Jeevesh Sabharwal | Horizon Orizzonte in Knowledge Park III, Greater Noida by Horizon Concept Builders

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HOTEL FEASIBILITY REPORT Knowledge Park
III Greater Noida, U.P.
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CONTENTS Introduction Specifications of the
Property Executive Summary Site Review Area
Review Supply Demand Financials Overview Hotel
Rooms Operating Results
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INTRODUCTION

• The Project is being constructed in a Land
  spanning 15 acres, out of which 7.5 acres of IT/
  ITES space has already been constructed is
  ready to move in.
• The Project is approved as Mixed Use Land which
  consists of IT, Retail spaces, Hostel,
  Residential Complex, IT Enabled Services Hotel.
• The only project in the Vicinity which has all
  the above written approvals.

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SPECIFICATIONS OF THE PROPERTY

• Total Land 15 Acres
• Approved for Hotel, Retail Spaces, IT/ ITES,
  Residential Complex Hostel.
• Corner L-Shape Plot.
• East Facing Plot
• Located in the Hub of Universities/ Institutes,
  Hospitals.
• Near Gr. Noida Expo Centre
• Best Suitable for Hotels because of its
  Surrondings Area Easy access from Noida
  Yamuna Express Way
• 2 minutes Drive from Pari Chowk Yamuna Express
  Way.
• 2 Minutes Drive from Nearest Metro Station
• 15 minutes Drive from Upcoming Airport.

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Executive Summary

• Total Number of Rooms 200
• 24 hrs Coffee Shop with 100 Covers
• Restaurant with 150 Covers 80 Covers PoolSide
  Bar
• 170000 sq.ft26 Covered Landscaped Banquet Area
• Spa, Hanging Swimming Pool
• Car Parking- 200 Numbers
• Easily accessible by Road from Delhi , Noida
  through Noida Express Way Agra, Mathura,
  Vrindavan from Yamuna Express Way

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Executive Summary

• Economic indicators for the subject market
  project a positive outlook for the economic
  growth in the region.
• Due to close proximity to Delhi , Noida and being
  part of the National Capital Region and with
  connectivity by Metro the area will show growth
  in population levels over the next 10 years
• The market is growing and has a potential for a
  good hotel as this has been declared the first
  smart city by GOI. The approach to Agra, Mathura
  Vrindavan due to the express highway is
  excellent and lot of domestic/foreign clients are
  expected.
• The starting point of DMIC i.e Dadri is very near
  which is likely to be developed as a Japanese
  Industrial Township. Besides Greater Noida
  itself is an industrial area with tourism
  potential because of Night Safari and Formula
  One Race .

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Strengths

• An excellent branded Full Service Hotel located
  in Greater Noida.
• Close proximity to Industrial areas of Noida,
  Dadri and Greater Noida
• Location on Tourist Route to Agra via Yamuna
  Express Way
• Rapidly growing area with increase in population
  of 46 in last 10 years and third most populous
  district of UP.
• Weakness
• Two new star rated Hotels in adjoining areas
• Markets available are price sensitive

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Site Review

• Current Site Status-

9
Area Review

• Located in Knowledge Park-III
• More than 70 Universities/ Institutes in the
  Vicinity which caters more than 5 lacs students.
• 5 Minutes drive to Industrial Belt covering
  Food, Soft Drinks, Tobacco, Cotton Textiles,
  Woollen, Synthetic Textiles, Paper, Paper
  Products, Rubber, Plastic , Petroleum, Chemical,
  Chemical Products, Machinery and Tools, Transport
  Equipment Parts
• Gr. Noida Expo Centre in close vicinity with a
  Roaster of 180 days for the Events on yearly
  basis.

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Supply

• The Supply of Hotel Rooms in the area are
  primarily from Hotel Crown Plaza and Radisson Blu
  which are in close proximity having higher rates
  in the same category. This brings a wide scope
  for a branded 4 star hotel to encash upon
  Tourists, Visiting Faculty, Expo Participants
  Exhibitors, Doctors, Business Travelers
  Parents.
• Analysis For Existing Hotels in
  Nearby Locality

S.No Hotel Location No.of Rooms Room Tarriff
1 Hotel Crown Plaza Gr. Noida 240 9750
2 Radisson Blu Gr. Noida 180 8000
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Demand

• The Demand for Hotel Shall Originate From -
• Universities/ Institutes
• Corporates from Industrial Belt
• Hospitals
• Foreign Travelers visting Agra, Mathura
  Vrindavan
• Local Businesses from Elite Class Living in the
  Area.
• Exhibitors participating in Expo Centre.
• Upcoming Airport Transitors
• Internationally approved Cricket Stadium
• Events at Formula One
• Upcoming Night Safari

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Specifications Financials
S.No Particulars FY 2018-19 FY 2019-20 FY 2020-21
1 Number Of Units 200 200 200
2 Number of Annual Rooms Available 73000 73000 73000
3 Number of Rooms Occupied 32850 40150 47450
4 Annual Occupancy ( In percentage) 45.00 55.00 65.00
5 Average Daily Rate per room ( In INR) 5000 5500 6000
6 Revenue Generated ( In INR) 1642500 2208250 2847000
S.No Source Amount (Rs) Amount(Rs) Amount(Rs)
1 Rooms 164250000 220825000 284700000
2 Food Beverages 62415000 76285000 90155000
3 Banquets 19905245 24328633 28752021
4 Other Operated Departments 8094016 9892686 11691357
Total 254664261 331331319 415298377
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S.No Departmental Expenses FY 2018-19 FY 2019-20 FY 2020-21
1 Rooms 13731298 16782698 19834098
2 Food Beverages 31207500 38142500 45077500
3 Other Operated Expenses 51658619 63138312 74618005
Total Operating Expenses 96597417 118063510 139529602
Departmental Profit 158066844 213267810 275768775
S.No Particulars FY 2018-19 FY 2019-20 FY 2020-21
1 Administrative General 25554493 31233270 36912046
2 Marketing 1500000 2000000 2500000
3 Franchise Fees 4.50 11459892 14909909 18688427
4 Property Operation Maintenance 800000 1000000 1200000
5 Utility Cost 100 850000 1050000 1250000
6 Other misc Expenses 800000 1000000 1200000
Total 40964385 51193179 61750473
Gross Operating Profit 117102459 162074631 214018302
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S.No Fixed Expenses FY 2018-19 FY 2019-20 FY 2020-21
1 Insurance 305000 450000 550000
2 Other Fixed Expenses 1395000 1500000 1700000
Total Fixed Expenses 1,700,000 1,950,000 2,250,000

Net Operating Income 115402459 160124631 211768302
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Operating Results

• The Hotel is located in a Strategic area
  proximate to an Industrial belt, on a major
  tourist route , rapidly urbanizing and growing
  city.
• The Hotel offers a good alternative to offer A
  grade facilities and services at comparatively
  lesser costs as compared to Hotels in vicinity.
• More and more Indians are joining the Urban
  Middle Class due to increasing Purchasing Power
  and higher standards of living.
• Initially the Hotel may face teething competition
  due to the properties which have come up in
  vicinity but availability of good amenities,
  the Hotel will soon have high Occupancy levels
  and would be profitable.

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• THANK YOU