Business Model + Destination Development

Business Model and Destination Development for a Hotel & Restaurant at Punta Delgada Lighthouse (Argentina)

The Challenge

Destination Development and Hospitality Business Model
2019, Punta Delgada, Valdés Peninsula, Province of Chubut (Patagonia Argentina)

The Agency of Administration of State Property (AABE) owns a property protected by Heritage and by UNESCO on a coastal plot at the Península de Valdés in Patagonia, Argentina.

The existing property and buildings were in the custody of the Argentine Navy and have restricted access to the coast because it has a sea lion sighting area.

The AABE hired THE INNOVA ROOM for evaluating the business potential of the hotel inn, the restaurant and the existing facility buildings, within which there is an old lighthouse still in operation. At the time of the order, the inn and the restaurant were closed, pending for the entry of a new dealership.

How We Did It

Project objectives

  • Preserving the heritage value of the set of buildings.
  • Keeping the areas of public use and access within the development.
  • Solving the supply of energy and drinking water in a sustainable way.
  • Developing a feasible and appealing business model, able to attract private investors for joining the project.

THE INNOVA ROOM developed an analysis of hospitality business potential and destination development.

Key points and conclusions

A) Supply of energy and drinking water
The property has unique attributes for the development as a tourist destination, with the opportunity of attracting demand from the International Cruise Port of Puerto Madryn. However, for the sustainable development of the value proposition, it is essential to ensure the supply of electricity, drinking water, telephone and internet. 

B) Hospitality Business
In a first stage we proposed to develop day activities, with access to the coast for the sighting of native fauna, food and beverage service and trekking around the Valdés Peninsula. After stabilizing the cash flow (coming from the food and beverage business and daily use), we proposed to gradually renovate and modernize the lodging infrastructure according to the expectations of the international high-end travelers already present at the destination.

Results

We organized a progressive project in which the economic performance is attractive, while the other development vectors are kept: preservation of the natural environment and sustainable development of service infrastructures at the destination.

Images source: Own elaboration and Welcome Argentina, Wikipedia, Patagonia Viajes, Mannheim Reinhard Jahn

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