Feasibility Report on Hotel

8/3/2019 Feasibility Report on Hotel

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UTSAV RESORTUTSAV RESORT HOTEL PROJECT

1. INTRODUCTION:

The new millennium has seen the country open up its economy to

foreign investors leading to a large number of private players investing in

the country. With its buoyant economy, India is emerging from behind the

traditional stereotype of being a land of cows, magicians and poor, illiterate

people.

In a country as diverse and complex as India, it is not surprising to find

that people here reflect the rich glories of the past, the culture, traditions

and values relative to geographic locations and the numerous distinctivemanners, habits and food that will always remain truly Indian, according to

five thousand years of recorded history.

From the eternal snows of the Himalayas to the peninsula of the far South,

from the deserts of the West to the humid deltas of the East, from the dry

heat and cold of the Central Plateau to the cool forest foothills, Indian

lifestyles reflect the geography. The food, clothing and habits of Indian

differ in accordance to the place of origin.

The Colorful mosaic of Indian festivals and fairs - as diverse as the land, is

an eternal expression of the spirit of celebration. Observed with

enthusiasm and gaiety, festivals are like gems ornamenting the crown of

Indian Culture. They are round the year vibrant interludes in the mundane

routine of life.

Indian cuisine boasts of an immense variety not restricted to only curry.

In Indian cuisine, food is categorized into six tastes - sweet, sour, salty,

spicy, bitter and astringent. A well-balanced Indian meal contains all six

tastes. This principle explains the use of numerous spice combinations

and depth of flavor in Indian recipes.

ABHISHEK KUMAR RAI JUNE 2011


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Tourism in India has seen development due to the combined effort of

the public and private sectors. The Department of Tourism, Government of

India with its Incredible India campaign has done a commendable job in

promoting the country. It has even been ranked number one destination in

the world according to the Annual Reader's Awards 2007 held by Conde

Nast Traveller, UK. Recent years have seen a large number of international

hospitality brands setting up hotels in the country. Connectivity has also

improved drastically with most international airlines flying to various

Indian cities.

With growing disposable incomes and consumer aspirations

coupled with the enormous tourism potential in India, demand for hotels,

holiday homes & resorts and thus leisure real estate is booming.

According to the World Travel and Tourism Council, India is expected to be

the third fastest growing country in the world over the next ten years, as far

as travel and tourism demand is concerned. That growth potential,

coupled with the 19.8 per cent increase in the number of Indians living in

India with financial assets of more than US$ one million (compared to the6.5 per cent growth worldwide) are important factors in promoting the

growth of leisure real estate in India.

In fact, Indian tourism is expected to grow at the rate of 20 25 per

cent per annum till 2017, posing a huge opportunity for wealth creation in

our country. Hotel industry in India has witnessed tremendous boom in

recent years. Hotel industry is inextricably linked to the tourism industry

and the growth in the Indian tourism industry has fuelled the growth of

Indian hotel industry. The arrival of low cost airlines and the associated

price wars have given domestic tourists a host of options.



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In recent years government has taken several initiatives to boost

travel and tourism which have benefited hotel industry in India. These

include the abolishment of the inland air travel tax of 15%, reduction in

excise duty on aviation turbine fuel to 8% and removal of a number of

restrictions on outbound chartered flights, including those relating to

frequency and size of aircraft. The government's recent decision to treat

convention centres as part of core infrastructure, allowing the government

to provide critical funding for the large capital investment that may be

required has also fuelled the demand for hotel rooms.

Hotel industry in India currently has supply of 110,000 rooms and

there is a shortage of 150,000 rooms which evidently fueled room rates

across the country. According to estimates demand is going to exceed

supply by at least 100% over the next 2 years. Five-star hotels in metro

cities allot same room more than once a day to different guests, receiving

almost 24 hour rates from both guests against 6 8 hours usage. With

demand-supply disparity, hotel rates in India are likely to rise by 25%

annually and occupancy by 80% over the next two years. This will affect

the competitiveness of India as a cost-effective tourist destination.

