Hospitality Experience
Feasibility Study for International Business Class Hotels
Horwath HTL was engaged to conduct a feasibility study for two proposed international business class hotels in Guadalajara, Jalisco, Mexico.
The objective was to assess the market potential, operational requirements, and financial viability of these developments, ensuring they align with the city’s role as a major economic and cultural hub.
Project Scope
Horwath HTL was engaged to conduct a feasibility study for two proposed international business class hotels in Guadalajara, Jalisco, Mexico. The objective was to assess the market potential, operational requirements, and financial viability of these developments, ensuring they align with the city’s role as a major economic and cultural hub.
The study began with an in-depth analysis of Guadalajara’s hospitality market, focusing on its status as a centre for commerce, technology, and cultural events. Key demand drivers, such as corporate travel, trade shows, and conferences, were examined to evaluate the potential for business-focused accommodations. The study also considered the city’s growing reputation as the “Silicon Valley of Mexico” and its impact on business travel demand.
A competitive analysis was conducted to benchmark the proposed hotels against existing business class properties in Guadalajara. Metrics such as occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR) were reviewed to identify market gaps and opportunities for differentiation. The study highlighted the potential for modern, tech-enabled properties with amenities tailored to business travellers, such as flexible meeting spaces, co-working facilities, and efficient digital connectivity.
Operational recommendations were developed to ensure the hotels meet the needs of international business travellers while maintaining operational efficiency. Strategies for branding, service offerings, and marketing were tailored to position the properties effectively within the competitive landscape.
Financial modelling was a critical component of the feasibility study, projecting revenue streams, operating expenses, and returns on investment (ROI) for both hotels. Multiple scenarios were evaluated to provide a robust financial outlook, accounting for market fluctuations and operational risks.
The final deliverable was a comprehensive feasibility report, including actionable recommendations, market insights, and detailed financial projections. This report provided the client with a clear roadmap for the successful development and operation of the two business class hotels.
By delivering a data-driven and strategic analysis, Horwath HTL supported the client in planning properties that address Guadalajara’s evolving business travel market, ensuring their long-term success and competitiveness in this dynamic urban environment.