Strategic feasibility study approach: A case study in a full-service independent hotel

Pudin Saepudin, Fajar Kusnadi Kusumah Putra, I Gusti Agung Wahyu Adrian


The purpose of this study is to show the implementation of a strategic feasibility study for the independent hotel project by using Political, Economic, Social and Technology (PEST) analysis, Porter’s five forces and Resource-Based View (RBV). A case study was conducted in a four-star hotel project in Bandung, Indonesia.  Direct observation and secondary data analysis from documents collected are used to support the investigation. From the results of the strategic analysis and the capital budgeting calculation, it is apparent that the hotel x investment is feasible to proceed. Limitation of this research is in only analysing one hotel in a four-star classification; further analysis can be applied in a different location and different classification of the hotel project. Some recommendations are given for independent hotel owners and academicians related to the business environment analysis and in creating a feasibility study specifically for the hotel business. Previous studies have failed to show any significant advantages in conducting feasibility studies using a strategic approach; there is a conceptual and methodological weakness in the area of hotel management, including operational, human resources, marketing and finance. Therefore, this study will offer a new model for planning the feasibility studies for the independent hotel business.


Hotel feasibility study; PEST analysis; Porter’s five forces; Resource-Based View


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