A feasibility study tests whether a hotel project stands up commercially and financially. We analyse the location, the competitive environment, demand generators and segmentation, seasonality, price positioning and the hotel’s functional programme — then test the concept against the business metrics: investment cost, projected performance, return and the value an investor can realistically expect.
We combine this with the choice of concept, brand and operating model and a ten-year projection: the ADR and occupancy ramp-up, departmental costs, GOP, IRR and payback. Projections follow USALI, the international accounting standard for the hotel industry. The result shows whether the project should proceed, which assumptions need to change and where the attention should go. Our studies have repeatedly supported successful financing applications with Polish and international banks.