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How to Start a Hotel(4 Star Hotel, Hospitality Industry)Detailed Project Report, Profile, BusinessPlan, Industry Trends, Market Research,Survey, Feasibility Study, InvestmentOpportunities, Cost and Revenue, PlantEconomics, Working CapitalRequirement, Plant Layout, Cost ofProject, Projected Balance Sheets,Profitability Ratios, Break Even Analysiswww.entrepreneurindia.co

IntroductionOne of the fastest growing sectors of theeconomy of our time is the hotel industry. Thehotel industry alone is a multi-billion dollar andgrowing enterprise. It is exciting, never boringand offer unlimited opportunities. The hotelindustry is diverse enough for people to work indifferent areas of interest and still be employedwithin the hotel industry.www.entrepreneurindia.co

This trend is not just in India, but also globally.Modern hotels provide refined services to theirguests. The customers or guests are always right.This principle necessitated application ofmanagement principles in the hotel industry andthe hotel professionals realized theinstrumentality of marketing principles inmanaging the hotel industry.www.entrepreneurindia.co

Hotel is an establishment that provides lodgingand usually meals and other services fortravellers and other paying guests. It providespaid lodging, usually on a short-term basis.Hotels often provide a number of additionalguest services such as a restaurant, laundry, aswimming pool or child care. Some hotelshave conference services and meeting roomswww.entrepreneurindia.co

and encourage groups to hold conventions,functions and meetings at their location. Hotelsare found in almost all the cities. Hotels operatetwenty four hours a day, seven days a week. Theprincipal factor that determines the guestattitude towards a hotel is service although otheramenities such as room, food and beverages areof equal importance a tangible determinants.www.entrepreneurindia.co

Few Indian Major Players are as under 18Th Step Resorts Pvt. Ltd. Advani Hotels & Resorts (India) Ltd. Adyar Gate Hotels Ltd. Alankar Business Corpn. Pvt. Ltd. Balaji Amines Ltd. Bekal Resorts Devp. Corpn. Ltd. Benares Hotels Ltd.www.entrepreneurindia.co

Best Eastern Hotels Ltd. Bona Sera Hotels Ltd. Budget Hotels Ltd. Chalet Hotels Pvt. Ltd. Express Resorts & Hotels Ltd. Jungle Lodges & Resorts Ltd. Mayank Hotels Ltd. Neotech Solutions & Securities Ltd.www.entrepreneurindia.co

Oasis Hotels Ltd. Om Metals Infraprojects Ltd. Pai Vaibhav Hotels (India) Pvt. Ltd. Prajay Engineers Syndicate Ltd. Presidency Leisure Ltd. Ras Resorts & Apart Hotels Ltd. Sahara Hospitality Ltd.www.entrepreneurindia.co

PROJECT AT A GLANCEPROJECT AT A GLANCE(Rs. in lacs)COST OF PROJECTParticularsExistingMEANS OF FINANCEProposedLand & Site Development Exp.0.0063.00Buildings0.00526.20Plant & Machineries0.00162.63Motor Vehicles0.0045.00Office Automation Equipments0.00Technical Knowhow Fees &Exp.TotalParticulars63.00 CapitalExistingProposedTotal0.00246.90246.90526.20 Share Premium0.000.000.00162.63 Other Type Share Capital0.000.000.0045.00 Reserves & Surplus0.000.000.0098.7598.75 Cash Subsidy0.000.000.000.0030.0030.00 Internal Cash Accruals0.000.000.00Franchise & Other Deposits0.000.00Long/Medium Term0.00 Borrowings0.00740.70740.70Preliminary& Pre-operative Exp0.0010.0010.00 Debentures / Bonds0.000.000.00Provision for Contingencies0.0016.0016.00 Unsecured Loans/Deposits0.000.000.00Margin Money - Working 60987.60 TOTALwww.entrepreneurindia.co

PROJECT AT A GLANCEYearAnnualisedBookValueDebtPer ShareDividend Retained Earnings PayoutPer ShareProbableMarketPriceP/ERatioYield Price/Book ValueNo.ofTimesEPSCEPSPer neurindia.co

PROJECT AT A GLANCEYearD. S. C. R.Debt / - EquityDepositass Debt EquityTotalNetWorthReturn onNetWorthIndividu Cumulati Overallalve(Number of times)Initial(Number of times)3.003.00%%Profitability RatioGPMPBTPAT%%%Assets CurrentTurnove Ratior RatioNetP/VContrib 1%837.04 4.73%970.03 7.88% 1108.45 0.14% 1246.87 1.75% 1385.29 80.25%1.098.261.90www.entrepreneurindia.co

