Brand selection for luxury London hotel
Horwath HTL was engaged by a global investment firm to undertake a strategic business planning exercise for one of its London hotel assets. The assignment focused on evaluating three distinct operating scenarios: continuing as an independent hotel, or affiliating with one of two franchise brands, each representing a major global hospitality group. The objective was to help ownership assess the commercial, operational and strategic implications of each path, with a view to unlocking value and informing future positioning.
The Opportunity
The hotel is located in a well-established part of London with strong transport links and proximity to key demand drivers. The area is undergoing a shift in brand dynamics, with increasing interest from global operators seeking to expand their footprint in premium and midscale segments. This created a timely opportunity to evaluate brand affiliation options that could enhance the asset’s positioning, performance and long-term value.
Our Approach
We conducted a comparative brand review, combining market intelligence, financial modelling and strategic insight. Two brand scenarios were evaluated: one from a globally recognised premium portfolio, and another from a midscale design-led collection. For each, we developed short-form business plans and forecasts to stabilisation, benchmarking against operator budgets, submarket performance and brand contribution metrics.
Our analysis included detailed breakdowns of key KPIs as well as the impact of brand fees, franchise obligations and system integration costs. We assessed revenue uplift potential, loyalty programme traction and corporate RFP access. We also evaluated cannibalisation risk across each brand’s London footprint, concluding that the preferred option would complement existing assets.
Beyond financials, we reviewed brand fit from a design, experiential and operational perspective. The hotel’s style and amenities aligned well with one particular brand’s emphasis on individuality and social vibrancy. We assessed compatibility with brand tech stacks, marketing systems and loyalty demographics, incorporating these qualitative factors into our projections and recommendations.
We also analysed submarket dynamics, supply pipeline and competitive positioning; identifying the hotel’s optimal classification and benchmarking performance against comparable assets. This included a review of occupancy stabilisation post-rebrand, ADR growth potential and rate sensitivity in light of new supply.
The Outcome
Our work provided the client with a commercially grounded view of brand affiliation options and strategic clarity on the asset’s repositioning potential. It supported internal decision-making and investor dialogue; demonstrating Horwath HTL’s ability to deliver actionable advice that balances financial performance with strategic fit. Whether evaluating franchise options, repositioning an asset or preparing for disposal, our team brings the expertise and market knowledge needed to make confident, informed decisions.
Project Location
United Kingdom
