Neve-Ilan, Israel: A site selection and business feasibility case study

The decision to invest in a new hotel near Jerusalem, Israel, is described and analyzed. Unlike most prescriptive models, reality dictated the 'product' as a hotel, as well as its general location. Consequently, a three-stage decision-making procedure was utilized. The analysis began with a specific site decision using an additive value function. Given the selected site, the second phase involved a thorough market study and a decision on the target markets. Finally, a business plan was presented. The entire process was carried out under the assumption of local resident acceptance of tourist development ventures in their area.