Abreham Five Star Hotel

PROJECT PROPOSAL ON G+8 FIVE STAR INTERNAT INVESTMENT HOTEL
PROJECT PROPOSAL ON
FIVE STAR INTERNATIONAL
INVESTMENT HOTEL
PROJECT LOCATION: -CENTRAL ETHIOPIA

REGIONAL STATE HALABA ZONE,
HALABA TOWN
PROMOTED BY: ABRAHAMTEKELE,

FERAOL BEKELE, MADEKSA FITE
PHONE: 0922195611
HELABA-ETHIOPIA
FEB, 2024
BY: BRIGHT STAR MANAGEMENT AND ENVIROMENTAL COLSTUNCY PLC

1
PROJECT PROPOSAL ON FIVE STAR INTERNATIONAL INVESTMENT HOTEL
Contents
Basic Information.......................................................................................................................4
1. EXECUTIVE SUMMARY...............................................................................................……5
2. INTRODUCTION.............................................................................................................…….8
2.1. Investment in Ethiopia.................................................................................................8
2.2. Hotel and Tourism sector in Ethiopia..........................................................................9
2.3. Promoter Background................................................................................................10
2.4. Ambition of creating the hotel project.......................................................................10
2.5. Purpose and Amount of Loan....................................................................................11
3. The Project......................................................................................................................….12
3.1. Project description and Justification..........................................................................12
3.2. Project Objective.......................................................................................................12
3.3. Project location and justification...............................................................................14
3.3.1. Location..............................................................................................................14
3.3.2. Climate...............................................................................................................14
3.3.3. Demographics:...................................................................................................15
3.3.4. Infrastructure and economic status.....................................................................15
4. MARKET STUDY..........................................................................................................…..18
4.1. General Overview......................................................................................................18
4.2. Present supply in Addis Ababa..................................................................................19
4.3. Demand for hotel services.........................................................................................21
4.4. Demands Evaluation Mechanism..............................................................................23
4.5. Pricing.................................................................................................................25
4.6. Capacity and service programme.............................................................................25
4.6.1. Capacity........................................................................................................25
4.6.2. Service Programme......................................................................................26
4.7. Marketing strategy.....................................................................................................26
4.8. Competitors Overview...............................................................................................27
5. TECHNICAL STUDY....................................................................................................……28
5.1. Design and particulars...............................................................................................28
5.2. Physical appearance...................................................................................................28
5.3. Core facilities.............................................................................................................28
5.4. Hotel Furniture and Equipment’s..............................................................................33
5.5. Inputs/ raw materials and utilities..............................................................................34
5.5.1. Raw Material cost..............................................................................................34
5.2.2. Utilities...................................................................................................................34
5.6. Machinery and equipment.........................................................................................35
5.7. Land, Building and civil work...................................................................................43
5.7.1. Land lease...........................................................................................................43
5.8. Environmental impact assessment.............................................................................44
5.9. Implementation Schedule..........................................................................................45
6. ORGANIZATIONS AND MANAGEMENT.................................................................46
6.1. Organizational Structure............................................................................................46
6.2. Management..............................................................................................................47
6.3. Manpower Requirement............................................................................................47
6.4. Training Requirement................................................................................................48
7. FINANCIAL STUDY.....................................................................................................49
7.1. Classified Investment cost.........................................................................................49
7.1.1. Fixed costs..........................................................................................................49
7.1.2. Operational cost costs........................................................................................51
Summary of Operational cost...........................................................................................53
7.2. Project Capital and financing....................................................................................54
7.2.1. Project Capital....................................................................................................54
7.2.2. Financing............................................................................................................54
7.3. Revenue projection....................................................................................................57
7.4. Financial statements..................................................................................................58
7.4.1. Projected Profit/loss statement...............................................................................58
7.4.2. Projected cash flow statement...............................................................................59
7.4.3. Balance sheet......................................................................................................60
7.5.3. Viability and other measurement.......................................................................61
8. SENSITIVITY ANALYSIS............................................................................................63
9. RISK ANALYSIS...........................................................................................................63
10. MONITORING AND EVALUATION..........................................................................65
11. CONCLUSION AND RECOMMENDATION..............................................................65
Executive Summary
KEY INFORMATION HIGHLIGHTS
PROJECT TITLE Five star International Hotel
PROJECT OWNER Abreham Tekele Banti,Firaol Bekele Bulcha and Mideksa Fite Yadeta
LAND REQUIREMENT 1.5 Hectares (5,000 M2)
PROJECT AREA Central Ethiopia Region Halaba town
PRODUCTION CAPACITY Five star International Hotel

SERVICES TO BE International standard tourist hotel is high class hotel
RENDERED where services like standard bedroom, catering,
conference hole, Spa (Hot Spring), gymnasium, sauna
and massage, other sports facilities like tennis or squash
court, min-golf or badminton, bowling, table tennis and
children playground, night club with dancing to live
music or discotheque or cabaret etc
MARKET For Domestic and International Trader/user
COST OF THE PROJECT For implementing this project a total of 106,571,628 birr is required.
From this total investment capital, 68,793,341.76 birr will be used for
fixed investment while 37,042,568.64 birr will be used for working
capital. from this 30% or 32,071,488 birr will be covered by the promoter
of the project while the rest 70% or 74,500,140 birr will be covered by the
financial institutions.
EMPLOYMENT 125 PERMANENT SKILLED AND 75 LABOURERS
CREATION
PROJECT LIFE 10 YEARS
NUMBER OF WORKING 365 DAYS
DAYS
FINANCIAL VIABILITY ( AT 10% DISCOUNT RATE )
NPV (NET PRESENT VALUE) 101,439,417.00 BIRR

IRR (INTERNAL RATE OF RETURN) 34.13%
PBP ( PAY BACK PERIOD) 8 year and 9 month
ANALYSIS RESULT
The Project Is Technically Feasible, Financially And Commercially Viable As Well As Socially And Economically
Acceptable. Hence, The Project Is Worth Implementing.
1. Background Of The project
The project feasibility study proposed on 5 star international tourist hotel

investments has been promoted by promoters in Central Ethiopia Region. Halaba
zone ,Halaba town . Halaba is a fast growing regional economic center and the
capital of Ethiopia
Ethiopia is one of the fastest growing economies in Africa and often cited as an attractive
destination by business leaders because of its 90m population and vast agricultural resources.
Though, the country's has fertile national parks, 3,000 year-old archeological history and nine
UNESCO world heritage sites are also a big attraction for tourists. Ethiopia has a significant
shortage of quality hotel rooms. There are only limited numbers of five star hotels, likely
only 5. This is set to change by other players seeking to enter the market.
Though, the country's has fertile national parks, 3,000 year-old archeological history and nine
UNESCO world heritage sites are also a big attraction for tourists. Ethiopia has a significant
shortage of quality hotel rooms. There are only limited numbers of five star hotels, likely
only 5. This is set to change by other players seeking to enter the market.
Due to this reason In mid 1990s, lack of hotel infrastructure in the city was a fact well
exploited by those who wanted to see the OAU relocated permanently to elsewhere in the
continent. Until the case was once and for all settled with the African Union Constitutive Act
of article 24/1 which declared “the headquarters’ of the Union shall be seated in Addis Abeba
in the Federal Republic of Ethiopia,” there had been at least four attempts to move the seat of
the continental body out of Addis Abeba, Ethiopia
Whilst the country had been busy experimenting with an array of political ideology from
feudalism to socialism to revolutionary democracy, chosen by successive governments since
the late 19th and early 20th century, the hotel industry throughout the country remained
regrettably muted. Even the onset of Sheraton Addis, the first hotel in the entire continent to
join the luxury collection, failed to inspire an immediate follow up.
Based on these premises and the boom tourists market in the country and additional Ethiopian
Airlines service that link Africa with the world leads to basic research on hotel sector of the
country. Finally a research has been done by a researcher of Awash International Bank team
for market projection demand for hotel nights will hit more than 1.3m in coming years. But
the East African nation, Ethiopia currently only has just three international hotel
brands, namely Sheraton, Hilton and Radisson Blu.
This is set to change following announcements at AHIF by other players seeking to enter the
market. Some of the new hotels, which are entering to these markets become increasing even
if it the rate of business in the sector is not satisfactory relative to the hotel
market gap.
Ramada Addis, is one of the fourth international hotel brand to launch in
“one of the most vibrant and economically robust cities of Africa” will have
an impact both on employment and investment.
At the meantime, Marriott International also plans to expand its hotel
business into Ethiopia, as well as grow its footprint in countries such as
South Africa, Nigeria, Uganda, Ghana and Rwanda. It recently acquired
South Africa’s Protea Hotel Group. This first Hotel in Africa will give a multi
fold advantage over the other east African hotel business as well as African
countries at large.
The Ethiopian government has for the past few years taken various steps to
encourage Ethiopian investor community to play an active role in the
development of their home country. The country's fertile national parks,
3,000 year-old archeological history and nine UNESCO world heritage sites
are also a big attraction for tourists. The Ethiopian government now wants
to triple this number to more than 2.5 million each year by 2020, making
tourism the leading sector in one of Africa's fastest growing economies.
Tourism, which earned the country $2.9 billion in the 2014/15 fiscal year
according to government data, contributes about 4.5 percent of the
country's GDP and generates about a million jobs according to the World
Bank. Ethiopia plans to boost revenue from the sector to over $3.5 billion in
the current fiscal year, which will be bigger than its more tourist established
neighbors Kenya and Tanzania.
Ethiopia's cultural wealth like its 13th century underground churches of
Lalibela, hewn from solid rock and the hill castles of Gondar are its big
selling point. It's also grown more and more popular for travelers as it's a
safer and affordable destination.
The country has embarked on massive infrastructure spending that saw
Africa's first light train cutting though the sprawling city of Addis Ababa
launched in last September. This has a continuation construction of a train
route from Addisto Helaba town, which is 325 km away from Helaba town,
where our hotel is located. With the spirit of all these, growing number
Tourists, Big Conferences, international meetings and the favorable
situation of the infrastructure construction development in the country with
annual GDP growth, which will fueled the number of new construction
hotels as part of the plan to make Ethiopia as one of the top five tourist
destination in Africa by 2025.
Despite an increase in the number of tourist arrivals, however, this strategic
target “seems unlikely to be achieved with the current rates of inbound
tourist arrivals in the country,” So, taking this demand and supply gap
analysis and the country future opportunity with the new boosting tourism
business in the country the sector is still in of need additional investment in
the hotel sector.
Taking an opportunity of tourism and the study analysis carried out for this
market situation and other national opportunity our company take part an
Project justification: International standard tourist hotel is high

