{"id":220,"date":"2018-07-12T15:51:06","date_gmt":"2018-07-12T15:51:06","guid":{"rendered":"http:\/\/www.hotel-seeker.it\/?page_id=220"},"modified":"2023-08-29T17:09:29","modified_gmt":"2023-08-29T17:09:29","slug":"hotel-feasibility-studies","status":"publish","type":"page","link":"https:\/\/www.hotelseeker.it\/en\/hotel-feasibility-studies\/","title":{"rendered":"Hotel Feasibility Studies"},"content":{"rendered":"

Hotel\u00a0feasibility studies<\/strong>\u00a0are the result of a\u00a0professional activity<\/strong>\u00a0aimed at establishing if a hotel project that is localized in a given place has enough probability to be\u00a0economically sustainable<\/strong>, according to specific current and perspective market conditions.<\/p>\n

Sometimes it may happen that feasibility studies focus just on\u00a0single<\/strong>\u00a0or economic-financial\u00a0market aspects<\/strong>, without considering other elements, such as\u00a0building construction costs<\/strong>, or assessing the\u00a0financial structure<\/strong>\u00a0of the operation, which is determined by bank credit conditions within the real estate, hotel and accommodation industry.<\/p>\n

Generally, a hotel feasibility study should contain the following\u00a0analyses<\/strong>:<\/p>\n

    \n
  1. Quantification of\u00a0market potential\u00a0<\/strong>for the new hotel product, with estimates of penetration, projections of the occupancy rate in the year of management and average yield per room of the accommodation unit (so-called ADR, Average Daily Rate)<\/li>\n
  2. Preparation of the hotel unit perspective\u00a0Revenue Account\u00a0<\/strong>by applying accounting standards, such as\u00a0USALI<\/strong>\u00a0(Uniform Standards of Accounts for the Lodging Industry), which allows identifying costs and revenues of single hotel operations<\/li>\n
  3. Representation of study\u00a0conclusions\u00a0<\/strong>and clarification of\u00a0recommendations<\/strong>\u00a0addressed to the Client, by drafting and issuing a\u00a0written<\/strong>\u00a0and signed\u00a0report<\/strong>.<\/li>\n<\/ol>\n

    In some cases, even at the instance of clients, feasibility studies may contain:<\/p>\n

      \n
    1. Estimate of the\u00a0hotel value<\/strong>, as a result of cash flows analyses and\u00a0suitable hotel valuation methods\u2013 commonly based on\u00a0DCF methods (Discounted Cash Flow)<\/strong>\u00a0\u2013 and comparison of this value with the building construction costs, included possible further cost items for the regularization of hotel operations.<\/li>\n
    2. A\u00a0financial analysis\u00a0<\/strong>of the project \u2013 aimed at assessing the real financiability \u2013, including the composition of\u00a0invested capital<\/strong>, the determination of\u00a0optimal forms<\/strong>\u00a0of own and third party capital, according to the costs that can be associated with debt capital and expectations of the return on invested capital.<\/li>\n<\/ol>\n

      Feasibility studies support the whole process of\u00a0real estate development<\/strong>, identifying realistic objectives in terms of performance of the new accommodation structure on the market.<\/p>\n

      Feasibility studies that are carried out with professionalism and competence\u00a0reduce the risk<\/strong>\u00a0of a new hotel real estate project, since they first consider the market conditions in which the hotel will be operating.<\/p>\n

      Furthermore, feasibility studies are recommended by\u00a0major\u00a0international hotel chains<\/strong>, which often need that type of analysis to support the adoption of various types of products in the different hotel markets.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Hotel\u00a0feasibility studies\u00a0are the result of a\u00a0professional activity\u00a0aimed at establishing if a hotel project that is localized in a given place has enough probability to be\u00a0economically sustainable, according to specific current and perspective market conditions. Sometimes it may happen that feasibility studies focus just on\u00a0single\u00a0or economic-financial\u00a0market aspects, without considering other elements, such as\u00a0building construction costs, or […]<\/p>\n","protected":false},"author":2,"featured_media":24981,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-220","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/pages\/220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/comments?post=220"}],"version-history":[{"count":9,"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/pages\/220\/revisions"}],"predecessor-version":[{"id":10208,"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/pages\/220\/revisions\/10208"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/media\/24981"}],"wp:attachment":[{"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/media?parent=220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}