Success case study: Mercure Benidorm
PHG advised a family-owned company in the complete repositioning of a classic 3-star tour
For all these reasons, hotel investment currently stands as one of the most profitable economic activities in Spain.
To ensure we benefit from the correct alignment of all these variables, the 3 key aspects for carrying out a successful hotel investment are:
We must thoroughly analyze the suitability of the asset we intend to acquire: the attractiveness of its market, demand generators, current performance of the property and its value upside are the key questions to address.
The greatest value creation opportunity in Spanish hotels lies in the repositioning of hotels towards new, more profitable and more diversified segments and markets. The Market and Feasibility Study carried out beforehand should have identified improvement opportunities and value creation levers that had not yet been fully monetized. Finally, in order to maximize the asset’s operational performance and asset value, we will determine the most suitable management format and hotel brand for the property: lease, management contract, franchise, affiliation, etc.
Drawing on hotel specialists, we will execute the asset management plan previously designed to ensure that the profitability and asset value enhancement objectives set out therein are met across successive financial years.