class hotel where services like standard bedroom, catering, conference
hole, Spa (Hot Spring), gymnasium, sauna and massage, other sports
facilities like tennis or squash court, min-golf or badminton, bowling,
table tennis and children playground, night club with dancing to live
music or discotheque or cabaret etc.
The project
The envisaged project is the development of hotel services in Halaba Town, Halaba zone of
Central Ethiopia regional State. The development of resort in the country is now gaining
momentum as more focuses are being given to the sector. Beyond the envisaged perceptions,
development of standard resort facilities in all towns of the country in general and the region
in particular would enhance the development of domestic and foreign tourist flow in all areas
of the country as the country is endowed with numerous historical and natural tourist
attraction sites
Expected Standards of Five Star Hotels
As a Five star Resort is the lowest level of international standard Resort , expectations at this
level include a degree of luxury as well as quality in the furnishings, decor and equipment, in
every area of the Resort. Bedrooms will also usually offer more space than at the lower star
levels, and well designed, coordinated furnishings and decor. The en-suite bathrooms will
have both bath and fixed shower. There will be a high enough ratio of staff to guests to
provide services like porter age, 24-hour room service, laundry and dry-cleaning. The
restaurant will demonstrate a serious approach to its cuisine.
Required notifications in Five star designated hotels
The following notifications required due attentions in Five star designated Resort.
Restricted Service
Some Resort operate a restricted service during less busy months. This may be a reduction of
the restaurant service, or some leisure facilities may be unavailable. Please check when
booking.
No Dogs
No dogs allowed in bedrooms. Guide dogs for the blind may be accepted as an exception to
this rule. However, even where hotels allow dogs, they may exclude some breeds, and may
exclude dogs from certain areas of the hotel, especially the dining room. It is essential to
check the conditions before booking.
Night Porter
At some hotels, the night porter may be there only between certain hours or on certain
nights . However, four- and five-star Resort s must have a night porter always on duty.
Entertainment
This indicates that entertainment should be available at least once a week throughout the year.
However, some hotels may provide entertainment in the summer season or at other specified
times.
No children
This indicates that children cannot be accommodated. A minimum age may be specified (e.g.
No children 4yrs - no children under four years old). If this does not appear in the entry, it
means that the hotel will accommodate children, but may have no special facilities for them
(e.g. no cots or high chairs). It is essential to check when booking.
Special Facilities for Children
This shows that establishments with special facilities for children, which will include baby
intercom or possibly baby-sitting, playroom or playground, laundry facilities, drying and
ironing facilities, cots, high chairs and special meals.
Conference Facilities
This denotes that conference facilities are available with maximum numbers that can be
accommodated theatre style; classroom style; boardroom style and the minimum overnight
delegate rate.
Facilities for Travelers with Disabilities
Intending guests with any form of disability should notify proprietors in advance so that
arrangements can be made to minimize difficulties, particularly in the event of an emergency.
Meals
Details of the style of food, last dinner orders, and likely price range are given. If there is a
fixed-price menu or menus, this is the price range quoted. V meals indicates that a choice of
vegetarian dishes is normally available.
In some parts of Britain, particularly in Scotland, high tea (i.e., a savory dish, followed by
bread and butter, scones, cake, etc.), is served in the early evening instead of dinner.
However, the alternative of dinner may be available on request. The last time at which high
tea or dinner may be ordered is shown, but there may be some variation at weekends. On
Sunday some hotels serve the main meal at lunch time, and only a cold supper in the evening.
Morning Coffee/Afternoon Tea
Indicates that morning coffee and/or afternoon tea are served to chance callers. All four and
five star Resort s serve morning coffee and, normally, afternoon tea to resident guests.
Credit and Charge Cards Other Payment
The payment policies of hotels should be made clear to patrons on the point of booking. Not
all hotels will accept travelers’ cheques, even those from leading banks and agencies. If a
hotel accepts credit or charge cards, the information is shown in its entry. It is advisable to
publish and notify customer the policy regarding the use of credit cards.
Booking and cancellation procedures
These should be noted to all customers, inclusive of confirmation numbers. The cancellation
policies of the facility also have to be clearly stated.
Complaints
A crisis management procedure is a must especially in the case of guest complaints. Fire and
bad weather
Smoking Regulations
Hotel should state clearly its policy on smoking. Ensure that where smoking is allowed there
are designated areas for non-smokers inclusive of rooms away from smokers.
License to Serve Alcohol
Most Hotels and Resort s other accommodations with bars are licensed to serve alcohol. On
many properties this permission is clearly stated on entry to the bar area. Where there are
exclusions for minors under 18 or 21 this should be pointed out to the relevant patrons.
The demand and supply of hotels and its bed rooms service in Halaba
city has high gab the supply of Heleba town has a quality hotels and a
total of 90 bed rooms currently in the market, giving an average
number of 30 rooms per A B R A H A M T E K E L E B A N T I , F E R A O L B E K E L E
BULCHA a n d ,MADEKSA FITE YADETA f i v e s t a r hotel. Branded
supply is very low; due to this demand and supply analysis hotel
wants to participate and minimizes the gab of demand and supply
standard hotel in Halaba zone.
In this profile study a Five star international tourist standard
hotel is considered to following provides:-
 10 King size luxury rooms, 20 standard double bed rooms and 50
single standard bed rooms totally 80 standard bed rooms
services
 International and national restaurant service
 Standard bar and cafeteria
 Standard massage and sauna bathe service

 Physical fitness room
 Conference hole and others important needs
The total area of the 5 star international tourist hotel

investment is about 15000 meter square The area covered and
develop the following infrastructures such as main building hotel
service and, store, gourd house, , parking area and other
necessaries facilities
The total investment capital of the project is estimated at birr

106,571,628of which birr 68,793,341.76 (65%) is for fixed
investment cost of which 65 % of the fixed cost is need foreign
currency while the remaining balance of birr 37,042,568.64 (35%)
will be working capital.
Profitability: The financial analysis of the envisaged project is
carried out for the following ten years. Based on the 10 years
financial projections using the income statement, cash flow
statement and financial internal rate of return (FIRR), the following
results are obtained.
 Income statement: According to the projected income

statement, the project will generate profit beginning from the first
year of operation. Based on the 10 years financial projections the
projects average annual net profit after payment of bank interest,
depreciation and tax amounts to birr 16,593,732
 Cash flow statement: The cash flow statement also shows a

substantial amount of cash surplus right from the first year of
project operation life. The cash balance grows from birr
27,685,936 in the first year to cumulative balance of birr,
394,396,352 during the 10th year of operation indicating the

capacity of the project to finance itself and generate cash
surplus for further investments.
 FIRR Computation: The computation of the project FIRR

shows that the project will profitably generate reasonable
return on investment. Before tax financial internal rate of
return is calculated to be 33.9%. This indicates the project is
financially viable with an internal rate of return (IRR) of 33.9
% and net present value (NPV) 102.2 million at discount rate
35 %.
 Socio economic benefits: The socio economic benefit of the
project is also very high. The project will provide:- 125
permanent employs, Generate revenue to government in the
form of taxes, Facilitate and give a good service for local and
international tourists
 Conclusion and recommendation: The Project is found
to be operationally profitable, viable & has significant
socio-economic benefits. We recommended that according to
this attractive financial and economic benefit of the project
all concerned offices & financial institutions should give their
support to facilitate the implementation of this plan.

2. INTRODUCTION
2.1. Investment in Ethiopia
Ethiopia is now becoming more and more investment friendly country. The
Government is creating favorable condition that would highly encourage the private
Sector to be engaged in almost all areas of the economy. The country with
population of come 80 million offers significant domestic market for locally for
Locally produced goods and service the country is also a member of the
common Market for eastern and southern Africa Comesa offering huge benefit of
Exporting commodities in preferential tariff rates to a wider regional market.
Privet investment should be encouraged to increase form year to year and Investment
constraints have to be alleviated in order to pave development ways so that
investment sector happens to be determinant about factor of economic development
of the country like Ethiopia. It is usually considered as the engine of the economy
.both private and government Bodies in many ways have commonly agreed this
idea
.economic development in Any case needs both efforts of the privet as well as the
public sector. There are Investments that could not be undertaken by privet sector
due to its difficult nature I. e high initial capital and long gestation period.
However, the passed command economy system and the lack of experience between
both sides have made it so hard for a private sector to flourish. But now a day as
Ethiopia follows free market economy ‘the roll of private sector for the achievement
of the economy policy. Accordingly, the Ethiopia federal democratic government is
encouraging investors to invest their records to contribute to the development of the
country in all sectors by avoiding all barriers and facilitating all the mince for the
investment
2.2. Hotel and Tourism sector in Ethiopia
Ethiopia has vast potential for development of various economic sectors. Although
agriculture is the mainstay of the country’s economy the opportunity to invest in other
sectors especially in Hotel, Tourism and various recreation activities are there.
Although Ethiopia is endowed with many natural and manmade tourist attractions,
these resources have not been sufficiently exploited. The country’s geographical
location and the remarkable physical features and climate have endorsed it with rich
and varied natural heritages. Despite considerable demand, tourism sector remains at
relatively low stage of development.
The Hotel and recreation service facilities in Ethiopia have been found at a lower
level of development. The number of Hotel service establishments in the country has
remained insignificant to respond to the customer’s demand. Only few Hotels have
the capacity or quality to provide good accommodation and catering facilities to
fulfill tourists need. There are only few hotels in the Halaba town, and other big
towns of the region states that organized on international standard to fulfill the
consumer’s needs.
The government of Ethiopia has devised a long term strategy that gives due regard to
the preservation, development and promotion of the country’s tourist attraction. This
includes plan for expansion of tourist facilities and the necessary infrastructure.
Indeed in the wider sense the country has a good potential for the development of
high standard hotels, recreation and market center and there is a growing realization
that this sector holds a significant development perspective, which should be fully
exploited in the planned and controlled manner.
In adopting a planned and regulated approach the country is in a

position to expand its hotel and tourism sector in a way that
emphasizes environmental conservation and enhances the quality of
the overall tourist experience. This will contribute substantially
towards improving the standard of living and the quality of life of the
population.
The past trend shows that no any high standard hotels and
recreation centers are concentrated in the Helaba town. The
number of hotels and recreation service facilities in other regions
of the country has remained insignificant to respond to the
customer’s demand. Only few hotels and recreation centers out of
Halaba zone have the capacity to provide accommodation for mid
or high-class guests.
By taking this encouraging as an opportunity the promoter project
plan to establish 5 star international/tourist Hotel service in
Helaba zone Heleba town for the benefit of the promoter, the
district community as well as the country as a whole.
2.3. Promoter Background
The promoter, has a work experience in hotel and management

business activities. During this time, the promoter gained a vast
knowledge and skill. With this reliable experience, promoter’s
knows how to manage and lead any organization to profit and
also know how to handle different challenges in the working
environment. Moreover promoter‘s has a very good reputation
with banks and different financial organizations.
2.4. Ambition of creating the hotel project
According to the preliminary market research, the demand for

hotel service is very high and yet the supply is limited leaving a
huge service gap to the customer. Unfortunately there is no
saturated standard hotel (5 stars) in the area. Although few less
than five star hotels have already working in the area, but still
huge gap is there in between demand and supply in the town. The
service (5 star hotels) is widely accepted in Helaba town
administration employees, Private employees, Tourists, local
customers, and to some extent even in rich house-holds. So there
is good scope for establishing the units for establishing and
maintain 5 star standard /international and tourist hotel service
in Halaba town as well as in the country. Due to this, it has
become imperative to build and maintain 5 star standard hotels
service for the mankind in prevailing conditions.
2.5. Purpose and Amount of Loan
Purpose and amount of loan requested: The purpose of the loan is to import
machineries and purchasing steel for building construction. Beside this the
promoter believes that, the loan will strengthen the relationship between the
investor and the bank. Furthermore, the investor gets strength to advance to
various viable economy sectors in the country.
The source of the project finance is from the promoter’s equity and bank loan. Out of
the total investment capital of birr 105,835,910.4 birr 32,071,488 (30%) is to be
contributed by the promoter while the remaining balance of 74,500,140, (70%) is to
be covered by the local bank
3. The Project
3.1. Project description and Justification
International standard tourist hotel is high class hotel (from three to five- star
level) where services like bedroom, catering, meeting rooms, multipurpose
assembly hall, swimming pool, Spa (Hot Spring), gymnasium, sauna and
massage, other sports facilities like tennis or squash court, min- golf or
badminton, bowling, table tennis and children playground, night club with
dancing to live music or discotheque or cabaret etc.
A hotel is an establishment that provides paid lodging on a short-term basis.

