Commercial Building Revitalization in the city of Bandung, A feasibility study on “XYZ Hotel” Bandung

This thesis explores the feasibility study and potential revitalization of underutilized commercial buildings in Bandung, focusing specifically on the case of XYZ Hotel. The argument contends that many commercial buildings in Bandung remain underutilized, missing out on opportunities to generate higher income by utilizing their full potential. The study employs SWOT analysis and a comprehensive feasibility study to determine the potential of these buildings and propose strategies for their revitalization. The research questions aim to assess the current condition of XYZ Hotel, compare its facilities with competitors, identify alternative functions for the building, and evaluate the feasibility of its revitalization. Through interviews with industry experts and on-site observations, the physical condition of the hotel is evaluated, highlighting the need for significant renovations and upgrades to enhance its appeal and competitiveness. The study also examines the economic feasibility of the revitalization project by conducting a thorough financial analysis. The findings indicate that XYZ Hotel is currently underutilized and faces challenges in terms of outdated infrastructure, lack of modern amenities, and subpar room conditions. Experts recommend a major overhaul of the hotel’s facilities, incorporating modern technologies and amenities to meet the expectations of contemporary travellers. The financial analysis demonstrates a positive Net Present Value (NPV) of IDR 47,701,605,549, an Internal Rate of Return (IRR) of 16,61%, a Profitability Index of 1.90 times, and a payback period of 8 years, affirming the financial viability of the revitalization project. Based on the research findings, recommendations are provided for the building owner, ITB, and potential investors. The owner should carefully select investors who align with the vision and values of the project, considering the historical significance of the building and its potential impact on ITB’s reputation. For investors, it is crucial to understand the constraints associated with revitalizing a cultural heritage building and leverage the historical value of XYZ Hotel as a unique selling point. In conclusion, the study demonstrates the potential for revitalizing underutilized commercial buildings in Bandung, with XYZ Hotel serving as a case study. The proposed strategies and financial analysis provide valuable insights for stakeholders and future researchers interested in similar projects. By revitalizing and transforming underutilized buildings, Bandung can unlock new economic opportunities and preserve its cultural heritage for generations to come.