hotel Canoe 98(R3) 85% (O3) 50% (B3) 35% (T3) 10%
= 106+94+98+82
= 380/4
= 95
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Demand Analysis
R1+R2+R3+R4
380
29540
=
380
= 77.73
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Y = (W - BEP) x N
100
= 67.374
Z = maximum number of rooms that can be estimated without making any loss.
Z = Yx 100
BEP
Z = 67.374 x 100
60
= 112.29 Rooms
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CHAPTER – 5
RECOMMENDED MARKET
MIX
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The concept of the ‘Marketing Mix’ came about in the 1960s when Neil H. Borden,
professor and academic, elaborated on James Culliton’s concept of the marketing
mix. Culliton described business executives as ‘mixers of ingredients’: the
ingredients being different marketing concepts, aspects, and procedures.
However, it’s now widely accepted that Jerome McCarthy founded the concept. After
all, it was McCarthy who offered the marketing mix as we know it today; in the form of
‘The 7 P’s of Marketing
1) PLACE
2) PRODUCT
3) PRICE
4) PEOPLE
5) PROMOTION
6) PHYSICAL EVIDENCE
7) PROCESS
These factors of marketing mix are closely interrelated. The combination of these
marketing methods or devices is known as Marketing Mix.
Place
Place refers to the accessibility to service provided, which involves physical location
decision. Considering the various barometers connected with choosing of the locality
a suitable plot for hotel” Indian Mist” was finalized.
The site for the proposed hotel “THE GRAND PATHANS” is in Thavakkara situated
close to the new bus stand Kannur As it is situated close to the railway station and
other major tourist destinations in Kannur, there is a very good source of business from
corporate and also tourists.
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Product
A product as far as service marketing is concerned to various types of services rendered. It
includes products such as rooms, food and beverage outlets. These are all those services
which a guest would be able to experience from “THE GRAND PATHANS” .
- Travel Desk
- Fitness Centre & Swimming Pool
- Executive Board room
- Aesthetically & exquisitely designed multi-purpose conference hall
- Multi Cuisine Restaurant & Bar
- In Room Dining
- Car Rental
- 24 Hour Check Out
- High Speed WiFi
- Safe Deposit Locker
- Laundry
Price
How much does your product or service cost? The price you set should reflect your
customer’s perceived value of your product and should correlate with your budget. If
your customer thinks your value is too high, you jeopardize losing a market that’s in it
for a bargain, if your price is too low then you run the risk of losing that all-important
profit.
Deciphering the right price for your product, which is most likely to benefit both your
business and your customer, is generally achieved by businesses through clever
market segmentation. Segmenting your audiences according to their demographic,
geographic, psychographic or behavioral variables is a surefire way to discover and
confirm that the prices you set, and the people you’re targeting, are the most
appropriate, and the most likely to offer you optimal value in return.
The price includes all the taxes and services charges. The pricing strategy to
other products like restaurant, bar, room service, conference hall will depend on
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the menu and the number f base. But the products like conference hall will also
depend on the no. of hours. The hall is used for all these products. There will be
service charges and taxes.
Promotion
Promotion refers to your advertising, marketing, and sales techniques. This could
mean traditional advertising, via TV, radio, billboards, etc., or more modern methods,
like ads within web content, ads on a podcast, email marketing or push notifications,
Advertising
The promotion of the hotel will begin when the project is nearing completion. The
various promotion methods will be adopted through social media platforms,
Advertisements on newspapers and other magazines, hoardings on various roads to
the airport, main roads, railway stations and near to major tourist destinations etc.,
Banners in major shopping and business areas leaflets, brochures, discounts
• Situated in the heart of Kannur close to train station, bus station and
business centers and enchanting beaches, has done many remarkable step
in its endeavor to make your stay an event to remember.
• Our services are renowned to make your stay here enjoyable, whether on
business or leisure our star amenities feathered with care and perfection, will
definitely make you love to be here, again and again. Situated in the center of
the city you can stretch your way to any of the outstanding beauty spots and
enjoy the mystic charm of this enchanted land.
