Conceptual Development Assistance


  • The client obtained a land plot in a region famous for its mineral deposits. The land is located 1 hour from Lvov, Ukraine. The client had planned to make a resort, but did not know how to build a resort or what kind of business model would support a resort
  • The key questions to which the client wanted answers were:
    • What kind of resort to build, including location, services offered, what kind of clients would they want to attract, and from where, etc.
    • How will the resort beat off competition from nearby population centers? What are its competitive advantages compared with them?
    • How much investment will be needed for the type of resort chosen?
    • How can the work of the resort be secured? Is it possible to attract international hotel management companies? 
    • What financial conditions would shareholders demand?
    • Where can financing be sourced, and what profitability levels will investors expect?
    • What are the risks, and how big are they?


  • To study the market in the potential resort’s region and to identify the potential
  • To develop a business plan which will outline the type of structure, offered services, market assessment, market positioning, management and financing for the resort

Our approach and Results

  • Analyzed development tendencies for the Ukrainian hotel industry in related regions, as well as in similar segments of international markets
  • Analyzed and inspected the local region and market to assess its depth and volume, the competition and advantages contained in the surrounding areas
  • Interviewed local and regional authorities to understand what changes to infrastructure can be expected and how those changes might influence the resort
  • Met with local architects and building companies to discuss design options and the cost of work
  • Having clearly understand the market and client’s aims, we developed a business plan which included marketing and pricing policies that reflected the position in comparison with local competitors
  • The business plan included detailed plans allowing for the cost of construction to be calculated, from which investment assumptions were derived
  • A financial model reflecting forecast movements in monetary funds for the next 10 years was built on the basis of the interviews. This model was used to value discounted cash flows, one of the three different valuation approaches we used
  • Developed an action plan to attract financing and international hotel management companies to operate the resort complex


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