Investing in a hotel project without proper feasibility and / or market studies and analysis can jeopardized the investment. It is essential that before investing in a hotel project one should determine the feasibility of such a project. MTEL supports its clients by conducting studies in the following major areas for new or existing hotel projects:
- Feasibility Studies
- Market Research
- Repositioning Study
Feasibility Studies establishes whether market support for the proposed project in general and the facility in particular exist. Our feasibility studies are typically comprised of two components: a market study and financial analysis. The market study includes current and future supply and demand estimates, facility recommendations and optimum franchise affiliation, and occupancy and room rate projections for the specific project. The financial analysis includes preparation of estimated operating results for the project under review, as well as a preliminary valuation estimate.
Market Research includes demographics research of target market segments; selection criteria used by target users, pricing structures and market positioning of the facilities; and operating or financial trend analysis. Market research is conducted through a number of formats and can include focus groups, written surveys, and personal interviews, as well as use of secondary information and studies prepared for the industry and/or specific market. From here, quantitative analysis is prepared to develop market-based conclusions and recommendations.
Market Repositioning can assist you in identifying an appropriate repositioning of your hotel to maximize its potential operating and financial performance over the long term and ultimately enhance the value of your asset. The study includes:
- Identifying an alternate franchise affiliation
- Developing recommendations for restructuring room rates, pricing of products, services and facilities;
- Improving the image of the product through marketing collateral and channels of distribution;
- Changing the product's physical structure or appearance through refurbishment or renovation, increasing market penetration; and
- Analyzing the impact of any of the foregoing changes
A cost benefit analysis is typically prepared whereby projections of operating performance and financial results are developed under alternative scenarios in order to test and verify the most appropriate course of action based on market research and study findings.
Contact us or give us a call to learn more about how you and MTEL can help you achieve the top tier in your competitive set.