Europe: +44 (0) 20 70997520
North America: +1 800-723-9051
Asia Pacific: +852 301 84908

Feasibility Study for a Modular Concept Hotel, UK

The Client

A London-based property developer focussing on large-scale modular construction solutions for developments in London.


What did Hotel Solutions Partnership achieve for the client?

HSP conducted original desk and field research in order to inform our client about local hotel supply of relevance, and to demonstrate examples of other comparable ‘site/ contractor hotel’ concepts and operations.

Based upon our own research, and analysis of published and purchased data on hotel supply and market-wide performance, we forecasted potential trading performance and operational cashflow for an evolving hotel product, assuming flexible, modular construction. We considered three phases of development over a 15 year period.


The client was seeking to develop a flexible, modular-construction hotel as part of a large urban regeneration project in East London.

Scope of Work

  1. An experienced member of HSP’ team visited the site and met with the client’s development partners, including major contractors, employers, and local authorities.
  2. HSP conducted extensive desk and field research into existing and potential supply and demand for hotels and related facilities in the area. Performance benchmarking and supply data for relevant local hotel markets was purchased and analysed.
  3. Based on original research, bespoke analysis, and our considerable experience of UK hotel development, HSP evaluated the client’s proposed flexible (modular construction) hotel concept in the context of the local market and other relevant comparable hotel products.
  4. Our team confirmed the most appropriate size and scale of hotel development, factoring in the potential to add and remove modules as the regeneration scheme evolves. HSP advised the  client on potentially successful market positioning, pricing, etc. for the planned (evolving) modular hotel, and confirmed appropriate Food & Beverage and community-use facilities and services for the proposed hotel.
  5. Our team analysed competitive market-wide data for hotel demand and supply, and for aggregate Rooms Revenue performance, for a representative competitive sample of local hotels. The proposed hotel’s potential Rooms Revenue performance relative to that defined local market was also analysed.
  6. HSP prepared independent forecasts of Income and Expense performance for the proposed hotel, following the Uniform System of Accounts for the Lodging Industry. Our projections took into account our recommended evolution of the proposed hotel, including the addition/ removal of room modules as the regeneration scheme evolves.
  7. Our team made recommendations in respect of potentially successful hotel operating models (e.g. OpCo-PropCo, Hotel Management Agreement (‘HMA’), fixed or variable-rent Lease structures, etc.), and potentially appropriate hotel brands. We made reference to comparable brands, operating models, and any specific hotels that might be of interest to the client.