38639554-How-to-Start-a-Hotel-Detailed-Project-Report.docx

GENERATION OF IDEAS

There are 4 ideas of business:

1. Travelling agency2. Hotel3. Bike showroom4. Super market

INITIAL SCREENING

In this step we find the hotel as the best idea for the business because it has a wide scope and has less risk and more returns.

IS THE IDEA PRIMA FACIA PROMISING?

YES.

INDUSTRY ANALYSIS

HOTEL

A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms and air conditioning or climate control. Additional common features found in hotel rooms are a telephone, an alarm clock, a television, and Internet connectivity; snack foods and drinks may be supplied in a mini-bar, and facilities for making hot drinks. Larger hotels may provide a number of additional guest facilities such as a restaurant, a swimming pool or childcare, and have conference and social function services.

Some hotels offer meals as part of a room and board arrangement. In the United Kingdom, a hotel is required by law to serve food and drinks to all guests within certain stated hours; to avoid this requirement it is not uncommon to come across private hotels which are not subject to this requirement. In Japan, capsule hotels provide a minimized amount of room space and shared facilities.CLASSIFICATION OF HOTELS AND TARGET AUDIENCE

Classification is based on many criteria and classifying hotels into different types is not an easy task. The hotel industry is so vast that many hotels do not fit into single well defined category. Industry can be classified in various ways, based on location, size of property etc.

1. Based on location

City center: Generally located in the heart of city within a short distance from business center, shopping arcade. Rates are normally high due to their location advantages. They have high traffic on weekdays and the occupancy is generally high. Example: Taj Mahal, Mumbai

TARGET AUDIENCE: High Income Group, Business class, Foreigners.

Motels: They are located primarily on highways, they provide lodging to highway travelers and also provide ample parking space. The length of stay is usually overnight.

TARGET AUDIENCE: Highway Travelers, Adventure sport groups.

Suburban hotels: They are located in suburban areas, it generally have high traffic on weekend. It is ideal for budget travelers. In this type of hotel rates are moderately low.

TARGET AUDIENCE: families and recreational groups, low and middle income groups.

Airport hotels: These hotels are set up near by the airport. They have transit guest who stay over between flights.

TARGET AUDIENCE: Frequent Flyers.

Resort hotels: They are also termed as health resort or beach hill resort and so depending on their position and location. They cater a person who wants to relax, enjoy themselves at hill station. Most resort work to full capacity during peak season. Sales and revenue fluctuate from season to season.

TARGET AUDIENCE: Vacationers, tourists, health conscious audience.

Floating hotels: As name implies these hotels are established on luxury liners or ship. It is located on river, sea or big lakes. In cruise ships, rooms are generally small and all furniture is fixed down. It has long stay guest.

TARGET AUDIENCE: Domestic and International Tourists.

Boatels: A house boat hotels is referred as boatels.The Shikaras of Kashmir and Kettuvallam of Kerala are houseboats in India which offers luxurious accommodation to travelers.

Rotels: These novel variants are hotel on wheel. Our very own "Palace on Wheels" and "Deccan Odyssey" are trains providing a luxurious hotel atmosphere. Their interior is done like hotel room. They are normally used by small group of travelers.

TARGET AUDIENCE: International and High Income Tourists

2. Based on Size of Property

The main yardstick for the categorization of hotel is by size the number of rooms available in the hotel.

Small hotel: hotel with 100 rooms and less may be termed as small hotels.

TARGET AUDIENCE: Individual and Small Groups of wedding ceremony and other parties

Medium sized hotel: hotel which has 100-300 rooms is known as medium sized hotel.

TARGET AUDIENCE: Depend upon the locations and requirements.

Large hotels: hotel which have more than 300 rooms are termed as large hotels.

Mega hotels: are those hotels with more than 1000 rooms.

TARGET AUDIENCE: These are generally 5 star hotels and hence it is preferred by allied class and business houses

Chain hotels: these are the group that have hotels in many number of location in India and international venues.