To overcome this shortage, Indian hotel industry is adding about

60,000 quality rooms currently in different stages of planning and

development which should be ready by 2012. Hotel industry in India is also

set to get a fillip with Delhi hosting 2010 Commonwealth Games.

Government has approved 300 hotel projects, nearly half of which are in

the luxury range. The future scenario of Indian Hotel Industry looks

extremely rosy.

It is expected that the budget and mid-market hotel segment will

witness huge growth and expansion while the luxury segment will continue



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to perform extremely well over the next few years. (Source : I Love India

economy of India dated 21.07.07)

2. THE INDIAN ECONOMY AN OVERVIEW

Rapid growth and strong macro-economic fundamentals have

characterized developments in the Indian economy in the past financial

year. GDP is estimated to have grown at a robust 9.4% during 2006-07 as

against 9.0% in 2005-06. The only time the economy has grown faster was

in 1988-89. This acceleration in growth rates was led by industrial and

services sector activities, which exhibited double-digit growth. Increase in

tourist arrivals and visits, augmentation of telecommunication services,

escalated development in Information Technology (IT) & IT enabled

Services (IteS) and improvement in the financial services sector has kept

the Services sector buoyant in recent years.

The Services sector showed a healthy growth of 11.2% in 2006-07 as

compared to 9.8% in 2005-06 benefiting from the availability of skilledlabour. Trade, Hotels, Transport and communication continued to develop

at an accelerated pace recording a growth of 13.0% during 2006-07 as

against 10.4% in 2005-06.

Trends & Development in Tourism:-

The tourism industry in India despite being an important component of the

economy, contributed only 5.9% of the GDP in 2006-2007. According to

estimates of the World Travel Trade Council, Indian tourism demand will

grow at 8.8% from 2004-13 which would place India as the third-most

rapidly growing tourism market in the world after Montenegro and China. It

would further result in a growth of 7.1% in total travel and tourism GDP.



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The budget has proposed an outlay of approximately Rs.570 crores for

development of tourism infrastructure in 2007-08, up from Rs.423 crores

proposed in the corresponding period of 2006-07.

As India gets younger and richer, there will be sustained demand for short

duration travel at major gateway destinations and these markets will grow

exponentially in the next three to five years. With sustained economic

performance, India's per capita income will also continue to witness

growth. Moreover, higher disposable income rather than lower savings

has influenced the present-day consumption boom in India. As income,

induced spending is likely to sustain itself for a longer period and higher

disposable incomes are also expected to enhance the concept of traveling

for leisure thus providing the necessary impetus to destination travel

within integrated travel circuits. In most markets, insufficient room

availability and high rates create conditions that are not conducive for

large incentive based group travel.

The economy's buoyancy, initiatives to improve infrastructure, the boom in

aviation and real estate, easing of restrictions on foreign investment andperhaps most importantly efforts to communicate the Brand India message

will continue to fuel demand for hotels across star categories in the

majority of leisure markets. India's hotel industry is increasingly being

viewed as investment-worthy both within the country and outside

Recent developments within the industry, backed with a positive outlook

for the economy, have resulted in accelerated growth in demand for hotel

accommodation over the last two years. The continued demand supply

imbalance has led to exponential rate increases resulting in inflated room

rates across key markets in the country, some of which currently rank

among the most expenses hotel markets in the world. Over the long-term,

inflated room rates are expected to have a severe negative effect on the

potential demand, especially for leisure destinations.



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Overall, the industry saw a 12 month growth of 30% in average rate (in

2006-07) as opposed to a growth of 23.7% the previous year. Occupancy

growth which had been 2.6% previous year, showed a marginal growth of

0.7% (in 2006-07). Average rates in 2006-07 witnessed another increase

across all market segments. This is partially attributable to the strong

demand. All-India occupancy touched a record 72% mark for the first time.

