FEASIBILITY STUDIES


You are in a situation where you need an independent Feasibility Study for a hotel project that will examine the viability, operation, scale, brand, suitability of the site for development and detailed performance projections. Our Hotel Feasibility Studies are a detailed look at the market, the position of the hotel, a detailed projection of its operation and performance to ten-year operation projections, the scale/positioning of the product and the economic business case to justify the investment.

Our Feasibility Study Includes:

  • Inspecting the site location and its surrounding areas.
  • Visiting each hotel, the project might be in competition with
  • Economic and Demographic Indicators of the local area
  • Choosing the most competitive hotel set from Smith Travel Research.
  • Analyzing data provided by Smith Travel Research such as projected ADR, Occupancy, REVPAR vs. Comp Set
  • Projected ADR, Occupancy, REVPAR vs. Comp Set
  • Investigating brand possibilities and offering suggestions.
  • Suggesting optimal room count, amenities, retail, food & beverage, banquet space.
  • Determining how the re-positioned or proposed hotel would fit within the existing hotel supply in its market.
  • Identifying potential demand generators.
  • Reporting on any proposed hotel additions in the market.
  • Financial Projections with Cash Flow Usage and 10 Year Operating Performance
  • Leveraged Internal Rate Return (IRR) Analysis

Let our experienced team of hospitality professionals make sense of the sometimes-muddled language that surrounds a very sound necessity and set of rules in the hospitality industry. FA Hospitality’s feasibility studies offer valuable insight into the real estate and business complexities involved in acquisition and development projects.