Hotel property development : a framework for successful developments

Abstract

Although there are similarities between hotel and other commercial property developments in terms of land, structures and services, it is important when developing hotels to understand that they have unique characteristics. These unique characteristics are that hotels require specific management expertise, are usually a “single-use” property, whose primary revenue is generated from a service-based industry, and has a market value that is directly related to its ability to generate future net income. The essence of successful hotel property developments lies in understanding these unique characteristics, as illustrated in the dissertation literature review. In addition, the dissertation identifies various critical success factors for hotel development which in turn is incorporated into a hotel property development framework, establishing a practical ‘road map’ for successful hotel developments. The literature review incorporates a wide range of hotel topics, such as the principles of a hotel business, fundamentals of the tourism industry as a motivator for hotel development, property development in general, hotel property development, strategic hotel management, hotel property development feasibility studies, hotel market analysis, financial feasibility, risk management of hotel developments, financing of hotel property developments, the project team and consultants, the design phases, and finally the construction phase. The dissertation empirical study tests the validity of the hotel property development framework, by presenting it to and questioning hotel development professionals in intensive direct interviews.