MARKET FEASIBILITY STUDIES FOR HOTELS, RESTAURANTS & LEISURE CLUBS

A market feasibility study provides a realistic appraisal of the market available for a new or existing business and culminates in a financial assessment of the revenue opportunity set against probable development and operating costs.

The resulting financial forecasts can be used to:

• Appraise the chance of trading success,
• To test different development scenarios and
• To raise funds from external sources OR compare the potential return on internal investment

CMA is experienced in undertaking market feasibility studies for hotels, conference centres, restaurants, health and fitness clubs and food based retail operations.

What the Market Feasibility Study involves

Each study is targeted to the individual needs of the particular project. However most of the following steps will be involved:

• Overview of the general economic background in the market area
• Appraisal of existing levels of demand,
• Review of additional market opportunities and revenue streams that may be available,
• Analysis of competitive supply, both quantitative and qualitative,
• Review of the proposed location relative to sources of demand and competitive supply,
• Evaluation of the market opportunity
• Estimates of revenues and operating costs
• Preparation of Estimated Statements of Revenue and Expenditure, usually for the first five years of operation and including the development period.

CMA is one of the very few consulting firms with an in-house demographic system able to create local and regional demand estimates based on national research data. The benefits of this system will be applied where relevant.

The output is a concise relevant report that can used to raise funding, address development issues, assist in the development of project plans and, most importantly, identify how the profitability of the planned project can be maximised.