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Spanish Islands Feasibility Study


The Client

The client is a property development company created to create environmentally and socially designed developments.

What did Hotel Solutions Partnership achieve for the client?

HSP initially presented a detailed Market Study report to the Client which showed that an upper upscale resort (international 4/5 star) comprising c.140 keys (guestrooms) and 20 villas would be viable on the island.

Based on these market findings, we then delivered a Concept Study and Financial Appraisal. Working closely with the Client’s team and appointed architects, we completed the Feasibility Study, which concluded that with correct market positioning the resort was a viable business proposition.

The client subsequently commissioned HSP to conduct an Operator Search and Selection  process.



The client owns an island development site and wishes to assess the viability of a resort  development on a stand-alone basis and/or also incorporating a residential component within the development.

Client Need

Hotel Solutions Partnership (“HSP”) were asked to prepare a Hotel Feasibility Study, to comprise three components: a Market Study; a Concept Review; and a Financial Appraisal

Scope of Work

Phase 1 – Market Study

Two members of the HSP team visited the proposed resort site to conduct field research to understand the site potential, constraints, access, market environment, and to map competition.   Our team analysed market performance data for a selected competitive set of hotels in the local area.

Our team submitted a market study report explaining our market findings and our recommendations with respect to potentially successful market positioning and target client mix.

Phase 2 – Concept Review

Based on our findings in the market study, HSP developed the following for the proposed resort development:

  • Massing study
  • Functional Area programme
  • Planning framework and comment on planning permission
  • Generic construction costs
  • Background briefing documents where relevant
  • Room size, rooms mix and other facilities.
  • Sustainability framework

In addition, our team provided comments and broad recommendations for potentially successful alternative resort options, for example a smaller, full-service boutique hotel; food and beverage-led concepts; or leisure-led concepts. We identified some USPs, which can be incorporated in further design iterations.


Phase 3 – Financial Appraisal

Informed by the market study, HSP established price/quality positioning for the proposed resort, and projected likely average daily rate and occupancy levels.

We prepared a five-year forecast of income (with year 3 being anticipated as the first expected year of stabilized operations) and expenditure based on the current design.

The forecast, which showed Gross Operating Profit and Net Operating Income, was prepared in accordance with the Uniform System of Accounts for the Lodging Industry, the standard reporting method applied by the hotel industry.

We prepared a simple unleveraged pre-tax ROI based on stabilized year earnings.