What a feasibility study analyses in this sector
- Destination demand analysis
- Occupancy & average daily rate
- Seasonality impact on cash flow
- Room & facility mix
- Operating & management model
Examples of tourism projects we study
Hotels of every category, beach resorts, serviced apartments, eco-lodges, desert and tourist camps, diving and activity centres, tourist restaurants, and tour-operation and tourist-transport companies.
What does a tourism feasibility study analyse?
- Tourism demand: visitor numbers and origin markets, length of stay and spending patterns at the destination, and growth trends.
- Occupancy and rates: expected monthly occupancy, average daily rate and revenue per available room, benchmarked against competing properties.
- Seasonality: the gap between peak and low seasons and its effect on cash flow and staffing.
- Site and facilities: the number and type of rooms, restaurants, leisure facilities and meeting space that match demand.
- Construction and fit-out: building, finishing, furnishing and equipment costs, and the time to opening.
- Operating model: self-operation versus a management contract with a hotel operator, and how each option affects revenue and costs.
- Licensing: the requirements of the tourism regulator and the property’s classification.
Key risks in tourism projects
Tourism is exposed to external factors such as regional conditions, airfares and shifting destination preferences, and long construction periods raise financing costs before any revenue arrives. We therefore present results under several occupancy scenarios and calculate the minimum occupancy that covers operating costs and debt service.
What to prepare before the study starts
It helps us to know the location and size of the plot or building and its approved building parameters, the category or star rating you are aiming for, the preliminary number of rooms or units if already set, whether you prefer self-operation or a management contract, and the capital and expected financing sources. Any preliminary designs or layouts also help us estimate construction and fit-out costs more precisely and set a realistic timeline to opening.
How SCOOP helps
We study the destination and competitors, recommend the room and facility mix that fits demand, build monthly operating and financial projections that reflect seasonality, and prepare the study for negotiations with operators or lenders.
FAQ: feasibility studies in the Tourism & Hospitality Sector
How is occupancy estimated in a hotel feasibility study?
We use destination demand data, the performance of competing properties and the positioning of the proposed hotel to build monthly estimates that reflect the seasons, under conservative, base and optimistic scenarios.
Does the study compare self-operation with hotel management companies?
Yes. It shows the effect of each option on revenue, costs and management fees, to help you choose the right model.