Key Highlights
- Comprehensive Feasibility Study Delivered
- Full Financial Model Included: P&L, Cash Flow, and Balance Sheet
- Multi-Phase Cost Estimation and Funding Structure
- Delivered in 4 to 6 Weeks
- Protaras-Ayia Napa, Cyprus | Hospitality and Tourism
Why a Boutique Hotel Developer Needed a Feasibility Study
A property developer engaged Consortia Advisory to deliver a comprehensive feasibility assessment for the development of a new boutique hotel in the Famagusta region of Cyprus. The client required a full analysis covering market dynamics, operational design, financial planning, and risk evaluation to determine the project’s commercial viability and support upcoming financing discussions with investors and banking institutions.
Project Overview: Assessing the Viability of a 5-Star Boutique Hotel
The project involved transforming a premium plot into an approximately 70-room upscale boutique hotel with premium guest experience features, including event-ready rooftop areas, signature leisure spaces, and elevated room amenities. The study focused on assessing market demand, defining the hotel’s competitive positioning, and building a robust financial framework to support the project’s development and long-term performance.
Our Approach: How the Feasibility Study Was Structured
Consortia Advisory applied a structured, data-driven methodology across six core workstreams:
- In-depth tourism and hospitality market analysis: A comprehensive review of the Protaras-Ayia Napa tourism market, assessing demand drivers, seasonality patterns, visitor trends, and the broader Cyprus hospitality landscape.
- Competitor benchmarking: A detailed analysis of competing properties across ratings, pricing strategies, facilities, and guest experience drivers to define the hotel’s optimal market positioning.
- Tailored business model and operational strategy: Development of a commercially viable operating model aligned with the hotel’s target segment, brand positioning, and revenue objectives.
- Multi-phase cost estimation and funding structure planning: A structured breakdown of development costs across construction phases, alongside a clearly defined sources and uses of funds framework.
- Construction timeline and professional risk mapping: A phased project timeline incorporating key development milestones alongside a thorough assessment of construction, regulatory, and market-related risks.
- Comprehensive financial modelling: A full financial model integrating revenue forecasts, operating and property-related assumptions, detailed expense structures, equity planning, cash flow projections, and break-even analysis.
Scope and Execution
Methodology:
- Tourism and hospitality market analysis: Demand-side and supply-side analysis of the Protaras-Ayia Napa hotel market, benchmarked against regional and national hospitality trends.
- Competitor benchmarking and positioning: Assessment of directly competing properties to define the hotel’s pricing strategy, service offering, and competitive differentiation.
- Financial feasibility modelling: A fully integrated financial model built on conservative revenue assumptions, phased cost structures, and multi-scenario sensitivity analysis to stress-test the project’s commercial viability.
- Funding structure and sources and uses of funds: A detailed capital structure plan outlining equity requirements, debt financing assumptions, and the phasing of investment across the development timeline.
Deliverables:
- Complete feasibility report aligned with investor, banking, and tour-operator requirements: A professionally structured document covering all aspects of the feasibility assessment, written to meet the expectations of lenders, institutional investors, and strategic partners.
- Detailed sources and uses of funds and construction phasing: A clear breakdown of total development costs, funding sources, and the sequencing of capital deployment across construction phases.
- Five-year financial forecasts including Profit and Loss, Cash Flow, and Balance Sheet analyses: A fully integrated financial model providing a transparent view of projected revenues, operating costs, and returns over a five-year horizon.
- Clear, actionable recommendations for market entry and brand positioning: Practical strategic guidance on how to position the hotel within the Protaras-Ayia Napa market and approach the project’s commercial launch.
- Total delivery time: 4 to 6 weeks, incorporating ongoing consultation with the client throughout the engagement.
Outcome
The feasibility study confirmed the project’s strong commercial potential and provided the client with a clear roadmap for funding, development, and market launch. The findings gave the client a credible, professionally structured foundation to support financing discussions and move forward with confidence into the next stage of development.
About Consortia Advisory
This engagement was led by the Consortia Advisory team, ICAEW-regulated advisors specialising in feasibility studies, business plans, and financial advisory for growth-stage companies and development projects across the UK, Cyprus, and Europe. Consortia Advisory combines rigorous financial methodology with a practical understanding of what investors, lenders, and stakeholders need to see.