Market Research

Market research is fundamental to all our services.

Only on the basis of thoroughly researched and analysed information can

informed decisions be made.

 

We maintain ongoing records of hotel market performance and monitor the ongoing changes in accommodation supply, as hotels are being conceived, developed, (re)branded and transacted.  We apply rigorous and sophisticated modelling techniques to analyse and interpret market information.

market researchWhilst a lot of information can be gathered from behind our desk through online research, email and telephone calls, most assignments will also require us to undertake first hand research in the local market.

We maintain close contacts with hotel owners, operating companies and other industry relationships, and through personal contacts we can often obtain insights and information that is not available in the public domain.  Whilst we would not disclose our sources or reveal data received in confidence, this does allow us to provide more depth and insights in our data analyses and interpretation, leading to better results for our clients.

Supply & Demand Analysis

Supply and demand evaluationWe continuously track performance statistics for key markets in Australia and monitor the ongoing changes in accommodation supply, as hotels are being conceived, developed, (re)branded and transacted.  We also have access to bespoke competitor analysis reports.  Combining supply and demand information provides valuable insights in the performance of the accommodation market, the segmentation and origins of demand and, most importantly, helps us identify strengths, weaknesses, opportunities and threats for existing and potential new developments.

Our basic research deliverable, a Market Review, provides an overview of a competitive market environment, assessing existing supply, business mix and historic room occupancy and average room rate performance.   This would provide the required background information for an initial development opportunity assessment, for example.

Trend Analysis

The historic performance of the accommodation sector can be correlated with the underlying economic performance of the market area.  We have developed an econometric model that aligns economic indicators such as corporate activity, retail spend and international arrivals with the demand for room nights, based on the mix of demand drivers, reflected in the Accommodation Index.

Trend analysisApplying this index to forward projections of economic activity enables us to make rational predictions of future demand trends and prepare future room occupancy projections.  Similarly, a correlation analysis of room occupancy performance and historic room rate fluctuations provides us with the information needed to predict future room rate growth.

A Market Outlook Report builds on our Market Review and provides an assessment of anticipated future market occupancy and average room rate performance.  This report can be useful for the in-house preparation of budgets, an advanced development opportunity evaluation, or to support transaction documentation.

Forecasts & Projections

 

Forecasts and projectionsUpon the completion of a future outlook for the overall market, we can apply a penetration analysis to establish the current trading position of a subject property against the overall market, or a competitive subset of that market, applying indices to room occupancy, average room rate and room revenue per available room.  These indices can then be applied to projected future market-wide trading projections to derive at projections of trading performance for an individual property.

This Market Demand Study can provide the cornerstone for budget preparations, future cash flow projections, transaction due diligence or a (re)development assessment, supported by further market research.