TARGET AUDIENCE: Regular Guests.

3. Based on the Level of Service

Hotels may be classified into economy, and luxury hotels on the basis of the level ofservice they offer.

Economy/ Budget hotels: These hotels meet the basic need of the guest by providing comfortable and clean room for a comfortable stay.

Mid market hotels: It is suite hotel that offers small living room with appropriate furniture and small bed room with king sized bed.

Luxury hotels: These offer world class service providing restaurant and lounges, concierge service, meeting rooms, dinning facilities. Bath linen is provided to the guest and is replaced accordingly. These guest rooms contains furnishing, artwork etc. prime market for these hotels are celebrities, business executives and high ranking political figures. Example: Hyatt Regency, New Delhi.

TARGET AUDIENCE: According to the need and paying capacity of the customers.

4. Based on the Length of Stay

Hotel can be classified into transient, residential and semi residential hotels dependingon the stay of a guest.

Transient Hotel: These are the hotel where guest stays for a day or even less, they are usually five star hotels. The occupancy rate is usually very high. These hotels are situated near airport.

TARGET AUDIENCE: Less duration guests, High Income Groups.

Residential hotels: These are the hotel where guest can stay for a minimum period of one month and up to a year. The rent can be paid on monthly or quarterly basis. They provide sitting room, bed room and kitchenette.

TARGET AUDIENCE: married couples, business class for long projects.

Semi residential hotels: These hotels incorporate features of both transient and residential hotel.

5. Based on Theme

Depending on theme hotel may be classified into Heritage hotels, Ecotels, Boutiquehotels and Spas.

Heritage hotel: In this hotel a guest is graciously welcomed, offered room that have their own history, serve traditional cuisine and are entertained by folk artist. These hotels put their best efforts to give the glimpse of their region. Example: Jai Mahal palace in Jaipur.

Ecotels: these are environment friendly hotels these hotel use eco friendly items in the room. Example: Orchid Mumbai is Asia first and most popular five star ecotel.

Boutique hotels: This hotel provides exceptional accommodation, furniture in a themed and stylish manner and caters to corporate travelers. Example: In India the park Bangalore is a boutique hotel.

Spas: is a resort which provide therapeutic bath and massage along with other features of luxury hotels in India Ananda spa in Himalaya are the most popular Spa.

6. Based on Target Market

Commercial hotel: They are situated in the heart of the city in busy commercial areas so as to get good and high business. They cater mostly businessmen.

Convention hotels: These hotels have large convention complex and cater to people attending a convention, conference Example: Le meridian, Cochin, is a hotel with largest convention center in south India.

Resort hotels: These leisure hotels are mainly for vacationers who want to relax and enjoy with their family. The occupancy varies as per season. The atmosphere is more relaxed. These are spread out in vast areas so many resorts have solar powered carts for the transport of guest.

Suite hotels: These hotel offer rooms that may include compact kitchenette. They cater to people who are relocating act as like lawyers, executives who are away from home for a long business stay.

Casino hotels: Hotel with predominantly gambling facilities comes under this category, they have guest room and food and operation too. These hotels tend to cater leisure and vacation travelers. Gambling activities at some casino hotels operate 24 hours a day and 365 days a year. Example: Las Vegas in United State is Famous for Casino hotels.

7. On the basis of stars:

One star

All rooms are equipped with a washbasin and there is at least one bathroom for every 10 rooms.

There is access to a public telephone, breakfast is available and guests can come and go any time of the day or night.

Two stars

In addition to the one-star facilities, there is a telephone booth or a public telephone where the quests can speak in privacy. There is a bar or service counter where it is possible to buy light refreshments, as well as a dining room where breakfast is served, and other meals depending on circumstances. The rooms may be equipped with a private bathroom, but this is not obligatory.

