16
BUILDING THE NEWNH
-
Five-year Strategic Plan
Five-year Strategic Plan
The Board of Directors unanimously approved the five-year Strategic Plan. Developed in line with
the Company’s new vision, it guarantees a sustainable and profitable future.
After studying and analysing the Company’s key strategic areas, four value creation levers were
defined, focused on building the five-year Strategic Plan to transform the business model.
In this sense, the Group has defined and grouped together the initiatives that will allow it to improve
profits and margins, increase expansion and provide access to the “facilitators” of NHHotel Group’s
transformation through new strategies in sustainability, human resources and systems.
More specifically, these
four value drivers
can be divided as follows:
1.
Improve revenues:
through a
new customer value proposition
based on new
brand architecture and experience, as well as new price positioning and increased investment
in marketing. In addition, a
repositioning plan
has been designed with enough economic
investment to proceed with portfolio segmentation and product renovation, thus increasing the
value proposition andmaximumADR potential of the hotels. Furthermore, owned assets that are
not in line with NH Hotel Group’s new strategy have been sold; and additional assets have also
been sold in order to finance this repositioning plan.
2.
Increase margins:
by reducing intermediary costs and indirect channel costs, as
well as increasing direct online sales (website and mobile applications). In addition,
sales and
pricing
(
price-value)
strategy
and a market performance management strategy were designed.
Furthermore, we have optimised support (commercial, administration…) and purchasing
functions and have continued with the
leases adjustment plan
,
including leases renegotiation.
3.
Growth:
through an ambitious
expansion plan
into key markets and reinforcement of
presence in Europe and Latin American with different products to compete within each segment
(
upper-up-scale, up-scale, mid-scale), supported by contracts and conditions of each country.
4.
Transformation enablers:
through a
new Sustainability and Human
Resources strategy
,
and strong,
innovative IT plans
that will allow us to change business
culture and make NHHotel Group a global company.
Revenues
increase
Newvalue
proposition
•
New
Brand Architecture and Experience
,
new
pricing strategy and increased
investment in
marketing
Portfolio
optimization
•
Repositioning Plan:
€
200-220
investment that will
allow the portfolio segmentation and to refresh the
product in order to increase the value proposal and to
extract the full ADR potential of our hotels
•
Sale of own assets
that do not fit either with the new
product or NH strategy
•
Sale of additional assets
to finance the
repositioning plan
Margin
Increase
Direct sales
increase
•
Reduction of intermediation costs by
increasing
direct online sales
(
web site and mobile applications)
and lowering the costs of indirect channel
•
Sales strategy
(
channels) and
strategic pricing
(
prices-value) and
yield management
by market
Cost
efficiency
•
Optimization of support functions and purchases
•
Continue with the
leases adjustment plan
and leases
renegotiation
Growth
•
Organic expansion
strengthening presence in Europe
and Latam
with different products to compete within
each segment (upper-up-scale, up-scale, mid-scale) and
with the contracts and conditions of each country
ENABLERS
•
IT, Human Resources and Sustainability initiatives
•
Roll out a change in
business culture tomake NH a
global company
24
INITIATIVES UNDER 4 VALUEDRIVERS
