design process

Why Early-Stage Feasibility is Critical for Hotel Conversions and Upgrades

by Jeremy Grove • 1 October 2025

The success of a hotel project often hinges on the very first steps taken, years before the doors open to guests. For investors and project managers, early-stage feasibility is not just a box to tick – it’s the foundation for return on investment, operational performance and long-term brand value. There’s very little point investing millions into a hotel without understanding if it’s even technically possible. And this is our starting point with new consultancy clients…

Start with What’s Possible: Planning and Permissions

Often asset and project managers approach us to understand whether upgrading an existing hotel or converting a building into a new hotel or hospitality venue is viable. Planning constraints and local regulations are the first reality check, and we start with a feasibility study that explores:

Planning permissions: What is achievable within local policy, zoning and heritage frameworks? If buildings need conversion, or rooms need adding, is the planning required likely to be granted?

Building capacity: How many rooms, suites and public spaces can realistically fit within the footprint?

Design constraints: What structural and architectural limitations will impact operational flow, guest experience and profitability? Considering the fabric of the building, what is the sweet spot between optimal guest experience and spaces that generate revenue?

These early insights prevent costly missteps later and create a roadmap for design and delivery teams. It also gives the investor some insight into potential ROI.

Balancing Rooms, Public Space and ROI

For investors, the core question is: What configuration delivers the strongest financial performance? A feasibility study looks beyond room counts, weighing the commercial value of public and hospitality spaces against accommodation numbers.

· Too many rooms with insufficient supporting amenities can weaken brand positioning.

· Too much public space without a clear revenue model can drag on profitability.

· The right balance unlocks sustainable returns and maximises asset value.

Every decision, from the size of the lobby to the number of F&B outlets, should be backed by market intelligence, competitive benchmarking and projected ROI. In one mid-range London hotel, we dramatically improved the return on their sub-terranean space by turning it into an upmarket cocktail bar and flexible meeting space. It’s this design and technical eye that considers the bones of a building to uncover the potential.

Guest Experience Starts with the Building

Hospitality is not just about service – it begins with the building itself. Smart space planning impacts everything from guest satisfaction to operational efficiency. For example, a well-designed back-of-house flow supports staff efficiency and reduces operating costs. Optimised guest room layouts enhance comfort and brand appeal, and thoughtful public areas encourage guest spend and repeat visits.

By embedding customer profiling and brand strategy into feasibility studies, owners and operators ensure that the building itself supports the business model and guest experience goals.

Independent Insight that Brings Architectural and Interior Design Thinking Together

At Sibley Grove, we support owners, investors and operators with independent feasibility and strategic consultancy that de-risks decision-making and maximises value. Our services include:

· Strategic brief development

· Technical and architectural feasibility studies

· Procurement strategy and contractor insight

· Circular design integration

· Space optimisation and asset efficiency

· Brand strategy and customer profiling

Our independent perspective means we’re not tied to design or delivery outcomes, our focus is on what adding the most long-term value to a hospitality asset.

Early-stage feasibility is where vision and reality meet. It ensures that every square metre of space works harder, that planning and permissions are fully understood, and that the project is built on a commercially sound foundation. For investors and project managers, it’s crucial insight into whether a project is commercially viable.

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