Project Scope

The assignment focused on evaluating the repositioning potential of a hotel asset in a transitional submarket, assessing both branded and independent operating scenarios. It aimed to define the strategic opportunity, quantify financial implications and guide investment decision-making. This covered:

• Market Analysis: Detailed assessment of submarket dynamics, competitive benchmarking and the local development pipeline. This identified a gap in midscale and upper midscale offerings and a clear opportunity for differentiated positioning.
• Scenario Evaluation: Comparative analysis of branded versus independent models, including ADR uplift potential, stabilisation timelines and top-line performance. The branded scenario showed stronger revenue prospects but required careful brand selection due to fit, conversion suitability and design constraints.
• Concept and Operational Planning: Review of refurbishment plans with recommendations to enhance efficiency and concept delivery. This included co-working integration, flexible F&B layouts and reconfigured back-of-house areas, alongside guidance on brand standards, planning implications and infrastructure upgrades.
• Financial Modelling: Development of stabilised trading projections and a five-year synthetic P&L for both scenarios. The branded model demonstrated higher income before fixed expenses and earlier stabilisation, offset by a higher cost base and longer contractual commitments.
• Strategic Implications: Evaluation of each scenario’s impact on exit strategy and buyer appeal, supporting internal alignment and investment planning.

The work provided a clear framework for assessing repositioning options, demonstrating Horwath HTL’s ability to integrate market insight, financial modelling and operational expertise. It enabled the client to approach decision-making with confidence and strategic clarity.

Project Location

United Kingdom