10 Key Steps Every New Resort Developer Must Follow
Developing a new resort can be an exciting yet challenging endeavor. Ignore critical steps, and you risk creating a non-performing asset. Read on for the 10 must-follow steps for new resort developers.
1. Identify Your Target Market Segment
Pinpoint the specific market segment your proposed resort will cater to. Is it mass market, boutique, high-end, mid-market? Fully understand the segment and why you want to enter it. Ensure it’s large enough and has sufficient margins to justify entry.
2. Select the Optimal Site
TheHYPE Lembongan
Ensure the location, development density, height constraints match your target market’s expectations. If you already have a site, re-assess if it aligns with the intended segment. When searching for a new site, find one that will resonate with your audience.
3. Engage an Experienced Hotel Management Company
Unless you’re an expert owner-operator, partner with a hotel management company that specializes in your niche. Assess their interest, experience and proposed terms before committing.
4. Research Performance of Comparable Resorts
Collect key data like average room rate, occupancy percentage and operating expenses for similar nearby resorts. Get accurate current year figures, not projections. Visit in person and build rapport with staff.
5. Determine Your Cost of Capital
Validate that your investors’ return expectations are realistic. Conduct due diligence to establish your cost of capital upfront, rather than hoping the market will meet expectations later.
6. Create a 10-Year Financial Feasibility Study
Prepare a long-term cash flow projection to account for the uncertainty and risks in resort investments. Stress test assumptions through sensitivity analysis.
7. Establish a Detailed Development Budget
Use the feasibility study results to set a development budget covering land, construction, FF&E, professional fees and operating capital.
8. Select the Right Design Team
Appoint an experienced resort architect to establish the overall vision and tone. Vet and choose interior, landscape designers and other consultants diligently as well.
9. Design Within the Set Budget
Collaborate closely with the design team to extract maximum value from the concept without exceeding the budget. Keep the hotel management company looped in throughout.
10. Carefully Manage the Development Budget
Continuously monitor the budget during planning, design and construction. Be prepared to value engineer and make trade-offs if required.
Following these steps will lead to a successful resort development that meets your target market’s expectations and provides a sound return on investment. Let me know if you would like me to draft content for any other sections or topics related to your resort development project.
Conclusion:
Planning a new resort development is complex, but following these 10 key steps will set you on the path to creating a profitable asset that delights your target guests. Conduct thorough upfront planning and analysis, choose the right partners and consultants, design smartly within budget, and manage the process closely throughout. What steps have you found most crucial for new resort developments? Let me know if you need any assistance bringing your own resort plans to fruition.
Next Steps:
– Conduct in-depth market research on your target segment
– Start compiling a list of suitable sites and evaluating options
– Research potential hotel management partners and design consultants
– Begin drafting a feasibility study and development budget
– Connect with me to discuss how I can support your resort development plan
Thank you!
Bert Bykes @ Contact
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Tags: Indonesia Resorts | Resort Development | Resort Planning | Beach Resorts | Eco-Tourism Resorts