The hotel conversion feasibility study aimed to assess the viability of transforming an existing property into a hotel, focusing on market demand, financial performance, and operational feasibility. Our consultants were engaged to conduct a comprehensive analysis of the building’s potential for conversion, providing data-driven recommendations to ensure the project’s success.

The process began with a thorough evaluation of the property, considering its physical condition, layout, and compliance with local regulations. This involved assessing the building’s suitability for hotel use, including the required structural modifications, space configurations, and necessary upgrades to meet the brand’s standards and guest expectations. We also identified the cost of renovations and estimated the time frame required to complete the conversion.

Market analysis was a central element of the study. We conducted a detailed review of the local hospitality market, including demand drivers, customer preferences, and the competitive landscape. This analysis helped determine the target market for the hotel, assessing factors such as the demand for business, leisure, or extended-stay accommodations, and identifying gaps in the existing hotel supply that the converted property could fill.

Financial modelling was integral to understanding the investment required for the conversion and the projected financial returns. We developed detailed projections for capital expenditure, operational costs, and revenue generation, based on factors such as expected occupancy rates, room rates, and revenue per available room. Sensitivity analyses were performed to understand the impact of potential market fluctuations, operational risks, and changes in demand on the property’s profitability.

Operational considerations were also assessed, including staffing, service offerings, and operational efficiency. We recommended strategies for integrating the hotel’s services with the local market, ensuring that the conversion met the target customer’s needs while maintaining high levels of operational efficiency.

The final feasibility study provided a clear roadmap for the hotel conversion, including detailed financial projections, renovation requirements, and market positioning recommendations. Our work helped the client assess the project’s risks and opportunities, providing the necessary insights for making informed decisions about the conversion process and ensuring long-term financial success.

Project Location

São Paulo, Brazil