Hotel Feasibility & Profitability Analysis
A profitability calculation for a hotel determines the economic viability and expected return of the property. The result of such an analysis is a comparison of potential revenues and expenses to assess the feasibility of a project and its economic success. This objective basis enables investors, operators, and lenders to make informed investment decisions.
When Do You Need a Profitability Calculation for Hotels?
When planning a new business (e.g., a hotel or restaurant start‑up), we analyse the achievable revenue structure, taking into account the targeted turnover and associated costs. This analysis is typically prepared for a defined period, usually three to five years. In addition to new hotel developments, profitability calculations are frequently required in other situations, including:
- the acquisition of existing hotel properties (e.g., through purchase, sale, or lease)
- transaction negotiations during the sale of a hotel
- restructuring and turnaround consulting for hotels and tourism properties
- conversions of existing buildings into hotel use
Hotel Experts Rely on Solid Data
To ensure that there is no business‑critical gap between projected and actual hotel performance, a reliable data foundation is essential. For the profitability calculation, we analyse current market information, relevant benchmarks, and trends in the hotel industry. Based on this, we prepare independent reports that forecast future developments, present them in financial models, and evaluate their implications.
You receive a transparent presentation of all collected data and its sources, along with a detailed explanation of the mathematical calculations. This allows for straightforward plausibility checks of the results.
For the long‑term success of your project, we recommend implementing the action steps we develop for you. In addition, these measures should be reviewed regularly by experts through hotel appraisal reports, such as target‑actual comparisons.
Do You Have Questions About Our Services?
We would be pleased to demonstrate the expertise and capabilities of our hotel valuation specialists. For further information, you can reach us by phone at +49 176 4884 62 90 or via our contact form.