Hotel Feasibility Study: Market Analysis & Financial Viability

A hotel feasibility study is the most critical tool for identifying success factors and potential risks at the earliest stages of a project. This analysis evaluates the specific location as well as the current market, demand, and supply dynamics. By forecasting all essential cost and expense items, we determine the financial viability of your hotel project. This objective data serves as a reliable foundation for investors, operators, and lenders to base their investment decisions.

When is a Hotel Feasibility Study Essential?
Whether you are expanding an existing property or planning a new venture in the hospitality sector, a feasibility study helps identify sustainable target segments and their revenue potential. Our studies are conducted by IHK-certified hotel experts whose specialized experience ensures sound conclusions regarding the economic implementation of your project.
 
Strategic Insights for Investors and Operators
Different stakeholders have different priorities. Investors need to ensure that future rental or lease payments are sustainable over the long term. Operators, on the other hand, focus on profitability and scalability—including market penetration, cost optimization, and marketing synergies. We offer three tiers of feasibility analysis tailored to your needs:
 
  • Feasibility Study – Short (Market & Location Analysis): A concise analysis highlighting the potential of the location and market. Ideal for an initial assessment of the site and the general market environment.
  • Feasibility Study – Basic: This study determines the general economic viability of a hotel project, providing a solid foundation for internal decision-making.
  • Feasibility Study – Complete: A comprehensive evaluation of detailed financial viability. It includes an in-depth mapping of all potentials and risks, serving as the primary document for financing negotiations and management agreements.
New Developments and Existing Assets: Risk Mitigation
The hospitality industry is highly competitive, and many market segments are reaching saturation. New hotel concepts must be cohesive and align with current target group expectations. Before breaking ground, all potential risks must be identified. Our IHK-certified experts evaluate market and location factors to determine the actual demand in the region and the specific requirements for management and operations.
 
Expert Guidance for Informed Decisions
Sustainable economic decisions require comprehensive data. Our experts understand the nuances of the hospitality market and evaluate projects based on years of technical expertise. We determine if an investment is worthwhile and if the project will likely be profitable through detailed supply and demand analysis. In some cases—such as the takeover of existing properties, the conversion of a building into a hotel, or large-scale renovations—it may be beneficial to conduct a profitability calculation prior to the full feasibility study. Our team provides professional support throughout this entire process.
 
Do you have questions or require a personal consultation?
In addition to feasibility studies and expert valuations, we offer specialized hotel consulting and coaching for investors and operators. We look forward to demonstrating our expertise.
 
Contact our hotel experts at +49 176 4884 62 90 or via our Contact Form.