MF&FV

MARKETING FEASIBILITY AND FINANCIAL VIABILITY PROJECT
PROJECT REPORT ON
MARKET FEASIBILITY AND FINANCIAL

VIABILITY
In Partial Fulfillment of the requirements for the VIII Semester of 4th Year
Bachelor of Hotel Management
Programme in Bangalore University
Year of Submission
2020-2021
ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING

TECHNOLOGY
(Affiliated to Bangalore University& Approved by AICTE)
NAGARESHWARA NAGENAHALLI, KOTHANUR P.O.,

BANGALORE-560077
ACHINTIYA DHAR
17UMC27003
ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 1

CERTIFICATE
This is to certify that Mr. Achintiya Dhar of VIII Semester of Bachelor of

Hotel Management has satisfactorily completed the Project report on Market
Feasibility and Financial Viability of a proposed Hotel.
(Prof. SUDHA TIWARI) (Mr. P.SEN THAMIZHAN)

PRINCIPAL
Financial Feasibility
Accounting & Management
(HOD)
(EXAMINER)

ACKNOWLEDGEMENT
I take this opportunity to thank my marketing faculty Mrs. Sudha

Tiwari for extending her kind co-operation in terms of her
knowledge, guidance and support at each and every stage of my
research work.
I would also like to thank our Principal, Mr. P Sen Thamizhan for
allowing me to go ahead with this project.
I also thank the staff and management of the various hotels that
extended their co-operation to me during the course of this study
without whose help this project would not have been successfully
completed.

DECLARATION
I hereby declare that this project report entitled “Market

feasibility & financial viability” has been made by me with the
complete fulfilment standards laid down by the Bangalore
University. I would like to state that this project has not been
submitted to the university previously by anyone.
ACHINTIYA DHAR
17UMC27003

TABLE OF CONTENT
CHAPTER PAGE
TOPIC
NO. NO.
PART-A Market Feasibility 06 to 41
CHAPTER – 1 INTRODUCTION TO TOURISM AND HOTEL INDUSTRY 07 to 13
OBJECTIVE, SCOPE, METHODOLOGY AND
CHAPTER – 2 14 to 15
LIMITATIONS
CHAPTER – 3 PROFILE OF THE PLACE 16 to 23
CHAPTER – 4 DEMAND ANALYSIS & DEMAND QUANTIFICATION 24 to 27
CHAPTER – 5 TARGET MARKET & RECOMMENDED MARKET MIX 28 to 32
CHAPTER – 6 TECHNICAL AND MANPOWER PLANNING 33 to 39
CHAPTER – 7 CONCLUSION 40 to 41
PART – B Financial Viability 42 to 79
CHAPTER – 1 PROJECT PROFILE 43 to 45
CHAPTER – 2 COST OF THE PROJECT 46 to 47
CHAPTER – 3 SOURCE OF FINANCE 48 to 49
CHAPTER – 4 DEPT-EQUITY RATIO 50 to 51
CHAPTER – 5 ESTIMATION OF EXPENSES 52 to 53
CHAPTER – 6 ESTIMATION OF INCOME 54 to 55
CHAPTER – 7 DEPRECIATION SCHEDULE 56 to 57
CHAPTER – 8 WORKING CAPITAL 58 to 59
CHAPTER – 9 PROFITABILITY STATEMENT 60 to 61
CHAPTER – 10 RETURN OF INVESTMENT & PAYBACK PERIOD 62 to 63
CHAPTER – 11 FUND FLOW STATEMENT 64 to 66
CHAPTER – 12 BREAK-EVEN ANALYSIS 67 to 69
CHAPTER – 13 DEBT SERVICE COVERAGE RATIO 70 to 71
CHAPTER – 14 SENSITIVITY RATIO 72 to 73
CHAPTER – 15 COST BENEFIT ANALYSIS 74 to 75
CHAPTER – 16 NETWORK ANALYSIS 76 to 77
CHAPTER -17 CONCLUSION 78 to 79
ANNEXURE & EXHIBITS 80 to 100
BIBLOGRAPHY & REFERENCES 101

PART - A
MARKETING
FEASIBILITY

CHAPTER 1
INTRODUCTION TO TRAVEL
&
TOURISM

HOTEL INDUSTRY AND TOURISM
Hotel industry and tourism as stated earlier as complementary to each other. Both the
industries as striving and progressing because of each other. Hotels provide the following
basics facilities to tourists:
1. Well furnished rooms and suites.

2. Restaurants and coffee shops.
3. Conference rooms and banqueting facilities.
4. Parking facilities and car rentals.
5. Communications facilities and foreign exchange counters.
Hotels may have all or some of the under mentioned facilities:

1. Shopping arcade
2. Swimming Pool
3. Health Club
People are prepared to move to other places when they are assured of the fact they will
have a comfortable stay. Whatever be the need of the person, comfort remain the basics
requirements of all human beings.
Tourism and hotels has come a long way hand in hand. To keep the present rate of growth
in the economy, it is important to maintain high levels of output in both tourism and hotel
industry. Hotel are directly linked to and are integral part of many other economic
activities. In particular, the relationship between tourism and hotels is very crucial for a
proper understanding of the role of hotels in the process of economic development of the
state. Hotel industry is indispensable for the success of tourism. It is said "no hotel; no
tourism." The relationship between hotels and tourism can be expressed in two ways:
1. Firstly, hotel industry provides the basic ingredients of the hotel supply to the
tourism section.
2. Secondly, the bulk of the business demand of hotel industry comes from tourism.

DIFFERNT KINDS OF TOURISM

1. DOMESTIC TOURISM
2. INTERNATIONAL TOURISM
DOMESTIC TOURISM
The tourism prevailing within the country and the tourists visit places within their own
country.
INTERNATIONAL TOURISM
The tourism which provides the tourists of different countries to visit the tourist centers
across the globe. Tourists can be categorized based on the purpose of their travel they can
be:
1. Holiday Makers
2. Business People
3. Common Interest
GROWTH OF TOURISM
The World Tourism Organization (UNWTO) forecasts that international tourism will
continue growing at the average annual rate of 4%. With the advent of e-commerce,
tourism products have become one of the most traded items on the internet. Tourism
products and services have been made available through intermediaries, although tourism
providers (hotels, airlines, etc.), including small-scale operators, can sell their services
directly. This has put pressure on intermediaries from both on-line and traditional shops.
Tourism has grown massively as an industry over the past century for a variety of
reasons:
Advances in travel technology - There are a wider range of ways to travel as a tourist
and these methods are widely available. You can be a tourist using a car, a boat and most
importantly an airplane. Motorways have linked places together, whilst Budget airlines
such as EasyJet and Ryanair have brought prices down and increased traffic volumes.

Holiday entitlement- In many rich nations has increased over the past century. This
means that people can take more holidays during the year and swells the number of
tourists.
People have more disposable income now - This is income that people have to spend on
themselves. This is partly because of salary rises and partly because the price for
essential goods such as food and clothing has fallen. Many families now have 2 income
earners rather than one; they have fewer kids and often have a car. All of these factors
increase the likelihood of people becoming tourists.
The availability and type of holiday has increased - Mass tourism and package
holidays have opened up markets to huge numbers of people. Extreme and ecological
tourism are also becoming popular, further swelling the choice.
The Media - Extensive coverage of holiday types has increased the demand to travel.
Most newspapers have a "holiday" section, whilst TV shows can show people the
enormous choice on offer - shows such as Ray Mears and 71 degrees north can promote
extreme tourism for example, whilst "Benidorm" promotes mass tourism. Gap years have
also been pushed by the media and are popular.
IMPORTANCE OF TOURISM
All developing and developed countries throughout the world are interested in tourism.
Political and industrial leaders have recognized the economic advantage of tourism and
that it has rapidly won reorganization as an activity generating number of social and
economic benefits like promotion of national integration and international understanding,
creation of employment opportunities, removal of religious imbalances, opening of
growth countries, augmenting foreign exchange earnings and redressing the balance of
payment situation if helps in the redistribution of income. It brings in new money and
business to an area.

ROLE OF HOTEL IN TOURISM

The hospitality sector plays a significant role in the development of tourism. Hotel plays
an indispensable role of providing products like food and shelter along with an intangible
service like a warm, homely and secure atmosphere. Hotels are an infrastructure of the
tourism industry. The absence of hotels is a place may deter the tourist from that place.
Also, for a successful tourism it is equally necessary that there is accommodation which
is sufficient in quantity and comfort ability with the requirement of the tourists.
ECONOMY AND TOURISM

For most countries production, consumption & employment resulting from international
tourism are important contribution to their economic development. The growth of
international tourism and its effect are often criticized and sometimes the industry is
rejected when it reaches the tolerance threshold of the local population international and
domestic tourism in every country should be based on an overall policy which links
tourism development plan with economic development plan. Thus, it is vital to:
1. Determine the objective and the resources of macroeconomic Tourism
development policy.
2. Evaluate the multiplier effect of these policies on production consumption.
And assess the limit of the policies with, respect to protection of the natural and social
environment.
THE ECOLOGICAL & CULTURAL EFFECT OF INTERNATIONAL

TOURISM
The economic and social cultural effects of international tourism are the effect on prices
notability inflation, the social consequences on the popular in destination countries &
damage to natural resources.
The Ecological Effect

These are damage of natural environment by the urbanization of natural sites and also
contamination of river & beaches. However international tourism also finances land

development programs which help to combine visits by tourists with preservation and
even improvement of tourism.
Social Cultural Effects

The social cultural effects resulting from certain form, of international tourism can upset
cultural equilibrium of the visited countries. It disrupts tradition (for example, religious
festival disturbed by tourists’ groups etc.). However, there can also be possible effects
which reinforce local culture to contribute ancient traditions.
An example of international co-operation is the joint tourism Policy of the United States
and Mexico, which focuses on promotion Tourism products around Canadian real liking
fatal to vergers.
IMPACT OF TOURISM
The environment, whether it is natural or man-made is the most fundamental ingredient of
tourism product. However as soon as tourism activities take place, the environment is
inevitably changed or modified either to facilitate tourism or during the tourism process.
Environment preservation and improvement motives are now at forefronts of many
development decisions and such considerations are treated with much greater respect than
they were during the first half of the century.
In order to study the physical impact of tourism it is necessary to establish the following:
1. The physical impacts created by the tourism activities as opposed to other
activities.
2. What conditions were like before tourism activity took place, in order to derive a
base line from which comparison can be made.
3. An inventory of flora and fauna, together with an unambiguous index of tolerance
level to the types of impact created.
4. Where indirect level of environment impact are associated with tourism activity.
The direct environment impact of tourism, include the following positive effect:
1. The preservation/restoration of historic building and sites.

2. The creation of park and wild life parks.
3. The protection of sea and beaches.

THE SCOPE OF TOURISM
The tourism industry is often recognized and categorized under a vast column comprised
of multiple sectors like airlines, hospitality providers and government agencies. These
various arms work under one body to make the industry function both effectively and
efficiently in the midst of challenges.
The international tourism body has been extending its capabilities mostly by making way
for plenty of developments within the industry through the extension of benefits by
stronger cooperation and industrial tie ups. The scope of the entire industry can be
divided into three headers.
A LOOK INTO THE FUTURE
The tourism industry has seen unprecedented growth throughout the years and is yet to
see even more progress on a massive scale with the passage of time.
The advancement in technology, logistics and communication has led to a wider scope for
development in the industry. This is mainly due to the efforts of key players to improve
interaction within the industry by better linking market factors and speeding up several
important functions.
The industry is seeing greater focus being directed toward it from the side of the
government. Around the globe, ruling governments are looking at the tourism industry as
a very viable and profitable mechanism in improving growth and widening progress.
Although the tourism industry is facing several challenges around the globe due to
unprecedented events, it is sure to make it out with greater gains due to the increasing
flow of tourists. The sector is sure to integrate wider growth in the coming years given
due to the incentive from the side of the agencies to enhance profits and from the tourists
to see more for lesser prices.

