The Challenge
2016-17, Madrid (Spain)
The client is an international family group who is developing an innovative cohousing project. The first unit will be open in Madrid, as a pilot market for Europe.
For this purpose, THE INNOVA ROOM was commissioned to carry out a Hotel Market Study to find out the current situation, product types and identify reference cases in diverse market segments.
The report structures and analyzes the data collected, as well as makes recommendations for the development of the new brand and its competitive position in the market.
How We Did It
A) The hotel sector in Madrid
First, we studied the competitive environment and the evolution of the market in recent years, with official statistical data.
- Legal framework, tourist classification and taxonomy of the different segments.
- General information on the accommodation offer.
- Market evolution by categories.
- Current offer by categories and districts.
- Evolution of the KPIs (Key Performance Indicators) for accommodation in Madrid: ADR, occupancy and RevPAR.
B) Market analysis
Next, the current market is analyzed by selecting a representative sample of it, with the best products in each category (Best Performers).
- Composition of the sample, size and classification of the products according to parameters of operation, quality and style.
- Location maps and preliminary conclusions on zoning.
- Analysis of comparable average prices, by type and segment.
- Online reputation analysis based on user opinions.
- Qualitative analysis of quality and image of hotel products.
C) Trends and innovation
Finally, a preliminary study of hotel product trends and innovation was carried out for the segment where the client intends to enter.
Currently the client is searching for a location for the implementation of the first unit in Madrid, and developing the business model in detail.
Source of the images: own elaboration