While the year-on-year demand growth from certain segments continued,

the overall supply addition has been marginal. Due to the widening gap,

hotels over the last 3 4 years have realigned their yield management and

pricing to increase penetration from high paying customers.

The indications are that when year round occupancies start touching the

70 75% mark, there is substantial un-accommodated demand in the

market. During this high demand period, many cities were completely

sold out on a number of nights, resulting in hotels selling a significant

proportion of its inventory on rack rates.

Hotel Supply

There has also always been considerable debate about the number of

rooms India actually has. Our estimate is that there are possibly 110,000

rooms currently operating in India. It is also felt that there would probably

be another 25000 to 30000 guest houses or corporate guesthouses taking

the total supply of transient guest rooms to approximately 200,000 units /

rooms. However, shocking and a number that we are confident about is

the low number of branded or quality room supply in the country; it stands

at below 40000. This overall number for India is actually lower than that for

many international cities around the globe. Therefore, when we look at the

approximate 102,000 rooms being developed or say we use a probability

factor of 58% across the country, the numbers of room being developed in



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India still remain extremely low and offer huge potential to investors and

operators across all segments. In most cities, this high growth can easily

attributed to the existing low base of quality hotel supply.

Future Trends

Clearly, operators have focused intensely on increasing rates, even if it has

been at the cost of lower occupancies. While this has been a good

strategy in the short term, in the near future the operators need to find the

right balance between trying to push rates vis--vis losing room nights.

Typically, the average rate movement follows the occupancy movement.

This has been the case historically and is a global trend as well. So if

occupancy goes up the rates follow. Conversely, if occupancies decline

the operators will be hard pressed to reduce tariffs.

F & B space and meeting space is expected to become even more

important as we move ahead, particularly for full service hotels. New

restaurant concepts are being created and today modern hotels have been

able to convert the pre function spaces into revenue generating areas.Most conferences need these areas to host sponsor booths and or serve

food.

Technology is also going to become an important player in streamlining

operations and reducing the dependence on man power. Globally, in room

technology is becoming more sophisticated with interactive computers, TV

and music stations. This is to the customers benefit as many of these

services are being provided free to retain the guest.



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Market analysis :-

Seasonality Trend : The Indian hotel industry reflects a clear

seasonality trend. For Example, in India, the tourism and hospitality industryshows signs of an up trend in the months of November to February due to

higher tourist flows. The months of June to September on the other hand, are

months of low occupancies and revenue, with fewer business or leisure

visitors.

Strong dependence on the services economy The hotel industry is

highly dependent on services economy in terms of performance. Thus in the

years of the services economy boom, the hotels business has grown well and

has been relatively unaffected by the under performance of the manufacturing

sectors of the economy. India has a long term competitive advantage in the

services sector which contributed close to 10.6% of Indias GDP in 2005-06 and

is expected to increase further. This trend is the positive signal to benefit the

hotel industry in the coming years

Brand Impact: The hotel industry is characterized by strong brand

focus resulting in choices being made by the customer based on factors

beyond price especially in the luxury segment where the brand is a hallmark

of product and service quality. Our company has registered a name to reckon

with in terms of service and the facilities that are offered for the price. This has

earned customer loyalty, which will reap benefits from the existing customers

who have been using our facilities repeatedly.

Instant perishability of the product: The industry belongs to the

service sector and thus the product (service) is instantly consumed and cannot

be replenished. Thus one, needs to maximize utilization of available capacity

and reduce marginal costs over marginal revenues



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The major cost drivers in the industry are ;

Food and beverage costs

Employee Costs

Power and Fuel expenses

Administrative and other overhead costs

Advertising and publicity expenses

The hotel industry has its own set of entry barriers, which are :

High real estate costs and lack of availability of land in prime

locations

High cost of construction

High break even levels for new hotels, due to high

investment costs

Time taken in acquiring loyalty of customers/brand building

costs



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UTSAV RESORT

1. VISION

To emerge as a leader in providing one-stop, integrated and multi-

facility Business Hotels, Suites, Convention Centers, Banquet Hall,

Restaurant.

