The Essential Elements : Demand / Supply - Markets / Location

Scoping the development model is based on:

    1. The Concept Meeting the Demands of the Market
    2. The Viability of the Business Meeting the Expectations of the Investor

Evaluating the options is critical:

    • Hotels - Luxury to Limited Service Models
    • Resorts - mixed use alternatives
    • Serviced Apartments - The Optimum Configurations
    • Branded Residence - A  residential / hospitality combination


In 2008 the GFC was a catalyst for change both positive and negative. The commercial accommodation sector was the recipient of the benefits of change. Hotels especially have undergone many innovative changes for the better including brand demarkation and operating formula structures.



A feasibility study is the place to start as this is the roadmap for the investment journey . The research provides the important drivers to validate demand and its impact, that include demographic and the socio - economic report ,  location analysis , competitive set survey , potential categories, brand / operator relevance and financial forecasts all essential from the commencement of the project.



A minimal increase in supply over the past decade have market dynamics heavily in favour of demand. Supply is dependent on funding terms and requires the investor to have predetermined financial viability reports of the project. Supply has been stifiled for funding and the lack of forecasting at the concept stage is a reason. Deloitte reports that “ hotel occupancies and room rates push further into record territory nationally, and across many individual markets. Nationally , room rates and RevPAR are forecast to continue to grow at above average pace over the next 3 years at rates of 3.4% p.a and 4.5% p.a., respectively. 



An increase in supply in hospitality accommodation is dependent on the viability of the target markets and their impact on demand . The validation and strength of theses target market segments ,corporate , leisure , international , conference , meetings and functions  is an essential  research element . In tandem, the competitive set report  requires specific consideration to ascertain potential occupancies and rates that is and may be achieved in the future. 



The location capability, under the analysis of demographics,socio economic conditions , commercial / industrial/ residential content, urban / rural / regional areas, and transport infrastructure are essential in the feasibility study. With a supply shortage in CBD ,high profile surban and  regional growth areas the potential exists for the next generation development cycle to commence.


Authentication of the Model

Along with the feasibility report accurate research will deliver the appropriate accommodation segment, style , category , services and facilities, inventory density , potential branding and financial forecasts to ensure the project development has the market edge and point of difference. 

See “Centels” in the “News site”