CHAPTER-2
OBJECTIVES, SCOPE,
METHODOLOGY AND
LIMITATIONS

OBJECTIVES
1. To analyze the existing 3-star & 4-star hotels in Kharadi, Pune.
2. To estimate the demand for a new 3-star & 4-star hotel.
3. To decide the location and technical aspects of a new hotel.
4. To estimate the manpower requirements of the proposed hotel.
5. To assess the market feasibility& financial viability of a new hotel.
SCOPE
1. To study about the existing 3-star & 4-star hotels in Kharadi, Pune.
2. To study about the facilities of the existing hotel.
3. To know the type of clientele of the existing hotel.
4. To study about the USP of the existing hotel.
5. To assess the future prospects of the proposed hotel
METHODOLOGY
Details and relevant data pertaining to the study is obtained through,
1. Necessary data were obtained from magazines, published journals,

brochures etc.
2. Data published by communication department.
3. Data published by tourism department of the state of Maharastra and
Pune Municipal Corporation (PMC).
4. Information about financial and economic viability collected by online
published surveys randomly selected star hotels
LIMITATIONS
Making of the project suffered from some limitations, such as:
• Study is limited to the market conditions of Pune only.

• Limited time factor is involved in undertaking project study.
• Financial constraints being a student.
• Restriction regarding rules and regulation of the country.

CHAPTER-3
PROFILE OF THE PLACE

INFORMATION ABOUT PUNE
Pune, known as Poona until 1978, is the second-largest metropolitan city in the Indian
State of Maharashtra and the eighth most populous city in India, with an estimated
population of 7.4 million as of 2020. It has been ranked as "the most liveable city in
India" several times. Along with the municipal corporation limits of PCMC and the
three cantonment towns of Camp, Khadki and Dehu Road, Pune forms the urban core of
the eponymous Pune Metropolitan Region (PMR). According to the 2011 census the
urban area had a combined population of 5.05 million whilst the population of the
metropolitan region was estimated at 7.4 million. Situated 560 metres (1,837 feet) above
sea level on the Deccan plateau on the right bank of the Mutha river, Pune is also the
administrative headquarters of its namesake district.
In the 18th century, the city was the seat of the Peshwas, the prime ministers of
the Maratha Empire and one of the most important political centres on the Indian
subcontinent. The city was also ruled by the Ahmednagar Sultanate, the Mughals and
the Adil Shahi dynasty. Historical landmarks include Lal Mahal, the Kasba
Ganapati temple and Shaniwar Wada. Major historical events involving the city include
the Mughal–Maratha Wars and the Anglo-Maratha Wars.
Pune is widely regarded as the second major "IT hub of India" and the top "automobile
and manufacturing hub of India". It is known as the Oxford of the East with the presence
of a wide range of educational institutions. India's first indigenously run girls' school was
started in Pune by Savitribai Phule and Fatima Sheikh. The city has emerged as a major
educational hub in recent decades, with nearly half of the total number of international
students in the country studying in Pune. Research institutes of information technology,
education, management and training attract students and professionals from India and
overseas.
HISTORY OF PUNE
The Indian city of Pune has a long history being a significant though the ages. The
earliest reference to Pune is an inscription on a Rashtrakuta Dynasty copper plate dated
937 CE, which refers to the town as Punya-Vishaya, meaning 'sacred news'. By the 13th
century, it had come to be known as Punawadi.
During the Rashtrakuta dynasty, the city was referred to as Punnaka and Punyapur, whilst
the copper plates of 758 and 768 CE show that the Yadava dynasty had renamed the city
Punakavishaya and Punya Vishaya. Vishaya means land and Punaka and Punya mean
holy. The city was known as Kasbe Pune when under the command of Maratha
king Shivaji's father, Shahaji Raje Bhosale. The only divergent naming was when Mughal
emperor Aurangzeb renamed the city Muhiyabad sometime between 1703 and 1705 in
memory of his great-grandson Muhi-ul-Milan, who died there. But the name was erased

soon after Aurangzeb's death. It became Poona in English during British rule in 1857 and
changed to Pune in 1978.
Pune was prominently associated with the struggle for Indian independence. In the period
between 1875 and 1910, the city was a centre of agitation led by Gopal Krishna
Gokhale and Bal Gangadhar Tilak. The city was also a centre for social reform led
by Gopal Ganesh Agarkar, Mahatma Jyotirao Phule, feminist Tarabai Shinde, Dhondo
Keshav Karve and Pandita Ramabai. They demanded the abolition of caste prejudice,
equal rights for women, harmony between the Hindu and Muslim communities, and better
schools for the poor. Mahatma Gandhi was imprisoned at the Yerwada Central
Jail several times and placed under house arrest at the Aga Khan Palace between 1942
and 1944, where both his wife Kasturba Gandhi and aide Mahadev Desai died.
After Indian independence from the British in 1947, Pune saw enormous growth
transforming it into a modern metropolis. The Poona Municipal Council was reorganised
to form the Pune Municipal Corporation (PMC) in 1950. The education sector in the city
continued its growth in the post-independence era with the establishment of the
University of Pune (now, Savitribai Phule Pune University) in 1949, the National
Chemical Laboratory in 1950 and the National Defence Academy in 1955.
In 1998 work on the six-lane Mumbai-Pune expressway began; it was completed in
2001. In 2008 the Commonwealth Youth Games took place in Pune, which encouraged
development in the northwest region of the city.
GEOGRAPHY
Pune is situated at approximately 18° 32" north latitude and 73° 51" east longitude. The
city's total area is 15.642 sq. km. By road Pune is 1,173 km (729 mi) south of Delhi,
734 km (456 mi) north of Bangalore, 570 km (350 mi) north-west of Hyderabad and
149 km (93 mi) south-east of Mumbai.
Pune lies on the western margin of the Deccan plateau, at an altitude of 560 m (1,840 ft)
above sea level. It is on the leeward side of the Sahyadri mountain range, which forms a
barrier from the Arabian Sea. It is a hilly city, with Vetal Hill rising to 800 m (2,600 ft)
above sea level. The Sinhagad fort is at an altitude of 1,300 metres (4,300 feet).
The old city of Pune is at the confluence of the Mula and Mutha rivers. The Pavana, a
tributary of Mula river and Indrayani river, a tributary of the Bhima river, traverse the
northwest suburbs of Pune.
The modern city of Pune has many distinct neighbourhoods. These include the
numerous peths of the old city on the eastern bank of the Mutha river, the cantonment
areas of Khadki and Pune Camp established by the British, and numerous suburbs. The
industrial growth in the Pimpri, Chinchwad and nearby areas allowed these areas to
incorporate as the separate city of Pimpri-Chinchwad.
The Pune Metropolitan Region (PMR), initially defined in 1967, has grown to
7,256 km2 made up of the ten talukas of the Pune district. The twin cities of Pune and

Pimpri-Chinchwad along with the three cantonment areas of Pune, Khadki, and Dehu
Road form the urban core of the PMR, which also includes seven municipal councils and
842 villages.
Peth is a general term in the Marathi language for a locality in Pune. Seventeen peths are
located in Pune, which today constitute the old city of Pune. Most were established during
the Maratha empire era under the Maratha and Peshwa rule of the city in the 18th century,
before the arrival of the British. Seven of them are named after the days of the week in
Marathi, and the day of the week on which traders and craftsmen in these peths mainly
conducted business corresponded to the day after which each is named. Other peths are
named after their respective founders. Pune includes seventeen peths: Ghorpade Peth,
Somwar Peth, Mangalwar Peth, Budhwar Peth, Guruwar Peth, Shukrawar Peth, Shaniwar
Peth, Raviwar Peth, Kasba Peth, Bhawani Peth, Ganj Peth, Nana Peth, Ganesh Peth,
Sadashiv Peth, Narayan Peth, Rasta Peth, Navi Peth.
PUNE TRANSPORTATION
Public transport in Pune includes Pune Suburban Railway, bus services operated
by PMPML and auto rickshaws. Uber and Ola Cabs also operate in the city.
Construction of Pune Metro, an urban mass rapid transit system, is underway as of
2018.
Public buses within the city and its suburbs are operated by Pune Mahanagar Parivahan
Mahamandal Limited (PMPML). PMPML operates the Rainbow BRTS system, the first
of its kind in India, in which dedicated bus lanes were supposed to allow buses to travel
quickly through the city. The project has turned out to be a failure, receiving little
patronage from the local citizenry. Maharashtra State Road Transport Corporation runs
buses from stations in Wakdewadi, Pune station, and Swargate to all major cities and
towns in Maharashtra and neighbouring states. Private companies also run buses to
major cities throughout India. In January 2019, Pune became the first Indian city to
adopt e-buses and Bhekrai Nagar the country's first all-electric bus depot. As of
November 2019, up to 133 electric vehicles (EVs) have been deployed across the city in
the first phase of its e-bus programme. The user's group is Pune Bus Pravasi Sangh.
Pune Metro, a mass rapid transit system, is under construction and is expected to be
operational by 2021. The detailed project report was prepared for the initial two lines
by Delhi Metro Rail Corporation which was approved by the State government in 2012
and by the central government in December 2016. Two lines, Line 1 from Pimpri
Chinchwad Municipal Corporation Building to Swargate and Line 2 from Ramwadi to
Vanaz, with a combined length of 31.25 kilometres (19.42 mi), are being constructed
by MahaMetro, a 50:50 joint venture of the State and central governments. Line 1 will
run underground between Swargate and Range Hills be and elevated until Pimpri
Chinchwad. Line 2 will be completely elevated and will intersect Line 1 at the Civil
Court interchange station in Shivajinagar.

Line 3 between Hinjewadi and Civil Court, Shivajinagar was approved by the state and
central governments in January and March 2018, respectively. This 23.3-km line is being
implemented by PMRDA on a public-private partnership basis.
TOURIST ATTRACTION IN PUNE
Pune is the second largest city of Maharashtra state, India and is surrounded by
the Sahyadri Mountain range. It occupied an important place during the Maratha Empire
between 1674 and 1881. Hence, it homes numerous forts and wadis highlighting typical
Maratha architecture. It also has rich cultural and spiritual history with many temples and
ashrams spread across the city. In additional to local adventure and history junkies, Pune
also attracts many international tourists because of Osho International Meditation Resort
that is located in heart of Pune at Koregaon Park.
SINHAGAD FORT:
Sinhagad is a hill fortress located at around 35 km southwest of the city of Pune, India.
Some of the information available at this fort suggests that the fort could have been built
2000 years ago. The caves and the carvings in the Kaundinyeshwar temple stand as
proofs for the same.
Previously known as Kondhana, the fort had been the site of many battles, most notably
the Battle of Sinhagad in 1670. Perched on an isolated cliff of the Bhuleswar range in
the Sahyadri Mountains, the fort is situated on a hill about 760 metres above ground and
1,312 metres above mean sea level.
The Sinhagad (Lion's Fort) was strategically built to provide natural protection due to its
very steep slopes. The walls and bastions were constructed only at key places. There are
two gates to enter the fort, the Kalyan Darwaza and Pune Darwaza which are positioned
at the south east and north-east ends respectively.[2] The fort was also strategically located
at the centre of a string of other Maratha Empire forts such as Rajgad Fort, Purandar
Fort and Torna Fort.
The Fort is a popular weekend destination for many residents of Pune, including trekking
enthusiasts with access to the top of the fort from the base of the Sinhgad village. The trek
involves a one-way walk of 2.7 km (1.6 miles) over which the walker gains about 600 m
(1950 feet) in elevation.
Parts of the once extensive fortification are in ruins. The fort houses a memorial to Tanaji
as well as the tomb of Rajaram I. Visitors can see the military stables, a brewery and a
temple of the goddess Kali along with a Hanuman statue to the right side of the temple, as
well as the historic gates. The original commemorative memorial of Tanaji Malusare has
been unearthed by the restoration workers at Sinhagad Fort in Feb 2019. The stone
structure was found buried under cement, concrete, and layers of oil paint and is believed
to be around 350 years old.

