Hotel A is a long-established hotel located on a mountain resort. In recent years, an increase in foreign travelers to Japan has influenced the market, and the owner has been considering reconstruction of the hotel’s aging building. The owner wanted to know: ‘Can a redevelopment be profitable enough from a long-term perspective?’ and ‘If so, how should the development proceed?’
Hospitality Directions conducted a site visit and interviews with the owner and hotel executives to form a feasibility study.
■Market research
Is the market really full of potential? If so, which clientele should we target? We analyzed macro data, such as population dynamics and income change, as well as micro research including lodging updates, local characteristics and latest inbound trends. As a result, if we focus on core clientele and differentiate the hotel from competitors, the area could be profitable enough for the redevelopment.
■Hotel scenario development
Based on the analysis, we developed a hotel scenario including concept, target clientele, positioning and facility configuration.
■Clarification of target clientele
We conducted both quantitative and qualitative surveys to verify the scenario. Then, we conducted target clientele segmentation and established a ‘persona’ to clarify their characteristics.
■Rough design proposal
We presented a proposal of site and floor plans, and perspective drawings which appeal to our target clientele and create profit.
■List of operator candidates
Hotel operators were chosen to best match the hotel concept and facilities, in order to powerfully market to the target clientele.
■Operational forecast
A five-year operational forecast—including post-opening GOP estimates—was formulated and presented to our client.
A Comment from Hospitality Directions
A high-potential hotel plan was created that made maximum use of regional characteristics and differentiated the hotel from its competitors by clarifying the target customer base through extensive market research and quantitative/qualitative survey data.
We always keep long-term success in mind. When we created the design proposal, we endeavored to plan a profitable room configuration and attractive designs, fine tuning details such as furniture and equipment images. We believe that we presented an accurate and persuasive proposal to our client.
