Hospitality Experience

Feasibility Study of Luxury Eco-Touristic Hotel

Horwath HTL was engaged to conduct a feasibility study for a proposed luxury eco-touristic hotel in Huatulco, Oaxaca, Mexico.

The objective was to evaluate the market potential, operational feasibility, and financial viability of the project, ensuring its alignment with Huatulco’s unique position as a sustainable tourism destination and its appeal to high-end eco-conscious travellers.


Project Scope

Horwath HTL was engaged to conduct a feasibility study for a proposed luxury eco-touristic hotel in Huatulco, Oaxaca, Mexico. The objective was to evaluate the market potential, operational feasibility, and financial viability of the project, ensuring its alignment with Huatulco’s unique position as a sustainable tourism destination and its appeal to high-end eco-conscious travellers.

The study began with an in-depth analysis of Huatulco’s tourism market, focusing on its nine pristine bays, natural reserves, and status as a certified sustainable destination under EarthCheck. Key demand drivers, such as its appeal to environmentally conscious international and domestic visitors, its growing recognition for luxury and eco-tourism, and its limited supply of high-end accommodations, were assessed to determine market opportunities for the proposed hotel.

A competitive benchmarking analysis was conducted to compare the proposed project with existing luxury and eco-touristic properties in the region and beyond. Factors such as average daily rates (ADR), occupancy trends, and guest preferences were examined to identify market gaps and opportunities for differentiation. The study highlighted the potential for a property that integrates high-quality accommodations with sustainability-focused amenities and experiences.

Operational recommendations emphasised the importance of incorporating sustainable design and operational practices, such as the use of renewable energy, water conservation systems, and locally sourced materials. The hotel’s concept was tailored to include immersive guest experiences, such as guided eco-tours, wellness programmes, and culinary offerings that showcase Oaxaca’s rich culture and biodiversity.

Financial modelling was a critical component of the study, projecting revenues, operational costs, and returns on investment (ROI) under various scenarios. Sensitivity analyses were included to ensure the financial projections accounted for market variability and operational risks, providing a robust and realistic outlook.

The final deliverable was a comprehensive feasibility report, presenting actionable insights, market recommendations, and financial projections. The report provided the client with a clear roadmap for successfully developing and positioning the luxury eco-touristic hotel to meet market demand and deliver strong financial returns.

By delivering a detailed and forward-looking analysis, Horwath HTL supported the client in creating a project that aligns with Huatulco’s sustainable tourism values, enhancing the destination’s reputation as a premier location for luxury eco-tourism.

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