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Moxy LES
Concept Development

PROJECT SUMMARY

A full hotel concept and investor pitch for a Moxy by Marriott in NYC’s Lower East Side, combining cultural research, market analysis, and financial modeling to prove the feasibility of an affordable, design-forward lifestyle hotel in a competitive urban market

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As part of the Lodging Development course, our team proposed a new hotel concept for Manhattan’s Lower East Side (LES). The neighborhood was rich in culture, nightlife, and tourism demand but underserved by branded lifestyle hotels.

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We identified Moxy by Marriott as the ideal fit—leveraging its playful, design-forward identity and Marriott’s global distribution to fill the gap between boutique hotels (stylish but expensive) and chain hotels (affordable but generic).

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The project went beyond concept design: our goal was to demonstrate financial viability through forecasts that could convince a hypothetical investor audience. By pairing cultural research with financial projections, we presented Moxy LES as both an attractive idea and a credible investment opportunity. The proposal received an A grade (class average: B-), reflecting its strength in bridging creativity and business feasibility.

TIMELINE

Jan – May 2016 

TOOLS

AutoCAD, MS Office, Photoshop, Google Workspace

TEAM

Team of 2

MY ROLE

Market research, concept development, user profiling, financial modeling, floor plan design, and investor pitch presentation

WHAT THIS PROJECT DEMONSTRATES

  • Analytical and strategic thinking — Conducted deep market research, competitive analysis, and financial forecasting (NPV, IRR, exit valuations) to evaluate feasibility and investor appeal.

  • Cross-disciplinary knowledge — Integrated hospitality development, real estate finance, brand strategy, and user experience design into a cohesive proposal.

  • Project management & organization — Planned and delivered a multi-phase academic project within tight deadlines, coordinating research, design, and financial modeling.

  • Concept development & storytelling — Translated cultural and user insights into a differentiated hotel concept and communicated it clearly to an investor audience.

  • Persuasive presentation skills — Structured research and forecasts into a compelling, investor-ready pitch that balanced creativity with financial rigor.

PROBLEM CONTEXT

The LES was gaining cultural relevance but lacked branded, affordable lifestyle hotels.

  • Boutique hotels were stylish and exclusive, but intimidatingly expensive.

  • Chain hotels were more affordable but generic, lacking cultural fit.

  • Gap identified: No hotels balanced affordability, design, and cultural authenticity for younger, international travelers.
     

WE considered:

  • Young, mobile, design-conscious travelers seeking authentic New York experiences.

  • Investors assessing viability, scalability, and return potential.

  • Marriott (hypothetical partner) as the brand operator.

RESEARCH & VALIDATION

  • Neighborhood analysis: Identified cultural anchors (galleries, nightlife, iconic restaurants like Katz’s) and transit accessibility.

  • Site analysis: 196 Orchard Street, with zoning flexibility and strong corner visibility.

  • SWOT analysis: Strengths (cultural demand, global brand), Weaknesses (market volatility, compact rooms), Opportunities (Marriott network, LES growth), Threats (crime rates, entrenched competitors).

  • Competitive analysis:

    • ​Ludlow, Sixty LES, Hotel on Rivington → high-end boutique competitors.

    • Holiday Inn, Fairfield Inn → chain competitors.

 

Gap: affordable lifestyle positioning, which Moxy could uniquely fill.

 

Validation was further supported by observing Marriott’s expansion strategy, which increasingly targeted urban lifestyle markets.

CONCEPT DEVELOPMENT

  • Brand Fit: Moxy was chosen for its playful, social, and millennial-oriented identity—aligning with the LES cultural scene.

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  • Key Features:

    • Room strategy: Single room type across floors → operational efficiency, brand consistency.

    • Technology: Smart controls (iPads, USB charging, integration with entertainment).

    • Lobby: Social check-in lounge and self-service kiosks → efficient use of space, fostering community.

    • Amenities:

      • Japanese restaurant by Tao Group → credibility and prestige.

      • Ground-floor Apple Store → high daily foot traffic and visibility.

      • Speakeasy bar and compact gym in basement → diversified revenue and lifestyle alignment.

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The concept positioned Moxy LES as a playful yet affordable lifestyle hub, filling a gap in the market.

FINANCIAL FEASIBILITY (FORECAST)

The financial model was designed as a forecast to demonstrate investment viability, not a real-world outcome. Its purpose was to convince a hypothetical investor audience that Moxy LES could be both attractive and profitable.

 

Development Costs

  • $24.3M estimated, aligned with benchmarks.

  • FF&E: ~10% of total.

  • Indirect costs: ~15% (slightly above industry average to include contingency).
     

Revenue & Profitability Forecasts

  • Year 1 revenue: $10.4M → Year 5: $14.7M (+41%).

  • Occupancy stable at ~84%.

  • NOI increase: +$1.7M over five years.
     

Valuation Forecasts

NPV: $52.6M (vs. $26.5M investment).

  • Terminal value: ~$60.5M (cap rate 9%).

  • IRR: ~30% (vs. industry norm ~12–18%).
     

Why This Was Critical

  • Investor alignment: Forecasts translated concept into financial language investors care about.

  • Credibility: Demonstrated understanding of real estate finance beyond design theory.

  • Persuasion: Framed Moxy LES as a project with strong exit value, growth potential, and market-fit economics.

OUTCOMES

  • Received A grade, compared to a class average of B-.

  • Recognized for balancing creativity and financial rigor.

  • Strengthened ability to frame hospitality concepts in investor-ready terms.

  • Years later, a real Moxy LES opened on the same site, validating the foresight of the proposal.

REFLECTION

Collaboration & Integration

  • A two-person team required dividing responsibilities carefully across site analysis, financials, and design. Collaboration ensured that all components—concept, numbers, and narrative—fit together seamlessly.

Balancing Creativity with Financial Rigor

This project underscored that a hotel proposal cannot rely on design alone. The financial forecasts gave the project legitimacy and showed investors how creativity translates into profitability.

 

Future Opportunities

  • Incorporating primary research (traveler interviews, neighborhood surveys) to validate user demand.

  • Adding scenario/sensitivity analyses (best- and worst-case forecasts) to reinforce investor confidence.

  • Prototyping digital/physical user journeys (e.g., self-check-in flow) to strengthen concept realism.
     

Ultimately, the Moxy LES proposal demonstrated the ability to blend cultural insight, design thinking, and financial analysis into an investor-focused pitch—a skillset that transcends academia and applies directly to real-world project development.

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