Financial-economic feasibility plan from a hotel

Abstract

The following study concerns a financial and economic analysis about the viability of the construction of a hotel. The financial valuation and planning models help the investor to make decisions and to determine the expected gain or loss of the investment. On the one hand, it is determined the profitability of the project with the NPV and IRR, followed by a scenario analysis with the objective to observe how the profitability is affected against changes on the principal variables of the investment. On the other hand, the financial planning is developed in order to have a better economic resources management forguarantying that the company does not have liquidity problems and to analyse the optimum funding source, which could maximize the profits of the investment.