PROJECT PROPOSAL

ON

EXPANSTION OF FUEL STATION AND

MOTEL

PROJECT TO BE IMPLEMENTED IN OROMIA REGIONAL

STATE, BALE ZONE, GOBA DISTRICt

Promoter: Mr.Lemma Negash Abdo

June, 2022

ADDIS ABABA
 EXECUTIVE SUMMARY
1. Project Name Motel and Fuel Station Project

2. Project Owner Lemma Negash Abdo

3. Nationality Ethiopian

4. Project location Bale Zone, Goba District , Oromoia Regional State

5. Project Composition Hotel service, Restaurant and café, Bed Rooms, Meeting
Hall service, Play Station center, Beauty salon and
supermarket, Fuel station service (Diesel, Gasoline,
Kerosene, LBG gases, Engine oils, Lubricant and Car
wash service)
6. Premises Required 2500m2

7. Total Investment Br. 31,020,560 million of which 30% equivalent

Cost
to9,306,168 million financed by the owners equity and
the react 80% equivalent to 21,714,392 million financed
through bank loan
8. Employment A total of 80 employees ,59 are permanent the rest 21
Opportunity
are temporary and contractual employees
9. Benefits of the Provide better service, Revenue generation, Employment
project For The
Opportunity, benefits local economy and stimulate local
region/ country
economy.
 1. Introduction
In Ethiopia the industrial and service rendering activates account for small proportion of the
gross domestic product. The contribution of tourism towards the socio economic development of
a country plays a great role.

Bar, cafe, fuel Station and restaurant are one of the tourism industries which could create spring
board to other tourism and related industries.

The profit which everybody gets from tourism could include the owner of the firm, the general
public’s and government in its contribution to the economic growth in various ways. In the way
that supports tourism industry bar and restaurants provide sizeable employment in relation to the
capital invested and which is the one amongst the outstanding reasons that could create the
positive attitude of governments especially it is implied to those which were the revenue from
tourist industry and the main source of the national income.

As our country is one of the oldest national countries located in the east horn of Africa, it has
greater potential to be one of the most prominent tourism destinations in Africa with its unique
cultural heritage impressive scenery, suitable climate. And rich flora and found important
archeological sites.

At this time, the economy of the world is growing and many market places are opened. Thus
more peoples at all levels of businesses are traveling with greater capacity than ever before. The
growth of cities in constriction and development services facilitates the ongoing business and the
growth of public group in cooperation with good system of transportation for the greater
development of the nation.

As a benefited group, thanks to the growth opportunities resulting from the social, political and
economic liberation, investment within and other countries is becoming a common phenomenon.
Travel and tourism is the vast net work of business engaged in lording transportation feeding and
entertainment of travelers.
This project is a sole properties ship whose principle business is giving hospitality service and
excitement for guests. As a result it plays a great role for those growing towns for the beauties of
the town, fills the gap to the fast growing potential demand, insuring additional employment
opportunity, generating additional incoming generation to the government, employer and
employee, promote tourism in the area and creates exiting environmental appearance of every
users.

This project planned to expansion of motel that used for fuel station, cafeteria, restaurant, bar,
bed room, pool game and different purpose. The total investment capital of the project will be
about Br. 31,020,560.00 Eth birr is needed, from this 30% (9,306,168.00) will be covered by
the promoter of the project while the rest 70% (21,714,392.00) will be covered by financial
institutions.

The service rendered by the project will never encounter any marketing problems since the
demands for this type of services are high and ever increasing while the supply is far below the
demand. The promoter is very right to choice this sector and operate in this town where it could
reap the maximum benefits.

1.1. Profile of the Promoter

The promoter of the project MR Lemma Negash Abdo is a known business entrepreneur in the
area and also engaging in different business in Goba town and surrounding area. In addition the
owner of this project hope this project to be the first of many other developmental projects to
follow as they look forward to share the responsibility of fighting poverty, reducing
unemployment here in Ethiopia. The promoter accumulated diversified skills in the area and also
adopted working with many people. Thus, it is these experiences which primarily motivated this
investor to develop the inception of this project idea.

The feasibility of the project has been carefully assessed and the promoters are confident that it
will be a total success. The business will be run by a team of competent management
professionals who have acquired practical achievement in related business fields. The marketing
oriented approach to placement of products and distribution will be primarily based on the need
and preference of the customers and end users

The promoter also is visionary and ambitious business, who is committed to make a difference in
traditional business practice by approaching it in an innovative way. The promoter is currently
seeking to establish Motel and Fuel Station project which shores up the development base the
country is looking for; as well as meets the growing demand of the service in most wide ranging
like hotel and tourism sectors.

• Purpose of the Document

The objective of the feasibility study is primarily to facilitate potential entrepreneurships in

project identification for investment. The project feasibility may form the basis of an important
investment decision and in order to serve this objective; the document/study covers various
aspects of project concept development, start-up, production, marketing, and finance and
business management. The document also provides sect oral information, brief on production &
engineering technology which have some bearing on the project itself. This particular feasibility
is regarding production of office furniture and household equipment for commercial basis.

• Project Description
The project is planned to build Motel for various business activities to supply and provide
service such as: - fuel stations, cafeteria, restaurant, bed room, fuel distribution, and pool game
and hall rental. The project will start it’s activates by simple clearing the land, building
constructive purpose, procurement of machinery and equipment, vehicle, and hiring
professionals and semi skilled employees from local market.

• Mission Statement

Based on the present conducive investment policy of the country our Motel seeks to contribute to
the economic development of the nation, encourage and support the nation’s economy.

• Objectives
The main objective of this project is to establish a standard motel in Oromia Region, Bale Zone,
Goba District and the objective of the project is to produce and to meet the increasing demand
for this type of service.

In addition to this the overall objective of the project under consideration is to contribute to the
development process in the country by taking part in the service sector. The proposed project
will have the following major objectives:-

• To diversify services for society;

• To increase quality of service delivery;
• Specific objective

The Specific objective of this project is to generate profit to the promoter over the invested
capital by growing quality products and other objectives are:-

• To create job opportunities specifically for the local people.

• To generate revenue for the government in the form of tax.
• To add satisfy the local need.

• Project Rationale
Internationally the economic growth this country experiencing, the good governance created and
even if the town is at a nascent stage of development this project is the first in its kind in the
district are feasible and would be a model development in promoting and attracting different
investments. In order to respond to the created environment the district is in need of major basic
and feasible urban projects to be developed.

The existing promising investment opportunities, the demands of service needs along with
relatively sound investment support made by the government in such kinds of feasible projects
compelled the project promoters to initiate the this project.

Despite the promising business opportunities of the area the trend on such kinds of investment
found to be minimal and none-existing. The mismatch between the demand for supply and
supply of such kind of services is easily observed in the country.

