Acquisition and refurbishment of a hotel in Platja de Palma

Abstract

[eng] With the growing tourist demand in Playa de Palma, this study aims to analyze the economic viability of a project to reform a 3-star hotel by increasing its category. At the same time, the aim is to create a hotel that will stand out from the competition in this typical sun and beach destination. The typology of the new 4-star superior hotel will attract a more sophisticated client to the quality of the service, but at the same time it will allow to increase the prices of both the rooms and the additional services. Also, the value of the brand of our hotel will grow. In order to increase the final benefits, techniques such as Revenue Management, Upselling and CRM will be used and a flexible remuneration will be offered, apart from what is established in the agreement of the Autonomous Region, to the hotel staff involved in sales in purpose of their motivation. The main objective is to de-seasonalize the hotel in order to be open at least 10 months a year. To achieve this, a spa and a MICE event spaces will be installed in the hotel. By means of rigorous and detailed calculations, the aim is to make known all the possibilities of improvement that can be achieved.