Branding
Brand Re-positioning Strategy
International Hotel Group
Background
The owners of a well-established but under-invested 75-room mid-market hotel in a prime capital city centre location wished to explore the feasibility of repositioning the property as a boutique hotel to drive higher profits.
Study Objectives:
- Evaluate the market demand for boutique hotels in the city centre.
- Assess local offering and innovative concepts in key UK and EU cities.
- Analyse boutique hotel cluster performance and recommend an optimal business mix with projected KPIs for a well-invested, differentiated property.
- Identify potential international representation companies and outline deliverables and costs
- Determine whether the existing brand could be retained or if a rebranding strategy was required to align with the new boutique positioning.
- In the event of the latter, provide a critical path and detailed cost analysis.
Our Approach & Deliverables
Demand Analysis
- A thorough analysis of city tourism data and segmentation (leisure, business, and event travellers) was conducted. Key trends such as experiential travel, wellness, eco-consciousness, and the growing presence of digital nomads were assessed for their relevance to the hotel’s potential transformation.
Boutique Hotel Product Analysis
- A thorough competitor analysis of boutique hotels was conducted, evaluating individual propositions, product offerings, services, representation, and digital strategies. Existing hotels were mapped against key target personas—affluent couples, young professionals, and business travellers—to identify market gaps and unmet demand.
- Further research was extended to prominent UK and EU cities to identify successful boutique concepts that could be adapted for differentiation in the local market. A range of innovative concepts, each with distinct value propositions, was presented to highlight potential areas of competitive advantage.
Boutique Segment Performance & Financial Projections
- Key performance indicators (KPIs), including ARR, Occupancy, RevPAR, and market mix across mid-market, boutique, and luxury segments, were analysed to identify comparative rate premium achieved by high-performing boutique hotels.
- Revenue models were developed to project financial performance for 5 years including a risk analysis addressing potential demand fluctuations, competitive pressures, and the impact of economic downturns.
International Distribution
- Luxury representation companies capable of enhancing international market reach were identified along with their cost models.
- Key agency partnerships were also identified to bolster international visibility.
Retention of Existing Brand vs. Rebranding
- A comprehensive brand equity assessment involving KPI performance B2C and B2B focus groups and surveys. The findings indicated that a rebranding strategy was critical to aligning the hotel’s identity with its target market and driving its appeal on an international scale.
- A detailed cost analysis was provided, covering all aspects of the rebranding process, including brand development, creative design, website development, and implementation phases, ensuring a strategic and financially informed approach to the transformation.
Outcome
The repositioning strategy, rebrand, and significant investment successfully transformed the hotel into a flourishing boutique property.
The shift attracted premium-rated leisure and corporate guests, boosting profitability.
The new brand quickly garnered strong market recognition, driving sustained revenue growth and significantly elevating the hotel’s online reputation through outstanding guest satisfaction scores.
