Hotel Market Study: Adelaide, South Australia Location Analysis

This report presents a hotel market study focused on Adelaide, South Australia, with a specific emphasis on location analysis. It explores critical factors for setting up a new five-star hotel in the CBD, including supply and demand dynamics, economic outlook, and the viability of the venture. The study delves into demographic and geographical considerations, the importance of proximity to key areas, market potential, and feasibility factors. It also addresses relevant authorities and potential development sites, including SWOT analysis which highlights strengths, weaknesses, opportunities, and threats. The report concludes with a summary of key factors essential for hotel establishment and maintenance, emphasizing the significance of location, financial factors, and strategic analysis.

Running Head: PROJECT FOR HOTEL
PROJECT FOR HOTEL
Name of the Student
Name of the University
Author’s Note

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PROJECT FOR HOTEL
Executive Summary:
This project is completely based on how hotels need to be set and what should be the critical
factors that needs to be analyzed for setting up of the hotels. Detailed analysis regarding the
scope of the hotel has been discussed as well.

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Table of Contents
Executive Summary:........................................................................................................................1
Introduction:....................................................................................................................................3
Location:..........................................................................................................................................3
Relevant Authorities:.......................................................................................................................5
Other factors:...................................................................................................................................5
SWOT Analysis on the Chosen Market:.........................................................................................5
a) Strength:................................................................................................................................5
b) Weakness:.............................................................................................................................6
c) Opportunities:.......................................................................................................................6
d) Threats:.................................................................................................................................6
Conclusion:......................................................................................................................................7
References:......................................................................................................................................8

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Scaffolding Activity IV:
Introduction:
Hotels have become of the most popular and profitable ventures in the world. Mostly
everyday new hotels are set up and people are trying out food from varied hotels. The taste for
delicacies has increased and people are getting attracted to different types of food and several
cuisines. It is due to the setting up of various hotels that the availability of different cuisines have
become easy and people are getting easy access to taste and develop their food habits according
to the availability of food and according to their personal likings (Arnesen, 2018). Thus the
amount of people visiting the hotels is massive. This the factor of the setting up of eateries is
indeed a very good decision, to receive profits from it annually. There is also the option of
developing food chain starting from the setting up hotels. Thus the number of hotels serving
under the franchise my make better profits as well. The setting up of themed hotels is a very
popular factor and hence the number of themed hotels are growing as well. Thus the points of
developing re6taurants according to the popular taste related to the popular culture is definitely a
very strategic step towards consolidating the process of developing a chain of eateries. The
research work verges on the setting up of hotels and also studying on the Hotel Market Strategy
(Cavusoglu, 2015). The study is based for Adelaide, South Australia. Several factors are
discussed in the report like- identifying the supply and the demand factors, economic outlook in
the relation to the hotel industry are discussed. Also in order to provide a recommendation on the
viability of opening a new fictional five star hotel in the CBD, the report provides several
outlook in the provided subject (Cho, Bonn, Han and Lee, 2016).

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Analysis on the selected geographical location for a hotel site:
The number of the hotels focus on the location of setting up of the eatery because in case of
hotels the factor of the location is a very important as it serves the number and the availability of
the customers to the eatery and thus the amount of the profit made by the eateries depends
crucially on the location of the location of the availability of the hotels and food where the
engagement of the people is quite high or average, otherwise the involvement of the customers in
the hotels does not count and the hotel is not able to make good profit out of their venture.
Demographic data of the location:
The location can be chosen as beach side, highway stops, near amusement parks, in and
around the office hubs, around the mostly populated areas and specially areas where the
engagement of people and the crowd seems the most. (Eftekhari and Bogers, 2015).
Geographical factors that could assist or impact upon the development and
construction of a hotel:
The availability of the location of the location is an important factor and all the factors of
having the market, in or around office hubs should be within the 5-10 km of the hotel. The
communication of the availability of the transports should also be there as the customers will be
looking forward for accessibility of the place. And one of the most important factors that should
be analyzed while setting up a hotel is that noticing whether any other eateries are available or
are located nearby or close to the hotel then the availability or the flow of the customers may
vary and may also get disrupted. There will be continuous threat of losing the customers and
there will be head on collision regarding the profit of hotels (Karki and Alexander, 2018).

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Market Potential:
The hotel may make good profit if it has been locate near the CBD. Factors of the
demand of the drivers and proximity of the drivers are important factors as well. The
maintenance of the hotel and its development is a matter of great importance. The land must be
acquired depending and analyzing the cost of the place and also judging by the fact of the cost of
setting up of the hotel.
Feasibility Factors:
The market must be identified keeping in mind of the feasibility of the hotel and also the
scope of the hotel whether is located in the North/South/East/West, distance from the heart of the
CBD. Though there is always scarcity of land in and around these areas, as these are the business
areas of the Country (Lee, Hallak and Sardeshmukh, 2016).
Relevant Authorities:
Certain factors needs to be analyzed in and reviewed before setting up of the hotel, like
the concept, planning, development, and the management. The project may get rejected if the
height, size and zoning of the hotel does of match the requirements and somehow proves to be
superficial and also does not support or comes in aid with the actual planning of the hotel
(Muñoz-Bullon, Sanchez-Bueno and Vos-Saz, 2015).
Availability of potential development sites:
Potential developmental sites may be available and there are various factors that may
improve the potential of the hotels that may settle there. Hence the arrival of potential
competitors may be there. Certain factors like the improving of sanitation and the drainage can
be done. That will provide a clearer perspective to the hotel and also will attract a, lot of people

