The Development Law for hotels and tourist accommodations is one of the most powerful financial tools for new investments since it covers a significant part of the project's cost, multiplying the relevant prospects.
With the tourism product, however, evolving more and more, the programs become less obvious, since in addition to hotels, they now also finance alternative types of accommodation , such as agro-tourism accommodation or even glamping accommodation, posing even more concerns to investors in relation to the direction that they must follow before submitting the relevant funding application.
Given the above and the experience of Destsetters in the specification of new tourist and hotel concepts, we will analyze in the following article the 3 main key points of planning a new investment, so as to propose the safe choice of financing program that will lead to a profitable accommodation .
1. Analysis of the real possibilities of the plot in relation to the alternative typologies covered by the Development Law
As we mentioned above, the Development Law does not only concern 4- and 5-star hotels, but also other types of rising forms of accommodation such as glamping and agro-tourism accommodation , for which there is an ever-increasing demand in the context of the sustainable trend that is gaining more and more ground in the world hotel market.
Taking into account the above, the decision to include an investment in the Development Law also requires a deeper study in terms of the typology it will follow (ie the direction in relation to the type of accommodation proposed to be created), which should to be the result of both the practical possibilities of the plot, such as the area, the possibility of building and covering, the orientation and the view, as well as the supply and demand that the area already has . For example, on a plot of 15 acres with a construction of only 1,500 square meters, in addition to its partial hotel utilization, the utilization of a part of the plot for camping, which can even develop into glamping, could be considered, significantly increasing the profitability prospects of and maintaining the possibility of further financing.
However, beyond the practical possibilities of the plot, the final decision should also be the result of a research into the demand in relation to the competition and also the searches of the travelers themselves .
For example , if we were to develop a hotel in Kythnos today where there is no five-star accommodation while there is proven demand, it is logical that we would proceed in this direction, since the 4-star requirements set as a minimum by the new Development Act are not far away than the requirements of a five-star accommodation, given the resulting benefit.
Info: In the first stage of the Hotel Concept Making process by Destsetters, our team completes a detailed market and demand survey, recording all the necessary information, from the analysis of the characteristics of the plot to the complete recording of demand and competition, elements that will help in making the relevant decision and are decisive for the future profitability of the business. In this way, investors have a clearer picture of their investment and can "target" the appropriate financial tools that suit their situation, maximizing both prospects and benefits.
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2. Investigation of the actual operating and profitability scenarios of the selected accommodation typology, in relation to the wishes and profile of the investor
After determining the general direction of the investment (e.g. creation of a five-star resort accommodation, boutique hotel or city hotel) and before submitting a file for the Development Law or the NSRF or any other financial instrument, one of the most crucial steps is to determine the analytical typology of the accommodation (what will be the types of rooms, what are the specifications of the spaces and the interconnection of the operation, etc.), approaching the dynamics of both turnover and operating costs as well as the relevant requirements for the investor when the project will be completed.
Continuing the example: Suppose we decide to make a 5 Star Resort in Kythnos, with a total construction of 1,800 square meters. It is very important to answer at this stage if it will be an all suite hotel with rooms from 30 to 50 square meters or if it will have a hybrid character including a section of villas. This decision will affect both the total number of "doors" of the accommodation, as well as the number of beds, an element that is an important point of the submission file for the Development and which, in combination with the rest of the spaces and the facilities, also determines the amount of funding.
These features, apart from being of a structural nature for financing, are also the basis of the accommodation's strategy.
Info: In the second stage of the Hotel Concept Making process by Destsetters, our team creates alternative approaches to typologies with different types of rooms, spaces and facilities, budgeting the estimated turnover, staff costs and degree of owner involvement, helping investors to make a safer decision and claim their financing program with more realistic figures, thus increasing the amount of funding claimed. At the same time, the investment follows a perfectly thought-out plan that fits both the wishes and the profile of the investor, enhancing its overall prospects.
3. Specification of the Concept of the accommodation that will determine the functions and facilities that should be included in the Architectural Study that will be filed in the file
Having now fully clarified the typology of the accommodation, there is all the basic information to start the Architectural Study which will also be filed in the relevant file. However, although the accommodation is prescribed to a significant extent, there is a lack of basic information and requirements that may arise from the concept of the accommodation itself , which will significantly determine the displacement of the business in the market.
In particular , the Concept that a hotel business is going to have is not just about intangible ideas, but the essential configuration of each space, so as to give the business a significant competitive advantage and be a source of profitability for the accommodation. It is, therefore, the responsibility of the Concept Maker to propose functional spaces that will provide specific services and have the necessary facilities required by the new hotel data.
Returning to the example of the hypothetical 5 star accommodation in Kythnos, if the narrative of its concept focused the experience on the beneficial properties of the wind for human well-being, this would affect a number of elements of the investment, such as the application of materials that would bring out the relaxing feeling of their light movement, possibly a Spa that would utilize the air with alternative forms of treatments, the need for bioclimatic planning with full natural air conditioning of the accommodation, even the utilization of wind energy.
All these elements would greatly influence the required design of the dossier submission, shaping the cost of implementation but also allowing for the possible enhancement of funding through the use of sustainable practices.
Info: In the third stage of the Hotel Concept Making process by Destsetters, the full development of the concept of the new accommodation is done, which includes from the specification of the name and the narrative that will make it special to the detailed description of each space, helping the architectural team to capture as completely as possible the areas of the accommodation, the most accurate budget of the project as well as the most correct assertion of the financial program . At this stage, the accommodation takes on a real image before it is even designed, revealing its full potential and prospects.
Last but not least!
All the above points are decisive for a new investment and ideally should start to be answered by the Hotel Concept Makers at the start of the investment process in collaboration with the Architect and the Financial Consultants of the project. ( Read here about the specialties required for the development of a new hotel. ) For the projects that have already progressed to the submission of a file, the process is completed with corrective actions, ensuring the prospects of the project as well as the financing that has already been predetermined.
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Hotel Concept Development is Destsetters' most advanced service that aims to create unique hotels, with high profit margins, proper operation , but also with recognizable features that will help them stand out from the competition.
Taking into account the location of the plot or building, the wishes of the owners, the competition and the relative demand , we take care to specify the characteristics and strategy of the investment , so as to create a separate accommodation that responds to the needs of travelers, with real profit prospects .
Our team works with new investors, hoteliers, consulting firms and architectural firms , who wish to have a complete hotel specification that will provide all the necessary research and hotel know-how , identifying the commercial characteristics of the new accommodation as well as defining the details of his strategy, which should be reflected in the design and concept of the accommodation, so as to lead to a successful investment .
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