Crafting a Hotel Marketing Budget: Goldilocks and the 3 Bears
There are 3 ways to create a hotel marketing budget:
Too Little – Take last year's budget and add 10% Too Much – Take your top line forecast then budget 3-8% towards marketing Just Right – Follow the following steps to property justify a targeting hotel marketing budget
Steps to Creating a Hotel Marketing Budget
Without following this framework as a hotel commercial team, you will never be able to solve issues or reach team goals. Otherwise, we are left trying to stretch dollars across various tactics too thin.
Define Gaps and Goals Determine a Strategy (as a team) Solve with Specific Tactics Allocate funds and budgets
— Source: Cogwheel Marketing & Analytics
Sample Hotel Commercial Scenarios and How to Solve with Hotel Digital Marketing
Then, Stephanie walked through 6 different commercial strategy scenarios and how to plan against them for marketing. Each of these gaps or goals are generally sales or revenue problems that hotel marketers need to plan to help solve.
In each scenario, we walk through the steps above to see how different strategies and budgets can solve various gaps or achieve specific goals.
Scenario 1: Our market is heavily saturated with hotels of the same brand, we are not getting our fair share
Scenario 2: Group PACE has dropped, so we are relying more on transient in specific quarters
Scenario 3: Demand in the market has softened, everyone is fighting over the same business
Scenario 4:We have a newly rebranded hotel, RAMP is slow, no one knows us as the new name.
Scenario 5: It is the middle of the month, and we are not going to meet this month's budget.
Scenario 6: Profit is low due to OTA commissions.
To see the sample strategies, tactics and budgets used to solve against these scenarios, please review the entire deck presented at the conference:
Download here
Lastly, a chart of digital marketing KPIs, not just ROAS and cheat sheet to align the customer journey funnel and their aligned tactics, KPIs and costs.
About Cogwheel Marketing
Cogwheel Marketing™️ is a full service digital marketing agency specializing in branded hotels, first leveraging brand systems then coupling that with supplemental strategies to maximize total online presence. Their reporting and business intelligence tool, Cogwheel Analytics, aggregates data from multiple sources to allow companies to identify trends and opportunities in their online presence. Our defined processes ensure the best positioning for your hotel against the competitive set and against other hotels of the same brand. Let us work with your sales and revenue management teams to identify and close the gaps and target your ideal guests.
View source
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hospitality Net
2 days ago
- Hospitality Net
Martin Riehl has been appointed Executive Chef at Park Hyatt Abu Dhabi
Park Hyatt Abu Dhabi Hotel and Villas has appointed Martin Peter Otto Riehl as its new executive chef. With more than four decades of global hospitality experience, Riehl joins the Saadiyat Island property following key roles across Asia's top Hyatt destinations. A certified master chef with formal training in German and French cuisine, Riehl most recently served as director of culinary operations at Grand Hyatt Macau, within the City of Dreams complex. Prior to that, he led the kitchens of Grand Hyatt Hong Kong and Grand Hyatt Guangzhou — both known for their high-volume, high-end F&B operations. During his decade-long tenure at Grand Hyatt Shenzhen, Riehl played a critical role in shaping the property's culinary identity while supporting Hyatt's growth in China as an F&B specialist for the Asia Pacific region. His résumé includes collaborations with renowned chefs and a reputation for nurturing culinary talent and rolling out refined, globally inspired menus. In his new role, Riehl will oversee all culinary operations at Park Hyatt Abu Dhabi, including Mate Abu Dhabi, Beach House, and The Café. With his deep expertise in Chinese and international cuisines, as well as his track record in opening acclaimed culinary concepts, Chef Martin is poised to guide Park Hyatt Abu Dhabi's culinary program into an exciting new era, says the hotel.