Therefore the existing shortage or absence in the supply of these services, along with its
commercial and administrative access, better location and infrastructure access, escalating trend
of urbanization and business activities has given the opportunity for the project to be demanded
significantly. Thus it is with such reason that this project is identified and proposes and assumed
to be more profitable.

• Description of Project Area

• Location

The envisaged project location is Oromia Region, Bale Zone, Goba District which is around 500
km far from Addis Ababa on the south of Addis Ababa.

• Climate
The town and the surrounding climate are categorized to ‘dega’ or medium weather and climate
condition. The infrastructure like Electric power line, telephone system (the digital one) mobile
telephone network, educational centers, public center and few privet clinics are available in the
town.

• Infrastructural Development

The level of development in infrastructure is one of the major point in selecting location and site
for establishing any business activities. Development of roads, availability of water, power,
communication facilities and availability of social services are included in this category. The
project area, Goba District and its surrounding have a well developed net work of the mentioned
roads and facilities.

• Labor Availability

As Compared to capital availability, which is accessed with difficulty, human labor is abundantly
available in the town and nearby rural settlements. This shows that our organizations can carry
out labor intensive works rather than capital intensive ones. In this respect, the town is fostering
well-educated and, well-experienced professionals, wage laborers, etc.

• Land requirement and land use plan

The area of land required for the proposed project is estimated to be 5,600m2. The land
requirement of the project has been decided by taking the dimension of building and for other
facilities. The detail information is as follows in the table below:

S.N. Description Area in m2

1 Motel Building 1,600
2 Fuel Station 2,400
3 Store 800
4 Green area and Parking 800
Total 5,600

2. Market prospect and Service Capacity

There are number of factory which creates demand for motel and fuel gas station in the area.
Marketing means the flow of goods and services from the area production to the area of
consumption. Marketing is affected /determined by different factor such as, total number of
population, income level, quality of goods and services, price of these goods & services and the
like.

The project under study is located at Goba District where many people reside, relatively good
income level test and preference to the service is attractive and there is no as such developed
service rendering sector in the District. Therefore, the project understudy will not face market
problem and recommended to be expanded.

2.1. Market Analysis

Ethiopia with its huge potential in the travel and tourism market is now gearing towards a point
where it can make a significant contribution to its economic development. "Ethiopia - 13 months
of sunshine" is the most popular tourism slogan that is being used to promote the sector, which
draws lots of tourists to the country every year, thereby, boosting the hospitality industry of the
country.

The beautiful attractions, warm people and the services have also been contributing in boosting
tourist flow to the country. The country's unique culture and history, diverse and exotic flora and
fauna as well as the magnificent scenery and archaeological sites are also among the major
tourist attractions which draw the attention of local and foreign tourists.

This nation has been seen as an important and real destination for a number of visitors. A rich
array of historical and ecological sites set it apart from most of its neighbors. It has combined
spectacular culture, history, ethnic diversity, nature and traditions dating back to 3000 years
which are major sources of attraction and income.

Both local and overseas tourists flocking every year to visit the tourist attractions of the country
indisputably deserve the standard services they require. This would have not only a momentous
role in attracting additional tourists to the sites every year but also boost the country's foreign
currency earnings gripping tourists to extend their stay.

Although there were only one thousand hotel rooms in the whole nation two decades ago, a
remarkable improvement has been witnessed in the sector particularly over the past 15 years.
Currently, the number of hotel rooms has reached above 7000 in Addis Ababa alone. According
to the Ministry of Culture and Tourism, this number would jump to 10,000.
Oromia is endowed with several natural and cultural tourist attraction resources. The zone
abounds with numerous lakes, mountain trekking, Natural Cave, Hot springs and others. In
addition to tourists and guests from other places, there are many residential and other potential
customers in the area Including government officials, and NGOs. This makes the area most
suitable site to operate hotel café, and restaurant Guest House Businesses. The services
including, house hold items bed/accommodation, wedding ceremony, hot drinks, soft drinks,
juice and food services. Also it is important to note that raw materials for cafe and restaurant
services are readily available in the area.

It is obvious; there are few competitors in the area particularly in hotel service and Guest house
but which are unable to satisfy the increasing demand. So, this remains in the area where
anybody with some capital can start these services. The added advantage is that the land for such
services is available.

The market demand for Motel service starts with People wants to enjoy outdoor amenities with
their children. Adults want to take different physical exercises and their children want to play
with different playing materials. That is why there are many and large amusement and recreation
resort parks in all cities in developed countries.

This market study will analysis the market condition for the envisioned Motel from national
point in general and in Goba District in specific scenario.

2.2. Demand and Supply Gap

Goba District is a major business center and commercial route that attracts thousands of
business travelers. These are also the most important groups of potential customers that include
both the local and foreign tourists and the modern business community who choose services that
range from economic to high class standards. These groups would also choose a healthy
comfortable climate that combines a more traditional type with that of modern bedrooms
restaurants and cafeterias.

Over the last decade, there has been a significant growth in the number of local and national
trades across the region. This increase is mainly associated with the stimulation of economic
activists and partly due to an increase in the flow of regional and local traders in to the town.
Since Robe is an important commercial centre in addition there is a significant increase in
business activates and hence increasing the number of traders to the town. With the stimulation
people that travel of Goba District and stay in the town businesses process.
Even though there is a lack of quantitative estimates that depict the actual demand and also the
annual growth rate Motel facilities and urban commercial facilities are scarce in the town. So far
in the town there is no development of such kind standard Motel and it is the first of its kind in
the town and will promote other investors from the town and the surrounding areas. As a result
there is a large gap between the demand and that of the supply for modern Motel in town and
hence this project would not face any problem of demand scarcity for it business centre and it
would provide good service to customers.

2. MARKET STUDY

2.1. Scope of the Market Study

The project is targeted for Bale zone Goba district cross the vicinity and surrounding area.
Hence, the scope of market study of this project concentrates on the Goba distric and
surrounding rural villages in general and the kebele in specific scenario.

2.2. Market Demand

There are a number of factors which creates demand for Motel and Fuel Station In the area. The
following major factors are identified;
 Economic activities
 Population
 Location Importance
 Infrastructure (road)
 Availability of different institutions
 Energy Demand
These major demand factors for the project are explained as follows

1. Economic Activities
According to responsible municipalities in the eight towns, the estimated population figure is
258,857. This is more than the figure provided by OUPI and CSA, which are 134,846 and
183,138, respectively. However, the figure demonstrated under the 2007 census survey is
228,420. On the other hand, the recent census result shows the total figure of the rural people in
the Special zone is 566, 069. On the contrary, figures provided by District Administration and
OUPI estimation/projection are 640,781 and 800,356 respectively.

