The Market & Feasibility Study of The Future
Encouraged to see that some hotel school graduates will have a working knowledge of Market and Feasibility Studies via their classroom work and participation in STR’s Student Market Study Competition. Today’s investors and lenders want assurance that the sections sandwiched between the first and last sections – the Executive Summary and the Five-Year Estimates of Operating Results validate the author’s estimates and projections. These in-between sections that have historically provided immaterial (by today’s standards) information such as population and traffic counts are being overshadowed by market information and data that is more significant. “Walkability” to shopping, dining, and entertainment venues in some cases is more important than visibility and access from an interstate. The reader of the report wants to see an overview and comparison of the competition including supply and demand growth and not just a competitive set list. Impact and encroachment issues effecting a client’s preferred brand is becoming increasingly important. The content of the in-between sections of today’s studies should be leading up to and justifying the forward-looking projections and estimates found in the last section.