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Transformative Revitalization – Blueshift’s 45-Day Resort Resurrection in Portugal

 

Introduction: Blueshift’s Challenge – Restoring Glory to an Insolvent Resort

In one of its most challenging projects as a hotel and resort management company, Blueshift undertook the ambitious task of revitalizing an upper-upscale resort that had, prior to Blueshift’s involvement, lost its prestigious international brand franchise due to insolvency. This critical loss manifested not only in the severed operational and distribution systems, but also led to the disbandment of the entire staff, leaving the property in a state of operational and reputational disarray.

Engaged by the insolvency administrator of the resort, Blueshift’s assignment was structured around three sequential phases:

  • Phase 1: Reopen the hotel in 60 days and streamline the operation;
  • Phase 2: Appreciate the value of the hotel for the handover;
  • Phase 3: Handover to a new brand and operator.

This case-study will delve into the challenges, strategic actions, and outcomes of each phase outlined above.

Phase 1: From Shutdown to Triumph – Blueshift’s Blitzkrieg Revival Plan

In the initial phase of the project, Blueshift faced a myriad of challenges as it revived this insolvent hotel in Portugal. The property had been shuttered, with the entire personnel laid off, and was burdened with a legacy of neglect due to a lack of investment and maintenance. The situation was further complicated by the recent loss of its prestigious international brand franchise, resulting in the shutdown of operational and distribution systems, the absence of a functioning website, and a dearth of contracts with suppliers and key partners.

Undeterred, Blueshift executed a series of strategic actions to navigate this complex landscape. One hundred and ten new associates were hired or reintegrated to fully staff the hotel, and a meticulous process of contracting, involving both old and new business partners, was undertaken. The team developed and implemented new standards and procedures to establish a robust operational framework. A targeted reopening promotion plan, leveraging direct channels and OTAs, was set in motion to ensure an immediate return on actions. Critical areas received focused investments to enhance the overall guest experience.

Blueshift also orchestrated a substantial re-structuring of the real estate owner rental pool, supported by a comprehensive communication plan aimed at rebuilding trust with the original developer. Drawing insights from best practices commonly employed in the management of branded residences within leading international hospitality brands’ resorts, and capitalizing on the extensive expertise of its management team in the realm of branded residences, Blueshift executed a transformation that enhanced the operational efficiency of the rental pool, while contributing to the overall revitalization of the resort. This strategic realignment positions the resort as a highly sought-after destination for discerning real estate owners, aligning seamlessly with industry-leading standards.

The outcomes of this phase were nothing short of remarkable. The hotel successfully reopened its doors in an astonishing 45 days, surpassing the highly ambitious target set by the main creditor bank. By the third month post-reopening, performance equaled the second-best in the property’s history, and room revenue experienced a notable boost of 32% in the first quarter.

Phase 2: Service Resurrection – Blueshift’s Path to Client Satisfaction Dominance

Embarking on the second phase, Blueshift encountered formidable challenges as it sought to enhance the intrinsic value of the hotel for the impending handover. The property grappled with a highly negative reputation in the market, particularly with crucial commercial and distribution channels. Furthermore, a distressing degradation of service and satisfaction levels had ensnared the hotel in a perilous cycle of blind cost-cutting.

Undaunted by these challenges, Blueshift initiated a series of strategic actions to reverse the negative trajectory. An intense training and motivation program was implemented, aimed at instilling an “extra mile” service culture among the staff. Simultaneously, a comprehensive animation program was introduced, featuring live music, DJs, barbecues, kids’ activities, and open golf, tennis, and fitness sessions. Additionally, thematic F&B menus were meticulously crafted to elevate the culinary experience.

The outcomes of this phase were nothing short of transformative. The hotel ascended to the top position in client satisfaction rankings on both TripAdvisor and Expedia, surpassing its competitive set composed of six upper upscale resorts. This achievement not only signified a remarkable turnaround in the hotel’s market perception, but also laid a solid foundation for the impending handover.

Phase 3: Sealing the Success – Blueshift’s Strategic Handover

Entering the final phase, Blueshift faced distinct challenges as it navigated the handover of the property to a new international brand and operator. The hotel had lingered on the market for many years, acquiring a tarnished reputation. Compounded by a history of poor operational performance, the task at hand was to orchestrate a seamless transition for the impending new ownership.

With a strategic mindset, Blueshift took decisive actions to address these challenges. First and foremost, Blueshift provided crucial support to the investor throughout the negotiation and due diligence process. This comprehensive assistance aimed to facilitate a smooth transition for the new owner, despite the historical baggage the property carried.

The outcomes of Phase 3 were marked by efficiency and efficacy. Within a remarkably short span of three months, a new owner was secured. Blueshift’s adept handling of the handover process ensured a swift and effective transition to the new operator, concluding in a mere two months. This expeditious and well-executed handover marked the culmination of Blueshift’s efforts, completing the intricate journey of revitalizing the hotel from insolvency to a new era of ownership.

Conclusion: Sealing Success – A Remarkable Journey in Resort Management

Blueshift’s transformative journey with this upper-upscale resort in Portugal exemplifies strategic prowess in the realm of resort management. Organized into three phases, the project unfolded with Blueshift overcoming substantial challenges and turning adversity into triumph.

The initiation phase witnessed Blueshift, as a white label management operator, successfully reopening the insolvent hotel within an unprecedented 45 days, exceeding ambitious targets and laying a resilient foundation for the future. Transitioning to the appreciation phase, Blueshift’s innovative programming and service enhancements propelled the hotel to the top position in client satisfaction within its competitive set. Finally, the swift handover to a new owner and brand accelerated the transition to a new strategic era.

This case study contributes valuable insights to the discourse on hotel management, emphasizing excellence, innovation, and resilience. Blueshift’s success in navigating the complexities of this project sets a standard for transformative revitalization in the dynamic landscape of hotel and resort management.

Written by Filipe Santiago
May, 2024

45

days to re-open the hotel

2

best performance ever on third month of operation

32

increase in room revenue on first quarter

1

in client satisfaction on Expedia and TripAdvisor

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