2. Location Importance

The planned Hotel service use project will be established in Oromia regional state, Bale zone,
Goba town , where the different construction is flourishing from time to time. Because this cash
crop area has easy access to the fundamental utilities and other facilities required for construction
area such as treated water supply, electric power, access to telephone line and easy access for
transportation and market outlet. Moreover, the regional government has been undertaking
various measures help boost the growth of investment endeavors in the area by allotting land,
and providing efficient municipal services

1. Infrastructure (Road)
In the district there exist asphalt all wheater and dry whether roads that connects different areas
that will create a demand for the hotel and restaurant services.
2. Availability of Different Institutions
In the district, there exist many governmental bureaus. Besides, there exist non government
organizations (NGOs) and private companies. All these institutions are potential market demand
for the project especially for restaurant, cafeteria, bed rooms and Meeting hall when the meeting
and workshop conducted.

3. Energy Demand
The major source of domestic energy supply is agri-wastes, followed by firewood, animals dung,
charcoal and kerosene. Hydro electric light services and more than 10 fuel stations were
available in the district (at Goba towns).

Hence, there will be a good market demand potential for the envisioned project (fuel station) in
consumption of fuels for vehicles, the district is an Intercept of the roads Addis Ababa to Bale
zone
 2.3. Market Supply

In the Goba district \ there exist few service provider organizations. Standard restaurants,
cafeterias, pensions, assembly halls, play station and fuel station centers. Besides, all quality
services in one organization is almost non existence in the woreda kebele’s abroad.

2.4. Target Customers

The target customers of the envisioned project are

 The residents of the kebele and the surrounding area
 Merchants and drivers
 Business Community
 Different occasional guests
 Different institutions( Government, NGOs and Private)
 Domestic and Foreign tourists and visitors

2.5. Market Prospects

From the above analysis of market, it can be deduced that there is a huge gap between demand
and supply for Hotel business in the kebele as well as in the district that will give a lucrative
market for the envisioned project.

2.6. Marketing Promotion and Strategy

To reach customers different marketing ways will be used. Among the different marketing
strategies and tools for promotion controlling the market:

 Printed and non printed forms of advertising,

 Sponsorship of key government activities and public support mechanism.
 Seasonal discount pricing for guest houses and different others customer centric
marketing strategies will be used by the company.

The Hotel under discussion will have diversified marketing strategies that could enable it come
up with the different competitors in the market. Moreover, customer satisfaction will be the key
marketing strategy of the building. Generally the project has a competitive advantage since there
are no many standard Motels in the town.
 1.1. Service program

The organization will initially operate at 70% of its capacity and will reach 100 %( full capacity)
service provision in the second year.

1.2. Sales Plan/Capacity

SN Description Measurement Daily Monthly Annual

Production production Production
1 Motel Service
1.1 Coffee Cup 45 1350 16200
1.2 Tea Cup 55 1650 19800
1.3 Milk Cup 30 900 10800
1.4 Macchiato Cup 40 1200 14400
1.5 Soft Drink Bottle 60 1800 21600
1.6 Alcoholic Drink LS _ _ _
1.7 Juices Cup 30 900 10800
1.8 Cake No. 40 1200 14400
1.9 Beer No. 80 2400 28800
1.1o Food No. 45 1350 16200
2 Fuel Station
2.1 Kerosene Liter 60050
2.1 Benzene Liter 50030
2.3 Diesel Liter 100005
2.4 Lubricant and oil Liter 1500
3 Bed Rental No. 15 450 5400
4 Meeting Hall Hall/seat 80/1 80/10 80/120
5 Barbery Person 18 540 6480
6 Pool game No of game 25 750 9000
7 Supermarket _ _ _ _
8 Car Wash No of cars 5 150 1800
 3. SERVICE MIX AND CIVIL WORK OF THE PROJECT

3.1. Service mix

The Hotel and restaurant service will provide the following service mix’
1. Fuel Station

The project will provide different fuel energy (like kerosene, benzene and Diesel) for end users
by franchise based business from one of the oil company. Besides, the projects will also sale
different oil and lubricants for consumer. Moreover, service like car wash and parking will be
provided by the company.
2. Restaurant, Bar and Café Service

The restaurants will basically serve breakfast, lunch and dinner by providing daily menu, weekly
and other choices of customers. And the café will provide different hot and cold drinks with cake
and other light food items.

3. Bed Rooms Services

Bedrooms will be spacious allowing ample and generous ease of movement, comfort and
relaxation for guests, equip with technology. The Motel will have a total number of 15 bed
rooms. Among the features of the guest rooms the major ones are:
 Rooms with absolutely minimal internal and external noise levels,
 good quality beds with its accessories,
 LCD TV with remote control
 Quality of sanitary wares and fittings,
 Hot and cold water,
4. Meeting Hall

The proposed capacity of multi-purpose Meeting hall is 80 seats. The hall is planned to

accommodate and serve multiple purposes. It can be used for multi-purpose activities by

rearranging of seats and adding appropriate facilities on time and site.

5. Play Station
Different playing games service will be given by the project under play station section. Games

such as pool will refresh the target customers.

6. Super market
The project will have a super market that can provide different goods including foods, cleaning

items, cosmetics, etc for the target customers.

7. Beauty Salons
The project will have a hairdressers section that would specialize in Women’s and men's hair.

Different hair and beauty services will be given for women’s and men’s in these beauty salons.

3.2. Civil Engineer Building and Civil Works

As indicated in part 1 the total land requirement for the project is estimated to be 5600M2.The
buildings are planned to accommodate fuel station, restaurant, café, office, store, bed rooms,
Meeting hall, kitchen, supermarket, beauty salon, car wash center and other utility requirements
as well as green areas and parking.

In general the buildings must be capable of being kept clean and provision should be made for
keeping the sewerages drained out properly and room temperature is attained to keep healthy
environment. In most environments, equipment should be totally enclosed in a light structure:
where the climate is suitable. A concrete floor, which can be swept, is usual.

The site will be encircled by a chain linked fence fastened to concrete posts. The project
construction is designed by professional engineers and construction will be done under close
supervision and colla Goba town of the engineers.

• Tourism
Ethiopia is a land of wonder and enchantment, a country with one of the richest histories on the
African continent, a land of contrasts and surprises, of remote and wild places, home to cultured
and friendly people who are descended from some of the world's oldest civilizations. The
country is endowed with unique combination of natural and cultural heritage, impressive
scenery, suitable climate, rich flora and fauna and recognized archaeological sites. There exists
many kinds of flora and wild life and more than 800 species of birds reside in Ethiopia of which
23 are endemic to the country.
There are more than 100 mammal species, of which seven of the big mammals are unique to
Ethiopia. Ethiopia's many national parks enable the visitor to enjoy the country's scenery and its
wildlife, conserved in natural habitats, and offer opportunities for travel adventure unparalleled
in Africa.

