A Feasibility Report on Establishing a Boutique Hotel

An Assignment
submitted in partial fulfilment
of the course requirements for the EMBA course of
Business Communication

submitted to
XXXXXX

by

Group 2
Student Id Student Name Signature

XXXYYY XXXXX

XXXYYY XXXXX

Department of Tourism and Hospitality Management

University of Dhaka
22 December 2023
 A Feasibility Report on Establishing a Boutique Hotel

Executive Summary

In order to cater to the growing demand of quality tourism/leisure activities in Bangladesh, the
promoter ABC Group of Company Limited has planned to develop a sophisticated and economically
practical Sonpara Boutique Hotel at Rupganj. Boutique Hotel location consisting with natural
environment of calm and peaceful space, strictly keeps international standard in its design. A discrete
location surrounded by forest is one of its unique delights.

The management team will consist of highly experienced business and tourism professionals who will
be dedicated for quality services and future growth of the company. This will be an international
standard resort project of the Company. The project has been designed for supplying general as well
as specialized resort services to local and international communities.

2
 Table of Contents

1.0 Introduction..........................................................................................................................1
2.0 What is Boutique hotel.........................................................................................................1
2.1 History of Boutique hotel.............................................................................................................1
2.2 Description of Boutique................................................................................................................1
3 Project Highlight..............................................................................................................................2
4. Project Costing...............................................................................................................................3
5. Project Technical Overview............................................................................................................3
5.1 Rooms & Suites.............................................................................................................................5
5.2 Fitness and wellbeing Centre....................................................................................................6
5.3 Swimming Pool, Restaurant......................................................................................................6
5.4 Other Facilities in Boutique Hotel.............................................................................................7
5.4.1 Travel Desk................................................................................................................................7
5.4.2 Business Centre.........................................................................................................................7
5.4.3 Currency Exchange Facility........................................................................................................7
6. Financial Highlights of the proposed ventures...............................................................................8
7 Conclusion.......................................................................................................................................9

3
1.0 Introduction
In this assignment, we will explore the exciting world of boutique hotels and delve into the steps
involved in establishing one. A boutique hotel is more than just a place to stay; it offers a unique and
personalized experience that sets it apart from traditional accommodations. Throughout this
assignment, we will uncover the key elements necessary for creating a successful boutique hotel,
from concept development to marketing strategies. By the end of this assignment, you will have a
comprehensive understanding of what it takes to establish a boutique hotel that leaves guests
yearning for more. So, let's dive in and explore the fascinating journey of bringing a boutique hotel to
life.

2.0 What is Boutique hotel

Boutique hotels are small-capacity hotels that provide more personalized service than typical hotels.
They typically have fewer than a hundred rooms and are considered more "trendy" and "intimate",
often due to their location in urban areas. They may be themed, such as by having a focus on nature,
environment, cuisine, history, community and cultural immersion, attentive service, or well-being.

2.1 History of Boutique hotel

Boutique hotels first began appearing in the 1980s in major cities such as London, New York, and San
Francisco. There is debate about who started the boutique hotel concept. Blakes Hotel in South
Kensington, London, designed by Anouska Hempel, and the Bedford in Union Square, San Francisco,
both founded in 1981, may have started the trend. Morgans Hotel, founded in 1984 by Steve Rubell
and Ian Schrager, is regarded by some as the real start.

The term "boutique hotel" was coined by Steve Rubell, who compared Morgans Hotel to a boutique
as opposed to a department store, to which chain hotels were compared.

In recent times, boutique hotels have grown in popularity, corresponding with the general public's
increased interest in individualized service. Many hotel chains have begun to focus on creating
subsidiary hotels to establish smaller, boutique-style hotels, or in acquiring previously independent
boutique hotels.

2.2 Description of Boutique

Boutique hotels are typically furnished in a themed, stylish, and/or aspirational manner with
distinctive concepts. These concepts often reflect the local culture and neighbourhoods in which the
hotels reside. Typically, these hotels are designed to have a more "intimate" feel than many larger
hotel chains.
1
Boutique hotels are commonly found in the city Dhaka, Gazipur, Purbacahal, Sylhet, Cox’s Bazaar,
Khulna. They are also found in resort destinations and may be furnished with amenities such as
Water rides, amusement park, and painting classes.

3 Project Highlight
Despite challenges posed by recent global slowdown, economic fundamentals of Bangladesh remain
quite strong. Economic growth momentum in fiscal year 2018 was underpinned by strong domestic &
external demand as reflected in buoyant public and private investment, and consumption, driven by
consistent rising exports, remittances, and private credit growth relative to last 05 years. A
remarkable impetus of economic stability of our country has been driven by the positive movement
of Boutique hotels, Hotel & Tourism, & other sectors.

To cater to the growing demand of quality tourism/leisure activities in Bangladesh, the promoter ABC
Group of Company Limited has planned to develop a sophisticated and economically viable Sonpara
Boutique Hotel at Rupganj with a fixed project cost of BDT 10 Crore. The project address is located
Sonpara Road, Rupganj, Bangladesh which is about 35 Km from Zero (0) point of Dhaka and takes
approximately 1 and half hour’s drive from Dhaka on highway. The Boutique Hotel location consisting
with natural environment of calm and peaceful space, strictly maintains international standard in its
design. A discrete location surrounded by forest is one of its unique delights.

