Hotel Cost Analysis and Planning

This assignment delves into the economic aspects of constructing a hotel. It emphasizes the importance of analyzing costs, budgets, and planning for effective decision-making. The document introduces tools and techniques for cost estimation and setting up new entities, highlighting their influence on organizational success. A systematic procedure is outlined for projecting and completing construction projects. Specific cost estimations and plans are presented, focusing on incorporating a walkway between reception and bedroom blocks.

Building Economic
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Process to be followed on building up new entity.......................................................................3
Factors affect accuracy of economic estimation..........................................................................5
TASK 2............................................................................................................................................6
Impact on cost for adding additional floor area...........................................................................6
Cost estimation for implementing changes..................................................................................7
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10
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INTRODUCTION
Business economics is composition of different theories and quantitative methods for
analyzing operations of organization and further making decisions regarding producing services.
It is considered as study of enterprise's structure on the basis of which preparing plans to be
implemented. The present report is based on understanding business economics and its aspects
for establishing new hotel entity through preparing planning layout for its construction. The
assignment covers tools related to estimation for building up entity including different factors
that affect construction and accuracy to reach out set target. In this regard, cost estimation factor
is to be introduced that impacts on planning layout for constructing building as well cost
effectiveness can be understood. Thus, learners are able to understand significance of building
economics for setting up new hotel including different factors that affects its construction
through this report.
TASK 1
Process to be followed on building up new entity
Being adviser, I have been appointed to suggest client on proposing building
development with low budget regarding hotel accommodation. As per the given scenario, it is
analyzed that the area is specifically wide for construction and building up four story, 80
bedrooms including communal area. In addition to this, area is to planned for building bedroom
of 2400 meter square as well 400 meter square for communal area (Ruegg and Marshall, 2013).
However, planning is created for this construction that impacts on different factors for processing
to construction. Therefore, proper analysis of overall area and planning structure is to be framed
for setting up. In accordance to this, structural framework is prepared for constructing building in
context of visitors' facilities and designing for adequate management effectively. Along with this,
it is needed to analyse all aspects including planning and action plans that proceed to designing
structural framework.
The current layout for single building and accommodation for hotel entity is planning on
in respect of peaceful environment that will not be affected by noise across railway junction. It is
related to designing structural design through preparing layout and following on planned tools
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(Anielski, 2013). However, systematic process to be followed on for building construction can be
explained briefly as below:- Inception:- At the first stage, architecture prepares budget by analyzing accommodation
requirements thereby a systematic structural framework is created for implementing
planning on building construction including forecasting and decision making for effective
setting up (Boland, 2014). Concept design:- After preparing budget and inception, design is structured for
conceptual and making decisions regarding building and engineers' role model for
segmenting work according to their abilities. Therefore, concept design is related to
preparing planning and scheduling for structural framework and implementing plans. Design development:- In this process, set planning is organized by which
implementation of action plans is created for accommodation facilities (Esposito and
et.al., 2015). However, structured design is developed that leads to completion of project. Documentation:- After planning and its implementation, overall activities are
documented including projecting and engineers' performance for working in team.
Therefore, systematic documentation is created for effective planning procedure and
following on set strategies effectively (McClave, Benso and Sincicj, 2014). Hence,
documentation is a process for recording project planning and its structural framework
for hotel entity's structural framework regarding accommodation facilities. In accordance
to this, several kinds of documents are made including local authority, construction
documentation, different phases of project and so on. Thus, proper procedures to for
projection is presented through this process. Contract administration:- It is the main stage of projecting under which project manager
expresses planning procedure to managers and administrators including workers who are
going to perform their job. Including this, work is divided among workers according to
their capability and potential regarding performance. Therefore, contract is created
between project team and manager to implementing plans for effective projection. In this
process, project activities are implemented to meet set goals.
 Close out:- In this final stage, winding up of project is created by which critical
evaluation on projecting is done that proceed to record project activities. In this regard,
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closing out of project is presented that includes conclusion and achievement for effective
projecting. However, relevant technical and contractual undertakings are obtained
through this process (Knotten and et.al., 2015). Moreover, winding up of project is
related to analyzing designed accommodation requirements as well checking out
performance as comparing actual and expected outcomes. Hence, above mentioned all
processes are followed for projecting and reaching out to the set target through setting up
new entity regarding accommodation requirements.
Factors affect accuracy of economic estimation
Economic estimation is an approach regarding forecasting by which projecting and
financing is implemented that affects on its accomplishment. It is useful for proper budgeting
and processing for accommodation requirements as well effective construction of hotel building.