All these could be enough to make Ethiopia fascinating place to visit and travel through, but
Ethiopia has so much to offer. Generally speaking, the improved political, social and economic
climate observed in recent years has created favorable conditions for development of tourism in
the country. This can be evident from the trend that tourist arrived for different purposes has
shown an increment over recent years. Arrival trend by purpose of visit for the years 2000 to
2007 is depicted in the following table.
Table International Tourist Arrivals to Ethiopia (2000 - 2007)

visiting Not
YEAR Business Vacation Transit conference relatives stated Total
2000 27,917 30,768 18,670 6,689 14,589 10,321 135,954
2001 26,577 41,083 17,216 5,361 14,913 11,288 148,438
2002 32,752 10,612 49,339 20,113 17,779 25,732 156,327
2003 36,571 11,705 53,315 31,414 19,895 27,010 179,910
2004 35,014 11,379 56,790 34,129 18,209 28,558 184,079
2005 53,873 42,142 44,576 25,947 24,394 36,114 227,398
2006 49,724 80,184 76,556 40,000 22,180 21,814 290,458
2007 42,864 127,608 53,602 17,776 26,176 35,215 303,241
Source: Ministry of Culture and Tourism

Basically as can be observed from the table above the number of tourist arrival to the country for
vacation purposes increased at average growth rate of about 55%. It is reached at this figure due
to extreme growth rate registered in 2005 i.e. 273% from 2004. However, in the year before 2005
and after that a moderate growth rate is registered. Hence, we have omitted the 2005 growth rate
and used tourist inflow to the country for vacation purpose recorded in the remaining years to
reach at 19%.
As indicated in the above table the trend in number of arrivals has showed 16.31 % average
growth per year. The number of tourists reached 303,241 in 2005 from 135,594 registered in
2001. When we look at the trend of different purpose visits, we can understand that over the
aforementioned period international tourist arrival to the country has shown an average annual
growth rate 8%, 19%2, 31 %,42%,9% and 28% for business, vacation, transit, conference,
visiting relatives and other tourists segments(for which purpose of arrival is not stated)
 respectively. Hence, using the historical data the numbers of tourist arrivals for different
purposes is forecasted as follows.

Table: Projected Number of tourist arrival based on trend equation

visiting
Year Business Vacation Transit conference relatives Not stated Total
2008 14,293 151,854 70,219 25,242 28,532 45,075 367,214
2009 49,997 180,706 91,986 35,844 31,100 57,696 447,328
2010 53,996 215,040 120,502 50,898 33,899 73,851 548,186
2011 58,316 255,897 157,858 72,275 36,950 94,530 675,825
2012 62,981 304,518 206,794 102,630 40,275 120,998 838,196
2013 68,020 362,376 270,900 145,735 43,900 154,877 1,045,808
2014 73,141 431,228 354,879 206,944 47,851 198,243 1,312,605
2015 79,338 513,161 144,891 293,860 52,157 253,751 1,657,159
2016 85,685 610,662 609,008 417,282 56,851 324,801 2,104,288
2017 92,540 726,687 797,800 592,540 61,968 415,745 2,687,280
2018 99,943 864,758 1,045,118 841,406 67,545 532,154 3,450,925
2019 107,939 1,029,062 1,369,104 1,194,797 73,624 681,157 4,455,684
2020 116,574 1,224,583 1,793,527 1,696,612 80,251 871,881 5,783,428

Source: Own Computation

The growth rate is expected to increase even by greater level due to the tendency of tourists visiting the
country because of the development of infrastructural facilities like roads and establishment of tourist
standard real estates in different parts of the country. Political and social stability observed in recent times
are also some of the factors that are believed to increase tourists' inflow to Ethiopia.

• Geographical Significance of the Area

The project area has strategically location since the site is located along road to southern
part of the Oromia region. Besides its suitability of the town which encourages the
surrounding people to visit the town in weekends and holidays that creates a demand for
the envisioned fuel station and Motel.

2.4. Competitors
The envisioned motel will have a competition from few motels and other hotels based in the
nation and town. However, the project will have its own marketing strategy and utilize its
competitive advantages to be successful.
2.5. Target Customers
The target customers for the envisioned project will be new visitors travelling to the area local
or foreigner, local community, middle and upper income bracket, returning visitors to the area,
business needing to hold small overnight planning, strategy sessions, wedding parties/couples.

2.6. Marketing Promotion and strategy

To reach customers different marketing ways will be used. Among the different marketing
strategies and tools for promotion controlling the market:
• Printed and non printed forms of advertising, Electronic etc

• Sponsorship of key government activities and public support mechanism.

• Seasonal discount pricing for bed rooms and different others customer centric marketing

strategies will be used by the company.

The Hotel and recreational resort under discussion will have diversified marketing strategies that
could enable it come up with the different competitors in the market. Moreover, best quality and
customer satisfaction will be the key marketing strategy of the building.
1. Exterior part
A. Building exterior
This motel will be built inside the city not more than an hour drive from main gate to make clear
billboards will be in two areas in city side and around with lighting system. Rather the motel will
have beauty Local buildings or good preservation of historical structures (seems to cultural
village- architectural design). High lighting and Visible, indicative, clear and attractive signage
directing guests around the entire property unique and attention grabbing architectural features.
B. Ground and gardens

Gardens with full infrastructure and suitable ground for all types of guests such as disable
persons, children's and aged people have to be constructed. So Pleasant and tidy garden and
ground appearance throughout the year. No clutter or disorder and no rubbish and evidence of
litter around the service areas. External lighting and good walk way etc. Even, smooth pathways.
No gravel or rough brick pathways. Very attractive design features and high quality garden
furniture
C. Access signage! Points of entry! Safety and security

The area is environmentally sensitive and needs attention as well as safe condition is also
important. so well signage have to be developed for different area. All external public pathways
must be well lit. Person responsible for safety and security must be contactable for emergency
situations. Emergency information, procedures and after hours contacts for assistance clearly
communicated in English, and incorporating pictograms, where possible. Security measures, (for
example. Alarm systems, burglar bars, where applicable on all doors and windows).outside the
room to overcome danger.
2. BEDROOMS (Interior)
A. Decorations: - More decorations are culture based. Well harmonized wall covering (paint or
wallpaper) in form color and material. Attention to detail, thoughtful coordination of patterns,
colors and textures. If the decor is "plain" then addition of high quality pictures or objects
d'art, etc. although some "Minimalist" styles require less. All work should be well executed.
B. Furniture:- Well-constructed and professional finishes and detail on all furniture that reflect
culture and promote ingenious knowledge. Comfortable seating with good view. All furniture
should be of a good intrinsic value. Minimum of dressing table with mirror and chair, cultural
coffee table, luggage rack, arm chair