PROJECT AT A GLANCEBEPBEP - Maximum Utilisation Year5Cash BEP (% of Installed Capacity)52.60%Total BEP (% of Installed Capacity)57.07%IRR, PAYBACK and FACRInternal Rate of Return . ( In %age )23.74%Payback Period of the Project is ( In Years )2 Years 4 MonthsFixed Assets Coverage Ratio ( No. of times )3.035www.entrepreneurindia.co

Major Queries/Questions Answered in the Report?1.How to open/start a New Hotel?2.How to establish a Hotel?3.What is the Project Feasibility of a Hotel?4. What are the requirements of Working Capitalfor setting up a Hotel?5.What is the structure of the Hotel and who arethe key/major players?www.entrepreneurindia.co

6. What is the total project cost for starting a Hotel?7. What are the operating costs for setting up aHotel?8.What are the Infrastructure requirements forsetting up a Hotel?9.Who are the Suppliers and Manufacturers ofequipment, Furniture for setting up a Hotel?www.entrepreneurindia.co

10. What is the total size of land required for settingup a Hotel?11. What will be the income and expenditures for aHotel Project?12.What are the Projected Balance Sheets of aHotel Services?13. What are the requirement of utilities andoverheads for setting up a Hotel?www.entrepreneurindia.co

11. What is the Built up Area Requirement and costfor setting up a Hotel?12. What are the Personnel (Manpower), StaffRequirements for setting up a Hotel?16.What is the time required to break-even?17. What is the Break-Even Analysis of a Hotel?www.entrepreneurindia.co

18. What are the Project financials of a Hotel?19. What are the Profitability Ratios of a Hotel?20. What is the Sensitivity Analysis-Price/Volume ofa Hotel?21. What is the Projected Pay-Back Period and IRRof a Hotel?www.entrepreneurindia.co

22. What are the Market Opportunities for settingup a Hotel?23. What is the Market Study and Assessment forsetting up a Hotel?24. What is the Plant Layout for setting up a Hotel?25.What is the procedure to open a new Hotel inIndia?www.entrepreneurindia.co

Table of Contentsof theProject Report

1.PROJECT LOCATION1.1. District Profile & Geotechnical 1.1.6.1.1.7.1.1.8.1.1.9.Undertakings1.1.10.General Characteristics of the DistrictLocation & Geographical AreaTopographyAdministrative set upMapIndustry at a GlanceExisting Micro & Small Enterprises in the DistrictLarge & Medium Scale/Public Sector UndertakingsList of Large & Medium Scale/Public SectorPotential for New MSMEswww.entrepreneurindia.co

2.INTRODUCTION3.DEVELOPMENT AND GROWTH OFHOTEL INDUSTRY IN INDIA3.1. Hotel Industry In Medieval Period3.2. Mussafir Khanas And Sarais3.3. Emergence Of Hotels In India3.4. Formation Of Three Corporations And Itdc4.5.IMPORTANCE OF HOTELSHOTEL AS A SERVICE PROVIDER IN THEMODERN DAYwww.entrepreneurindia.co

6.GENERAL CLASSIFICATION OF HOTELINDUSTRY6.1. Classifications Of Hotels6.2. Classification According To FacilitiesAnd Amenities6.3. On The Basis Of Standards6.4. On The Basis Of Nature7.USERS OF HOTEL INDUSTRY8.GUIDELINES FOR APPROVAL OFHOTELS8.1. Approval At Project Levelwww.entrepreneurindia.co

8.2. Apartment Hotel – Classification/Reclassification Guidelines8.3. Checklist For Star Hotels9.MARKET SURVEY9.1. Growth Of Tourism And Hospitality InIndia9.2. Growth Drivers9.3. Foreign Investors9.4. Indian Hotel Industry Performance –Country Trends10.MAJOR HOTEL GROUPS IN INDIAwww.entrepreneurindia.co

11.FINANCIALS & COMPARISON OF MAJORINDIAN PLAYERS/COMPANIES11.1. About Financial Statements Of CMIEDatabase11.2. Profits & Appropriations11.3. Total Liabilities11.4. Total Assets11.5. Net Cash Flow From Operating Activities11.6. Section – I11.6.1.11.6.2.11.6.3.11.6.4.Name of Company with Contact DetailsName of Director(S)Plant CapacityLocation of Plantwww.entrepreneurindia.co

