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Hotel feasibility scorecard for Saudi Arabia: 20 questions before you commit capital
Answer yes, no or unclear to twenty questions covering market and demand, product and capital, economics and financing, and governance. The result is computed in your browser — nothing is sent unless you ask for a review.
The twenty questions
Test how ready your feasibility file is.
The questions derive from Worksheet 1 of the Investment Committee pack: each one is a fact that must hold before capital is committed. [PENDING: owner approval of the final 20 questions]
Market and demand
1. Do you have an independent demand study no older than 12 months, with quarter-versus-quarter evidence rather than a seasonal peak annualised?
2. Is the comp set named hotel by hotel, with three years of occupancy and rate data?
3. Is the new-supply pipeline in your attractive band estimated (room count and opening years)?
4. Are demand segments sized: corporate, government, religious, leisure, events, long stay?
5. Is seasonality mapped monthly, including how Ramadan and Hajj shift across the hold period?
Product and capital
6. Have room count and mix been verified with a highest-and-best-use review?
7. Is development cost per key benchmarked against market references?
8. Are land, pre-opening and financing separate line items in the model?
9. Is the FF&E reserve a realistic share of revenue from year one?
10. Are brand PI commitments and first-cycle capex priced inside the model?
Economics and financing
11. Is the stabilisation year evidenced rather than assumed?
12. Is the ramp-up built on explicit cash flows?
13. Does the downside scenario hold fixed costs flat, as they do in reality?
14. Are break-even occupancy and debt-service coverage tested against lender requirements, not hope?
15. Is debt sized by coverage rather than loan-to-cost alone, with tourism-development-fund and bank criteria established early?
16. Are fees complete in the model: base, incentive (with or without owner priority), marketing and reservations?
17. Is the exit tested at a cap rate at least 100 basis points above entry yield?
Governance
18. Does the decision memo name the top three risks and the stop-loss criteria before signing?
19. Is advisor conflict of interest disclosed in writing?
20. Is there a written commitment that no operator commissions exist anywhere in the chain?
Answer the questions above to see where you stand.
This tool is a decision aid for educational use. It is not investment advice, a valuation, or a feasibility study — engage the consultancy for a bankable analysis.