C. Electronic facilities: - Flat screen, High Definition, multi-channel television, TV easily

visible provided in most rooms.
• Internet access !Wi Fi, Electric sockets with voltage indicated

• Hair Dryer in working order and provided in all bedrooms

• Electronic sockets with voltage enacted

A. Wardrobe I Hanging space I Cloth hanger

• Wardrobe /purpose built hanging space provided in all bedrooms

A. Curtain and window covering: - Highest quality full well-lined curtains in working order.
Or blinds or shutters of the highest quality and in working order. Outstanding quality curtain
accessories. Well lined curtains to provide blackout cultural arts design and quality of
materials.
B. Flooring, Ceiling, Skirting and Cornices:-This part is not such luxurious materials it
focuses on environmentally familiar more of local material but not compromise quality that
frustrate consumers interest. So Excellent quality flooring and ceilings using excellent
 materials - natural or manmade. Skirting and cornices of excellent quality. Minimum Ceiling
height 2.86m
C. Bedding and Linen: - Luxurious and exclusive quality linen that is coordinate with bedroom
decor and other soft furnishings. Outstanding supply and variety of pillows and cushions.
Spare blankets provided. 1 0.90x1.90 for single bed and 1.80x2.00

A. Form of Bedding:- This hotel plan to have 95 single room, 5 double and 5 suit (family
room) with their area 15-30m2 and 10 specific sites for tent service. Because of less carrying
capacity of the area and sensitivity of the environment. So bed forms are cultural but have
safety with standard size i.e single bed is 1.90 x 1.90 and double bed 1.80 x2.00 and suit are
more than standard one.

A. Environmental Control:- Thermostatically and individually controlled heating and or

cooling system capable of maintaining a comfortable temperature of room. Electronic
heating and cooling system in outstanding working condition, has a silent operation and is
remote controlled. Ambient noise less than 40db.

A. Lighting power I Switches: - we will have plan to use solar energy for basic
consumption of electric power for this loge because of promoting alternative energy sources and
sensitive ecology of islands. So our lighting power is also power efficient. Any our system is
Controllable dimmer lighting of highest quality. Bedroom lights can be switched off at the
bedside. Recessed spot lamps. All lights and shades of outstanding quality manufacture and in
excellent order. Power points are conveniently located and adhere to international requirements.

A. Mirrors and Accessories:-our accessories are more of eco friendly without compromising
quality .so mirrors with high quality (450mm x 350mm or larger) Conveniently located, a
wide range of high quality extras for guest use such as Fruit bowl Flowers DVDs, books,
magazines Suit stand Newspaper Suit press Mending kit or pad Mineral water Sweets, mints
or chocolates Tea tray, variety of teas and coffees, Biscuits UHT milk/Fresh milk Emergency
lighting Umbrella Slippers Torch DND sign Room make up sign and walk up call. Baby beds
by order will be available.
B. Accessories:- A wide range of high quality extras for guest use such as Fruit bowl Flowers
DVDs, books, magazines Suit stand Newspaper Suit press Mending kit Shoe polishing cloth
or pad Mineral water Sweets, mints or chocolates Tea tray, variety of teas and coffees,
Biscuits UHT milk/ Fresh milk Emergency lighting Umbrella Slippers Torch DND sign
Room make up sign and walk up call
C. Spaciousness and Overall Impression:- Room size of minimum 15m2 (30m2).
D. Large lounge area, 25m2. A well-planned room, 20m2. Good access to all furniture and
facilities. 15m2 Room large enough to contain all necessary furniture
3. BATHROOM

Type of bathroom:- Two person en suite bathroom (double vanity) provided .Separate bath and
shower, toilet separately enclosed. Hot water on demand. Separate bath and shower, basin and
toilet. Bath or shower, basin, toilet. Hot water from 7.00 -10.00 and 18.00 - 23.00 Spacious
layout more than 4m2 or more than 2m2
Bath Rooms: - bath rooms are other important accommodation facilities that have to be
available in standard. it will be a bath room of Two person en suite bathroom (double vanity)
provided .Separate bath and shower, toilet separately enclosed. Hot water on demand and basic
infrastructure such as adequate light well finished wall and floor as well as cornice.
Flooring, ceiling and walls:- Exceptionally attractive floor and wall coverings In perfect
condition. Spectacular design and grouting, free from marks and damage. Excellently and
professionally fitted floor and wall coverings
Fixtures and fittings:- Extra large spacious shower, fixtures and fittings in perfect state, solid
coordinated fittings of innovative design. Extra large/deep bath and washbasin. Attention to
fixtures aesthetics. Large shower solid well-made fittings in excellent order and matching style perfect
finish, sturdy bath, attractive shower screen, high-sized washbasin, easy to use with responsive control.

Hand Basin and Toilet Areas:- Hand basin/bench /shelf space Hand basin sufficient size minimum
300mm x 200mm. Bench/shelf space provided adjacent to hand basin
Toweling:- Full range of towel sizes-bath sheets, hand towel, facecloth for each guest.
Provision of toweling robes and slippers. Thick, heavy, fluffy quality with plenty of pile.
Replaced daily or after each use (unless guest requests otherwise with particular reference to
environmental issues). Two bath mats provided for bath and shower area. Wide range of towels
including bath sheet, hand towel and face cloth per guest as well as a bath mat of excellent
quality. Towels are changed daily or at guest's request.
Lighting:- Exquisitely designed and appointed lighting providing first- class illumination and
coverage across all areas. Either windows that open or effectively working extractors. Lighting
effective for all purposes- shaving, make-up, and contact lenses particularly at washbasin and
shaving point
Accessories:- Luxury double ply toilet paper. A wide range of excellent quality accessories
provided in the bathroom e.g. Wrapped soap Shower gel Shampoo Conditioner Shower cap
Body lotion Tissues Cotton buds Toothbrush shower curtain or shower box and bath math
•Public Areas (Guest Circulation Areas, Corridors, Lounge Areas, Stairwells, Lifts Etc)

Decoration:- Quality of wall coverings in faultless condition, perfect caliber design and
architectural features. Interesting architectural features, artwork, objects d’art High quality wall
coverings. Evidence of coordinated design with traditional attractive design. Seamless
professional finish

Furnishings and fittings:- Luxurious quality of highest intrinsic quality. Extra design elements
and features throughout. Optical general impression the optical general impression is constantly
harmonized in color and form
Flooring, ceiling and skirting:- Floors and ceiling In perfect condition and using materials of
highest quality- natural or manmade. Skirting and cornices of highest quality with additional
architectural features.
Lighting:- Exquisitely designed and appointed lighting providing sufficient illumination and

coverage across all areas.