Facilities provided may range from a modest-quality mattress in a small room to
large suites with bigger, higher-quality beds, a dresser, a refrigerator and other
kitchen facilities, upholstered chairs, a flat screen television and en- suite
bathrooms. Small, lower-priced hotels may offer only the most basic guest services
and facilities. Larger, higher-priced hotels may provide additional guest facilities
such as a swimming pool, business center (with computers, printers and other
office equipment), childcare, conference and event facilities, tennis or basketball
courts, gymnasium, restaurants, day spa and social function services. Hotel
rooms are usually numbered (or named in some smaller hotels and B&Bs) to
allow guests to identify their room. Some boutique, high-end hotels have custom
decorated rooms. 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. In Japan, capsule hotels provide a
tiny room suitable only for sleeping and shared bathroom facilities.
3.2. Project Objective
The main objective of the project is aimed at to maximize the return on invested
capital in the form of profit for the promoter. However, its implementation will
benefit the employee, the consumer society and the government at different levels. In
this respect the project is aimed to promote the following objectives:-
 To maximize the return on invested capital through modern Hotel

services
 To raise the significance and importance of the sector and

thereby raising its contribution to the national economic
development
 To give quality and standard hotel service
 Effectively use local inputs and strengthening the linkage between

agriculture and other sectors of the economy
 To provide gainful employment to a large segment of the

population of the project area and augment earning capacity at the
grassroots level,
 Increase government revenue through the different forms of taxes,

which in turn used to facilitate social and economic development.
In general, the project is believed to have significant social and economic

benefits that accrue to the society, the region and the country beyond the
financial returns to its owner.3.4. Mission and goal
Mission
 Mission of the particular project is to expand the standard star hotel system
and to give quality service.
 To prove to other people that struggle for a better life and economic
independences can do business and bring change and can make a
difference if opportunities are given.
 To become financially liquid and guaranteed more than ever.
Goal
Objectives are the goals toward which activities of the business are directed and
one of the most important functions the business owner must perform is setting
objectives. This important aims of this sole proprietorship business among others
include the following highly interrelated general goals with each other.
 To create employment opportunities for 125 permanent and 175 causal
 To achieve standard tourist hotel and give quality service.
3.3. Project location and justification
3.3.1. Location
The proposed project of 5 star International hotel will planned to be located in

Central region of Ethiopia Helaba town is the special zone of central Ethiopia
region
Halaba woreda is located 315 km south of Addis Ababa and about 85 km southwest of the
Southern Nations Nationalities and Peoples Regional (SNNPR) State capital of Hawasa. The
woreda is geographically located 70 17’ N latitude and 38006’ E longitude. It is located west
of Oromiya region, north of Hadiya (Sike), east of Kembata Tembaro, south east of Silte and
Hadiya zones. It is a special woreda and has a special status where the administration directly
reports to the regional state. There are 73 peasant and 2 urban associations (IPMS, 2005).
Altitudinally, the woreda ranges from 1554 to 2149 m above seas level (MASL), but most of
the woreda is found at about 1800 MASL. Except for few hills, the woreda has an
agriculturally suitable land in terms of topography. Despite the recurrent drought, flood has
also been a major problem in the area. The latter is induced as a result of dominantly level
topography
Rainfall is a major limiting factor in agricultural production in the area. As a result, it is one
of the woredas in central Ethiopia region where drought is observed recurrently affecting
many households. Agro ecologically, the woreda is classified as Weina Dega. The annual
rainfall varies from 857 to 1085 mm, while the annual mean temperatures also vary from 17
OC to 20 0C with mean value of 18 OC. The area receives a bimodal rainfall where the small
rains are between March and April while the main rains are from July to September. The
reliability of the small rains is low that farmers do not or mainly raise pepper seedling to be
transplanted during the
. The total land size the promoter requesting for the implementation of the project is
estimated at 15000 square meters, which will been obtained from investment
commission of Heleba zone administration Hence the owners select Helaba city for
proposed project by looking every aspects of business integrity tourist area.
3.3.2. Climate:
Helaba zone has a subtropical highland climate. The city has a complex mix of
highland climate zones, with temperature differences of up to 10 °C (18
°F), depending on elevation and prevailing wind patterns. The high elevation
moderates temperatures year-round, and the city's position near the equator
means that temperatures are very constant from month to month. As such the
climate would be maritime if its elevation was not taken into account, as no
month is above 22 °C (72 °F) in mean temperatures.
Geography: Halaba zone lies at an elevation of 2,200 metres (7,200 ft) andis a
grassland biome, located at 7°14′13.25″N 36°15′40.49″ECoordinates: 7°1′48″N
36°44′24″E.[14] The city lies at the foot of Mount of rift valley and forms part of the
watershed for the shala lake and Bilate river.
3.3.3. Demographics:
As of the latest 2007 population census conducted by the Ethiopian national
statistics authorities, Halaba zone has a total population of 2,739,551 urban and
rural inhabitants. For the capital city 662,728 households were counted living in
628,984 housing units, which results in an average of 5.3 persons to a household.
Although all Ethiopian ethnic groups are represented in Halaba because it is the
capital of the country, the largest groups include all nation nationality
3.3.4. Infrastructure and economic status
Economy: The economic activities in Halaba are diverse. According to official

statistics from the federal government, some 119,197 people in the city are
engaged in trade and commerce; 113,977 in manufacturing and industry; 80,391
Homemakers of different variety; 71,186 in civil administration; 50,538 in
transport and communication; 42,514 in education, health and social services;
32,685 in hotel and catering services; and 16,602 in agriculture. In addition to
the residents of rural parts of Addis Ababa, the city dwellers also participate in
animal husbandry and cultivation of gardens. 677 hectares (1,670 acres) of land
is irrigated annually, on which 129,880 quintals of vegetables are cultivated. It is a
relatively clean and safe city, with the most common crimes being pickpocketing,
scams and minor burglary.[37] The city has recently been in a construction boom
with tall buildings rising in many places. Various luxury services have also
become available and the construction of shopping malls has recently increased.
According to Tia Goldenberg of IOL, area spa professionals said that some
people have labeled the city, "the spa capital of Africa.
Tourism: Tourism is a growing industry within Helaba and Ethiopia as a whole.

The country has seen a 10% increase in tourism over the last decade,
subsequently bringing an influx of tourists to Halaba . In 2015, the European
Council on Tourism and Trade named Ethiopia the #1 tourist spot in the world
Development: The city hosts the We Are the Future center, a child care center that
provides children with a higher standard of living. The center is managed under
the direction of the mayor's office, and the international NGO Glocal Forum
serves as the fundraiser and program planner and coordinator for the WAF child
center in each city. Each WAF city is linked to several peer cities and public and
private partners to create a unique international coalition.
Launched in 2004, the program is the result of a strategic partnership between the
Glocal Forum, the Quincy Jones Listen Up Foundation and Mr. Hani Masri, with
the support of the World Bank, UN agencies and major company
Road: Universal Rural Road Access Program (URRAP) was launched to connect
all Kebele and Wereda considering the rural population's voice who demands and
have a basic right to access transport, social and other services. The delay has
limited the level of agricultural activities as most farmers found it difficult to
transport their agricultural products to the urban areas and prevent rural population
from access to services like social, health and education. The various researchers
conducted a study on the causes of delay in Ethiopia and in the rest of the world
and identified different number factors that cause a delay with their extent of
contribution towards the construction projects. Many construction projects that
have been carried outfaced the problem of non- completion during the specified
time. URRAP road project in Halaba Zone is one of the projects that have been
subjected to delay repeatedly. The construction projects' delays have a significant
financial and social impact on all parties involved in the projects, including the
project's end-user. Therefore, this study was aimed to identify the causes of delay
in URRAP road projects in the Halaba Zone, Central Ethiopia region. This was
done through identifying and ranking the most critical factors on an individual and
category basis. The study has adopted a comprehensive literature review to identify
various factors from scholars' points of view that suit the study area's context. A
quantitative survey research method through a structured questionnaire was
administered on a sample. The data was obtained from focus group discussion,
interview and questionnaire survey. A total of 42 questionnaires from clients,
contractors, and consultants were collected, and a desk study of 4 completed, 7
suspended and 11 ongoing URRAP road construction projects were analyzed. The
data were analyzed using MS EXCEL and SPSS software in which Relative
Importance Index (RII), ranking, and simple percentages were computed and tested
for the agreement among parties on the result through spearman’s correlation.
Ranking of factors and categories was demonstrated according to their importance
level on delay. From all parties combined result of RII, the following
are some of the most critical factors causing a delay in URRAP projects in the
study area late payment (RII=0.90), Weather conditions (RII=0.88), Delays in site
mobilization (RII=0.73), Inconvenient site access (RII=0.72) Cash-flow problems
(RII=0.70). The study concluded that the contractor-related category is the most
prominent delay factor with a relative importance index value of (RII=0.61),
followed by clients related (RII=0.59). Consultants related (RII=0.55) and external
related delay causes exhibited the least aggregated relative importance index
(RII=0.48).
4. MARKET STUDY
4.1. General Overview
The hotel industry consists of many different services, including

accommodation, restaurants, and cafes and catering. The market for the hotel
industry, especially classified hotels in a developing country like Ethiopia,
is closely linked to the tourism industry, because a majority of consumers for
the sector services come from international tourists.
According to the United Nations Statistical Commission, Tourism

comprises the activities of persons traveling to and staying in places outside
their usual environment for not more than one consecutive year and staying at
least 24 hours in the country visited.
The total number of international tourists arriving in Ethiopia is steadily increasing.

The highest number of tourist arrival is in 2005 i.e. 227.4 thousand. As can be seen
from Table 3.3, during the period 1991-2005 except for the decline observed in
year 1998, the number of tourists visiting the country was consistently growing.
The growth rate registered varies from year to year; the lowest was in 1992 (2%)
and the highest in1997 (27.7%). However, on average during the period under
consideration tourist arrivals have been increasing by about 8 % per annum.
Table 4.1 Total Tourist arrivals in Ethiopia
Year Number Growth Rate

1991 81,581 -
1992 83,213 2
1993 93,072 11.9
1994 98,070 5.4
1995 103,336 5.4
1996 108,885 5.4
1997 139,000 27.7
1998 112,000 -19.4
PROJECT PROPOSAL ON G+8 FIVE STAR INTERNATIOl INVESTMENT HOTEL
1999 115,000 2.7
2000 135,954 18.2
2001 148,438 9.2
2002 156,327 5.3
2003 179,910 15.1
2004 184,079 2.3
2005 227,398 23.5
Source: - Ethiopian Tourism Communion.
During the same period (1991- 2005), on average about 17% of the total number of
tourists that have visited the country were for vacation purpose while those who
visited the country for business account 22% of the total. Regarding the others,
transit accounts for 18%, visiting relative 9%, conference 11% and those who did
not stated their purpose account for 22% of the total.
4.2. Present supply in Halaba zone
According to Current 2022 Information Halaba has a quality supply of 3 hotels and
a total of 90 keys bed rooms currently in the market, giving an average number of 30
rooms per hotel. Branded supply is very low, with only Starwood, and Louvre
present. Future supply is predominantly branded
Table 4.2 standard hotels in Ethiopia
S/N Name of Hotels in Ethiopia Number of

Beds
1 Coffee Land Hotel 26
2 Mankira Hotel 40
3 Haroni Hotel 24
4 Radisson Blu Hotel 204
5 Radisson Blu Hotel 204
6 Elilly Hotel 154
7 Intercontinental Hotel 152
8 Harmony Hotel 150
9 Capital Hotel And Spa 114
10 Ethiopia Hotel 110
11 Jupiter International Hotel – Kasanches 102
12 Dreamliner Hotel 96
13 Saro Maria Hotel 96
14 Mn International Hotel 91
PROJECT PROPOSAL ON G+8 FIVE STAR INTERNATIONAL DIASPORA INVESTMENT HOTEL
15 Wassamar Hotel 66
16 Washington Hotel 65
27 Kaleb Hotel 64
18 Axum Hotel 56
19 Churchll Hotel 53
20 Aphrodite Hotel 52
21 National Hotel 52
22 Global Hotel 50
23 Bole Ambassador Hotel 48
24 Panorama Hotel 45
25 Tds Hotel 41
26 Adot-Tina Hotel 40
27 Jupiter International Hotel – Bole 40
28 Plaza Hotel 39
29 Nigist Towers Guest House 32
30 Kz Hotel 32
31 Nigist Towers Guest House 32
32 The Residence Hotel 19
3174
Source: - Ethiopian Tourism Communion.
Accordingly, assuming 365 working days, currently international

standard hotels in Addis Ababa have a total of 597,140 per
annum tourist night room capacity. Based on discussion with
various private hotel managers and other knowledgeable persons
the average stay of tourists in a hotel is assumed to be 4 days.
In order to project tourist arrival in to Ethiopia, the past trend in

tourist arrival is considered. During the period 1991-2005, the
total tourist arrival in the country has registered an 8.2%
average growth rate. Accordingly, assuming that this growth rate
will continue in the future and taking year 2005 figure (227,398)
as a base, tourist arrival is forecasted. Moreover, in order to
compute the unsatisfied demand the total annual capacity of
international standard hotels in Halaba town, which computed
to be 597,140 rooms per annum is taken as the existing
capacity. The projected tourist room requirement, which is
calculated by taking the projected tourist arrival and multiplying
it by the average hotel stay of tourists (4 days), the unsatisfied
demand is shown in Table 4.3.
PROJECT PROPOSAL ON G+8 FIVE STAR INTERNATIONAL INVESTMENT HOTEL
Table 4.3. existing hotel capacities, projected and unsatisfied demand
Projection of Room Night Existing Hotels Un