Hospitality Net
2 days ago
- Hospitality Net
Cristian Nannucci has been appointed General Manager at Tivoli La Vie Muscat Hotel
Minor Hotels, a global hospitality group that owns and operates over 560 properties in 58 countries, is pleased to announce the appointment of Cristian Nannucci as General Manager of the upcoming Tivoli La Vie Muscat Hotel, set to open in Q1 2026. A seasoned hospitality executive with over 30 years of global experience, Nannucci will lead the pre-opening and operational launch of the first Tivoli property in Oman. Nannucci brings a proven track record of leadership across the Asia, Europe and the Middle East, having held senior positions with global hotel brands including Shangri-La and the opening of the five-star dual complex PARKROYAL COLLECTION and Pan Pacific Serviced Suites in Kuala Lumpur. His expertise spans luxury resort management, multi-property operations, brand development, and new hotel openings—skills that will be instrumental in establishing Tivoli's debut in Oman. Most recently, he has taken on senior assignments in Malaysia and the Philippines, combining operational excellence with a strong focus on guest experience and commercial performance. Situated in the modern mixed-use destination, LA VIE, just 15 minutes from Muscat International Airport, Tivoli La Vie Muscat Hotel is a landmark new-build development comprising a 79-key hotel and 100 branded residences. The property will overlook the newly landscaped 18-hole golf course managed by Troon Golf and will be ideally located near the Oman Convention & Exhibition Centre, Oman Automobile Association, and several government ministries. Guests can look forward to a full suite of luxury amenities including an Anantara Spa, SEEN Rooftop Bar & Restaurant, all-day dining venue, sports bar, ballroom, meeting rooms, and a state-of-the-art gym and infinity swimming pool. With this opening, Tivoli Hotels & Resorts strengthens its presence in the Middle East, complementing its existing portfolio in Qatar and upcoming expansion into Bahrain. An Italian national, Cristian Nannucci is a graduate of the Aurelio Saffi Hotel School in Florence and has completed executive leadership programmes by Cornell University. His diverse cultural background and international training have shaped a management style rooted in precision, innovation, and warm hospitality.
Hospitality Net
15-07-2025
- Hospitality Net
Scandic has entered into a framework agreement with Pandox AB and Eiendomsspar AS with the intention to acquire the hotel operations of Dalata Hotel Group Plc
Scandic Hotels Group AB (publ) ('Scandic') has entered into a framework agreement with a consortium consisting of Pandox AB and Eiendomsspar AS (the 'Consortium') with the intention to acquire the hotel operations of Dalata Hotel Group Plc ('Dalata') from the Consortium (the 'Transaction'). Proceeding with the Transaction is conditional upon completion of the Consortium's takeover of Dalata, which was announced today, a separation of Dalata's real estate and operating businesses and necessary regulatory approvals. Upon completion of the Transaction, Scandic will add 56 new hotels to its portfolio with around 12,000 additional rooms and a further pipeline of approximately 1,900, mainly across Ireland and the UK. For the financial year ended 31 December 2024, Dalata reported revenue of EUR 652.2 million; operating profit of EUR 158.5 million; and basic earnings per share of EUR 35.5 cent. The Transaction The key terms of the Transaction are as follows: In connection with the Consortium's cash takeover offer for the entire share capital of Dalata (the 'Dalata Acquisition'), Scandic has entered into a framework agreement with the Consortium with the intention to acquire the hotel operations of Dalata, subject to and conditional upon completion of the Consortium's public takeover offer, the separation of Dalata's real estate and operating business and necessary regulatory approvals. The Dalata Acquisition has been recommended unanimously by the Board of Dalata. Dalata owns and operates hotels primarily in Ireland, where it holds a leading market position, and in the UK. Under the terms of the Transaction, Scandic would take over the operations of 56 hotels (the 'Operating Business'). Of those hotels, 53 would be acquired on a leasehold basis and three would be managed. Scandic would be subject to new lease agreements with the Consortium for 31 of the hotels, with the remainder continuing to operate under existing third-party agreements. The Consortium would maintain ownership of Dalata's freehold and long leasehold property portfolio. Subject to completion of the Dalata Acquisition, the Transaction is expected to take place towards the end of 2026. Under the terms of the Transaction, Scandic would manage Dalata's hotel portfolio pursuant to the terms of a management agreement in the interim period between completion of the Dalata Acquisition and completion of the Transaction (the 'Interim Period'). The management fee would be paid to Scandic quarterly and calculated on the revenue of the Operating Business during the Interim Period. In proceeding