Market Analysis of the Damosa – Mamay Road Area Essay Sample

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INTRODUCTION

Our group will be conducting a lodging feasibility study and market analysis of the Damosa – Mamay road area to determine the potential to absorb future full-service hotel development. In doing so, we analyzed historical market performance, the potential visited development area, and meet with local area officials, and hotel & dormitel operators. Following this analysis, we formed conclusions on overall development feasibility to include specific performance projections for the most likely development sites.

GENERAL FINDINGS

Based on our market research and analysis, it appears that there is sufficient demand to pursue full-service hotel development, though development in the near-term would potentially require some form of public assistance. Further, we determined that there are three potential locations worthy of consideration for lodging houses development: beside the Bellisario Heights area, next to the Philippine Nikkei Jin Kai International School on the left wing area and on the left side entrance to Diamond Avenue . The following assumptions and conclusions hold the same for all of the proposed projects.

* An upper-upscale branded property is appropriate for the market. * An opening date of June, 2015 has been assumed for the proposed project. * Based on our analysis of market characteristics, the profile of Damosa’s – Mamay Road area supply and demand, the amenities offered by the competitive lodging houses, and the projected clientele of the subject lodging house/inn, we have assumed that the subject lodging house/inn would include the following facilities, amenities, and services: * 50 guestrooms and suites;

* Food and beverage facilities to include:
* Restaurant/bar serving breakfast, lunch and dinner;
* Additional bar/lounge;
* Room-service;
* Recreational amenities to include:
* Health/fitness center;
* Pool;
* Playground, Basketball court;
* Prefunction Space (Garden Space for Functions).

We have defined the competitive market for the proposed hotel at the subject site as other higher-end properties in the Damosa – Mamay Road, J.P Laurel, Davao City, market that compete for both transient and group demand. We have included the seven properties listed in the table on the following page in the competitive set.

POTENTIAL FULL SERVICE LODGING HOUSES/INNS, DAMOSA-MAMAY RD. COMPETITIVE SET SUMMARY

PROPERTY NAME| NUMBER OF GUESTROOMS|
Microtel Inn| N/A|
Maxze’s Bed and Breakfast| 35|
Housmates Dormitel| N/A|

Site #1: Beside the Bellisario Heights area

The following bullets summarize our findings in regard to the potential for full-service hotel development in the beside the Bellisario Heights area. * The available potential sites are well located proximate near to the Bellisario Heights The neighborhood is characterized in large part by retail outlets. These support amenities in the local neighborhood will be critical to the success of the property. * Access characteristics of the sites are favorable for proposed hotel development * The potential hotel at this site should have approximately 8,000 square feet of function space.

Site #2: Left Area of the Philippine Nikkei Jin Kai Int’l School

The following bullets summarize our findings in regard to full-service hotel development in the left area of the Philippine Nikkei Jin Kai Int’l School. * The available site is located proximate to the left area of Philippine Nikkei Jin Kai Int’l School. There are few supporting elements in the immediate neighborhood to support full-service hotel development. * Access characteristics of the sites are fair for potential hotel development. * The hotel should have approximately 6,000 square feet of function space.

Site #3: Left side entrance area to Diamond Avenue

The following bullets summarize our findings in regard to full-service hotel development in the left side entrance area to Diamond Avenue. * The site under consideration is located proximate to the proposed left side entrance area to Diamond Avenue. The area is still under development and plain spacious. However, the area is located in close proximity amenities near beside the Bellisario Heights. * Access characteristics of the site are good for potential hotel development. * A hotel in this location should have approximately 8,000 square feet of function space.

CONCLUSION

Based on the preceding analyses, a full-service, upper-upscale property would have the best performance potential in the left side entrance area of Diamond Avenue. This area is the most conducive to full service hotel development and is the most effective site to suit current and projected demand. Additionally, we are of the opinion that a full-service hotel in the area requires a small complement of meeting space, as there is a small amount of group demand in the area and adequate current. The expected continued near-term softness in the lodging market will likely necessitate some public assistance for any upper-upscale hotel developed within the next two years. As the local and national lodging outlook improves beyond 2015, and the all moves to DAS lodge/s are completed, the new lodge/inn could likely stand on its own.

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