CASE STUDIES

Hotel Chain

Region: France

Client Background & Challenges

The client, a high-end luxury hotel situated in a French Metropolitan area, received a study conducted by their statutory consultant. The study's verdict was clear: to justify the considerable investment of €70 million in renovation/refurbishment costs, the hotel should double its Average Daily Rate (ADR). However, the report offered no concrete strategies on how to achieve this goal, lacking a blueprint or action plan.

The imperative for renovation stemmed from the necessity to meet contemporary client expectations, adhere to industry norms, and comply with regulations, all the while projecting the hotel into the future. Additionally, the hotel sought to attract a new demographic: a wealthier clientele willing to pay a premium per night, within an intensely competitive market landscape. This investment was envisaged as a means to reposition and upgrade the hotel's standing within the market, also considering a luxury brand had just opened across the street.

Despite these ambitions, the hotel faced practical constraints. As a privately owned establishment, it operated within a framework of limited financial resources, constraining its ability to undertake extensive renovations. Thus, the challenge lay in navigating these limitations while pursuing the ambitious goal of repositioning and upgrading the hotel to meet the demands of a discerning clientele in a fiercely competitive market.

Solution

The proposed solution involved several key steps to address the challenges faced by the luxury hotel:

  • Firstly, conducting a comprehensive market review is essential. This entailed studying the local market potential, benchmarking against competitors, understanding positioning strategies, analyzing hospitality trends, and describing desired buyer personas. By gaining insights into client expectations and behavior, the hotel tailored its offerings much more effectively.

  • Next, a thorough gap analysis was be conducted through on-site inspections. This involved identifying and listing the necessary recommendations for implementation, prioritizing them based on their impact and feasibility. This process set the groundwork for strategic decision-making and resource allocation. 

  • This analysis concluded by describing the final hotel concept and outlining the desired client experiences. This step served as a guiding framework for subsequent actions and initiatives, providing a clear vision for the hotel's evolution. 

  • A thorough technical review of the planned investments was also conducted and we managed to save on critical investments, liberating enough cash to meet extra compliance demands and stay investment-free for the next 5 years.

  • Furthermore, data-driven calculations were imperative for evaluating the potential returns on investment. Utilizing techniques such as Net Present Value (NPV) , calculations for various scenarios enabled the hotel to make informed decisions regarding resource allocation and project prioritization.

  • By following these systematic steps, the luxury hotel was abke develop a comprehensive strategy to address these challenges, enhance its competitive positioning, and ultimately achieve its objectives in the dynamic hospitality market.

Achievements & Value for the Client

We provided:

  • Access to exclusive data sources which facilitated the return-on-investment projections per scenario.

  • A relevant and full analysis of the local market potential and local buyer personas.
Putting the client central in the approach to challenge the model from the architects.


  • Real savings on investment amount, freeing ressources for additional compliance investments.

  • Qualitative recommendations on how to achieve the objectives from an operational point of view. Recommendations were ready to implement.