3. Free Online Research Tools
Social media platforms and a lot of new marketing websites evolve around the location. You can find maps on travel websites like Google Hotel Finder, HipMunk, Booking.com and TripAdvisor.
The average price level per star rating for each area over the year is derived by you from these maps. You will get a valuable insight into the revenue potential of a hotel in each part of town by this price index. It will be noticed by you that especially when you are on the border of the town, sometimes just 2 blocks can have a large impact on price.
As an example it can be stated that the hotels which are really within the actual official town are included by OTA in their general listings and in this list, hotels located in municipalities are not always included, even though it is just across the street. You will see a large decrease in demand if your hotel location is not part of the main listing of the destination. Therefore, you must be careful about the fact that you are on which street.
We can get valuable insight into the process of valuation of the location of luxury hotels around your possible location by consumers. This insight you can get through new social media platforms and review websites like TripAdvisor, Yelp and Zoover plus and guest reviews on the OTA. You would be limited from the start as to how high a score you could achieve if the scores are too low. That is why these scores should be taken into consideration.
There are also some other important conditions which are:
Is a hotel allowed considering the zoning of the location? Or can it be easily changed if it doesn’t?
Do the site have utilities like sewer, water, electric, gas (optional) available?
Can enough hotel rooms including suite rooms be constructed to reach a healthy ROI considering the size of the land?
Can the building or land be bought or leased by you? And in return for equity in the hotel business, would the owner consider exchanging part?
In the area, how many hotel rooms including premium rooms currently exist? Has success been gained by these hotels? Are they “mom and pop” businesses or chain affiliated?
In the immediate area, how many new hotels and rooms are planned for development?