2. MISSION

To make a positive difference to customers, employees, shareholders and

community by working together constantly improving satisfaction,

opportunity and value. To strive and exceed their expectations through

passion in what we do pursuing honesty and integrity in our actions with

high commitments to excellence, quality, efficiency, trust and inclusion



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3. Company Profile:

3. About the Promoters


1. Name of the Unit UTSAV RESORT PRIVATE LIMITED

2.

a

Address

Regd.

Office

Bhiringee, Opp Swapan Hotel Durgapur-713213

Dist- Burdwan (West Bengal)

b Site

P.S Kanksa Near: Hindustan Petroleum

Installation, Rajbhandh Chatti, Dist: Burdwan

(West Bengal)

3. Constitution Private Limited Company

4. Certificate of

incorporation

U55102WB1996PTC076367

5. Date of

incorporation

04/01/1996

6. Promoters/Directo

rs

1) Mrs. Anuja Agarwal

2) Mrs. Sita Agarwal

3) Mr. Deepak Agarwal

7. Business

Activities

Hotel cum Bar & Restaurant


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4. Project Details:


1. Name Mr. Deepak Agarwal

Fathers Name Lt. Surendra Kumar AgarwalAddress Bhiringee

Opp, Swapan Hotel, Durgapur-713213Age 41Yrs

Qualification B.Com

Experience Having five years of experience in theindustry. He is also running a unit namedM/s. Ispat Udyog engaged in the sales andservicing of engineering and electricalequipements.

2. Name Mrs. Anuja Agarwal

Husbands Name Mr. Deepak Agarwal

Address BhiringeeOpp, Swapan Hotel, Durgapur-713213

Age 35 Yrs

Qualification Graduate

Experience Five years experience in the similar line of activity and is also looking after the presentoperations of M/s. Utsav Restaurant Pvt. Ltd.A social worker and a known personality in

Durgapur will add value to the business.3. Name Mrs. Sita Agarwal

Husbands Name Lt. Surendra Kumar Agarwal

Address BhiringeeOpp, Swapan Hotel, Durgapur-713213

Age 67 Yrs

Qualification Graduate

Experience Five years experience in the similar line of

activity and is also looking after the presentoperations of M/s. Utsav Restaurant Pvt. Ltd.A social worker and a known personality inDurgapur will add value to the business.


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Project Title: Resort and Convention Centre & Tourism development.

Project Location : In Durgapur City (Rajbandh)

Project Components :

Pre-function area of 644 sq.m.

Banquet Hall for 125 delegates

Indoor Exhibition Spaces aggregating to 1500 sq.

ft.

Food & Beverages & Other Ancillary Facilities

Open Exhibition Ground of 10000 Sq ft (Approx)

Resort with the following requirements

20 No of Room & Lobby classifying 15 Double

Room & 05 Single Room

75 seating all day Restaurant and a lounge bar

And a Banquet Hall .

Support Facilities and on-site infrastructure like internal road

network, parking areas, security, air conditioning, water supply and

rain-water harvesting, sewage treatment, solid waste management,

landscaping and other services required for the complex.

5. Technical Aspects:

Location details: NH 2, Rajbandh Chatty ( Durgapur City).

Demographic Details: The area falls near 875 Longitude & 2388N

Latitude. The Climate of the area is tropical in nature. Winter is pleasant

with coldest months being December and January. The average minimum



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temperature at winter is 7C. Summer is very hot. May being the hottest

month with temperature rising up to 45C with hot wind blowing at noon.

Sometime norwestor blows in the afternoon in the month of April & May.

The average rain fall per year is in the tune of 1430.8mm with June and July

being the wettest months with on average monthly rain fall of 270-

280mm/month. The area being situated in the eastern part of the district the

average rainfall is better than that in western part of the district.

