There are many reasons why a formerly successful hotel suddenly no longer brings in the desired revenues and a new conception with corresponding repositioning and presumably considerable conversions or renovations is due.
A new conception including cost planning, profitability forecast and a serious evaluation of the risks and prospects of success should be accompanied by hotel, marketing and hotel construction experts. The decisions are too complex and the speed with which new trends enter the hotel market is breathtaking.
Within the framework of this analysis, the following questions must be answered:
The requirements profile is developed from the findings of the market and competition analysis.
The requirements profile for the new concept is now developed. This includes the desired quality, the future features and the other basic conditions that should be fulfilled in order to make future guests happy. This leads to the planning of the necessary conversion and renovation and a specialised civil engineer plans the expected construction costs.
For a realistic profitability forecast, the future quality and feasible price levels including realistic occupancy have to be planned. Staffing plans and operational costs are drawn up, thus creating a picture that makes the decisions to be taken possible in the first place.
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