hotel market and product analysis
Hotel feasibility studies are the result of a professional activity aimed at establishing if a hotel project that is localized in a given place has enough probability to be economically sustainable, according to specific current and perspective market conditions.
Sometimes it may happen that feasibility studies focus just on single or economic-financial market aspects, without considering other elements, such as building construction costs, or assessing the financial structure of the operation, which is determined by bank credit conditions within the real estate, hotel and accommodation industry.
Generally, a hotel feasibility study should contain the following analyses:
In some cases, even at the instance of clients, feasibility studies may contain:
Feasibility studies support the whole process of real estate development, identifying realistic objectives in terms of performance of the new accommodation structure on the market.
Feasibility studies that are carried out with professionalism and competence reduce the risk of a new hotel real estate project, since they first consider the market conditions in which the hotel will be operating.
Furthermore, feasibility studies are recommended by major international hotel chains, which often need that type of analysis to support the adoption of various types of products in the different hotel markets.
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