Risk Assessment and Sensitivity Testing in Hotel Feasibility Modeling

Hotel development involves multiple risks, including cost overruns, revenue fluctuations, and market uncertainty. The Hotel Feasibility Module addresses these risks through sensitivity and scenario analysis. Users can test how changes in key variables—such as construction cost, room rates, occupancy, or financing—affect project returns. This structured risk assessment helps identify critical drivers of profitability. By understanding best-case, worst-case, and expected outcomes, decision-makers gain clarity and confidence. Sensitivity testing transforms the feasibility model into a strategic risk management tool for hotel investments.