THE FUTURE

With such a proactive approach, the future looks pretty bright. The

tremendous change in the hospitality sector seen so far has been not just

in quantity (occupancy) but also quality. The demand in the premium

segment has also increased steadily. The city has reinforced its position as

the country's favored conference destination and industrial zone. Cost

advantage has invited a host of small/medium scale Industries BPO & IT

companies to flourish here. Employment and spending power have

increased tremendously. This has a bearing on F&B spends by locals. The

future is promising.

Considering the above factors, Government of West Bengal has made a

serious attempt to bring about a drastic change in its policies with a

special reference to the Tourism Sector. The reason could be that the

Travel and Tourism industry is well on its way to becoming one of the most

powerful growth engines in the coming millennium and will generate

millions of job.



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Acknowledging the vast potential and spin-off tourism has on other

industries, the Government of West Bengal is focusing on tourism for

generating greater employment and achieving higher economic growth.

The State Government has the vision of making West Bengal the

destination state of India, given its attractive diversity, natural endowments

and friendly population. West Bengal has a rich tourist potential, which is

yet to be exploited

West Bengal has great potential for tourism with its temple towns, Holistic

Resorts, monuments and other tourist attractions.

To encourage private investment in tourism and related industry, various

incentives and concessions are being offered. In keeping with our

objective and spirit, taxation has been attempted to be rationalized on the

logic of intelligent taxation to enable private sector to expand tourism.

While acknowledging the primacy of the private sector, the state retains

with itself the responsibility of provision of public goods and foraddressing issues related to safety, quality and regulation.

DURGAPUR & NEARBY TOWNS AND DEMAND FOR ACCOMODATION

Durgapur - The Steel City of West Bengal, India

Durgapur the fastest emerging city of West Bengal, India is growing to

become one of the mega city of eastern India. Durgapur popularly known

as the Steel city of eastern India is varying its image and emerging also in

the fields of medical and education to become one of the multipurpose city



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of India. Durgapur has a huge base of industries with two key steel plants

Durgapur Steel Plant and Alloy Steel Plant with their glowing township. City

Centre is the nucleus of Durgapur city's administration. Entertainment

centers richly known wide range of shopping malls and magnificent parks

and picnic spots. Durgapur took pride in its cultural activities though being

a relatively coming up new city.

Andal upcoming Airport will also add advantage for the visitors

Durgapur provides a wide range of oppurtunities to its visitors from

outside location.

Nearby Towns

Durgapur is growing rapidly along with its nearby towns and adjoining

areas. City like Asansol is already a well known city and other towns are

also growing along with Durgapur. These areas adjoining Durgapur has its

own importance and we are providing some information about few of them.

Asansol

Bishnupur

Bankura Town

Bolpur

Burdwan

Panagarh

Raniganj

Asansol

Asansol is the second largest city in West Bengal located in the Burdwan

district. It is a industrial- Coal-mining centre. It is the central city for its coal

belt surrounding and is heavily industrialised, it also acts as a trading town

owing to its location as a transport centre.The major industries here are



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IISCO(SAIL), Chittranjan Locomotive Works, Hindustan cables Limited,

Burn standard, Rekitt & Coleman, Burnpur Cement and a number of small

scale industries. The Eastern coalfields a subsidary of Coal India lies here.

Bishnupur

About 82 Km from Durgapur. A Sub-Divitional of Bankura Dist. It has a very

good road connection with Durgapur. Busses are plying at regular interval

from Durgapur Station. Bishnupur is famous for music known as

Vishnupur Gharana. It is also noted for metal crafts, Silk and Beluchuri

sarees, conch ornaments and Terracotta Sculpture.

Bolpur

Bolpur is a municipality in Birbhum District in the state of West Bengal,

India. It is 145 km north of Kolkata and is best known for the proximity to

Visva Bharati, the university set up by Rabindranath Tagore the Nobel

laureate poet. Given its proximity to Santiniketan and Sriniketan it is one of

the seats of Culture and education in West Bengal.

