Your third task is to conduct a comprehensive feasibility analysis and financial projection for the construction of a new luxury hotel in Paris. The proposed hotel will consist of 300 rooms and will be built from scratch in the highly desirable submarket of Paris Rive Droite. Your analysis should include a market study, trend analysis, identification of the competitive set, and the preparation of pro forma projections. Background Information: 1. Location: After extensive market research, the ideal location for the hotel has been identified as Paris Rive Droite. This area is renowned for its proximity to popular tourist attractions, business centers, and transportation hubs. 2. Land Acquisition: The project requires the purchase of a suitable plot of land in the selected location. The estimated cost of the land, including permits and legal requirements, is 12 million. 3. Supporting Information: You have access to the HVS Development Cost Survey Report, which can provide valuable insights to aid your decision-making process. 4. Induce Demand: It is anticipated that the hotel will experience a 50% increase in demand during its first year of operation, followed by a 10% increase in the second year. 5. Timeframe: The construction and development phase is expected to take approximately two years. This includes time for obtaining permits, completing the construction process, and conducting inspections. 6. Data Sources: You can refer to the STR folder available on the FIN5274 Moodle Page for relevant information about the Paris market. 7. Assumptions: You are allowed to make additional assumptions if necessary, as long as you can justify them appropriately. Requirements: 1. Market Study: Conduct a comprehensive market analysis by submarket and class for the city of Paris. Gather relevant data to identify current market trends, customer preferences, and demand dynamics. 2. Trend Analysis: Identify and analyze emerging trends in the hospitality industry that could impact the hotel's operations and profitability. Consider factors such as changing consumer behaviors, technological advancements, and sustainability initiatives. 3. Competitive Set: Define the hotel's competitive set by identifying and assessing similar luxury hotels in the chosen submarket of Paris Rive Droite. Evaluate their strengths, weaknesses, pricing strategies, and market positioning. 4. Pro Forma Projections: Prepare financial projections for the hotel, taking into account key factors such as revenue, operating costs, capital expenditure, and return on investment. Utilize the feasibility financial template provided to present your projections. Based on your feasibility analysis and financial projections, provide a recommendation regarding the construction of the new luxury hotel in Paris. Consider factors such as market potential, profitability and risks. Note: Feel free to seek public information, as needed, to support your analysis and recommendations. 7 The maximum word count for this task is 900 words