Market positioning review
Horwath HTL was appointed by a Thailand-based hospitality investment firm to deliver a market positioning review for a property in South West London. The property was being considered for a comprehensive renovation and relaunch, with two potential operating models under review: a return to market as an independent upper midscale hotel, or repositioning under a branded upscale flag from one of the major global hospitality groups.
The Opportunity
The hotel is located in a transitional submarket with growing demand for branded accommodation. Existing supply is polarised between economy and upscale offerings, creating a gap in the midscale and upper midscale segments. This context presented a strategic opportunity to reposition the asset and evaluate the commercial viability of both branded and independent scenarios.
Our Approach
We began with a detailed market analysis, including competitive benchmarking, submarket trends and a review of the local development pipeline. We identified a clear opportunity for the hotel to occupy a differentiated position, supported by latent demand and limited direct competition.
We assessed historical performance and evaluated the potential for ADR uplift under each scenario. While the independent model offered greater flexibility, our analysis showed that affiliation with a recognised upscale brand would accelerate stabilisation and enhance top-line performance. However, we also noted limitations in brand fit, conversion suitability and design flexibility; highlighting the importance of careful brand selection.
We reviewed refurbishment plans and provided recommendations to enhance operational efficiency and concept delivery. This included co-working spaces, flexible F&B layouts and reconfigured back-of-house areas. We also advised on brand standards, planning implications and infrastructure upgrades, particularly in the branded scenario where additional investment would be required.
To support financial decision-making, we developed stabilised trading projections and a five-year synthetic P&L for both options. The branded scenario showed stronger income before fixed expenses and earlier stabilisation but also carried a higher cost base and longer contractual commitments. These factors were considered in relation to exit strategy and buyer appeal.
The Outcome
Our work provided the client with a clear, comparative view of each scenario’s financial and strategic implications. It supported internal alignment and investment planning demonstrating Horwath HTL’s ability to combine market insight, financial modelling and operational expertise. For owners or developers considering repositioning or brand affiliation, this engagement illustrates how targeted analysis can unlock value and guide confident decision-making.
Project Location
United Kingdom