Atmosphere and Ambience:- Superb relaxing and calming atmosphere, with beautifully
designed decor and luxurious furniture with additional design features and objects. Excellent
soundproofing throughout the property. AlC. Minimum corridor width and ceiling height is 1.5m
and 2.86m respectively.
Harmonious combination of decor, lighting and comfortable furniture. Soothing coordinated
effect. No jarring elements. Interesting architectural features. Spacious rooms. AlC. Minimum
corridor width and ceiling height is 1.118m and 2.86m
Guest Services:- Smoking and non smoking places clearly identified. Range of beauty salon,

souvenir shops, flower, pastry and bakery shops

Escalators I Lifts (Applies to all premises of 3 floors or more):- One guest lift of 6 adult
capacities for up to 30 bedrooms. Additional lift for each 70 additional bedrooms. Brail floor
numbers, speaker, bell, emergency call. Separate service lift. One guest lift of 4 adult
capacity/one wheelchair plus 2 adults for up to 30 bedrooms. Additional lift for each 100
additional bedrooms. Brail floor numbers, speaker, bell, emergency call. Separate service lift.
Additional Services:- Availability of taxi or taxi on call. Free Airport Shuttle
•BAR AND DINING FACILITIES (Breakfast, lunch and dinner service is required for
hotel classification)

Decoration:- Eye catching and high value materials of wall coverings, high caliber design and
architectural features, interesting architectural features, art work objects d'art. high value
materials of wall coverings, Evidence of co-ordinate design. Different and advanced professional
finish.
Furnishings:- Extremely comfortable dining chairs and spacious tables. High value upholstery
and workmanship in the furniture and superbly co-ordinate. Free and easy access between
furnishings. Child /booster seats available.
• GENERAL SERVICES & SEREVICE
Welcome, Friendliness and attitude:- Staff in all positions displaying friendly and helpful
demeanor and willingness to assist in any situation. Extra attention paid at check in, during
meals and at check out as to whether anything else can be done to make the stay more enjoyable.
Proactive provision of tourist information, luggage assistance car wash etc. shown on an
ongoing basis.
Appearance of Staff:- Immaculate presentation. High quality and professional uniforms.
Pristine grooming including very neat hair and polished shoes.
Reservation and check-in:- Efficient and helpful telephone reservation Ability to make a
prompt and effective reservation, for a minimum of 18 hours to 24 hours a day. All details taken
down and checked. Every booking confirmed by letter, fax, e-mail or text message. Prompt
thorough check-in. all essential information given to guests. Layout of property, available
facilities, meal times, etc. Any messages forwarded promptly. Efficient communication with
other departments, porters, booking of restaurant tables, etc. Evidence of an online guest history
program
Porter age:- Dedicated porterage staff dressed In identifiable porter uniform. Professional
presence and always on hand to attend to guest needs. Porters take control of luggage from
guest's arrival to prompt delivery in bedroom. Same quality of service repeated on departure.
Full knowledge of accommodation, tourist attractions and visitor services throughout the
city/area.
Room Service:- Prompt and efficient arrangement. Telephone answered promptly. Order
delivered with minimal delay with in maximum of 30 minutes. Attentive manner. Orders correct
no items wrong or missing. Selection of condiments and high level presentation Quality cutlery
in made and napkin provided. Dirty dishes removed at earliest convenience. 24 hours room
service available.
Laundry services:- Full laundry/dry cleaning service (6 days a week) and limited laundry / dry
cleaning service (minimum 3 days)
Meal Service:- Exceptionally friendly, polite and professional staff. High level of knowledge
about food and wine and recommendations provided to guests on best match of food and wine.
Timing of courses is impeccable. Napkin replaced folded up every time guest leaves the table.
Drinks topped up at regular intervals without being intrusive.
Check-out Efficiency:- Bill pre-prepared and every item explained by receptionist. Staff
efficient with all methods of payment. Guests asked if they enjoyed their stay and if there was
anything that didn't meet their expectations. Guests also asked if they would like to be kept up to
date with any future specials or special events. Positive last impression
Tourist Information:- Information pack in bedrooms, reception or lounge. Information covers
immediate and surrounding area as well as specific accommodation information. Books,
pamphlets on matters of local interest, leisure facilities, etc. Staff well versed on relevant tourist
information and willing to inform tourists on the local area. Outstanding attention to
personalized itineraries and interest in guest's information requirements is shown. Tour booking
service available. Information TV or touch screens in reception area. A concierge service is also
available.

Communication and Business Facilities: - Automatic direct dial/operator assisted phones 24/7
Operator assisted
Other Guest services:-There are other services that will be delivered such as mini library,
museum, shops, kids area, onsite tour guide service and other soft services.
Bar and Dining facilities:-Bars and Dining rooms can accommodate 100% bed room guests
rather for different events (meeting, wedding And etc) it will serve 100 persons at a time. The
restaurants as well as Bar is more of cultural and beautiful Architectural design with full
infrastructure, Well-spaced and comfortable chairs of appropriate height for tables. Coordinate
themed design free and easy access between furnishings. Child /booster
seats available, Varity of styles and acceptable quality. one specific for Ethiopian (Oromia)
cultural restaurant will be built to promote the Oromo cultural foods.
Staff conditions:-Staff ethics and quality determine the performance of accommodation in every
level, all staffs will be ethical, skilled and competent, Clean neat and appropriately uniform dress
for the staff with proper identification are will performed.

• HOUSEKEEPING & MAINTENANCE

Material and Equipment storage:- Adequate safe storage of cleaning materials and equipment
invisible to guests
Guest Bathrooms:- Fastidious attention to hygiene. All surfaces gleaming. Clean, fresh smell
Public Areas:- All carpets well vacuumed and cleaned. Table surfaces well polished. Ashtrays
clean. No fingerprints left on doorplates or light switches, etc. Flowers fresh and well arranged.
Newspapers, books, etc. up to date and tidy.
Public Toilets:- Fastidious attention to hygiene. All surfaces gleaming. Clean and fresh smell.
High level of efficiency.
Housekeeping facilities:-house keeping furniture, skilled and competent workers are important
for effective housekeeping activity .So Adequate, safe storage of cleaning materials and
equipment invisible to guests will be available.
• Cleaning and maintenance schedule, adequate safe storage of clearing materials and
equipment.
• Very high standard of thorough cleanliness and attention to detail in bedrooms.
• Well- made beds turn down service room tidied, any trays taken away. Light on and curtains
drawn in the evening.
• Fastidious attention to hygiene all surface gleaning. Clean, fresh small.
• All areas carpets in public area well vacuumed and cleaned table surfaces well polished
ashtrays clean. Flowers fresh and well arranged, news papers, books etc, up to date and tidy.
• Fastidious attention to hygiene. All surfaces gleaming clean and fresh small high level of
efficiency in public toilets.
• All areas immaculately clean, table always get to pristine standard In bar and restaurant
areas.
• Maintenance technician work 24/7 full range of replacement consumables and spare parts in
stock.
• General services staff in all positions displaying friendly and helpful demeanors and
willingness to assist in any situation. Extra attention paid at check in, during meals and at
check out as to whether anything else can be done to make the stay more enjoyable.
Provision of tourist information, luggage assistance, carwash etc.
• Immaculate presentation high quality and professional un including very neat hair and
polished shoes
• Efficient and helpful telephone reservation ability to make a prompt and effective
reservation for 24 hours a day. All details taken down and checked. Every booking
confirmed by letter, fax, e-mail or text massage. All essential information given to guests.
 Effective communication with other departments, porters, booking of restaurant table etc.
Evidence of an on- line guest's history program.
• Dedicated porter ages staff dressed in identification porter uniform. Professional presence
and always on hand to attend to guest needs. Full knowledge if accommodation, tourist
attraction and visitor services throughout the city/area.
• Room service of prompt and efficient arrangement telephone answered prompt order
delivered with minimal delay with in maximum of 30 minutes. Attentive manner orders
correct no item wrong or missing selection of condiments and high level of presentation
Quality cutlery and napkin provide 24 hours room services available.

