Transforming Hospitality Chains to Improve Portfolio Performance and Profitability

A multi-brand hospitality chain operating hotels and serviced apartments across multiple Saudi cities sought consulting support to realign its portfolio, operating model, and service standards with the evolving tourism landscape. The chain catered to a mix of business, leisure, and family travelers but faced increasing competition from new domestic and international entrants. With the rapid expansion of tourism hubs and mega-projects, the client needed a transformation program that would modernize its value proposition, optimize its network, and enhance profitability while maintaining strong alignment with national tourism goals.

We designed a strategic transformation program spanning portfolio optimization, brand architecture renewal, operating model enhancement, and digital acceleration. Portfolio analysis identified which properties should be repositioned, refurbished, or repurposed to better fit local demand. A clarified brand architecture defined distinct roles for each brand within the chain, targeting specific segments and price points. Operating model improvements focused on centralizing selected functions, standardizing service protocols, and enhancing revenue management. A digital roadmap upgraded direct booking channels, loyalty program design, and integrated guest data utilization. Workforce initiatives reinforced service culture and operational discipline across the network.

• Conducted property-by-property diagnostics covering performance, market fit, facility condition, and guest feedback.
• Analyzed demand patterns across cities and segments to inform portfolio and brand repositioning decisions.
• Defined a refreshed brand architecture, including value propositions, design guidelines, and experience promises for each brand tier.
• Redesigned the operating model to centralize procurement, revenue management, and selected support functions.
• Developed a digital strategy focusing on direct channels, loyalty, and data-driven personalization.
• Launched training and change management initiatives to build alignment, ownership, and execution capability across teams.

• Reposition selected properties to better align with emerging leisure and family segment growth, including upgrades to facilities and amenities.
• Phase refurbishment programs to modernize priority assets without disrupting core revenue streams.
• Implement centralized revenue management systems and dynamic pricing capabilities across the portfolio.
• Enhance direct booking channels and loyalty programs to reduce reliance on intermediaries and increase repeat business.
• Standardize service culture through clear service standards, training toolkits, and performance tracking KPIs.
• Continuously monitor property performance and market evolution to refine portfolio decisions over time.

The transformation program delivered significant operational and financial improvements for the hospitality chain. Portfolio optimization and repositioning efforts supported an uplift in average occupancy levels by approximately 9–12% across targeted properties. Enhanced revenue management contributed to an increase in RevPAR in the range of 10–15%, depending on location and segment. Centralized procurement and streamlined operations generated cost savings estimated at 8–10% of controllable expenses. Digital enhancements drove higher direct bookings, reducing distribution costs and strengthening guest data ownership. Overall, the chain improved profitability, sharpened its strategic focus, and became better positioned to compete in a rapidly evolving Saudi tourism market.