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Compedium of Diaspora opportunities

FOUR STAR BRANDED TOURIST HOTEL IN UGANDA

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Introduction

A franchise shall be brought from one of the world’s best hotel for travelers known as Holiday Inn Express Hotel. Due to the growth and development of the tourism sector, there is a need to exploit such an opportunity by establishing such a hotel such that when tourists come to the country, they don’t miss what is in their home land.

The franchiser will do the marketing of the hotel internationally hence making massive sales/ revenue.

However, the franchisee will be expected to pay 10% of the sales made monthly. The franchise shall be bought with cutesy that whoever will be a customer of holiday inn express, shall also be a customer in the precedent host.

The hotel shall be designed to the standards of the franchiser.

 

Its market is determined by local individuals and the level of tourists who come for the holidays since Uganda is gifted by nature which attracts a number of foreigners to come and spent their holiday especially during winter and summer seasons. Also government officials, diplomats and foreign investors having meetings, conferences and workshops are part of the market.

The business aims at having 70 rooms, consisting of single deluxe, double deluxe , family suits, 100 seat conference room, health club with sauna and gym, adults and kids swimming pool, 2 hotel shuttles, and parking for 30-40 vehicles.

The revenue potential is estimated at US$2,646,000 with a net profit margin of 32% and an estimated payback period of 1 year and 1 month.

The total capital investment for the project is US$ 3,011,725.

Hotel capacity

The hotel is a long term investment and for the first two years, it’s expected to have 50%-70% occupancy. However, full capacity utilization is at hosting 70 guests per day.

 

Capital Investment

Item units qty @ amount
land acres 2 160,000 240,000
buildings 1 2,000,000 2,000,000
housekeeping items 70 1,000 70,000
furniture &fittings 70 8,000 560,000
architectural plan 1 20,000 20,000
Motor vehicles and Equipment 2 50,000 100,000
generator 1 5,000 5,000
Computers 5 1,000 5,000
security items 1 10,000 10,000
telephone intercom lines 75 23 1,725
Total 3,011,725

Service and Operational costs in US Dollar

Direct costs units @ qty/day service cost/day service cost/month service cost/yr
Fuel litres 1.46 20 29 876 10,512
stationery 4 2 8 228 2,736
repairs & maintenance number 1 1 100 3,000 36,000
housekeeping 100 4 400 12,000 144,000
Direct costs units @ qty/day service cost/day service cost/month service cost/yr
supplies
foods and drinks tonnes&crates 3,000 1 3,000 90,000 1,080,000
advertising costs 5,000 60,000
franchise fee 266,686
telephone costs 5,000 60,000
sub total 116,104 1,659,934
general costs
salaries/wages 40,000 480,000
utilities(power & water) 30,000 360,000
Depreciation (Buildings) 3,333 40,000
Depreciation (furniture and fittings) 4,667 56,000
Depreciation Housekeeping items 1,944 23,333
Motor vehicles and Equipment 2,083 25,000
miscellaneous expenses 2,000 24,000
sub total 84,028 1,008,333
Total operating expenses 200,132 2,668,267

 

Probability Analysis

per day per month per year
Revenue (Rooms) 7,350 220,500 2,646,000
Revenue (other) 2,450 73,500 882,000
total operating expenses 7,412 222,356 2,668,267
Profit 2,388 71,644 859,733

 

Risk:

Fluctuations in tourist and visitor numbers which can be mitigated through proper marketing

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