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Hotel Developments - Travel Advice from the Pros
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There are several factors that are taken into consideration when underwriting a hotel development deal, but perhaps none is more critical than the estimation of hotel ramp-up. How long will it take the property to reach its stabilized level of operation.

With respect to market response, one might expect hotels to open and then ramp up steadily over a few months before attaining their slated position within a market, but we all know the dynamics of competition don’t allow for such a simple assumption.

Thus, the question becomes: How long does it take a new hotel to reach full penetration of its comp set.

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