SHIVNERI FORT:
Shivneri fort is a 17th-century military fortification located near Junnar in Pune
district in Maharashtra, India. It is the birthplace of Shivaji , the founder of Maratha
Empire.
Shivneri is a hill fort having a triangular shape and has its entrance from the South-west
side of the hill. Apart from the main gate there is an entrance to the fort from side called
locally as the chain gate, where in one has to hold chains to climb up to the fort gate. The
fort extends up to 1 mi (1.6 km) with seven spiral well-defended gates. There are mud
walls all around the fort. Inside the fort, the major buildings are the prayer hall, a tomb
and a mosque. There is an overhanging where executions took place. There are many
gates & structures protecting this fort. Mana Daravaja is one of the many gates of the fort.
It’s also called the origin of Tune.
At the centre of the fort is a water pond which is called 'Badami Talav', and to the south
of this pond are statues of Jijabai and a young Shiva. In the fort there are two water
springs, called Ganges and Yamuna, which have water throughout the year. Two
kilometres away from this fort there are the Buddhist rock-cut caves,
called Lenyadri caves, which is also one of Ashtavinayak temple in Maharashtra. It has
been declared as a protected monument.
The nearest town Junnar is a taluka place and is well connected by road. Junnar is about
90 km from Pune. The fort is at about 2–3 km from the junnar town. It is easy to reach the
fort top via main entrance, however the trekkers with proper climbing equipment can try
the chain route which is located on the western scarp of the fort. From the top of the
fort, Narayangad, Hadsar, Chavand and Nimgiri forts can easily be seen.
SHANIWAR WADA PALACE:

A prominent historical landmark in Pune is Shaniwarwada which is considered as one of
the best pune tourist places. It is a majestic fortification which was built in 1732 and
during that time it was the seat of the Peshwas of the Maratha Empire and they ruled over
there until 1818. After they lost control to the British East India Company, they could not
use it longer. But when they were in the reign, Shaniwarwada was the centre of Indian
politics in the 18th century and is one of the famous places to visit in pune with friends.
RAJA DINKAR KELKAR MUSEUM:

An intriguing museum with a lot of references to the medieval history of India is located
in Pune and that is the most famous tourist places in Pune, Raja Dinkar Kelkar Museum.
It possesses the rare collection of Dr. Dinkar G Kelkar dedicated to the memory of his
sone, Raja. There are three floors for this museum displaying different types of sculptures
dating back to the 14th century along with ivory, silver and gold items and musical
instruments, war weapons, vessels etc. The collection began in 1920 and by 1960, the
museum was filled with 15000 objects and later in 1962, Dr. Kelkar donated all the
collections to the Government of Maharashtra. Currently, if you visit the museum, you
will come across more than 20000 objects out of which 2500 only are on display.

NATIONAL DEFENCE ACADEMY:

NDA is the sophisticated acronym of the National Defence Academy in Pune. It is the
joint services academy of the Indian Armed Forces where three sections of the defence
field such as the Army, the Navy and the Air Force cadets are trained together before they
get pre commissioning training in the respective service academies and it is one of the
famous places to visit in Pune city. The academy is located at Khadakwasla near Pune
and it is the first tri service academy in the world. Since its establishment, the cadets from
the academy have led and fought in major conflicts in which the Indian Armed Forces has
been called to action.
The NDA campus is situated about 17 km south west of Pune city. The administrative
headquarters of the NDA, the Sudan Block is named like that in honour of the soldiers of
Indian soldiers who lost their lives during the East African Campaign in Sudan. The
building is a three storied one made of basalt and granite structure constructed with the
famous Jodhpur red sandstone. The exterior design has a blend of arches, pillars and
verandahs topped by a dome. There are a number of war relics in the campus along with
an extensive library named the Vyas Library that accommodates more than 100000
printed volumes.
PARVATI HILL:
This beautiful lush green hill is one of the prominent Pune visiting places. Not only is the
place popular for trekking and escaping into nature, but is famous for its ancient Paravati
Temple atop the summit. This temple, located at around 2,100 ft. above sea level, was
built during the time of the Peshwas and it is one of the best places in Pune.
One of the best activities in Pune is to see the sunset from this hilltop, which is reachable
after a climb of around 103 steps. There are also other temples like Devdeveshwar
temple, Kartikeya temple, and Vishnu temple at the top.
PUNE-OKAYAMA FRIENDSHIP GARDEN:

Tucked away from the bustling city, lies a surreal place in Pune, Pune-Okayama
Friendship Garden that looks refreshingly green everywhere around as far as your eyes
can see! Spread across 10 acres of land, this garden is inspired by a 300-year-old Japanese
Korakuen garden that was developed by Ikeda Royal family in Okayama, Japan.
This is the biggest Japanese garden in the world outside Japan and has also been featured
in many Bollywood movies. The garden has become a key attraction in Pune and is also
referred to as Pu La Deshpande Garden, in fond memory of Pu La Deshpande, a
renowned Marathi writer.

RAJIV GANDHI ZOOLOGICAL PARK:

The famous park is known for having a snake park, an animal orphanage and a zoo that
makes it totally worth a visit for lovers of wildlife and nature. Whether you are an adult or
a kid, a visit to Rajiv Gandhi zoological park is an exciting trip to learn more about
snakes and reptiles and come back with more knowledge about these elusive creatures.
Some famous animals which can be spotted here are a white tiger, leopard, blackbucks,
elephants, sambhars etc. There is also a 13 ft cobra which gathers the most attention by
tourists visiting the snake park inside the Rajiv Gandhi Zoological Park.
MULSHI LAKE AND DAM:

In the recent years, Mulshi Lake and Dam have been reformed to be one of the major
tourist places in Pune and those who love to capture the pleasant pictures of nature at its
best flood toward this lake and dam built on the famous Mula River. It is located in the
Mulshi Taluka administrative division of the Pune district.
The water from the dam is taken to use for irrigation and producing electricity at the
Bhira hydroelectric power plant. The power plant is operated by Tata Power. The station
is operating six 25 MW Perton turbines and one 150 MW Pumped Storage Unit. An
inimitable weekend gateway from Pune to the precious nature filled by the Sahyadri
ranges, Koraigadh and Dhangad Fort and other major attractions is the dam and lake.
The lake and dam can be witnessed from a nearby village that is Valanewadi, located
about 6 kilometres away from Mulshi. It is also a perfect spot for birding, nature walk,
photography and trekking near Pune because of the pristine nature’s influence on the
location so well. During monsoon, the lake and dam will be overflowing and the gushing
water produces some soothing voices enough to let any perplexed mind to be relaxed.
Hence people come to enjoy the beauty of the lake and dam during the heavy rainy
season.
FASHION STREET:
The crowded narrow lanes of Fashion Street are known to be one of the best places to
enjoy a shopping spree in Pune. The place has around 450 stalls offering budget friendly
clothing and accessories options. From high end brands to local salons, the variety of
shops and items makes people from all over the city visit here. If your bargaining skills
are good, then shopping at Fashion Street can turn out to be the best experience for you.
Overall if you're looking for an affordable location in Pune to shop for the clones of your
favourite brands then fashion Street is the one for you.

CHAPTER 4
DEMAND ANALYSIS
&
DEMAND QUANTIFICATION

DEMAND
The term demand signifies the ability or the willingness to buy a particular commodity at
a given point of time.
The following factors influence for a hospitality product at a particular place:
1. Tourist Inflow
2. Transport Facility
3. Growth in Industry and Trade
4. High Income Land and Leisure Time
5. Private agencies like Travel Agents and our Operators
Reasons which generate demand can be grouped under the following heading:
1. Business
2. Leisure
3. Others
Hotels for Market Survey:
1. Royal Orchid Hotel

2. Fairfield by Marriott
3. Ibis by Accor hotels
4. Lemon Tree Hotel
MARKET SURVEY
Name of Hotel No. of Rooms Occupancy

Royal Orchid 115(P) 56%(W)
Fairfield by Marriott 109(Q) 48%(X)
Ibis by Accor hotels 160(R) 52%(Y)
Lemon Tree 69(S) 64%(Z)

AVERAGE NO. OF ROOMS:
Average no. of rooms = Total No. Of Room = 115+109+160+69

Total No. of Hotels 4
= 113.
DEMAND ANALYSIS
Let “N” be the total No. of Rooms
N = 453
Let “W” be the Weighted Average Occupancy
W = (P x W) + (Q x X) + (R x Y) + (S x Z)
N
W = (115 x 56) + (109 x 48) + (160 x 52) + (69 x 64)

453
W = 54%
ESTIMATION / PROJECTION OF DEMAND
Y = (W- B.E.P) x N
100
W = Weighted Average Occupancy Percentage
B.E.P = Estimated Break Event Point of Occupancy %
N = Existing No. of Hotel rooms in the Market
Y = (54 - 47) x 453

100
Y =31

NO. OF ROOMS THAT CAN BE ESTABLISHED WITHOUT

MAKING LIKELY LOSS
Let it be "X" then,
X = Y/ BEP x 100
Where Y = The Demand-Supply Gap
BEP = The Estimated Break Even Point
X = 31 x 100
47
X = 65.9 Rooms
Since there is demand for 66 rooms, a hotel with 60 rooms is found commercially viable
in Kharadi, Pune.

CHAPTER-5
TARGET MARKET
&
RECOMMENDED MARKET MIX

CLIENTELE
Name of Hotel Tourists Business Others

Royal Orchid 85%(K) 10%(E) 5%(I)
Fairfield by Marriott 70%(L) 20%(F) 10%(J)
Ibis by Accor hotels 90%(M) 5%(G) 5%(O)
Lemon Tree 65%(N) 25%(H) 10%(T)
AVERAGE CLIENTELE
1. Tourist Clientele = K+L+M+N = 85+70+90+65 = 78

4 4
2. Business Clientele = E+F+G+H = 10+25+5+10 = 14
4 4
3. Others = I+J+O+T = 5+10+5+10 = 8
4 4
RECOMMENDED MARKET MIX
MARKETING:
Marketing is an integrated communication-based process through which individual and
community discover that existing and newly identified needs and wants may be satisfied
by product and services of others.
MARKETING MIX
Marketing mix is a set of controllable, tactical, marketing tool that works together to
achieve company objective they are product, price, place and promotion
SERVICE MARKETING MIX:

Service marketing mix is based on relationships and value it may be used to market a
service or product.
The survey conducted creates awareness that due to economic reforms and to ensure a
successful promotional strategy, it is essential to implement the 7 P’s of marketing in the

most efficient names the main purpose of strategy option is to create and maintain
demand for the facilities in the proposed hotel.
The 7 P's are:

• PRODUCT
• PRICE
• PLACE
• PROMOTION
• PEOPLE
• PROCESS
• PHYSICAL EVIDENCE
PRODUCT
The product refers to the item or services offered. These may be tangible(product) or
intangible(service). The hotel The Shining Star is a leisure class hotel which has 60
rooms and will be a 4-star category.
Rooms:
All the 60 rooms will be spacious, well designed and exuberant decor. Each room will
have a telephone, cable television and will be air-conditioned.
Rooms are divided into 3 categories:

• Single Room
• Double Room
• Suite
PRICE
The Hotel being exclusive and offering high standard of luxury will be priced according
to the facilities and services offered as well as keeping in mind the current global
pandemic situation and the competitive around the city.

