Frequently Asked Questions – Feasibility Studies

Who needs a feasibility study?

Individual, companies or investment funds seeking to invest in a new hotel development in primary and secondary locations in Africa.

Why undertake a market and financial feasibility study?

• To understand key market trends and opportunity for new development;
• To assess key competitors and the ability of the concept proposed to deliver competitive advantage;
• To determine the viability of the project and whether or not the concept is implementable

How long does a market and financial feasibility study take?

The length of a study differs from project to project. A standard business hotel feasibility can take up to 4 weeks. A more complex study such as a resort, mixed use development or highest and best use analysis can take between 6 – 10 weeks depending on the components planned.

What is a highest and best use analysis?

The Appraisal Institute defines highest and best use as follows: The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value.

What happens if my project is not feasible?

If a project is not feasible this will be communicated immediately to the client. We will attempt, as far as possible to look at various scenarios which can improve the overall feasibility of a particular project. However if research indicates that a project is not viable we recommend strongly that the client does not proceed with the project.

What does a market and financial feasibility study cost?

A market and financial feasibility study varies in cost depending on the project. Please contact us directly on +27 21 685 0635 or so we can understand the components of your project and provide you with a quotation tailored towards your specific project.

What other services do you provide?

HTI Consulting can provide you with an end to end service that includes a market and financial feasibility study, operator selection and management contract negotiation and finance raising. We also have a brokerage department which can assist buyers or sellers with acquiring or disposing of their hotel assets.

Business Terms and Conditions

Performance of the Services

HTI Consulting will be acting in its capacity as business advisors and will be providing verbal and written advice. Nothing in this engagement letter (the “Agreement”) shall be deemed to constitute or imply any partnership, joint venture, agency or fiduciary relationship between HTI Consulting and the Client. The Client is free to accept or ignore any advice given by HTI Consulting. HTI Consulting will act in a professional and objective manner at all times. However, it cannot, and does not, guarantee that any of its recommendations and actions will result in a favourable outcome for the proposed development.

The Client shall promptly provide HTI Consulting with all information and assistance as HTI Consulting may reasonably require for the performance by HTI Consulting of its obligations in respect of this Agreement.


HTI Consulting shall not be liable under or in connection with this Agreement unless due to the negligence, fraud or wilful misconduct of HTI Consulting, its employees or officers.
HTI Consulting’s liability in connection with any claim or series of claims relating to its provision of services and provision of the Report under this Agreement shall in the aggregate be limited to twice the amount of the agreed fees. HTI Consulting shall not be responsible for any inaccuracies in any information provided by the Client.

Notwithstanding any other provision of this Agreement, in no circumstances shall HTI Consulting be liable to the Client or any third party for any incidental, consequential, indirect, special or exemplary loss howsoever arising and whether or not foreseeable or for any loss of profits, loss of business, loss of reputation, loss of opportunity or loss of goodwill.

In no event shall HTI Consulting be liable for any losses caused as a result of forces beyond the control of HTI Consulting including without limitation strikes, work stoppages, acts of war, terrorism, acts of God, governmental actions or loss or malfunction of utilities.

HTI Consulting shall have no responsibility for the accuracy of any information provided to the Client which has been obtained from or provided to HTI Consulting by a third party.


The Client shall, upon demand, indemnify, keep indemnified and hold harmless HTI Consulting against any and all losses of any kind or nature arising out of or in respect of HTI Consulting’s proper performance of its obligations under this Agreement or any claim made against HTI Consulting by any third party by reason of their provision of the services under this Agreement (except to the extent the same are directly caused by any negligence, wilful misconduct or fraud by HTI Consulting).

Information provided by HTI Consulting

The methodologies and financial models used in conducting the Study are the sole and exclusive property of HTI Consulting and are not to be used or replicated by the Client in any way.

HTI Consulting shall retain all intellectual property rights and copyright in all documents and reports prepared on behalf of the Client including the Report. The Client shall, after payment of the agreed fee, be entitled to use the Report in order to inform future business and development plans and to present to potential sources of debt and equity finance including financial institutions, owners, developers and other relevant and applicable parties.

The Report is not to be copied, adjusted or distributed to any third party without the prior written consent of HTI Consulting. The Client does not have any right to use the Report until all due payment has been received by HTI Consulting.