Three stars

In addition to the class above, all rooms are equipped with private bathroom, telephone, television, radio, and desk. There is a service counter open during the day and it is possible to buy small items, reading material etc. Goods and services can be paid for by credit card. There is a lift in the building, if guest rooms are on three or more levels above the reception.

Four stars

In addition, there are easy chairs in all rooms, TV with remote control, satellite channels and a movie or video channel. There is room service day and night, or a minibar, and "a la carte" restaurant, and breakfast can be ordered in guest´s rooms. There is also a laundry service. There is a lift in the building, if the guest rooms are two or more levels above the reception.

Five stars

In addition, the interior decor is luxurious. There are safe compartments in the rooms. There is a lift, if the building has more the one floor. Meals can be ordered in rooms until 23:00. Secretarial services can be provided. There is an indoor swimming pool or an exercise facility with professional staff. There is a shop on location where gifts and souvenirs may be purchased and guests' luggage can be taken to their rooms.

TARGET AUDIENCE

In marketing and advertising, a target audience, or target group is the primary group of people that something, usually an advertising campaign, is aimed at appealing to. A target audience can be people of a certain age group, gender, marital status, etc. (ex: teenagers, females, single people, etc.) A certain combination, like men from twenty to thirty is often a target audience. Other groups, although not the main focus, may also be interested. Discovering the appropriate target market(s) to market a product or service to is one of the most important stages involved

with market research. Without knowing the target audience, a company's advertising and the selling efforts can become difficult and very expensive.

Target Audiences are set to focus on different groups: Adults, teens, twins and children. It is essential to become familiar with your target market, their habits, behaviors, likes, and dislikes. Markets differ in size, assortment, geographic scale, locality, types of communities, and in the different types of merchandise sold and because of the many variations included in a market it is essential, since you cannot accommodate everyone’s preferences, to know exactly who you are marketing to and the specific fondness of that market. To better become acquainted with the ins and outs of your designated target market legend a market analysis must be completed. A market analysis is a documented examination of a market that is used to enlighten a business’s preparation activities surrounding decisions of inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, and to improve daily operations and many other aspects of a business. Once you have done your market analysis, in detail; describe your preferred target market. Your description should include the information you have gathered during your market analysis.

Target audience for hotel industry depends upon the types of tourists or guests they render service to. There are 4 basic types of tourists and the types of hotels target these tourists as their potential guests are as under.

Four Basic types of tourists

1. Heritage tourists (culture, architecture, history)HOTELS PREFERED Heritage hotels, City center, Rotels, boatels, semi residential.

2. Rest tourists HOTELS PREFERED

Resort, Floating, Boatels, Ecotels, Spas, Residential, Semi residential

3. Experience tourists (to see people in other land) HOTELS PREFERED Budget, mid-market, transient, airport hotels, city center

4. Special purpose tourists (Health, Education, Sports, Gambling, Business, Religion, etc.) HOTELS PREFERED

Health: Spa, Luxury, Semi residential, Residential Gambling: Casinos, Mega and Large hotels, Luxury Sports: Motels, Budget Hotels, Semi residential, Air port hotels, [for international sports]: Large, Luxury, 4-5 Star Education / Research: Residential hotels, semi residential, budget, Mid market, conference (big education institutes) Business: Suite, Conference, Commercial, Air port, Boutique, Transient, Luxury.

Religion: Budget, Inns, Medium sized, Transient, Semi Residential,

INDIAN HOTEL INDUSTRY

Over the last decade and half the mad rush to India for business opportunities has intensified and elevated room rates and occupancy levels in India. Even budget hotels are charging USD 250 per day. The successful growth story of 'Hotel Industry in India' seconds only to China in Asia Pacific.

