Feasibility Studies for New Accommodation Projects

BENEFIT FROM Three Decades of Expertise in Feasibility Analysis

To de-risk a proposed new accommodation project – undertaking an independent feasibility analysis is a highly responsible approach to take.

Having conducted over three decades many feasibility studies towards proposed new hotels & smaller boutique accommodation projects, I have successfully developed a model that efficiently and effectively determines the long-term viability of the potential new investment.

Why Conduct a feasibility study?

informed Decision-Making

Gain a clear financial outlook for the first three years, helping you determine whether to proceed with the development.

Cost Efficiency

Identify ways to minimise initial development process costs.

Risk Mitigation

Understand and reduce potential major financial risks, increasing the projects success.

Step 1:

Product AND Pricing analysis

  • Initial Product Assessment: Type, mix, quantity
  • Initial Price Assessment: Preliminary market / competitor assessment, positioning opportunity, pricing mix

From the Product & Pricing analysis, determine product and pricing assumptions, to incorporate into Step 2: Feasibility Financial Analysis.

Step 2: 

Feasibility Financial analysis

  • Construct first 3-years “as if complete”, full profit & loss operating model (all income and expense lines – necessary), to varying key assumptions, including varying levels of occupancies and pricing.
  • These varying key assumptions, aid determining critical breakeven point for the project, so to the projects extent of financial return potential (accounting – rate of return analysis).
  • Throughout this process – determining the most practical and viable operational model, drawing on my 30+ years of experience, across a very broad range of new accommodation projects, ranging in size from 3 – 300 rooms, some with restaurants and bars.

    Critically, testing full operational income and expenses, to determine the recommended extent of total investment that should be made to:

    a) Prevent over capitalising on the project i.e. not spend more than you should, de-risking your investment

    b) Position strongly towards ensuring the best return on your investment

Considering an independent Financial Feasibility analysis? Book a 30-minute no obligation chat

Enquire now to set up a 30-minute no obligation chat to discuss your project and how I can assist to de-risk your investment.