PROJECT BRIEF

This document is being prepared for the establishment of a three star hotel. The object of establishing a three star hotel is to facilitate the internal and external tourist and provide them with the best boarding and lodging facilities. The hotel will provide accommodation facilities for 150+ guests at any time. Apart from the usual guest entertainment facilities and the banquet halls; restaurants and club facilities would also be available to non occupants. The competitive advantage of the current project would be its prime location and provision of excellent and competitive services to occupants and non-occupants. The project is proposed to be located at Ashok Nagar, Bhubaneswar providing comfortable facilities to the tourist and donor community. The completion time for the project is two years and six months. The human resource requirement is 119 personal in the managerial, skilled and semi skilled level. There will also be numerous jobs created indirectly. There is no problem of entry into the market as the people here are known to be very friendly and there are no monopolies in this area of the economy.

PROJECT RATIONALE
Odisha, Bhubaneswar is the gateway to some of the most scenic and traditional beauty spots in this part of the country. Among the fresh food delights, the fruit and fresh water trout fish of these areas (Chilika; Puri) is considered to be one the best in the country. This area has an established tourist market in which the number of internal tourists shows increasing trends over the past five years. The occupancy and visits show some decreases at times, however the overall availability of the guests is constant in the market throughout the year. There is a fair presence of internal and external tourists and guests flowing to the area. This is due to the fact that this city is gateway to all tourist sites of the area. This area is renowned for its natural beauty and friendliness of the residents makes the market of the Odisha; Bhubaneswar favorable for this type of project. The competitive forces on the project are not very strong at the moment; the government policies are inclined towards foreign investments and inflow of funds in the economy. There is a big gap in the tourist market of our identified location. The large capital requirement of the project raises significant barriers to entry which constrains new entrants into the market. However, since there is a presence of alternative accommodation providers in the area, there will still need to be a focus on capturing a substantive market share, particularly when vying for external tourists. There are other 3 star hotels available in the market, but the project is differentiated on the basis of services, costs, facilities, linkages with the international chains and market standing. As most of the services are being provided by the hotel itself, therefore, the dependence on subcontractors is reduced. Furthermore, the raw materials required for the operations of the project are widely available in the market and there is no need to be dependent on any particular supplier or manufacturer of a commodity. Because of its inclusion and linkage with the international chain of hotels the project will enjoy the privileges of the international market by itself. To attract the local market there is a need of strong personnel to take charge of the marketing activities and attract the local and internal customers through good relationships,

extra value added services and discounts. The employees should be treated as the main assets of the project. The policies and incentives for the employees will be set in such a way that the retention will be easier for the organization. The management will be in an advantageous position as they will get maximum support in their strategies and policies from the international chain. The project should be able to fully leverage its international linkage the project, thereby providing its service quality image and ranking in the market a distinct advantage. The external factors usually applicable to a project are political pressures. Since, the project is of a nonpolitical in nature in the local market; therefore, no negative effects are perceived on its viability due to this aspect. As the project will be providing employment opportunities for the local people, therefore, its risks are considered as further reduced. The trends in the local economy and the government and international community efforts of revival and recovery further provide a favorable environment for such an initiative. BUSINESS PLAN Non- availability of three star hotels creates a profitability margin window for the first time investor. If clean and comfortable stay is provided to the customers, then with a very conservative estimate, the first year of the projects expected occupancy would be 50% room occupancy with an annual growth of at least 10% anticipated. Raw Materials - The basic requirements for running the hotel business are the amenities, water and utilities. All the requirements are easily available at low costs. Furthermore, the raw materials required for the operations of the project are widely available in the market and there is no need to be dependent on any particular supplier or manufacturer of a commodity. Services provided - The services provided will be rooms for night stay, laundry, restaurant, halls for seminars and parties. Distribution/Marketing Channels - Marketing and related promotional activities will require a well thought out strategy and full advantage of international chain of hotels may be taken. Although, the promotional activities should start from the first year of the project, the main sales pitch will be taken from the second year of establishment. This may include awareness-raising among the potential internal tourists, linkage with international chain of hotels, discount campaigns, and provision of various added attractions to increase the (hotels) customer value. Human Resource Requirement - The Human resource requirement directly associated with the hotel is listed below. Description/designation Number Monthly salary for the position Total monthly salary Operating Management 8 50,000 400,000 Cooking Staff 20 15,000 300,000 Waiters, Bell boys 50 10,000 500,000 Drivers 6 5,000 30,000

Janitors Guards and others Total Monthly Salary

20 15 119

5,000 5,000

100,000 75,000

1,405,000

Operational data - The capacity of the hotel is 150 rooms and allied services. It is expected that the room occupancy would be 50% in the first year and will increase gradually; the allied services are expected to increase likewise. o Overhead cost - In the first year following overhead cost are estimated. Admin and marketing Salary 750,000 Heat Light and Power Communications Printing and Stationary Traveling and Conveyance Entertainment Office Supplies Repair and maintenance 340,200 513,000 340,200 1,512,000 172,800 196,560 178,200 4,002,960

HOTEL BUILDING LAYOUT

Market Analysis
Our typical hotel market analysis will examine the key economic and market variable that influence the demand for hotel room and conference facilities, if applicable , at the project location will include: A) An assessment of site as a viable location for a hotel B) An overview of selected existing and recent hotel developments in the surrounding area and region by type, e.g., convention hotel, resort, extended stay, boutique, etc. C) An evolution of existing and proposed hotel development in the market with regards to market location, positioning, target segment, user profile and property characteristics, such as: Total number of rooms Rack rates, and ADRs where available Occupancy rates Analysis of demand for rooms and hospitality uses Competitive position in the market area

D) An analysis will be prepared of hotels that are under construction and planned in order to better understand state of equilibrium in the market. E) Evaluate the depth of the market for a hotel at this location, and whether there is likely to be sufficient market demand for a hotel as the project is developed.

Hotel Industry
The hotel industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality u n i t s u c h a s a restaurant, hotel, or even an amusement park consists of multiple groups such as facility m a i n t e n a n c e , d i r e c t , management, marketing, and human resources. Usage rate is an important variable for the hospitality industry. In viewing various industries, " barriers to entry" by newcomers and competitive advantages between current players are very important. Among other things, hospitality industry players find advantage in old classics (location), initial and ongoing investment support (reflected in the material upkeep of facilities and the luxuries located therein), and particular themes adopted by the marketing arm of the organization.

The characteristics of the personnel working in direct contact with the customers. The authenticity, professionalism, and actual concern for the happiness and well-being of the customers that is communicated by successful organizations is a clear competitive advantage. This significant growth of the tourism industry is the direct result of changes in international consumer behaviors as well as economic prospe rity and political stability within the region. Historically, the supply of lodging facilities within the region has proved to be both inadequate in terms of product quality as well as insufficient in quantity for meeting the increasing levels of demand. These elements of supply and demand have created a favorable investment climate for development within the region, resulting in a real estate boom in both tourism andr e s i d e n t i a l d e v e l o p m e n t s . I n v e s t m e n t a n d d e v e l o p m e n t h a s b e e n f u r t h e r supported by the variety of financial incentives for investment in tourism projects offered by national governments as well as the availability of local capital for the financing of large projects. The first goal is to find ways to operate the hotel according to the idea of a triple bottom line, which embodies profitable operation combined with attention to the people who use and work in the hotel and a focus on careful stewardship of resources.