my student number which should use in this question is 148724
CIVL 394 FINAL PROJECT.pdf - Adobe Acrobat Pro DC File Edit View Window Help -ox Home Tools CIVL 394 FINAL PR... X Sign In U Share SELANGOR HOTEL PROJECT Due date: 13-Jan The New Year eve parties for 2011 had been the best ever in Malaysia. The Hotel Industry was booming. The campaign for the recently concluded "Visit Malaysia" year and the imaginative steps taken by the government and the private sector were paying off rich dividends. The aura of the exotic east blended with the modern amenities to attract tourists from around the world. ement of the Selangor hotel chain was excited about the new possibilities of business. Ms. Rohana Omar had recently completed graduate studies in hotel management and had taken over as CEO of the chain. She was now considering a major expansion plan for Hotel KL - the chain's flagship hotel established in 1997. Although a busy and profitable hotel serving the middle class local traveler and the budget conscious young tourist from the West, Hotel KL was ill-equipped to capitalize on the big spenders now being drawn to Kuala Lumpur. Ms. Omar had ambitious plans - a swimming pool, a modernized kitchen, a shopping arcade to sell Malay handicrafts and art objects, a fancy restaurant serving traditional local fare, a health club, an addition of 50 luxury suites, and a complete refurbishing(renew) of the existing 102 rooms. CIVL 394 FINAL PROJECT.pdf - Adobe Acrobat Pro DC File Edit View Window Help - * Home Tools CIVL 394 FINAL PR... X Sign In Share But her training had also taught her to respect the value of quantitative analysis to determine the desirability of the expansion proposal before making any commitments. A valuation of the assets and liabilities of the hotel was done in December 2010. The existing hotel building was valued at $200,000 in year 2010 (including the kitchen and other equipment). The land on which the hotel stands now worth $600,000 and it is estimated the price will not change for next 10 years. The company had taken a long term loan of $400,000 for the purchase of land and construction of the original building back in 1997. An amount of $140,000 is still outstanding from the loan and should be repaid according to equal installment of loan principle for 7 years starting year 2011and 5% fixed interest rate on loan balance of each year. This repayment will be made irrespective of whether the hotel was kept and operated as such, refurbished or sold. It is estimated that if this facility is continued in operation until 2017, the hotel building and other fixed assets (excluding land) could then be sold for $110,000. Operational plan I shows the data for 2011-2017 if no refurbishing or expansion is undertaken. CIVL 394 FINAL PROJECT.pdf - Adobe Acrobat Pro DC File Edit View Window Help -ox Home Tools CIVL 394 FINAL PR... X Sign In Share Operational Plan I of Hotel KL (2011-2017) Average Tariff: $25/day Average Occupancy: 95% All the values are In $ Thousands (unless otherwise indicated) Year 11 12 13 14 15 16 17 Restaurant Sales Cost of Hotel Supplies Cost of Restaurant Raw Mat. Cost of Entertainment Utilities Wage Bills Skilled Unskilled Advertising Misc. Expenses 400 410 422 430 440 455 470 48 50 51 52 53 55 56 First 3 digits of your student number and 2% increase each year 6 7 7 7 8 8 45 47 50 51 52 53 54 22 58 28 60 29 62 31 64 32 65 34 68 46 47 49 51 52 - x CIVL 394 FINAL PROJECT.pdf - Adobe Acrobat Pro DC File Edit View Window Help Home Tools CIVL 394 FINAL PR... X Sign In Food ... 1000--*0 U Share Hint 1: The value of the land and building and equipment in 2010 should be considered as initial cost therefore year 2010 is our base year. Hint 2: For the cost of raw material for restaurant in existing case every students have to use first 3 digit of their student number for year 2011 and increase it by 2% for each year to the end of operation period. Investment Plan for Expansion: Right behind Hotel KL was a plot of government land that was up for sale and Ms Omar planned to buy it. Some additional expenditure, however, would be required to develop the land and make it suitable for construction. The investment plan for the expansion/renovation is as follows:- In $ Thousands 2011 2012 90 Cost of Additional Land Cost of Developing Land Cost of Additional Building: Swimming Pool etc. a. Labor b. Material Cost of Equipment: a. Traded (Kitchen Equip.) b. Non-traded Cost of Renovation of Existing Bldg - x CIVL 394 FINAL PROJECT.pdf - Adobe Acrobat Pro DC File Edit View Window Help Home Tools CIVL 394 FINAL PR... X Sign In U Share Note that the total value of the land for existing and additional will not change for next 10 years. Also the residual value of the buildings and equipment of the expanded and refurbished hotel in 2018 is expected to be $500,000. Since developing and refurbishing of existing hotel will take one year, therefore average tariff, occupancy and total number of hotel room will start changing from year 2012 onward and it will remain the same as existing case for year 2011. The expanded hotel was not expected to immediately have the kind of high occupancy rates enjoyed by the existing hotel. However, the tariff would be higher and occupancy would steadily improve. The Operational Plan II for the expanded hotel is as given below: Operational Plan II for the Expanded Hotel Average tariff: $40/day (from 2012) All the values are In $ Thousands (unless otherwise indicated) Year 11 12 13 14 15 16 17 Average Occupancy Restaurant Sales Cost of Hotel Supplies Cost of Restaurant Raw Mat. Cost of Entertainment Utilities Wage Bills Skilled Unskilled Advertising Misc. Expenses 95% 50% 60% 70% 75% 85% 90% 400 520 632 742 855 875 900 48 80 125 130 136 155 180 Last 3 digits of your student number with 5% increase each year 6 25 25 26 26 28 28 45 90 95 97 90 93 97 1947 57 148 94 45 86 48 140 104 87 49 142 105 89 51 149 116 