Market and feasibility studies are used in the due diligence process for new projects. We work with developers and lenders in evaluating prospective development opportunities. Market studies include research and analysis of supply and demand factors, market trends, etc. We identify sources of demand within the marketplace. Our market studies are a “boots on the ground” approach. We visit the market, interview competitive properties, and research local demand generators. Also important in the case of a hotel property, is an understanding of strengths and weaknesses of the various franchise options available. Our goal is to provide decision makers an unbiased assessment of market conditions.
Feasibility studies are generally completed in conjunction with market studies. The focus of the feasibility study is developing projections of expected cash flows as well as analysis of anticipated rates of return on invested capital.