Integration reset for a global hotel operator
For a top 5 global hotel operator, turned around a failing merger integration programme to deliver on synergies and forge a new international brand.
Our experienced team set the integration back on course, by resetting the programme’s structure, governance, objectives, timescales and measures, and by successfully bridging the parent company’s needs to maximise value with the expectations of the acquiree management team.
In line with its strategic goal of expanding into the upscale market segment, our client, an international hotel group, had acquired a 62-hotel, US-based upscale chain. The parent aimed to nearly double EBITDA through growth, especially internationally, and savings in back-office functions and technology.
A year into integration the programme was off-track. There were significant issues with hotel owners, and cost-synergy savings were behind schedule, as were growth plans.
Dispensing with another consulting firm, our client engaged us to bring fresh expertise and impetus.
Our senior team supported client workstream leads over a 12-month term. First, we focused on getting the programme back on track. This entailed a total reset to the overall programme masterplan, structure, governance, objectives, measures, timescales, and business case across its three main areas: business as usual, integration and growth. It also required bridging between the parent and their need to maximise value, and the expectations of acquiree management.
Once the programme was back on target, we provided specific support to the key hotel owner proposition workstream over a subsequent 6 months.
Our reset approach fundamentally put the whole integration back on course to deliver on its benefits, which were successfully realised across commercial, finance and procurement, organisation, and growth initiatives, as well as supporting technology and operations.
We also managed to align all the hotel owners to the global parent’s proposition and ensure their active participation in the cost savings and growth plans.
Five years on, the acquired chain now has 79 hotels in 72 cities across the globe and is an integral part of the parent’s upscale market business.