
Hospitality Experience
Highest & Best Use for Historic Building Conversion
Horwath HTL Italy was engaged to develop a two-scenario business plan for the conversion of a historic building into a hotel, exploring both 4-star and 5-star positioning.
The objective was to provide the client with a comprehensive analysis of the financial and operational implications of each scenario, ensuring an informed decision that aligned with the building’s potential and market demand.
Project Scope
Horwath HTL Italy was engaged to develop a two-scenario business plan for the conversion of a historic building into a hotel, exploring both 4-star and 5-star positioning. The objective was to provide the client with a comprehensive analysis of the financial and operational implications of each scenario, ensuring an informed decision that aligned with the building’s potential and market demand.
The project began with a detailed assessment of the property’s characteristics, including its architectural value, location, and capacity for redevelopment. Market analysis was conducted to evaluate regional tourism trends, guest preferences, and competitive dynamics. The analysis provided insights into the demand for upscale and luxury accommodations, highlighting the opportunities and challenges associated with each hotel category.
The two-scenario business plan included projections for revenue, operating costs, and profitability for both the 4-star and 5-star options. Key differences, such as room rates, target demographics, service levels, and required investment, were critically evaluated. Each scenario was benchmarked against comparable properties to ensure realistic assumptions and alignment with market conditions.
Operational considerations were tailored to each concept, including staffing needs, guest amenities, and branding opportunities. Recommendations addressed how to optimise the guest experience while balancing investment and operational efficiency.
Following the development of the business plan, the asset was sold and subsequently developed into the first W Hotel in Italy, which opened in April 2022. The successful launch of this iconic luxury brand highlights the strategic value of the 5-star scenario and its alignment with market demand for high-end hospitality offerings.
By delivering a thorough and forward-looking analysis, Horwath HTL Italy supported the client in making a strategic decision that maximised the property’s potential and contributed to its successful transformation into a landmark hotel in the Italian luxury market.
Project Location
Rome, Italy