'Hotels in India' has supply of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2010 – to accommodate 350 million domestic travelers. 'Hotels in India' has a shortage of 150,000 rooms fueling hotel room rates across India. With tremendous pull of opportunity, India is a destination for hotel chains looking for growth. The World Travel and Tourism Council, India, data says, India ranks 18th in business travel and will be among the top 5 in this decade. Sources estimate, demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity, 'Hotel India' room rates are most likely to rise 25% annually and occupancy to rise by 80%, over the next two years. 'Hotel Industry in India' is eroding its competitiveness as a cost effective destination. However, the rating on the Indian Hotels' is bullish. 'India Hotel Industry' is adding about 60,000 quality rooms, currently in different stages of planning and development and should be ready by 2012. MNC Hotel Industry giants are flocking India and forging Joint Ventures to earn their share of pie in the race. Government has approved 300 hotel projects, nearly half of which are in the luxury range. Sources said, the manpower requirements of the hotel industry will increase from 7 million in 2002 to 15 million by 2010.

With the USD 23 billion software services sector pushing the Indian economy skywards, more and more IT professionals are flocking to Indian metro cities. 'Hotel Industry in India' is set to grow at 15% a year. This figure will skyrocket in 2010, when Delhi hosts the Commonwealth Games. Already, more than 50 international budget hotel chains are moving into India to stake their turf. Therefore, with opportunities galore the future 'Scenario of Indian Hotel Industry' looks rosy.

HOTEL BUSINESS PLAN

When it comes to starting a hotel business you will need to set up a business system. This system is the way you plan on running your business so that your customers will be totally satisfied with your service and want to visit your establishment again and again.

When it comes to starting a hotel business you can start it in several ways. You can buy an existing business, you can buy into a franchise or you can start it from scratch.

When it comes to buying a business from someone else. You have to consider if you are getting a good deal or not. You also have to consider why are they selling this business of theirs.

Buying into a franchise to start a hotel business. Can have its ups and downs as well. You will have to pay a large amount to start it and you will have to pay a yearly franchise fee. But on the other hand a franchise business is usually well know. And they have already put together a business system that works.

Starting a hotel from scratch can have its ups and downs as well. If you are starting a hotel business in a location where you have to have your business built from the ground up, can be costly.

Or if you plan on turning some other type of business in a hotel business. There will be a lot of work to do to get your business started.

The day to day operations of your Hotel Business can be overwhelming, if you don't have some type of system.

Hotel Business Plan System

A Hotel Business Plan System is what makes a business run in an expedient manner.

You will need to create a Business System that will work for your Hotel Business.

A Hotel Business Plan System is the way you operate your business. This system should include a plan of operation for every aspect of your Hotel Business.

The First System

The first part of your Hotel Business Plan System should include how you will run the day to day operations of your Hotel Business.

The Second System

The second part should include all of the equipment you will need to operate your Hotel Business.

This part should also include the day to day operations and the maintenance that should be done on your equipment. This part should also include the preventive maintenance on this equipment, as well.

The Third System

The third part of your Hotel Business Plan System is that, you are going to have to figure out how you are going to pay for your Hotel Business.

Are you going to self finance it or are you going to borrow the money from your friends and family? Or are you going to use your credit cards? Are you going to obtain financing from a bank?

The Fourth System

The fourth part of your Business System is figuring out where yourHotel Business will be located. Are you going to rent or lease a business location? Are you going to buy a building for your business?

Before you actually start your Hotel Business, it is best that you take time to figure out if this is the type of business for you and your future.

Starting a business can be hard work. But chances are once it is successful all of the initial planning will all have been worth while.

Writing your own Hotel Business Plan will help you understand why you want to be in business for yourself.

It will also help you to be one step ahead on your business planning. If you don't take care of your business, who do you think will do it for you?

Instructions

1. Determine the type of business your want to attract: tourists or corporate. Determine the location where your hotel might best succeed. If you want a hotel that caters to vacationers then consider popular tourist destinations such as hill stations (high altitude resorts); Delhi, the nation's capital; in a desert area like Rajasthan, or south India, Maharashtra, Goa, Daman or Diu. A hotel can flourish very well in Mumbai which is both a commercial hub as well as a tourist location.

