Whale Hotel

ProHub Comment

This case is a quantitative market entry and investment decision problem, requiring candidates to perform detailed calculations for demand, revenue, costs, and payback period to inform a recommendation. It emphasizes careful data interpretation from exhibits and logical structuring to arrive at a conclusion within given constraints.

Estimated Time 15 minutes
Difficulty Medium
Source Darden
50 / 100
Our client is a real estate company that owns and operates luxury hotels around the world. They’ve previously owned 3 resorts in Dubai and are considering building a fourth, targeted specifically at high net worth individuals – called whales.

Clarifying Information

  1. What’s the payback period? 5 years
  2. How long is the construction period? 2 years
  3. What is the tourism industry in Dubai like? Very ritzy and highly seasonal (25% increase in the summer)
  4. Does the company currently own hotels in Dubai? No – ignore cannibilization
  5. Are there any similar resorts in Dubai? Yes, the King’s Palace, the Belzor, and the Egyptian