Initial position

A hotel was to be established in a mid-sized city in Rhineland-Palatinate. The city administration and those responsible for tourism had already tried for some time to realise the establishment of a hotel and to date, had been unsuccessful. Additionally, from the side of the local companies and conference and conventions organisers, it could be heard that capacity bottlenecks quite frequently existed. Now, a local project developer who was already in contact with a possible operator wanted to realise the hotel. Necessary to that end, he had compiled a feasibility study and submitted a financing inquiry.


The bank inquired upon was not able to fully and comprehensively understand the profit forecasts positioned within the reports. HOTOUR was requested to assess, in its own opinion, whether or not the present reports met with plausibility and if so, in which conception and with what revenues would a new hotel in the city be profitably realisable.


First, an inspection of the report as well as the forecasts by the potential operator occurred. It was quick to see that the market and location analysis on whose knowledge is usually based on the conception and calculation was carried out only cursorily. Derivations from the decisions taken were incomplete or were totally absent. Therefore, the experts with HOTOUR had to conduct their own market investigations. First, a location and competitor assessment and talks with the city administration, those responsible for tourism, the largest conference and conventions organisers as well as other relevant market participants and potential consumers occurred. With computer software, the accommodation statistics were analysed for the city and the region and further investigations were conducted regarding the tourist and economic specific features and potentials of the city.

HOTOUR provided a comparison of the generateable overnight stays with the market growth in connection with the overnight stays necessary for the hotel to be a profitable operation. It was obvious that there was a clear gap between the realistic methods attainable and the required overnight stays that particularly lay with the too highly set number of rooms. The planning was additionally evaluated in view of its functionality and alternate use options and was commented on.


The results showed that the planned hotel in the city was to be effectively justified, but indeed, with a smaller number of rooms than originally planned by initiator. HOTOUR accordingly adapted the rough conception by the project developer on the basis of their new economic efficiency forecast whose results demonstrated an effectively attainable lease. With this, all project partners received a dependable calculation base and the financing opportunities for the project developer were clearly increased. The negotiations between the financing bank, investors and the project developer are underway at this time.