#TITLE_ALTERNATIVE#
PT Asuransi XYZ is a insurance company would like to escalate their business area outside insurance in order to increase their profitability. For this purpose, PT Asuransi XYZ already has several business proposal which required enormous funding. One of them is Hotel X, located at Yogyakarta. The...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/7284 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | PT Asuransi XYZ is a insurance company would like to escalate their business area outside insurance in order to increase their profitability. For this purpose, PT Asuransi XYZ already has several business proposal which required enormous funding. One of them is Hotel X, located at Yogyakarta. There are two main consideration in acquiring Hotel X, which are: government rules in insurance through SK Menteri Keuangan No. 481/KMK/017/1999 about RBC (Risk Based Capital). One of them is about risk of investment. Inability to fulfill this requirement can resut insurance company to lost their license. <br />
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Funding for acquiring hotel and other business proposal is achieved by sale & leaseback a building in Jakarta. This final project focus on financial studies and post-acquisition act to Hotel X. This final project is analized by using DCF (Discounted Cash Flow) which project future cash flow based on income statement. There are two alternative for PT XYZ after acquisition, first operate hotel as before acquisition without changes, second one is by adding room and upgrade hotel's status from three jasmine become two star hotel. On the second alternative there are further choice, to divest or to operate Hotel X? In this final project there is sensitivity analysis based on occupancy rate from 55%, 65% and 75%. <br />
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Feasibility studies shows that PT XYZ must do second alternative to make this acquistion feasible. Based on 65% occupancy rate, NPV Rp20.700.060.000,00 and IRR 16,65% dan payback period 9,75 years. Next step is to divest Hotel X and receive net income after tax Rp14.500.679.000,00. Refinancing is not suggested due to high interest payment yearly and this fund must be returned to bank. <br />
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Construction of new rooms and upagrading hotel's status should be done in approximately one year. Construction time is very critical to reduce the effect time value of money. <br />
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