• The tradition and tastes of east and west combine here in a royal manner. A
fusion of Indian and continental cuisine can be enjoyed in this grandeous and
spacious restaurant with 24 hour service and wide seating capacity, and is
always ready to quench the growing needs of this vibrant land. Our special
varieties are sure to remain mouth-watering memories. It will certainly tickle
your taste buds.
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Physical Evidence
It’s important for consumers to know that the brand they’re purchasing from or
interacting with, are legitimate and, well, actually exist in real life. That’s where
physical evidence comes in.
Physical evidence often takes two forms: evidence that a service or purchase took
place and proof or confirmation of the existence of your brand. For example, any
services or products received count as physical evidence. As do the likes of your
receipts, packaging, tracking information, invoices, brochures or PDFs, for example.
Process
The ‘Process’ aspect of the marketing mix describes a series of actions that are
taken in delivering the product or service to the customer. Examining the process
means assessing aspects such as the sales funnel, your payment systems,
distribution procedures and managing customer relationships, for example.
In a service organization, the way the guest is treated creates a ripple, either showing
how many times he is going to come back or how far he is going to go from the
property. The hotel has various outlets through which service is carried out either in
the form of silver service; sit down banquets, pre-plated service and in room dining.
People
Employees. Those people who are involved in selling a product or service, designing
it, managing teams, representing customers... the list goes on. The ‘people’ element
of the 7Ps involves anyone directly, or indirectly, involved in the business side of the
enterprise. There’s no use in creating a great brand, innovative product or amazing
social media presence if you don’t have the right people behind you. It’s integral to
the survival of your business that you make sure that all of your employees, no
matter how behind-the-scenes or customer-facing they are, have fair training and a
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considerable understanding of their role and the impact that it has within the
company.
The excellence and intelligence with which the staff is trained has a favorable effect
in the atmosphere of the lobby and various outlets.
Target Market
The hotel “THE GRAND PATHANS” situated in Kannur is getting a mixed group of
clientele.
Details of calculation:
= 25+60+50+80
= 215/4
= 53.75
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= 65+25+35+15
= 140/4
= 35
Clientele 4
= 10+15+10+15
= 50/4
= 12.5
Business 53.75 %
Tourist 35 %
Others 12.5 %
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CHAPTER – 6
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It is clear from the demand analysis that a hotel with 95 rooms is feasible in Kannur. As
the cost involved for the construction of single room is more or less equal to that of
double rooms, now a day’s only double room are constructed.
Break up of rooms:
Type of rooms
Standard Rooms 65
Studio Rooms 20
Suite Rooms 8
= 225 Sq Ft
= 14625 Sq Ft
= 300 Sq Ft
= 6000 Sq Ft
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= 400 Sq Ft
= 3200 Sq Ft
= 625 Sq Ft
= 1250 Sq Ft
= 25075 Sq Ft
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BASEMENT
TOTAL 11959
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GROUND FLOOR
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TOTAL 18970
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1st FLOOR
TOTAL 9945
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2nd FLOOR
TOTAL 9873
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3RD FLOOR
TOTAL 8495
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4THFLOOR
TOTAL 6370
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Basement 11959
TOTAL 65612
= 18970*30/100
= 5691 Sq Ft
= 18970+5691
= 24661 Sq Ft
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MANPOWER PLANNING
The man power planning for the proposed hotel“THE GRAND PATHANS”
95*1.7
= 162 employees
SHIFT TIMING
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General manager 1
Secretary
1
FRONT OFFICE
Lobby manager 1
Telephone Operator 2
Bell boy 5
Reservation manager 1
Receptionist 2
Reservation assistant 2
Cashier 2
Valet boys 4
Bell captain 2
G.R.E’s 4
Night Auditor 1
Door man 3
TOTAL 30
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HOUSEKEEPING
Executive housekeeper 1
Asst.exe housekeeper 1
Laundry manager 1
Floor supervisor 6
Room boys 10
Laundry attendant 3
TOTAL 29
F & B manager 1
Restaurant manager 2
Banquet Manager 1
Bar Manager 1
Bar Captain 1
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Restaurant Captain 3
Barman 2
Stewards 14
RSOT 2
TOTAL 27
KITCHEN
Executive chef 1
Sous chef 5
Bakery chef 2
Chef De Party 5
TOTAL 25
