PROJECT REPORT


Total built up area of the Proposed Building 1,06,256 Sq. ft. of which 37,174 is kept as car parking area & remaining 69,082 is the FAR Area. The FAR works out to 3.30, which is minimal. We can go up to 4 FAR.

The Project envisages construction of a Hotel consisting 50 Double Rooms, Restaurant and a Banquet Hall. The building will also have about 38,155 Sq. ft. of Commercial Area. The Commercial Area can be reduced and rooms or Banquet area can be increased as desired by the Directors.

The Restaurant (4th Floor) will have a Carpet Area of 7929 Sq. ft. (Can seat 112 Guests at a time) and will have ample area for Kitchen, Store and other Offices & Staff Cafeteria.

The company M/s. Nema Hospitality is a Private Limited Company. This company was taken over by the promoters in 2014. Nema Hospitality owns 48 cents (21000 Sq. ft.) of land facing Seaport-Airport Road at Kakkanad, the software technology capital of Kerala — very close to the Cochin Export Processing Zone, Infopark and Dubai Internet City. It is also very close to the District Collectorate and has direct approach to Cochin International Airport.

Cost of Construction Estimated

SI. No. Description
1 Cost of 48 Cents of Land (21000 Sq. ft.) 12.00 Cr.
2 Cost of Civil Work:
A. Foundation  3.00 Cr.
B. Car Parking Area

a) Cellar — 1- 928 m2 = 9985 Sq. ft. (24 Car parking area)
b) Cellar — 11 — 1314 m2 = 14138 Sq. ft. (29 Car parking area)
c) Cellar — 111 — 1213 m2 = 13051 Sq. ft. (30 Car parking area)
     37174 Sq. ft.
( @an average of Rs. 1200/- per Sq. ft.)

Total 83 covered car parking
 4.45 Cr.
C. Commercial Area

Ground Floor - 906.95m2= 9758 Sq. ft.
First Floor - 906.95 m2= 9758 Sq. ft.
Second Floor - 865.95 m2= 9758 Sq. ft.
Third Floor - 865.95 m2=  9317 Sq. ft.
    38591 Sq. ft.
(@ an average of Rs. 1200/- per Sq. ft.)
 4.63 Cr
D. Restaurant 736.97 m2 = 7929 Sq. ft.

(@ an average of Rs. 1500 per Sq. ft.)
 1.18 Cr
E. Rooms

Fifth Floor - 597.03 m2 = 6424 Sq. ft.
Sixth Floor - 578.03 m2 = 6219 Sq. ft.
Seventh Floor - 578.03 m2 = 6219 Sq. ft.
     18862 Sq. ft.
(@ an average of Rs. 1500/- per Sq. ft.)
 2.83 Cr
F. Conference Hall = 3700 Sq. ft.

(@ an average of Rs. 1500 per Sq. ft.)
 0.55 Cr
3 Cost of Electrical works
Total including 110 KV Cabling/transformer/DG Set etc. & distribution to rooms including fittings.
  1.03 Cr.
4 Cost of Air-conditioning
Air-conditioning 150 Tonnes with chilled water plant
  1.05 Cr.
5 Cost of Furniture, Fixtures, Kitchen & Restaurant   1.25 Cr.
6 Cost of Plumbing, Bathroom fixtures including water Tanks   1.25 Cr.
7 Fire fighting works including tanks   1.00 Cr.
8 Lift & Related Installations
5 No.s ( 4 Passenger + 1 Service Lift)
  1.08 Cr.
Total cost of Project 35.30 Cr.

As the construction of the building is planned by self the rates adopted are 30 % less than contract construction rates.

Source of Funds

SI.No. Description
1 Land already acquired 12.00 Cr.
2 Additional promoters contribution 2.00 Cr.
3 Probable investor contribution 14.00 Cr.
Total 28.00 Cr.

Return on Investment Expected

SI.No. Description
1 A/c. Double Rooms @ Rs. 2500/- per day x 50 Room x 30 days )
Expecting 40% occupancy in 1st Year
Commercial Area Lease Rentals 38155 Sq.ft.@Rs. 40/- per Sq.ft.
Banquet Hall & Restaurant
Total Turnover Expected
37,50,000/- = 15,00,000 +
= 15,26,000 +
=  5,00,000 +
=35,26,000
Less Electricity water & Staff Cost (@average 35% of Rs. 35,26,000/- Turnover) per month Rs. 12,34,100
Net Income (Total Turnover - Expenditure) = 22,92,000
per month
Annual Turnover 22.9 Lakhs x 12 = 2.75 Crore
in First year

The rate of occupation for rooms is taken at the lowest of 40% average but in reality will be much higher at 50 to 60% in the first year itself due to the proximity to a lot of software companies.

So there is a net short fall of 7.30 Crore which can be met by bank loan or by selling one floor of Commercial Space. The market rate of commercial space today is more than Rs. 10,000/- per Sq. ft. at the area.

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