Hospitality Experience

Feasibility Study for Proposed Hermosillo Midscale Hotel

Horwath HTL was retained to conduct a feasibility study for a proposed midscale hotel in Hermosillo, Sonora, Mexico.

The objective was to assess the project’s viability, providing the client with actionable insights into market demand, competitive positioning, and financial performance to guide their decision-making process.


Project Scope

Horwath HTL was retained to conduct a feasibility study for a proposed midscale hotel in Hermosillo, Sonora, Mexico. The objective was to assess the project’s viability, providing the client with actionable insights into market demand, competitive positioning, and financial performance to guide their decision-making process.

The study began with a detailed analysis of Hermosillo’s market dynamics, focusing on key demand drivers such as its status as an industrial hub, its proximity to major automotive and manufacturing operations, and its role as the state capital. The study examined patterns in business travel, regional tourism, and government-related activities to establish the primary sources of demand for midscale accommodations.

A competitive analysis was conducted to benchmark the proposed hotel against existing and planned properties in the midscale segment within Hermosillo. Key performance metrics, including occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR), were evaluated to identify gaps in the market and potential areas for differentiation.

Operational considerations were a key focus, with recommendations tailored to ensure the hotel’s design, amenities, and service offerings aligned with market needs. Strategies to attract business travellers, such as the inclusion of flexible meeting spaces and efficient digital connectivity, were emphasised. Branding and marketing approaches were also reviewed to position the hotel effectively in the local and regional markets.

Financial modelling formed a critical part of the study, projecting the hotel’s revenue, expenses, and profitability under various scenarios. This included an analysis of development costs, operational efficiencies, and potential risks, providing a realistic and comprehensive view of the project’s financial viability.

The final deliverable was a comprehensive feasibility report, offering strategic recommendations and financial projections. This report equipped the client with a clear understanding of the project’s potential and a roadmap for successful development.

Through a rigorous and data-driven approach, Horwath HTL ensured the proposed midscale hotel in Hermosillo was positioned to meet market demand, achieve operational efficiency, and deliver long-term success.

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