Hotel Development: Are Better Feasibility Studies Actually Feasible?

Demian Hodari | August 3, 2020

By Dr Demian Hodari Hotel development is a complex and expensive process involving multiple stakeholders with unique and often conflicting objectives. Since investors, operators, lenders and consultants all use distinct criteria to evaluate a hotel’s projected value, they may green-light projects that are unlikely to satisfy the other parties' financial goals. In order to minimize such subjectivity, investment in a new hotel’s development is typically preceded by a feasibility study, the stated purpose of which is to provide the relevant stakeholders with the information and analysis necessary to estimate the project's financial viabil...