INVESTMENT OPPORTUNITY PROFILE FOR 3 STAR HOTEL IN NWFP
SUBMITTED TO AYESHA KHAN CHIEF TECHNICAL ADVISOR Community Based Livelihood Recovery Program (CBLRP) United National industrial Development Organization (UNIDO)
BY Sardar Shahid Farid Chartered Accountant
Disclaimer All material included in this document is based on data/information gathered from various sources and certain assumption. Due care and diligence has been taken to compile this document. The document may contain human, mechanical error or non accuracy of the information at the source. No liability for error, or omission or unintentional misrepresentation will be accepted. We reserve the right to make correction and changes wherever desired in this document or its subsequent versions.
PROJECT EXECUTIVE SUMMARY
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 Manshera providing comfortable facilities to the tourist and donor community. Manshera is considered a gate way for all the tourist activities of the locality. The region has access to all public amenities including water electricity and telecommunication facilities. The completion time for the project is two years and six months. The capital cost is Rs 118 million while the initial working capital required would be Rs 30 Million, thus the total cost would be 148 million. The sale at full occupancy i.e 150 double rooms and allied services is Rs 370 Million. 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.
FINANCIAL SUMMARY • • • • • • Sales Gross Profit Margin Net Profit Margin Internal Rate of Return NPV @ 10% Pay back period Rs 370 Million 46% 36% 21% 137 Million 03 and Half year Joint – Venture Loan Market access Sub contracting Buy – back arrangement Equipment purchase Feasibility study Other Specify 25 October 2007 Management expertise Technical expertise Marketing expertise Technology transfer Joint R&D Other :- Franchise Project description
Foreign collaboration sought
PROJECT RATIONALE Manshera is the gateway to some of the most scenic and traditional beauty spots in this part of the country, namely: Balakot, Showgran, Kaghan, Naran. All these places are renowned tourist havens, with some key tourist attractions like Lake Saif-ul- Maluk and Sirree Paye. Among the fresh food delights, the fruit and fresh water trout fish of these areas is considered to be 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...