According to the general trend of social and economic development in ** city and the overall planning of the construction of the cluster structure of the big city, combined with the provincial department, the provincial bureau on the speeding up of the overall deployment of the work of the ***, in order to comply with the trend of social development, service ** economic construction, and to improve the impact of the ** system, **** has the intention of leasing the trade union building, to the directly under the unit of ** **** specifically to carry out a comprehensive service business integrating catering, accommodation, conference, training, business and entertainment. Now its feasibility analysis is as follows.

One, the Trade Union Building Overview

(a) Geographic location

The Trade Union Building is located in the Hi-tech Development Zone ** Road and ** Road junction, east of the ** Bridge, west of the ** Middle School, south of the ** Factory, north of the ** Company, near the ** City Public Security Bureau, ** Group, as well as the Development Zone stationed in a number of enterprises and institutions, the location is superior.

(2) Basic construction

The labor union building is invested 20 million yuan by the ** City Federation of Trade Unions, the first branch of the construction company by the ** City Construction Company construction, started in April 98, was completed in October 2001, through the ** Development Zone Quality Inspection Station completion acceptance, acceptance of certificates of conformity, fire certificates, certificates of conformity of the quality of the building and other relevant documents are complete. The building area of the trade union building is 11,000 square meters, of which the actual business area is 6,600 square meters.

(C) the basic layout and facilities equipped

1, the basic layout. The main body of the Trade Union Building is divided into three parts: Jiu Ru Hall, Quan Shun Building and Office Building.

(1) Jiuru Hall. ***3 floors, for catering and entertainment, conference reception, business activities. The first floor has a catering hall of 600 square meters, which can accommodate more than 500 people dining at the same time, and its internal bar, stoves, tables and chairs and other related ancillary facilities are complete and intact. The second floor is a single room with luxurious interior decoration and complete facilities, including 4 large single rooms and 10 medium-sized single rooms. The third floor is a large conference room with an area of 600 square meters and a capacity of more than 500 people, which has held many municipal and bureau-level meetings and training courses of various types, as well as six dining rooms decorated in Japanese and European styles and a well-decorated tea ceremony room.

(2) Quanshun Building. ***5 floors, for the guest room reception place, in accordance with the star standard design, the existing guest rooms 56 rooms, 112 beds, divided into luxury suites, standard rooms, multi-people. First floor service hall 300 square meters, beautiful norms, reasonable layout. The second to fifth floors are equipped with well-equipped meeting rooms and activity rooms in addition to the fully renovated guest rooms.

(3) Office Building. Construction area of 1,000 square meters, *** 3 floors, each floor has 9 offices, parking lot in front of the building.

2. Facilities equipped. Water, electricity, heating, gas, cable TV is complete, the cost of all settled, including the circuit after the increase in capacity to change the line, the transformer is 315 kilowatts, heating for the heat company heating. In addition, there are boiler room, rockery, green belt, promenade and other ancillary facilities.

(4) the previous operation

Trade Union Building in July 1, 2002 by the ** City Federation of Trade Unions to 800,000 yuan per year lease to the ** company, the lease period of five years. ** company leased the trade union building as a hotel, guesthouse operation, and invested some funds to its appropriate decoration and renovation, on August 6, 2002 trial operation, September 6, 2002 officially opened, January 15, 2003 for various reasons was ordered to suspend rectification, the company is now due to liquidity difficulties, mismanagement, inability to continue to operate and manage. According to the data provided by the hotel and guesthouse, its more than four months of operation, the average daily operating income of 26,000 yuan, of which 16,000 yuan of income from food and beverage, 0.8 million yuan of income from guest rooms, 0.2 million yuan of income from business activities; an average of 20,000 yuan of expenditure per day, of which the cost of 0.8 million yuan of food and beverage, employee wages, management fees, taxes and fees of 0.6 million yuan, water, electricity, heating and gas expenditures of 0.5 million yuan, other expenses 0.1 million yuan.

Two, the project background and significance

(a) Project background

1, the market prospect is broad. With the rapid social and economic development of the city of ** as well as the construction of the cluster structure of the city's full speed, ** the city's urban center of gravity is gradually moving east, the eastern development zone is becoming more and more a strategic place for investment and business. Catering and entertainment projects in the development zone, with a wide range of customer sources, high consumption levels, social impact and many other significant features, and after the previous period of operation, has been with the ** Building, ** Building, ** Hotel and other units to form a good group effect and tripod, the market outlook is very broad.

2, superior conditions. If you operate a brand new catering and entertainment project in the development zone, you must carry out a lot of work such as applying for formalities, purchasing land, construction, decoration, etc., which not only has a long operation cycle but also requires huge capital investment. Leasing the Trade Union Building project does not require approval of formalities, land acquisition, infrastructure construction, decoration, or even additional purchase of accommodation and food utensils, and it can be opened as soon as the lease and transfer procedures are completed, which is a very advantageous condition in all aspects. At the same time, because all the assets are owned by the ** Municipal Federation of Trade Unions, the leasing behavior is only a business operation rather than capital construction, the lease period may be long or short depending on the operating conditions, which correspondingly reduces the risk of investment and increases the likelihood of profitability.

