Risk Reduction: Feasibility studies are designed to reduce risks related to hotel investments. They provide an in-depth assessment of whether a proposed hotel is financially viable before significant capital is committed.

Project Assessment: The study analyzes various factors, including the location of the property, assessing the site’s suitability and accessibility.
Local market: Understanding demand, competition, and market trends.
Competitive landscape: Identifying other hotels in the area.
Economic conditions: Considering economic stability and growth prospects.
Demographics: Evaluating the target customer base.
Regulations: Complying with legal requirements.
Costs, revenue, and return on investment: Estimating financial projections.

Stakeholders: Feasibility studies benefit different stakeholders:
Prospective owners and investors: Helps them decide whether to proceed with the investment.
Banks and lenders: Assesses projected financial returns for financing decisions.
Developers: Understands project costs and justifies involvement.
Hotel Operators: Determines operational viability.