Hotel study

Hello Sunny. Since you have the amount of the investment or cost to build the hotel, you can certainly model the economic impact of constructing this facility. First, build your model of the Study Region. Next, navigate to Setup Activities>New Activity>New Event>Select Sector 39 for hotel and motel construction. If the “Event Year” is different form the year of the investment, then set the “Event Year” to match the year the hotel will actually be constructed. Enter the value of the investment in the “Industry Sales” field and IMPLAN will populate the “Employment”, “Employment Compensation”, and “Proprietor Income” fields with estimates of these values for your model. Select Analyze Scenarios>Name your Activity>Select Activity>Analyze Single Region to run the analysis. Once your results are complete, navigate to Scenario Results>Dollar Year for View if the event year is different from the IMPLAN model year. Now, you can view the economic impact of constructing the hotel. As far modeling the economic impact of operating the hotel, we would suggest that you find/purchase information on the average operating costs of a hotel to develop this phase of the project. Usually, there are several firms that collect data on hotel trends and travel statistics that include average operating expenses for these types of facilities. Some reports suggest that labor will account for about 43 percent of all operating expenses for a typical hotel. The remaining big ticket items can be grouped into the categories of food and beverages, marketing, maintenance, utilities, and insurance. On the revenue side, major revenue generators include: room sales, food, beverages, telecommunications, and rental and other sources, respectively. Profits, on the other hand, will average as high as 24.7 percent at these properties. While this does not give you all of the operational data that you need to develop this phase of the project, hopefully, it will give you some insight about what additional data you will need for the project. If you anticipate the costs and revenues for the hotel to remain relatively constant over time, you can run a single operational analysis and call it a reoccurring impact for at least the first two to three years after the facility opens. Please let us know if we can be of further help to you.