Developing a hotel project is a long and capital-intensive journey, during which some of the most important decisions are made long before the first shovel hits the ground. The foundation for a successful project is laid during the analysis phase, when the market, demand, and financial aspects are thoroughly examined, ensuring that the investment is based on documented knowledge rather than gut feelings.
A hotel project built on a thorough data foundation is stronger throughout the entire process, whether you are an investor or developer focused on returns, or a municipality or destination management organization seeking to boost tourism in the area. We have extensive experience in meeting the needs of both sides, and it is precisely this dual perspective that is a strength in our dialogue with investors and lenders, authorities, and operators—and when it comes to translating the concept into profitable operations.
Market Analysis as the Foundation for the Hotel Project
A market analysis determines whether the project is actually viable. It examines demand in the area, the competitive landscape, market segments, and seasonal patterns, as well as the expected trends in both occupancy rates and price levels. The insights from the analysis are translated into concrete assessments of capacity, room mix, and revenue potential. For municipalities and destination organizations, we also include assessments and recommendations for initiatives that can strengthen the tourism strategy and thereby attract and retain overnight stays in the area.
The result is a basis for decision-making that enables informed “yes” or “no” decisions and, at the same time, helps define the project’s scale, profile, and positioning before capital and development resources are committed.
From Analysis to Concept and Business Model
Once the potential has been documented, the analysis must be translated into a viable project. This involves selecting a concept and target audience, determining the scale of rooms, F&B, and other facilities, and developing an operational economic model with realistic budgets and key performance indicators.
This phase also clarifies the appropriate operating model, whether it involves in-house operation, leasing, a management agreement, or a franchise. This choice has a significant impact on the project’s risk profile and return on investment and should be made based on both market conditions and the owner’s strategy.
Who We Typically Help
We advise municipalities, destination organizations, and foundations seeking to develop tourism in their area—typically with a focus on how the municipality or destination can secure its fair share of the positive growth currently characterizing Danish tourism. We also collaborate with investors, real estate developers, and builders who are considering or are in the process of hotel and lodging projects, as well as with existing hotels planning expansion or repositioning.
Contact us for an assessment of your hotel project
Are you considering a hotel project, or do you want to strengthen your decision-making foundation before moving forward? We offer actionable analyses and consulting throughout the entire project lifecycle, from concept to opening.
Book an initial meeting at +45 5130 7581 or email troels.rasmussen@tnhospitalityadvisors.com.