PROJECT FOR CONSTRUCTION

OF
5 STAR HOTEL
 OUR CREW
Sunny Srivastava (DM-05-058)

 
 INTRODUCTION
The Adam’s mark GROUP OF HOTELS, is a 5 - star deluxe
business hotel, stands majestically amidst 10 acres of lush
green gardens and a sparkling lagoon in the city of
Hyderabad. It's attributes of comfort, technology and design,
along with the regal ambience, combines to provide
outstanding service to the business traveler & the most
impressive pool side restaurant. Situated 2.5 kilometers away
from the International airport, it is in close proximity to the
IT hub and business centre's of city.
FEATURES
•125 elegantly furnished deluxe rooms & suites
•Large business desk in all rooms
•Business Centre with video conferencing facility
•Round the clock butler service
•Laundry & Dry Cleaning
•Board rooms & Meeting rooms
•Outdoor and terrace Swimming Pool
•World's Finest Club Floors
•Electronic safe in all rooms
•Well ventilated spacious banquette halls
•Fully stocked mini-bar
•Pub and lounge
•Concierge Services
•24 hr In-Room dining
•Limousine Services
•Asia's Premier Spa
OBJECTIVE

•To give our customer the best and comfortable services.

•Good quality with low service charges.

•Earning profit.

•Over all development of area.

AIM
The aim of our hotel is to provide the guest service
with satisfaction never the less profit. As seen from
the calculations the main target clients would be
business clientele as Hyderabad is the fastest
growing city in Asia.
Therefore the proposed hotels clientele
are expected to be
•Business Clientele – 65%
•Tourists – 25%
•Others – 10%.
 INPUT
MONEY
MAN POWER
LAND
TIME
MACHINERY
MANPOWER PLANNING
Shift timing
Morning shift – 6 a.m – 3 p.m.
Afternoon shift – 3 p.m – 11 p.m.
Night shift – 10 p.m – 7 a.m.
General shift – 9 a.m – 6 p.m

Employees according to department

Administrative department
General Manager 1
PA to General Manager 1
Training manager 1
Total 3
• Front office
Manager 1
Lobby manager 1
Bell captain 1
Bell boy 5
Telephone operator 3
Front office assistant 4
Travel desk 2
Total 17
• Housekeeping
Executive housekeeper 1
Assistant housekeeper 1
Floor supervisor 3
House maid 6
Gardener 2
Total 13
• Security
Manager 1
Personnel 4
Doorman 3
Total 8
• Engineering & Maintenance
Chief Officer 1
Technician 6
Total 7
• Accounts
Manager 1
Clerk 2
Cashier 2
Total 5
• Purchase
Manager 1
Assistant 2
Total 3
• Personnel Department
Manager 1
Assistant 3
Total 4
• Food & beverage Production
Executive Chef 1
Sous Chef 2
Chef de partie 5
Commis 1, 2, 3 22
Total - 30
• Food & beverage Service
Manager 1
Restaurant manager 3
Banquet manager 1
Captain 1
Steward 45
Barman 2
Total 57
• Kitchen Stewarding
Supervisor 2
Dish & Pot wash 6
Total 8
Sales & Marketing
Manager 1
Executive 1
Assistant Sales Executive 4
Total 6

Total number of Employees = 161

OUTPUT
•Area where our hotel is situated provides a great amount of
job holders.

•New other project were started in that area.

•Living standard of the people has been increase.

•Tourism benefit is provided by our hotel which will increase

the standard level of the Hyderabad for the visitors.
OUTCOME
•Hyderabad Government has been getting a high amount of
revenue from our hotel.

•By seeing our growth other competitor also planned to

construct mall and hotels in the state.

•Hyderabad been attracting people for his IT companies but

now it also attracting people for Hospitality Industry.

•Un Employment in state had been decrease from past.

IMPACT
Our project created a big market for other
competitive hotels. In the sense we can expand
globally, and development of tourism will help
us, provides us different types of clientele
such as business class travelers, and tourists,
consumers expectations will expects more.
NETWORK PLAN
EVENT EOT LOT SLACK
1 0 0 0
2 20 20 0
3 35 35 0
4 50 50 0
5 62 62 0
6 87 87 0
7 100 100 0
8 115 115 0
9 120 120 0
10 130 130 0
11 135 135 0
12 139 139 0
13 145 145 0
14 150 150 0
15 160 160 0
16 175 175 0
17 175 175 0
18 195 195 0
19 205 205 0
20 215 215 0
21 325 325 0
22 345 345 0
23 390 390 0
24 410 410 0
25 430 430 0
26 440 440 0
27 445 445 0
28 475 475 0
29 485 485 0
30 505 505 0
31 510 510 0
32 525 533 0

