Development & Asset Management
Case Study Title
AIC Coastal Resort Feasibility Study
Albanian Investment Construction (AIC) based in Tirana, Albania is an established construction company focusing on residential, commercial and infrastructure projects. As AIC were not experienced in hotels and hospitality, they required specialist advice on the scale and type of development that would be appropriate on their site.
HSP were asked to provide a Feasibility Study comprising a Market Study, Concept Study, and Investment Appraisal for a beach front site measuring approx. 17,000 sqm located on the Golem coast (10-15km from Durres).
Comprehensive Feasibility Study to inform the design and development process.
Scope of Work
Our team of 3 consultants included feasibility, market, and design experts. Our assignment was delivered in 3 phases:
Phase 1 – Market Study
Our market specialist gathered supply & demand research, acquired and then analysed market performance data. The team visited the site to understand the site’s potential, constraints, access, market environment and to map competition. They established price/quality positioning for the proposed hotel and projected the property’s likely average daily rate and occupancy levels. They also identified likely target segments and the business mix for the hotel, and proposed USPs (unique selling points) to be incorporated in the design.
Phase 2 – Concept Study
Our design expert identified the ideal size, number and types of rooms, determined the number and type of restaurants and bars and advised on the requirement for meetings and events facilities. Our study also proposed operator and branding options and included preliminary concepts aimed at establishing a brief, verifying site capacity, describing the site layout, flow of guests and service. We also provided an area programme showing total square metres for development by type of use.
Phase 3 – Investment Appraisal
Our feasibility expert prepared a capital expenditure budget based on assumed developed square meters and a parametric estimate of construction and fit-out cost (given the category and positioning of the hotel to be developed). This was dpme in conjunction with the Client and their architect. Develop financial models showing cash flow before taxes.
What HSP achieved for the client
Our team undertook field research and interviews with government, travel sector representatives and benchmark hotels to understand current and future hospitality infrastructure, and to identify gaps in the market. Various concepts were explored to determine the ideal fit for the Client’s site. This was supported by financial projections to determine the viability of the proposed hotel development. The feasibility study leveraged our team’s expertise and global network to identify a pioneering leisure concept for the location and for the country. We also introduced the Client to leisure operators and investors.