11.6.5. Name of Raw Material(S) Consumed With Quantity & Cost11.7. Section – .11.7.8.11.7.9.11.7.10.11.7.11.AssetsCash FlowCost as % Ge of SalesForex TransactionGrowth in Assets & LiabilitiesGrowth in Income & ExpenditureIncome & ExpenditureLiabilitiesLiquidity RatiosProfitability RatioProfitswww.entrepreneurindia.co

11.7.12. Return Ratios11.7.13. Structure of Assets & Liabilities (%)11.7.14. Working Capital & Turnover Ratios12.ONLINE BOOKING SYSTEM12.1. Proposed Solution12.2. Project Planning & Control12.3. Documentation Standards:12.4. Programming Standards:12.5. Work Break Down Structure (WBS)www.entrepreneurindia.co

13.DIFFERENT DEPARTMENTS IN HOTELS13.1. Core Functioning Department13.2. Support Department (Cost Centres)14.FRONT OFFICE DEPARTMENT14.1. Front Office Functions14.2. Front Office Organisation14.3. Front Office Organisation Chart14.4. Duties & Responsibilities Of FrontOffice Staff14.5. Front Office Desk Layout14.6. Front Office Equipments AndFurniture’swww.entrepreneurindia.co

15. ORGANISATIONAL STRUCTURE OFHOUSEKEEPING DEPARTMENT15.1. Importance Of Housekeeping15.2. Functions Of Housekeeping16. DUTIES AND RESPONSIBILITIES OFRESTAURANT STAFF16.1. Food And Beverage Manager16.2. Assistant Food And Beverage Manager16.3. Restaurant Manager16.4. Bar Manager16.5. Other Staff Designations At VariousLevelswww.entrepreneurindia.co

17.LAUNDRY DEPARTMENT17.1. Process Of Laundering17.2. Layout Of A Laundry17.3. Laundry Procedures18.SAFETY AND SECURITY18.1. Safety And Security Measures18.2. Handling Security Threats19. SUPPLIERS OF MACHINERY &EQUIPMENTS19.1. Hotel Furniture Supplierswww.entrepreneurindia.co

20.SUPPLIERS OF RAW MATERIAL21. HOTEL, MACHINERY & EQUIPMENTSPHOTOGRAPHS22.HOTEL SAMPLE LAYOUT23. QUOTATION OF PLANT, MACHINERYAND EQUIPMENTS FROM SUPPLIERwww.entrepreneurindia.co

Project Financials Project at a GlanceAnnexure Assumptions for Profitability workings .1 Plant Economics .2 Production Schedule 3 Land & Building . 4Factory Land & BuildingSite Development Expenseswww.entrepreneurindia.co

Plant & Machinery . .5Indigenous MachineriesOther Machineries (Miscellaneous, Laboratory etc.) Other Fixed Assets . .6Furniture & FixturesPre-operative and Preliminary ExpensesTechnical KnowhowProvision of Contingencies Working Capital Requirement Per Month . 7Raw MaterialPacking MaterialLab & ETP Chemical CostConsumable Storewww.entrepreneurindia.co

Overheads Required Per Month and Per Annum . . 8Utilities & Overheads (Power, Water and Fuel Expenses etc.)Royalty and Other ChargesSelling and Distribution Expenses Salary and Wages . .9 Turnover Per Annum . 10 Share Capital .11Equity CapitalPreference Share Capitalwww.entrepreneurindia.co

Annexure 1 :: Cost of Project and Means of Finance Annexure 2 :: Profitability and Net Cash Accruals Revenue/Income/RealisationExpenses/Cost of Products/Services/ItemsGross ProfitFinancial ChargesTotal Cost of SalesNet Profit After TaxesNet Cash Accrualswww.entrepreneurindia.co

Annexure 3 :: Assessment of Working Capitalrequirements Current AssetsGross Working CapitalCurrent LiabilitiesNet Working CapitalWorking Note for Calculation of Work-inprocess Annexure 4 :: Sources and Disposition of Fundswww.entrepreneurindia.co

Annexure 5 ::Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets) Annexure 6::Profitability Ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratiowww.entrepreneurindia.co

Annexure 7::Break-Even Analysis Variable Cost & Expenses Semi-Variable/Semi-Fixed Expenses Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.Pwww.entrepreneurindia.co

Annexure 8 to 11 :: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEPwww.entrepreneurindia.co

Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % ofProducts/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/Itemswww.entrepreneurindia.co