33 533 533 0

34 536 536 0

35 546 546 0

36 561 561 0

37 571 571 0

38 631 631 0

39 601 616 15

40 631 631 0

41 636 636 0

42 641 641 0

43 651 651 0

44 654 654 0

45 657 657 0

46 662 662 0

47 663 663 0

48 664 664 0

49 665 665 0
 EST EFT LST LFT FLOAT

0 20 0 20 0
20 35 20 35 0
35 50 35 50 0
50 62 50 62 0
60 87 62 87 0
87 100 87 100 0
100 115 100 115 0
115 120 115 120 0
120 130 120 130 0
130 135 130 135 0
135 139 130 139 0
139 145 139 145 0
145 150 145 150 0
150 160 150 160 0
160 175 160 175 0
62 82 155 175 93
175 195 175 195 0
195 205 195 205 00
205 215 205 215 0
215 315 215 315 0
314 345 315 345 0
345 390 345 390 0
390 410 390 410 0
410 430 410 430 0
430 440 430 440 0
440 445 440 445 0
445 475 445 475 0
475 485 475 485 0
485 505 485 505 0
505 510 505 510 0

510 525 510 525 0

525 533 525 533 0

533 536 533 536 0

536 546 536 546 0

546 561 546 561 0

561 571 561 571 0

571 631 571 631 0

571 601 586 616 15

601 616 616 631 15

631 636 631 636 0

636 641 636 641 0

641 651 641 651 0

651 654 651 654 0

654 657 654 657 0

657 662 657 662 0

662 663 662 663 0

663 664 663 664 0

664 665 664 665 0

PROJECT APPRAISAL
Inflow per year
Description No Cost/Rent Days/year Total (Crores)

Rooms 200 15000 250 50

Food Court 200 1500 365 7.3

Banquet Halls 5 30000 150 0.9

Spa 20 8000 365 2.65

Pub 150 2500 365 8.68

Total 69.53

Pay-Back Period (PBP)

Year Outflow(Cr) Inflow(Cr) Net flow (Cr) Cumulative Net flow (Cr)

0 150 0 -150 -150

1 100 0 -100 -250
2 60 60 -190
3 60 60 -130
4 66 66 -64
5 78 78 14
6 80 80 94
7 100 100 194
8 129 129 323
Total 250 573

Back Period is 5 years

Cost-Benefit Ratio (C-B Ratio)
Year Outflow (Cr) Inflow (Cr)
0 150 0
1 100 0
2 60
3 60
4 66
5 78
6 80
7 100
8 129
Total 250 573

Cost-Benefit ratio is 1:2.29

Discounted Cost-Benefit Ratio
Year Outflow Inflow Discount factor @12% Discounted Out Flow Discounted Inflow
0 150 0 1 150 0
1 100 0 0.8929 89.29 0
2   60 0.7972   47.832
3   60 0.7118   42.708
4   66 0.6355   41.943
5   78 0.5674   44.257
6   80 0.5066   40.528
7   100 0.4523   45.23
8   129 0.4039   52.103
Total 250 573   239.29 314.601

Discounted Cost-Benefit Ratio = 1:1.31 > 1:1

Return on Investment (ROI)

Average inflow per year = 573/9 = 63.66 cr

 
Rate of Return per annum = 63.66/250 * 100 = 25.47%
 
The Rate of Return per annum is much higher than the returns expected from a bank
(8% to 10%).

Net Present Value (NPV)

Year Outflow Inflow Net Cash Flow Discount Factor @12% Discounted Net Cash Flow

0 150 0 -150 1 -150

1 100 0 -100 0.8929 -89.29

2   60 60 0.7972 47.832

3   60 60 0.7118 42.708

4   66 66 0.6355 41.943

5   78 78 0.5674 44.257

6   80 80 0.5066 40.528

7   100 100 0.4523 45.23

8   129 129 0.4039 52.103

Total 250 573 323   75.311

 Internal Rate of Return (IRR)

Discount Net Net Flow Discount Net Flow Net

Cash Cash Discount Discount
Year Net Flow Factor Flow Discount Discount Factor Discount Flow Discount
Outflow Inflow Factor @10% Factor @24%
@6 % @6% @10% @18% @18 % @24%

