Hotel Feasibility

Powerful solution designed to cater for the specialised nature of hotels

The Hotel Feasibility module can analyse the feasibility of a hotel development, model hotel revenues and operational expenses, calculate a discounted cash flow, run sensitivity analyses and generate detailed summary reports.

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Hotel Feasibility 

Key features

Acquisition appraisal

Determine the optimal acquisition price of a hotel, factoring in acquisition and development costs, financing and its forecasted operational cash flow.

Cash flow forecasting

Calculate the income generated from hotel services and associated costs through a stabilisation and operations period.

Hotel performance reporting

Calculate key hotel performance indicators: Profit and Loss, NPV, IRR, Yield and Return on Capital Employed.

Sensitivity testing

Analyse the sensitivity of hotel performance to various factors such as Occupancy Rate, ADR, RevPar, GOP and Acquisition and Development costs.

Scenario analysis

Run multiple options by adjusting key variables to determine the best development mix and financial outcome for the hotel development.

Management fee options

Model different management fees and incentive options for the hotel operator, using a flat rate or yield-based sliding scales.

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