CHAPTER 1

INTRODUCTION

Rationale

The problem of looking for a foster home or a house for shelter is now a concern

by the tourists that go through the City of Valencia and Municipality of Maramag. This

could be observed also by the parents and guests of Central Mindanao University students

and staff during the special events such as graduation, recognition programs, and the like.

The need for function halls can also be witnessed in times of family and student gatherings.

These reasons ignited the idea of a hotel at Central Mindanao University to accommodate

the growing demand that everybody faces from time to time. It will also serve as an in-

house on-the-job-training for the future hotel and restaurant managers.

Testing the viability, probability or likelihood of hotel construction in the said area

is the main goal of this paper. The term feasible can be associated with such terms. It is

knocking at the door of opportunities, assess it, and if possible, make it come into a reality.

A feasibility study is used as a tool for analyzing if a proposed task can operate as it

undergoes with different assumptions as to technology, sales/revenue, costs, and

marketability.

This study focused on the construction of a two-story hotel at Central Mindanao

University with the information, assumptions and recommendations gathered for the

purpose, both quantitative and qualitative. This caters its marketability and estimated cost

of construction as well as its projected income for a couple of years with financial ratios

for a better analysis.

 This will be a partial requirement of the course, Management Consultancy, which

is conducted by Central Mindanao University BS Accountancy 5th year students.

Statement of the Objectives

The main objective of this study is to develop and present an analysis that addresses

the viability, marketability and profitability of constructing a hotel as another university

income generating project.

Specifically, this study aims to:

1. Propose a design that will suit the customers preferences

2. Determine the facilities and amenities to offer that meets the customers

satisfaction

3. Identify personnel required for hotels operation

4. Establish an analysis of funding arrangement for building construction

5. Compute the cost and benefit in establishing the hotel

Significance of the Study

Primarily, the study will serve as an additional income generating project for the

university. This will also provide an alternative source of income for the government in the

form of tax, as well as to our fellow men that will be hired as employees that will provide

the comfort that the customers need. Further, this serves as an actual training for the

students especially in the field of Hotel and Restaurant Management.

 This will help to cater the needs of the target market, specifically the travelers,

guests and tourists. Hence, the need for providing a service and amenities with quality and

satisfaction shall be observed.

The growth and advancement of technology shall be used to further compete with

the players, both existing and new entrants. The hotel should be updated with the current

trends and developments with regards to customer servicing and facility improvements.

Moreover, this study will provide recommendations on financial analysis regarding

the funding arrangements and its viability as to building construction and its operation.

Scope and Limitation

The study is conducted to test the feasibility of proposed hotel at Central Mindanao

University, University Town, Musuan, Maramag, Bukdinon, on the first semester of

School Year 2017-2018. It will cover the Universitys entirety, the administration, and

selected individuals or entities whose participation is required. An activity outside the

campus premises may be done when appropriate information is required and needed in the

conduct of the study. The study is limited with the given time frame and the resources

needed in conducting the said study.