ROOMS PRICE (INR)

SINGLE ROOM 3,500.00
DOUBLE ROOM 4,500.00
SUITE 6,000.00
PLACE
The proposed Hotel would be located at Kharadi, Pune. The approximate distance from
Airport is 6 km, 3 km from railway station and just 1 km from bus station. It is a hotel
that suits all genres of guests.
PROMOTION
The Shining Star is built to attract business clients, to do that promotion should be done
via the following ways:
• Offers: Different kinds of combo offers should be provided to the guests like
Room + Conference Hall @ 15% OFF.
• Print Media: It is very efficient way of promotion as everyone reads newspapers
and an advertisement will surely be noticed.
• Electronic Media: This is the most effective way of promotion. Everyone uses
Facebook, Watch Television and an advertisement will reach to many people.
• Travel Agents: It is a very effective as agents will bring business to the hotel as
well as will promote it.
PEOPLE
This is the most important part of an organization as employees are the image builder of
the Hotel. They should be educated, should have a good personality, well trained and
most important thing is politeness towards the guest and other employees.
PROCESS
Marketing has to follow a set procedure associated with the operation of the hotel. They
have to be very systematic for efficient and effective service. Efficiency built hotel image
which is the main goal of marketing.

PHYSICAL EVIDENCE
This deal with creating a congenial environment both for the guest and staff. This will
include the layout, working condition, architecture, proper space utilization with the
locality, type of hotel etc.

CHAPTER-6
TECHNICAL & MANPOWER
PLANNING

PLANNNING APECTS
The hotel building will have 4 floors including a basement. The proposed area for each
floor and department are given below:
Types of Room
Single Rooms 24
Double Rooms 26
Suites 10
Technical aspects of rooms are:
1) Single Room
Average area of the Room = 250 sqft
Average area of the Bath Room = 50 sqft
Total area of the room = 300 sqft
2) Double Rooms
3) Suite
Average area of the Living Room = 100 sqft
ROOM TARIFF
ROOMS PRICE (INR)

SINGLE 3,500.00
DOUBLE 4,500.00
SUITE 6,000.00

HOTEL BUILDING
Basement 1
Basement Layout Square Feet
Housekeeping 900
L&D Department 600
Accounts department 600
Banquets Store 700
General Store 1000
Engineering and Maintenance 1000
HR 500
Purchase 400
Staff Cafeteria 1000
Locker Room 150
Service Lift 100
Time Office 100
Sales & Marketing 400
Staff Parking 400
Fire Exit 250
Locker(M) 400
Locker(F) 450
Total 8950
Ground Floor
Lobby 850
Front Office 500
Bar 400
Restaurant Kitchen 800
Coffee Shop 1000

Main Kitchen 2000

Cloak Room 150
Guest Lift 100
Service Lift 150
Guest Stairs 150
Executive Office 300
Room Service 200
Health Club & SPA 500
Fire Exit 100
Corridor 200
Service Stairs 150
Swimming Pool 650
Business Center 750
Total 8950
First Floor
Deluxe (10), Executive (12) 7300
Service Lift 150
Guest Lift 100
Service Stairs 100
Guest Stairs 100
Fire Exit 100
Pantry 150
Oriental Restaurant 700
Corridor 250
Total 8950
Second Floor
Deluxe (6), Executive (8), Suite (5) 6850
Service Lift 150
Guest Lift 150
Service Stairs 100

Guest Stairs 100

Fire Exit 100
Floor Pantry 150
Banquet 1100
Corridor 250
Total 8950
Third Floor
Deluxe (8), Executive (6), Suite (5) 6750
Service Lift 150
Guest Lift 150
Service Stairs 100
Guest Stairs 100
Fire Exit 100
Floor Pantry 150
Corridor 250
Open smoking Area 400
Total 8150
TOTAL BUILD UP AREA:
Therefore
Land area required is = 12,000 sqft
Total built up area = 45,700 sqft

MANPOWER PLANNING
NUMBER OF
EMPLOYEES DESIGNATION
EMPLOYEE
General manager 1
Secretary 1
FRONT OFFICE
Front office manager 1
Duty manager 3
Cashier 1
Bell boys 4
Front office associate 3
Telephone operator 1
HOUSEKEEPING
Executive housekeeper 1
Housekeeping supervisor 2
Housekeeping attendants 10
PRODUCTION
Executive chef 1
Sous chef 1
Chef de partie 2
Commis 6
SERVICE
F&B manager 1
Outlet manager 3
Banquet manager 1
Captain 3
Stewards 8
KITCHEN STEWARDING
Supervisor 1
Stewards 4
ENGINEERING & MAINTENANCE
Chief engineer 1
Technicians 3
ACCOUNTS

Account’s manager 1
Clerks 1
Associate 2
SALES & MARKETING
Director of Sales 1
Sales Manager 1
Executive 2
PURCHASE
Manager 1
Assistant 2
SECURITY
Head security Officer 1
Doorman 2
Security guard 4
Total 81
SHIFT TIMINGS:
Morning Shift:7am -4pm
General Shift:9am-6pm
Afternoon Shift:1pm-10pm
Night Shift:10pm -7am

CHAPTER-7
CONCLUSION

CONCLUSION
The tourism is one of the fastest growing and the largest industry in the
world. It had tremendous potential for earning foreign exchange.
Yielding tax, revenue, providing employment and promoting the growth
of backward region.
The objectives of this report are to find out whether a 4-star hotel will
be feasible in Pune or not. This was done by survey to find out the
potential demand of a 4-star hotel as well as the study on the already
existing supply. So, this project is undertaken to find out the feasibility
of the proposed hotel.
According to the survey on the demand analysis it has been noted that a
60-room hotel is feasible. Hence a hotel with 60 rooms has been
proposed. This proposed hotel will be having the best facilities which
are up to the best standard provided in the industry.

PART - B
FINANCIAL VIABILITY

CHAPTER – 1
PROJECT PROFILE

PROJECT PROFILE
Name of the Proposed Hotel - The Shining Star
Location - Kharadi, Pune
Category - 4-star Leisure Class Hotel
Types of Ownership - Private Ltd. Company
Target Market - Tourist, Business
Room Status - Suite (10), Double Rooms (26), Single Rooms (24)
Total Room - 60 rooms
TARIFF
Types of Rooms Rate
Single Rooms 3,500.00

Double Rooms 4,500.00
Suite Rooms 6,000.00
GST = 12%

PROPOSED FACILITIES
1. Restaurant 1 - Coffee Shop/Multicuisine outlet

2. Restaurant 2 - Oriental Restaurant
3. Lounge - Bar- cum-Lounge
4. Banquets Hall - 1
5. Conference Room - 1
6. Channel music system
7. Car parking
8. Doctor on call
9. Airport pick up
10. Telephone
11. TV with satellite channel
12. Health club
13. Laundry
14. Locker room
15. Swimming pool
16. Room service
17. Fax
18. ISD / STD
19. Business Centre

CHAPTER - 2
COST OF THE PROJECT

COST OF THE PROJECT
S NO PARTICULARS AMOUNT
1 Cost of land (annexure 1) ₹ 18,750,000.00
2 Cost of building and civic work (annexure 2) ₹ 85,093,400.00
3 Cost of plant and machines (annexure 3) ₹ 14,978,000.00
4 Cost of furniture & fixtures (annexure 4) ₹ 9,040,800.00
5 Cost of misc. assets (annexure 5) ₹ 4,792,690.00
GROSS TOTAL ₹ 132,654,890.00
6 Margin for contingency (annexure 6) ₹ 13,265,489.00
7 Pre-operative & preliminary expenses (annexure 8) ₹ 10,855,909.00
COST OF PROJECT ₹ 156,776,288.00
8 Interest on implementation (annexure10b) ₹ 18,410,415.00
TOTAL COST OF PROJECT ₹ 175,186,703.00

CHAPTER-3
MEANS OF FINANCE

MEANS OF FINANCE
PARTICULARS COST
Bank loan ₹ 113,294,862.00
Equity ₹ 61,891,841.00
Share Capital ₹ 49,095,465.00
Promoter’s contribution ₹ 10,796,376.00
Subsidy ₹ 2,000,000.00
TOTAL ₹ 175,186,703.00

CHAPTER-4
DEBT EQUITY RATIO

DEBT EQUITY RATIO
Debt – equity ratio = debt / equity

Where,
➢ Debt = long-term borrowing from banks
➢ Equity = (share capital + promoter’s contribution + subsidy)
Debt = ₹ 11,32,94,862.00
Equity = ₹ 61,891,841.00
Debt /equity ratio = 113294862/61891841
= 1.83:1

CHAPTER 5
ESTIMATION OF INCOME

ROOMS
1st year 2nd year 3rd year 4th year 5th year
(In INR) (In INR) (In INR) (In INR) (In INR)
Single rooms 9450000.00 19008000.00 25920000.00 33264000.00 44928000.00
Double rooms 13162500.00 25168000.00 33696000.00 45864000.00 56160000.00
Suite rooms 6750000.00 13200000.00 18360000.00 25200000.00 33120000.00
TOTAL 29362500.00 57376000.00 77976000.00 104328000.00 134208000.00
F&B OUTLET
Coffee
2500000.00 7680000.00 14040000.00 27000000.00 48600000.00
shop
Oriental
1750000.00 6912000.00 18000000.00 30240000.00 44370000.00
Restaurant
Bar 687500.00 1760000.00 6480000.00 13500000.00 18360000.00
Banquets 6250000.00 19200000.00 58500000.00 86400000.00 144000000.00
In- Room
1200000.00 2160000.00 3564000.00 4212000.00 7776000.00
Dining
TOTAL 12387500.00 37712000.00 100584000.00 161352000.00 263106000.00
Grand
41750000.00 95088000.00 178560000.00 265680000.00 397314000.00
Total

CHAPTER-6
ESTIMATION OF EXPENSES

ESTIMATION OF EXPENSES
Item
Raw materials
5015000 15276800 40622400 64972800 105069600
(40% of F&B sales)
Electricity
3352000 7645440 14362560 21340800 31750560
(8% of total sales)
Salaries
(10% of increase after 1624500 1624500 1786950 1786950 1965645
2 year)
Administration
expenses 2095000 4778400 8976600 13338000 19844100
(5% of total sales)
Advertisement
4190000 9556800 17953200 26676000 39730250
(10% of total sales)
Insurance & legal
expenses 838000 1911360 3590640 5335200 7937640
(2% of total sales)
Miscellaneous
2095000 4778400 8976600 13338000 19844100
(5% of total sales)
Telephone
2095000 4778400 8976600 13338000 19844100
(5% of total sales).
Repair and
Maintenance 2095000 4778400 8976600 13338000 19844100
(5% of total sales)
Total 23399500 55128500 114222150 173463750 265830095

CHAPTER-7
DEPRICIATION SCHEDULE

DEPRICIATION SCHEDULE
Plant & Furniture and Miscellaneous Total

Yr Building (10%)
Machinery (28%) Fixtures (26%) assets (18%) Depreciation
Dep. Dep. Value Value Dep.
Value Value Dep.
(In (In (In (In (In (In INR)
(In INR) (In INR) (In INR)
INR) INR) INR) INR) INR)
1 85093400 8509340 14978000 4193840 9040800 2350608 4792690 862684 15916472
2 76584060 7658406 10784160 3019565 6690192 1739450 3930006 707401 13124822
3 68925654 6892565 7764595 2174087 4950742 1287193 3222605 580069 10933914
4 62033089 6203309 5590509 1565342 3663549 952523 2642536 475656 9196830
5 55829780 5582978 4025166 1127047 2711026 704867 2166879 390038 7804930