Burdwan

Burdwan also Bardhaman or Barddhaman is a city of West Bengal state in

eastern India It is the headquarters of Bardhaman District.

The places to visit

The famous Shrine of Sarvamangala, said to contain the remnant of Sati's

body, the umbilicus, is situated here. Aside this, there are quite a number

of temples and Sivalingams.

The Curzon Gate built in honour of the visit of Lord Curzon.

The palaces and gardens of the maharaja Golapbag.

At Nawab Hat, some 2 mile distant, is a group of 108 Siva lingam temples

built in 1788.



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One must also know about a small village of burdhaman called

"Panchkula" where Gajan-Festival is celebrated with huge passion during

the month of May-June.

Shrine and Pir Bahram and Sher Afghan.

Barddhaman also have a planetarium named after India's eminent scientist

Meghnad Saha. It is the second planetarium of the state after Kolkata's

"Birla planetarium".

Panagarh

The name PANAGARH is tagged with a town located in West Bengal, India.

It is situated in the Burdwan district. The importance of this place is right

from the presence of the Military Base Camp up to the Indian Air force

station. Two ways communication by Railways & National Highways (NH2)

retains PANAGARH always connected with other places.

Raniganj

Raniganj is a city and a municipality in Bardhaman district in the Indian

state of West Bengal.

Parks and Picnic Spots.

Durgapur Barrage Exalts Kumar Mangalam Park Science and Energy Park Troika Park Deul/ Gor Jungle/ Maa Shyama Rupa Mandir Rondia Laodoha Forest Nachan Dam Ghagar Budi Maithon Lamia Park ShatabdiPark

Rondia

Randiha is a homely tourist spot in the Durgapur subdivision of Burdwan

district, about 10km from Panagarh on NH2 and about 19km downstream

the Durgapur barrage. A quaint town on the banks of the Damodar,



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Randiha offers a beautiful mix of greenery and water. You can spend the

mornings with endless cups of tea, listening to the chirping of birds. The

quiet of the place makes one aware of the sounds of nature.

MAJOR PLAYERS:

Some of the famous hotels in Durgapur include, Hotel Peerless Inn, Hotel

Pritika, Hotel Rose Valley, Hotel Luxor, Hotel City Residency, Pratik Motel.

RISK FACTORS:

Socio Political Risks :The hotel industry faces risk from the volatile socio-political environment

in the country. While general perception, now about West Bengal has been

on positive note, the disturbances due to Naxal movements have

threatened the industrial growth in the State.

Industry / sector specific risks :

Infrastructure Presence of good infrastructure in terms of airport / air

services is critical to attract customers. With Government of West Bengal

poised to Roads, creation of specialized industrial zones like Software

Park, Hardware Park, Textile Park, Biotech Park, FAB City etc. the

hospitality industry in Andhra Pradesh and especially in Hyderabad is

bound to leap up.

Risk of wage inflation:

The hotel industry needs quality employees and with demand for the same

improving across the industry, the company feels that wage inflation is a

critical factor in determining the costs for the company. Thus, our

Company will continue to focus on improving manpower efficiencies and



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creating a lean organization, while maximizing effectiveness in terms of

customer service and satisfaction, as an area of great importance for the

management of the company

PROJECT DETAILS :-

Land Requirement: Owned by promoters.

Project Cost : Rs230.89 Lacs . Details furnished in appropriate place.

6. Financial Estimates:

Project Cost :

A. Land Development 5.00

B. Hotel uliding 135.72

C. Plant & Machinery 19.75

D. IT & Communication 2.00

E. Furniture & Fixtures 44.65

F. Preliminary & operative Expenses 15.20Total fixed cost 222.32

Margin for Working capital requirement 8.57

as per Working Capital ScheduleTotal cost of project 230.89

Proposed Source of Finance:

A. Term Loan Bank/FI

B. Promoters Contribution

Equity Share Capital & Premium 79.89Unsecured loan from Directors 151.00

(Quasi Equity)

