Amber Inn and Suites Case Analysis

2308 WordsMay 9, 201510 Pages
Running head: AMBER INN AND SUITES CASE ANALYSIS Amber Inn and Suites Case Analysis Davenport University Marketing Strategies Amber Inn and Suites Case Analysis Case Recap Amber Inn and suites, Inc. is a hotel chain with 250 properties scattered throughout 10 Western and Rocky Mountains states. The hotel chain was formed in 1979, and the company operates 200 Amber Inns, and 50 Amber Inn and Suites. Each Inn has the capacity of approximately 150 individual guest rooms or suite units. In fiscal year 2005 the company projected revenues of $422.6 million and with a net loss of $15.7 million. In the spring of 2005 the Senior Vice, Kelly Elizabeth, President of sales and marketing of Amber Inn and suites, Inc. held a meeting with the…show more content…
must focus its strategy in order to rise to the level of the standard of the average hotel industry percentage of 7.6%. Though the company growth rate is above 5.8%, the data shows that Amber Inn and Suites, Inc. is experiencing its third year of significant net loss which runs contrary to the hotel industry's successes. Amber Inn and Suites, Inc. had to shut down two of its locations during the last fiscal year, but shut down more than 12 over the past few years while establishing or opening less. With 250 properties hotel chain in 10 states and a reputation as a company that provides comfortable, or clean, convenient and inexpensive lodging; with limited business orientation, and significant facilities, the company must work hard to attract the right customers in order to survive. (M, Payne &, Ballantyne, 2002, 71) Identifying the Root Problem Components Amber Inn and Suites, Inc. is operating slightly under the industry’s standard of 7.6%. The company has lost available rooms by closing locations which means that its occupancy rate has also dropped and must rise again in order for the company to regain its financial footing, and increase its profitability based on the industry’s standard of 7.6%. Room sales would have to increase significantly in order for Amber Inn and Suites, Inc. to regain stability. The company must also identify the right customer

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