CHALLENGE
Our client wished to consider the feasibility of a variety of holiday accommodation options across a number of their reservoir sites in the East of England.
SOLUTION
We carried out a visit to five sites before presenting a detailed yet concise feasibility study including:
- Consideration of national tourist accommodation/lodge/glamping market conditions
- A competitor analysis for each site looking at other relevant local and national businesses in terms of their offer, pricing and promotion in order to identify best in class, occupancy rates (where available) and the nature/levels of competition
- Consideration of the various sites, setting out their strengths and weaknesses
- Working with the client’s appointed architects, we defined the nature and scale of the development at each site and facilities/services required
- Recommendations on an appropriate pricing strategy
- Consideration of leasehold model vs. short term holiday rental where appropriate
- Consideration of various glamping and lodge types and potential suppliers for each site
- Set out a high level estimate of capital costs for each site including units, typical infrastructure costs, furnishings and any added value facilities
- Headline 5 year income, cost and profitability projections and likely return on investment for each site
- General:
- High level sales and marketing plan
- Commercial relationships with external letting agencies
- Licences, Insurance and Health and Safety considerations
- Staffing requirements
- Summary recommendations, suggested phasing strategy and next steps.
RESULTS
After discounting one site, we have been instructed to further investigate the viability of four sites and our proposed accommodation schemes. The Savills Planning team are simultaneously carrying out desktop appraisals before the projects are progressed.