Certified Hospitality Manager (CHM) Practice Exam

A hotel feasibility study is an essential process used to assess the viability of a hotel project before investment and development. Its primary purpose is to analyze various factors such as market demand, competitive landscape, location attributes, and potential financial outcomes. By evaluating these elements, developers, investors, and stakeholders can determine whether the proposed hotel project will be successful and sustainable in the long term.

Conducting a feasibility study involves extensive market research that looks at current trends, customer demographics, and the behaviors of both potential guests and competitors. This analysis helps identify opportunities and risks, ensuring that the project aligns with market needs and investor expectations. Ultimately, the study informs decision-making processes related to financing, design, and management strategies before any significant resources are allocated.

While monitoring guest satisfaction levels, analyzing employee performance, and calculating financial returns are important aspects of hotel management, they do not relate specifically to the initial assessment of a proposed hotel project, which is the focus of a feasibility study.