CHAPTER-8
WORKING CAPITAL

WORKING CAPITAL
Raw material A/C receivable

(40% of F&B sale (20% of total Salary Cash flow TOTAL
Year Particular
x 15 days) sales x 1 month) (In INR) (In INR) (In INR)
(In INR) (In INR)
Bank 103048 558667 661715
1st Owner 103048 139667 1624500 300000 2167215
Total 206096 698333 1624500 300000 2828929
Bank 313907 1274240 1588147
Owner 313907 318560 1624500 300000 2556967
2nd
Total 627814 1592800 1624500 300000 4145114
Bank 834707 2393760 3228467

Owner 834707 598440 1786950 300000 3520097
3rd
Total 1669414 2992200 1786950 300000 6748564
Bank 1335058 3556800 4891858

4th Owner 1335058 889200 1786950 300000 4311208
Total 2670115 4446000 1786950 300000 9203065
Bank 2158964 5291760 7450724
5th Owner 2158964 1322940 1965645 300000 5747549
Total 4317929 6614700 1965645 300000 13198274

CHAPTER-9
PROFITABILITY STATEMENT

PROFITABILITY STATEMENT
PARTICULARS
0ccupancy % 45% 55% 60% 70% 80%
A Operating profit 18500500 40439500 65309850 93296250 131051905
Interest on long term

1 14728332 11782666 8836999 5891333 2945666
loan
2 Depreciation 15916472 13124822 10933914 9196830 7804930
Preliminary & Pre-

3 2171182 2171182 2171182 2171182 2171182
operative Expenses
Interest on working
4 99257 238222 484270 733779 1117609
capital
B Profit before tax -14414743 13122609 42883485 75303126 117012518
5 Tax (@25%) -3603686 3280652 10720871 18825782 29253130
6 Surcharge (5% of B) -180184 164033 536044 941289 1462656
Education cess (3% of

6a -108111 98420 321626 564773 877594
B)
C Profit after Tax -10522763 9579504 31304944 54971282 85419138
7 Depreciation 15916472 13124822 10933914 9196830 7804930
Preliminary & Pre-

8 2171182 2171182 2171182 2171182 2171182
operative Expenses
D Surplus 7564891 24875508 44410040 66339294 95395250
Installment on term
9 22658972 22658972 22658972 22658972 22658972
loan
E Net cash flow (D - 9) -15094081 2216536 21751067 43680322 72736278

CHAPTER 10
RETURN ON INVESTMENT
&
PAYBACK PERIOD

RETURN ON INVESTMENT & PAYBACK PERIOD
Return on investment = Net cash flow X 100

Equity
I year -24.39
II year 3.58
III year 35.14
IV year 70.58
V year 117.52
Average return on investment = (I year +II year +IIIyear +IVyear +V Year) / 5

= -24.39+3.58+35.14+70.58+117.52
5
= 40.49
Payback period = 100/ average return on investment
= 100/40.49
= 2 year 6 months

CHAPTER 11
FUND FLOW STATEMENT

FUND FLOW STATEMENT
CONST.
Year 1 Year 2 Year 3 Year 4 Year 5
PARTICULARS PER.
(In INR)
Long term loans 113294862
Share capital
49095465
Promoters’
contribution
10796376
Subsidy
2000000
Gross profit 4304827 21600392 40626213 61596394 89482414
Depreciation 15916472 13124822 10933914 9196830 7804930
Preoperative &
preliminary 2171182 2171182 2171182 2171182 2171182
expenses
TOTAL 175186703 22392481 36896396 53731309 72964406 99458525

DISPOSAL OF FUNDS
CONST.
I YEAR II YEAR III YEAR IV YEAR V YEAR
PARTICULARS PER.
(In INR)
Fixed assets 132654890
Margin of
13265489
contingency
Preliminary and
pre-operative 10855909
expenses
Interest during
18410415
implementation
Interest on long
14728332 11782666 8836999 5891333 2945666
term loan
Interest on Bank
99257 238222 484270 733779 1117609
Overdraft
Instalment of long-
22658972 22658972 22658972 22658972 22658972
term loan
Dividend on share
3927637 3927637 3927637 3927637 3927637
(8%)
Total 175186703 41414199 38607497 35907879 33211721 30649885

CHAPTER-12
BREAK EVEN ANALYSIS

BREAK EVEN ANALYSIS
Break-even point is achieved when the total cost equals the total taking and therefore
neither profit nor loss is made. It is also known as the cost volume profit relationship.
Practical application of breakeven point
• Pricing decision
• Make or by decision
• Product / sales mix
• Utilization of limiting factor
• Alternative method of production
• Expansion of capacity
• Profit of capacity
• Profit planning
Assumed for 3rd year of operation occupancy 60%
Sl. No. Particular Amount

A Estimated revenue ₹ 179,532,000
B Fixed cost:
1 Power (40%) ₹ 5,745,024
2 Salaries & wages ₹ 1,786,950
3 Interest on long term loan ₹ 8,836,999
4 Insurance ₹ 3,590,640
5 Depreciation ₹ 10,933,914
6 Advertisement & Publicity ₹ 26,699,750
Administration & General
7 ₹ 13,349,875
Expenses
TOTAL FIXED COST ₹ 70,943,152
C Variable cost:
1 Raw material ₹ 40,622,400
2 Power (60%) ₹ 8,617,536
3 Repair & maintenance ₹ 8,976,600
4 Interest on working capital ₹ 484,270
5 Miscellaneous ₹ 8,976,600
TOTAL VARIABLE COST ₹ 67,677,406

Contribution = Estimated Income – Variable cost

= 179532000– 67677406
= 111854594
Break-Even Point = Total Fixed Cost x 100

Contribution
= 70943152x100
111854594
= 63.42
Absolute Break-Even Point = BEP x Occupancy %

100
= 63.42x 60
100
= 38.05
Break Even Turnover = Estimated Revenue x Absolute Break Even Point

Occupancy Percentage
= 179532000x 38.05
60
= 113867169

CHAPTER 13
DEBT SERVICE
COVERAGE RATIO

DEBT SERVICE COVERAGE RATIO
Coverage I:
Particular
Profit after tax -10522763 9579504 31304944 54971282 85419138
Depreciation 15916472 13124822 10933914 9196830 7804930
Preliminary exp. 2171182 2171182 2171182 2171182 2171182
Total 7564891 24875508 44410040 66339294 95395250
Grand total ₹ 23,85,84,984.00
Coverage II:
Particular
Interest on long term loan 14728332 11782666 8836999 5891333 2945666
Installment on long term
22658972 22658972 22658972 22658972 22658972
loan
Total 37387304 34441638 31495972 28550305 25604639
Grand total ₹ 15,74,79,858.00
Average DSCR = Total Coverage A / Total Coverage B
= 238584984
157479858
=1.52:1

CHAPTER 14
SENSITIVITY ANALYSIS

SENSITIVITY ANALYSIS
For 3rd year of occupation
1. Change in income for 1% occupancy

= Total revenue
Occupancy rate
= 41900000+95568000+179532000+266760000+396882000
60
= 980642000
60
= 16344033
2. Change in expenditure for 1% occupancy
= Total expenditure
Occupancy rate
= 23399500+55128500+114222150+173463750+265830095
60
= 632043995
60
= 10534067
3. Sensitivity ratio
= Change in income
Change in expenditure
= 16344033
10534067
= 1.55:1

CHAPTER 15
COST BENEFIT ANALYSIS

COST BENEFIT ANALYSIS
To find out cost benefits analysis
A= Total cost of the project
= Rs. 17,51,86,703.00
B= Total income – Total expenditure
= 980642000-632043995
= Rs. 34,85,98,005.00
Cost benefit analysis = A / B
= 175186703
348598005
= 0.50

CHAPTER 16
NETWORK ANALYSIS

NETWORK ANALYSIS
Activity Time duration
in month
Preparation project report 1
Market feasibility 1
Registration of the company 1
Purchase of land 1
Preparation of building plan 1
Bank loan 1
Power and water connection 1
Construction of the building 12
Acquiring plant and machinery 1
Sanitary & electric work 1
Recruitment of regular staff 1
Furnishing & interior décor 2
Apply for bank overdraft 1
Trail runs 2
Landscaping 2
Commercial operation 7
36 Months

CHAPTER -17
CONCLUSION

CONCLUSION
The total cost of the project is Rs. 17,51,86,703.00 there are 60 rooms,
consisting of 24 single rooms, 26 double rooms and 10 suite rooms The hotel
also provides facilities like restaurant, coffee shop, bar, banquet hall, central
music system, car parking, doctor on call, airport pick up and drop,
telephone in all room with direct dialling, safety deposit locker etc. The
estimated income and expenditure have been assured at keeping in view the
economic cost at which the service can be offered to the customers.
The Debt equity ratio is 1.83:1 is a well combination of debt and equity
finance. The rate of depreciation of assets and preliminary expenses has been
kept down at fairly reasonable limits which should prove to be satisfactory.
Other calculations done were break even percentage is 63.42%, debt service
coverage ratio is 1.52:1, sensitivity ratio 1.55:1, return on investment is
40.49, payback period is 2 years 6 months and cost benefit analysis is 0.50.
The capital intensity is more than 1 which means that the hotel is profitable.
Thus, from the above I conclude that the project is financially viable.

ANNEXURES AND EXHIBITS
ANNEXURE 1
COST OF LAND
S. NO. PARTICULARS AMOUNT IN INR
Total Site Area X Rate/Sqft.

1 ₹ 1,50,00,000.00
12000x1250
2 Conveyance cost ₹ 22,50,000.00
3 Cost of development ₹ 15,00,000.00
Total cost of land ₹ 1,87,50,000.00
ANNEXURE 2
BUILDING AND CIVIL WORK
S. NO. PARTICULARS AMOUNT IN INR
Total built-up Area x Rate/Sqft.

