Feasibility study for full-service independent hotel : A case study in hotel X Bandung, Indonesia

Abstract

The purpose of this study is to show the implementation of a feasibility study for the hotel project by using Political, Economic, Social and Technology (PEST) analysis, Porter’s five forces and Resource-Based View (RBV). A case study was conducted in a full-service independent four-star hotel project in Bandung, Indonesia. Direct observation from the researchers in the hotel project and secondary data analysis from related documents are used in the feasibility study report to support the investigation. Finally, the capital budget calculation is being used to recommend the feasibility of the hotel project. As a result, it is apparent that the hotel X investment is feasible to proceed. Some recommendations are given for hotel owners related to the business environment analysis and in creating a feasibility study specially designed for the hotel business. Managerial implication of this study can be useful for companies in making the right decisions in the development or expansion, and to minimise the long-term losses. Limitation of this research is in only analysing one hotel in a four-star classification; further analysis can be applied in a different location, classification, and different types of hotel service.