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5 Star Hotel

A hospitality unit such as a restaurant, hotel, or an amusement park consists of multiple groups such as facility maintenance and direct operations (servers, housekeepers, porters, kitchen workers, bartenders, management, marketing, and human resources etc.). The common law says that hotel is a place where all who conduct, themselves properly and who being able and ready to pay for their entertainment, accommodation and other services including the boarding like a temporary home. It is home away from home where all the modern amenities and facilities are available on a payment basis. A hotel is an establishment that provides lodging paid on a short-term basis. Facilities provided may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a fridge and other kitchen facilities, upholstered chairs, a flat screen television and en-suite bathrooms. Small, lower-priced hotels may offer only the most basic guest services and facilities. Larger, higher-priced hotels may provide additional guest facilities such as a swimming pool, business centre (with computers, printers and other office equipment), childcare, conference and event facilities, tennis or basketball courts, gymnasium, restaurants, day spa and social function services. Hotel rooms are usually numbered (or named in some smaller hotels and B & Bs) to allow guests to identify their room. Some boutique, high-end hotels have custom decorated rooms. Some hotels offer meals as part of a room and board arrangement. Most hotel establishments are run by a General Manager who serves as the head executive (often referred to as the "Hotel Manager"), department heads who oversee various departments within a hotel (e.g., food service), middle managers, administrative staff, and line-level supervisors. The organizational chart and volume of job positions and hierarchy varies by hotel size, function and class, and is often determined by hotel ownership and managing companies. Hotels are found in almost all the cities. Hotels operate twenty four hours a day, seven days a week. The principal factor that determines the guest attitude towards a hotel is service although other amenities such as room, food and beverages are of equal importance tangible determinants. Motel – The Concept Initially the term motel was meant for local motorists and foreign tourists travelling by road. They serve the needs and requirements of these travellers and meeting their demand for transit and accommodation. Some of the important services offered by the motels are parking, garage facilities, accommodation, and restaurant facilities. Over the last decade business opportunities in India has intensified and elevated room rates occupancy levels in India. ‘Hotel Industry in INDIA’ success story is only second to china in Asia pacific. The world travel and tourism council, says that India ranks 18th in business travel and will be among the top 5 very soon. India’s big success stores includes the new model for development and growth; a model that is uniquely made. Indian hotel industry’s room rates are mostly likely to rise 25% annually and occupancy to rise by 80%, over the next two years. ‘Hotel industry in India is gaining its competitiveness as a cost effective destination. In many areas hotels are important attractions for visitors who bring with them spending power that the locals and who tend to spend at a higher rate than they do when they are at home. Through spending by visitors hotels thus often contribute significantly to local economies both directly and indirectly through the subsequent diffusion of the visitor expenditure to the Govt. offers and to other recipients in the community. In areas receiving foreign visitors, hotels are often important foreign currency earners and in this way may contribute significantly to their countries’ balance of payments. In countries with limited export possibilities, hotels may be one of the few prime sources of foreign currency earnings. Hotels are an important source of amenities for local residents. Their restaurants, bars and other facilities often attract many local customers and many hotels have become social centres of their communities. Hotels are also important outlets for the products of other industries. In the building and modernization of hotels, business is provided for the construction industry and related trades. Equipment, furniture and furnishings are supplied to hotels by a wide range of manufacturers. INR ($1.7 Billion) in 2019 and average annual revenue/room was ~$12,400 per annum. • Post COVID, revenues will decline by ~48% in 2020 YOY but the market will also see a sharp recovery in 2021 and 2022 led by domestic leisure tourism. • The share of organized sector is expected to increase from ~5% in 2019 to ~8% in 2025 on account of growing pipeline from bigger brands and inventory reduction in unbranded hotels due to COVID. Thus, due to demand it is best to invest in this project. Few Indian Major Players • D L F Aspinwal Hotels Pvt. Ltd. • Elixir Hospitality Mgmt. Ltd. • Emerald Leisures Ltd. • Hayre Regency Hotels Pvt. Ltd. • Highbar Technocrat Ltd. • I T C Hotels Ltd.
Plant capacity: Deluxe Rooms (Rent):38 Nos. per day Executive Rooms (Rent):28 Nos. per day Business Clientele Rooms (Rent):17 Nos. per day Suits Rooms (Rent):17 Nos. per day Coffee Shop (Visitors):25 Nos. per day Restaurant (Visitors):75 Nos.Plant & machinery: 1172 Lakhs
Working capital: -T.C.I: Cost of Project:4032 Lakhs
Return: 1.00%Break even: N/A
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