
Hospitality Experience
Market Analysis, Concept Refinement and Financial Feasibility Study
At the time of our study, demand for accommodation in the Dar es Salaam market was derived primarily from the mid-tier corporate and meeting segments rather than the higher-yielding up-market corporate and leisure segments.
Project Scope
Horwath HTL was tasked with conducting a market analysis, concept refinement, and financial feasibility study to evaluate the potential development of a five-star quality yet affordable hotel in Dar es Salaam. At the time of the study, the city’s accommodation demand was predominantly driven by the mid-tier corporate and meeting segments, with limited presence in the higher-yielding up-market corporate and leisure segments.
Our objective was to test the commercial viability of the proposed hotel by examining the size and characteristics of the mid-tier corporate and meeting market segments. Through detailed market research, we identified key demand drivers, analyzed occupancy trends, and evaluated competitive positioning within these segments. This analysis provided critical insights into the prevailing market conditions and future growth opportunities.
In collaboration with the client, we refined the project concept to align with market demands. This involved determining the optimal mix of facilities and services that would cater specifically to the needs of mid-tier corporate and meeting travelers while maintaining affordability. Our recommendations encompassed room configurations, meeting spaces, dining options, and other amenities likely to appeal to the target market.
The financial feasibility study quantified the potential returns on investment by integrating market insights with financial modeling. This included revenue projections, operating cost estimates, and profitability analysis, providing the client with a clear understanding of the project’s financial prospects and strategic positioning. The study served as a guiding document for the client in moving forward with their development plans.
Project Location
Dar es Salaam, Tanzania