Independent 5★ Hotel : Strategic Study

CASE STUDY: STRATEGIC STUDY

Independent 5★ Hotel

How to develop a revenue and distribution strategy for a new hotel in Paris?

Paris 1st arrondissement
Prime location.

New hotel
Product renovation needed

June 2024

+ 20 rooms
1 Restaurant | 1 Bar & Lounge | 1 Spa
400 m² for 4 meeting rooms

Rooms

Suites

OUR 4-STEP STRATEGY

product positioning
1. Product Positioning
Compared to all competitors.

  • Definition of an ideal room mix
  • Positioning of the hotel and room types compared to the CompSET using Stairway’s rating method
  • Definition of the hotel’s strengths and weaknesses

 

data analysis

2. STR and Database Analysis
Identifying opportunities and risks.

  • Identification of opportunities and threats by season and day type
  • Identification of key nationalities by room categories and their purchasing behavior
  • Identification of key segments for the hotel

 

strategy

3. Strategy Definition
Pricing, distribution, and marketing.

  • Creation of a pricing grid and recommended price positioning by season and day type
  • Rate structure and distribution strategy, identification of key agencies and luxury program
  • Creation of a marketing plan before opening

 

revenue projections

4. Revenue Projections
For year 1, potential ADR compared to CompSET.

  • Estimation of potential ADR and ARI for the hotel and its competitors
  • Revenue projection for year 1 with impact on the calendar
  • Revenue projections by room type and projected macro-segmentation