An Evaluation On The Financial Benefit Of Hyatt Regency Qingdao’s Restaurant And Bar Construction Project

Asian Restaurant and Bar project at Hyatt Regency Qingdao is a modern catering and entertainment construction project to be carried out by Shandong Commercial Group General Corp. The completion of this project will improve the pattern of food and beverage at Hyatt Regency Qingdao, and exert an active role in the further enhancement of both economic efficiency and the promotion of public imagery of this hotel.The thesis will first analyze its opportunities and prospects, based on the facts that Qingdao is a famous tourist city with abundant tourism resources and convenient transportation, attracting a large number of tourists from home and aboard. The sufficient tourist and unique geographical advantages provides an excellent investment opportunity for Hyatt Regency Qingdao’s new Asian restaurant and bar construction project. What’s more, according to the national 12th Five Year Plan that the country will strive to develop tourism into a strategic pillar industry of the nation’s economy. Opportunities and challenges coexist among the Asian restaurant and bar project; however, the analyzed result shows that the development of the hotel industry as part of tourism will have broader prospects.Through the research of micro policy and economic background, this paper in-depth elaborate the basic theory of project investment benefit evaluation and its evaluation model. On the basis of this, this paper utilizes several financial indexes to analyze the realizable financial benefit of this project. At first, through the feasibility analysis to measure and calculate the operating data in detailed. The result displays the good financial condition and profitability of this project in the next five years. Then, it further analyzed the construction environment and concrete location of this Asian restaurant and bar project and conducted the analysis, result suggesting a favorable market environment for this environment project. The powerful investor provides strong fund guarantee for the construction and facilities of this project, the professional management team offers perfect standard and plan for the future operation, in order to promise the quality of the service. The dishes and market positioning are consistent with the customer sources of Qingdao hospitality industry. In addition, the certified property of this project will keep the higher appreciation expectation in the future. On the other hand, there are some challenges and difficulties which this project has to face up. Firstly, in terms of market entrance time, Asian restaurant and bar has been behind other similar competitors; secondly, the vicious competition exists in the hospitality industry; thirdly, the profit margin of food and beverage is still shrinking.In the third part, based on the serious measurement towards its operating data, through the calculation of average break-even turnover, investment payback period, NPV and a series of key financial indicators, and implementation solvency analysis this thesis also explores the possible risks in the implementation process of this project, providing relevant suggestions to possible problems that may occur in construction period of even during operating. The hotel financial risk and market supply risk result in the uncertainty of the Asian restaurant and bar project’s financial benefit, so this paper applies break-even analysis, sensitivity analysis and probability analysis into this project, and tries to explore uncertain factors and corresponding solutions. The superior solvency and accessible break-even point have certified the project feasibility again. Though the sensitivity analysis, this paper studies out that the operating revenue is the most importance factor which will affect the financial benefit maximization in this project. In addition, the probability analysis shows that the anticipated value of NVP is relatively high. Though the above analysis, based on the sufficient investment, professional management team, accurate positioning and stable customer volume, the increasing operating revenue will be a realizable target.