2. When selecting the location consider logistics. For better customer service, the hotel should be near a railway station, bus stand or airport and shopping. If you would like to have a location that is away from the city center then make sure it is well connected to a major city through convenient transportation.

3. Evaluate the space you'll need. A hotel with 70- to 120-rooms would require an area of approximately 10,000 to 60,000 square feet. This area also depends on if you are constructing a 3-star or 4-star hotel. For a 100 room 5-star hotel, you should have a land of up to 100,000 square feet with the room size averaging 220-280 square feet. For more details see Reference 1.

4. Hire an architect and engineer who would plan the layout of the hotel. You should have an interior designer or consultant who could guide you through the most intricate aspects of the business and how to attract clients. You can hire a local builder or a company that can provide all the services of planning layout, designing and interior decoration. There are various sources to find these experts through media advertisements, online websites etc.

5. Arrange the loans from the banks. Both the private as well as nationalized banks are ready to give loans. Keep in mind that 30 per cent of the capital you are investing should be your money while rest you can borrow from the bank.

6. Hire an agency to get the market survey conducted regarding the business prospects within a 2-10 km radius. An agent could make an analysis of the average market share within the prescribed area and the trends and social life of the prospective clients.

7. Conduct a market survey to compute the rates existing in the hotel industry in the area. Fix rates of the rooms less than your competitors' yet provide quality rooms and services. Market survey can be conducted on your own or through an agent.

8. Obtain licenses. Most of these require renewal process every year. The most important licenses are for lodging, water and sewage, liquor, food, etc. You'll need a license from the Pollution Control Board and one for live performances, if you have entertainment. Check with local officials to make sure you have all your licenses in order, from elevator operation to fire codes.

9. Get the necessary equipment for the day to day operation from hotel supply companies that can be found throughout India. There's a list of hotel supply companies that you can find at the India Mart website.

10. Hire the staff which includes customer care executive, manager, housekeeper, waiters, sweepers, cleaners and washers. There are many hotel management schools throughout India. The website www.Indiaedu.com provides a list of the top management schools in the country. Most of the senior staff such as hotel managers, senior chefs, and even customer care executives are products of hotel management schools. Junior staff like housekeepers, waiters or sweepers, can be obtained through job placement agencies or by placing an advertisement in newspapers or other local media.

11. Rate your hotel through the Indian Tourism Board, according to the 1-, 2-, 3-, 4-, 5-, or 5 deluxe star system.

12. Market your hotel by adopting various promotional means. You can either advertise through all forms of local, national or international media, or eventually through word of mouth.

LOCATION OF THE HOTEL

The hotel will be located near the habibganj station in Maharana Pratap Nagar in Bhopal.

NAME OF THE HOTEL:

HOTEL ARERA- “ek bar aayenge, toh bar-bar paenge”

CAPITAL REQUIRED

The capital required for starting the hotel in the locality, it will be require

about 1.5 to 2 crores.

Product & services Available

Laundry service

24 hour service

Safe deposit lockers

Cyber café

Business center

Travel desk

Foreign exchange service

Doctor on call

Boutique

Horse riding

Tennis and table tennis

Spa

Swimming pool

Direct dial telephone facility

Credit card accepted

Billiard room

Health club

Book shop

Parking at owners risk

Postal services

Car hire service

Flowers can be organized at request

Baby sitting

Banquets

vegetarian

Restaurant & bar

Online booking

UNIQUE SELLING POINT OF THE HOTEL

The unique selling preposition of the hotel is the cheapest rate and delivering of maximum product and services. The hotel will be having less prices for all services (shown in above table) comparing to the competitors.

FINANCIAL & TECHNICAL ANALYSIS

1. The cash in hand with us is 1.5 crores.

2. 1 crores will financed by the bank as a loan.

