Clanalytix was retained to prepare a market and financial feasibility study for a small ultra-luxury boutique hotel concept in central London, UK.
The end client was primarily a luxury retail group but also had a proven track record of developing and successfully operating small, high-end hotels in continental Europe. It was keen to establish a foothold in London and was in discussion with the owners of a building in Mayfair to lease and convert it into a luxury hotel.
The client had already prepared its own projections for the site, but wanted local experts with in-depth knowledge of the luxury London hotel market to review the proposed concept and prepare independent financial estimates for the project to validate their own internal feasibility and guide their negotiations on rent.
This was an interesting but challenging assignment due to the proposed concept’s differentiated price positioning, product and service concept and operating model all of which limited the relevance of usual market benchmarks. To ensure accurate and reliable findings, Clanalytix had to undertake extensive additional detailed and in-depth primary research to underpin its evaluation and financial modelling and ensure the client was equipped with relevant and reliable information to pursue its objectives.