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Chief Officer 1
Technicians 8
TOTAL 9
SALES DEPARTMENT
Sales manager 1
Sales Executive 2
TOTAL 4
H.R DEPARTMENT
H.R manager 1
Training manager 1
Training Supervisor 2
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Others 5
TOTAL 9
PURCHASE DEPARTMENT
Purchase Manager 1
Store manager 1
TOTAL 4
Accounts Manager 1
F & B Controller 1
Supervisor 2
Cashier 1
TOTAL 5
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SECURITY DEPARTMENT
Security Men 9
TOTAL 10
Kitchen Steward 7
TOTAL 8
General manager 2
Front office 30
Housekeeping 29
F & B service 27
Kitchen 25
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Kitchen stewarding 8
Accounts department 5
Sales department 4
H.R department 9
Purchase department 4
Security 10
TOTAL 162
From the above distribution, the total number of employees working for Hotel “THE
GRAND PATHANS” is 162. As this number may be less for the smooth working of
the hotel therefore the balance requirement of manpower is adjusted by appointing
trainees and contract labor.
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CHAPTER – 7
CONCLUSION
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The project deal with depth study of proposed four star hotel name THE GRAND
PATHANS. The project is conducted to ensure the market feasibility of a 4 star hotel
in Kannur and outline its technical details and recommended marketing mix.
It is observed that Kannur has rich business and tourist resource. The objective of
this report is to find out whether a 4 star hotel with 95 rooms is feasible in Kannur or
not. It has been found that the project is feasible. So we can conclude that the city
like Kannur which is developing day by day in terms of trade, transportation,
infrastructure etc, the hotel and tourism industry are still growing
After conducting a detail study, it is safe to conclude that the proposed hotel THE
GRAND PATHANS which a 4 star hotel in Kannur with 95 rooms is commercially
viable.
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PART-B
CHAPTER 1
PROJECT PROFILE
Constitution : Public
Standard Rooms : 65
Studio Rooms : 20
Suite Rooms : 08
Presidential Suite Rooms : 02
Tariff
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Proposed Facilities
• Multi-Cuisine Restaurant
• Coffee Shop
• Bar
• Banquet Hall
• Conference Hall
• Swimming pool
• Terrace garden
• Valet Services
• Centralized A C
• Locker
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FINANCIAL INFORMATION
2. Means of finance
a) Term loan = 2206.9222
b) Share Capital = 1150.50
c) Promotion’s Contribution = 30
d) Subsidy = 20
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CHAPTER 2
COST OF PROJECT
Total 3093.6355
Total 3395.26496
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CHAPTER 3
MEANS OF FINANCE
Subsidy 20
Equity 1188.34496
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CHAPTER 4
Debt equity ratio is the ratio between the loan and amount borrowed from banks and
other financial institution, the government subsidy and the promoter’s capitals or the
amount put by the promoters. The loans are known as debt and other aspects such
= 2206.92222
1188.34496
= 1.857
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CHAPTER 5
ESTIMATION OF INCOME
ITEM I II III IV V
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CHAPTER 6
ESTIMATION OF EXPENSES
Rs. In Lakh
Items 1st 2nd Year 3rd Year 4th Year 5th year
Year
Cost of F & B Sales 230.68 275.94 300.76 433.0512 492.312
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CHAPTER -7
4:1 0:1
1st
Bank 4.74 26.84 31.58
2nd
Bank 5.67 31.944 37.614
3rd
Bank 6.18 34.568 40.748
4th
Bank 8.893 42.784 51.677
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CHAPTER 8
DEPRECIATION
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CHAPTER - 9
PROFITABILITY STATEMENT
Particulars 1st Year 2nd Year 3rd Year 4th Year 5t Year
h
Expenditure)
1053.2064 1314.0984 1414.13744 1774.73664 2021.929984
(-) Interest on long term loan
(annex-10)
233.0509864 205.08486806 180.474683893 158.8177218
264.8306664 32 26
(-) Depreciation (chap 8) 123.39375 106.3089375 91.96079837 79.96550355 100.4660030
5 23
(-)Preliminary preoperational
47.804 47.804 47.804 47.804 47.804
Expenses (annex total/ 5)
Surplus Available
374.9393805 737.0682739 812.481079768 1050.7499813 1199.094839
47 4
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CHAPTER 10
1188.34496
1188.34496
1188.34496
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165.5
4
=
5
= 33.108
100
=
33.108
= 3.02
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C H A P T E R 11
SOURCE OF FUND
Source of fund Constructi 1st Year 2nd Year 3rd Year 4th Year 5th Year
on
Promotion & 30
Contribution
Subsidy 20
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APPLICATION OF FUND
Margin of 259.5105
Contingency
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C H A P T E R 12
“Break Even Point” is achieved when the total cost equals the total takings & therefore neither
profit nor loss is made.