In accordance to this, economic estimation accuracy is based on concentrating on factors related
to projection. In this process, various kinds of factors are affected for accommodation services
and designing hotel's building. For example; focusing on timing to accomplish any specific task
in a fixed time. Including this, role model of engineers and their capabilities to perform job
impact on completion of project (Knotten and et.al., 2015). Moreover, for constructing new
building entity, it is needed to look at surrounded area of constructing building including risk
assessment. It is related to project cost management is a concept for estimating cost, budget and
procedures for making decisions to implement set activities. In accordance to this, different kinds
of project determinants are analyzed that impact on projecting to reach out set goal. Therefore,
economic estimation accuracy is depend on such variables as financial status of organization and
owner, planning procedure and prices for costing and supplementing goods and contract
management that affects project planning and its completion.
However, economic estimation accuracy is essential for proper projecting and
determining all factors related to task accomplishment for accommodation requirements. In this
process, forecasting for project accomplishment and constructing building of hotel entity that
affects project accomplishment and accommodation requirements related to different facilities
and hotel services to gain adequate satisfaction from customer side that affects productivity and
profitability of services provided by organization. In this regard, costing is created for price
determination and gaining proper income for improving efficiency and effective service qualities
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to accomplish project planning (Najjar, Strickland and Kaplan, 2016). Therefore, planning
procedure is created for estimating cost incurred on organization's operations. Moreover, price
determination is obtained for projection and accomplishing project related to economy and
facilitating hotel services to its customers effectively. In this process, economic estimation
accuracy is related to forecasting cost and action planning to reach out set goal of hotel entity.
Thus, building construction work can be organized efficiently that affects on projection and
different aspects are created for designing hotel entity and constructing its building to fulfill
accommodation requirements in systematic manner. Including this, economic estimation in
accurate way is related to cost effectiveness as well making decisions for implementing planning
layout structure to be followed on. Different factors which impact on economic estimation
accuracy are linked with varieties of functions and projecting for better building entity as well
constructing new designs for projection and implementation. However, project planning can be
implemented in in systematic managing way to accomplish tasks that affects building and
efficiency of hotel entity including service qualities and designing its framework as well building
including kitchen, dinning hall, rooms for accommodation and so on. Hence, cost estimation and
price accuracy can be obtained clearly through this process that impacts on entity's quality
services regarding food and accommodation facilities.
TASK 2
Impact on cost for adding additional floor area
Architecture analyses estimations for changing in building construction for
accommodation requirements. In this process, he identifies all costs' impact due to changes in
plan. According to case scenario, it is recognized that the large site of floor changes under which
different aspects are presented for making decisions for effectiveness. It is recognized for
bedroom bock to be erected as a separate building that would be linked with walkway to
reception area including different common facilities (Kreibich and et.al., 2014). Therefore, costs
are estimated for this flexibility in planned layout. It will be impact on space area and overall
costing as well timing for projecting. In this regard, design of hotel entity's construction will be
impacted that is for cost planning and techniques to constructing hotel as a project. Along with
this, it will be time consuming and cost effectiveness for further operations. By creating changes
in set layout, it is identified that projection will be gained in different manner. In addition to this,
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it will more expensive and high range of cost would be incurred for changes that affects
monetary and time scheduling for projection as well differences in project planning will be
gained through this concept. For this assessment, it is required to estimate cost and expenditure
to be incurred for changes and innovations in project planning can be identified (Soliman and
et.al., 2016).
Cost estimation for implementing changes
By focusing on different elements for constructing building as steel frame, upper floors,
roof, stairs, walls, doors and so on. Comparison between both costs can be comprised. For
instance; it is estimated that for purchasing steel frame, organization will has to incurred cost of
50.67 that would be increased if changes are implemented to separate bedroom block to
reception enclosed walkway. There would be high cost incurred as per estimation. In addition to
this, according to given decided cost plan in appendix A, cost on upper floors is expected as
39.63 and further double cost will have to incurred because of purchasing extra material and
changing in design for building construction including time will be spend more for this purpose
that affects on structure and building design due to changes. Including this, estimated cost to be
spent on roof was 55.18 but due to making separation, cost for this manufacturing will be not so
affected on this expense. Because, for that specific area, no need will be gained to manufacturing
roof. However, there will be space between reception area and bedroom building therefore,
material will be used in other construction. In accordance to this, it is evaluated that cost will be
affected due to changes in plans and building construction related to enclosed walkway between
seperate buildings.
