Hotel Investment Project Feasibility Analysis Is Based On Research

With the rapid development of China tourism industry and hotel industry, especially 2008 Beijing Olympics Games, 2010 World Expo in Shanghai, 2010 Asian Games coming, hotel projects in the pipeline in different areas of China are at a hectic pace. Lodging Econometrics, the Global Authority for Hotel Real Estate reported China has 496 hotel projects having 170,417 rooms in the pipeline by the end of first Quarter 2007.It counts for 66% of total guestrooms in the Asia Pacific Regional pipeline and second only to the U.S.How to gurantee so many hotel investment projects succeed and meet their objectives of development budget and trading projection, finally keep hotel owners, hotel investors and hotel operators satisfied, a comprehensive feasibility study should be made before launching any hotel investment projects, especially application of advanced, scientific, systematic theories and tools and techniques of feasibility study for hotel investment projects.Aiming at the issues above and from the viewpoint of a hotel Management Company to understand hotel investment projects, this paper takes the Kunshan DF Resort Hotel for example and according to the theories and methods of feasibility study for investment projects and project management as the major theoretical basis in combination with practice of feasibility study for hotel projects, this paper conducts the methodology research of feasibility study for hotel investment projects,namely studies the system of practices,procedures,techniques,rules used by those who work in the feasibility study for hotel investment projects.This paper mainly focuses on the major project scope of feasibility study projects such as market feasibility analysis, economy feasibility analysis, uncertain analysis, financial evaluation. In combination with qualitative analysis and quatitative analysis method,this paper mainly studies practical application of feasibility study for hotel projects by utilizing economic environmental analysis,site analysis,lodging supply analysis,lodging demand analysis,competitor analysis, key operation assumption and trading projection, financial performance index calculation, scenario analysis and financial evaluation. In addition, it also applies tools and techniques such as Trading Projection Model,Work Breakdown Structure,WBS Dictionary,Precedence Diagramming Method, Net Present Value,Payback Period,Internal Return Rate,GOP Rate,Expected Monetary Value etc.The purpose of this paper is for hotel owners, hotel investors, hotel operators and related participators to further understand and practise the methods of feasibility study for hotel investment projects.