• Full laundry/dry cleaning service 24/7 days and express service available.
• Meal service:- Exceptionally friendly, polity and professional staff. High level of
knowledge about food and wine and recommendations provided to guests on best match of
food and wine. Timing of courses is impeccable napkin replaced folder up every time guests
leaves the table.
• Bill pre-prepared and every item explained by receptions at the time of check-out.

Staff efficient with all methods of payment. Guest asked if they would like to be kept up to
date with any future specials or special events positive cast impression.
• SUSTAINABLILITY
Environmental sustainability:-Environmental and local Ingenious culture and life style
sustainability is the main goal of our company because of to sustain both company and local
community benefits without compromising the future generation opportunity to live. So we will
have well organized waste management system be used such as water efficient dish washers,
alternative energy sources will be installed, Water-saving fittings in place. (Shower heads and
taps which are fitted with aerators or specific water-saving fittings)."No towel change" option for
guests. Guests need to be informed on how to opt for this service i.e. to hang towels up if no
change is required or leave on the floor if a change is required."No linen change" option for
guests. Guests need to be informed on how to opt for this service. Re-use of grey water for
garden watering. Grey water from laundry, showers and hand basins can be treated and re-used
Garden watering to be done either early morning or late afternoon to minimize evaporation.
Dish washing and laundry detergent is biodegradable. Green waste is composted
All paper products (forms, menu's, table clothes/ serviettes, letterheads, photo-copy paper) are
made from recycled paper. Property has a recycling programmed e.g. plastic, paper, glass, cans,
printer cartridges etc. TV's, Stereo, DVD Players and other electrical appliances. Energy saving
bulbs and electric equipments will be used.

• Kitchen Design/layout
Kitchen is more of with local material with good design and Architects that is it located near
restaurant with full of well designed, with gas and electric stoves, different refrigerators and
walk in fridge/cold rooms/ sink, utensils and serving silver, bowls.
Distinct food preparations stations and Departmentalized. Clear separation of storage and food
preparation for meats, Vegetables, raw food etc
Other services:-other than hard part soft part of service like friend ship welcome and smile face
is important for customer impression specially as the beginning so we will have skilled & well
trained man power with Clean neat and appropriately uniform dress for the staff with proper
identification .and well coming
Reservation and check in & out;-the company will have plan to have reservation office in
Addis Ababa in the future rather than in sites direct reservation. Efficient and helpful telephone
reservation Ability to make a prompt and effective reservation, for a minimum of 18 hours to 24
hours a day. All details taken down and checked all payments will be checked during check out.

Every booking confirmed by letter, fax, e-mail or text message. Prompt thorough check in. all
essential information given to guests. Layout of property, available
facilities, meal times, etc. Any messages forwarded promptly. Efficient communication with
other departments, porters, booking of restaurant tables, etc. Evidence of an online guest history
program
Smart, helpful manner of staff readily available. Porters offer to assist guests with bags when
they see guests who are carrying there. Own bags. Full knowledge of accommodation facilities
and local area
Housekeeping service:-House keeping is other section that helps all other sections to be clean
and attractive. Adequate safe storage of cleaning materials and equipment invisible to guests.
Very high standard of thorough cleanliness and attention detail. Well-made beds. Turn-down
service. Room tidied, any trays taken away. Lights on and curtains drawn in the evening.
Public Area:-. Public areas are places all customers use for extra relaxation in common, such as
gardens, swimming pools area, Corroders (Minimum corridor width and ceiling height is 1.5m
and 2.86m respectively), Lounge Areas, Stairwells, Separate Smoking Room and Lifts (Applies
to all Premises of floors or more) carpets well vacuumed,
High quality flooring and ceilings, high quality lighting system, decoration and furnishings,
comfortable furniture, relax feel and cleaned. Table surfaces well polished. Ashtrays clean. No
fingerprints left on mm, doorplates or light switches, etc. Flowers fresh and well arranged.
Newspapers, books, etc. up to date and tidy.
Additional facilities;- additional facilities that our hotel will have, 2 meeting halls accommodate
20- 50 participants, Communication equipment eg digital projector, screen, flipcharts translation
equipments Soundproofing of conference and meeting rooms VIP Bedroom Suite and transport
service on demand.
Ability to use public areas for informal meetings Gallery and entertainment facilities.
Sustainability;- tourism development have to be sustainable because long lasting benefits for
both community and company. So Alternative energy sources will be used, wastes are managed
in modern way, some grey waters from shower, laundry and swimming pools for greening.
• Safety and Security
Entry Security:- Computerized luggage scanner machine. Walk through scanner 24 hour
professional security guards. Monitored security cameras in public areas
Fire Safety:- Fire extinguishers in working order in all public, sales and kitchen areas. Hose reel
on every floor. Fire alarm in all public and work areas and on every floor, smoke detector and
sprinkler system in guest bedrooms and every floor. Doors, carpets and soft furnishings fire
retardant in guest bed rooms and public areas. Hotel staff trained in fire drill exercises, first aid
service and accident prevention. Emergency evacuation instructions in all rooms in English and
Amharic
Medical First Aid: - Doctor/clinic on call, First Aid boxes available on demand and Dedicated
treatment/recovery room
Qualifications:- General manager possesses a minimum of ten years experience of hotel
industry and at least five in middle management position with a hotel management degree level
education. 95% of full time staff of more than one year's service have undergone
formal training course externally or professionally delivered in-house and passed COC exam
Training Conditions:- Documented human resource management policy specifying employee
reward, transfer in house and external training program and availability of training department
and others.

