The worldwide hotel industry is a part of the hospitality industry that specializes in providing customers and patrons with lodging services. Both leisure and business travels have seen constant growth year-over-year for the past five years, even amidst the pandemic. The hotel and resort industry has greatly benefitted from this influx of travelers worldwide. The expanse of the hotel industry is limitless, from airport hotels, to bed and breakfasts, resorts, and even capsule hotels, which are relatively new, and numerous other varieties of hotels around the world.

Suffice to say that this is a multi-massive industry that doesn’t seem to have any plans of slowing down in the near future. Now, starting a venture as big as a hotel is not as easy as it seems. There’s a lot of factors to consider and frankly, competition is just all over the place. So before you undertake such a project, you have to make sure first that you are set to succeed, we don’t want your hotel to fail shortly after its opening.

3+ Hotel Feasibility Report Samples

1. Hotel Feasibility Report Sample

File Format
  • PDF

Size: 5 MB


2. Hotel Financial Feasibility Report

File Format
  • PDF

Size: 4 MB


3. Standard Hotel Feasibility Report

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  • PDF

Size: 1 MB


4. Professional Hotel Feasibility Report

File Format
  • PDF

Size: 6 MB


Feasibility reports ensure that you take the right direction for your new venture. It shows the potential problems you might encounter and the best way to work around it. You might have troubles in writing a feasibility report, but luck for you, we’re here to help. Check out these hotel feasibility report samples that you can use as reference or templates to help you draft your own.

What Is a Hotel Feasibility Report?

Feasibility reports are studies conducted by developers and investors to analyze and come to an optimal product to gauge the maximum penetration of the market. It also investigates the performance and the rate of return of the venture. Feasibility reports determine the cost of projects, justify the investment of resources, and establish the best approach to maximize profit. For a developer, a successful project is one that meets the developer’s objectives. Writing a hotel feasibility report looks at several key areas like costs and financing, competition, market demand and projected growth.

Drafting a hotel feasibility report is especially important for potential and current investors as it can show how they can position the project for maximum return on investment. Taking a feasibility exercise can help shine a lot of light on the current trends on the market, what threats you may encounter along the way and what countermeasures you can take to give your project the best chance of success.

How to Write a Hotel Feasibility Report

A hotel feasibility report leans more on to the aspects of the project related to the physical property, the local area where your hotel will stand, market analysis and several others. Regardless of project size, and scope, there are several key aspects to consider when drafting a feasibility report specific for the hotel business. Let us review the key aspects in detail below.

  1. Local area and economy

    Analyzing the local area and economy gives a wider perspective of the area the hotel will operate within, the economic, social, environmental, and governmental makeup of the location will also be investigated. The analysis will also look at the local tourist attractions and transport links, population trends and household economics. Your hotel project is meant for the long term, you have to ensure that the business compliments the community around it and its employment needs can be supported by the locale. Your business will also rely on the local area for ongoing revenues, and those expectations need to be made by realistic data and statistics from the market.

  2. Site review

    The site review takes a look at the land, buildings, and structures all around the site, including electrical, water, sewage, and other local utilities. Whether the site is suited for a project of your size, traffic and roadways, physical restrictions, nearby amenities that compliment the type of hotel you are going to build, local and governmental restrictions and zoning laws that might hinder the project or might require you to place additional building requirements.

  3. Proposed development cost

    This looks at the physical size of the project and associated requirements. This part also weighs the financial difference between developing the project independently or working within a franchise or a partner. This is quite an interesting section of a hotel feasibility report as it usually works hand-in-hand with the project’s architectural partners or at least on similar projects that have been recently developed.

  4. Proposed occupancy

    This projection is closely linked to the projections of income that is based on the likelihood of number of rooms being occupied seasonally. This section uses data from historical performances of similar projects in the area.

  5. Market analysis

    Market analysis looks at critical factors like how much a room is expected to earn based on the target market, market growth, local population, competitors in the area, and other hotel proposals that may compete with your project.

  6. Financial analysis

    This is a really critical section of the report because all potential investors will rely upon this information to determine if the project is a worthwhile investment or not. This projects the income to be generated, budget expenses, considerations, profit and loss projections, and operating income over the set period.

  7. General analysis

    This section serves as the conclusion of your report. It brings together all the above elements to assess the viability and feasibility of the project. Basically, it answers the question, is the venture profitable in the long term?


What is feasibility study in hospitality industry?

Feasibility studies are conducted to analyze market penetration, performance, and the product’s internal rate of return.

Why is the hotel industry important?

Hospitality businesses provide customers with a positive experience as opposed to their counterparts who offer a less pleasant experience. The hotel industry provides lodging, food, and other amenities that travelers may need.

What is the meaning of hotel industry?

The hotel industry is the section of the hospitality industry that deals with providing guests with accommodations or lodgings. It refers not only to hotels, but also to other forms of overnight accommodation like hostels, motels, inns, and resorts.

Hotel feasibility reports are exhaustive and takes quite a lot of effort to design, and it is such for a really good reason. It gives you, the developers, and investors a very clear picture regarding the costs involved, whether the return on investment is desirable and if the project is feasible or not overall. It is best be informed of these decisions in advance rather than jumping in the industry blind only to find out that the project won’t work. You will only have invested time and resources for little to no return. Feasibility studies are always beneficial as it gives a clear picture of the project and the parameters set to ensure its success.

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