The feasibility study for converting Pestana Salvador Hotel into a Hard Rock Hotel focused on assessing the potential for rebranding and repositioning the property under the Hard Rock brand, while ensuring the project’s financial and operational viability. Our consultants were engaged to provide a detailed analysis of the conversion process, market demand, and financial implications of transitioning the existing hotel into a Hard Rock property.

The process began with an evaluation of the existing Pestana Salvador Hotel, assessing the physical structure, current operational model, and compliance with Hard Rock’s brand standards. This included an analysis of the required renovations and upgrades to meet the brand’s high standards of luxury, design, and guest experience, as well as the cost of implementing these changes.

Market research was a key component of the study, which included an assessment of the local hospitality landscape, the demand for luxury hotels, and consumer preferences. We conducted a competitive analysis to determine the positioning of other hotels in the area and identified gaps that the Hard Rock brand could fill. This research helped us understand the potential demand from both domestic and international visitors, particularly those drawn to the Hard Rock brand’s unique music-themed experiences.

Financial modelling was essential for understanding the feasibility of the conversion. We projected the capital investment required for the renovation, estimated ongoing operating expenses, and developed revenue forecasts based on expected occupancy rates, room rates, and ancillary revenues. Sensitivity analyses were conducted to evaluate the impact of different market conditions and operational variables on the hotel’s profitability.

The operational feasibility of the conversion was also assessed, focusing on staffing, service offerings, and ensuring the property’s alignment with Hard Rock’s brand ethos. We provided recommendations on staff training, service delivery, and brand integration to ensure that the new hotel would meet guest expectations and deliver a consistent Hard Rock experience.

The final feasibility study provided a comprehensive, data-driven assessment of the conversion process, highlighting both the opportunities and challenges of transforming Pestana Salvador Hotel into a Hard Rock Hotel. The study enabled the client to make informed decisions regarding the investment, renovation, and operational planning for the conversion, ensuring the project’s alignment with market demand and the Hard Rock brand’s standards.

Project Location

Bahia, Brazil