-150
0 150 0 1 -150 1 -150 1 -150 1 -150

-100
1 100 0 0.9434 -94.34 0.9091 -90.91 0.8475 -84.75 0.8065 -80.65

60 60
2   0.8900 53.4 0.8264 49.584 0.7182 43.092 0.6504 39.024

60 60
3   0.8396 50.376 0.7513 45.078 0.6086 36.516 0.5245 31.47

66 66
4   0.7921 52.278 0.683 45.078 0.5158 34.0428 0.4230 27.918

78 78
5   0.7473 59.784 0.6209 48.430 0.4371 34.0938 0.3411 26.6058

80 80
6   0.7050 56.4 0.5645 45.16 0.3704 29.632 0.2751 22.008

100 100
7   0.6651 66.51 0.5132 51.32 0.3139 31.39 0.2218 22.18

129 129
8   0.6274 80.934 0.4665 60.178 0.2660 34.314 0.1789 23.0781

Total 250 573 323 175.342 103.918 8.3306

-38.3661
 Rate of Discount Net Present Value

6 175.342

10 103.918

18 8.3306

24 -38.3661

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
17 10 -3

By interpolation, the IRR works out to 23.065%

 Resource Planning
Resource planning is the process which
determines how to utilize the resources at a
given point of time in the given project schedule.
Resource planning is determined by the “Time
Scaling Networks”
Time Scaling Networks are of two types:
Early Start Style Management
Late Finish Style Management
Early Start Style Management
It says that the resources are used in the staring state
of the execution of the project
DAYS COST QUARTER WISE

Cumulative flow incrores

Q1{10-90} 195CRORES 30LAKHS 195.3

Q2{90-180} 5CRORES 85LAKHS

201.15
Q3{180-270} 7CRORES 62LAKHS

208.77
Q4{270-360} 1CRORE 30LAKHS
210.07
Q5{360-450} 4CRORES 32LAKHS

214.39
Q6{450-540} 1CRORE 10 LAKHS

215.49
Q7{540-630} 13CRORES 10LAKHS

228.59
Q8{630-720} 3CRORES 75LAKHS

232.34
Late Finish Style Management
It says that the resources used more at the later stages
of the execution of the project than the earlier stages
of the project
DAYS COST QUARTER WISE

Cumulative flow incrores

Q1{10-90} 195CRORES 30LAKHS 195.3

Q2{90-180} 5CRORES 85LAKHS

201.15
Q3{180-270} 7CRORES 62LAKHS

208.77
Q4{270-360} 1CRORE 30LAKHS
210.07
Q5{360-450} 4CRORES 32LAKHS

214.39
Q6{450-540} 1CRORE 10 LAKHS

215.49
Q7{540-630} 13CRORES 10LAKHS

228.59
Q8{630-720} 3CRORES 75LAKHS

232.34
 DAYS Cumulative earlyincrores cumulative late
Q1{10-90} 195.3 195.3
Q2{90-
180} 201.15 201.15
Q3{180-
270} 208.77 208.77
Q4{270-
360} 210.07 210.07
Q5{360-
450} 214.39 214.39
Q6{450-
540} 215.49 215.49
Q7{540-
630} 228.59 228.59
Q8{630-
720} 232.34 232.34

240
230
220
210 Cumulative
earlyincrores
200
cumulative
190 late
180
170
0 1 2 3 4 5 6 7 8 9
MONITORING PROCESS
Progress Control
DAYS Cumulative flow in early % Cumulative flow in late%
Q1{10-90} 84 84

Q2{90-180}
86.5 86.5
Q3{180-270}
89.98 89.98
Q4{270-360}
90.41 90.41
Q5{360-450}
92.27 92.27
Q6{450-540}
92.74 92.74
Q7{540-630}
98.38 98.38
Q8{630-720}
100 100

105

100

95

90 Cumulative flow in %
Cumulative flow %
85

80

75
0 1 2 3 4 5 6 7 8 9
 SUMMARY
•Hyderabad is known as the IT hub and one of the greatest cities In INDIA. It is a
blend of its romantic past of planned present. This makes it a city of infinite appeal.
Few cities in the world have anything like as much as secunderabad has to offer to its
visitors.

•The proposed hotel “ADAM’S MARK” and the total cost of the project are 2.50 cr.
The hotel will have 200 rooms & the occupancy has been assumed 80%. The facilities
would be telex, fax, restaurant, bar, coffee shop etc. Thus by keeping in view the
expenditure to estimate income & expenses was done, the ratio of depreciation on
assets, preliminary & pre-operative expenses to be written off per annum have been
kept down at fairly reasonable limits.

•The breakeven point at the third year is 21.48 %, debt service coverage ratio is 1.57: 1,
Discounted Cost-Benefit Ratio = 1:1.31 > 1:1, Back Period is 5 years app. , Internal
Rate of Return is 23.065 and cost benefit analysis is1:2.29, which is more than one & it
is beneficial. As per our conclusion we can recover our investment in 5 year duration.

•From the above information got by the calculation it is found that the hotel
“ADAM’S MARK” is financially varied.
THANK YOU