Hotel feasibility studies.
Before you buy the land or sign with a brand, you find out whether the project holds up.
The project test: six questions, three minutes, no sign-up.
Three levels of analysis, one for each stage of the decision.
Market Assessment
It answers yes, no or yes-but: whether the market wants your hotel, at what rate and on what conditions.
What it covers
- The verdict on the first page: yes, no or yes-but, with the reasons
- Demand: who comes to this market, why and in which season
- Supply: what already exists at your level, what is about to open and what is missing
- The competitive set and the rate band your positioning can achieve
- The two or three conditions the project depends on, written so they can be checked
- The project’s risk factors, identified before the investment
Preliminary Feasibility Study
The project in numbers, without a site visit: construction cost, expected revenue and payback period.
What it covers
- Everything in the market assessment
- Concept and positioning: how many rooms, which mix and which standard the market supports
- Indicative development cost, per room
- Stabilised revenue and an operating statement down to gross operating profit, department by department
- Ramp-up from year one to year three, payback and yield on cost
- Two or three scenarios, from cautious to optimistic, and the decisions that move the result most
Full Feasibility Study
The preliminary study checked on site, in the format a bank, a partner or an investment committee accepts.
What it covers
- Everything in the preliminary study, checked on site
- Site visit: constraints, access and orientation, and what they cost
- Interviews with operators, intermediaries and the businesses that generate demand locally
- Development cost calculated on local construction data
- Management and brand options, with the likely terms for each
- A complete ten-year financial model
How to start.
First free analysis
We reply within one business day. Then an hour with a senior consultant: we look at where the project stands and which level is enough to answer.
Market Assessment
€499, five working days. The verdict, yes, no or yes-but, is on the first page.
Decide whether to go on
If the market assessment is enough to decide, you stop there. If you need to go deeper, you move to the next level.
What does a hotel feasibility study cost?
The final price depends on how much has to be gathered before the study can be written, and we agree it before we start. Four things move it.
The market
A city with published data, or a destination still being built.
The concept
A single hotel, or a complex with several revenue lines.
The scenarios
One plan, or several hypotheses compared.
The fieldwork
At the desk, or on site with primary research.
Common questions.
How much does a hotel feasibility study cost?
The market assessment costs €499, the preliminary feasibility study starts at €3,500 and the full study at €7,500. The final figure depends on the market, the concept, how many scenarios are compared and how much work happens on site, and we agree it before we start.
How long does it take?
Five working days for the market assessment, fifteen for the preliminary feasibility study. The timing of the full study depends on how much has to be gathered on site, and we agree it before we start.
What is the difference between the market assessment, the preliminary study and the full study?
The market assessment tells you whether the market wants your hotel and at what rate. The preliminary study puts the project into numbers: construction cost, stabilised revenue, gross operating profit, payback. The full study checks everything on site and becomes the document a bank, a partner or an investment committee accepts.
How is a feasibility study different from Profit Performance?
A feasibility study is for a hotel that doesn’t exist yet, before capital is committed. Profit Performance is for a hotel that is already open: it measures the distance between what it produces today and what it could produce.
Where does DolceVita carry out feasibility studies?
In Italy and Saudi Arabia, from the office in Milan.
The project’s viability, tested before the investment decisions.
The first analysis is free: an hour with a senior consultant, to see where the project stands and which level is enough to answer.