New Hotel Project Due Diligence
The professionals at Charlestowne Hotels have experience successfully developing and opening over a dozen new hotels from branded economy segment to luxury, four-star quality. They understand that the key to success for a new lodging establishment is to give due diligence to the project’s fundamentals.
Charlestowne Hotels’ first step in due diligence is to perform a market analysis to understand the competitive environment. Who are the customers, and what are the market segments? That is then followed with a strategic analysis to identify which customers are underserved and what is the correct market tract and scale for the new hotel.
In subsequent steps, they assist hotel developers in product & brand development, correct sizing and programming of the proposed space, and determine the type of organization that should be formed to operate the hotel. These steps combined with the intelligence gathered in the market and strategic analyses enable creation of a pro forma for use in making a final evaluation of the hotel project’s merits and for use in making presentations to lenders and investors.