Developing a viable hotel concept relies on careful market analysis. In the initial stages of the project it is vital to determine the hotel’s category, which will decide the level of infrastructure required at the property.
When developing a new hotel concept, the following factors must be considered:
Creating an effective business plan for a new hotel can prove an expensive and resource-intensive exercise. However, it is vital to ensuring the long-term success of a new hotel. Owners must, in advance, decide on the market segment and the target customer, to determine costs and to develop operational strategies designed to drive profitability.
The main difference between a hotel concept and other forms of commercial real estate is that the former is designed to appeal to visitors, not tenants. This may simplify the development of the concept, but identifying a target audience for the hotel can often prove challenging.
Four key parameters should be considered when developing a concept:
Based on the results of this analysis, the owner can determine the hotel’s star rating, guestroom inventory, location, price category, services and more.
TFG Asset Management has vast experience providing consultancy services to some of the UAE’s most respected hotel owners and operators. We will develop a comprehensive conceptual plan that is designed to ensure your hotel operates efficiently and cost effectively from the date of launch, while ensuring your long-term vision for the property is realised.