1 ₹ 6,39,80,000.00
45700x1400
2 Electricity ₹ 1,15,16,400.00
3 Draining & Plumbing ₹ 95,97,000.00
Total Building Cost ₹ 8,50,93,400.00

ANNEXURE 3
PLANT AND MACHINERY
S NO. PARTICULARS INR (in Lakh)
1 Central A/C (100 tons) 25.00
2 Elevator (2+1) 28.50
3 Generator 22.00
4 Telephone & EPABX 1.75
5 Transformer 5.65
6 Boilers 18.00
7 Bore well & Plumbing 12.00
8 CCTV/Music 2.00
9 Dish Washer (2) 3.50
10 Firefighting equipment 2.75
11 Heavy Duty printer 3.00
12 Kitchen equipment 25.63
Total 149.78

ANNEXURE 3-A
KITCHEN EQUIPMENT
A In INR B In INR C In INR
Gas range Rice Dough maker
₹ 2,40,000.00 ₹ 27,000.00 ₹ 50,000.00
(4x10) cooker (2)
Baking
₹ 2,52,000.00 Trolley (6) ₹ 30,000.00 Pot racks (20) ₹ 14,000.00
oven (3x2)
Tandoor Grinder Potato peeler
₹ 1,00,000.00 ₹ 40,000.00 ₹ 50,000.00
(5) (8) (100kg/h)
Ice cube
Salamander
Mincer (4) ₹ 88,000.00 machine ₹ 70,000.00 ₹ 90,000.00
(6)
(2)
Deep Walk-in
₹ 2,16,000.00 ₹ 4,50,000.00 Knife (20) ₹ 10,000.00
freezer (2) cooler (3)
Pizza oven Glass Bain Marie
₹ 1,05,000.00 ₹ 26,000.00 ₹ 1,50,000.00
(2x3) cooler (2) (8x5)
Ice cream
Deep fat Micro wave
₹ 1,00,000.00 cabinet ₹ 30,000.00 ₹ 60,000.00
fryer (2x4) (4)
(300L)
High
Juice
pressure ₹ 80,000.00 ₹ 40,000.00 Pine blender ₹ 35,000.00
mixer (2)
burner (8)
Stainless
Pot and
steel ₹ 60,000.00 ₹ 50,000.00 Miscellaneous ₹ 1,00,000.00
pans (50)
burner (4)
Total ₹ 12,41,000.00 Total ₹ 7,63,000.00 Total ₹ 5,59,000.00
Grand Total ₹ 25,63,000.00

ANNEXURE 4
FURNITURE & FIXURES
S.No. Particulars INR (in lakhs)
1 Single Room 19.56
2 Double Room 25.87
3 Suite Room 13.82
4 Coffee Shop 3.40
5 Bar 1.44
6 Oriental Restaurant 2.96
7 Room Service 1.14
8 Banquet Hall 7.09
9 Administrative Office 2.46
10 Front Office & Business Centre 3.86
11 Health Club 5.97
12 Staff Cafeteria & Locker Room 2.85
Total 90.41
ANNEXURE 4-A
SINGLE ROOM: 24
Particular Qty. Rate /per unit In INR
Bed cot 24 ₹ 13,500 ₹ 3,24,000.00
Mini bar (30L) 24 ₹ 8,000 ₹ 1,92,000.00
Coffee table 24 ₹ 6,500 ₹ 1,56,000.00
Ward robe 24 ₹ 9,000 ₹ 2,16,000.00
Luggage rack 24 ₹ 2,500 ₹ 60,000.00
Wall-mounted
24 ₹ 16,000 ₹ 3,84,000.00
Television (32")
Carpets 24 ₹ 3,500 ₹ 84,000.00
Single couch 24 ₹ 9,000 ₹ 2,16,000.00
Magazine basket 24 ₹ 1,000 ₹ 24,000.00
Dressing table with
24 ₹ 10,000 ₹ 2,40,000.00
mirror
Night Stand 24 ₹ 2,500 ₹ 60,000.00
Total ₹ 19,56,000.00

ANNEXURE 4-B
DOUBLE ROOM: 26
Bed cot 26 ₹ 20,000 ₹ 5,20,000.00
Mini bar (30L) 26 ₹ 8,000 ₹ 2,08,000.00
Coffee table 26 ₹ 6,500 ₹ 1,69,000.00
Ward robe 26 ₹ 12,000 ₹ 3,12,000.00
Luggage rack 26 ₹ 2,500 ₹ 65,000.00
Wall-mounted Television
26 ₹ 16,000 ₹ 4,16,000.00
(32")
Carpets 26 ₹ 3,500 ₹ 91,000.00
Double Couch 26 ₹ 15,000 ₹ 3,90,000.00
Magazine basket 26 ₹ 1,000 ₹ 26,000.00
Dressing table with
26 ₹ 10,000 ₹ 2,60,000.00
mirror
Night Stand 52 ₹ 2,500 ₹ 1,30,000.00
Total ₹ 25,87,000.00
ANNEXURE 4-C
SUITE ROOM: 10
Bed cot 10 ₹ 26,000 ₹ 2,60,000.00
Mini bar (50L) 10 ₹ 12,000 ₹ 1,20,000.00
Coffee table 10 ₹ 7,500 ₹ 75,000.00
Ward robe 10 ₹ 12,000 ₹ 1,20,000.00
Luggage rack 10 ₹ 2,500 ₹ 25,000.00
Wall-mounted Smart TV
10 ₹ 30,000 ₹ 3,00,000.00
(50")
Carpets 20 ₹ 3,500 ₹ 70,000.00
Full Couch 10 ₹ 20,000 ₹ 2,00,000.00
Magazine basket 10 ₹ 1,200 ₹ 12,000.00
Dressing table with
10 ₹ 12,000 ₹ 1,20,000.00
mirror
Kettle 10 ₹ 2,000 ₹ 20,000.00
Night Stand 20 ₹ 3,000 ₹ 60,000.00
Total ₹ 13,82,000.00

ANNEXURE 4-D
COFFEE SHOP: 58 Pax
Table 6-seater 5 ₹ 9,000.00 ₹ 45,000.00
Table 4-seater 5 ₹ 6,000.00 ₹ 30,000.00
Table 2-seater 4 ₹ 3,500.00 ₹ 14,000.00
Chairs 50 ₹ 2,200.00 ₹ 1,10,000.00
Side station 2 ₹ 6,800.00 ₹ 13,600.00
Counter 2 ₹ 18,000.00 ₹ 36,000.00
1 ₹ 16,000 ₹ 16,000.00
(32")
Computer with bill
1 ₹ 12,500 ₹ 12,500.00
printer
Coffee machine 1 ₹ 18,000 ₹ 18,000.00
Wall fitted couch 2 ₹ 22,500.00 ₹ 45,000.00
Total ₹ 3,40,100.00
ANNEXURE 4-E
BAR: 28 Pax
Table 4-seater 2 ₹ 5,500.00 ₹ 11,000.00
Table 2-seater 2 ₹ 3,000.00 ₹ 6,000.00
Chairs 15 ₹ 2,200.00 ₹ 33,000.00
1 ₹ 16,000 ₹ 16,000.00
(32")
Computer with bill printer 1 ₹ 12,500 ₹ 12,500.00
Bar stools 10 ₹ 3,500.00 ₹ 35,000.00
Bar Counter 1 ₹ 30,000.00 ₹ 30,000.00
Total ₹ 1,43,500.00

ANNEXURE 4-F
Oriental restaurant: 40 Pax
Table 6-seater 2 ₹ 12,000.00 ₹ 24,000.00
Table 4-seater 5 ₹ 8,000.00 ₹ 40,000.00
Table 2-seater 4 ₹ 4,000.00 ₹ 16,000.00
Chairs 44 ₹ 2,500.00 ₹ 1,10,000.00
Computer with bill
1 ₹ 12,500 ₹ 12,500.00
printer
Side station 2 ₹ 6,800.00 ₹ 13,600.00
Music System 1 ₹ 80,000 ₹ 80,000.00
Total ₹ 2,96,100.00
ANNEXURE 4-G
In-Room Dining
Trollies 6 ₹ 7,000.00 ₹ 42,000.00
Hot Case 10 ₹ 1,600.00 ₹ 16,000.00
Desk 1 ₹ 5,500.00 ₹ 5,500.00
Chairs 1 ₹ 1,600.00 ₹ 1,600.00
Computer with bill printer 1 ₹ 12,500 ₹ 12,500.00
Tray rack 2 ₹ 9,000.00 ₹ 18,000.00
Coffee machine 1 ₹ 18,000 ₹ 18,000.00
Total ₹ 1,13,600.00
ANNEXURE 4-H
BANQUETS: 400 Pax
Round Table (10-seater) 30 ₹ 5,800.00 ₹ 1,74,000.00
Rectangular table (6x2 ft) 40 ₹ 4,000.00 ₹ 1,60,000.00
Chairs 500 ₹ 750.00 ₹ 3,75,000.00
Total ₹ 7,09,000.00

ANNEXURE 4-I
ADMINISTRATIVE OFFICE
Work Table 15 ₹ 4,500.00 ₹ 67,500.00
File Shelves 8 ₹ 7,000.00 ₹ 56,000.00
Computer 8 ₹ 11,000.00 ₹ 88,000.00
Chairs 20 ₹ 1,700.00 ₹ 34,000.00
Total ₹ 2,45,500.00
ANNEXURE 4-J
FRONT OFFICE & BUSSINESS CENTRE
Front office and lobby
Status board 1 ₹ 4,500.00 ₹ 4,500.00
Shelf 3 ₹ 4,000.00 ₹ 12,000.00
Full couch 2 ₹ 18,500.00 ₹ 37,000.00
Chairs 9 ₹ 2,200.00 ₹ 19,800.00
Storage cabinet 3 ₹ 5,000.00 ₹ 15,000.00
Reception Counter 2 ₹ 13,500.00 ₹ 27,000.00
Safety locker 20 ₹ 4,500.00 ₹ 90,000.00
Coffee table 2 ₹ 7,500.00 ₹ 15,000.00
Computer with bill
2 ₹ 12,500 ₹ 25,000.00
printer
Work Desk with chair 1 ₹ 7,200.00 ₹ 7,200.00
Business centre
Computer Table 3 ₹ 4,000.00 ₹ 12,000.00
Computer 3 ₹ 11,000.00 ₹ 33,000.00
Printer 1 ₹ 7,500.00 ₹ 7,500.00
Chairs 3 ₹ 2,000.00 ₹ 6,000.00
Misc. & decor ₹ 75,000.00 ₹ 75,000.00
Total ₹ 3,86,000.00

ANNEXURE 4-K
HEALTH CLUB
Double couch 2 ₹ 14,000.00 ₹ 28,000.00
Lockers 10 ₹ 5,500.00 ₹ 55,000.00
Chairs 10 ₹ 1,400.00 ₹ 14,000.00
Mutli gym equipment ₹ 150,000.00 ₹ 1,50,000.00
Washrooms 2 ₹ 175,000 ₹ 3,50,000.00
Total ₹ 5,97,000.00
ANNEXURE 4-L
STAFF CAFETERIA & LOCKER ROOM
Staff Cafeteria
Chairs 80 ₹ 1,000 ₹ 80,000.00
Table 10 ₹ 3,600 ₹ 36,000.00
Counter 1 ₹ 8,500 ₹ 8,500.00
Locker room
Lockers (9) 10 ₹ 12,000 ₹ 1,20,000.00
W/C 4 ₹ 4,000 ₹ 16,000.00
Basins and mirrors 3 ₹ 5,500 ₹ 16,500.00
Bench 4 ₹ 2,000 ₹ 8,000.00
Total ₹ 2,85,000.00

ANNEXURE 5
TOTAL MISCELLANEOUS ASSETS
S.No. Particulars INR (in lakhs)
1 Single Room 7.66
2 Double Room 12.30
3 Suite Room 7.52
4 Coffee Shop 3.62
5 Bar 1.12
6 Oriental Restaurant 2.89
7 Banquet Hall 12.81
Total 47.93
ANNEXURE 5-A
SINGLE ROOM: 24
Bed sheet (240 TC) 48 ₹ 300 ₹ 14,400.00
Bed cover (300 TC) 24 ₹ 550 ₹ 13,200.00
Pillow 48 ₹ 150 ₹ 7,200.00
Pillow cover (144 TC) 48 ₹ 150 ₹ 7,200.00
Duvet 24 ₹ 1,000 ₹ 24,000.00
Duvet cover 24 ₹ 700 ₹ 16,800.00
Hand towel 48 ₹ 100 ₹ 4,800.00
Bath towel 24 ₹ 300 ₹ 7,200.00
Face towel 48 ₹ 80 ₹ 3,840.00
Bath mat 48 ₹ 150 ₹ 7,200.00
Mattress protector 24 ₹ 900 ₹ 21,600.00
Total (A) ₹ 1,27,440.00
Par Stock (Ax3) ₹ 3,82,320.00
Mattress 48 ₹ 8,000 ₹ 3,84,000.00
Final Total ₹ 7,66,320.00

