Feasibility Plan for the Construction of a new hotel in the area of Magaluf

Abstract

[eng] VIVA Hotels is a Mallorcan hotel company well stablished in the hospitality industry of the Island. With more than 40 years of existence, the company owns and operates seven hotels, most of them located in the northern part of the Island. For many years the company has had the project of a new hotel opening in the area of Calviá, Magaluf. This project was long before announced by former founder and owner; Pedro Pasqual, but the hotel has not been built yet. Calviá is one mature area of the island, which concentrates the biggets part of the touristic offer. The porpuse of this project, is to conduct a feasibility analysis, to determine whether it would be interesting for the company to build a new hotel in such a competitive area, or perhaps based on the results obtained in this study, the company might be persuaded not to build a new hotel in this highly competitive area, and perhaps use its resources in investments in its already existing hotels. To start with this analysis, we will first conduct a detailed analysis of the situation. The ideal location for this new hotel will be stablished and also a competitor’s analysis will be carried out. It will be also necessary to make a market study which will help us identify the main characteristics of the hospitality industry and the tourist profile. Finally, a DAFO analysis will help us identify which is our company’s competitive context. With all the information that has been obtained, the next step will be to describe the features of the business and also the services that are to be offered. In the last part of this work, the project’s feasibility study will be conducted. The amount to be invested will be stablished, as well as its financing. Some monetary forecasts such as the expected cash flows will help us learn about the business profitability and to finish with, the scenarios analysis will help us to better calculate the possible risks and how to avoid them.