A. Resort room facilities

Cottage/Villa Category No of Cottage/ No of No of Cottage/

Villas at Phase -1 Cottage/ Villas Villas at after
at Phase -2 full completion
Deluxe pool view 5 3 8
Superior View room 5 3 8
Single Bedroom 7 5 12
Double Bedroom 7 5 12
Deluxe pool view 5 3 8
Total 24 16 40

All the rooms will be designed with modern quality touch and latest possible amenities targeted to
business corporate and leisure market and the property also features a restaurant swimming pools,
baby playing zoon, water boat riding, fitness centre, 24 hours room service, and game room. Meeting
facilities include flexible meeting space & Small private meeting room. Additional, facilities include
laundry service.

2
4. Project Costing
The total fixed cost of the project overall estimated at BDT 10 Crore. The detailed break-up of the
total cost of the project is provided as follows:

Summary Total Cost Equity Debt

Land 35557575 35557575 0
Building & Civil Construction 32567630 3567630 29000000
Amusement Park & Water Rides 12000000 3000000 9000000
equipment
Transport 700000 200000 500000
Furniture & Fixtures 20000000 1000000 19000000

Total Fixed cost of the project 100825205 43,325,205 57500000

Project Debt-Equity ratio 100 43% 57%

5. Project Technical Overview

Project Layout

Outdoor View

3
4
 5.1 Rooms & Suites
The Resort will be of stylish, comfortable, well-furnished, and air-conditioned rooms with
contemporary luxury and gracious service.

Deluxe pool view

Superior View room

Deluxe pool view

5.2 Fitness and wellbeing Centre

5
 Fitness centre & Health Club offers the finest cardio exercise machines, including bikes, cross-trainers
and treadmills each equipped with an 18.5-inch personal LCD display and satellite channels, so that
members can enjoy every moment they jog. Free weights and a variety of strength machines are also
available to build and condition the body. The professional trainers will be by members’ side to
ensure that members do not strain themselves too far as well as that members achieve the best to
their ability during each session.

5.3 Swimming Pool, Restaurant

A swimming pool is an important part of the resort and will be instrumental for the popularity
of the resort.
It will be one of the main bases of marketing the resort facilities. There will also a small nearby kid’s
swimming pool. There will be a juice and snack bar along with the swimming pool to add to the
service provisions.

6
5.4 Other Facilities in Boutique Hotel

5.4.1 Travel Desk

The resort will also have a Travel Desk, which will help visitors to gather information
and sketch a tour for visiting the tourist place in nearby lavish Gazipur area.

Pick up Facilities
The resort will have the provision for Pick up facility for the visitors from the suitable places.

5.4.2 Business Centre

The business centre is equipped with the latest office automation equipment to supply secretarial
services and allied services like courier services, E-mail services, Telecommunication services
and other support services.

5.4.3 Currency Exchange Facility

The hotel will also supply the currency exchange facility to overseas guests.

6. Financial Highlights of the proposed ventures

7
 Name of
the
Sonpara Boutique Hotel
proposed
project
Commenc
ement of
Projected 2024
commercia
l operation
Project
Total Fixed cost of the project: BDT 10 Crore
Cost and
Means of
Finance Equity portion: 4.33 Crore
Debt: portion: 5.75 Crore
D/E ratio: 43:57
Financial Particulars Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8
1.2 1.5 1.9 2.3 2.8 3.3
Summary 70
Turnover 85 Lakh Cror Cror Cror Cro Cro Cro
(BDT ) Lakh
e e e re re re
1.2 1.5 2.0
27 49 67 85
Gross profit 34 Lakh Cro Cro Cro
Lakh Lakh Lakh Lakh
re re re
23 27 35
9 15 18 20
Operating Cost 11 Lakh Lak Lak Lak
Lakh Lakh Lakh Lakh
h h h
18 1.2 1.6
97
Lakh 34 49 65 3 5
Net profit after tax 23 Lakh Lak
Lakh Lakh Lakh Cro Cro
h
re re
* Total Loan period: 10 years (Moratorium 02 years+ Repayment 08 years)
Dept
Y- Total Dept
revert Y-1 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8 Y-9 Y-10
2
back Revert
0.1 0.17 0.2 0.36 0.48 0.72 0.92 1.23 1.23 1.23
6.78
35 25 55 75 75 75 25 75 75 75

7 Conclusion
In conclusion, setting up a boutique hotel requires careful planning, diligence, and a deep
understanding of the hospitality industry. Throughout this assignment, we have explored the key
elements necessary for creating a successful boutique hotel, from concept development to
marketing strategies.
8
Firstly, it is important to have a clear vision and concept for the boutique hotel. This includes
identifying the target market, creating a unique brand identity, and designing a captivating ambiance
that sets it apart from traditional hotels.

Next, thorough market research and analysis are crucial for showing potential competitors,
understanding customer preferences, and determining the ideal location for the hotel. This
information will guide decisions about the amenities, services, and pricing strategies that will attract
and retain guests.

Furthermore, building strong relationships with suppliers, contractors, and other partners is essential
for ensuring the highest quality in every aspect of the hotel's operations. From the architectural
design to the interior decor, attention to detail should be prioritized to create a memorable and
immersive guest experience.

Once the physical aspects of the hotel are set up, a comprehensive marketing strategy must be
developed.

This includes creating a strong online presence through social media, search engine optimization, and
targeted advertising campaigns. Additionally, partnerships with travel agencies and online booking
platforms can help generate bookings and increase visibility.

Supplying exceptional customer service is also key to the success of a boutique hotel. This involves
training staff to expect and exceed guests' expectations, personalized touches, and attention to
detail. Building strong customer relationships and encouraging positive reviews and referrals will
contribute to the hotel’s reputation and growth.

Overall, setting up a boutique hotel requires a combination of creativity, strategic planning, and
dedication. By following the key elements uncovered in this assignment, you will be well-equipped to
create a boutique hotel that stands out in the industry and leaves guests yearning for more. Good
luck on your journey!