The Holly Springs City Council has approved spending $14,000 to have a consultant do an independent market and financial assessment for a proposed hotel on a city-owned site.
“With a number of businesses requiring hotel accommodations, a growing economy, and no business-class lodging properties available in the city, you believe the addition of a midscale to upscale hotel could be successful,” the consultant, Key Advisors Inc., said in a proposal to the city.
Key said it would assess the overall desirability of the area as an overnight lodging destination; assess future market demand and support for a new hotel; recommend a “market-driven product” including market position, suitable brand(s), room count and amenities; assess the likely utilization of the hotel based on market supply and demand trends and anticipated competitive advantages; and prepare estimates of cash flow available for debt service in the first five years of operation.
The report, Key said, “can be shared with potential development partners, operating and franchise companies, and lending institutions for the purpose of your continued discussions.”
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