The Feasibility Study On Investment To The Renovation Project Of Gulangyu Island

Wanghailou which belongs to the sanatorium in Gulangyu Island is a4floors hotel. After many years idle, the authority planed to invest15million Yuan on the renovation project of the building in2013.This paper issues the feasibility study on investment to the renovation project of Gulangyu Island. According to the management status from the same type of hotels and health management centers of Xiamen, combined with the full and accurate data, the author applies project feasibility research, financial evaluation, risk analysis and other related theories to study and appraise the development plan of investment project.Through reference to the relevant case materials and literature of feasibility study, researching the prospects of economy, tourism in Xiamen, firstly, this paper introduces the brief information about the project, and analyses the data on competitive industry including hotel and physical examination industry, and makes market feasibility evaluation on the project. Then, forecast the amount of investment and business income and makes financial feasibility and financial uncertainty study of project. Finally, summarizing all aspects, the author recommends the development program and proposes the project’s overall economic assessment and suggestions. The feasibility study on the project is a valuable reference for other hotel renovation projects and will be helpful to the investor in decision-making.