Development of a hotel begins with a conceptual plan, usually followed by a feasibility study. This analysis contrasts the forecasted potential income of the concept against the potential cost of development. Depending on the location of the property, a separate parking feasibility study may be in order. In one example we worked on, a boutique hotel was being proposed in a busy retail location which was adjacent to a popular public beach. Preliminary analysis of the local parking market showed a tremendous shortage in parking supply. With this in mind, the developer planned a large underground garage with enough capacity to capture revenue from the underparked neighborhood. They initially retained us to answer questions related to separating the garage operation from their agreement with their hotel operator. After looking at the development plan, we advised the client that the potential parking revenue might significantly alter their financing arrangements and that a separate feasibility study was in order. In the end, it turned out that there was so much parking demand in the market that the parking bottom line would be greater than that of the hotel. While this is an extreme case, in the right location and market, parking can ...