detailed project report on how to start a hotel in bhopal

By – Chaitany Joshi & Richa Rajoria

DETAILED PROJECT REPORT

GENERATION OF IDEAS

• There are 4 ideas of business:

• Travelling agency• Hotel• Bike showroom• Super market

HOTEL ARERA

• In this step we find the hotel as the best idea for the business because it has a wide scope and has less risk and more returns.

INITIAL SCREENING

IS THE IDEA PRIMA FACIA PROMISING?

YES.

INDUSTRY ANALYSIS

• An establishment that provides lodging and usually meals and other services for travelers and other paying guests.

CLASSIFICATION OF HOTELS AND TARGET AUDIENCE

• 1. Based on location

City center- Example: Taj Mahal, Mumbai TARGET AUDIENCE: Highway Travelers, Adventure sport

groups.MotelsTARGET AUDIENCE: families and recreational groups, low

and middle income groupsSuburban hotelsTARGET AUDIENCE: High Income Group, Business class,

Foreigners.

• Airport hotelsTARGET AUDIENCE: Frequent

Flyers.• Resort hotelsTARGET AUDIENCE:

Vacationers, tourists, health conscious audience.

• Floating hotels• TARGET AUDIENCE:

Domestic and International Tourists.

. Based on Size of Property

• Small hotel: hotel with 100 rooms and less may be termed as small hotels.

• TARGET AUDIENCE: Individual and Small Groups of wedding ceremony and other parties

• Medium sized hotel: hotel which has 100-300 rooms is known as medium sized hotel.

• TARGET AUDIENCE: Depend upon the locations and requirements.

• Large hotels: hotel which have more than 300 rooms are termed as large hotels.

• Mega hotels: are those hotels with more than 1000 rooms.

TARGET AUDIENCE: These are generally 5 star hotels and hence it is preferred by allied class and business houses

• Chain hotels: these are the group that have hotels in many number of location in India and international venues.

• TARGET AUDIENCE: Regular Guests.

. Based on the Level of Service

• Economy/ Budget hotels

• Mid market hotels• Luxury hotels: • TARGET AUDIENCE:

According to the need and paying capacity of the customers

. Based on the Length of Stay

• Transient Hotel: 1 or less than 1 day.

• Residential hotels: 2 or more than 2 days.

• Semi residential hotels combination of both

types of hotels

Based on Theme

• Heritage hotel: Noor-us-sabah

• Ecotels• Spas• Boutique hotels

1. Commercial hotel2. Convention hotels3. Resort hotels4. Suite hotels5. Casino hotels

Based on Target Market

On the basis of stars:

1. One star2. Two stars3. Three stars

4. Four stars

5. Five stars6. Seven star7. Ten star

HOTEL BUSINESS PLAN

• This system is the way you plan on running your business so that your customers will be totally satisfied with your service and want to visit your establishment again and again.

Hotel Business Plan System

• A Hotel Business Plan System is what makes a business run in an expedient manner.

The First System

• The first part of your Hotel Business Plan System should include how you will run the day to day operations of your Hotel Business.

The Second System

• The second part should include all of the equipment you will need to operate your Hotel Business.

The Third System

• Are you going to self finance it or are you going to borrow the money from your friends and family? Or are you going to use your credit cards? Are you going to obtain financing from a bank?

The Fourth System

• The fourth part of your Business System is figuring out where your Hotel Business will be located. Are you going to rent or lease a business location? Are you going to buy a building for your business?

LOCATION OF THE HOTEL

• The hotel will be located near the habibganj station in Maharana Pratap Nagar in Bhopal.

NAME OF THE HOTEL:

• HOTEL ARERA-

“EK BAR AAYENGE, TOH BAR-BAR PAYENGE”

ARERAHOTEL

CAPITAL REQUIRED

• The capital required for starting the hotel in the locality, it will be require about 1.5 to 2 crores.

• Cash in Hand – 1.5 Crores• Bank Loan – State Bank Of India• Loan Amount- 1 crore

Product & services

• Laundry service• 24 hour service• Safe deposit lockers• Cyber café• Business center• Travel desk• Foreign exchange

service

• Doctor on call• Boutique• Spa• Swimming pool• Direct dial telephone facility• Credit card accepted• Health club• Book shop• Parking at owners risk• Postal services• Car hire service

• Flowers can be organized at request

• Baby sitting• Banquets• Vegetarian• Restaurant & bar• Online booking

UNIQUE SELLING POINT OF THE HOTEL

• The unique selling preposition of the hotel is the cheapest rate and delivering of maximum product and services. The hotel will be having less prices for all services comparing to the competitors.

FINANCIAL & TECHNICAL ANALYSIS

The cash in hand with us is 1.5 crores. 1 crores will financed by the bank as a

loan. The following product and services are

done on the contract basis:1. Laundry sevice2. Cyber café3. Foreign exchange service4. Flowers can be organized at request

SOURCES OF INCOME

Sales of servicesCommission by agentsService taxInterest on bank deposits

Expenses :

• Purchasing of material• Working capital expenses• Delivery service expenses• Maintenance expenses• Labour cost expenses• Advertising cost expenses• Taxes expenses• Insurance expense

• Electricity expense• Energy and water expenses• Reservation expenses• Cleaning expenses• Laundry expenses• Guest transportation expenses• Linen expenses: towel, face

cloth, blankets, pillow etc. expenses

• Food & Beverage expenses• Telephone expenses• Administrative & General

expenses

Hotel departments:

• Rooms Division Department• Food & Beverage Department• Telephone Department• Administrative & General Department• . Marketing Department• Property, Operation and Maintenance • Data Processing Department• Human Resources Department• Guest Transportation Department

Financial Reporting Centers:• Revenue Centers Generate Revenue through

sales of Products and/or Services to GuestsRoomsFood and BeverageTelephoneGift ShopsGarage and ParkingOther Operated DepartmentsRentals and other Income

Support Centers

• those departments that have minimal Guest Contact and do not produce Sales. Yet, they do provide services to Revenue Centers, which, in turn, provide Services to Guests.

Administrative & GeneralMarketingProperty Operation and MaintenanceData ProcessingHuman Resources

Other Financial Reporting Centers

• include Energy Costs and Fixed Charges (Rent Expense, Property Taxes, Insurance Expense, Interest Expense, Depreciation and Amortization Expenses)

Each Financial Reporting Center should be assigned an Identification Number

Financial Reporting Center Identification Number

Rooms 11

Food and Beverage 15

Telephone 17

Administrative & General 31

Marketing 36

Property Operation and Maintenance

38

Energy Costs 41

Fixed Charges 51

ROOMS CATEGORIES & RATES • TOWER WING ROOMS - 5000-

• SUPERIOR ROOMS - 4750 • DELUX ROOMS - 4500 • ARERA CLUB ROOMS - 3750 • EXECUTIVE SUITES - 4000 • LUXURY SUITES - 4250 • WING ROOMS - 2000 • LUXURY GRANDE ROOMS - 2500 • ARERA ECONOMY ROOMS - 1000

COMPETITORS:• Noor-us-sabah Palace• Jehen-numa Palace• Hotel Pukhraj• Hotel Tulsi Exotica• Hotel Nisarga• Hotel Samrat• Hotel Savera-Inn• Hotel Lake View Ashoka• Hotel udit plaza• Hotel Sonali• The mark

Chaitany Joshi & Richa Rajoria