Moreover, by focusing cost to be incurred on stairs, cost which was expected to be
incurred was 17.14 that will be expected as around 34 because of spending money on purchasing
materials and extra facilities to create way between both buildings. However, it will be suggested
to client that for constructing stairs according to new plan, extra material and cost will be
incurred that impacts on project planning and overall estimations for setting up hotel entity and
its bedrooms as well reception hall. Therefore, space between both building would be affected
for project planning and accepting changes. Moreover, chnarges on external walls, doors and
windows will be impacted regarding cost estimation. Fluctuation in material used, costing and
several aspects will be affected for making decisions and implemented chnages. It is analyzed
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that cost incurred estimation for external doors is around 51 that will be high because of
enclosing walkway and attaching new windows, spacing between reception place and bedroom
building. In this regard, extra doors will be required to add for constructing builiding through
accepting changes. It is identified that creating walkway will be costly for organization due to
extra need of material, money and different substances such as doors, windows and so on. Apart
from this, on the basis of safety and security, there will be need for internal door between
reception place and bedroom building so additional things would be expected to purchase. In this
way, estimated incurred cost 31.63 will be double for implementing changes.
Including this, superstructure for changes in accommodation requirements as wall, floor
and ceiling finishes will be impacted due to adopting changes. In this regard, it is evaluated that
overall cost will be incurred on thess things can be 266.76 but due to chnages in construction
plan, cost will be affected due to incurring additional expenditures for finishes. In accordance to
this, for changes in these substances, double cost will be incurred for this changes. Thus, it is
analyzed that changes in building construction as separation between reception and bedroom
block affects on organization's finishes as well various materials and differences according to
quality services and project planning will be impacted. In this process, it is determined that floor
finishes for this estimation will be doubled due to changes of walkway because of attaching
doors, windows, stairs for getting adjusted according to new innovation. In addition to this, hotel
entity and its design will be impacted including materials, cost and different aspects in case of
finishing.
Through focusing on internal finishes such as fittings, kitchen cupboards, notice boards
and so on. It is expected that concentrating on cost effectiveness is required for adopting new
changes for enclosing walkway between reception and bedroom building block. There will be
extra requirement for material, cost and project planning that affects on time consuming as well
designing new frame. Thus, last cost estimation for this construction was expected as 39.46 that
will be least affected on this creation. These are internal fictures that does not affect so much due
to changing in project plan. In addition to this, it will only be interlinked with overall budget and
setting price for adding materials as well accepting chnages for walkway.
By focusing on different services as sanetary appliances, water, heating, electrical gas etc
will also get impacted through changes in set project plan. The estimated cost incurred on this
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expense was 137.49 that will be doubled because of adding new services and accepting changes
for walkway. However, heating and different things will be impacted because this adjustment.
Thus, as per overall estimation, it is identified that estimated cost on project planing will be
doubled, if we create changes for organization's creation. Under this process, it is evaluated that
it will be expensive to create and accept changes for enclosing walkway between reception and
bedroom building block.
CONCLUSION
The report is concluded that building economic is important for analyzing actual
performance and of enterprise and further making decisions for its operations. However,
different aspect ed are described related to costing, budgeting, planing and various aspects for
constructing hotel entity. Including this, various tools and techniques for estimation and setting
up new entity is obtained that affects on organization's effectiveness. Including this, a systematic
spanning procedure is determined for projecting and its completion. Moreover, varieties of cost
estimation and plans are introduced for changing in project plan through enclosing walkway
between reception and bedroom blocks through this assignment.
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REFERENCE
Books and Journals
Anielski, M., 2013. The economics of happiness: Building genuine wealth. New Society
Publishers.
Boland, L.A., 2014. The Methodology of Economic Model Building (Routledge Revivals):
Methodology After Samuelson. Routledge.
Constenla, D. and et.al., 2015. Costing dengue fever cases and outbreaks: recommendations from
a costing dengue working group in the Americas. Value in Health Regional Issues. 78(5).
pp.80-91.
Esposito and et.al., 2015. Organically modified montmorillonite polymer nanocomposites for
stereolithography building process. Polymers for Advanced Technologies. 78(1). pp.92-
98.
Knotten, V. and et.al., 2015. Design management in the building process-a review of current
literature. Procedia Economics and Finance. 78(6). pp.120-127.
Kreibich and et.al., 2014. Costing natural hazards. Nature Climate Change. 4(5). pp.303-306.
Ma, J. and et.al., 2016, June. New Development of China's National Evaluation Standard for
Green Building (ESGB-2014): A comparison of ESGB 2014 to ESGB 2006. In Energy:
Expectations and Uncertainty, 39th IAEE International Conference, Jun 19-22, 2016.
International Association for Energy Economics.
McClave, J.T., Benson, P.G. and Sincich, T., 2014. Statistics for business and economics. Essex:
Pearson.
Najjar, P.A., Strickland, M. and Kaplan, R.S., 2016. Time-Driven Activity-Based Costing for
Surgical Episodes. Jama surgery. 78(1). pp.96-97.
Ruegg, R. and Marshall, H., 2013. Building economics: theory and practice. Springer Science &
Business Media.
Soliman, P.T. and et.al., 2016. Evaluation of resource utilization using time-derived activity-
based costing results in more effective processes and cost reduction. Gynecologic
Oncology. 878(6). pp.195-196.
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