General Manager‚ Phuket Beach Hotel From: Albert‚ Andy‚ Becca‚ Chris‚ & Derek Consulting Date: June 14‚ 2011 Re: Valuation of Potential Karaoke Pub Projects Thank you for retaining AaBCD Consulting in the valuation of your future capital improvement project. There are two mutually exclusive capital improvement projects under consideration: lease under-utilized space to an unrelated third party‚ Planet Karaoke Pub‚ or invest greater capital to open and manage your own nightclub‚ Beach Karaoke Pub
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PHUKET BEACH HOTEL: VALUING MUTUALLY EXCLUSIVE PROJECTS I. STATEMENT OF THE PROBLEM This is an assessment of the different costs and benefits of two mutually exclusive capital projects involving the use of an underutilized space located on the second floor of the main building of Phuket Beach Hotel (PBH). The first project‚ Planet Karaoke Pub (PKP) offered to sign a four-year lease agreement with (PBH) while the second project‚ Beach Karaoke Pub (BKP)‚ is a pub the PBH itself‚ plans to put
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Operating Cash Flow @ 10.75% Yr. 1 Yr. 2 2‚040‚000 2‚040‚000 -192‚500 -192500 -10‚000 -10‚000 -1‚650‚000 -1‚683‚000 187‚500 -56‚250 131‚250 192‚500 -770‚000 -770‚000 -770‚000 323‚750 292‚325 300‚650 245‚117 154‚500 -46‚350 108‚150 192‚500 Payback Period Discounted Payback Period Average Return on Investment NPV PI IRR Equivalent Annuity 2.46 yrs 3.01 yrs 39% 165‚017 baht 1.21 21% 52‚906 baht Working Notes 1. Rental income = baht 170‚000*12 for the years 1 and 2 and increase by 5% in the
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Log In Sign Up Explore Phuket Beach Resort Case AnalysisGraduate School of BusinessDe La Salle University I.Statement of the Problem Should the management of Phuket Beach Resort accept the offer made by PlanetKaraoke Pub to set up an outlet inside the hotel or should the managementoperate a pub‚ Beach Karaoke Pub‚ by itself? II.Case Background Mike Campbell‚ General Manager of Phuket Beach Hotel is considering an offermade by Planet Karaoke Pub‚ a fast expanding company‚ which is looking
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TO: General Manager of Phuket Beach Hotel RE: Investment Consultation: Planet Karaoke Pub Vs. Beach Karaoke The Phuket Beach Hotel faces development options in its future. Planet Karaoke Pub‚ a restaurant chain‚ has approached the hotel to obtain a 4 year lease to occupy a 3‚000 square foot space. Should the Phuket Beach Hotel invest in Planet Karaoke’s proposal? Or‚ should the hotel develop its own karaoke business? Kornkrit and Wanida believe Group 3 is the most equipped to handle the analysis
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Carlo V. Austria I. Overview * The case is about the Accra Beach Hotel on the Caribbean island of Barbados. West Indien Cricket Servies‚ an important international sporting event‚ sent a request to the hotel manager of the Accra Beach Hotel that concerns hosting WICS accomodation for a special rate. This rate involves a discount for 50 of the 141 rooms of the hotel. It is now then the call of the sales manager whether to accept the inquiry or not. But before the manager could decide on the
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Case 8 The Acua Beach Hotel Block Booking of Capacity During a Peak Period SHenvl Knrlns‚ JocuBN Wtntz‚ eNp CuntsroPHER Lovnlocr The sales manager for a Caribbean hotel wonders whether to accept a large blockbooking at a discount rate ftom a Sroup participating in an international sporting eaent. Do the promised broadcasts as the host hotel for the upcoming West Indies Cricket Series‚ an important international sporting event. publicity benefits justifu the risk of turning higher
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Case: The Accra Beach Hotel I. SITUATION ANALYSIS: A. Case Summary The case is about the Accra Beach Hotel on the Caribbean island of Barbados. The hotel manager got a request from the West Indien Cricket Board (WICB) about hosting several cricket teams while the West Indien Cricket Servies‚ which is an important international sporting event. The head of the WICB was asking for a discount for 50 of the 141 rooms of the hotel. Now the sales manager has to decide whether to accept the inquiry
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Phuket Beach Hotel Case Analysis Phuket Beach Hotels (PBH) management has been approached by Planet Karaoke Pub (PKP) to lease a vacant space within the hotel. Management is intrigued by the offer because the space is currently not being used. Due to the recent success of karaoke pubs management is also considering creating a pub which they would call Beach Karaoke Pub (BKP). Finally‚ there is a possibility that the best option will be to seek an entirely
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CASE #7 ACCRA BEACH HOTEL: BLOCK BUILDING OF CAPACITY & REVENUE MANAGEMENT PRODUCT SERVICE DR. KERK BURBANK DONE BY KEZIE THOMAS September 30‚ 2011 1. What are the key considerations facing the hotel as it reviews the booking request from the WICB? Three concerns that Cherita and the GM should question when reviewing the booking request from the West Indies Cricket Board (WICB) are: i. Whether revenue- Income/Expenses‚ would be good or not ii. The impact on their regular guests‚ i.e. the
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