Market and Economic Feasibility Study
A Hotel Feasibility Study offers in-depth analysis of an opportunity that takes into consideration many aspects of a development project that can impact its success. The process dives into analyzing key areas including
- economic indicators
- tourism industry
- site characteristics
- competitive set
- market demand and growth
- forecast of occupancy and average rate
- ProForma statement (10-year)
- costs and financing,
- and more.
Critical outcomes include:
- positioning & brand recommendations
- Facility recommendations (area program)
- financial performance
- return on investment analysis (payback & IRR)
Potential investors can thus position the project to maximize their return on investment or achieve other objectives as desired. A feasibility study helps owners and developers to identify whether the project is sustainable over the long-term that will deliver profitability and potential value if a sale should occur over the investment time horizon. In determining the financial viability and feasibility of a development project, our expertise comes with key insight into the local market knowledge, the hotel industry across Asia-Pacific and sophisticated methodology and anlysis.
Some stakeholders that can benefit from reading a feasibility study include:
- Developers
- Investors
- Lenders
- Operators & Brands
- Hotel managers
- Architects
- Government
A feasibility study conducted by AP Hospitality Advisors gives you instant recognition with leading operators and investors in the region.