Market and Feasibility Study of a Midscale Resort – Union of Comoros, Indian Ocean
Office: Horwath HTL London
Scope of work: Horwath HTL was approached to provide independent expert advice and ascertain the feasibility through a detailed market and financial evaluation of a proposed 30-key beachfront midscale hotel development on the island of Grande Comore.
Description of project:
The hotel was part of a wider project related to expansion of the tourism sector in the Union of Comoros. The proposed site had previously had a hotel on it but this had closed down and been demolished some years before. Part of our work involved understanding why the previous hotel had closed and whether there was indeed a commercial case to be made for the proposed new venture.
This was a difficult project to assess due to the fact that the tourism sector in the Comoros was still in its infancy and the consequent lack of airlift.
We concluded, however, that subject to certain conditions, including the opening of new air routes, there was potential to develop a viable hotel and as a result of Horwath HTL’s analysis of the local hotel market and the subject site, we recommended the development of a larger scale hotel with additional facilities, which was more likely to generate profits for the developer.
Project Status: The client later decided that it should develop a mid-market 35-key hotel initially, with a view to expanding to 70-keys once business picked up.