Hospitality Experience
Feasibility Study for Historic Forchtenberg Mill Conversion
The town of Forchtenberg engaged Horwath HTL to conduct a comprehensive evaluation and site assessment for a proposed hotel development at the dilapidated Kochermühle site.
The historic core of the town with its medieval old town, including the mill, is a listed building. Since the 1970s, Forchtenberg has succeeded in redeveloping its town center, including its historic ambience, while at the same time building up a good infrastructure. Accordingly, the town is considered a prime example of the successful coexistence of the old and the new.
The intention of the sellers and the client is to preserve the mill as a part of Forchtenberg with access for the inhabitants. The Office for the Protection of Historical Monuments is in favor of renovating or converting the mill into a hotel.
Project Scope
This feasibility study included a detailed plausibility assessment of the lease terms and a value indication for the proposed project. The scope of work encompassed a location analysis, market and competition analysis, SWOT analysis, product concept creation, and a profitability forecast.
The project began with a location analysis to assess the Kochermühle site’s suitability for a hotel development. Factors such as accessibility, proximity to demand generators, surrounding infrastructure, and local attractions were examined to determine the site’s potential to attract various guest segments.
A market and competition analysis followed, focusing on identifying target markets and evaluating the performance of existing hospitality offerings in the region. This step helped define the competitive landscape and highlight opportunities for differentiation.
The SWOT analysis provided a structured evaluation of the proposed development’s strengths, weaknesses, opportunities, and threats. This assessment ensured that the project’s strategic direction aligned with market realities while addressing potential risks.
Based on the findings, a tailored product concept was developed, aligning with the site’s characteristics and market demands. The concept included recommendations for room configurations, amenities, and service offerings designed to appeal to the target audience while achieving competitive positioning.
Finally, a profitability forecast was prepared, incorporating lease plausibility and value indication. Revenue projections, cost estimates, and return-on-investment scenarios were modelled to provide a clear financial outlook for the proposed hotel.
The study delivered actionable insights, equipping the city of Forchtenberg with a robust foundation to make informed decisions regarding the Kochermühle site’s hotel development potential. This project underscored a meticulous approach to evaluating and planning hospitality ventures in unique locations.
Project Location
Forchtenberg, Germany
