What is the purpose of a hotel feasibility study?

The purpose of a hotel feasibility study is fundamentally to assess the viability of a proposed hotel project. This comprehensive analysis evaluates various factors critical to the success of the hotel, including market demand, competitive landscape, financial projections, and site considerations. By conducting a feasibility study, stakeholders can determine whether the project is likely to be profitable and sustainable in the long term, ensuring informed decision-making before significant investments are made.

In contrast, determining daily operational costs, evaluating customer satisfaction, or measuring staff morale, while important aspects of hotel operations and management, do not specifically address the viability of a new project. These options focus on ongoing operational issues rather than the initial assessment of a project's potential for success. Thus, they do not fulfill the primary aim of a feasibility study, which is centered on the strategic evaluation of the proposed hotel concept itself.