3. The following product and services are done on the contract basis:

Laundry sevice Cyber café Foreign exchange service Flowers can be organized at request

4. Sources of income:

Sales of services Commission by agents Service tax Interest on bank deposits

5. Expenses :

Purchasing of materialWorking capital expensesDelivery service expensesMaintenance expensesLabour cost expensesAdvertising cost expensesTaxes expensesInsurance expenseElectricity expense

Energy and water expensesReservation expensesCleaning expensesLaundry expensesGuest transportation expensesLinen expenses: towel, face cloth, blankets, pillow etc. expenses

Guest supplies expenses: Newspaper expenses, Guest stationary expenses, Shoe cloth expenses, Coffee expenses, writing supplies expenses, Toilet requisites expenses, Flowers expenses, Hangers expenses, Matches expenses Ice expenses, Candy expenses.

6. Food & Beverage expenses

7. Telephone expenses

8. Administrative & General expenses

Hotel departments:1. Rooms Division Department: It is the place where guests receive several kinds of services ranging from reservation, registration, to checkout and settlement of their accounts. This department typically compromises a Rooms Division manager, an assistant manager(s), registration clerks, cashiers, mail and information clerk, and uniform service personnel.

2. Food & Beverage Department: This department is responsible for the preparation and service of food and beverage to guests. It compromises the kitchen, restaurants, bars, and any premise in which Food and Beverage is served.

3. Telephone Department: This department is responsible to handle guest communication. This might be insured through connecting guests to desired locations, whether in-house, local or long distance calls. Moreover, this department is usually composed of a chief operator, supervisors, operators, and messengers. Last, with the automation revolution affecting right now most hotels, it became possible to separate calls of guests and communication handled by hotel employees, therefore, making it possible to have the telephone department as a minor revenue generating department. For, prior to automation, the separation of cost of calls was not possible and hence the telephone department might show frequently a loss since telephone direct costs are overstated.

4. Administrative & General Department: Actually looking at any hotel organization chart, Administrative and General Department (referred usually as A&G) does not exist. It is however a financial reporting centers including executives of the Hotel (ex: General Manager, Assistant General Managers…) and other employees involved with executive and financial activities (ex: Accounting personnel, resident Manager, Accounts Receivable clerks, Night Auditors…). Moreover, if there is staff in the hotel not included in departments due to low business volume not justifying the establishment of a department, they might be included under the A& G department (ex. Data Processing Staff, Transportation Staff, and Personnel Staff…).

5. Marketing Department: This department is composed of a marketing manager, marketing assistant managers responsible for sales, convention, public relations, and advertising functions, along with marketing personnel. This department is a cost center that indirectly supports revenue generators in their sole aim of generating hotel revenue. This can be insured, for example, through large group reservations, hence maximizing room revenue, or buffet, conference, and catering opportunities brought by this very department hence maximizing room revenue, F& B revenue, and the hotel revenue as a whole.

6. Property, Operation and Maintenance (POM): Concerned with the appearance and physical condition of the building, the repair and maintenance of equipment, and rubbish removal. Some positions of this department might include POM manager, POM assistant manager(s), electricians, plumbers, gardeners, painters, and interior design specialists…

7. Data Processing Department: This special department might be established in hotels operating under the fully automated system. Moreover, such hotels should

have significant investment in computer equipment and staff to justify the establishment of a single department. If these conditions do not exist, than the Data Processing functions would be financially grouped under Administrative & General Department.

8. Human Resources Department: Similar to Data Processing Department, if the Dollar Amount and Staff incurred for employees' hiring, screening, interviewing, selecting, recruiting, and Training is significant, than a Human Resources Department may be established. Otherwise, Human Resources functions would be financially grouped under Administrative & General Department

9. Guest Transportation Department: If the Dollar Amount and Number of Staff employed in the transportation of Guests is significant, a separate Department might be established. Otherwise, guest transportation staff would be grouped under Rooms Division Department.