90 52 155 117 91 54 160 125 92 CIVL 394 FINAL PROJECT.pdf - Adobe Acrobat Pro DC File Edit View Window Help -ox Home Tools CIVL 394 FINAL PR... X Sign In U Share SELANGOR HOTEL PROJECT Due date: 13-Jan The New Year eve parties for 2011 had been the best ever in Malaysia. The Hotel Industry was booming. The campaign for the recently concluded "Visit Malaysia" year and the imaginative steps taken by the government and the private sector were paying off rich dividends. The aura of the exotic east blended with the modern amenities to attract tourists from around the world. ement of the Selangor hotel chain was excited about the new possibilities of business. Ms. Rohana Omar had recently completed graduate studies in hotel management and had taken over as CEO of the chain. She was now considering a major expansion plan for Hotel KL - the chain's flagship hotel established in 1997. Although a busy and profitable hotel serving the middle class local traveler and the budget conscious young tourist from the West, Hotel KL was ill-equipped to capitalize on the big spenders now being drawn to Kuala Lumpur. Ms. Omar had ambitious plans - a swimming pool, a modernized kitchen, a shopping arcade to sell Malay handicrafts and art objects, a fancy restaurant serving traditional local fare, a health club, an addition of 50 luxury suites, and a complete refurbishing(renew) of the existing 102 rooms. CIVL 394 FINAL PROJECT.pdf - Adobe Acrobat Pro DC File Edit View Window Help - * Home Tools CIVL 394 FINAL PR... X Sign In Share But her training had also taught her to respect the value of quantitative analysis to determine the desirability of the expansion proposal before making any commitments. A valuation of the assets and liabilities of the hotel was done in December 2010. The existing hotel building was valued at $200,000 in year 2010 (including the kitchen and other equipment). The land on which the hotel stands now worth $600,000 and it is estimated the price will not change for next 10 years. The company had taken a long term loan of $400,000 for the purchase of land and construction of the original building back in 1997. An amount of $140,000 is still outstanding from the loan and should be repaid according to equal installment of loan principle for 7 years starting year 2011and 5% fixed interest rate on loan balance of each year. This repayment will be made irrespective of whether the hotel was kept and operated as such, refurbished or sold. It is estimated that if this facility is continued in operation until 2017, the hotel building and other fixed assets (excluding land) could then be sold for $110,000. Operational plan I shows the data for 2011-2017 if no refurbishing or expansion is undertaken. CIVL 394 FINAL PROJECT.pdf - Adobe Acrobat Pro DC File Edit View Window Help -ox Home Tools CIVL 394 FINAL PR... X Sign In Share Operational Plan I of Hotel KL (2011-2017) Average Tariff: $25/day Average Occupancy: 95% All the values are In $ Thousands (unless otherwise indicated) Year 11 12 13 14 15 16 17 Restaurant Sales Cost of Hotel Supplies Cost of Restaurant Raw Mat. Cost of Entertainment Utilities Wage Bills Skilled Unskilled Advertising Misc. Expenses 400 410 422 430 440 455 470 48 50 51 52 53 55 56 First 3 digits of your student number and 2% increase each year 6 7 7 7 8 8 45 47 50 51 52 53 54 22 58 28 60 29 62 31 64 32 65 34 68 46 47 49 51 52 - x CIVL 394 FINAL PROJECT.pdf - Adobe Acrobat Pro DC File Edit View Window Help Home Tools CIVL 394 FINAL PR... X Sign In Food ... 1000--*0 U Share Hint 1: The value of the land and building and equipment in 2010 should be considered as initial cost therefore year 2010 is our base year. Hint 2: For the cost of raw material for restaurant in existing case every students have to use first 3 digit of their student number for year 2011 and increase it by 2% for each year to the end of operation period. Investment Plan for Expansion: Right behind Hotel KL was a plot of government land that was up for sale and Ms Omar planned to buy it. Some additional expenditure, however, would be required to develop the land and make it suitable for construction. The investment plan for the expansion/renovation is as follows:- In $ Thousands 2011 2012 90 Cost of Additional Land Cost of Developing Land Cost of Additional Building: Swimming Pool etc. a. Labor b. Material Cost of Equipment: a. Traded (Kitchen Equip.) b. Non-traded Cost of Renovation of Existing Bldg - x CIVL 394 FINAL PROJECT.pdf - Adobe Acrobat Pro DC File Edit View Window Help Home Tools CIVL 394 FINAL PR... X Sign In U Share Note that the total value of the land for existing and additional will not change for next 10 years. Also the residual value of the buildings and equipment of the expanded and refurbished hotel in 2018 is expected to be $500,000. Since developing and refurbishing of existing hotel will take one year, therefore average tariff, occupancy and total number of hotel room will start changing from year 2012 onward and it will remain the same as existing case for year 2011. The expanded hotel was not expected to immediately have the kind of high occupancy rates enjoyed by the existing hotel. However, the tariff would be higher and occupancy would steadily improve. The Operational Plan II for the expanded hotel is as given below: Operational Plan II for the Expanded Hotel Average tariff: $40/day (from 2012) All the values are In $ Thousands (unless otherwise indicated) Year 11 12 13 14 15 16 17 Average Occupancy Restaurant Sales Cost of Hotel Supplies Cost of Restaurant Raw Mat. Cost of Entertainment Utilities Wage Bills Skilled Unskilled Advertising Misc. Expenses 95% 50% 60% 70% 75% 85% 90% 400 520 632 742 855 875 900 48 80 125 130 136 155 180 Last 3 digits of your student number with 5% increase each year 6 25 25 26 26 28 28 45 90 95 97 90 93 97 1947 57 148 94 45 86 48 140 104 87 49 142 105 89 51 149 116 90 52 155 117 91 54 160 125 92
