Development · June 2026 edition
The Five Decisions That Make or Break a Hotel Development
HOLLISMERE Hospitality Advisory · Published 16 September 2026 · 2 min read
A hotel development is a sequence of connected choices. An attractive site does not automatically support the intended concept, and an appealing concept does not remove delivery or funding risk. Reviewing the connections early can reveal problems while there is still room to change direction.
1. The site and its real demand drivers
Assess access, visibility, planning constraints, utilities and the guests who would have a reason to stay. Distinguish existing demand from demand that depends on another project or infrastructure improvement.
Test the concept against the site’s limitations as carefully as its attractions. A location may be excellent for one operating model and unsuitable for another.
2. The concept and operating proposition
Define the intended guest, service level, room mix and supporting facilities. Challenge whether each facility contributes to guest appeal, revenue or the overall positioning sufficiently to justify its space and cost.
Keep the design brief connected to an operating model. A compelling visual concept still needs practical circulation, service areas and maintainable equipment.
3. The operator and commercial agreement
Assess the operator’s relevant capability, distribution, staffing model and reporting practices. Examine the proposed agreement alongside the financial model rather than treating the two as separate workstreams.
Clarify responsibilities, performance expectations and decision rights with professional legal advice. Brand recognition alone is not a complete assessment of alignment.
4. Funding and delivery resilience
Build a cost and funding plan that recognises construction uncertainty, opening delays and the period required to establish trading. Consider downside scenarios and the timing of cash needs, not only the headline development return.
Agree who can approve changes and how the team will report emerging cost or programme risks. A contingency is only useful if its use is visible and controlled.
5. Pre-opening readiness
Plan recruitment, training, systems, procurement and commercial launch activity early enough to support the opening date. Practical readiness extends beyond completing the building.
Use a clear readiness review before opening: people, rooms, systems, safety, suppliers and guest communications. Identify the consequences of a phased opening rather than assuming unfinished areas will have no effect.
General advisory perspective, not advice tailored to an individual asset or a guarantee of results.
Further reading: HFTP’s Uniform System of Accounts for the Lodging Industry provides a framework for consistent hotel financial reporting.
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