Prepare Feasibility Analysis on four Seasons Hotel Boston

Feasibility analysis on four seasons hotel Boston
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Feasibility analysis on four seasons hotel Boston
Pricing Analysis
The four seasons Hotel in Boston aims to be a luxury hotel. As such, its pricing should reflect the target market. In determining the best pricing stratagem, an analysis of other luxury hotels in the Boston area is necessary. The pricing will also need to take note of the different seasons and the number of anticipated clients. The hotel would therefore charge premium prices at $700 per night in high season and offer a discount of 15%- 20% during the low season when there are fewer clients. The hotel will also offer special prices for corporate travelers and convention attendees as an incentive for them to stay at the hotel CITATION PWC16 \l 1033 (PWC, 2016).
Income and Expenses Analysis
The following is a breakdown of the expected annual revenue and expenses.
Expected Revenues Annually
Food revenue

$ 4,868,520

Occupancy Revenue

$8,730,542

Beverage Room revenue

$4,785,787

Room Service revenue

$362,487

Other income Room revenue

$3,547,219

Convention Rooms Revenue

$2,585,258

Operating expenses
Administrative and general Expenses

$ 2,562,874

Occupancy Expenses

$ 1,535,874

Marketing Expenses

$1,041,873

Property operation and maintenance expenses

$567,952

Utilities and Staff Expenses

$3,254,894

Development Cost Analysis
Land Costs

$ 1,124,544

Construction Costs

$ 5,865,897

Furniture, Fittings and Fixtures Costs

$4,489,893

Pre-opening and Working Capital

$2,235,874

Professional Fees
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