• Organization and Management

Regarding its organizational set-up, it will have a manager at the top that is responsible for the
overall management of the project and subsequently, there is an engineer for the project’s design
affairs. Moreover the project will have cashier, a storekeeper, waiter, barman, cooks, chef, driver
and etc, which are all responsible for the work they are assigned for.
 3. FINANCIAL REQUIREMENT

The Financial analysis include insight to the total capital outlay required for the project which

would consist of total fixed investment cost, and pre- production costs; the source of finance for

the total planned initial investment cost requirement and other parameter of feasibility analysis

including projection of profit/loss statement, cash flow statement and payback analysis. Hence,

the total initial investment cost for implementing this project is estimated at ETB 31,020,560.00

Eth birr is needed, from this 30% (9,306,168.00) will be covered by the promoter of the project

while the rest 70% (21,714,392.00) Eth birr will be covered by financial institutions.

Table Summary of Total initial Investment cost

S.N. Description Cost Remarks

1 Fixed Investment

1.1 Building &civil works 9,974,400.00

1.2 Machines Furniture & Equipments 7,483,600.00

1.3 Vehicles 1,700,000.00

1.4 Transformer and Generator 1,000,000.00

Total Fixed Investment Cost 20,158,000.00

2 Operating Expense
 2.1 Raw and Auxiliary Materials Purchase 5,400,000.00

2.2 Salary Expense 1,182,400.00

2.3 Other Operating Expense 1,469,200.00

Total Operating Expense 8,051,600.00

Total Cost 28,109,600.00

Contingency (10%) 2,810,960.00

Total Initial Investment Cost (Birr.) 31,020,560.00

3.1 Fixed Investment

The fixed investment cost of the project consists of land acquisition and development,

construction costs of building and civil works, costs for purchase of plant machinery and

equipment, cost of purchase of vehicles, purchase of other fixed asset and other pre production

capital expenditure. Accordingly the fixed investment cost constitutes the resource required for

land acquisition, site preparation and development, design and engineering cost, building

construction cost, civil works (service facilities), purchase of hotel machinery and equipment,

purchase of transportation vehicles, purchase of office furniture and equipment and capital costs

required for other fixed assets.

Table below shows building and machinery

No Description Cost in birr.

1 Building &civil works 9,300,000.00

2 Machines Furniture & Equipments 4,383,600.00

3 Vehicles 1,700,000.00

4 Transformer and Generator 1,000,000.00

Total Fixed Investment Cost 14,483,600.00

Equipments
 Measure
Description Qty Unit Price in Sr.
ment
Hotel Service Machineries & equipments
Bar tables No 50 5,000.00
Bar Chairs No 50 2,000.00
Dining Tables No 50 4,400.00
Dining Chairs No 50 2230
Coffee Tables with chairs Set 80 6,500.00
Chairs No 70 3,500.00
Comfort No 15 10,000.00
reception 0
Sofa Fixture for family room Set 10 25,000.00
LCD 32"TV for Bed rooms Unit 20 17,200.00
LED 60" TV for Restaurant, Unit 25 50,000.00
cafe and Bar 0
Kitchen Equipments LS 0
Coffee machine Set 3 50,000.00
Water tanker Set 5 35,000.00
Refrigerator No 10 20,500.00
Balcony & alcohol display Set 4 75,000.00
Satellite Dish No 20 10,000.00
Satellite No 20 2,500.00
20
Equipment/Decoder 2, 000 0
352,702

3.2 Salary Expense

S.N. Description No. Qualification Monthly Annual Salary

Salary

1 General Manager 1 BA degree 5000 60000

2 Accounting Head 1 BA degree 4000 48000

3 Marketing Head 1 BA degree 4000 48000

4 General service Head 1 BA degree 4000 48000

5 Accountant 1 Diploma 3000 36000

6 Casher 2 Diploma 3000 72000

7 Marketing Officer 1 Diploma 3000 36000

8 Waiters 7 12th complete 1500 126000

 9 Purchaser 1 12th complete 1500 18000

10 Store keeper 1 10th grade 1500 18000

11 Guards 3 8th grade 1500 54000

12 Drivers 2 8th grade 1500 36000

13 Parking Workers 2 4th grade 1500 36000

14 Temporary workers 56 1200 72000

Total 80 708,000

3.3 Other Operating Expenses

Annual

Consumption
S.N. Description Monthly Remark

consumption (in birr)

1 Electricity 2,000 00 24,000 00

2 Telephone 2,000 00 24,000 00

3 Water 1,000 00 12,000 00

4 Fuel 21,600 00 259,200 00 36 litter per day

5 Detergents 2,000 00 24,000 00

6 Stationeries 500 00 6,000 00

7 Repair and maintenance 5,000 00 60,000 00

 9 Miscellaneous expenses 5,000 00 60,000 00

Total 469,200 00

3.4 Pre service expenses

S.N Description Cost in br.

1 Project proposal 10,000

2 Environmental impact Assessment 20,000

Total 30,000

3.5 Sources of Fund and Loan Repayment Schedules

Therefore for implementing this motel project is total of 31,020,560.00 Eth birr is needed, from

this 30% (9,306,168.00) will be covered by the promoter of the project while the rest 70%

(21,714,392.00) Eth birr will be covered by financial institutions.

Table of Source of fund

S.N. Source of Fund Share in % Amount in Birr

1 Own Capital 30 9,306,168.00

2 Bank loan 70 21,714,392.00

 Total 100% 31,020,560.00

3.6 Loan repayment Schedule

Total Annual
Year Principal Payment Interest (10%) Remaining Balance
Payment
0 21,714,392.00
2,171,439.20
1 2,171,439.20 4,342,878.40 19,542,952.80
2,171,439.20
2 1,954,295.28 4,125,734.48 17,371,513.60
2,171,439.20
3 1,737,151.36 3,908,590.56 15,200,074.40
2,171,439.20
4 1,520,007.44 3,691,446.64 13,028,635.20
2,171,439.20
5 1,302,863.52 3,474,302.72 10,857,196.00
2,171,439.20
6 1,085,719.60 3,257,158.80 8,685,756.80
2,171,439.20
7 868,575.68 3,040,014.88 6,514,317.60
2,171,439.20
8 651,431.76 2,822,870.96 4,342,878.40
2,171,439.20
9 434,287.84 2,605,727.04 2,171,439.20
2,171,439.20
10 217,143.92 2,388,583.12 -

As clearly indicated in loan repayment schedule the owner has a plan to amortize his debt
on equal payment basis.

4. Environmental Impact of The project

Currently the issue of environment and envelopment get due emphasis and thus every citizen called to

exert their maximum effort for fighting against any negative impacts on the environment so as to result in

a win-win solution on common agenda that is creating environmentally friendly business environment .

Therefore, Lemma Negash Abdo motel market doesn’t cause a negative impact on the environment.