The Challenge
2019, Ongamira, Cordoba Province (Argentina)
Boutique Hotel 5*, 6 rooms
Dos Lunas is in Ongamira in the Northern Center of Cordoba Province, Argentina. This boutique hotel offers a personalized attention, exquisite gourmet food and equestrian activities through a unique landscape in the Cordoba mountains.
An international group from the Luxury industry acquired the property and hired THE INNOVA ROOM for making an economic valuation of the hotel business, as well as offering Senior Advisory during the purchase process and along the first three months of operation under the new administration.
How We Did It
The work was carried out in two phases and with these objectives:
- Get an adequate price as the basis for trading.
- Coordinate the transition without affecting the operation and marketing of the hotel.
- Modernize the management.
- Take an inventory of tasks and works to undertake during low season.
A) Valuation of the business
During the pre-purchase negotiation stage, and within the framework of the confidentiality agreement with the buyer and the seller, we analyzed all the available information regarding the hotel business:
- Building architecture plans.
- Plans of the measuring of the land affected by the hotel operation.
- P&L for the last 10 periods.
- Personnel payroll.
- Distribution channels, pricing policy and positioning strategies.
B) Handover and Operational Senior Advisory
Once the sales agreement was closed, we made periodic trips to the property for advising the clients in the handover process and further operations. In this phase we carried out the following tasks:
- Formal takeover of the property.
- Communication to the operations team of the buyer’s objectives in terms of the quality of service, the commercial strategy and the investments envisaged in the renovation and value of the buildings and their equipment.
- Definition of the management criteria, from the perception of sales to the payment gateway of payrolls and suppliers.
Results
After three months we managed to maintain the quality levels in the provision of services, we increased the occupancy by 20% keeping prices in hard currency and a new online booking system was implemented.
We developed a CAPEX plan of actions and investments, which will be undertaken by the owner with his team during the off-season.
Images source: Dos Lunas Horse Riding Lodge
