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What Is Hotel Project Feasibility Analysis?

November 10, 2020

Hotel Feasibility Studies

Feasibility studies are conducted by developers to analyze and confirm the optimal product to maximize market penetration, performance and the internal rate of return on investment (ROI) for the product’s intended holding period. It is generally undertaken to provide objective and reliable information for the decision whether or not to pursue the project.

Developers undertake feasibility studies to determine the cost of projects, justify the investment of resources, and establish the approach to maximize profit until project exit. Separate analyses are frequently undertaken by lenders, operators and investors.

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