Determining the Investment Potential of a New Hotel

objective, and rational process whereby marketing and financial data are collected, assimilated, and analyzed. The purpose is to determine whether or not to proceed with the project under investigation, define the optimum scope and quality of its facilities, and quantify its prospects for financial success or failure with reasonable accuracy. These words define the analyst’s objective. This article’s main purpose is to present a typical feasibility study outline for a new hotel and to list sources of information helpful in such analyses. As an introduction, a few general principles on the completion and presentation of hotel feasibility studies are discussed.