Development Margin vs IRR: Which Matters More in Hotels?
Both development margin and IRR are important metrics in hotel feasibility analysis, but they serve different purposes. Development margin focuses on total profit relative to cost, while IRR measures return over time. For short-term projects, margin may be sufficient, but long-term hotel developments benefit from IRR-based analysis. Understanding the strengths and limitations of each metric helps developers choose the right evaluation method for accurate feasibility outcomes.