Defining The Optimal Development Strategy Before Investment Begins
The Hotel Feasibility Study service by Savills Hotels enables developers and investors to determine the most effective development concept for hospitality projects through in-depth analysis of market dynamics, business models, product segmentation, and management structure.
Purpose Of A Hotel Feasibility Study
A hotel and resort project feasibility study helps determine market potential, financial viability, and the most suitable development strategy to meet investment objectives.
Savills Hotels delivers a comprehensive analytical report, combining real market data with expert insights to ensure the project is strategically planned and sustainable in the long term.
We conduct an in-depth study covering site assessment, surrounding market analysis, development scenarios, and detailed cash flow modeling, while also providing recommendations on product positioning, operator selection and management structure, as well as key investment parameters.
Scope Of The Hotel Feasibility Study
Savills Hotels Feasibility Study covers all essential analytical components to evaluate a hospitality project comprehensively:
Market Study
- Demand Analysis: Provides a comprehensive assessment of market demand, including target customer segmentation, domestic and international market composition, and seasonal factors influencing accommodation trends.
- Supply analysis: Existing inventory & pipeline, competitive benchmarking.
- Performance indicators: ADR, Occupancy, RevPAR, average guest spending, and length of stay.
Development Scenario Analysis
- Establish alternative concepts such as hotel, resort, serviced residence, villa, or mixed-use.
- Compare performance across scenarios based on occupancy, average rate, revenue mix (rooms, F&B, ancillary).
Financial Modelling And Cashflow Analysis
- Model CAPEX, OPEX, revenue, NPV, IRR, and payback period.
- Conduct sensitivity testing to assess risk exposure on pricing, occupancy, and capital cost.
- Present transparent financial assumptions and break-even thresholds.
Development Recommendations And Positioning
- Define product positioning, target market, and brand alignment.
- Propose detailed room mix, layout, amenity programming, and operational standards.
- Recommend management structure (operator selection/management contract) and investment phasing.
Comprehensive Feasibility Report
- Summarise market analysis, preferred development scenario, strategic recommendations, and financial forecasts.
- Provide bankable documentation for financing, operator negotiation, and planning submissions.
Post-Feasibility Support (Optional)
- Assist with operator selection, preparation of tender briefs, or preliminary lender negotiations.
Key Benefits For Developers And Investors
Engaging Savills Hotels for a hotel feasibility study delivers measurable value:
- Define the optimal investment scenario aligned with market realities and target returns.
- Mitigate development risk through evidence-based validation of financial and market assumptions.
- Support bankable financing with transparent, data-backed financial models.
- Accurate product positioning to maximise ADR, occupancy, and ancillary revenues.
- Actionable implementation plan covering pre-opening, soft launch, and commercial operations.
Who Should Use This Service
- Developers and landowners assessing project feasibility prior to acquisition or design approval.
- Investment funds, banks, and lenders require detailed project assessment for financing decisions.
- Hotel operators evaluating potential partnerships or management opportunities.
Why Choose Savills Hotels
- Hospitality expertise: A dedicated Savills Hotels team with deep understanding of key hospitality metrics (ADR, RevPAR, Occupancy) and operational benchmarks.
- International methodology: Aligns with Savills Global standards and transparent financial modelling practices.
- Integrated advisory platform: Collaboration across Research, Valuation, Project Management, and Hotels Advisory to deliver actionable insights.
- End-to-end support: From concept validation to operator negotiation and funding advisory.
