The Grand Hôtel Cravat has followed a remarkably consistent trajectory. Located in the heart of the city, near the cathedral, it reflects a continuity carried through four generations. Today, Carlo Cravat sees himself as a “keeper of the flame”. The business has been shaped over time through successive extensions.

The family dimension remains central. Carlo Cravat joined the business in 1989, initially focusing on the restaurant, before taking over the full operation after his father’s passing. The hotel maintains a distinctive identity, combining preserved interiors with selective modernisation. Decisions are often guided by long-term value rather than short-term returns.

In your view, what is the main lesson drawn from your experience — or from your ongoing reflections — regarding succession and the engagement of the next generation within your company?

Carlo Cravat. – “I have not drawn any particular lesson, insofar as our son showed an interest in the hospitality and hotel sector in general from a very early stage. After completing his studies, he therefore naturally joined the hotel.

Had that not been the case, I would probably have had to look for a new manager, especially as retirement age is approaching.

If there is one lesson to be drawn, it may be that when the younger generation is properly prepared and involved, it can develop a genuine interest in committing to the family business.

How do you reconcile family expectations with the economic and strategic imperatives of the company, and which trade-offs have been the most decisive?

“In our family of hoteliers, now in its fifth generation, this situation came about quite naturally, while always seeking to combine what is useful with what is enjoyable.

We regularly seek advice from our fiduciary and our law firm in order to best address and optimise the economic issues and specific situations we face.

Which decisions or developments in governance or the professionalisation of management have had the most structuring impact on your company?

“In order to have a more accomplished structure, compliant with European and national tax regulations, we have adapted our organisation to better anticipate and prepare the transmission to future generations.

How does your company manage the tension between respecting its heritage and the need to innovate or transform in order to remain competitive?

“Managing this tension happens quite naturally. As a historic hotel, we have a strong DNA and a deeply rooted identity. We therefore seek to meet the expectations of our current clientele while remaining true to ourselves.

For example, the bar has remained as it was in 1953, while in the back office, all processes are now digitised and optimised.

What have been the most decisive choices in terms of financing growth, and how have they influenced the control and trajectory of the company?

“We do not use external financing and do not wish to open our capital to investors, in order to preserve our independence. Investments are therefore made gradually, according to the family’s capacities and resources.

Recently, a family financial contribution made it possible to renovate several rooms.

At what point did you consider it necessary to accelerate the company’s growth, and what lessons do you draw from this phase of scaling up?

“When costs began to rise, notably because of automatic mechanisms such as wage indexation, as well as rising energy costs, turnover was no longer sufficient to cover all expenses.

We therefore decided to develop new sources of revenue, notably by strengthening our bar activity and launching a mobile bar.

What were the main motivations — and the main challenges — behind your internationalisation strategy?

“The hotel industry in Luxembourg is made up of 98% of international clientele. The local market, for its part, is almost non-existent.

Based on your experience, how can a family business attract and retain key talent in an increasingly competitive environment?

“As a family business, we favour horizontal management and an open mindset, where everyone can express themselves and share their opinion. The framework is therefore more flexible and less formal.

This approach enables us to retain our staff and, consequently, to attract young talent who feel comfortable in this environment.

How has the intensification of international competition in your domestic market transformed your positioning, organisation or strategy?

“Even though international competition is intensifying in Luxembourg and some local businesses are gradually disappearing, we have managed to evolve continuously.

We know our product perfectly, as well as our specific niche, largely made up of loyal customers and long-standing regulars.

We cultivate a style of our own, the opposite of the standardised concepts of international chains already present or currently being established in Luxembourg.”

This article was written for the June 2026 issue of Paperjam magazine, published on 20 May. The content is produced exclusively for the magazine. It is published on the website to contribute to Paperjam’s comprehensive archive. Click on this link to subscribe to the magazine.

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