Financial Reporting Centers:

A Financial Reporting Center is an area of responsibility for which separate Cost Information must be collected

Might be classified as Revenue Centers, Support Centers, and Other Financial Reporting Centers

1. Revenue Centers Generate Revenue through sales of Products and/or Services to Guests

Rooms Food and Beverage Telephone Gift Shops Garage and Parking Other Operated Departments Rentals and other Income

2. Support Centers those departments that have minimal Guest Contact and do not produce Sales. Yet, they do provide services to Revenue Centers, which, in turn, provide Services to Guests

Administrative & General Marketing Property Operation and Maintenance Data Processing Human Resources3. Other Financial Reporting Centers include Energy Costs and Fixed Charges (Rent Expense, Property Taxes, Insurance Expense, Interest Expense, Depreciation and Amortization Expenses)

Each Financial Reporting Center should be assigned an Identification Number. To illustrate, consider the following Example:

Financial Reporting Center Identification Number

Rooms 11

Food and Beverage 15

Telephone 17

Administrative & General 31

Marketing 36

Property Operation and Maintenance 38

Energy Costs 41

Fixed Charges 51

Responsibility Accounting:

Aim provides Financial Information useful in evaluating the effectiveness of Managers and Department Heads. That's why only Direct Expenses should be charged to Specific Departments

1. Expenses include the day-to-day Costs of Operating the Business, the Expired Costs of Assets through Depreciation and Amortization, and the "write-off" of pre-paid items. Expenses are classified as Direct expenses (Cost of Sales and Operating Expenses), Indirect Expenses (Fixed Charges and Undistributed Expenses) and Income Taxes

a) Direct Expenses they are Costs incurred solely for the benefit of a particular Department

Cost of Sales Payroll Expenses Payroll-related Expenses Operating Supplies China, Glassware, Silver, and Linen Laundry and Dry Cleaningb)c) Indirect Expenses They are incurred for the benefit of the Hotel as a whole,

and cannot be identified with any particular Department Property Insurance Interest Expense Property Taxes FIXED CHARGES

Rent Expense Depreciation and Amortization

Marketing Expense Administrative & General Expenses UNDISTRIBUTED EXPENSES Property Operations and Maintenance Energy Costs

d) Income Taxes it is neither a Direct Expense, nor an Indirect Expense. It should appear as a separate Line Item on a Hotel's Summary Income Statement

2-Departmental Expense Accounting:

Separate Expenses versus one Lump-sum Amount of Expenses

IV-Payroll and Payroll-related Expenses:

1. Salaries and Wages (Payroll Expense) Includes Salaries, Wages, Overtime Pay, and any Employee Bonuses and Commissions

2. Employee Benefits Include Vacation and Holiday Pay

3. Payroll Taxes Includes Social Security Taxes (Employer's Portion)

4. Employee Meals Includes the Cost of Food furnished to Employees as a convenience to the employer

5. Worker's Compensation Insurance Includes the Expense of Worker's Compensation Insurance

6. Employee Group Plans Includes Life and Health Insurance, and Other Forms of Employee Group-plan Fringe Benefits

ROOMS CATEGORIES & RATES

I. TOWER WING ROOMS - 5000- II. SUPERIOR ROOMS - 4750

III. DELUX ROOMS - 4500 IV. ARERA CLUB ROOMS - 3750 V. EXECUTIVE SUITES - 4000

VI. LUXURY SUITES - 4250 VII. WING ROOMS - 2000

VIII. LUXURY GRANDE ROOMS - 2500 IX. ARERA ECONOMY ROOMS - 1000

COMPETITORS:

Noor-us-sabah Palace

Jehen-numa Palace

Hotel Pukhraj

Hotel Tulsi Exotica

Hotel Nisarga

Hotel Samrat

Hotel Savera-Inn

Hotel Lake View Ashoka