The land owner of a southern island resort planned to develop a luxury hotel. Their interest was in potential hotel volume on the site, in pursuit of high ROI. Also, a five-year operational forecast was requested.
At Hospitality Directions, we presented the following three deliverables:
■Volume blueprint
Although the land was already approved for development, we researched the ratios of building coverage and floor area. Also, confirming whether a relaxation of restrictions was feasible, we proposed the potential maximum site plan. Because it would be a luxury hotel on an ocean resort, we paid attention to creating extraordinary ambience and planned all rooms with an ocean view—including many villas in addition to the main hotel buildings—and iconic garden pools.
■Five-year operational forecast
Based on the volume blueprint, we formulated a project outlay including the land and construction costs, and necessary initial investment costs, such as FF&E. We studied the market characteristics and competitors’ data like occupancy rates and average daily rates to forecast operations for five years after opening. According to our forecast, the GOP ratio would be secured at over 30% after the opening year. We concluded that this project would be a highly profitable development.
■Recommending the most appropriate operator
Market research showed that the area in question is very popular with wealthy travelers from a specific Asian country. We negotiated with an international operator that is strong in marketing—especially in that country—and recommended them to the owner. Hospitality Directions will support building a project structure for the opening in two years. When construction starts, we will direct and oversee the development’s progress by selecting a project manager and necessary consultants.
A Comment from Hospitality Directions
We were able to propose a very realistic volume blueprint and forecast, thanks to the fact that the land was already approved for development. Furthermore, we utilized our network and introduced the most appropriate operator to our client.
