Hill Top GUEST HOUSE

FEASIBILITY ANALYSIS

VISION AND MAIN GOALS

• To create a wonderful experience for our esteemed customer in best environment.

• In order to succeed, the new management will strive to achieve the following goals:

Emerge as the guest house in all our location among numerous tourists;

Build strong market position among the local patrons

Maintain sound financial management of the venture

MISSION AND BUSINESS IDEAS

• To be the best in the hospitality industry for temporary lodging by expanding our exposure via the Internet and introducing customers to places and services they are yet to discover.

• To create an environment of luxury that surpasses the standard fare ,will have the every need met to ensure his/her comfort.

PROJECT SITE

• LOCATION : MIRIK

DARJEELING (WESTBENGAL)

• Land requirement : 150 meter sq

• Budget : Rs 30,00,000

backgroundMirik has become a popular tourist destination for its climate, natural beauty and easy accessibility.

The climate is pleasant all the year round with temperatures of a maximum of 30 °C in summer and a minimum of 1 °C in winter.  

MARKET FEASIBILITY Porter's five forces model

Threat of new entrants

Increasing real-estate investments

Availability of substitutes

Other small lodges , hotels and guest houses

Bargaining power of supplier’s

Bargaining power of buyer’s

Rivalry among existing competitor’s

HOTEL JAGJEET

Single occupancy : Rs. 2,000

Double occupancy : Rs. 3,500

SOUTH BENGAL TOURISM COTTAGE

occupancy per cottage : Rs. 2,600

COMPETITOR ANALYSIS

PRODUCT FEASIBILITY MIRIK is a tourist spot receiving high amount of tourist every

year.

There is only one govt. resort in the main area.

The area is not very developed . So it becomes inconvenient for the tourist to get pleasure time in valley

Also, In peak time, tourists do not get reservations , so, consequently tourist have to go to far off areas for living facilities

So, our resort will provide a good spot for tourist

Features

• Parking space available

• Well furnished rooms with hot water facility

• Restaurant

• Massage centre

• Spa

• Facility of taxi services & guides

FINANCIAL FEASIBILITY

Land cost Landdeveloped

Per metre2

development charge (INR)

Interior decorationCharge(INR)

Architecture cost(INR)

LicensingFee(including liquor license)(INR)

Regulation development authority charge(INR)

150metre2

120 metre2

10,000 50,000 per room

1% of total investment

50,000 1.5% of total investment

Total cost for 10 rooms

10,00,000 12,00,000

5,00,000 30000 50,000 45000

TOTAL=2825000 Miscellaneous expenses =1,75,000

Capital expenditure

• Capital requirement: 3000000

• Price (double occupancy) off season =1500

• Price (double occupancy) on season= 1800

• Estimated Earning (based on occupancy rate)

Occupancy rate

2012(%) 2013(%) 2014(%)(Assumption)

Total earning(In Rs.)

On season (march- june)

75 85 70 15,12,000

Off season 30 35 30 10,80,000

Total yearly income

25,92,000

Expected earning (on season)particulars amount particulars amount

Wages(5 workers) 40000 total revenue 1512000

Electricity and water bill(100/room)

28000

Maintenance charge 4000

Cleaning charges 2000

Net earning 1438000

1512000 1512000

Expected earning (off season)particulars amount particulars Amount

Wages(5 workers) 80000 Total revenue 1080000

Electricity and water bill(1000/room)

24000

Maintenance charges

8000

cleaning 2000

Net earning 966000

1080000 1080000

• PAY BACK PERIOD (PBP)

= 1+(3000000-2404000)/2404000

= 1.25 YEAR (i.e 1 year 3 months )

1ST YEAR PROFIT 2ND YEAR PROFIT

Rs.966000+ 1438000= 24,04,000 Rs. 24,04,000

• Return on investment (ROI)

= (Return – Investment) Investment

1st year = -19.86 % 2nd year = 60.26 %

Calculation of ROI and PBP

Hill TopGUEST HOUSE

THANK YOU !!!