Whale Hotel

ProHub Comment

This case tests financial modeling, market analysis, and strategic decision-making under constraints. Candidates must recognize the critical correlation between pool quality and whale customer demand, calculate capacity requirements, and justify investment decisions based on payback period constraints. The case rewards structured thinking and attention to competitive dynamics.

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