Practical Applications of Break Even Point:
• Pricing decisions
• Product/Sales Mix
• Expansion of capacity
• Profit Planning
4. Insurance 51.84
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5. Depreciation1qwsz 91.960798375
Total 3534.20782643
3)Variable cost
E)Miscellanies 51.84
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CHAP TER 13
This Debt Service Coverage Ratio indicates whether the amount of profit is adequate
to repay the loan installment with interest.
Coverage I II III IV V
(A)
Profit
203.7416305 582.9553364 672.7162813 922.9804778 1079.443344
after tax 47 4 93 41 73
Interest
on long 264.8306664 233.0509864 205.08486806 180.4746838 2021.929984
3 9
term loan 2 3
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Installmen
t of long
441.384444 441.384444 441.384444 441.384444 441.384444
term loan
Total in
706.2151104 674.435430 646.469312 621.859127 2463.31442
Lakhs 432 06 893 8
Total B = 5112.29340878
= 0.81652
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CHAPTER 14
SENSITIVITY ANALYSIS
In ‘Sensitivity Analysis’ a change is effected in one variable and the values of other
variables are assumes constant and the results are analyzed to find our sensitivity to
various variables with respect to their impact margin. Sensitivity analysis is also knownas
“what if “analysis.
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C H A P T E R 15
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CHAPTER 16
NETWORK ANALYSIS
CONCLUSION
The hotel cost of the proposed hotel THE GRAND PATHANS hotel in
Thavakkara, KANNUR. There are 65 standard rooms, 20 Studio
rooms, 8 suites, 2 presidential suite room. The occupancy has been
assumed to be 50% in the 1st year and 80% in 5th year. The hotel also
provide facilities like bar, restaurant, health club and the estimated
income and expenditure has been worked out keeping in mind the
income cost at which service can be offered to the customer.
The debt equity ratio is 1 ratio 857 which is good combination of debt
and equity finance. The break even percentage is 167.91, debt
service coverage is 0.816552 and sensitive ratio is 2.19
The hotel will be able to pay back the investor their investment
within the period of 3 years.
The debt service ratio indicates that the hotel can easily pay back its
debt’s on time.
.
