Feasibility Study
Detailed/Techno Economic Feasibility Report (TEFR) to assess the Economic viability of a project and a detailed and descriptive projection of how the facilities and services will be perceived by end-users. For the purpose of this assignment our overall work delivery will be segregated into three phases.
Our Project feasibility reports are fully compliant with banks and can be used for discussions with brands, banks and other lending institutions.
A property’s site location, its orientation, visibility and accessibility within a specific key demand area can have a direct impact on the overall development potential and its capacity to perform consistently over the long term.
During the first phase of engagement, through a comprehensive review process, we will undertake an extensive survey of the site/property to evaluate the highest and best use of the land and its suitability for the type of development. The physical orientation of the property with respect to access to the local demand areas will also be analyzed. We will also undertake physical inspection and evaluate the market orientation of existing and proposed projects in the market area as required and determine their competitiveness with the proposed projects and get a detailed understanding of their performance, demand segmentation, feeder markets and client demographics, as available.
In Phase II, through comprehensive market area analysis, review of travel and tourism related developments, market segment growth trends and forecasted demand-supply scenario prevailing in the market place, we will establish the capacity of the proposed hotel or Resort development to achieve market penetration and generate income.
We will also include Recommendations on Proposed Facilities Plan, Development Strategy, Concept Development and Demand Validation, Development Cost Estimates, 10-year P&L Projections, Project and Equity IRRs and RoI scenarios and undertake detailed financial validation for the proposed project. The financial validation and the market valuation provided in the study, along with market performance outlook will enable you to determine the feasibility of the project and finalize the positioning, facilities, size and scale of developments.
Our documentation and reporting for the feasibility report will be done in a presentation format consisting of 30-40 slides for the project and will adapt a dynamic macro-to-micro evaluation approach and would contain comprehensive details on the following:
- Overview
- Economic Overview
- Key Economic Indicators
- Future Market Potential
- Tourism Overview
- Regional Market Overview
- Regional Market Overview
- Key Industries & Demand Drivers
- Market SWOT Analysis
- Competitive Development Market Overview
- Competitive Development Market Performance
- Market Segmentation Analysis
- Market Segments Growth & Room nights Forecast
- Additions to Market Supply & Market Supply Forecast
- 10 –year Market Demand, Supply & ARR Forecast
- Proposed Resort Development Market & Rate Penetration Analysis
- 10 year Projections of Occupancy & ARR Estimates
- 10 year Projections of F&B Revenues
- Projections of Income & Expenses –Assumptions
- Development’s 10 –year P&L Projections
- Actual Values
- Percentage Values
- POR & PAR Values
- 10 – Year Consolidated Income Statement
- Key Ratio Analysis
- Project & Equity IRR Analysis
- Investment Returns Analysis
- Estimate of Open Market Value
Current F&B to Rooms business ratio of competition Hospitality Developments