Specifically, the review aimed to determine the most commercially viable hotel concept for the location, assess demand potential, benchmark performance expectations and evaluate its highest and best use.

This was not a standard feasibility exercise; Horwath HTL acted as a trusted advisor, working iteratively with the family office to refine the scope and ultimate output, ensuring recommendations aligned with their commercial objectives and the evolving local market.

Two alternative schemes were proposed:

• A compact room format with a higher key count, designed for short-stay, price-sensitive travellers.
• A standard room size with fewer keys, intended to appeal to a broader guest profile including leisure couples and business travellers.

By comparing these options, the client sought to validate the opportunity, optimise design and positioning and establish a foundation for operator engagement and investment appraisal.

Project Scope

• Market Analysis: Assessment of demand drivers, competitive landscape and development pipeline in South London.
• Scheme Review: Evaluation of proposed layouts, room sizing and facility mix against market norms.
• Performance Projections: Forecast occupancy, ADR and RevPAR for each concept, supported by benchmarking.
• Financial Modelling: Five-year P&L and cashflow projections, including departmental revenues, costs and EBITDA margins.
• Development Pricing Assessment: Indicative GDV based on market comparables and cap rate analysis.
• Sensitivity Testing: Scenario modelling for pricing and yield assumptions.
• Soft Market Testing: Informal discussions with selected hotel brands to gauge interest in compact and midscale formats.

The review delivered a comprehensive framework for decision-making, enabling the client to understand the strategic implications of either proposed concept. It clarified how different room formats influence operational efficiency, guest segmentation and market positioning while highlighting the trade-offs between density and comfort.

By fully understanding the client’s commercial objectives, refining the scope and outputs and working seamlessly with the client’s other advisors, the report provided a clear view of demand fundamentals and competitive dynamics in South London, illustrating where the opportunity lies for a differentiated, design-led hotel product. It also established indicative financial performance benchmarks and pricing ranges, giving the client confidence to progress with the development.

Project Location

London, United Kingdom