Identifying opportunities for growth
Client
General manager of a hotel bearing a global brand and working under management contract for a hospitality real estate company owning hotels around the world.
Consultants: Frank Coan, Alastair Stevenson and Ian Graham
Location: Four-star hotel adjacent to Heathrow Airport
Project objective
To conduct market research into the local, national and international conference and meeting market in order to then provide advice in respect of three options under consideration for the upgrading and development of facilities at the hotel.
Project scope
The consultants obtained key data from the hotel operator, commissioned market share data from TRI and obtained similar from Deloitte and The Bench (now known as STR Global) through the client.
They interviewed hotel management, competitors, conference and banqueting agents, the local council and others. They modeled the market and the client's share of the market and prepared a best estimate of future market size and addressable share. The team drew conclusions and made certain recommendations, as well as pointing out market risks and opportunities.
The report, which was discussed with both the owner and the operator, indicated that none of the three proposals, as conceived, should be pursued. Alternative opportunities for profit growth and asset value growth were identified.
Results
The client was able to quickly and at low cost obtain a third party view, which was accepted.
The recommendations led to work being refocused on areas of greater value opportunity for both the brand and the owner, whilst at the same time saving valuable capital resources.
The hotel operator was also able to redirect resources towards improving areas of data gathering and knowledge management that will enable better decision making on a wide front in the future.
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Associated Experts
Ian Graham: leads and contributes to complex advisory assignments for hotel owners and operators around the world, leveraging his deep understanding of the goals of the guest, the hotelier, the investor, the lender and the brand owner - and all this from a unique base of experience that has seen him working on hotel issues in more than 60 countries
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Frank Coan: has a clear focus on getting to the heart of any business situation, whether it is the assessment of the potential of a new business opportunity or identification of future marketing priorities
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Alastair Stevenson: specialises in market feasibility projects and hotel development/investment appraisals supported by detailed revenue modelling, as well as marketing planning and strategy.
Read more >Associated Areas of Expertise
Asset management Read more >
Benchmarking performance Read more >
Brand management Read more >
Development strategy Read more >
General management Read more >
Hotel operator relationship management Read more >
Investment appraisal Read more >
Renovation programme management Read more >
Sales and marketing management Read more >
Strategic planning Read more >