with the Transaction, Scandic would pay an anticipated price of EUR 500 million (on a cash and debt-free basis and subject to normal completion adjustments for cash, net debt and net working capital) for the Operating Business, subject to adjustments as agreed upon in the framework agreement reflecting the outcome of the separation of the Operating Business. The consideration payable under the Transaction will be fully financed from available cash and debt facilities, committed by DNB and Nordea. Scandic's current financial targets and dividend policy remain unchanged. If the Transaction is completed, net debt to adjusted EBITDA is expected to temporarily exceed Scandic's financial target of 1.0x but not exceed 2.0x on a full-year basis. Scandic's previously announced intention to launch a new share buyback program of SEK 500 million will now not proceed. However, Scandic would like to emphasize that the Board continues to view share buybacks as a useful tool for optimizing capital allocation. Jens Mathiesen, Scandic President & CEO, comments: 'Scandic has a strong platform, making us well-positioned to deliver on our 2030 strategy. At the same time, we are always open to new business opportunities that can create more value for our stakeholders. Dalata is a high-performing operator with strong brands and leading or established positions in attractive markets. The company primarily operates in the mid-market segment and shares a similar business model with Scandic. Overall, Dalata is a good fit for us. We see this as an opportunity to add a growth platform in new and attractive markets at an attractive valuation. Scandic's strong financial position enables us to pursue this opportunity with balanced leverage. At the same time, we will continue to deliver on our existing strategy that we presented on the capital markets day.' Background and rationale for the Transaction The Transaction represents a value creating opportunity to add a growth platform in new and attractive markets. Dalata has a proven track record and is a strong fit for Scandic Dalata is the market leader in Ireland and has an established presence in the UK, operating primarily in the mid-market segment under its well-known brands, Clayton and Maldron. In combination with a large part of its portfolio comprising of lease agreements, Dalata shares similar characteristics with Scandic, making it a strong complementary is well-managed with a strong track record, having delivered average revenue growth of 9 percent between 2019 and 2024, along with good profitability. In addition, Dalata has consistently reported high average room rates (ARR), occupancy, and revenue per available room (RevPAR) levels, which are expected to enhance Scandic's performance. The hotel portfolio is well-invested, implying limited future capex needs, aligned with Scandic's maintenance capex level. Dalata is the market leader in Ireland and has an established presence in the UK, operating primarily in the mid-market segment under its well-known brands, Clayton and Maldron. In combination with a large part of its portfolio comprising of lease agreements, Dalata shares similar characteristics with Scandic, making it a strong complementary is well-managed with a strong track record, having delivered average revenue growth of 9 percent between 2019 and 2024, along with good profitability. In addition, Dalata has consistently reported high average room rates (ARR), occupancy, and revenue per available room (RevPAR) levels, which are expected to enhance Scandic's performance. The hotel portfolio is well-invested, implying limited future capex needs, aligned with Scandic's maintenance capex level. Attractive market fundamentals in Ireland and the UK Ireland and the UK, including major cities Dublin and London, offer compelling market characteristics, including high ARR, strong occupancy levels, and good RevPAR performance that exceeds levels in the Nordics. Ireland and the UK, including major cities Dublin and London, offer compelling market characteristics, including high ARR, strong occupancy levels, and good RevPAR performance that exceeds levels in the Nordics. Value creating capital allocation The Transaction is expected to be EPS accretive from completion. The cash purchase price reflects an expected EV/Adjusted EBITDA multiple at a discount to Scandic's current valuation. While net debt to adjusted EBITDA is expected to temporarily exceed the financial target following completion, it is not expected to exceed 2.0x on a full-year basis. About Scandic Hotels Group Scandic is the largest hotel company in the Nordic countries with a network of about 280 hotels and 58,000 hotel rooms in operation and under development at more than 130 destinations. The company is leading the way in integrating sustainability in all areas and its award-winning Design for All concept ensures that Scandic hotels are accessible to everyone. Well loved by guests and employees, the Scandic Friends loyalty program is the largest in the Nordic hotel industry and Scandic is one of the most attractive employers in the region. Scandic is listed on Nasdaq Stockholm.