Year Tourist Arrival Demand Annual Satisfied
Capacity Demand
2008 286,456 716140 597,140 119,000
2009 309,372 773430 597,140 282,283
2010 334,122 835305 597,140 381,283
2011 360,852 902130 597,140 488,203
2012 389,720 974300 597,140 603,675
2013 420,898 1052245 597,140 728,387
2014 454,570 1136425 597,140 863,075
2015 490,935 1227338 597,140 1,008,535
2016 530,210 1325525 597,140 1,165,635
2017 572,627 1431568 597,140 1,335,303
2018 618,437 1546093 597,140 1,518,543
2019 667,912 1669780 597,140 1,716,443
2020 721,345 1803363 597,140 1,930,175
Accordingly, based on the market study and other considerations a five

star hotel with room capacity of 75 to 100 is recommended.
4.3. Demand for hotel services
The feasibility study conducted for this project deals with the demand and supply
analysis for the hotel project to be established in the area by taking the number of
international and national tourist, investors, employers and government directly
related with the level of development of the economy in general and the tourism
sector in particular. It is a function of the number of both domestic and foreign
tourist travelers in the area, travelers for the commercial or business purposes,
travelers for conference and other assembly purposes, residents in the area (in
fact it depends up on the standard of the hotel and the living status of the
residents) etc. Tourist could come to the country for the purpose of visiting our
country areas and rest on Halaba zone mainly Central region Of Ethiopia is:-
 fast growing zone economic center and the Zone of Halaba town
 foreign missions
 regional NGO’s and the Central Ethiopia region Conference Centre
 Due to its regional political status Halaba is often referred as the
political capital of halaba zone.
 Economic growth is further increasing demand at +8% per annum
.
Hotel supply and its growth
Halaba town is poised to undergo a high level of supply growth
during the next five years with a total of 2,375 rooms (76%)
having been announced. We anticipate that 50% of this supply
(1,188 rooms) to be completed, with cash flow constraints, low
access to debt funding and a shortage of foreign currency
holding back further supply growth. Promoter’s with stronger
balance sheets, technical support and access to foreign currency
have a higher likelihood of completing their developments. The
result of this is a more measured and appropriate supply
pipeline of new hotels. New supply is increasingly branded with
this growing
4.4. Demands Evaluation Mechanism
The following are some of the methods which can be used to

evaluate the demand of the services. By use of Customers
feedback follow up form
High GDP growth and increasing corporate entry is driving hotel

demand in the business and conference segment. The aid and
diplomatic segments continue to provide the majority of the
market demand in Halaba zone. Central Ethiopia region has a
strong domestic economy which is driving demand growth in the
mid-market.
Investment
Halaba town has received significant investment into the hotel sector
in recent years, with a number of successful local entrepreneurs
investing in hotels. This has largely shaped the type of supply in the
market, with few of these investors having turned to global brands to
manage their properties. The extensive list of branded hotels that
has been announced, is evidence that this trend has changed. The
easier access to finance and technical service expertise associated
with having a brand are driving this change. The latest branded
entrants are the Hotel. Assets are tightly held and liquidity is low.
Outlook
Corporate demand growth prospects are positive with strong GDP

forecasts and growing regional demand, complimenting the
significant and well established aid and diplomatic markets that are
already present in the city. Performance will be shaped by the
extensive supply pipeline of hotels across the city during the coming
years. Many of these projects have stalled, the expectation of
further delays and projects being put on hold, is likely to offer
existing players in the market some respite. On the whole we are
positive about the performance outlook, yet caution against potential
oversupply.
HOTEL MARKET TRENDS IN HALABA ZONE
What drives Halaba demand?

Halaba town has three distinct demand segments, namely the
corporate market, aid and diplomatic markets. The corporate
market is primarily domestically driven, with a limited presence of
international companies despite the high growth in the economy.
This segment typically uses 3-star unbranded hotels. There are
signs that the Ethiopian economy is opening up and although
this trend is anticipated to be gradual, it will ultimately
increase corporate entry into the market and subsequently
hotel demand from the international corporate market. We are
already starting to see this happen with the number of regional
and business travelers to the market growing steadily. The 4-
and 5-star markets are in turn primarily driven by the aid and
diplomatic markets. The city is home to the world’s third highest
concentration of embassies as well as the African Union
headquarters, which collectively generate the majority of the
diplomatic market. The various conflicts affecting neighboring
countries and its history of donor presence make Addis Ababa
one of the largest global bases for NGO’s and aid agencies.
Halaba bound demand
The majority of hotel demand generators are found 2,in the districts of Hadiya
zone and Kembata Tambaro zone ,oromia region , where diplomatic. Missions
and larger corporates are situated.The Halaba area is a new area expanding to
the southeast of the city Centre, between Halaba and Hadiya zone. This area is
expected to experience the largest growth of hotel supply over the coming five
5years by 70% to 1499 rooms driven by availability and affordability of land and
ease of access. Whilst supply is increasingly shifting south-east, the key
demand generators are likely to remain in Hadiya zone and Oromia region
with the midscale demand likely to shift towards Halaba. The
growing presence of Ethiopian Airlines further underpins demand
into this node and hotels near the airports have been announced
including a hotel funded by HNA and Ethiopian Airlines.
4.5. Pricing
The pricing of hotel services depends considerably on the quality of

service rendered and its location. The relatively high standard hotels
in Halaba Town charge a price, which ranges from USD 110(Coffee
land Hotel) to USD 115(Mankira) for a single night per single room.
Other hotels charge prices that fall in this range. For this envisaged
project a price of Birr 1000, for single bed, 1400 for double bed room
and 1800 for suit king size hotel per room per single night is
proposed.
The hotel service will also earn revenues from the sale of food and
drinks and other hotel services. The total revenue earned from this
service is estimated at 35 per cent of the revenue obtained from
room rents.
4.6. Capacity and service program
4.6.1. Capacity
From the market study, it is observed that there is a great

demand gap between the demand and supply of international
tourist standard hotel service. Therefore, taking in to account the
market study and economic scale of service provision the
envisaged international tourist standard hotel will have
capacities as shown below:
Table 4.4 service capacity of the envisaged internationaltourist standard hotel
Sr. No. Type of Service Feasible Service Capacity

1 Bedroom 80 rooms, 20 will be double
rooms, 50 single rooms and 10 suits.
2 Bar and Restaurant

• Restaurant (Modern 200 at a time each
and traditional
PROJECT PROPOSAL ON FIVE STAR INTERNATIONAL DIASPORA INVESTMENT HOTEL
• Coffee Shop 10- 15 seats at a time
3 Sauna and steam bath 20 heads/day
4 Gymnasium 20 heads/day
5 Swimming pool (Big and small pools) 45 Heads/day and 20
head/day
6 Meeting room 50x3 seats
7 Night club 300 at a time
4.6.2. Service Program:
At the initial stage of the service provision period, the hotel would require some
years to penetrate into the market and capture a significant market share.
Therefore, in the first and second year of service the capacity utilization rate
will be 75% and 90%, respectively. Full-service provision shall be attained in
the third year and then after. The proposed service provision program is shown
in Table 4.7.
Table 4.5 service provision program
Sr. Service Service Year

No. 1 2 3- 10
1 Service provision rate (%) 75 90 100
4.7. Marketing strategy
As discussed earlier the major target groups of hotel sector are tourists who arrives the
country for business, leisure, conference and other purposes. Providing quality services
and consistently improving with the changing situations should be the promoters’
objective. Hence, according to the feasibility study, the promoter has the following
marketing strategies:
 Contacting government and private agencies affiliated with tourism on a regular
basis, informing them of any corporate rate, discount programs, availability of
services, etc
PROJECT PROPOSAL ON FIVE STAR INTERNATIONA A INVESTMENT HOTEL
 Emphasizing the access of the proposed hotel to support client’s attractions, as well as the
services and amenities available,
 Special effort will be made to emphasize the price-value relationship of the service available,
 Actively marketing the hotel prior to the completion and opening,
 An aggressive local marketing effort and promotion of the hotel market to enable the hotel to
capture a more than proportionate share of support within the market,
 Working with local people to establish a competitive amenity package responsive to specific
requirements.
4.8. Competitors Overview
Three are 36 standard 3 to 5 hotels in Halaba but still three is a huge gab but our
hotel service is do quality and clean services.
In addition to the above, the failure stories that have observed from others and the
comments collected from my customers will help me to win my competitors.
In conclusion, my service compared to the competitors looks like:
 I keep the promise I make
 Quality service is my motto
 Transparent price setting and fair price will be bases to win the competitors
 The promoter long term experience and goodwill that he has achieved from
his respected customers will allow me to win the competitor. In addition to the
above, the failure stories that we have observed from others and the comments
collected from our customers will help us to win our competitors.
 In conclusion, his service compared to the competitors looks like:
5. TECHNICAL STUDY
5.1. Design and particulars
The project owner interest, as regards to how the overall building design looks like
and the level of service to be rendered by the envisaged project, is dependent on the
area at which the buildings to be placed. The owner has already decided to commit
himself to construct a five- s t a r hotel having the full knowledge what is required
by the national and international standard of Hotels in Ethiopia. The standard by the
way its exhaustiveness as well as being explicitly specific on the level of the service
expected under the selected category, determines also the physical and financial
requirement of the project. Hence, in effect the contents of project components to be
described below are the derivatives of the requirements mentioned above.
5.2. Physical appearance
The hotel would have five star hotel building placed on an area of
15000 m2. The architecture of the buildings are influenced by the
modern design setting holding the characters of attracting
customers from out ward and allowing the maximum comfort it
can provide from service point of view. Apart from the need to add
a new look within the locality, exterior of the building will be
dominated by a glass panel at the strategic corners to provide a
maximum opportunity for guest to have, a look at the important
land escape/scenery of the area.
The outer space is allocated to have an open garden, children’s

playing ground, parking area, fountains and inter campus paving
with a medium size swimming pool adjoining the front side of the
buildings.
5.3. Core facilities
The envisaged hotel should have sufficient and comfortable space to

accommodate the core services as per the requirements of the Five-
star hotel. Actually, this has been considered seriously at the
design stage of the
building along with the allocation of appropriate area and placement

of each component with the building accordingly. On the other hand,
it is also important to figure out the layout of each component not
only from the perspective of having compliance for the standard but
for the benefit exploring possibilities of bringing complementary
services under the same location and allow maximum convenience in
the work processes.
The size (area) of each service, which will be explained below, determine the
holding capacity of guests as it determines the level and quality of service. Other
than the critical factors mentioned above the market aspect i.e. customers need
and resource availability are considered in which case they are the determinants
to give the final set up of the facilities.
(a) Bed rooms

A total of 80 classes are allotted for room services with options to
avail two different types of
accommodations. In the
interest of following the
trend in the industry single
and double bedrooms.
Actually
the standard
requires allowing
maximum 30% from the
total while the rest can
remain with big double
bed rooms or any
other smaller rooms. On the bases of the above considerations
under this component, the hotel will have 50 single ,20 double
and 10 suit king bed rooms
(b) Bars
Standard Five-star hotels must have at least one bars with a
superior comfort and service quality. The furniture and
equipment’s, as being the basic sources of customer’s attractions,
need to be fashionable of higher quality commensurate with the
expectation of guests who happen to prefer
this class. Therefore, the envisaged hotel, having the requirements

considered too, will have one main bar at the ground floor adjoining
the reception area. Another bar preferably with smaller space but
furnished with cozy furniture will be placed at top floor of the
building. This is just to add another attractive look for the hotel as it
will be placed at a strategic location for customer to have a
panoramic view of the area. The minimum carrying capacity of the
bars is estimated 200 persons per day.
(c) Main restaurant

Technically a hotel to be classified under Five stars of as such this
one must have at least two dining places having the size proportional
to the guests who have checked in as normally customers do not
prefer to worry about going out once they have settled. The area
determination has to take into account this. Hence, the hotel must
provide the maximum range of varieties at all times.
The hotel will have the capacity entertaining 200 guests and allow
maximum efficiency in the service by having the restaurant located
nearer to the main kitchen.
(d)Banquet/Conference hall
A hotel with five stars needs to have a conference/banquet hall of
larger area which can be used for banquet or conference
interchangeably. This project considers this component as the
second important function next to the room services as this area
has a higher potential for such services. The holding capacity of
the main conference hall will be 500 persons.
Business center (mini market shop)

