FEASIBILITY STUDY OF SUDUT GROUP’S HOTEL AND RESTAURANT BUSINESS AT PANTAI INDAH KAPUK 2

• Main Author: Christopher Wirja, Daniel
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/82957
• Institution: Institut Teknologi Bandung

The hospitality sector is crucial to Indonesia's economy, especially in cities like Jakarta, Bandung, and Surabaya. Sudut Group, with its successful ventures in Bandung, plans to expand into Pantai Indah Kapuk 2 (PIK 2) in Jakarta. This study evaluates the economic feasibility of this new project. The main goal was to determine the financial viability of Sudut Group's new hotel and restaurant project using capital budgeting techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. Additionally, sensitivity analysis and Monte Carlo simulations assessed the project's risks and uncertainties. The financial analysis yielded promising results. The NPV was IDR 54,881,243,591, indicating significant value generation. The IRR was 19.33%, higher than the 16.58% cost of equity, suggesting strong potential returns. The payback period was approximately 6.56 years, within the acceptable limit of 15 years. Sensitivity analysis identified critical variables impacting profitability, such as restaurant COGS, hotel occupancy rates, and pricing. Monte Carlo simulations, involving 1,000 trials, provided a distribution of possible NPV outcomes, with an average NPV of IDR 44,318,599,606, ranging from IDR 30,574,495,873 to IDR 58,544,874,816. The research concludes that Sudut Group's proposed project in PIK 2 is economically feasible, with substantial potential for profitability and growth. Comprehensive financial analysis and risk assessments support informed decision-making by stakeholders, highlighting both opportunities and challenges.