3, office, business organic combination. As the unit office building will be completely remodeled, developed into a set of catering, accommodation, entertainment as one of the ＊＊ building (tentative name). During the construction of the building, my unit will have to spend hundreds of thousands of dollars a year in addition to leasing office space, will not only cause economic losses, but also affect the office business activities. After leasing the trade union building, we can directly convert our office space leasing costs into trade union building leasing costs, realize the organic combination of office, business, so as to avoid economic losses and improve economic efficiency.

(ii) the significance of the project

1, to improve the impact and establish an image. Leasing and operating the trade union building of the ** Municipal Administration can have a window and link to fully publicize and display the achievements of dual civilization construction, which will play an important role in improving the influence of the ** system and establishing a new image of **.

2. Adjustment of industrial structure and promotion of comprehensive development. ** Bureau of leasing trade union building and handed over to ** to carry out comprehensive service business, is conducive to adjusting the industrial structure, accelerate the pace of **, but also conducive to ** enterprises to achieve the core of engineering construction to the core of the transformation of the social services, and better with the social market, the formation of ** sector "four industries" comprehensive development of a good situation.

3, to facilitate the life of workers, to promote the construction. ** Bureau of leasing trade union building, the city ** construction can provide a good place for business, meetings, training, reception, and promote the development of ** economy, but also for the staff to provide a place to organize all kinds of banquets, celebrations, celebrations, competitions, to facilitate the life of cadres and workers.

4. Accumulate business experience and exercise the staff. Lease of labor union building, can be for the ** building planning and design, construction, decoration and provide reference basis, the lessons of its business operations and management team is ** building the smooth operation of the indispensable basis and conditions.

5, resettlement of surplus personnel, reduce employment pressure. Due to the city's ** system in recent years, personnel growth is too fast, and the diversion channels are not smooth, so the employment situation is becoming more and more serious. After the normal operation of the trade union building, it can create more than 100 employment opportunities, which is conducive to the realization of the reasonable diversion of the personnel of the ＊system, and reduce the employment pressure on the units.

Three, the basic situation of the project

(a) Project Name: Lease of Trade Union Building

(b) Leasing Unit: ＊ Bureau

(c) Operating Unit: ＊

(d) Lease Term: tentative 3 years

(e) Annual Rent: 800,000 yuan (quoted, the original tenant unit of the renovation, the fixed assets of the lease costs) (Separate negotiation)

(F) Initial investment: 2 million yuan. Of which annual rent of 800,000 yuan, start-up capital of 1.2 million yuan.

(7) source of funds: **self-financing solution

(8) management: signed a contractual management responsibility to ensure its independent operation, self-financing, self-accumulation, self-development; the building's internal implementation of the general manager under the leadership of the hierarchical system of responsibility, set up under the Ministry of Finance, the Ministry of Enterprise, the Department of Public Relations, the Department of Rooms, the Ministry of Food and Beverage and other institutions.

(IX) Social benefits: ** Bureau after leasing the trade union building as a training center, and its hotels and guesthouses to operate, so that it really becomes a window and link for external publicity, and effectively improve the overall image of the ** system.

(x) Economic benefits: the Trade Union Building, as an independently accountable economic entity, can become a new economic growth point for the city's ＊development through commercial operation, and at the same time drive other departments to improve economic efficiency.

Four, economic benefit analysis and forecast

Trade Union Building is located in the development zone, near the densely populated, dense units, heavy traffic, market prospects. According to the existing conditions of the trade union building, the previous operating conditions and ** the actual situation, now from a conservative point of view of the economic benefits of the analysis and forecast are as follows.

(A) hotel revenue

According to the annual 300 days, the average daily operating income of 15,000 yuan, the profit margin of 30% of the forecast, the annual profit of 1.5 × 30% × 300 = 1.35 million yuan.

(ii) room revenue

According to 300 days a year, the existing 112 beds average unit price of 60 yuan per bed, occupancy rate of 50%, the profit margin of 60% of the situation forecast, the annual profit of 112 × 60 × 50% × 60% × 300 = 604,800 yuan.

After leasing the union building, its calculable annual profit is: 135 + 60.48 = 1.9548 million yuan.

V. Recommendations

The ＊＊Bureau directly negotiates with the ＊City General Labor Union on all issues such as rent. The ＊＊ Bureau leases the labor union building and then contracts it to ＊ for business operation, and the ＊ Bureau is responsible for supervision and guidance.

VI. Conclusion

This project has the characteristics of low investment, low risk, high efficiency, high impact, easy operation, etc. It has a better role to play in accelerating the pace of development of the ** and improving the image of the **, which is better and feasible in terms of business operation, economic benefits and social impact.

Attachment: 1. Housing Lease Contract signed between the ** City Federation of Trade Unions and the ** Company

2. Supplementary Agreement to Housing Lease Contract signed between the ** City Federation of Trade Unions and the ** Company