A private investor plans to invest in a hotel development. A seaside property is available in an already touristically developed greenbelt recreation area in the heart of a German low mountain region.
HOTOUR was to evaluate whether a new hotel is economically feasible in the above mentioned location and if, yes, in which conception. In the event of a positive outcome, the investor has requested support with the detailed conception and implementation of the project.
The market and location analysis for the hotel project was applied to the entire region. It was a matter of compiling which target groups visit the region and which gaps in the market were to be filled, if necessary. The location and numerous competitive companies within a wide periphery were visited. Initial talks were undertaken with the IHK and the tourism representatives as well as local hoteliers. In addition, the largest companies were questioned on-site to be able to estimate the potential through business travellers and conference guests.
It was quick to see that a new hotel was not justifiable purely on the basis of the natural demand in the region. It was a matter of creating a unique selling position for the hotel project, to create new stay motives – particularly in the demand-weak winter season – and draw a new clientele. In turn, the chances for this were evaluated as good because the location is a catchment area for short trips through the 18 million inhabitants with an exceptionally high buying power in a few German cities in close proximity.
In regard to the suitability for the planned hotel, possible subject areas with which the hotel itself could be positioned were evaluated in the second project phase. With the backdrop of the natural offerings on location and the tourist positioning of Saarland as well as the assessment of the competition, it appeared that the motives of sport and health were best suited as the base components of the hotel development. HOTOUR revealed two basic suitable concepts oriented toward health that pursued different approaches (a sports-medical approach or a preventive-medical approach) and that were partially constructed on the basis of the medical competences within the regional level. Other conversations were conducted with the persons responsible regarding the possible implementation of the concepts.
In addition, a “Bottom-Up/Top-Down” analysis of the potential revenues and the revenues required on the basis of the capital outlay was conducted on a hotel with a similar unique selling position.
It appeared that at least 80 rooms were necessary to operate such a hotel profitably. Both concepts with which the hotel itself could be positioned and generate a sufficient demand were presented to the client; the respective advantages and disadvantages were worked out. The client received concrete action recommendations on which next steps were to be initiated and which points must be taken into consideration during the further development the concept.
The project was pursued. Now, the investor is in the decision-making phase to determine which concepts best fit their vision. In the interim, HOTOUR has prepared a space and functions plan for the hotel.