230.89

DEBT EQUITY RATIO = 1.89



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b. Financial Details : The following financial details are

separately annexed in this report:

1 PROJECT COST

2 DEPRECIATION SCH(CO. ACT)3 DEPRECIATION SCH(IT. ACT)4 INCOME TAX COMPUTATION5 REVENUE & ASSUMPTIONS6 PROJECTED PROFIT & LOSS ACCOUNT

7 P R O J E C T E D B A L A N C E S H E E T

8 STATEMENT OF WORKING CAPITAL9 PROJECTED CASH FLOW STATEMENT10 BREAK EVEN POINT11 COMPUTATION OF IRR OF THE PROJECT12 DEBT SERVICE COVERAGE RATIO

13 TERM LOAN SCHEDULE



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PROJECT IMPLEMENTATION SCHEDULE

The implementation schedule of the scheme has been worked out

keeping in view the factors which are likely to influence it e.g. timerequired for completion of civil work, delivery period and arrival of

machinery/equipment etc. at site, foundation and installation work.

The various works, which can be simultaneously carried out have also

been taken into account.

Considering the above and assuming date of application as zero date

the entire scheme would be implemented as detailed below:

Sl

.

N

o.

Particulars Month Start Month

Completion

1. Acquisition of land Already

acquired

-

2. Civil Construction June, 2011 November,

2011

3. Plant & Machinery, etcPlacement of order

Delivery at site

January, 2012

February,

2012

January, 2012

February,2012

4. Erection & Commissioning February,

2012

March,2012

5. Commercial production - April, 2012



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ANALYSIS

STRENGTHS

Present West Bengal Govt. is pro-active in improvement of law &

order which will attract businesses, Tourists.

Availability of land at very competitive prices and encouraging

incentives & benefits for development of industries.

Plenty of underground water as river Damador is passing through

Durgapur

Adequate communication facilities. Improvement of Roads and

infrastructure during the last few years.

Unpolluted and serene atmosphere to be created in of Durgapur City.

Proposed additions like spiritual center, medical care, supermarket,

sport complex both indoor and outdoor, Open Air Theatre, Hotel

Management College

Large convention and banquet halls to accommodate sufficient

number of participants

WEAKNESSES

The proposed hotel location is on the outskirts of the Durgapur City

has the locational disadvantage.

OPPORTUNITIES



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The relatively newer concept of weekend travel is poised to gain further

momentum with a growing economy and higher disposable incomes

and leisure destinations in close proximity to metro cities will benefit

from this trend. Moreover, the developments and expansions planned

in industries and BPO segments remain encouraging. The entry of new

companies, typically, generates significant room night demand during

the start up period as processes are set up and executives travel for

training. This category of hotel customer ensures a relatively strong

base of demand due to a comparatively higher average length of stay.

Scope for enhancing the services and covering various gamut of

entertainment to the local populace

Ever increasing demand from the rich and affluent for a pollution

free environment and holiday

Growing awareness in HR activities to conduct residential

conferences, training and seminars.

Accelerated awareness and consciousness towards health, fitness

and comforts in the minds of the Indian populace.

THREATS

There are virtually no threats to the proposed Hotel as there is no such

Hotel in Durgapur. Hotel management will be in constant improvement

keeping space with international standard in the form of additional

facilities. This will ensure that there will be no threat from any

competitors.



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7. Conclusion:

We have based our conclusion on the following

a. the company is promoted by an established personals who

has proven his capability by successfully running business in

Durgapur West Bengal

b. Existing players in the industry are flourishing and additional

capacities are being built up.

c. There is adequate Demand and supply gap.

d. Possibilities of new markets for the industry are in thehorizon.

e. Debt Equity, the DSCR and sensitivity analysis shows the

project to be healthy. The Pay Back period, Break even point

indicating satisfactory prospects.

f. Locational advantage and connectivity.

g. With the changing image of West Bengal, Investments have

started to flow in and resulting in flow of floating population.

Documents

Feasibility Report on Hotel