ANNEXURE – PART A
HOTEL FACILITIES
1. Facilities
Bar Laundry
Coffee shop
Conferences
Seminars
Banquets
Sp occasions
like marriage
etc
FUTURE PLANS
3 Diversification yes/ no
Group No if any
A. General
1. Name of the guest
2. Age
3. Sex
4. Educational Background
5. Profession
6. Nationality
7. Purpose of visit Business/ Tourism / Vacation/ Others
C. IMPRESSIONS
1. Accommodation
2. Food Service
3. Beverage Service
4. Hospitality
5. Courtesy of staff
6. Cleanliness & Hygiene
7. Accounts & Billing
8. Entertainment
9. Information
10.Shopping Arcade
11.Image and Atmosphere of the hotel
12.Parking facilities
13.Location
14.Others (Specify)
& Hospitality
C. Other Comments
OUTLETS
EXOTICA ROOM
SUITE ROOM
RESTAURANT
KITCHEN
ANNEXURE – PART B
COST OF LAND
= 24661*4800
= 18/100*1183.72
= 15/100*1183.72
Rs. 1574.33
1 Central A/C 28
2 Lift (2) 18
3 Generator (2) 12
5 Computer 1
6 Office equipment 2
7 T.V 8
9 Vacuum cleaner 1
10 Septic tank 1
11 Water heater 3
13 Laundry machine 3
14 Kitchen equipment 20
15 Firefighting equipment 1
TOTALS 103
= 65612*1000
=14/100*656.12
=8/100*656.12
= (656.12+91.85+52.48)
=Rs. 800.45
STANDARD – 65
TOTAL 25.285
STUDIO ROOMS – 20
TOTAL 9.58
SUITE ROOMS – 8
TOTAL 10.16
Total 5.54
COFFEE SHOP – 40
Fixture .75
TOTAL 1.775
RESTAURANT – 64
Fixture 2.0
TOTAL 3.42
BAR – 60
Fixture 2.0
TOTAL 3.78
CONFERENCE HALL – 80
Fixtures .30
TOTAL 2.99
ADMINISTRATIVE OFFICE
Fixtures .30
TOTAL 2.225
FRONT OFFICE
Fixture 2
TOTAL 2.51
HOUSEKEEPING
Fixtures .15
TOTAL .365
FITNESS CENTER
Fixtures .20
TOTAL .66
STAFF AREA
Fixtures .15
TOTAL .825
Restaurant 3.42
Bar 3.78
TOTAL 69.115
MISCELLANEOUS ASSETS
STANDARD ROOMS – 65
MISCELLANEOUS ASSETS
STUDIO ROOMS – 20
added = 7.56
(1.64*3) = 4.92
MISCELLANEOUS ASSETS
SUITE ROOMS – 8
added = 4.72
(1.06*3)=3.18
MISCELLANEOUS ASSETS
MISCELLANEOUS ASSETS
RESTURANT – 64
Fork 64 40 .0256
Knife 64 40 .0256
Spoon 64 40 .0256
MISCELLANEOUS ASSET
BAR - 60
Fork 60 40 0.048
Knife 60 40 0.048
Spoon 60 40 0.048
MISCELLANEOUS ASSETS
COFFEE SHOP - 40
Fork 40 40 .016
Knife 40 40 .016
Spoon 40 40 .016
MISCELLANEOUS ASSETS
CONFERENCE HALL - 80
Napkin 80 90 .072
Fork 80 35 .028
Knife 80 35 .028
Spoon 80 35 .028
MISCELLANEOUS ASSETS
HOUSEKEEPING
Duster 65 90 .0585
Broom 20 90 .018
Restaurant 4.286
Bar 7.04
Housekeeping 2.59
TOTAL 48.21
CDP 5 20000 1
TOTAL 25.44
= 25.44 * 7/100
= 1.7808 + 25.44
= Rs. 27.2208
Telephone 1
Water supply 1
Miscellaneous expenses 1
Total 239.020
Estimation of Income
Standard Rooms – 65
Studio Rooms - 20
Suite room – 8
Restaurants - 64
Coffee shop – 40
BAR – 60
Conference hall 80
Year Rate % of No. Of PAX Days TOTAL
Occupancy
1st Year 800 50 40 365 116.8
Type Of Room 1 2 3 4 5
1st Year 2nd Year 3rd Year 4th Year 5th Year
Operating 50 60 65 70 80
Level
Total
Room
1436.47 1706.01 1840.78 2406.08
income 2126.25
Total of
F&B 1230.78
576.7 689.85 751.9 1082.628
outlets
BIBLIOGRAPHY
• Maps of India
• Internet
WEBSITES
• http://www.google.com
• http://www.wikipedia.com