Case study 12 - Identifying opportunities for growth

Client: general manager of a globally branded hotel, representing 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 date
Spring 2007

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 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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