Overview

Several large hotel & hospitality groups have engaged ODIN360 to conduct feasibility and demand studies for potential hotel developments and refurbishments across sites in popular coastal location (Sunshine Coast, Noosa, Mornington ) and in the suburban regions of Melbourne. The projects aimed to assess visitor demand and identify any gaps in the local accommodation market. The studies considered the viability of new or adding or upgrading accommodation offerings at existing hospitality venue.

Deliverables

• Market opportunity and demand analysis for each location
• 10-year revenue forecasts for proposed new/upgraded accommodation
• Indicative construction cost estimates
• Recommendations on room numbers, types and positioning
• Analysis of competitive advantages and key success factors
• Identification of planning considerations and next steps

Outcomes:

Some studies validated strong market demand and financial viability for new upper-midscale to upscale accommodation across locations. Whilst others advised against the locations due to weak demand. For the recommended project, projected revenues within 3 years of opening we identified. Synergies with existing operations, cost efficiencies in development and operations, and strategic land holdings were also considered.

The analyses provided a solid foundation for the clients to progress to more detailed design, costing and planning phases. Recommendations included conducting pre-planning meetings with councils, developing detailed financial models incorporating ancillary revenue, and engaging quantity surveyors for refined construction estimates.

Overall, the studies demonstrated significant opportunities for the clients to expand their accommodation portfolio in certain high-demand markets. But importantly identified those that were not high demand.