CAPITAL INVESTMENT TECHNIQUES
OF DUSIT THAI MANILA, SOFITEL PHILIPPINE PLAZA
AND MANILA HOTEL

Objectives of the study
Upon the completion of the study the researchers would be able to state the necessity of the topic being studied.
General Objective Identify the different capital investment methods that is commonly and consistently applied by Manila Hotel, Sofitel Philippine Plaza and Dusit Thani Manila regarding with capital decisions.
Specific Objectives 1. To indentify which capital investment evaluation method hotels & restaurants consistently used. 2. To know what specific advantages and disadvantages affects the overall performance of the business. 3. To clearly state other factors which could be consider in making managerial decisions. 4. To make an evaluation on different managerial practices that could be related in making decisions. 5. To have a comparative analysis of different capital expenditures taken by different classes of hotels that makes use of capital investment evaluation methods. 6. To have a quantitative analysis on capital investment evaluation methods used by management in making decisions. 7. To suggest recommendations about the results of the study.

Theoretical Framework

Output

Capital Investment Decisions.
Independent Variable

Hotels and Restaurants

Manila Hotel

Dusit Thani Manila

Sofitel Philippine Plaza
Dependent Variable

Payback Period

Accounting Rate of Return

Internal Rate of Return

Effective Interest Rate

Net Present Value

Company Background
DUSIT THAI MANILA
Dusit International has more than 60 years' experience in the hotel and hospitality field. Founded in 1949 by Honorary Chairperson Thanpuying Chanut Piyaoui, whose first hotel was the Princess on Bangkok's New Road, Dusit International has since acquired a unique portfolio of distinctive hotels, building upon Thai culture and tradition to create a personalized welcome for all guests made distinctive under the Dusit International brand promise; the delivery of an “experience that enlivens the individual spirit no matter what the journey”.
Located near the central business district and major attractions of each destination, Dusit Thani Hotels & Resorts offers exceptional infrastructure and services for all occasions, including special celebrations and major business and social events.
Dusit Princess Hotels and Resorts are situated in prime locations within key and secondary cities along with resort destinations. Appealing to those who seek the optimal combination of a well-located hotel and elegant accommodation, Dusit Princess also offers quality dining experiences, essential business connectivity and leisure facilities, efficient service and genuine value.
Catering to the high-powered, discerning sophisticate, Dusit Devarana is a significant niche offering that leverages Dusit International's rich cultural heritage and history of service excellence to offer an intimate, high-end sanctuary experience. The brand reflects the ultimate in luxury and refinement, providing an enriching experience through intellectual and artistic touch points, and a modern yet timeless aesthetic (http://www.dusit.com/about-us.html , Copyright 2014).
MANILA HOTEL
The Manila Hotel which opened in 1912 and extensively remodeled in the 1970s, is a Philippine landmark, home to high society and often a scene of historic events. Commonwealth President Manuel Quezon invited General Douglas MacArthur to build the Philippine army in 1935, Gen MacArthur responded to the request of his long confidant and sailed back to the Philippines. During his tenure as the Military advisor to the Commonwealth Government of the Philippines, Gen. MacArthur, his wife Jean and son Arthur made Manila Hotel their home. Manila Hotel became the command post at the onslaught of the Japanese invasion. But MacArthur and his men were unable to hold off the advancing forces and he and his men withdrew to Corregidor.
In February 2010 Manila Hotel joined the ranks of the world's hotel elite group and became a member of Prestige Hotels of the World. On November 20, 2010 Former US President Bill Clinton visited the country for a speaking engagement on his insights and views on global issues and concerns. The conference, with the theme Embracing Our Common Humanity Seminar, was held at the Manila Hotel Tent.
Manila Hotel offers more than 500 guests rooms that are all equipped with modern amenities designed for comfort. The rooms are all exquisitely decorated in a classic Filipinina theme visible in the use of capiz shells, wood furniture, and paintings by Filipino artists. Each room is spaciously outfitted with advanced in-room technology and takes advantage of the hotel’s location with the rooms overlooking the Manila Bay, the magnificent sunset, or the fascinating view of Intramuros (http://www.manila-hotel.com.ph/history , Copyright 2011).
Sofitel Philippine Plaza Hotel
Sofitel is a French luxury hotel chain managed by Accor, which opened its first property in Strasbourg in 1964. Its first overseas opening (in Minneapolis, USA) was in 1974. In 1995, Sofitel had 100 hotels in 40 countries and employed 12,500 people. Two years later, Sofitel joined the Accor Group, founded in 1983 and in 2000, opened properties in Philadelphia and New York. In 2005, Sofitel continued its expansion with Sofitel Asia Pacific. In 2007, Sofitel created a strategy to compete on the international luxury hotel market with its French Touch and the slogan "Life is magnifique". In the following year, Sofitel became its own unit in the Accor group with 161 Hotels worldwide. In 2009, the new brands Sofitel Legends and SO by Sofitel were introduced.
Sofitel Philippine Plaza Hotel is a 5 star hotel located at Roxas Boulevard, Pasay City, Philippines. It is only 20 minutes drive from the International Airport. It is close to business and commercial center of the city as well as historical and educational parks.
The hotel has 609 guestrooms beautifully furnished with modern amenities including air-conditioners, satellite television, radio, minibar, telephone, private bathrooms and a lot more. The hotel has also 13 function rooms with the capacity of up to 1, 500 persons good for different occasions and business related activities.
Other facilities of the hotel includes swimming pool, spa, gym, gift shop, business center, air-conditioned rooms, mini-bar, tennis court, driving range, tennis courts, badminton court, putting green, jogging trail, coffee shop, wheelchair -accessible rooms, and non-smoking rooms.
There are 5 restaurants within the hotel that offers various cuisines. Among them are Cafe Plaza, China Sea, Asian Seafood Restaurant, Siete Pecados and Treasure Island. (http://en.wikipedia.org/wiki/Sofitel, 2014)