Description of the business project:
The “Goygol Hotel” project envisages the creation and
management of a four-star hotel in the Goygol district, one
of the most attractive Azerbaijan and one of the areas with
fascinating nature. The tourism industry of Azerbaijan has been
developing rapidly in recent years. As a result, there has been a
significant increase in the number of foreign tourists coming to
the country in recent years. Goygol region is another important
tourist destination benefiting from this expansion. Considering
the rise in the number of visitors to Goygol in recent years, but
the relatively low level of hotel infrastructure in the area, the
hotel proposed to be built within the project is expected to be
beneficial. An investment of AZN 4,280,000 is required for the
implementation of the project. A weighted average capitalization
rate of 18.6% has been estimated, and the internal rate of return
(IRR) was determined to be 30 %. An informed decision can be
made regarding the implementation of the project because the
IRR (30%) in this project is higher than the weighted average cost
of capital (18.6%). Moreover, the net present value is equal to AZN
3,593,034.
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