Market & Feasibility Studies and Valuations

Our priority is to provide our clients with an unbiased and thoroughly documented professional opinion about the suitability of a market and/ or asset location for the development and/ or acquisition of a hotel.

Our studies provide a commercial investment grade instrument which can be used by our clients towards their investment decisions in development, acquisition, or financing of a hotel asset, and is recognized and highly regarded by banks, financial institutions, investors developers and hotel brands/ operators.

The scope of our Market & Feasibility Studies includes, but is not necessarily limited to, the following:

  • Analysis and economic evaluation of the market area, which includes interviews with local hotel owners and/ or operators, business and government officials.
  • Conduct inspections of the local competition – both existing and under construction or proposed hotels – to determine the competitive set of the proposed investment, including assessing the advantages and disadvantages of each competitive hotel.
  • Comment on the facilities of the proposed investment that can offer a competitive advantage against the competition.
  • Produce projections of marketwide occupancy and average room rate as well as of the proposed investment and in parallel, create a 5- or 10-year profit & loss statement for the proposed hotel, leading to a stabilized GOP and EBITDA.
  • Perform a ROI analysis, by using the net cash flows from operations against the budgeted development and/ or acquisition cost, to arrive at an expected return of investment for the client. Upon client’s request, we can produce a valuation based on the results of the feasibility study and ROI analysis, which can confirm the current value of the proposed investment and is a document that is accepted by banks, financial institutions and investors.
  • Determination of the current and the future overall market demand dynamics, which will have a direct influence on the performance of the local hotel competitive set and of the proposed investment.
  • Inspection of the site and surrounding area to evaluate the suitability for the proposed investment, taking into account the current as well as the future outlook of the neighborhood and of the local market.