Hospitality Experience
Luxury Island Resort Concept Feasibility & Valuation
Horwath HTL has undertaken an in-depth market and financial feasibility assessment together with the valuation of the proposed resort taking into consideration the significant changes that have been caused by the global pandemic since 2020 with specific focus on the key performance indicators (KPIs) of the relevant luxury resorts during 2020 and 2021 compared to 2019.
Project Scope
Our firm was engaged to assess the feasibility and valuation of a proposed luxury island resort, a high-profile project requiring a thorough understanding of market potential, operational viability, and investment returns. The client sought our expertise to provide a clear evaluation of the concept’s financial and strategic prospects to guide critical investment decisions.
We began by conducting a comprehensive market analysis, examining regional and international trends in luxury tourism, demand drivers, and the competitive landscape. This included studying the target market’s preferences, benchmarking against comparable luxury resorts, and evaluating destination appeal. Our research provided insights into guest expectations, pricing strategies, and the competitive edge required for the resort to thrive.
Following this, we developed detailed financial models to evaluate the project’s viability. The models incorporated projected revenue streams, operating costs, and investment requirements. We performed sensitivity analyses to account for variables such as fluctuating occupancy rates, seasonality, and economic conditions, ensuring the valuation reflected a realistic range of outcomes.
The concept feasibility assessment extended to operational considerations, including design and amenity recommendations to align the resort with the luxury segment. We provided strategic insights on positioning, branding, and partnership opportunities, particularly with operators and travel influencers that cater to high-net-worth travellers. These insights were supported by a clear understanding of the island’s unique features and potential to differentiate itself in the market.
The final valuation and feasibility report offered the client a clear roadmap for moving forward, highlighting strengths, identifying risks, and recommending strategies to mitigate them. Our analysis provided the client with the confidence to proceed with their vision, equipped with a robust understanding of the project’s potential to deliver sustainable returns and establish a flagship luxury destination.
