REASSESSMENT OF FEASIBILITY STUDY YELLO HOTEL SURABAYA

• Main Author: Windianti, Dinny
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78768
• Institution: Institut Teknologi Bandung

Surabaya, capital city of East Java, a progressive city with rapid development. Equipped with modern facility, the city offers standard of accommodation that can fulfil all of preferences and budget of the visitors. Yello Hotel is one of the recently built accommodations in the downtown of Surabaya. With the capacity of 170 rooms, Yello Hotel is expected to fulfil the demand of MICE (Meeting, Incentive, Convention and Exhibition) and commercial necessity. This research is conducted in order to determine whether the Yello Hotel project is feasible or not using several approaches; NPV, IRR, PP, and PI. Monte Carlo simulation is performed consequently to comprehend the probability of the project to success. Subsequently, sensitivity analysis is accomplished in order to determine the sensitive variables in this project. The following stage in this research is risk assessment, whereas the risks in the project are identified and mitigated in accordance to the risk appetite of the shareholder. The study shows that Yello Hotel project is feasible. The NPV of this project is IDR 156,651,547,100 with IRR 17.15% and PI 1.66. Therefore, based on Monte Carlo Simulation, there is 40% of probability the NPV of the project will be less or equal to zero and 60% of probabililty the NPV will be positive. Furthermore, the payback period of the project is projected 8 years 2 months. Guest Room Rate and Occupancy Rate of Guest Room are sensitive variables in this research. Based on the Risk Assessment, The risk that has to be avoided is Occupancy Rate Projection Proves Wrong. The risk can be prohibited by Implementing good marketing strategy and opening marketing channel locally, nationwide and international.