International expansion for a hotels group
For a multi-national hotel company, developed an international growth strategy with the potential to double the size of the business.
We scanned international markets to identify those with the highest potential for our client’s brand, prioritised these based on a thorough assessment of performance drivers, and recommended potential alternative capital structures to fund the rollout. The client went on to accelerate their expansion, and today international is the main driver of corporate growth.
The Group CFO of a hotel company with operations in a handful of countries aspired to aggressively grow the business internationally, amidst concerns about saturation and slowing growth in its core markets.
Our team, lead by an international hotel development specialist, conducted a scan of international markets to select those with the most attractive conditions for the client’s proposition. In high potential markets we conducted extensive analysis of competitors, RevPAR and occupancy rates achieved by different brands and location types, as well as the availability of sites and development partners. We also looked at alternative capital structures to fund expansion.
The resulting strategy had the potential to double the size of the business. The client engaged with potential development partners in target markets, then opting for an acquisition to gain a foothold and learn about one of the highest potential territories.
Their expansion has now accelerated, through M&A and organically, and international is today the main driver of corporate growth.