ANNEXURE 5-B
DOUBLE ROOM: 26
Bed sheet (240 TC) 52 ₹ 450 ₹ 23,400.00
Bed cover (300 TC) 26 ₹ 700 ₹ 18,200.00
Pillow 104 ₹ 150 ₹ 15,600.00
Pillow cover (144 TC) 104 ₹ 150 ₹ 15,600.00
Duvet 26 ₹ 1,250 ₹ 32,500.00
Duvet cover 26 ₹ 900 ₹ 23,400.00
Hand towel 52 ₹ 100 ₹ 5,200.00
Bath towel 52 ₹ 300 ₹ 15,600.00
Face towel 104 ₹ 80 ₹ 8,320.00
Bath mat 52 ₹ 150 ₹ 7,800.00
Mattress protector 26 ₹ 1,400 ₹ 36,400.00
Total (B) ₹ 2,02,020.00
Par Stock (Bx3) ₹ 6,06,060.00
Mattress 52 ₹ 12,000 ₹ 6,24,000.00
Final Total ₹ 12,30,060.00
ANNEXURE 5-C
SUITE ROOM: 10
Bed sheet (300 TC) 20 ₹ 800 ₹ 16,000.00
Bed cover (500 TC) 10 ₹ 1,500 ₹ 15,000.00
Pillow 50 ₹ 240 ₹ 12,000.00
Pillow cover (300 TC) 50 ₹ 300 ₹ 15,000.00
Duvet 10 ₹ 2,000 ₹ 20,000.00
Duvet cover 10 ₹ 1,200 ₹ 12,000.00

Hand towel 30 ₹ 150 ₹ 4,500.00
Bath towel 20 ₹ 400 ₹ 8,000.00
Face towel 40 ₹ 150 ₹ 6,000.00
Bath mat 20 ₹ 280 ₹ 5,600.00
Mattress protector 10 ₹ 2,000 ₹ 20,000.00
Total (C) ₹ 1,34,100.00
Par Stock (Cx3) ₹ 4,02,300.00
Mattress 20 ₹ 17,500 ₹ 3,50,000.00
Final Total ₹ 7,52,300.00
ANNEXURE 5-D
COFFEE SHOP: 58 Pax
Table cloth (6-seater) 15 ₹ 800.00 ₹ 12,000.00
Napkin 174 ₹ 125.00 ₹ 21,750.00
Full plate 174 ₹ 150.00 ₹ 26,100.00
Half plate 174 ₹ 100.00 ₹ 17,400.00
Quarter plate 174 ₹ 80.00 ₹ 13,920.00
AP Spoon 116 ₹ 80.00 ₹ 9,280.00
AP Fork 116 ₹ 80.00 ₹ 9,280.00
AP Knife 116 ₹ 80.00 ₹ 9,280.00
Fish fork 116 ₹ 100.00 ₹ 11,600.00
Fish knife 116 ₹ 100.00 ₹ 11,600.00
Dessert spoon 116 ₹ 75.00 ₹ 8,700.00
Dessert fork 116 ₹ 75.00 ₹ 8,700.00
Ice bucket (5L) 28 ₹ 450.00 ₹ 12,600.00

Ice Tong 28 ₹ 100.00 ₹ 2,800.00

Service Spoon 174 ₹ 200.00 ₹ 34,800.00
Service bowls and
70 ₹ 550.00 ₹ 38,500.00
platter
Salver 14 ₹ 900.00 ₹ 12,600.00
Glasses 174 ₹ 200.00 ₹ 34,800.00
Bud Vase 28 ₹ 250.00 ₹ 7,000.00
Cruet set 28 ₹ 250.00 ₹ 7,000.00
Soup bowl 116 ₹ 200.00 ₹ 23,200.00
Cups 116 ₹ 100.00 ₹ 11,600.00
Total ₹ 3,62,260.00
ANNEXURE 5-E
BAR: 28 Pax
Napkin 84 ₹ 150.00 ₹ 12,600.00
Half plate 84 ₹ 100.00 ₹ 8,400.00
AP Spoon 56 ₹ 100.00 ₹ 5,600.00
Ice bucket (8L) 10 ₹ 800.00 ₹ 8,000.00
Ice Tong 10 ₹ 125.00 ₹ 1,250.00
Salver 5 ₹ 900.00 ₹ 4,500.00
Glasses 84 ₹ 850.00 ₹ 71,400.00
Total ₹ 1,11,750.00
ANNEXURE 5-F
Oriental restaurant: 40 Pax
Table cloth (6-seater) 6 ₹ 1,000.00 ₹ 6,000.00
Napkin 120 ₹ 150.00 ₹ 18,000.00
Full plate 120 ₹ 200.00 ₹ 24,000.00

Half plate 120 ₹ 175.00 ₹ 21,000.00

Quarter plate 120 ₹ 125.00 ₹ 15,000.00
AP Spoon 80 ₹ 100.00 ₹ 8,000.00
AP Fork 80 ₹ 100.00 ₹ 8,000.00
AP Knife 80 ₹ 100.00 ₹ 8,000.00
Chopsticks 80 ₹ 160.00 ₹ 12,800.00
Chopstick holder 80 ₹ 100.00 ₹ 8,000.00
Dessert spoon 80 ₹ 100.00 ₹ 8,000.00
Dessert fork 80 ₹ 100.00 ₹ 8,000.00
Ice bucket (5L) 10 ₹ 450.00 ₹ 4,500.00
Ice Tong 10 ₹ 100.00 ₹ 1,000.00
Service Spoon 120 ₹ 200.00 ₹ 24,000.00
Service bowls and platter 55 ₹ 550.00 ₹ 30,250.00
Salver 10 ₹ 900.00 ₹ 9,000.00
Glasses 120 ₹ 200.00 ₹ 24,000.00
Bud Vase 22 ₹ 250.00 ₹ 5,500.00
Chinese cruet set 22 ₹ 550.00 ₹ 12,100.00
Soup bowl 80 ₹ 200.00 ₹ 16,000.00
Total ₹ 2,89,000.00
ANNEXURE 5-G
BANQUETS: 400 PAX
Table cloth (Round) 90 ₹ 600.00 ₹ 54,000.00
Table cloth (rectangular) 120 ₹ 450.00 ₹ 54,000.00
Napkin 1200 ₹ 100.00 ₹ 1,20,000.00
Full plate 1200 ₹ 150.00 ₹ 1,80,000.00
Half plate 1200 ₹ 100.00 ₹ 1,20,000.00
Quarter plate 1200 ₹ 80.00 ₹ 96,000.00
AP Spoon 800 ₹ 80.00 ₹ 64,000.00

AP Fork 800 ₹ 80.00 ₹ 64,000.00
AP Knife 800 ₹ 80.00 ₹ 64,000.00
Salver 100 ₹ 750.00 ₹ 75,000.00
Glasses 1200 ₹ 150.00 ₹ 1,80,000.00
Bud Vase 100 ₹ 250.00 ₹ 25,000.00
Cruet set 100 ₹ 250.00 ₹ 25,000.00
Soup bowl 800 ₹ 200.00 ₹ 160,000.00
Total ₹ 12,81,000.00
ANNEXURE 6
MARGIN OF CONTENGENCY
Particular Rs.
Total cost of land ₹ 1,87,50,000.00
Total cost of building ₹ 8,50,93,400.00
Plant and machinery ₹ 1,49,78,000.00
Furniture & fixture ₹ 90,40,800.00
Miscellaneous ₹ 47,92,690.00
Total ₹ 13,26,54,890.00
Margin of contingency ₹ 1,32,65,489.00
ANNEXURE 7
SALARY AND WAGES
Employee’s
No. Salary Total
designation
General manager 1 ₹ 1,00,000.00 ₹ 1,00,000.00
Secretary 1 ₹ 25,000.00 ₹ 25,000.00
FRONT OFFICE
Front office manager 1 ₹ 60,000.00 ₹ 60,000.00
Duty manager 3 ₹ 30,000.00 ₹ 90,000.00
Cashier 1 ₹ 17,000.00 ₹ 17,000.00

Bell boys 4 ₹ 8,500.00 ₹ 34,000.00

Front office associate 3 ₹ 10,000.00 ₹ 30,000.00
Telephone operator 1 ₹ 10,000.00 ₹ 10,000.00
HOUSEKEEPING
Executive
1 ₹ 60,000.00 ₹ 60,000.00
housekeeper
Housekeeping
2 ₹ 20,000.00 ₹ 40,000.00
supervisor
Housekeeping
10 ₹ 12,000.00 ₹ 1,20,000.00
attendants
PRODUCTION
Executive chef 1 ₹ 80,000.00 ₹ 80,000.00
Sous chef 1 ₹ 30,000.00 ₹ 30,000.00
Chef de partie 2 ₹ 17,500.00 ₹ 35,000.00
Commis 6 ₹ 10,000.00 ₹ 60,000.00
SERVICE
F&B manager 1 ₹ 60,000.00 ₹ 60,000.00
Outlet manager 3 ₹ 30,000.00 ₹ 90,000.00
Banquet manager 1 ₹ 30,000.00 ₹ 30,000.00
Captain 3 ₹ 20,000.00 ₹ 60,000.00
Stewards 8 ₹ 10,000.00 ₹ 80,000.00
KITCHEN STEWARDING
Supervisor 1 ₹ 15,000.00 ₹ 15,000.00
Stewards 4 ₹ 8,500.00 ₹ 34,000.00
ENGINEERING & MAINTENANCE
Chief engineer 1 ₹ 50,000.00 ₹ 50,000.00
Technicians 3 ₹ 12,500.00 ₹ 37,500.00
ACCOUNTS
Account’s manager 1 ₹ 55,000.00 ₹ 55,000.00
Clerks 1 ₹ 20,000.00 ₹ 20,000.00
Associate 2 ₹ 12,500.00 ₹ 25,000.00
SALES & MARKETING
Director of Sales 1 ₹ 60,000.00 ₹ 60,000.00
Sales Manager 1 ₹ 30,000.00 ₹ 30,000.00
Executive 2 ₹ 15,000.00 ₹ 30,000.00
PURCHASE
Manager 1 ₹ 50,000.00 ₹ 50,000.00
Assistant 2 ₹ 12,000.00 ₹ 24,000.00

SECURITY
Head security Officer 1 ₹ 25,000.00 ₹ 25,000.00
Doorman 2 ₹ 9,000.00 ₹ 18,000.00
Security guard 4 ₹ 10,000.00 ₹ 40,000.00
Total 81 ₹ 16,24,500.00
SALARIES FOR 3 MONTHS ₹ 48,73,500.00
SALARIES FOR 12 MONTHS ₹ 1,94,94,000.00
ANNEXURE 8
PRELIMINARY AND PREOPERATIVE EXPENSES
Particular In INR
Salaries & wages for 3 months ₹ 48,73,500.00
Loan processing cost ₹ 2,50,000.00
Project report file ₹ 80,000.00
Registration and establishment fee ₹ 2,00,000.00
Insurance ₹ 38,18,927.00
Advertisement & publicity ₹ 1,50,000.00
Telephone ₹ 2,00,000.00
Electricity ₹ 2,00,000.00
Water supply ₹ 3,00,000.00
Margin of working capital ₹ 6,58,482.00
Miscellaneous ₹ 1,25,000.00
Total ₹ 1,08,55,909.00
ANNEXURE 9
ROOMS
Single
₹ 94,50,000.00 ₹ 1,90,08,000.00 ₹ 2,59,20,000.00 ₹ 3,32,64,000.00 ₹ 4,49,28,000.00
rooms
Double
₹ 1,31,62,500.00 ₹ 2,51,68,000.00 ₹ 3,36,96,000.00 ₹ 4,58,64,000.00 ₹ 5,61,60,000.00
rooms
Suite
₹ 67,50,000.00 ₹ 1,32,00,000.00 ₹ 1,83,60,000.00 ₹ 2,52,00,000.00 ₹ 3,31,20,000.00
rooms
Total ₹ 2,93,62,500.00 ₹ 5,73,76,000.00 ₹ 7,79,76,000.00 ₹ 10,43,28,000.00 ₹ 13,42,08,000.00
F&B OUTLETS
Coffee
₹ 25,00,000.00 ₹ 76,80,000.00 ₹ 1,40,40,000.00 ₹ 2,70,00,000.00 ₹ 4,86,00,000.00
shop
Oriental
₹ 17,50,000.00 ₹ 69,12,000.00 ₹ 1,80,00,000.00 ₹ 3,02,40,000.00 ₹ 4,43,70,000.00
Restaurant

