Hotel Feasibility Study & Financial Viability Analysis

We conduct comprehensive Hotel Feasibility Studies that evaluate the economic viability of proposed or redeveloped hotel projects. Our approach combines detailed market intelligence with rigorous financial modelling to support informed investment decisions and secure project financing.

Each feasibility study assesses your project’s trading potential, positioning, competitive landscape, and development costs, providing a clear picture of its long-term financial performance. We follow a structured, step-by-step methodology designed to keep the process efficient, transparent, and aligned with your time and budget objectives.

Our feasibility studies typically include:

·        Market Positioning Recommendations – defining the optimal positioning of your proposed hotel within its target market;

·        Hotel Concept Definition – detailing room count, facilities mix, and ancillary outlets based on demand drivers;

·        Operational Structure – outlining annual profit and cost centres for all key departments;

·        Performance Projections – forecasting average daily rate (ADR), average room occupancy, and revenue per available room (RevPAR);

·        Pricing and Cost Assumptions – estimating revenues and operating expenses consistent with the proposed concept;

·        Financial Statements – preparing a detailed projected Profit & Loss (P&L) statement and cash flow analysis;

·        Investment Metrics – evaluating project returns through Key Performance Indicators such as Debt Coverage Ratio (DCR), Internal Rate of Return (IRR), Net Present Value (NPV), and Payback Period.

Whether for development planning, financing, or investor due diligence, feasibility studies deliver the necessary data-driven insights and financial clarity to move forward with confidence.