Beachside Hotel Human Capital Dilemma

The following report is a detailed analysis and diagnosis of the current situation at The Stonington Beach Hotel, Bermuda. Many aspects are considered that include the effect that maintaining the property has on human resources, marketing and the organizational structure of the business. Recommendations are made and then discussed further.

After 15 years has passed, the general manager decided to retire and decided to sell this magnificent place to a large American hotel chain that was somewhat similar to what they have experience with their hotel thus far. The new American chain hotel decided to keep all 700 employees and promoted a few people in different positions. One of the spots filled was an American man named John Becker. He was promoted to general manager over this hotel because of his prior experiences. The hotels that John previously worked at was underprivileged, and in horrible shape when John took over. Then later he made it a successful hotel.

They upgrading a hotel first upgraded employee facilities. When a survey at London hotel showed dissatisfaction with workers’ areas, installed new floors, lockers, and showers within three months. Four-seasons needed to get it down to the front line: clerks, bell-staff, bartenders, waiters, cooks, housekeepers, and dishwashers, the lowest-paid and in most companies the least-motivated people, but the ones who would make or break a five-star service reputation. Four-seasons needs employees able and willing to respond on their own to whatever comes up, employees who can spot, solve, and even anticipate problems. That means delegating authority as well as responsibility. Four-seasons pay attention on how to treat employees and make them feel confortable when they work in hotel because employees could bring positive attitude towards customers if they in good mood.

While obtaining background information about the client, the staff person learned from the Asheville hotel manager that the Asheville hotel was closed for one week in October because of flooding. Amanda has assessed inherent risk as high and control risk as low for the existence, completeness, and accuracy of sleeping room revenues based on challenging but improving regional and national economic conditions and favorable control procedures associated with sleeping room revenues. Further, after

Marriott is renowned for its elegant and comfortable hotels and resorts. The company caters to a targeted customer base, ranging from the frequent corporate business traveler to the family enjoying their occasional weekend get-away. Marriott has continued its rise in the lodging, contract services, and restaurant industries. The company continuously strives to meet the needs and wants of its customers while strategically maneuvering the rigors of today’s competitive and ever-evolving market of glamorous destinations and convenient services. In order to remain relevant in a highly-competitive environment, Marriott must strike that successful balance of minimizing costs, and gaining and effectively

J.W. Marriott Jr., the company's chairman and chief executive added," occupancy and room rates improved due to accelerating corporate demand, growing group meeting attendance and increasing global travel." (Washington Post)

The hotel chain, Astor Lodge and Suites, Inc., operates 250 properties in 10 western and Rocky Mountain states. The company’s customer base primarily comprises business travelers. In addition, the locations of the properties surround airports, large regional shopping centers, and major highways close to suburban industrial sites as well as office complexes. Projections of 2005 fiscal year forecast a fifth consecutive year of a gross loss for the firm. The estimates include an anticipated $422.6 million in company lodging revenues but a net loss of $15.7 million for 2005. As a result, Joseph James, president and CEO of Astor Lodge and Suites, Inc., initiated a challenging goal for executive management to devise a strategy achieving net profits in two years and sustaining positive growth in the future.

Amber Inn & Suite, Inc. was built in 1979 and is composed of 250 hotels chain empire of which each consisting an average of 120 exquisite guest rooms or suite units. The profits are $422.6 million and deficits of $15.7 million. The Amber Inns & Suite have total of 30,000 rooms. The Company’s objective is to cater mainly to professional clienteles that are traveling with fabulous guest rooms at an economical price. Amber Inn & Suites, Inc. is located in areas amid ten western and Rocky Mountain States with two hundred fifty numerous property hotel chains. In most cases, each property is made up of one hundred twenty single guest rooms or suite units. Amber Inn & Suites Inc. positions its properties on prime areas such as major

Hilton Hotels is one of the biggest players in the US lodging industry. It contributes to about 9% of the total rooms in US lodging market. It has presence in over 78 countries with more than 2500 hotels. Lodging industry is highly capital intensive industry, so to reduce capital expenditure Hilton Hotels opted for self-owned Hotels as well as franchising model with the real estate owners. One of the key features of lodging industry is low switching costs for customers. There is very little margin to differentiate from the major competitors in the industry which include Marriott international, IHG, Accor etc.

Due to the uncertain economic and financial situation in 2008, the Marketing Department of the Terminus Hotel forecasted an average occupation level of 40% during 2009. In November 2008, the department received two offers from regular customers, the first at a rate of €90 for 10 rooms per day, and the second at a rate of €95 for 5 rooms per day. Both offers were rejected.

What factors lead to variations in demand for rooms at a hotel such as the Accra Beach?

In 2008, Manmohan Shetty, Director of Business Development for Days Inn Worldwide Inc., described the hotel industry as a monopolistic competition because it has the following attributes: many sellers, differentiated products, multiple dimensions of competition, and easy entry of new firms in the long run.

The Ritz-Carlton Hotel Company operates within the upscale & luxury hotel industry. While it could be argued that Ritz-Carlton operates in the more broad and inclusive lodging industry, they offer a highly differentiated product and service and therefore find themselves operating in an exclusive industry alongside very few direct competitors, such as Four Seasons Hotels, HongKong and Shanghai Hotels, and Starwood Hotels & Resorts. Therefore when analyzing this industry I will not be including cheap hotels, motels, lodges, or inns, unless to offer potential substitutes to luxury hotels. In order to assess the attractiveness of the upscale & luxury hotel industry, an analysis of the general environment surrounding the industry must be

Strengths * Considered to be one of the most prestigious hotels in Bangkok. * Maintains a five-star rating. * Employs 700 people who have all worked for the hotel under its previous management. * Employees are knowledgeable of how the hotel should operate. * The new manager, John Becker, does have 10 years of experience

Chan, ESW & Wong, SCK 2006, ‘Hotel selection: when price is not the issue’, Journal of Vacation Marketing, vol. 12, no. 2, pp. 142-159, (Online Sage).