Hotel feasibility study and market research
Before you spend crores on a building, find out whether the market will fill it. A feasibility study gives you an honest answer and a plan your bank will read.
- Demand and competition research on the ground
- Room count, facilities and positioning
- Ten-year financial projections and returns
- Owner-side only
- Paid by hotel owners, never by brands or vendors
- 100+ hotel projects
- Advised across India
- 50+ hotel brands
- In Amit’s working network
- 40+ cities
- From metros to tier 2 and 3 markets
What a hotel feasibility study answers
A feasibility study is the cheapest insurance a hotel owner can buy. It costs a small fraction of the project and answers the questions that decide everything that follows: is there enough demand in this location for a hotel; what kind of hotel will capture it; how many rooms, at what rate and occupancy; what will it cost to build and open; and what will the owner earn, year by year, after paying the operator, the staff, the bank and the taxes?
Done properly, it also tells you what not to do. Amit has advised owners to build fewer rooms than they planned, to add banqueting space instead of a spa, to aim for a midscale brand rather than an upscale one, and occasionally not to build a hotel at all. Each of those conclusions saved the owner far more than the study cost.
Amit’s studies are written for two readers: the owner, who needs plain conclusions, and the lender or investor, who needs evidence and assumptions they can test. The same document serves both.
What the study contains
- Site and location review Access, visibility, surroundings, plot potential and approvals.
- Demand analysis Corporate, leisure, MICE, wedding, transit and pilgrimage demand, with the sources behind each.
- Competitive supply Existing and upcoming hotels, their rates, occupancy and positioning, from site visits not just websites.
- Recommended concept Positioning, brand segment, room count and mix, F&B outlets, banquet and meeting space, recreation.
- Area programme A space budget for the building that the architect can design to.
- Development cost Hard and soft costs, pre-opening expenses, working capital and contingencies.
- Financial projections Ten years of revenue, operating costs, fees, EBITDA, debt service and returns, with sensitivity tests.
- Recommendations A clear conclusion and next steps.
Why on-the-ground research matters in Indian cities
Published hotel data in India is good for the big metros and thin almost everywhere else. In cities such as Deoria, Bokaro, Bhilai or Bhuj, there may be no reliable statistics on occupancy or rates at all. That is exactly where many of today’s best hotel opportunities are, and where desk-based studies go most wrong.
Amit’s team fills the gap with field work: visiting competing hotels, talking to their managers and to the companies, wedding planners and travel agents that send them business, counting cars in banquet car parks on a Sunday in season. The result is a picture of demand that reflects how the city actually works.
Sensitivity, not optimism
Every projection rests on assumptions, and a good study shows what happens when they turn out wrong. Amit tests the plan against lower occupancy, lower rates, higher construction costs and a delayed opening, so that the owner and the bank can see how much room for error there is before committing.
Hotels Amit has advised
Every tag is a real hotel. Sarovar, Clarks, Lemon Tree and more, across six states.
How long does a hotel feasibility study take?
Typically four to eight weeks, including site visits and market research. Simpler projects in familiar markets can be quicker.
Will banks accept your feasibility study?
Studies are prepared to the standard Indian banks and NBFCs expect for hotel project finance, with clear assumptions and sensitivity analysis. Amit can also present the study to lenders.
What if the study says the hotel will not work?
Then it has done its job. Amit will explain why and, where possible, suggest alternatives such as a smaller hotel, a different segment, a banquet-led concept or a different use for the site.
Do I need a feasibility study if a brand is already interested?
Yes. A brand’s interest tells you the brand wants a contract, not that the hotel will make you money. An independent study protects you in the negotiation.
Can you do a feasibility study for an existing building?
Yes. Conversions of commercial buildings, heritage properties and older hotels are common, and the study includes a review of what the building can accommodate.
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Amit reads every enquiry himself and replies within one working day.
- Owner-side only: no fees from brands or vendors
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