La Cala Commercial Review & Business Turnaround Implementation

Project Type

Sales & Commercial Advisory 

Country

Spain  

Case Study Title

La Cala Commercial Review & Business Turnaround Implementation

The Client 

FBD Property & Leisure Ltd. owns and operates the La Cala Golf Resort in Mijas, Southern Span.

Background 

Our Client was an Irish quoted company that had made significant investments in resorts both in Ireland and in Spain. They had previously engaged HSP to review the profitability of their property in Ireland and having seen some good results from following our recommendations, asked HSP to review their La Cala property aiming to generate the highest medium-term profits.

Client Need 

The current leisure business model needed to be challenged both (a) tactically – to improve short-term earnings performance and (b) strategically. At the time, there was neither an intention to dispose of the business nor to make major capital investment.

Scope of Work 

We assembled a team that provided a sales and marketing and operational review that identified strategic options. For certain aspects we partnered with Braemar Golf and AseaSpa.

We began by analysing documents supplied to us by the Client, seeking clarification when necessary. The team compiled benchmarking information and provided a competitor analysis.

The golf and hotel team travelled to the resort and over a two-day period conducted analysis on site including in-depth interviews with key management. This was followed with a visit by the spa and F&B team. The teams evaluated product offerings and how they were communicated. In addition, they analysed the sales, marketing and distribution processes. The members also considered the organisational and process implications of their recommendations.

Our work was aimed at recommending changes to create an optimal solution for the business. We considered the implication of structural change and provided the client with an estimate of the implications to the flow-through of profit, demonstrating a range of target profits.

Following this, the team produced a written report summarising their recommendations. Consequently, a series of options, proposals, and next steps were agreed upon. The client then engaged HSP’s consultant as Interim General Manager, supervising the Sales Director.

What did Hotel Solutions Partnership achieve for the Client?  

• Quick wins researched and delivered in respect of major revenue streams (golf and the hotel). Minor revenue streams (F&B and Spa) were also addressed.
• Strategic options in respect of the four revenue sources and the cost base.
• A range of target revenue outcomes and an action plan for the realisation of the revenue stream, with a view to generating high medium term profits.
• Proposed changes to organisational design and key processes and technologies required to effect a turnaround in the business.
• Alternative operating models to maximise long-term value of the four elements of the operating resort.
• Implemented a Sales Action Plan for 24 months and helped turnaround the resort’s operations.