How to Avoid the Frankenstein Strategy When Creating a New Hotel?

Assembling a dream hotel and putting together the different parts—planning, concept, branding—comes with a lot of vision. But what if you end up creating a Frankenstein monster??

I very much like this analogy of the experiment and its tragic outcome because I have seen this in the hotel industry more often than not. Piecing together body parts, stitching things here and there, and then bringing it to life. Sometimes, the disparate parts don’t match, and it ends up being assembled into a creature, pretty much like Frankenstein's monster.?

We found a parallel in hotel creation, and since this is actually about hotels, here are some tips.

The Tale of Victor's Vision?

We like to say that it all starts with a vision statement and a return on investment plan. We need 1. the dream and 2. the money. Or is actually the other way around? From there, everything cascades to other steps.

Common challenges arise during this phase. For instance, the market might "not be ready" for the hotel, the category, or the rates we want to sell. Identifying our target guest segment becomes crucial. The initial investment might not yield the expected returns once the hotel opens. Occupancies might align with projections, but ADR or RevPAR might not follow. Sometimes, a hotel intended to be positioned in an upper category might be equipped with amenities that don't match the category and its expected guest experience. Layouts, furniture, and finishes might not be appropriate, leading to underspending (or, even worse, overspending). These are exaggerated scenarios, but they highlight common issues that can occur during the early stages. Like Victor Frankenstein creating his monster, selecting parts and stitching them together, it can unfold into a story of a monstrous mishmash.

The Root of the Monster?

Victor (the man who creates the monster, by the way) didn't consider how the mismatched parts would function together. Similarly, in hotel development, the root cause of a "Frankenstein strategy" often lies in the lack of integration and alignment between different elements of the project. Imagine a hotel in the luxury segment that can only sell at economy rates because there aren't enough luxury profile tourists landing (Yes, no ??) in the destination. Or imagine a hotel that, when fully booked, can't accommodate all its guests for breakfast in the restaurant, leading to long queues (This a classic). Picture forecasting to hit occupancy targets upon opening, but it takes six months to reach your cash flow goals. What if your room setting is economy, but you're selling at upper-tier rates? These are the telltale signs of a project that, like Victor's creature, lacks cohesion.

Crafting a Masterpiece?

Creating a successful hotel requires meticulous planning (a lot!) and seamless integration of all elements. We are still not even at a stage close to opening it, so here are four essential steps to ensure your hotel is a masterpiece, not a monster. Together, they work as one, creating synergies and synchronization.

The Planning?

Just as Victor should have had a detailed plan for his creation, you need a well-defined vision for your hotel. Conduct a thorough market analysis to understand the current trends, your city's dynamics, arrivals, and business opportunities. This will help you determine the right positioning for your hotel. Ensure your vision aligns with market demands. Identify who will stay at your hotel and how much they are willing to pay. Consider what you need to operate your hotel and what your target guests expect. Additionally, you need to know how much you want to spend to launch your hotel and when you expect to see a return on your investment. This process is called a feasibility study. Don’t miss it.

The Design?

When it comes to design, there are many factors to consider, depending on whether you are an independent hotel, a management hotel, or a franchisee. Create a layout and configuration that align with your business vision and market positioning, and that enhance the guest experience you aim to deliver.

This applies to all areas, including rooms, restaurant, bar, gym, meeting rooms, and any other amenities. If you are an independent hotel, we recommend learning from the big players. Study similar hotels and, if possible, visit them to gain better insights. Think of this as selecting the right components that will work well together to provide a cohesive experience for your guests.

The Identity?

This is the soul of your business, no doubt. You are going to create fans.

Developing a strong identity is crucial. Start by "who you are" and what you stand for as a hotel. Why would guests choose you over other options, and how do you want to reflect that? Your brand elements should be consistent and reflect your vision, from your room settings to your uniforms, to your logo and storyline.

Consider how your hotel will be seen across various platforms, such as OTAs, your website, and social media. Harmonize your identity across all guest touchpoints (arrival, stay, departure). This is akin to giving your creation a soul, something that resonates with your audience.

The Experience?

This part comes last, and it's often where the biggest mismatches happen because we only really know once we try it out (the trial part). Implement standards based on what your guests expect and make sure it matches what they actually paid for ??. Think about the tools and technology you'll need to support these experiences. This is called your guest experience journey, covering everything from the search process to arrival, the stay, and departure. This way, every part of your hotel works together to create the right experience for your guests, making they get what they came for.

In conclusion, and this is not perfect science, avoiding the Frankenstein strategy in hotel development requires a holistic approach. Remember, the key is to make sure that all (or almost all) parts work harmoniously together. With lot of planning and execution, your hotel will become a dream rather than nightmare.?

Meet the author:

Alvaro Moreno is a co-founder of SOD?, a hotel management platform established in Vietnam in 2023 alongside his business partner Jacobo Priegue. Both founders are experienced hoteliers from Spain with over a decade of involvement in the international hotel management scene in Vietnam.