Before building a hotel or investing in one, you need an accurate and comprehensive hotel feasibility study and analysis. In order to determine the possible return on investment, you need an accurate comparison of the projected costs of the proposed project versus the expected value of the completed hotel project.
There is a lot more that you need to know beyond the local real estate and the projected costs of the build or project. A hotel feasibility study and analysis should include objective and accurate analyses of economic, market, financial, demographic, and geographic factors.
Because it goes far beyond other forms of commercial real estate analysis, a hotel feasibility study and analysis should be carried out by experienced experts who specialise in these types of studies.
If you are interested in assessing the viability of a hotel investment, contact THSA for a professional, accurate and detailed hotel feasibility study and analysis. THSA’s experience and expertise in the hotel business means that we provide invaluable services.
Invest in an accurate hotel feasibility study and analysis from industry experts.
As leading experts in the local and international hotel market, we provide leading hotel feasibility studies, relevant market analysis reports, and accurate financial forecasts.
THSA will provide you with an accurate, detailed, and understandable hotel feasibility study and analysis. Our specialised feasibility analysis services include:
- hotel and other accommodation opportunities
- hotel feasibility
- hotel investment
- hotel developments
- restaurants and bars (and other food and wine projects)
- tourism projects (including both tourism attractions and transport services)
- high level market assessments
- hotel accommodation statistics including revenue per available room (RevPAR), average daily rate (ADR), and occupancy
A hotel feasibility study and analysis typically covers eight main factors:
- Area, neighborhood, and demographic analysisThis is an analysis of the local economy in the area surrounding the proposed hotel. It includes aspects such as populations trends, household growth, household economics, area economics, attractions, and area transportation.
- Comprehensive site reviewThis is a review of all site-related attributes that are necessary for the success of the proposed hotel project. This includes size, access, visibility, topography, and nearby available amenities. In addition, governmental impacts are also assessed. This includes issues such as tax, zoning, governmental restrictions, environmental regulations, etc.
- Proposed development recommendations and costsRecommendations are based on the project’s plans, proposed scope, and projected costs. These include aspects such as the number of guest rooms, restaurants and lounges, required space for meetings, recreational facilities, retail shops, spas, aquatic features, and other amenities.
- Market analysisBoth the local and regional markets need to be thoroughly analysed. These have an important influence on the projected financial feasibility of the project. This analysis can include: hotel competitors, employer analysis, recent hotel openings, potential hotel openings, market segmentation, market penetration, and projections.
- Proposed development occupancy and average daily rate (ADR)This requires a detailed model of supply and demand. It should take the past performance of the market into account, and make accurate projections. Occupancy, ADR and demand should all be addressed – in terms of past performance as well as projections of future performance.
- Financial analysisThis analysis includes a wide range of estimates and projections. Aspects that are covered can include: potential gross revenue, expenses (departmental, undistributed, and fixes), and projected net operating income for an appropriate holding period.
- Feasibility analysisThis, in essence, calculates the economic value of a proposed hotel. A feasibility analysis can take a few different forms. But ultimately the result is a projected future valuation of the property.
- Comparison of projected costs versus value of completed projectThis is what it all boils down to: does the projected value exceed the proposed development costs?
What is included in a hotel feasibility study and analysis by THSA?
A THSA hotel feasibility study and analysis culminates in a report that is thorough, detailed, and accurate. Just as importantly, each of our reports is understandable, relevant, and practical. Everything you need to know about a proposed hotel project and its local market will be comprehensively reviewed.
All the factors that contribute towards the success of a proposed hotel need to be taken into account and analysed in detail. You can expect a comprehensive hotel feasibility study and analysis to include aspects such as:
- a detailed economic overview, including the market demand in the local area
- employment trends
- tourism performance and future outlook
- visitation profile
- hotel supply
- tourism forecasts
- investment opportunities
- hotel growth
- supply and performance trends
- development opportunities
- hotel performance and projected future performance
- average daily rate (ADR) and revenues
We understand that you want to know more than simply whether or not a hotel is financially feasible.
You need to see a detailed financial analysis that accurately predicts your return on investment.
Who needs a hotel feasibility report? THSA can provide any party who has a vested interest with a hotel feasibility study and analysis. Our hotel feasibility reports are invaluable for:
- hotel investors
- hotel developers
- government organisations
- regional tourism organisations (RTOs)
- hotel owner/operator entities
At hotel industry experts, we provide our clients with accurate and detailed reports. Having worked in all areas of the hospitality industry, the THSA team is well acquainted with all the factors that contribute towards a successful hotel. Therefore, we ensure that we provide detailed and comprehensive feasibility studies that take all the relevant factors into consideration.
An accurate hotel feasibility study and analysis is the perfect example of what THSA brings to the table. It is an impressive combination of providing you with the overall ‘big picture’ as well as a thorough analysis of all the relevant details.
As a potential investor, you need to know what the projected return on investment (ROI) will be. You need to understand all the details before deciding whether or not to invest in a proposed hotel. A hotel feasibility study and analysis from THSA will provide you with all the data and analyses you need to make an informed decision.
For a hotel feasibility study and analysis that you can trust, enlist the services of the THSA team.