ECNOTEL - An Eco Friendly & Economical Resort

Opportunity Snapshot

  • Country: India India
  • Industry: Tourism, Recreation
  • Stage: Initial growth (first revenues)
  • Investment size: $1,000,000 / min. $500,000

Investment Opportunity

To build a Eco-Friendly and Economical 3 Star Resort with very high level of hygiene in Coorg . Target market is holidaymakers who are currently using home-stays for want of cost effective accommodation. Resort to provide various recreational and health rejuvenation facilities. Funding is required for construction and Plant & Machinery.

OXYGEN RESORTS PRIVATE LIMITED (OXYGEN) owns approximately 10 acres of land at Coorg. The land parcel is at an attractive spot with convenient access, facing the main road. The 10 acres of OXYGEN land bearing survey # 143/3 & 143/4 is situated at Galibedu, Madikeri, Coorg.

As per the order passed by DC Kodagu dated 21/05/2010 the land bearing survey # 143/3 & 143/4 has been converted from agriculture to commercial use.

Market survey in the Coorg area shows the availability of low end accommodation (called home stays at INR 1500 per night) or high end Resorts (INR 10,000 per night upward). Their is a huge requirement in the mid-segment (INR 3000 - 5000 per night). This is the space that Oxygen Resorts want to capture.

Oxygen Resorts Private Limited is setting up a 32-room resort. It will be a full service 3 star resort with accommodation, restaurant, bar, and room service. Oxygen Resorts is being setup to meet all specified standards for its category. It will have ample parking area, good reception and lounge and large rooms with attached bathrooms provided for. A restaurant cum Coffee Shop will be part of the project. Room service will be provided. Transport, pick up and drop transfers are also proposed. All furniture and linen would be of high standard. Guests will have access to quality communication facilities like phones, extension lines, and Internet facility. Crockery, Cutlery will be of good standard. Customer services like safe keeping of luggage, message facility, and doctor on call will be arranged. High-end Laundromat, telecom equipment would be installed for convenience. For Power back-up Generator would also be maintained. Kitchen hygiene will be handled professionally.

Land Acquisition and conversion for commercial use has been completed. All necessary approvals such as license for construction and drawing approvals have been obtained. Also Architecture design has been completed.

Funding is required for building construction and plant & machinery.

Business plan shows a high ROI of 30% plus.

Competitive Advantage

1. Land Acquisition and conversion completed
2. No Resort/Hotel in the Mid Segment (Rs 3000 - 5000 range) in Madikeri area
3. 1st mover advantage in this segment
4. Continuous improvement (at relatively same cost) to keep competition costs high

Rationale for the deal

1. High Occupancy during holidays
2. Overall annual high occupancy because of week end rush
3. Increase in activity from high end chains like Taj

Use of financing

1. For construction of buildings
2. For Plant & Machinery (STP Plant, DG Set, Kitchen Equipemt etc)
3. 326 L = 28L,37L,33L,60L,60L,50L,58L (Month Wise in Lakhs)

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