Analyzing the financial aspects of planning a hotel

Type :

Term papers

Pages :

12 pages

Format :

.doc

Published date :

08/25/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Introduction to hotel industry
1. Hotel industry and tourism
2. Contribution to foreign exchange
3. A home away from home
Hotel industry and employment
Introduction to tourism
Categorisation of hotels
Demand quantification
Technical details of proposed project
1. Accommodation
Recommended market mix
1. Shopping arcade
2. Business centre
3. Lockers
4. Car parking
5. Public phone
6. Lounge
Introduction to financial aspects of the project
1. Introduction
2. Points to be considered when evaluating investment
Evaluating the capital required
1. Capital
2. Sources of capital
3. Types of organizations
4. Capital requirement for hotel
5. Land and building
6. Plant and machinery
7. Furniture and fixtures
8. Miscellaneous fixed assets
9. Working capital
10. Evaluating investment
11. Profitability statement
Conclusion

Abstract

The hotel industry plays a very significant role in the development of tourism in a country. Almost 50% of the foreign exchange from tourism comes from the hotel industry. It has been rightly said, "No hotels, No Tourism". This statement basically exemplifies the fact that if there is no hotels then the tourism industry would suffer a great deal and vice versa therefore it can be said that the hotel industry is the most important segment of the tourist infrastructure. Hotels make major contributions towards tourist trade and enterprises. The expansion of tourism inevitably leads to the development of the hotel industry and this is especially true in developing economies across the world.

The hotel industry is a creator of employment opportunities. The employment impact of the hotel industry is felt all over the economy of a nation. Though, the hotel industry is capital in nature, being a service industry it is also labor intensive.