ECONOMIC FEASIBILITY STUDY OF EMERALD HOTEL IN PANGANDARAN FINAL PROJECT

• Main Author: Immanuel (NIM : 19013125), Bernhard
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/26085
• Institution: Institut Teknologi Bandung

The purpose of this research is to assess the feasibility study of Emerald Hotel which is located in Pangandaran, West Java. The research is conducted to find out whether this project is feasible or not and to give a recommendation what steps must be taken to make the project more profitable. Pangandaran Beach as a tourist destination site has increased its popularity from year to year, therefore, the high quality of accommodation to retain the tourists is needed. However, there is a lack of availability of this accommodation that can result in loss of potential tourist due to switch to another tourism object and the feasibility study of the hotel in economic aspect had not been conducted. This research will explain theoretical foundation related to economic feasibility study which is taken from financial text books and websites. Theoretical foundation provides clear comprehension about terms and concepts used in this research. Moreover, this research describes the systematic method in order to develop the research from the introduction until the conclusion. To find out whether this project in this research is feasible or not, the author collected amount of secondary data gathered from Emerald Hotel's budget plan and interview with its management. Then, this research calculates the data in order to find Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PBP) to conclude whether this project is feasible or not. The last part of this research provides conclusion result of the project and gives some recommendation for hotel's management and Pangandaran government. <br /> <br /> <br /> <br /> The conclusion of this project based on data calculation in this research is Emerald Hotel project is feasible to do. The result of Net Present Value is Rp 34,013,249,479 which is greater than zero, Internal Rate of Return is 36.15% which is greater than WACC (11.25%) as hurdle rate, and Payback Period for 3 years 2 months. In doing risk analysis using sensitivity analysis, the author increased and decreased 10% annual revenue of the hotel as the variable with the most impact and most likely to occur. The result of the pessimist approach which is 10% decreased of the annual revenue is still feasible because its Net Present Value still greater than zero and its Internal Rate of Return still greater than WACC. <br /> <br /> <br /> <br /> Keywords: Net Present Value, Internal Rate of Return, Payback Period