The feasibility study is, first, an assessment of a physical property to determine necessary changes to establish a viable operation for the short term. Secondly, in more broad view, the study will review potential alternatives for the Inn and Restaurant operation after a proposed major renovation.
To perform the Feasibility Study, we visit the property or potential Inn site to assess the physical viability of the project. We would determine the most efficient space utilization to meet anticipated client expectations and make recommendations about physical amenities to be included in new construction or after renovation to an existing structure. Included in that assessment would be a broad estimate of costs involved. Before issuing our report, we would discuss capital assumptions, in conjunction with developers and/or builders, to arrive at a closer approximation of costs for the project.
The study will then survey the market to determine what segments will be appropriate for the Inn. Based on that, we will develop occupancy and average room rate. From this we develop business performance scenarios, which will measure the cost effectiveness of the Inn, against a standard cost analysis, to determine an optimal future direction for the Inn. These projections will test the business viability of the project in relation to costs now and after a significant renovation.
The final result is a multi-faceted report which combines a professional assessment of future numbers established by our pro formas, which are based on current industry standards. Our fee for the study is between $3,000-$5,000.00, plus travel expenses. One half of this fee is paid upon acceptance of a contract for services and the remainder after receipt of the study. The final report will be available to you Thirty (30) days from the date of our onsite assessment.
