Feasibility Study of a Medium – Sized Full Service Hotel In Bauchi Metropolis, Bauchi Nigeria
Though there are many hotels operating within and near Bauchi metropolis, they are not enough to carry the anticipated demand. There exists excess demand not satisfied by the present supply structure. This is occasioned by the fact that demand for hotel services is influenced by such factors as price, service quality, taste, income, ambience, among other others. Therefore, this study is aimed at carrying out a feasibility study with a view to establishing full-service hotel to fill the current gap. The purpose of a feasibility study is to assist in planning a large project by evaluating the chances of the project’s success before it begins. A potentially viable opportunity for commercial hospitality exists in Bauchi and this requires technical, market, infrastructure, operational and management analyses to provide a framework for successful investment. Commercial hospitality, especially the lodging facility plays a significant role in development efforts and poverty alleviation of goals 1 and 8 of the Sustainable Development Goals of the 21st century. A feasibility study of a 54 – bedroom full service hotel in Bauchi metropolis was conducted. Operational data obtained from the existing hotels and demand survey were processed by thematic and ratio analyses. Results show that it is economically and financially feasible to invest in a 54-bedroom full service hotel with start - up capital of N68, 576, 100. 00, capable of yielding average annual profit rate at 41% and a cap rate of 106%. It is recommended that Bauchi State government should provide enabling environment through its empowerment programme to motivate entrepreneurs to invest in commercial hospitality for poverty alleviation in Bauchi.
Keywords: Feasibility, Commercial hospitality, Poverty alleviation, Sustainable development