A Five-star hotel needs to have also a business center with the service that would
the customers need. For such a service, the envisaged project will allocate a
relatively bigger area preferably separate rooms at the ground floor. Rooms are
allocated to secretarial service, executive rooms for business meeting and
shopping corners. The secretarial service will be furnished with all the machines
and equipment to handle any business enquiry that may be raised by hotel guests.
The shopping corner also accommodates mini boutique, cosmetics and d/t type
of shop
(e) Supports
Kitchen
Two kitchens, with the processes of multiple varieties of food preparation and a
proportional capacity to handle the maximum guests to be served inthe main
restaurant as well as in banquet hall, is the critical requirement for the proposed
hotel. It should be large enough also to accommodate the working areas of cold and
hot meals on the one hand and pastries and bakery on the other.
In order to allow reasonable space for workers to move around as well as to

avoid the possibility of contamination and spoilage, the pastries and bakery
will be placed at the nearest door joining the main buffet at the gate of the restaurant.
On the other hand, the kitchen should be provided with a space to add a small
store with a flexible structure to contain butchery and coldrooms. These are critical
for easy facilitation of cooking’s. Moreover, the kitchen will have a well-connected
washing corner with at most margin of clearance to make the area safe and clean.
Power House
For the service of the hotel to continue uninterrupted, a power house is already
planned to be placed in the underground or back to the building. Hence, the
power house will be supplied with a goner planned to be fixed for emergency
service.
Store
Alike the capacity projection made on the kitchen, the envisaged project requires
a store as big as the varieties of items that are needed to be kept as stock. The
store will need to have a systematic management for stocks properly placed and
identified at the time of delivery and inventory. Hence, it is the required
procedure to organize the stock items in separate sections so that the proper
handling of stocks shall be maintained. In view of this, the hotel requires a
number of stores with sections for food items, beverage, glass wares, silver
wares, soft furnishings, cleaning and sanitary materials, stationery materials all
placed according to their physical appearances. The store will be placed in
locations nearer to kitchen or leisure service.
Car Parking
The hotel must provide the service of car parking with 24 hours protection at
least for those customers who have checked in. Again, it should be large enough
to accommodate as many vehicles as the hotel is going to entertain a large crowd.
In view of this, a parking space for about 17 vehicles is planned to be allocated
with the standard width and height of the drive-in routes.
5.4. Hotel Furniture and Equipment’s
Furniture and equipment required to furnish the envisaged hotel depend on the
space to be available as well as on the quality and volume of service to be
rendered. Normally the quantity required will also depend on the standard of the
hotel i.e., Five-star hotel. To the extent that the engineering design of the building
align with the requirements of the standard, the projection of furniture and
equipment’s has to be consistent with the size and number of rooms, bars, restaurants
and leisure center. However, one has to be realistic in the sense that the forecasting
trend to link with the technical feasibility particularly with that of the envisaged
service capacity. Moreover, the balance to be between image building and income
generation capacity has the same level of influence as said above.
Therefore, for this particular category of forecasting two levels of

considerations are taken into account. One, by the fact that the design of building
directly determines the space available for every item, size will be governed by
this and again the quality required furniture will determine base on the kinds of
facilities available. In any case the required quantities are forecasted based on the
components stated below:
 80bed rooms,
o 10 king size luxury bed rooms
o 20 standard Double bedrooms
o 50 standard Single bed rooms
 Special Bar and cafeteria
 Traditional and international restaurant
 conference rooms,
 Massage room
 Sauna and steam bath room
 Physical fitness room
 Night club (dancing area)
 Indoor and outdoor game facilities,
 Management office and store,
 Other civil works including land escaping, parking area, fountains and
inter campus paving.
Secondly, in order to fulfill the basic requirements of hotel service, the quantities
forecasted for the above facilities have to be reviewed against the national standard.
Such consideration gives the benefit of consciously sorting out what item goes with
what kind of facility or service. Once this is determined the forecast of quantity will
follow accordingly. The project detail design work has already been undertaken and
the planned facilities of the project and the required quantities are forecasted in
section 5.
5.5. Inputs/ raw materials and utilities
5.5.1. Raw Material cost

The annual cost and list of raw materials are indicated in Table 5.1.
Table 5.1 Annual requirements of raw and auxiliary materials
S/N Raw materials Quantity per cost per per year

month month
Food materials raw costs lamp sum 500,000.00 6,000,000.00
d/t type Beverage raw costs lamp sum 500,000.00 6,000,000.00
massage, sauna bath and other lamp sum 15,000.00
related cost 180,000.00
Cleaning materials and other lamp sum 15,000.00
miscellaneous uses 180,000.00
Total 12,360,000.00
5.2.2. Utilities
Annual requirement of electricity, water and fuel is estimated at 2,367,000 birrs
from which, 500,000 kwh, 300,000 m3 and 2000 liters, a r e electricity, water
and fuel respectively. The total costs of utilities are, therefore, about Birr
2,367,000 per annum.
Table 5.2 utilities
Description Qty. Cost per
unit cost year
Electricity, kWh 500000 1.25 625000
Water, m3 300000 4.5 1350000
LPG, lt 2000 16 32000
Diesel, lt 20000 18 360000
Total 2367000
5.6. Machinery and equipment
Machinery and equipment required for jute bags manufacturing plant are given in Table
Table 5.3 list of machinery and equipment
Furniture and equipment's required for Suit bed rooms (10 )
S/n Description Quantity Unit price Total (birr)

1 Sofa single 20 2,500 50,000
3 TV 29” 10 8,000 80,000
4 Telephone stand 10 500 5,000
5 Telephone apparatus 10 750 7,500
6 small Refrigerators 10 4,000 40,000
8 Coffee table 20 1,500 30,000
9 French Bed (120 x 180cm) 10 20,000 200,000
10 Cupboard built in 20 5,000 100,000
11 Head lump 20 1,000 20,000
12 Writing table with chair set 20 2,500 50,000
13 Chest drawer 20 1,500 30,000
14 Spring mattress 10 5,000 50,000
16 Bed sheets 20 500 10,000
17 Bed cover 10 800 8,000
18 Pillow 30 250 7,500
Total - 688,000
Furniture and equipment's required for double bedrooms (20)

1 Sofa single 40 2,500 100,000
3 TV 21” 20 8,000 160,000
6 Refrigerators 20 4,000 80,000
7 Standing lump 20 1,000 20,000
8 Coffee table 20 1,500 30,000
9 French Bed (120 x 180cm) 40 12,000 480,000
11 Head lump 20 1,000 20,000
12 Writing table with chair 20 2,500 50,000
13 Chest drawer 20 1,500 30,000
Bed made wood 80 20,000 1,600,000
15 Bed sheets 80 500 40,000
16 Bed cover 80 800 64,000
18 Pillow 80 250 20,000
Total 3,019,000
Furniture and equipment's required for single bedrooms

1 Sofa single 100 2,500 250,000
2 TV stand 50 2,000 100,000
3 TV 21” 50 5,000 250,000
6 Refrigerators 50 4,000 200,000
7 Standing lump 50 1,000 50,000
8 Coffee table 50 1,500 75,000
9 French Bed (150 x 180cm) 50 20,000 1,000,000
11 Head lump 50 1,000 50,000
12 Writing table with chair 50 2,500 125,000
13 Chest drawer 50 1,500 75,000
15 Bed sheets 100 250 25,000
16 Bed cover 100 500 50,000
17 Blanket 100 1,000 100,000
18 Pillow 100 100 10,000
Total - - 2,822,500
Furniture and equipment's required for office, reception, leisure and others

1 Executive double redistill desk 2 20,000 40,000
2 Executive swivel arm chair 2 5,000 10,000
3 Double pedestal desk 5 4,000 20,000
4 Servile admin chair 5 3,500 17,500
5 Secretarial desk 2 3,500 7,000
6 Guest chairs 8 600 4,800
7 Safe box 4 4,000 16,000
8 Shelf 4 3,000 12,000
9 Reception desk 2 40,000 80,000
10 Sofa box 2 15,000 30,000
11 Cash register with stand 2 7,500 15,000
12 Telephone apparatus box 2 20,000 40,000
14 Fax machine with stand 2 30,000 60,000
15 Pc with printer and stand 10 15,000 150,000
16 Single sofa high based 4 5,000 20,000
17 Coffee tables 4 2,000 8,000
18 Standing lump 6 2,000 12,000
19 Recreation facilities Ls - 150,000
21 Emergency power generator 2 300,000 600,000
Total - - 1,295,300
Furniture and equipment's required for bar and cafe
1 Tables 60 2,500 150,000

2 Chairs 300 750 225,000
3 Long drawer (Balcony) 2 30,000 60,000
5 TV stand 5 2,000 10,000
6 TV set 27” 5 15,000 75,000
7 Casher box 3 5,000 15,000
8 Stools (high chairs) 12 1,500 18,000
9 Coffee machine stand 2 50,000 100,000
10 Refrigerator big 2 20,000 40,000
11 Refrigerator medium 2 12,500 25,000
12 Coffee roaster 2 7,500 15,000
13 Ice maker 2 5,000 10,000
14 Pastries stand 2 15,000 30,000
15 Juice maker 2 5,000 10,000
16 Draft beer machine 2 15,000 30,000
18 Tape recorder 2 10,000 20,000
19 DVD player 2 1,200 2,400
20 Satellite dish with receiver 2 2,500 5,000
21 Shelf with drawer 2 20,000 40,000
22 tea cup 500 25 12,500
23 coffee cup 500 25 12,500
24 Milk cup 500 25 12,500
25 Makiyato cap 500 25 12,500
26 water glass 500 15 7,500
27 draft glass 500 60 30,000
28 wine glass 500 100 50,000
29 Whisky glass 400 100 40,000
30 local gen glass 500 50 25,000
31 service tree 1000 150 150,000
Total - - 1,232,900
Furniture and equipment's required for dinning/restaurant room
1 Tables 50 2,500 125,000

2 Chairs 200 750 150,000
3 Long drawer (Balcony) 2 30,000 60,000
5 TV stand 2 2,000 4,000
6 TV set 27” 2 7,500 15,000
7 Stools (high chairs) 2 1,500 3,000
8 Refrigerator big for beer 2 20,000 40,000
9 Refrigerator medium for soft drank 2 12,500 25,000

10 Coffee roaster 2 7,500 15,000

11 Ice maker 2 5,000 10,000
12 Draft beer machine 1 15,000 15,000
13 water glass 200 12 2,400
14 draft glass 200 60 12,000
15 service tree 50 30 1,500
16 30-34 sauce pot 10 20 200
17 Sauce-medium 40 30 1,200
18 Soup pot 40 50 2,000
19 Medium 4 45 180
20 Large – round hot pot 10 80 800
21 Medium – round hot pot 10 57 570
22 Small – round hot pot 10 30 300
23 High rim flat 10 70 700
24 Flat rim round 12 50 600
25 Normal alloy 20 45 900
26 Non stick normal 20 20 400
Total 485,750
Furniture and equipment's required for Conference rooms
1 Tables 100 2,500 250,000

2 Chairs 1000 750 750,000
3 Buffet stand 5 20,000 100,000
4 Speaker (big) 5 5,000 25,000
5 Amplifier 3 20,000 60,000
6 Wireless microphone 5 750 3,750
7 Table microphone 20 350 7,000
8 LCD projector 5 30,000 150,000
9 Slid board 5 5,000 25,000
10 Satellite dish with receiver 5 2,500 12,500
11 TV stand 5 2,000 10,000
12 TV set 27” 5 15,000 75,000
Total - - 1,468,250
kitchen materials
1 Stove 5 45,000.00 225,000.00
2 Toaster 5 15,000.00 75,000.00
3 Oven 5 40,000.00 200,000.00
4 Aluminum tables 8 4,000.00 32,000.00
5 Grill (electrical) 5 15,000.00 75,000.00
6 Washer sink 5 5,000.00 25,000.00
7 Refrigerator 5 20,000.00 100,000.00
8 Clip fryer 5 5,000.00 25,000.00
9 Pastries formwork 5 5,000.00 25,000.00
10 Petra 10 2,500.00 25,000.00
11 Cupboard 3 7,500.00 22,500.00
12 Shelf 3 5,000.00 15,000.00
13 Grill bench top 5 11,887.00 59,435.00
14 Deep friend double 6 4,218.00 25,308.00
15 Micro wave grill 5 3,250.00 16,250.00
16 Mincer meat 5 12,999.60 64,998.00
17 Brad oven 5 47,999.85 239,999.25
18 Pizza claye oven 5 29,841.00 149,205.00
19 mixer 15 KG capacity 5 37,999.45 189,997.25
20 Range commercial 5 38,745.00 193,725.00
21 Range linear 3 14,995.00 44,985.00
22 Fruit blender 3 3,585.00 10,755.00
23 Potato chopper 3 41,999.30 125,997.90
24 Onion peeler /chopper 3 15,780.00 47,340.00
25 Blender small 3 3,185.00 9,555.00
26 Deep refrigerator 6 9,450.00 56,700.00
27 Refrigerator 10 9,960.00 99,600.00
28 Digital scale (35k.g) 3 1,800.00 5,400.00
29 Waiting scale (220 K.g) 3 4,700.00 14,100.00
30 Kitchen hood 5 29,745.00 148,725.00
31 Kitchen cabin with double Sink 5 31,488.00 157,440.00
32 Kitchen cabin 5 27,488.00 137,440.00
33 Kitchen top -stainless steel 8 8,195.00 65,560.00
34 Kitchen top -stainless steel -large 8 13,195.00 105,560.00
35 Chaffing dish -silver 25 9,499.00 237,475.00
36 Spaghetti plate 50 712.2 35,610.00
37 Dinner plate 50 720 36,000.00
38 Dessert plate 50 720 36,000.00
39 Table fork 10 163.8 1,638.00
40 Table knife 10 136.8 1,368.00
41 Chopper knife 10 62.1 621.00
42 Table spoon 15 163.8 2,457.00
43 Kitchen Pan 10 499 4,990.00
44 Food Box 5 220 1,100.00
45 soup bowl 3 336 1,008.00
46 Cook pot large 10 693.2 6,932.00
47 Cook pot big 38 10 3,054.00 30,540.00
48 Cook pot medium 20 581.4 11,628.00
49 Cook pot small 20 469.6 9,392.00
50 restaurant Table w/ 4 Chair 50 9,246.00 462,300.00
51 cafe table 20 1,455.00 29,100.00
52 Restaurant chair- sheraton Type 100 2,510.00 251,000.00
53 cafe chair 100 964.5 96,450.00
54 Open generator-24 KV 3 389,748.00 1,169,244.00
sub total 5,237,428.40
steam and sauna bath

