As a result of the fact that a hotel is tied to its location, it will only be able to serve the needs of part of the market.  The market share in total hotel accommodation demand a particular hotel will be able to secure, will mainly depend on how well the hotel concept is in line with the individual characteristics of demand in the particular location.  Hence, the golden rule of real estate business i.e. “location, location, location” should - for the hospitality branch - be adapted to “location and concept” because even the best possible location combined with the wrong concept could very well lead to an economical catastrophe.

In order to find the right concept for a location, a thorough market and location analysis will need to be carried out first.  This will serve as the basis for establishing a location profile which will reveal possible market niches or opportunities and hence show the potential of a new hotel.

In addition to the historical development of the surroundings that are of relevance to a location, the market and location analysis will also examine the specific characteristics of the surroundings in view of their present and future potential for generating demand in accommodation.