Hospitality Experience
Hotel Portfolio Management Strategy
The owner and operator of the largest portfolio of hotels in Papua New Guinea required an independent assessment of the merits to migrate from being a self-managed, local brand into a portfolio of hotels under a global flag, through a management agreement or under a franchise agreement.
Project Scope
Horwath HTL was engaged to provide an independent assessment for the owner and operator of Papua New Guinea’s largest portfolio of hotels. The client sought expert advice on whether to transition from a self-managed, local brand to a portfolio under a global hotel brand, either through a management agreement or a franchise agreement.
The engagement began with a thorough evaluation of the portfolio’s current performance, market positioning, and operational structure. This included analysing key metrics such as occupancy, average daily rate (ADR), revenue per available room (RevPAR), and profitability across all properties. The strengths and challenges of the self-managed model were identified, including cost efficiencies, brand recognition, and operational consistency.
We conducted a market analysis to assess the potential benefits of adopting a global flag. This included evaluating the competitive landscape, international traveller preferences, and the added value a global brand could bring in terms of marketing reach, loyalty programmes, and operational expertise. Benchmarking against comparable portfolios operating under global brands provided insights into performance uplift expectations.
The feasibility of both management and franchise agreements was explored, with a focus on their financial, operational, and strategic implications. Our assessment included cost-benefit analyses, a review of typical fee structures, and the alignment of each model with the client’s long-term goals.
The final deliverable was a detailed report outlining the merits and potential risks of migrating to a global flag. Strategic recommendations were provided, including the optimal branding strategy, operational adjustments, and transition planning. By offering a clear and impartial analysis, Horwath HTL enabled the client to make an informed decision on how best to leverage their portfolio for growth and enhanced market competitiveness. This engagement demonstrated our expertise in aligning local operations with global hospitality strategies for long-term success.
