Published Paper Details:

This research work aims to develop a cost model for hotel projects to determine the preliminary cost of a proposed hotel to facilitate investors and owners during the early decision-making process regarding investment in Hotel projects. The complexity and large variation in the hotel industry limits the scope of this research to develop a cost model only for the mid-scale range of hotel projects which comprises of 3 star and 4 star rated hotels. The research includes the understanding of the hotel industry, its classification, the feasibility of hotel projects, and various other parameters associated with the establishment of hotel projects. This cost model largely helps in project cost and areas optimization where every input value can be compared with a set of range of values from minimum to maximum and accordingly the rates and areas can be adjusted. It can be used for those proposed hotel projects which are in the stage of hotel feasibility analysis and this cost model can be a part of the financial analysis. It would also help in optimising the cost of the project and no of keys that can be obtained in a project by optimising and alternating the values required in the cost model and by also analysing it in terms of revenue generating parameters such as no of keys, food & beverage, banquet & meeting facilities, etc. The cost model has been developed using the case study data analysis of a similar range of hotels, and by incorporating requirements using building bye-laws and guidelines based on hotel projects. The outcome of this research will have the cost model and area programming framework for the mid-scale segment of hotel projects.