Development Market Studies Research and Analysis

Hospitality Marketers International, Inc. (HMI) market research and analysis studies have been performed nationwide and in Canada. Large urban markets (including downtown, suburban, and airport locations), highway markets, and small town markets have been studied for the development of luxury to budget facilities and full to limited-service hotels and resorts. Each property in each market has revealed an unparalleled twist. Universal hotel markets just don't exist!

While our approach may often follow a set research pattern, frequently adjustments are necessary to fully comprehend a subject market. We look for lodging demand and competitive lodging supply applications that will make a hotel or resort unique to the markets it serves. Even with traditional hotel concepts, we often identify niche markets that are under-served. These could be marketing advantages when a new hotel or resort is properly positioned.

Typically, our studies encompass several key areas that determine the feasibility of the proposed project. These include:

✦ Site Analysis
✦ Economic Indicators of the Proposed Property's Primary and Feeder Markets
✦ Lodging Room Demand Generators
✦ Competitive Lodging Product Supply Analysis
✦ Issues, Risks and Opportunities for Consideration When Developing the Proposed Hotel
✦ Food & Beverage for Select-Service or Full-Service Hotels and Resorts
✦ Group Meeting and Banquet Space

We analyze demand generators from a marketing perspective to fully understand the scope of the target market that will be attracted to the proposed hotel. Market segmentation models are developed for the proposed property by studying the market segmentation of the property’s competitors. Under-served market niches are identified to enable the proposed property to capture greater market share and to provide a competitive advantage.

Our previous "on-property" marketing and operational experience enables us to accurately evaluate lodging demand generation for numerous types of hotels. It is critical to know the type of lodging demand that can be expected and how it can be attracted to the proposed property. This is essential to the formulation of realistic occupancy projections and productive marketing plans for the property. We can formulate average daily room rate projections from a thorough understanding of the proposed hotel’s market segmentation. Ultimately, these projections will be developed into credible revenue projections for the proposed facility. Once these occupancy, average daily rate, and revenue models are determined, revenue projections will be operationally realistic. A developer or investor can determine the feasibility of the proposed facility to substantiate the developmental and operating expenses.

As part of our relationship with our client, HMI will also be available to answer questions that you, your investors, or financial partners may have upon review of these reports. We will provide additional research required to support our projections if necessary. At times, we find inadequate market demand or other concerns that are potential obstacles to the success of the proposed hotel. At this point, we may advise our client to curtail or redirect the market study for reasons uncovered in our market study fieldwork and research. This approach can save time and the full expense of either style of market study report in markets that are either untested or if the developer/investor is uncertain of its potential.

Our market studies can be developed in several different phases and modified to meet the specific objectives of the individual project. Upon review of the following phases, please CONTACT HMI for additional information regarding our market study programs.