S/N Description Qty Unit cost Total Cost
1 sauna electric heater 16 12000 192,000
2 sauna bucket 16 6000 96,000
3 sauna ladle 10 400 4,000
4 sauna thermometer 16 300 4,800
5 electric sauna timer 12 270 3,240
6 sauna hygrometer 16 950 15,200
7 steam generator 2 35000 70,000
8 cloth hunger 17 250 4,250
9 foldable rest 24 400 9,600
10 wall mirrer 12 850 10,200
11 soffa guest chair 16 350 5,600
12 wall mirror 12 4000 48,000
13 wall mounted 10 2500 25,000
14 reception table 2 2200 4,400
15 swivel chair 2 1000 2,000
16 satellite dish with color 2 10000 20,000
17 public addressing system 2 6000 12,000
18 wall watch 2 200 400
Total 526,690
PROJECT PROPOSAL ON FIVE STAR INTERNATIONAL DI INVESTMENT HOTEL
S/N Aerobics and physical fitness Qty Unit cost Total Cost
1 Public addressing system 3 15,000 45,000
2 Aerobics dumbbell 10 3,500 35,000
3 Stepping rocks(assoried) 120 250 30,000
4 Wall mounted mirror 30 200 6,000
5 Bike Proms 9 5,500 49,500
6 Track tread mills(electrical) 2 22,000 44,000
7 Track tread mills(manual) 6 4,000 24,000
8 heart rate monitors and pedometers 6 2,500 15,000
9 body solid endurance up right 2 11,000 22,000
10 muscular dynamics 2 13,000 26,000
11 simplex II series 2 16,000 32,000
portable massage tables with tools and
12
accessories 2 17,000 34,000
13 massage body work tools 6 4,000 24,000
14 massage chairs with tools and accessories 2 11,000 22,000
15 massage store heater 2 1,500 3,000
16 massage table electric warming pad 4 3,000 12,000
17 flece message table pad 12 1,000 12,000
18 massage table and video kit 2 6,000 12,000
19 pillows/body support/back care 16 4,500 72,000
20 cleaner and sanitizers 8 2,500 20,000
21 wall mirror(1.5 -2 ml) 6 400 2,400
22 sofa guest chair(three set) 10 4,500 45,000
23 Wall maound lockers 20 2,500 50,000
24 receptionist table 2 2,200 4,400
25 swivel chair 4 2,000 8,000
26 satellite dish with color 2 10,000 20,000
27 public addressing system 2 6,000 12,000
28 wall watch 2 400 800
Total 682,100
Garden recreation center

S/N Garden recreation center Qty Unit cost Total Cost
1 Lawnmower 5 2000 10000
2 Wheelbarrow 10 500 5000
3 Metal scraper 10 100 1000
4 Coffee machine 2 10000 20000
5 plastic chair 40 150 6000
6 Oval shaped plastic table 20 800 16000
7 Umbrella 20 400 8000
8 juice glass 40 50 2000
9 tea spoon 50 5 250
10 coffee spoon 50 5 250
11 juice stranner 2 150 300
12 water glass 30 20 600
13 coffee cups with saucer 20 100 2000
14 tea cups with saucer 20 60 1200
15 ice-cream box 1 5000 5000
16 water sprinkles 30 40 1200
17 water house nylon rope 4 500 2000
18 Gardner's kits 2 100 200
Total 81,000
Summary of equipment
S/n Description Total cost
1 Furniture and equipment for 90 Bed room
Luxury bed room (10 rooms) 688,000
For double bed room (20) 3,019,000
Single bed room (50) 2,822,500
2 Furniture and equipment for office and reception area 1,295,300
3 Furniture and equipment for bar and cafeteria 1,232,900
4 Furniture and equipment for restaurant and dining room 485,750
5 Furniture and equipment for conference room 1,468,250
6 Furniture and equipment for kitchen materials 5,237,428
7 Sauna and steam bath materials 526,690
8 Aerobics and physical fitness 682,100
9 Massage service materials 300,000
11 Mini market shop establish costs 200,000
12 Garden and creation area 81,000
Total 17,069,918
5.7. Land, Building and civil work
5.7.1. Land lease
The overall land required is about 15000 square meters. Land lease cost at the
rate of Birr 45 per m2 average and for 99 years land holding is estimated to be
Birr 4.3 million. Thus, the total land & construction cost assuming that the total
land lease cost will be paid in advance (5%) amounts to Birr 5,291,795.4
government has following significances the remaining amount paid within 40
years per year.
Land use plan of the project
A properly designed building construction starting in last year before and insures
smooth functioning of all operations. The building will have well-
ventilated appropriate international Hotel service area the structure includes
separate services and other different activates the detail as follows
Table 5.4. Description of Land use plan

S/n Description Qantity Unit Price Total Price
(Br) (Br)
1 Main Building 6800 5,000 20,000,000
Gust room
Manager office
Minimarket shops
Bar and restaurant
Bed room (80 rooms,20 will be
double rooms, 50 single rooms and
10 suits.)
Meeting room
Sauna and steam bath
Gymnasium physical fitness
4 Store service 2500 5,000 1,000,000
8 Parking area 3000 1,000,000
9 Generator house 100 500,000
10 Guard house 100 643,475
Total - 23,143,475
1500.00
5.8. Environmental impact assessment
The project will seriously involve itself protecting conserving and developing the
natural and flora of the project area in line with the millennium development goal.
To this to will play a vital role in participating the varies organization and the
community around the project area to from an environmental commute in charge of
all environmental issues to be handledin accordance to varies environmental and
water policies of 97/99.
The owner of the project believes to undertake several environmental issues for
the conservation development and creation of sustainable environmental around the
project area.
5.9. Implementation Schedule
The actual implementation of the International 5-star hotel is planned to begin on the
July 2024. The major activities envisaged are processing of land preparation,
construction and delivery, installation and commissioning of the factory line.
Undertaking of civil design works and execution of construction works which will be
carried out by side which opening and processing of L/C will take 3 months. The
FOB delivery of plant machinery and equipment will take 4 months. Allowing
additional one month for sea freight and clearing, the delivery of plant of project site
and thus commencement of installation work requires 5 months. Plant installation
and commissioning will take place for 4 months.
The provision of infrastructural facilities such as Electric Power and water will be
carried out in the course of project implementation schedule. Other activities such us
man power recruitment and training, system development, and procurement of raw
and other supplies will also be duty performed to ensure that everything is in place
by the time the plant is ready for operation. All in all the project is expected to take
12 months for completion as per the below detailed implementation schedule.
Table 5.5. Implementation schedule
(Months) in Gregorian Calendar
Description 5 6 7 8 9 10 11 12 1 2 3 4
Acquisition of I n v e s t m e
ntLand
(May 2024)
Opening & Processing of L/C x x X
Building Construction x X X x x x
Delivery of Plant machinery and X x x x x
Clearing
Installation and Commissioning x x x X
Recruitment of man power x x x x x X
arranging for other works
Customers, timely availability all the week including week end days, customer
care, and quick response to the feedback from clients.
6. ORGANIZATIONS AND MANAGEMENT
6.1. Organizational Structure
The organizational structure of the project is designed by including all the necessary
personal under the right division. At the top of the organizational structure, there will
be a general manager with the responsibility of supervising the overall activity of
plant. Depending up on the nature of the center and the amount of work to be
performs under each will be supervisedby the unit head that is accountability for
general manager
CEO
Adviser Internal Auditing

& Inspection
Secretary
As clearly shown the organizational structure, the integrated projected center has
CEO three Departments under the general manager, Addition and the internal Auditing
and inspection. The departments are the production Department, the marketing
department and the general service department under each department there are
different section which are undertaking different activities
6.2. Management
As to the management of the project is concerned the owner will be responsible for
the overall project planning, co-ordination and implementation. After project
implementation the promoter serves as a top management body and frequently visits
and supervises the organization.
Cattle fattening farm a business man who has a long year experience in managing
business activities. Therefore, the extensive experience he has enables him to
organize and properly manage the envisaged International 5- star hotel Service.
6.3. Manpower Requirement
For smooth and efficient operation of the organization, it has been

anticipated that each unit will have adequate number of qualified and experienced
manpower. The labor component of the International 5- s t a r hotel Service
G/manager will hire qualified and experienced in management whose main
responsibility is to coordinate the overall activity of the project. The distinct units
have their own operational teams under them. To fill in all these work units with
the required manpower The project will provide 300 employees, 125 p e r m a n e
n t ( 100 s k i l e d & 25 unskilled) and 175 casual skilled and unskilled
workers. For smooth operation of the project, employees will be given on job
training, clear duties and responsibilities under the direct supervision of their
respective units.
Table 6.1: Manpower Requirement
Annual
S/n Description of Job Qualification No. Monthly Salary(Br)
1 General Manager BSc in Hotel management 1 10000 120000
2 Coordinator/supervisor BSc in Hotel management 5 6000 360000
1 Assistance Supervisor diploma in Hotel management 5 6,000 360000
2 Receptionist diploma in Accountant 5 5,000 300000
3 Pastry and Staff Cafeteria diploma in food preparation 5 7,000 420000
4 Cafeteria supervisor diploma in Hotel management 2 5,000 120000
5 Waiter diploma and Certificate 20 2,000 480000
6 Cooker diploma in food preparation 20 7,000 1680000
7 Coffee machine operator 12th complete 2 3,000 72000
9 Pastry attendant Certificate 5 5,000 300000
10 Coffee machine operator 12th complete 5 3,000 180000
11 Dessert attendant skill professional 4 1,500 72000
12 Massage expert Certificate 5 5,000 300000
13 Physiotherapist Certificate 5 5,000 300000
14 Sauna /steam Bath Certificate 5 5,000 300000
15 Sauna and Steam Certificate 5 5,000
bath Attendant 300000
16 life saver Certificate 4 5,000 240000
17 Casher diploma in Accountant 4 2,500 120000
18 Cleaner vice 8th grade complete 10 1,500 180000
19 Plumber diploma in 2 2,000
electrical 48000
engineering
20 Electrician diploma in 2 2500
electrical 60000
engineering
21 Gardener skill professional 2 1000 24000
22 Guards Gardener 8 1,000 96000
Total 125 - 6,432,000
6.4. Training Requirement
Since the machinery and equipment and services are easy to operate, a special
training arrangement is not needed. But operators, chemists ,mechanics &
electricians need a two weeks training during erection, commissioning period on the
production process, raw material and product quality and operation and
maintenance of machinery and equipment by the expert of machinery supplier..
7. FINANCIAL STUDY
Financial analysis of the proposed project of Five star hotel will be projected to
test the financial visibility if the investigated organization. Quantifying both
project cost and benefits over the assumed project life, which is five years, made
the project visible. Besides it has been tried to make a realistic forecasting of
costs and the benefits based in current market price of all necessary materials.
Once the anticipated cattle fattening operation has been attained both projects
cost and revenue is estimated to be consumed to be compensated by increasing in
sales revenue
7.1. Classified Investment cost
The cost of the project is classified as fixed incitement cost and initial working
capital. With regards to fixed investment cost of the project, the land lease,
building and civil works cost, machinery and equipment cost office furniture
costs and fuel costs will be required. As to working and operating cost a brief
illustration will be given as to utilities, salary expense, maintenance cost and
depreciation cost and the other related costs
7.1.1. Fixed costs

