HOTEL BUSINESS PLAN
Project: Hotel along Waiyaki way opposite Sigona Golf Club.
Client: ……………….. …………………
Location: Sigona town, near Kikuyu town.
Number of rooms= 300
MAY 13TH 2014
EXECUTIVE SUMMARY
This is a project proposal for the construction of a high class hotel comprising of 200 No. rooms on a parcel of land situated at Sigona.
The project has been conceived, designed and will be implemented by www.a4architect.com .
The estimated development cost for the project is KES 1.6 Billion. USD 18 Million.
The project completion period shall take 24 months from ground breaking to hand over.
WWW.A4ARCHITECT.COM
A4architect is a dynamic property consulting company specializing in providing a one-stop service for the management and development of a variety of property development projects. It provides its clients, who may be property owners, developers or tenants, with the expertise to guide a project through the complex development process from concept through to building completion.
Depending on the requirements of their client, A4architect can provide a full or partial consulting service. The company’s involvement can vary from sourcing suitable sites, arranging local authority approvals, managing the professional team or providing a complete project management service.
The principals behind the firm have several years experience in designing and managing to completion several projects of various natures .
THE PROJECT
The project comprises the construction of 300 No. hotel rooms each self-contained, and a restaurant for Sale at Sigona, in a 10 acre piece of land opposite Sigona golf club.
DEVELOPMENT BUDGET
| Cost Item | Kshs | USD | % |
| Land | 300,000,000.00 | 3,333,333.33 | 18.23375676 |
| Preliminary | 300,000.00 | 3,333.33 | 0.018233757 |
| Construction | 1,000,000,000.00 | 11,111,111.11 | 60.77918921 |
| External Works | 10,000,000.00 | 111,111.11 | 0.607791892 |
| Contingency | 15,000,000.00 | 166,666.67 | 0.911687838 |
| Professional fees | 140,000,000.00 | 1,555,555.56 | 8.509086489 |
| Project Management fees | 10,000,000.00 | 111,111.11 | 0.607791892 |
| Marketing | 10,000,000.00 | 111,111.11 | 0.607791892 |
| Restaurant | 0.00 | 0.00 | 0 |
| Financial Charges | 160,000,000.00 | 1,777,777.78 | 9.724670273 |
| Total | 1,645,300,000.00 | 18,281,111.11 | 100 |
SALES PROJECTIONS
1.11 Projected sale price per hotel room unit KES 8,000,000 for 200 rooms .
This price is scheduled to increase as demand for the rooms rises.
1.12 Overall sales revenue= USD 17,700,000.00
Daily rates at worst case scenario=kes 9,000 USD 100.
Occupancy rate =80%
Management fees=20% of revenue.
Total Monthly collection per room =KES 2,400
Total monthly collection for 200 rooms = USD 480000
LOCATION
Sigona is situated 15 minutes drive[25 km] from Nairobi’s Central Business District along the international Nairobi to Uganda highway. The site is served by the Southern Bypass, which is an International road linking Mombasa to Rwanda and Uganda.
The area is connected to the mains water supply from the Kiambu Municipal Council and also has easily connected electricity supply from KPLC.
The immediate locality consists of subdivisions each measuring an eighth of an acre. Developments in this area are predominantly single family residences. The occupancy is predominantly homeowners. With the new construction of the bypass, developments around this area are rapidly transforming into high rise commercial nature.
The majority of the buildings here are of reasonably well constructed and maintained.
MARKET DESCRIPTION
Given the proximity of the site to Nairobi’s CBD, Southern Bypass , Thogoto town, Kikuyu town, Karen, Dagoretti market, the site would realize good returns on a multi level hotel development.
Property appreciation is expected to be in the range of 20% p.a.
The planned development intends to maximize this potential by creating accommodation that is spacious whilst at the same time making optimum use of the vertical space available.
At the moment, the closest hotels nearby are located at Kikuyu town,5 km away.
Wida highway motel, located 8km away at Sigona, charges kes 4,000 per night.
The planned development would meet an existing need since the site is located along the soon to be completed busy highway from Mombasa, Tanzania, Zambia and Southern Africa to Uganda, Rwanda and Central Africa.
COMPETITION
In the locality of the planned development, there exist several hotels in Kikuyu town, 3 km away.
Wida Highway motel, 6 km away, is the closest competition.
EXECUTION OF THE PROJECT
A4architect will in this provide the clients with a full design/build service. This shall include
1. Design and specification
Architectural, structural, mechanical and electrical drawings shall be prepared and necessary approvals sought.
During the various stages of the design, the client shall be kept fully informed and client approval sought prior to proceeding to the next stage. The engineering design shall be done by registered engineers under the guidance of A4architect. Detailed specifications shall be developed with close consultation with the client.
2. Project estimates
Subsequent to completion of the design, a Quantity Surveying firm under the guidance of A4architect shall undertake construction cost estimates for the project.
3. Preparation of tender and contract documents
After final design has been done and client approval obtained, tender documents shall be drawn up for the general and specialist contractors. The specialist contract documents shall be prepared with guidance from the relevant engineers.
4. Tendering
Selected contractors shall be invited to tender for the various work packages. We shall then analyze the tenders returned and forward our recommendation to the client.
5. Contract documentation
With the contractors have been selected, we shall draw up the required contract documents and enter into contract with the contractors on the client’s behalf.
6. Project management
Subsequent to the contracts being signed and mobilization to the site, we shall provide superintendence and project management. This will entail ensuring that the project is brought in on time and under budget by constant monitoring of operations on site and remedying any issues that may prevent timely completion or cause expenditure to exceed the budget.
7. Contract administration
We shall handle all matters relating to the various contracts including but not limited to stage payments, performance bonds, extensions of time and relationships between the various trades involved in the project’s execution.
8. Sales and marketing
In conjunction with an estate agency approved by the client, we have produced a presentation package to be used in the marketing of the Motel.
PROJECT TIMELINES
a) Design to Tender
The design to tender process will take a total of 1 month. This will include commissioning of all engineering design, preparation of bills of quantities and obtaining of all relevant approvals for the development.
b) Construction
Construction of the entire project is estimated to take a maximum of 24 months.
Prepared By
Francis Gichuhi Kamau B.Arch. U.o.N M.A.A.K[A] Registered Architect
+254 721 410684
A4architect.
