GR HOTELS INC
Preliminary Report
To: Andrew Mayd, CEO
From: Chris Mell, CMA
Subject: Analysis to increase occupancy rate
Date: January 15th , 2008
Introduction. The report was prepared for GR Hotels Board of Directors review. It examines current opportunities to increase profitability. Several options were examined and the most plausible solution proposed – Upgrade to upscale both hotels. This measure will increase long term profits and improve position in the core business.
GR Hotels current mission and vision :
MISSION: Clean Comfortable rooms(what), good quality service(how) to business and pleasure travellers(who) in Toronto and Montreal (where) at competitive prices ( how).
VISION: GR Hotels
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Current financial forecast states that Canadian economy will decrease slightly to 2.2% in 2008 and then rebound to 2.9% 2009. It is highly unlikely that the price for land in the prime area – Downtown Montreal will decrease. In a year we can revaluate this decision.
c. Sell the land for a quick profit. This alternative will improve GR Hotels financial results, increase ROE, ROI and profit margin. It will increase GR Hotels cash and liquidity, helping to move into new direction. However, benefits are short term. The management team will benefit from better salaries and bonuses for 2008.
STRATEGIC ALTERNATIVE 2 – UPGRADE HOTELS TO UPSCALE
(Please refer to Appendix 5)
This alternative has positive Net Present Value. GR Hotels Gross profit margins stands at 27% well above required by bank 11% to secure the funding. GR Hotels has a reliable contractor Larson. His pricing is always within the budget and all contracted projects were delivered on time. It makes sense to upgrade both hotels since booking and administration grow 20% regardless the # of hotels upgraded. This alternative will improve occupancy rate to 72% in Montreal and 75% in Toronto It is above industry average for upscale hotels. In room and restaurant service will bring additional incremental revenue. Guests will spend additional 10%. This option will have a big impact on restaurant personnel.
RECOMMENDATION:
Based on qualitative and quantitative analyses
Located outside of the beautiful Yellowstone Park is the Grizzly Bear Lodge. Owned by Diane and Rudy Conrad, Grizzly Bear Lodge has 15 rooms that can accommodate up 40 guests with some rooms specially setup for families. It is a seasonal company, which operates from April to November and the busy tourist season starting in May and ending in September. An opportunity has surfaced which will allow Diane and Rudy the ability to expand by purchasing the property next door. The purpose of this paper is to show how now and in the future Grizzly Bear Lodge can ensure guest satisfaction, what budget considerations can be taken for the expansion and how market controls can implement their expansion.
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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
This is an assessment of the different costs and benefits of two mutually exclusive capital projects involving the use of an underutilized space located on the second floor of the main building of Phuket Beach Hotel (PBH). The first project, Planet Karaoke Pub (PKP) offered to sign a four-year lease agreement with (PBH) while the second project, Beach Karaoke Pub (BKP), is a pub the PBH itself, plans to put up and to operate for six years. PKP proposed to pay a monthly rental of 170,000 baht for the first two years with a 5 % increment for the next two years. Renovation costs for PKP ranged between 770,000 and 1,000,000 baht. PKP will be charged
Over the next several years, the owners debated how (and if) the hotel should be developed. Canadian Pacific Hotels came to the rescue in 1988 when it bought the chain of CN hotel properties. A total commitment was made to restore Hotel Macdonald to its former elegance and to re-establish its importance in the community.
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.
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1. Project Chariot involves a conflict of interests. Describe this conflict, who it is between, and who stand to gain or lose from this project.
is one of Canada’s top hoteliers in the mid-market, owning interests in 16 hotels in Canada and the United States. Furthermore NGI is in ownership of 2,200 rooms in 17 hotels across Canada and the United States. The Company is expert in all facets of the hotel business, from marketing to building to management. Focused on creating the best return and value for all stakeholders, Northampton’s market-sensitive strategy is to acquire or build hotels that provide great value and superior accommodation. Gratefully, NGI excels in this sector by offering services that exceed expectations while still posting industry-leading margins. Besides acquiring and developing undervalued and underutilized hotel assets, NGI also provides superior overnight accommodations at mid-market prices. This has been done through aggressive marketing, re-branding and ongoing hotel upgrades.
Maverick Lodging is a hotel management company that manages the day-to-day operations of third party franchisees of the Marriott Corporation. The company has recently implemented a balanced scorecard in an effort to align company strategy, structure, performance measurements, and incentives. The organization strategy involves growth in revenue and customer base with the use of differentiation. Issues with the current scorecard and its measures have been identified. Alternative solutions have been researched. A recommended course of action is presented that will allow Maverick Lodging to achieve its strategic goals and objectives.
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The Hotel is situated in the bustling East Cork market town of Midleton, located just 14 miles (15 mins drive)
Cindy is the director of human resources. She has been a working member of the
The following report was derived from the primary use of secondary sources, in addition to telephone contact with hotel representatives. Secondary sources included research from the Internet, industry books, company marketing communications, trade and general business newspapers and magazines, among others. Through all the sources, relevant data and information was extracted into the report's appendices. After individual analysis and group discussion, the following report was devised. The mandate of this report is to provide a macro examination of the luxury hotel industry and specifically the future outlook of Four Seasons Hotel and Resorts, Inc.
order to make use of their synergies. Price for the Hotel and Entertainment divisions is