Fixed cost that includes Land development, Building and civil work,
machinery equipment and vehicles and office furniture estimated birr
68,793,341.76. which is 65 % of the total project.
Table 7.1 land development
Description Qty Unit Price Total Price (Br)
S/N (Br)
1 Land clearing and leveling 15000 2,500 1,000,000
m2
2 Land lease (5%) 5,291,795.52
3 Canal work 2000 1000,000 1000,000
4 Water reservoirs 500 2000,000 2000,000
Total -2500 - 9,291,795.52
Table 7.2 Building and civil works
S/n Description Qty Unit Total Price
Price (Br)
(Br)
1 Main Building G+8 5000 5,000 30,000,000
Gust room
Manager office
Supermarket
Bar and restaurant
Bed room (80 rooms,20 will be double
rooms, 50 single rooms and 10 suits kings
room.)
Meeting room
Sauna and steam bath
Gymnasium
4 Store service 2500 50,00 8,000,000
0
8 Parking area 2500 3,000,000
9 Generator house 44 1000,000
10 Guard house 30 643,475
Total - 42,643,475
15000.
00
N.B. out of the total cost of G+8 Building construction, steel metal is covered 50 % of the
cost therefore the promoter is must be import from foreign using duty free by the rule of
Investment initiation.
Table 7.3 List of summarized machinery and equipment’s and cost

S/n Description Total cost
1 furniture and equipment for 90 Bed room
Luxury bed room (10 rooms) 688,000 Import from
Double bed room (20 rooms) ,019,000 duty free
Single bed room (50 rooms) 1,822,500
2 furniture and equipment for office and reception area 1,295,300 Local market
3 furniture and equipment for bar and cafeteria 1,232,900 Local market
4 furniture and equipment for restaurant and dining room 485,750 Local market
5 furniture and equipment for conference room 1,468,250 Local market
6 furniture and equipment for kitchen materials 3,237,428 Local market
7 Sauna and steam bath materials 526,690 Duty free
8 Aerobics and physical fitness 682,100 Duty free
9 Massage service materials 200,000 Duty free
11 Mini market shop establishes costs 150,000 Local market
12 Garden and creation area 61,000 Local market
Total 13,868,918
Table 7.4. Procurement of Vehicles and furniture’s
Type of Vehicles Unit Qty Unit Price Remark
S/N
(Br)
1 Pick-up (4WD)/ No. 2 1,250,000 duty free
2 Mini bus No. 2 1,000,000 duty free
4 Office furniture’s Ls - 439,000.23 Local market
5 computer and accessories 301,053 Local market
Total - - 2,989,153.23
Table 7.5 Summary of Fixed asset

S/n Description Cost Estimate Remark
(Birr)
1 Land development 9,291,795.52 100% local market
2 Building & Constructions 42,643,475 50% duty free imported
3 Machinery and equipment 13,868,918 50 % duty free imported
4 Procurement of Vehicles & furniture’s 2,989,153.23 90 % duty free imported
Total 68,793,341,.76 49.7 % duty free
imported
7.1.2. Operational cost costs

Production cost of the project includes direct production and
overhead costs. The major cost item under this category includes
cost of material and Labouré inputs, fuel and lubricants, repair
and maintenance, employee salary and benefits, insurance, office
supplies and other miscellaneous expenses; the total estimated
production cost is birr 7,778,939.4144 million 21 % of the total
project capital is.
Direct cost
Table 7.6.Raw materials
S/N Raw materials Quantity cost per per year
per month month
1 Food materials raw costs Lamp sum 500,000.00 15,000,000.00
2 d/t type Beverage raw costs Lamp sum 500,000.00 15,000,000.00
3 massage, sauna bath and other related Lamp sum 15,000.00
cost 4,000,000
4 Cleaning materials and other Lamp sum 15,000.00
Miscellaneous uses 180,000.00
Total 34,180,000
Table 7.7 Utilities
Description Qty. unit cost Cost per year
Electricity, kWh 500000 1.25 1,000,000
Water, m3 300000 4.5 1,000,000
LPG, lt 2000 16 62,000.64
Diesel, lt 20000 18 800,000
Total 2,862,000.64
Administration cost
 Employee benefits : It includes medical expense, uniform and other

incentive package and assumed to be 25% of annual salary expense =
birr 1,608,000
 Travel expense: It is assumed to be 10% of annual salary expense i.e. birr
643,200
 Repair and maintenance
Cost estimate/ year

Item
% Price
Land development 2 50678.34
Building & Constructions 2 462869.5
Machinery and equipment 3 512097.552
Vehicles & furniture’s 5 151500
Total - 1,177,145.39
 Insurance: It is assumed to be 1% of fixed investment cost = birr

1,056,859
 Office supplies: Including stationery and sanitary supplies annual
cost of birr 100,000 is considered.
 Miscellaneous expense: It includes cost of land rent, telephone and
postage, audit, legal and license fees and other miscellaneous
expenses. The total annual cost of these cost components is estimated
to be birr 190,000 /year.
Summary of Operational cost/ working capital
Table 7.8 Determination of Initial Working capital requirement
S/n Cost item Annual cost
1 Raw materials
1.1 Direct coast 12,360,000
1.2 Utilities 2,367,000
Sub total 14,727,000
2 Administrative costs
2.1 Salary and wage 6,432,000
2.2 Employee benefits 1,608,000
2.3 Travel expense 643,200
2.4 Repair and maintenance 1,177,145
2.5 Insurance 477,973
2.6 Advertising expense 50,000
2.7 Telephone expense 365,000
2.8 Wi fi Internet service 60,000
2.9 Office supplies 100,000
2.1 Miscellaneous expense 150,000
Initial W.C. requirement 37,042,568.64
7.2. Project Capital and financing
7.2.1. Project Capital

The total investment capital of the project is estimated at birr 105,835,910.4
of which birr 68,793,341.76 (65%) is for fixed investment items while the
remaining balance of birr 37,042,568.64 (35%) will be initial working capital.
The detail of investment capital of the project is given below
7.9. Project capital and source of income
Investment Source of Income Remark
S/n Description
capital (Br.)
1 Land development 9,291,795.52 Local Market
2 Building & Constructions 42,643.475 50% foreign currency Duty free
3 Machinery and equipment 13,868,918 45% foreign currency Duty free
4 vehicles and furniture 2,862,000.64 90% foreign currency Duty free
Sub total 26,065,356.99 49.7% foreign currency Duty free
5
5 Working Capital 37,042,568.64 Local market
32% need foreign Duty free
Total 63,107,988.995
currency
7.2.2. Financing
The total investment capital of the project is to be financed from the

promoter’s equity and bank loan. Out of the total capital birr 32,071488
(30%) is contributed by the promoter, Diaspora investment group while
the remaining balance of birr 74,500,140 (70%) is to be financed by local
banks. The bank loan will be repaid based on the following terms and
conditions:
 Loan amount = birr 74,500,140
 Installment period/ term = 10 years
 Interest on loan (including service charge) = 11.5%
Table 7.10 Loan Repayment Schedule
Principal Interest Year ending
Year
Repayment Payment Balance
0 - - 74,500,140
1 7,450,014 5,923,804 46,360,206
2 7,450,014 5,331,424 41,209,072
3 7,450,014 4,739,043 36,057,938
4 7,450,014 4,146,663 30,906,804
5 7,450,014 3,554,282 25,755,670
6 7,450,014 2,961,902 20,604,536
7 7,450,014 2,369,522 15,453,402
8 7,450,014 1,777,141 10,302,268
9 7,450,014 1,184,761 5,151,134
10 7,450,014 592,380 0
Total 7,450,014 74,500,140
Depreciation of fixed investment items

The straight-line method has been used to depreciate/amortize all fixed items
of the project. The depreciation rate applied for all fixed assets is given below:
Table 7.11 Depreciation Schedule
Original Annual Depreciation

S/n Item
Value % Amount (Br.)
1 Land development 9,291,795.52 10 929,179.552
2 Building & Constructions 42,643,475 10 4,264,347.5
3 Machinery and equipment 13,868,918 10 1,386,891.8
4 vehicles and furniture 2,862,000.64 10 2,862,00.064
Total 47,797,310 - 6,866,618.916
Table 7.12 Summary of project Annual production costs
S/n Cost item Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
1 Direct cost
1.1 Direct cost 12,360,000 12,978,000 13,626,900 14,308,245 15,023,657 15,774,840 16,563,582 17,391,761 18,261,349 19,174,417
1.3 Utilities 2,367,000 2,485,350 2,609,618 2,740,098 2,877,103 3,020,958 3,172,006 3,330,607 3,497,137 3,671,994
Sub total 14,727,000 15,463,350 16,236,518 17,048,343 17,900,761 18,795,799 19,735,588 20,722,368 21,758,486 22,846,411
2 Administrative costs
2.1 Salary and wage 6,432,000 6,753,600 7,091,280 7,445,844 7,818,136 8,209,043 8,619,495 9,050,470 9,502,993 9,978,143
2.2 Employee benefits 1,608,000 1,688,400 1,772,820 1,861,461 1,954,534 2,052,261 2,154,874 2,262,617 2,375,748 2,494,536
2.3 Travel expense 643,200 675,360 709,128 744,584 781,814 820,904 861,950 905,047 950,299 997,814
Repair and
2.4 1,177,145 1,236,003 1,297,803 1,362,693 1,430,828 1,502,369 1,577,487 1,656,362 1,739,180 1,826,139
maintenance
2.5 Insurance 477,973 501,872 526,965 553,314 580,979 610,028 640,530 672,556 706,184 741,493
Advertising
2.6 50,000 52,500 55,125 57,881 60,775 63,814 67,005 70,355 73,873 77,566
expense
2.7 Telephone expense 365,000 383,250 402,413 422,533 443,660 465,843 489,135 513,592 539,271 566,235
Wi fi Internet
2.8 60,000 63,000 66,150 69,458 72,930 76,577 80,406 84,426 88,647 93,080
service
2.9 Office supplies 100,000 105,000 110,250 115,763 121,551 127,628 134,010 140,710 147,746 155,133
Miscellaneous
2.1 150,000 157,500 165,375 173,644 182,326 191,442 201,014 211,065 221,618 232,699
expense
Sub total 11,063,318 11,616,484 12,197,309 12,807,174 13,447,533 14,119,909 14,825,905 15,567,200 16,345,560 17,162,838
Total cost working capital 25,790,318 27,079,834 28,433,826 29,855,517 31,348,293 32,915,708 34,561,493 36,289,568 38,104,046 40,009,249
Note: Production costs are assumed to increase by 5% annually.
Page 56
PROJECT PROPOSAL ON G+8 FIVE STAR INTERNATIONALA INVESTMENT HOTEL
7.3. Revenue projection
The project will collect its revenue from the customer service. The selling of
food and beverage and rented rooms has estimated based on the current
market price and hotel standard of similar service provision in town. The
annual service program is formulated based on proposed plant capacity
considered the following table
Table 7.13 Description of revenue projection
No of bed Price/day
S/N Bed room service per year
rooms /night
1 King standard room 10 1800 4320000
2 Double bed room 20 1400 6720000
3 Single bed room 50 1000 12000000
Subtotal 23,040,000.00
S/N Raw materials No of cost per per year
customer month
per day
1 Food service income 100 850,000.00 10,200,000.00
2 Beverage service income 200 850,000.00 10,200,000.00
3 income from Massage service 40 360,000.00 4,320,000.00
4 Income from Gymnasium 20 180,000.00
Service 2,160,000.00
5 Income from sauna bath 45 472,500.00 5,670,000.00
6 Income from Meeting hole 20 150,000.00
service days/month 1,800,000.00
Subtotal 34,350,000.00
Grand total 57,390,000.00
Page 57
7.4. Financial statements
7.4.1. Projected Profit/loss statement
5 star international Hotel

