Evaluating Hotel Development Margin the Right Way
Development margin has long been used to assess hotel project viability, but it has limitations. The Hotel Feasibility Module enhances margin analysis by combining it with time-based financial modeling. It calculates development margin as net profit over total development cost while also showing how timing affects returns. This dual approach allows users to evaluate short-term projects effectively while avoiding misleading conclusions for longer developments. By integrating margin analysis with DCF metrics, the module delivers a balanced and realistic view of hotel project performance.