Support for hotel
Expert in repositioning, hotel renovation, product positioning, capex strategy, hotel works budget & agenda
Over the past 5 years, we have successfully completed €50 million of work on 32 hotel repositioning and renovation projects that have created significant value and performance thanks to our strategy focused on the “Product, Planning, Price” triptych. This strategy is based on our long experience in defining product positioning in line with the business plan as well as in line with capex sizing, regularly monitoring the works budget and keeping to the schedule.
It is this know-how and our hotel vision that we bring to hospitality asset owners with our dedicated hotel works support tender.
As an interface between our clients, asset owners, and their project manager, Honotel MDO acts as an assistant of the operational and hotel contracting authority for hotel renovation and repositioning work.
Our mission is to support you in your strategic decisions and to manage and coordinate external resources in order to carry out the work in the best conditions. To best meet your expectations, our strategy is based on:
- The product
- The price
Operational support for hotel works
Whether it is a question of maintenance work or work necessary for the repositioning of a product, Honotel MDO begins its mission with a complete audit of the hotel in its market. Our team scans its intrinsic characteristics, gives an opinion of its quality in its environment and recommends ways of thinking about it.
Based on our client's business plan, we then assist them in defining the product that will best enable them to achieve their objectives within their budget.
As an assistant to the operational and hotel owner, we coordinate the smooth running of the works for our clients: from the launch of the project, then the monitoring of the building site through regular meetings on the ground, right up to the delivery and opening of the hotel within the deadlines set for the project.
Our hotel works support tender makes the most of our teams’ financial management expertise. In particular, we assist our clients in: identifying and estimating the work to be carried out, developing the budget, the strategy for allocating capex between defensive investments and offensive investments.
For all our projects, whatever their size, we implement proven processes for budget monitoring and real-time management of purchases, from ordering to invoice verification.
Case Study: repositioning a 3 * hotel into a hostel to achieve business plan objectives
The Normandie (a 3-star hotel with 44 rooms and 83 beds), an ageing hotel in the station area of Nice, was in need of a modern upgrade. We took advantage of its complete renovation to suggest that our client carry out a bold marketing project to make this asset stand out in its market.
This is how the Ozz was born, a trendy hostel with 49 rooms and 179 beds.
Current situation & objectives accomplished
The main findings of the audit conducted by Honotel MDO at the beginning of its objective were as follows:
• Ageing asset in need of complete renovation
• Asset located in the popular station area of Nice but benefiting from a rehabilitation project,
• Strong competition, but from ageing 2 and 3-star hotels
• Bad reputation
• Performing well below the market average
• A building (room size, ceiling height) with great potential
In order to achieve the performance objectives set by our client’s business plan, Honotel MDO suggested that the hotel’s product positioning be radically changed by transforming it into a hostel. It was therefore possible to take advantage of the comprehensive renovation work to be carried out, in order to capitalise on the structural advantages of this asset. Namely: use all available space to the maximum in order to increase the number of beds.
Within the framework of a tight budget, we assisted our client in the entire operational and hotel monitoring of the works as well as in obtaining administrative authorisations, particularly to increase the number of beds.
There is now optimum performance:
- Excellent reputation on Tripadvisor, Booking, etc.
- RevPar x 2, well above the market average
- EBIT: Gross operating income 9 points, well above the market average.
We put our expertise at the service of investors to maximise their performance. Thanks to Honotel’s dual expertise in investment and hotel management, we assist investors in a wide range of business issues such as opening a hotel or bringing an ERP system into compliance.