Projected profit/loss statement
Table 7.14 Project Profit/loss statement
In ‘birr
Project Year
Description 1 2 3 4 5 6 7 8 9 10
Revenue 57,390,000 60,259,500 63,272,475 66,436,099 69,757,904 73,245,799 76,908,089 80,753,493 84,791,168 89,030,726
Less: Production
25,790,318 27,079,834 28,433,826 29,855,517 31,348,293 32,915,708 34,561,493 36,289,568 38,104,046 40,009,249
costs
Gross Income 31,599,682 33,179,666 34,838,649 36,580,581 38,409,610 40,330,091 42,346,595 44,463,925 46,687,121 49,021,478
Less: Interest on
loan 5,923,804 5,331,424 4,739,043 4,146,663 3,554,282 2,961,902 2,369,522 1,777,141 1,184,761 592,380
Less: Depreciation 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731
Profit before tax 20,896,146 23,068,511 25,319,875 27,654,187 30,075,597 32,588,458 35,197,343 37,907,053 40,722,630 43,649,366
Less: Income tax
7313651.22 8073978.79 8861956.08 9678965.58 10526458.90 11405960.22 12319069.96 13267468.52 14252920.36 15277278.13
(35%)
Net Profit 13,582,495 14,994,532 16,457,918 17,975,222 19,549,138 21,182,498 22,878,273 24,639,584 26,469,709 37,372,088
Note: Sales revenue is assumed to increase by 5% annually
Page 58
7.4.2. Projected cash flow statement

Projected cash flow statement
Table 7.15 Project cash flow Statement
Project Year
Description
0 1 2 3 4 5 6 7 8 9 10
Cash Inflow
Equity 22,076,289 - - - - - - - - -
Bank loan 51,511,340
Revenue 57,390,000 60,259,500 63,272,475 66,436,099 69,757,904 73,245,799 76,908,089 80,753,493 84,791,168 89,030,726
Depreciation 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731 4,779,731
Total Inflow 73,587,629 52,610,269 65,039,231 68,052,206 71,215,830 74,537,635 78,025,530 81,687,820 85,533,224 89,570,899 93,810,457
Cash Out Flow
Fixed Cost 47,797,310 - - - - - - - - -
Initial W.C 25,790,318 25,790,318 27,079,834 28,433,826 29,855,517 31,348,293 32,915,708 34,561,493 36,289,568 38,104,046 40,009,249
Loan Repayment 5,151,134 5,151,134 5,151,134 5,151,134 5,151,134 5,151,134 5,151,134 5,151,134 5,151,134 5,151,134
Total Out flow 73,587,629 30,941,453 32,230,968 33,584,960 35,006,651 36,499,427 38,066,842 39,712,627 41,440,702 43,255,180 45,160,383
Net Inflow - 21,668,816 32,808,263 34,467,246 36,209,178 38,038,207 39,958,688 41,975,192 44,092,522 46,315,718 48,650,075
Cumulative
- 21,668,816 54,477,079 88,944,325 125,153,503 163,191,711 203,150,399 245,125,591 289,218,113 335,533,832 384,183,906
balance
Page 59
7.4.3. Balance sheet
Current asset
Raw cost and utilities 12,360,000
Utilities 2,367,000
Administrative costs
Salary and wage 6,432,000
Employee benefits 1,608,000
Travel expense 643,200
Repair and maintenance 1,177,145
Insurance 477,973
Advertising expense 50,000
Telephone expense 365,000
Wi fi Internet service 60,000
Office supplies 100,000
Miscellaneous expense 150,000
Fixed cost
Land development 9,291795.52
Building & Constructions 42,643,475
Machinery and equipment 13,868,918
Procurement of Vehicles & furniture’s 2,862,000
Total fixed cost 68,793,341.76
Total asset 106,571,628
Liabilities
Bank loan 74,500,140
owners Capital 32,071,488
Total liabilities and capital 106,571,628
Page 60
7.5.3. Viability and other measurement
Promoter
Financial IRR computation
Table 7.16 Financial IRR computation
In ' birr
Year 0 1 2 3 4 5 6 7 8 9 10
Gross income 57,390,000 60,259,500 63,272,475 66,436,099 69,757,904 73,245,799 76,908,089 80,753,493 84,791,168 89,030,726
Total costs 73,587,629 25,790,318 27,079,834 28,433,826 29,855,517 31,348,293 32,915,708 34,561,493 36,289,568 38,104,046 40,009,249
Gross profit -73,587,629 31,599,682 33,179,666 34,838,649 36,580,581 38,409,610 40,330,091 42,346,595 44,463,925 46,687,121 49,021,478
Less: Profit tax 11,059,889 11,612,883 12,193,527 12,803,203 13,443,364 14,115,532 14,821,308 15,562,374 16,340,493 9049001.6
After tax net benefit -73,587,629 20,539,793 13,478,615 13,976,013 14,503,150 15,061,512 14,873,630 15,596,585 16,355,688 17,152,746 17,989,656
DF at 35% rate 1 0.741 0.549 0.406 0.301 0.223 0.165 0.122 0.091 0.067 0.05
Present Value -73,587,629 42,525,990 33,082,466 25,688,625 19,997,266 15,556,013 12,085,557 9,382,787 7,348,568 5,681,008 4,451,536
Net present Value 102,212,186 - - - - - - - - - -
DF at 30% rate 1 0.769 0.592 0.455 0.35 0.269 0.207 0.159 0.123 0.094 0.073
Present Value -73,587,629 44132910.0 35673624.0 28788976.1 23252634.6 18764876.1 15161880.4 12228386.1 9932679.7 7970369.8 6499243.0
Net present Value 128,817,951 - - - - - - - - - -
Page 61
 NPV (Net Present Value)
It is a method of calculating the expected net gain or loss from project by

discounting rate of all expected future cash inflow and outflows to the present
point in time In the above table shoes that NPV at 30% and 35 % discount rate
is
128.8 million and 102.2 million respectively, this figure is positive value or
NPV>0 it is indicate that accepted the project until 30 %and 35 % of discount
rate
Break-even Analysis
The break-even analysis establishes a relationship between operation costs and revenues. It
indicates the level at which costs and revenue are in equilibrium. To this end, the break-
even point of the project including cost of finance when it starts to operate at full capacity
( year 4) is estimated by using income statement projection.
BE = FixedCost = 23
% Sales – Variable Cost
 Payback Period (PBP)
The payback period is the amount of time required for a firm to recover its
initial investment in a project, as calculate from cash inflow
The investment cost and income statement projection are used to project
the pay-back period
PBP = Initial investment Cost

Gross Profit + Depreciation
= 106,571,628
19,582,495 + 4,779,731
4=5Years
The payback period =4 is less than the maximum acceptable payback
period (10) therefore accept the project.
 IRR
Project Proposal on 5 star international /tourist hotel

The internal rate of the project is the rate of discount that radios the present value of
the investigated project to zero. In calculating the IRR, the discount rate can be
adjusted until the NPV becomes Zero or at least as to zero.
Hence, the IRR of this project is calculated as follows After
tax IRR = 35 + 5 (102.2/128.8)
=33.9%
IRR=33.9% of the project returns its initial investment cost within its life
8. SENSITIVITY ANALYSIS
Sensitivity analysis is variant of scenario analysis in which each scenario

represents a change in only one variable, rather than a number of variables. For
the proposed project, the sensitivity of the project has been computed at 30% and
35% for sales reduction, operating cost increase and investment cost increased
accordingly, as described in table 7.16 the result shows that IRR at 33.9%
operating cost increase and 30 and 35% investment cost increase and 30%
service sales reduction. Predicting among these sales reduction is more sensitive
to the project and it should further expand after the project proposed life time
because in this case NPV equal zero at IRR=33.9
9. RISK ANALYSIS
The major risk of this project shall be high market price fluctuation and
turnover the skilled and trained man power. These risks can be mitigated. The
high staff turnover may be lessened by creating conductive working
atmosphere and providing some benefits. For this project, 25% benefit is
proposed for the permanent employees
Characteristic (Personal) Risk: This is the most important risk, which
should be seriously considered? As to this company, the promoter have
sufficient years of work experience in both government and private
organization (leading private business by engaging themselves), so personal
risk is minimum under this context
Business Risk: The fate of the business is generally found to be dependable.
The demand- supply analysis exhibits the need of the service of the business
63
organization. According to the overall demand the effect of competitors in the
sector would not be an immediate alarming threat at least for the coming few
years. In additional to this Long year experience of the owner in the field will
help to react against any adverse situation in the business. However, the reaction
of competitors should be attended. In additional to an advanced promotional work
and sustainable goodwill development by creating new and best quality products
with good service deliveries
Collateral Risk: Since the owners of the project are engaged on different related
business, there is no any risk related to collateral. In this regard, the proposed
building and other proposed equipment and the business as a whole are dependable
securities. The experience and skill of the owner as well as the manager and the other
expertise add confidence to the lenders. Therefore, there is no risk regarding
collateral in general.
Construction Risk: Construction risk is one of the most important areas of risk
that need great consideration during project implementation. In the case of 5 star
international hotel services, the construction work of the proposed building will
be made by phase with self-response supervision. Hence, there is no as such
serious risk related to construction work.
All the identified risks, which are related to the universally accepted lending
policy, are to the acceptable level that keeps the lender’s interest in safe position.
Furthermore, the quality of the assets of the company is dependable and the
projected finical reports show that the company will have a capacity to pay the
principal and interest without any problem within short period of time.
64
10. MONITORING AND EVALUATION
Monitoring and Evaluation (M&E) has long been recognized as a vital aspect
of development projects generally and of industrial and services projects in
particular. The monitoring of project performance consists of the tracking
of human, physical and financial resources and the recording of how they
are converted into outputs (project goods and services), and in turn,
outcomes and impacts.
11. CONCLUSION AND RECOMMENDATION
Conclusion: The Project is found to be operationally profitable & has significant

socio-economic benefits. According to the projected income statement, the
envisaged project starts earning profit from the first year of production. The
income statement and other profitability indicators show that the project is
viable. The project is believed to have significant social and economic benefits
that accrue to the society beyond those financial returns to its owner. The
most remarkable social benefits can be expressed in terms of job creation that
leads to reduction in the level of unemployment.
Recommendation: The project directly employs 125 persons; therefore,

considering the attractive financial and economic benefits the project is to
produce, the promoter has made the necessary preparation hoping that all
the concerned offices & financial institutions should give their support to
facilitate the implementation of this plan.
65

Abreham Five Star Hotel

Uploaded by

Copyright:

Available Formats

Abreham Five Star Hotel

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Abreham Five Star Hotel

Uploaded by

Copyright:

Available Formats

PROJECT PROPOSAL ON G+8 FIVE STAR INTERNAT INVESTMENT HOTEL

PROJECT LOCATION: -CENTRAL ETHIOPIA

PROMOTED BY: ABRAHAMTEKELE,

BY: BRIGHT STAR MANAGEMENT AND ENVIROMENTAL COLSTUNCY PLC

PROJECT TITLE Five star International Hotel

PRODUCTION CAPACITY Five star International Hotel

NPV (NET PRESENT VALUE) 101,439,417.00 BIRR

1. Background Of The project

The project feasibility study proposed on 5 star international tourist hotel

Project justification: International standard tourist hotel is high

Expected Standards of Five Star Hotels

Required notifications in Five star designated hotels

Special Facilities for Children

Facilities for Travelers with Disabilities

Morning Coffee/Afternoon Tea

Credit and Charge Cards Other Payment

Booking and cancellation procedures

License to Serve Alcohol

 Standard massage and sauna bathe service

The total area of the 5 star international tourist hotel

The total investment capital of the project is estimated at birr

Profitability: The financial analysis of the envisaged project is

financial projections using the income statement, cash flow

statement and financial internal rate of return (FIRR), the following

results are obtained.

 Income statement: According to the projected income

year of operation. Based on the 10 years financial projections the

projects average annual net profit after payment of bank interest,

depreciation and tax amounts to birr 16,593,732

 Cash flow statement: The cash flow statement also shows a

394,396,352 during the 10th year of operation indicating the

 FIRR Computation: The computation of the project FIRR

project is also very high. The project will provide:- 125

permanent employs, Generate revenue to government in the

 Conclusion and recommendation: The Project is found

to be operationally profitable, viable & has significant

socio-economic benefits. We recommended that according to

this attractive financial and economic benefit of the project

all concerned offices & financial institutions should give their

support to facilitate the implementation of this plan.

2.1. Investment in Ethiopia

2.2. Hotel and Tourism sector in Ethiopia

In adopting a planned and regulated approach the country is in a

2.3. Promoter Background

The promoter, has a work experience in hotel and management

According to the preliminary market research, the demand for

3.1. Project description and Justification

A hotel is an establishment that provides paid lodging on a short-term basis.

3.2. Project Objective

 To maximize the return on invested capital through modern Hotel

 To raise the significance and importance of the sector and

 To give quality and standard hotel service

 Effectively use local inputs and strengthening the linkage between

 To provide gainful employment to a large segment of the

 Increase government revenue through the different forms of taxes,

In general, the project is believed to have significant social and economic

3.3. Project location and justification

The proposed project of 5 star International hotel will planned to be located in