Blueshift’s Structured Approach to Hospitality Project Consulting
Introduction: Elevating Wine Brands with Luxury Experiences
Blueshift was hired for a hospitality consulting assignment by an esteemed international investor, who had recently acquired multiple wine production sites and facilities in the picturesque Douro region a World Heritage Site by UNESCO. This investor sought to complement their strategy in the wine market by offering hospitality and leisure experiences, to bring emotion and gravitas to their brands, taking advantage of the touristic potential of some of the acquired facilities. The perimeter of assets to consider included two wine cellars, a historical manor house and a plot with breathtaking views over the surrounding vineyard.
Recognizing the symbiotic relationship between wine and hospitality, the investor envisioned a luxury hotel in the Douro Valley as a strategic means to elevate the positioning of a specific wine brand they wanted to position at the pinnacle of the market.
The project was organized in five sequential phases:
- Phase 1: Market Study and Benchmarking;
- Phase 2: Concept and Program;
- Phase 3: Business and Operating Models;
- Phase 4: Business Plan and Valuation;
- Phase 5: Brand Procurement.
This case study unfolds the strategic journey undertaken by Blueshift across these five pivotal phases.
Phase 1: Hospitality Market Study and Benchmarking
Blueshift initiated the project with an exhaustive analysis of the Douro Valley’s hospitality landscape. Through a comprehensive market study, the hospitality consulting team examined demand, supply, and performance indicators, gaining valuable insights into the region’s dynamics.
In parallel, Blueshift conducted benchmarking against a competitive set of properties in Douro and other regions. This strategic analysis provided a solid foundation by drawing on successful industry models.
Finally, the various asset locations underwent scrutiny, considering factors such as accessibility, local attractions, and competition. This phase equipped the client with a nuanced understanding of the market, laying the groundwork for informed decision-making.
Phase 2: Concept and Program for the Hotel and Other Assets
In Phase 2, Blueshift transitioned from foundational insights to a creative exploration of concepts. Collaborating closely with the client, the consulting team crafted a variety of hospitality and leisure concepts for different assets within the project.
Going beyond traditional hotel structures, Blueshift envisioned a top luxury boutique hotel, an upscale restaurant dedicated to the world’s finest wines, a trendy restaurant nestled in an old manor house, a sunset bar at a winery, and a unique food and beverage experience in a disused train stop by the river.
Each concept was meticulously detailed in a specific program, ensuring a harmonious blend of creativity and feasibility. Blueshift’s approach was enriched by a thorough analysis of emerging market trends, and the utilization of Blue Ocean Strategy frameworks ensured that each element secured a unique market space.
Phase 3: Hospitality Business Model and Operational Model
This phase marked a strategic transition for Blueshift as the team delved into the intricacies of business and operational models. Facilitating in-depth discussions, Blueshift explored a spectrum of approaches to the client’s hospitality strategy. Alternative models, including full ownership, management, or franchise contracts were presented and discussed. The team also delved into diverse operational and branding approaches, fostering collaborative discussions to shape a clear strategy, branding model, and operational plan.
This phase underscored Blueshift’s expertise in hospitality consulting, ensuring the chosen strategy not only aligned with the client’s overarching vision but also laid a robust foundation for subsequent implementation.
Phase 4: Project Business Plan and Valuation
With the strategy solidly laid out, Blueshift navigated the project into the domain of detailed planning and financial assessment. Leveraging its extensive experience in hospitality management and consulting, the team meticulously developed a comprehensive business plan, aggregating the different project components.
Following the industry-standard USALI format, Blueshift’s proprietary modeling tool provided an unparalleled level of operational detail. This encompassed factors such as demand seasonality, detailed staffing requirements, and nuanced considerations essential for economic feasibility.
The culmination of this phase involved a thorough valuation process, ensuring that the proposed venture not only aligned with the client’s strategic goals but also promised a sound economic investment.
Phase 5: International Brand Procurement
Once a clear strategy had been defined and the economic return of the project assessed, a decision was made to bring on board a top luxury international brand for the hotel. This decision marked the commencement of Phase 5, where Blueshift’s focused all its efforts on the brand procurement process.
Starting from a list of thirty candidate brands that showed potential fit with the hotel project, Blueshift curated a shortlist of five recommended candidates. This phase involved meticulous preparation, including the creation of a compelling project teaser and presentation, used by Blueshift to approach the shortlisted brands with a clear vision, showcasing the uniqueness of the project and its alignment with the brand’s values.
The result was the selection of a preferred brand, one of the most iconic names in the luxury hospitality scene. Blueshift immediately secured a letter of intent (LOI), confirming the brand’s keen interest in branding and operating the future hotel.
Conclusion: A Systematic Framework for Building Success in Hospitality
Blueshift’s role in the success of this hospitality project is underscored by a meticulous journey. From deciphering market dynamics to crafting unique concepts, defining strategic models, and ensuring financial feasibility, Blueshift navigates investors through each crucial step. As illustrated in this case study, Blueshift excels not just as a consultant but as a comprehensive partner. Seamlessly guiding clients from project inception to realization, Blueshift’s expertise ensures that every phase becomes a strategic stepping stone toward a triumphant and thriving hospitality venture.
Written by Filipe Santiago
December, 2023