Industry Update
Opinion Article 1 October 2012

What Should I Build? A Feasibility Methodology for Developers Seeking Product Guidance

By Erich Baum , Senior Vice President at HVS

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A Feasibility Methodology for Developers Seeking Product Guidance | HVS is regularly approached by developers who have control of a site and a sense that new hotel development is economically justified thereon, but who need guidance as to what product type will generate the strongest return. This article details a simple and logical methodology that can be used to determine which among a variety of brand/product scenarios are feasible, if any, and to gauge which among the feasible uses will generate the strongest return.

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What Should I Build? A Feasibility Methodology for Developers Seeking Product Guidance | By Erich Baum

HVS is regularly approached by developers who have control of a site and a sense that new hotel development is economically justified thereon, but who need guidance as to what product type will generate the strongest return. This article details a simple and logical methodology that can be used to determine which among a variety of brand/product scenarios are feasible, if any, and to gauge which among the feasible uses will generate the strongest return.
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Erich Baum

Erich Baum is a Senior Vice President with the HVS Boston office and has performed and overseen thousands of hotel appraisal and consulting assignments throughout North America, including an extensive list of assignments involving residential components and property tax appeal cases. Erich co-authored the 2001 edition of the Appraisal Institute’s hotel valuation textbook, has written numerous previous articles on issues related to hotel appraisal and consulting, and regularly serves as an expert witness.

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    About HVS

    HVS is a leader in global hospitality financial consulting. Hotel owners, developers, investors, lenders, management companies, and public agencies around the world rely on HVS to make informed business decisions. HVS's commitment to excellence and unrivalled hospitality intelligence is delivered by more than 300 people in over 50 offices throughout the world who specialize in a wide range of hospitality assets including hotels, restaurants, casinos, shared ownership lodging, mixed-use developments, spas, and golf courses, as well as conventions, sports, and entertainment facilities. For more information about HVS visit https://hvs.com.

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