
Hospitality Experience
Hotel Conversion Feasibility for Oscar Americano Building
Horwath HTL was engaged in a Feasibility Study for Converting the Oscar Americano Building on Avenida Paulista into a Hotel.
The hotel conversion feasibility study for the Oscar Americano Building focused on assessing the potential for transforming this existing property into a functional and profitable hotel. Our consultants were engaged to provide a comprehensive evaluation of the building’s suitability for conversion, including market demand analysis, financial projections, and operational considerations.
The process began with a detailed assessment of the Oscar Americano Building’s physical condition and layout, evaluating its suitability for a hotel conversion in terms of space, structural integrity, and compliance with local zoning and building regulations. We also considered the cost of required renovations and upgrades to meet the standards of the target hotel brand.
Market analysis was a key component of the study, involving a thorough review of the local hospitality market, demand drivers, and competitive offerings. This included assessing the market’s demand for hotel rooms, considering factors such as location, nearby attractions, and target customer demographics. We also analysed the pricing strategies of competing hotels to gauge the potential for revenue generation from the converted property.
Financial modelling was used to estimate the cost of conversion, ongoing operational expenses, and projected revenues. We developed detailed projections for occupancy rates, average daily rates, and revenue per available room, with sensitivity analyses to understand the potential impact of different market conditions and operational factors on profitability. The feasibility study also assessed the return on investment and the expected timeline for achieving positive cash flow.
Operational feasibility was another key consideration, with a focus on staffing, service offerings, and the integration of the hotel conversion into the local market. We provided strategic recommendations for brand positioning, service delivery, and cost control to ensure the project’s long-term sustainability and profitability.
The final report provided a clear, data-driven assessment of the potential for converting the Oscar Americano Building into a hotel, identifying both the opportunities and challenges. Our work enabled the client to make informed decisions regarding the investment and development of the property, ensuring that the conversion was aligned with market demand and operational goals.
Project Location
São Paulo, Brazil