Phuket Beach Hotel has the opportunity to lease their unused space to a karaoke bar and earn rental income. Alternatively, the hotel could develop the unused space and create their own pub. The general manager of the hotel must decide which of the two investment projects recommended to the owners of the hotel. This case provides sufficient information to build cash flow projections for each project and include the mutually exclusive projects with different criteria.

Phuket Beach Hotel has the opportunity to lease their unused space to a karaoke bar and earn rental income. Alternatively, the hotel could develop the unused space and create their own pub. The general manager of the hotel must decide which of the two investment projects recommended to the owners of the hotel. This case provides sufficient information to build cash flow projections for each project and include the mutually exclusive projects with different criteria.
«Hide

from
Su Han Chan,
Ko Wang
Mary Ho
Source: University of Hong Kong
4 pages.
Publication Date: Aug 15, 2001. Prod #: HKU145-PDF-ENG
Phuket Beach Hotel: Valuing mutually exclusive capital projects HBR case solution