Service Package/Expansion Strategy

Feasibility Study and Concept Blueprint For A Premier Rehabilitation & Wellness Resort In Abu Dhabi

Market Research, Concept Refinement, Feasibility Study, Financial Analysis, Operational analysis, Amenity Programming & Service Portfolio Design, Operator Model, Development Model Recommendation

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Client Background

To support a prominent UAE tourism authority's goal of promoting wellness and medical tourism by determining the optimal development strategy for a designated remote site. The client was initially clueless about the site's potential, requiring a comprehensive feasibility study to design the core concept, validate commercial viability, and create an implementation roadmap for the proposed resort. 

Delivery Team

Delivery Team

Deployment

Hybrid

Duration

4 Weeks

Engagement

Objective

To refine the concept and conduct a feasibility study for the proposed rehabilitation & wellness resort in UAE. The objective was to define the target positioning, room count and mix, amenity portfolio, and assess financial viability, resulting in a clear recommendation for concept selection and development model. 

Approach

Taken

1) Comprehensive Market Analysis and Site Potential Assessment

  • Conducted detailed analysis of the UAE's $3 billion wellness tourism market, examining growth patterns and consumer trends to identify high-potential segments and validate demand for specialized rehabilitation and wellness services in the region. 
  • Performed comprehensive site assessment evaluating location advantages, infrastructure readiness, and spatial constraints through physical inspections and technical reviews to determine optimal resort positioning and development feasibility. 
  • Evaluated and prioritized three mid-spectrum wellness concepts using a structured scoring model that assessed demand potential, competitive intensity, and site compatibility to guide strategic development decisions. 
  • Benchmarked against leading regional and international wellness resorts through competitive analysis and stakeholder interviews to identify service gaps and develop optimal amenity mixes aligned with mid-tier premium positioning. 

2) Data-Driven Concept Design and Operational Structuring

  • Developed two distinct concepts by translating target customer needs into tangible experiences, a vibrant 180-key Recharge & Play resort focused on active wellness and social interaction, and a tranquil 125-key Destination Medi-spa designed for deep, clinical restoration and long stays. 
  • Defined detailed operational frameworks for both concepts by specifying staffing models, facility allocation and service flow, creating a clear blueprint for resort management and daily operations. 
  • Curated comprehensive guest journey experiences through programmed activities, treatment protocols and F&B offerings tailored to each concept's wellness philosophy and target audience. 

3) Financial Viability and Implementation Roadmapping

  • Built a robust, driver-based financial model projecting a 13.8% project IRR and higher NPV for the Recharge & Play concept, outperforming the alternative. 
  • Estimated capital expenditure requirements that were benchmarked against similar regional developments, ensuring the projected costs for each concept were realistic and justified. 
  • Evaluated three development models, Public-Private Partnership, Hotel Management Agreement and Franchise model, through comprehensive risk-return analysis, assessing factors including capital requirements, operational control, revenue potential and long-term sustainability before recommending the PPP Model for its optimal balance of risk transfer and value retention for the client. 
  • Provided a detailed operational blueprint, identifying key cost drivers and staffing estimates of approximately 2.0 and 1.7 staff per key, supported by sensitivity analysis on occupancy and rate assumptions. 

Impact

Created

The comprehensive feasibility study and data-driven recommendations enabled the client to secure full project sanction from higher government stakeholders. The strategic roadmap provided clear direction on concept selection, financial planning, and implementation approach, transforming an uncertain initiative into an approved, actionable development project positioned to capitalize on the UAE's growing wellness tourism market. 

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StrategyConnect deploys specialized talent on demand. We are one of the largest networks of independent consultants and industry experts driving the adoption of flexible workforce in the Middle East.

Copyright @ 2024 StrategyConnect Inc. All Rights Reserved.