Dreschler Hotel Consultation
December 12, 2010
HTT230 University of Phoenix
I have reviewed the trend analysis for the Dreschler Hotel and competing hotels and find that in comparison to the competing market, Dreschler is well within the numbers on average. Occupancy rate as compared with like hotels appears to be almost par with an average of 99.3 index for the last six month period of 2005. This is stating that on average Dreschler is almost at the same rate of occupancy as other competing hotels. The average daily room rate comes out to a 100.8 index which is stating that the rate being charged daily is at or above what other hotels in this competing industry are charging. The same with…show more content…
Other areas of the establishment could be opened up more for private sitting time or just admiring the beauty surrounding the lodge. Breakfast is served at the door of all rooms by 7 a.m. every morning, and consists of cheeses, fresh fruits, juices, yogurts, and fresh baked pastries. I would like to see a public dining area in the garden for those who wish to dine on their morning pastry and coffee in the comfort of the morning sun.
There are several funding options available since we have no working capital. We could go public and offer shares to raise money to invest into the modifications, but the problem with this is that as a business owner you will not get to keep 100% of the profits; you will be paying your shareholders a dividend. Equity investors will require a percentage of ownership as well as the return on their investment. This can also wind up being costly down the road. Another option is to acquire a loan, but most lending institutes will only lend 60%-70% of the requested amount leaving the borrower having to raise the other 30%-40% in equity. This may not be a bad deal if the equity investor does not demand a large portion of ownership and is patient on returns. Another option is a 7(a) loan since they are the simplest and