HTI Consulting reserves the right to use research conducted in high level market reports that they publish from time to time. Data and information will only be used in an aggregated form to provide an overview of the particular market, no specific detail relating to this Study or proprietary and confidential information relating to the Client will be used.

Governing Law

The terms of this engagement letter shall be governed and construed in accordance with the laws of South Africa, notwithstanding any rules of private international law or choice of law under which any other law might otherwise be applicable.


Either party shall have the right to terminate this Agreement in the event of the other party failing to remedy a material or persistent breach of any of the terms of the Agreement within 14 days after the service of a written notice detailing the facts that give rise to the material or persistent breach.
Should the Study be discontinued for whatever reason, HTI Consulting shall be entitled to, and shall be paid, fees for all services provided up until the date of the discontinuance.

The termination of this Agreement shall not effect those provisions which of necessity must continue to have effect after such termination, notwithstanding that the clauses themselves do not expressly provide for this. This shall include, but not be limited to clauses pertaining to liability, confidentiality and dispute resolution or any clause relating to any performance or observance by any party which was contemplated to survive any termination or expiration of this Agreement.

Confidential Information

For the purposes of this Agreement, “Confidential Information” means all information of a non-public nature disclosed to HTI Consulting by the Client or by any of its employees, agents or representatives, concerning the project. Such information shall include but not be limited to concepts, documents, reports, data, financial reports, specifications, software, network access designs, methodologies, flow charts, databases, inventions, information, know-how, trade secrets, designs, processes, procedure, formula, improvements or related information.

HTI Consulting shall protect the Client’s Confidential Information in the same manner and with the same degree of care which a reasonable person would use to protect their own confidential information.

The Client may at any time request that HTI Consulting return any copies, documents or other writings constituting and/or embodying its Confidential Information, irrespective of the medium and/or format in which the Confidential Information exists, and may, in addition, request HTI Consulting furnish a written, signed statement to the effect that on such return, HTI Consulting has not retained any copies, documents or other writings (or any data of whatever nature contained in computers or stored on computer readable media) of any kind containing or based upon the Confidential Information.

Alternatively HTI Consulting shall, at the request of the Client, destroy any copies, documents or other writings embodying the Confidential Information and furnish the Client with a written, signed statement to the effect that such copies, documents or other writings embodying the Confidential Information have been destroyed.

Except where required by law or by any proper authority or where the Client has waived such rights in writing, all Confidential Information shall be kept confidential by HTI Consulting. The obligations set forth in this clause 8.6 shall continue for a period of two (2) years from the execution of this Agreement.

Dispute resolution

In the event of any dispute, controversy or claim (a “dispute”) as to either parties respective rights and obligations or as to any matter arising from or that in any way is related to this Agreement, including any question as to its existence, validity or termination, the parties shall attempt in good faith to resolve the dispute within five business days after the dispute is notified in writing by either party.

If the parties are unable to resolve the dispute by mutual agreement within the aforementioned period, or within such further period as the parties may agree to in writing, then the dispute shall be submitted to and finally resolved by arbitration in accordance with the rules of the Arbitration Foundation of Southern Africa, by an arbitrator agreed upon between the parties, or failing agreement, appointed by the Arbitration Foundation of Southern Africa.

Unless otherwise agreed by both parties in writing, the arbitration shall be in the English language and held in Cape Town.

There shall be an arbitrator who shall be an independent practicing attorney of at least fifteen (15) years standing.

Appointment of the arbitrator shall be as agreed upon by the parties, failing which the appointment shall be by the Chairman of the Law Society of South Africa.

The decision of the Arbitrator shall be final and binding on the parties and may be made an order of any court of competent jurisdiction.


Any provision of the engagement letter, which is declared void or unenforceable by any competent authority or court shall, to the extent of such invalidity or unenforceability, be deemed severable and shall not affect the other provisions of the engagement letter, which will continue unaffected.

Right to Publish

After the completion of the Study, HTI Consulting shall have the right to publish, a brief overview of the Study so completed, and to declare that the mandate has been carried out by HTI Consulting on an exclusive basis.

No modification unless in writing

No modification of this Agreement shall be valid unless made in writing and agreed by both parties.

Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and shall supersede all prior expressions of intent or undertakings, written or oral, between the parties.

This proposal is valid for a period of 30 days from the date of the proposal.
Should you wish to accept this proposal then please confirm the Client’s agreement to its terms, by signing and returning the duplicate copy before the end of the 30 day period.

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