Feasibility & Market Study

We prepare complete feasibility and market analysis studies which serve as the foundation to any comprehensive business plan, and includes detailed profit and loss statements, break-even analysis, business sales projections estimates for three scenarios: worst-case, best case, and most-likely, and business pro-forma and expense statements for the first five years of operations, as well.
Matrix also carries out specific strategic hospitality studies on behalf of clients and financial institutions and prepares audit recommendations on how to enhance profitability and cash-flow in a running entity. We will give individual attention to your hotel where we will examine its viability, operations, scales, brand, suitability of the site for development and detailed performance projections.
Our feasibility study is a detailed look at the market, the position of the hotel and projection of its operation and performance to ten year stable trading, the scale/positioning of the product and the economic business case to justify the investment.
Each project is different but in general terms the feasibility study will include:

• Sensitivity Scenario Model: this looks at the impact of a range of scenarios, which includes performance, financing, variable costs and many others, with the aid of detailed P&L sheets and other statements. This has been exceptionally well received from the funding community and developers. A key parameter we explore in this exercise includes interest cover on the development debt. This is a key assessment of the scheme’s viability from a banking perspective and speeds up the time credit committees take to evaluate a project for funding.
• A detailed mystery shopper is a market research exercise that intends to scope demand from key user groups such as local corporate set, conference and event’s organizers, hotel booking agents and coach and tour operators. Each aspect of the hotel is considered and placed in a micro and macro context.
• The market area is examined in detail in terms of current economic and tourism figures through examination of key trends and statistics.
• The market area is examined in detail in terms of current economic and tourism figures through examination of key trends and statistics.
• Interviews are held with key regeneration, tourism and planning personnel to determine other developments in the area including regeneration schemes and future hotels planned.
• A visit to the site to audit for access, visibility and relationship to major demand generators.
• Detailed operating projections for all aspects of the hotel facility over a Five year period to EBITDA with operational assumptions.