Bar ₹ 6,87,500.00 ₹ 17,60,000.00 ₹ 64,80,000.00 ₹ 1,35,00,000.00 ₹ 1,83,60,000.00

Banquets ₹ 62,50,000.00 ₹ 1,92,00,000.00 ₹ 5,85,00,000.00 ₹ 8,64,00,000.00 ₹ 14,40,00,000.00
In- Room
₹ 13,50,000.00 ₹ 26,40,000.00 ₹ 45,36,000.00 ₹ 52,92,000.00 ₹ 73,44,000.00
Dining
Total ₹ 1,25,37,500.00 ₹ 3,81,92,000.00 ₹ 10,15,56,000.00 ₹ 16,24,32,000.00 ₹ 26,26,74,000.00
Grand
₹ 4,19,00,000.00 ₹ 9,55,68,000.00 ₹ 17,95,32,000.00 ₹ 26,67,60,000.00 ₹ 39,68,82,000.00
Total
ANNEXURE 9-A
SINGLE ROOMS: 24
Year Room Tariff Occupancy % No. Of room sold No. of days Total
1st year ₹ 3,500.00 45% 11 250 ₹ 94,50,000.00
2nd year ₹ 4,500.00 55% 13 320 ₹ 1,90,08,000.00
3rd year ₹ 5,000.00 60% 14 360 ₹ 2,59,20,000.00
4th year ₹ 5,500.00 70% 17 360 ₹ 3,32,64,000.00
5th year ₹ 6,500.00 80% 19 360 ₹ 4,49,28,000.00
ANNEXURE 9-B
DOUBLE ROOMS: 26
No. Of
Year Room Tariff Occupancy % No. of days Total
room sold
1st year ₹ 4,500.00 45% 12 250 ₹ 1,31,62,500.00
2nd year ₹ 5,500.00 55% 14 320 ₹ 2,51,68,000.00
3rd year ₹ 6,000.00 60% 16 360 ₹ 3,36,96,000.00
4th year ₹ 7,000.00 70% 18 360 ₹ 4,58,64,000.00
5th year ₹ 7,500.00 80% 21 360 ₹ 5,61,60,000.00
ANNEXURE 9-C
SUITE ROOMS: 10
Year Room Tariff Occupancy % No. Of room sold No. of days Total
1st year ₹ 6,000.00 45% 5 250 ₹ 67,50,000.00
2nd year ₹ 7,500.00 55% 6 320 ₹ 1,32,00,000.00
3rd year ₹ 8,500.00 60% 6 360 ₹ 1,83,60,000.00
4th year ₹ 10,000.00 70% 7 360 ₹ 2,52,00,000.00
5th year ₹ 11,500.00 80% 8 360 ₹ 3,31,20,000.00

ANNEXURE 9-D
COFFEE SHOP: 58 Pax
Year APC No. Of cover No. of days Total
1st year ₹ 500.00 20 250 ₹ 25,00,000.00
2nd year ₹ 600.00 40 320 ₹ 76,80,000.00
3rd year ₹ 650.00 60 360 ₹ 1,40,40,000.00
4th year ₹ 750.00 100 360 ₹ 2,70,00,000.00
5th year ₹ 900.00 150 360 ₹ 4,86,00,000.00
ANNEXURE 9-E
ORIENTAL RESTAURANT: 40 Pax
1st year ₹ 700.00 10 250 ₹ 17,50,000.00
2nd year ₹ 800.00 27 320 ₹ 69,12,000.00
3rd year ₹ 1,000.00 50 360 ₹ 1,80,00,000.00
4th year ₹ 1,200.00 70 360 ₹ 3,02,40,000.00
5th year ₹ 1,450.00 85 360 ₹ 4,43,70,000.00
ANNEXURE 9-F
BAR: 28 Pax
1st year ₹ 550.00 5 250 ₹ 6,87,500.00
2nd year ₹ 550.00 10 320 ₹ 17,60,000.00
3rd year ₹ 600.00 30 360 ₹ 64,80,000.00
4th year ₹ 750.00 50 360 ₹ 1,35,00,000.00
5th year ₹ 850.00 60 360 ₹ 1,83,60,000.00
ANNEXURE 9-G
BANQUET: 400 Pax
1st year ₹ 500.00 50 250 ₹ 62,50,000.00
2nd year ₹ 600.00 100 320 ₹ 1,92,00,000.00
3rd year ₹ 650.00 250 360 ₹ 5,85,00,000.00
4th year ₹ 800.00 300 360 ₹ 8,64,00,000.00
5th year ₹ 1,000.00 400 360 ₹ 14,40,00,000.00

ANNEXURE 9-H
IN-ROOM DINING
Avg. Avg. spent No. of
Year
Occupancy % Avg. Room per room days Total
st
1 year 45% 27 200 250 ₹ 13,50,000.00
2nd year 55% 33 250 320 ₹ 26,40,000.00
3rd year 60% 36 350 360 ₹ 45,36,000.00
4th year 70% 42 350 360 ₹ 52,92,000.00
5th year 80% 48 425 360 ₹ 73,44,000.00
ANNEXURE-10
INTEREST ON TERM LOAN
Loan from: HDFC Bank @13.00%
Year Loan Balance Installment Interest
1 ₹ 11,32,94,862 ₹ 2,26,58,972 ₹ 1,47,28,332
2 ₹ 9,06,35,889 ₹ 2,26,58,972 ₹ 1,17,82,666
3 ₹ 6,79,76,917 ₹ 2,26,58,972 ₹ 88,36,999
4 ₹ 4,53,17,945 ₹ 2,26,58,972 ₹ 58,91,333
5 ₹ 2,26,58,972 ₹ 2,26,58,972 ₹ 29,45,666
ANNEXURE-11
INTEREST ON WORKING CAPITAL
Loan from: HDFC Bank 15.00%
Year Amount Interest
1 ₹ 6,61,715.00 ₹ 99,257.00
2 ₹ 15,88,147.00 ₹ 2,38,222.00
3 ₹ 32,28,467.00 ₹ 4,84,270.00
4 ₹ 48,91,858.00 ₹ 7,33,779.00
5 ₹ 74,50,724.00 ₹ 11,17,609.00
Interest during implementation period
= [Term loan x (rate of interest / 2) x (period of implementation / 2)] / 100
= [113294862X (13 / 2) X (5 / 2)] / 100
= Rs 18410415.00

Information about Hotel
This upscale hotel, set in a streamlined,

modern building, is a minute's walk from
a bus stop, 5 km from Aga Khan Palace
and 7 km from Pune Golf Course.
The sophisticated rooms and suites, with
contemporary decor and warm tones,
feature free Wi-Fi, flat-screen TVs,
minibars and feather soft beds.
info@shiningstarhotels.com
Room service is available 24/7.
Valet parking is free, as is a breakfast
buffet, served in a casual restaurant.
There's an amazing authentic oriental
outlet, and a swanky bar. Amenities
include a spa, an exercise room and an
outdoor pool.
Check-in time: 14:00

Check-out time: 12:00
BIBLOGRAPHY & REFERENCES
1. Hospitality Industry (Last edited on 31 July. 2021)

<https://en.wikipedia.org/wiki/Hospitality_industry>
2. Indian tourism and hospitality industry report (June 2021 edition)
<https://www.ibef.org/industry/tourism-hospitality-india.aspx>
3. City of Pune (Last edited on 4 August. 2021)
<https://en.wikipedia.org/wiki/Pune>
4. Places to visit in Pune (Updated July 2021)
<http://www.transindiatravels.com/maharashtra/pune/tourist-places-to-visit-in-
pune/>
5. Hotels for Market Survey (Updated July 2021)
<https://www.google.com/search?q=4+star+hotels+in+kharadi&sxsrf=ALeKk0
2y61YsaLNkSDzQjfxyEW6LvCP-
Ww%3A1629018720867&ei=YNoYYea0NJKK4-
EPrfGxoAs&oq=4+star+hotels+in+kharadi&gs>
6. Size of rooms (Updated 5 March 2020)
<https://askinglot.com/what-is-the-average-size-of-a-hotel-room>
7. Tax rate (Updated 30 June 2021)
<https://www.incometaxindia.gov.in/pages/charts-and-tables.aspx>
8. Cost of Land (As on 10 July 2021)
<https://property.sulekha.com/plots-land-for-sale/kharadi-pune>
9. Cost of Civil work (As on 9 July 2021)
<https://property.todaypricerates.com/construction-cost-in-Pune>
10. Cost of Machinery, Equipment, furniture & fixtures (In July 2021)

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MARKETING FEASIBILITY AND FINANCIAL VIABILITY PROJECT

MARKET FEASIBILITY AND FINANCIAL

Programme in Bangalore University

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING

(Affiliated to Bangalore University& Approved by AICTE)

NAGARESHWARA NAGENAHALLI, KOTHANUR P.O.,

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 1

This is to certify that Mr. Achintiya Dhar of VIII Semester of Bachelor of

(Prof. SUDHA TIWARI) (Mr. P.SEN THAMIZHAN)

Accounting & Management

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 2

I take this opportunity to thank my marketing faculty Mrs. Sudha

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 3

I hereby declare that this project report entitled “Market

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 4

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 5

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 6

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 7

HOTEL INDUSTRY AND TOURISM

1. Well furnished rooms and suites.

Hotels may have all or some of the under mentioned facilities:

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 8

DIFFERNT KINDS OF TOURISM

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 9

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 10

ROLE OF HOTEL IN TOURISM

ECONOMY AND TOURISM

THE ECOLOGICAL & CULTURAL EFFECT OF INTERNATIONAL

The Ecological Effect

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 11

Social Cultural Effects

1. The preservation/restoration of historic building and sites.

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 12

THE SCOPE OF TOURISM

A LOOK INTO THE FUTURE

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 13

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 14

Details and relevant data pertaining to the study is obtained through,

1. Necessary data were obtained from magazines, published journals,

• Study is limited to the market conditions of Pune only.

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 15

PROFILE OF THE PLACE

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 16

INFORMATION ABOUT PUNE

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 17

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 18

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 19

TOURIST ATTRACTION IN PUNE

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 20

SHANIWAR WADA PALACE:

RAJA DINKAR KELKAR MUSEUM:

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 21

NATIONAL DEFENCE ACADEMY:

PUNE-OKAYAMA FRIENDSHIP GARDEN:

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 22

RAJIV GANDHI ZOOLOGICAL PARK:

MULSHI LAKE AND DAM:

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 23

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 24

The following factors influence for a hospitality product at a particular place:

Hotels for Market Survey:

1. Royal Orchid Hotel

Name of Hotel No. of Rooms Occupancy

ARMY INSTITUTE OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY, BANGALORE Page 25

MF&FV

MF&FV