Evaluating the market potential and economic feasibility of a new venture prior to making a major financial commitment is an essential aspect of sound decision making by management. An independent and objective evaluation of a new project is essential to obtain equity and/or loan financing or a franchise or management agreement.

Our client may be an individual developer or a worldwide corporation. Regardless of the scope, the feasibility study involves an assessment of the potential demand and earnings prospects for that specific project.

Also, we frequently advise on the best economic utilization of property which requires an extensive market survey to evaluate the potential of many diverse forms of development.

Depending on the client's requirements, a feasibility study might involve any or all of the following :

• Site analysis in relation to potential sources of demand.
• Analysis of demand for the proposed services in the market area.
• Quantitative and qualitative evaluation of existing and proposed competition.
• Evaluation of the general economy of the area.
• Study of the area's existing and proposed airline, highway and other transportation systems and area development plans as related to the proposed project.
• Conclusion as to the need for the proposed facilities, the number and type of rooms to be constructed, the size and type of dinning and function facilities, and other amenities to be included in the project.
• Critique of estimates of income and expenses predicated on varying business volumes for the rooms and food and beverage facilities ; incorporating our estimates of the occupancy  levels, room rate structure and food and beverage business potentially attainable ; and perform sensitivity analyses.
• Preparation of estimated cash flow projections and analysis of economic feasibility by relating the potential operating results to the required capital investment based on land valuation ; construction costs ; the cost of furnishings ; fixtures, and equipment ; and the term of financing.
• HBC - Specialists in Hotel Openings

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