Business type
Boutique hotel · New project
Location
Jerez
Areas of work
Feasibility · Concept · Product · Opening · Technology
Working together since
2018
Size
20 rooms
Some of the factors that most affect a property's profitability are decided long before the first booking comes in.
The starting point
From an empty building to a new concept
In April 2018, Jaso got in touch with ABAL after buying a former hotel in the historic centre of Jerez. The building had been out of use for some time and had deteriorated significantly. But behind that condition lay an asset with a lot of potential: a building with character, an interior garden and the chance to create an entirely new accommodation concept.
The owners were clear about their ambition to create Astuto. But before investing and building, they wanted to answer two fundamental questions: what product made sense to create? And what business could the numbers support?
What we saw
Before designing, understand the business
We began by studying the economic and financial feasibility of the project. We analysed demand, competition, occupancy, prices, revenue, costs and different operating scenarios to understand the asset's potential.
Because designing a property and then working out whether it is profitable is doing it backwards. First we had to understand the business we wanted to build.
From spreadsheet to product
Every decision had to make sense for the guest and for the business
ABAL supported the owners in defining the product: layout, room types, common areas, furniture, lighting and guest experience. The largest rooms were designed to offer different possibilities. We argued for a proper breakfast space and worked on concrete layout and fit-out proposals.
It wasn't just about creating a beautiful property. Every product decision had to make sense for the guest and for the business.
An economic decision
The pool as a strategic investment
Jerez has particularly hot summers, and we understood that not having a pool could limit the property's appeal during certain months. But improving the product wasn't enough on its own to justify the investment.
We analysed comparable properties with and without a pool, their average rates and their market performance to estimate the impact on ADR and calculate the return on investment. The garden also allowed it to be added without major structural constraints.
Years later, a new competitive analysis of the Jerez market still identified the pool as a differentiator. We didn't recommend a pool because it looked good. We recommended it because we understood it could improve the product, protect its ability to generate revenue in summer and justify the investment financially.
Getting the business ready to open
As the product took shape, we also worked on everything needed to market and manage the property from opening day: PMS, distribution, channels, booking engine, room categories, rate structure, pricing and Revenue Management.
ABAL also carried out the professional photo shoot with which Astuto went to market. Product and commercialisation were being built at the same time.
The result
20
Rooms. A property with its own identity and features rarely seen in its market.
2019
Year of opening. Astuto was born fully defined from a business perspective.
Astuto is a particularly good example of how we understand hotel consulting. When we started working on the project, there were no rooms to sell and no prices to adjust. And yet decisions were already being made that would shape the future property's ability to generate revenue for years.
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