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in to the hotel. There are certain matters that need the idea of improving the mode of the conduct
and improving the maintenance of the hotel. Hence the importance of the maintenance of the
health and hygiene must be infused and taken care of. The concentration of the wellbeing of the
customers as well as maintenance of healthy ambience in and around of the hotel is definitely a
potential developmental site for the project.
If owners can buy or lease the building or land:
The hotel depends on whether the owners can buy or lease the building or land. This is
also important for the functioning of the hotel, as there will be also other hotels and several other
market factors which will be difficult to achieve if the owner wants to buy or lease the building
or land therefore the, hotels needs to settle d to a place so that the customers are available all
throughout the year (Michelini, Principato, and Iasevoli, 2018).

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Scaffolding Activity V:
SWOT Analysis on the Chosen Market:
a) Strength: Competitive advantages like the number of staffs and the amount of the
attendants are quite high in the hotels. Also the important factor of having less amount of
hotels nearby, is a great competitive advantage, as it affects the flow of the customer as
well as impacts on the profit of the hotels. The hotel will specializing on the ethnic genre
of food and will also be focusing on the staple food of Australia, bringing the country
flavors. The hotel will be providing free starters for the next 3 month after its opening.
The stakeholders will be looking forward for the successful establishment of the hotel
and its popularity will be always a thing to cherish for them. The unique factor of the
hotel will be that is tat will be hood quality of food and will specially highlighting the
ethnic food of Australia with a different taste keeping the country flavors intact (Namin,
2017).
b) Weakness: The response of the customers will serve as the feedback of the hotel. Hence
the behavioral factors of the staffs of the back and the front ends of the hotels is
important as they will be directly interacting with the customers. Therefore the manners
of the staffs should be checked and also maintained. Any kind of misbehavior from the
staff will ruin the impression of the customer for the hotel. Avoiding of too much of the
in-house accumulation of the customers should be checked as that may lead into a
suffocating environment. The factors of providing of low quality of food will totally ruin
the customers base of the sales, thus no consideration of with the quality of the food
should be made. The mishandling of the staffs and the low profit will be seen as potential
weakness by the stakeholders.

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c) Opportunities: The opportunities of the hotel can be seen as the hotel is located in not
a very crowded place therefore the number of the nearby eateries is not much, and
therefore the availability of the customers will only be restricted to the newly set hotel
only. And the hotel is looking forward for the sustainability as well. The genre of the
food served is also an opportunity as the number of he customers will always be attracted
to the mode of food.
d) Threats: The factor of the maintenance of the hotel is a very important factor. The
setting up of new eateries nearby the hotel may serve as serious threats to the hotel. Also
the only the inclusion of the other forms of cuisine may be beneficial for the hotel as
well, as the people love to experience new dishes. The financial threats may come if the
profit is not met and the stakeholders may also stop investing money on the hotel. The
change of government policies may also serve as serious threats to the hotel (Namkung
and Jang, 2017).
Conclusion:
Thus there are a lot of important factors that needs to be analyzed in order to maintain and also to
set up a new hotel. The location long with the financial factors are crucial for the setting up of
the hotel. The SWOT analysis provides the possible opportunities along with the strength and
weakness of the hotel.

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References:
Arnesen, E. E. (2018). Holistic sustainability in the restaurant industry: implications of focusing
on the social dimension (Master's thesis, Norwegian University of Life Sciences, Ås).
Cavusoglu, M. (2015). An analysis of technology applications in the restaurant industry.
Cho, M., Bonn, M. A., Han, S. J., and Lee, K. H. (2016). Workplace incivility and its effect upon
restaurant frontline service employee emotions and service performance. International Journal of
Contemporary Hospitality Management, 28(12), 2888-2912.
Eftekhari, N., and Bogers, M. (2015). Open for entrepreneurship: how open innovation can foster
new venture creation. Creativity and Innovation Management, 24(4), 574-584.
Karki, R., and Alexander, P. (2018). Increasing younger customers in restaurants through
marketing.
Lee, C., Hallak, R., and Sardeshmukh, S. R. (2016). Innovation, entrepreneurship, and restaurant
performance: A higher-order structural model. Tourism Management, 53, 215-228.
Michelini, L., Principato, L., and Iasevoli, G. (2018). Understanding food sharing models to
tackle sustainability challenges. Ecological Economics, 145, 205-217.
Muñoz-Bullon, F., Sanchez-Bueno, M. J., and Vos-Saz, A. (2015). Startup team contributions
and new firm creation: the role of founding team experience. Entrepreneurship & Regional
Development, 27(1-2), 80-105.
Namin, A. (2017). Revisiting customers' perception of service quality in fast food restaurants.
Journal of Retailing and Consumer Services, 34, 70-81.

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Namkung, Y., and Jang, S. (2017). Are consumers willing to pay more for green practices at
restaurants?. Journal of Hospitality & Tourism Research, 41(3), 329-356.