Performance Of The Average Daily Rate

The hospitality industry in the United States is one of the fastest growing branches of the market economy. The high growth rates of the hotel industry are caused not only by the growth of internal and external economic ties between countries, but also by the growth of foreign tourism. The modern hotel business in the US is a powerful industry, in the full sense of the word. The entire American hotel industry, in the first place, is designed for the domestic tourism market. For example, in Chicago for a year there are 33 million tourists, and only 2 million of them are foreigners.

According to the American Hotel and Lodging Association, in the year 1900, there were fewer than 10,000 hotels in the US which provided 750,000 to 850,000 rooms. The 2004 figures show that there are 47, 584 hotel properties in the US with 15 rooms or more. There are currently 4,415,696 guestrooms available. The industry had sales of $105.3 billion in 2003, which places average revenue per room at $50.42 with an average occupancy rate

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.

The mission of the hotel is to cater to a professional clientele who is likely to increase the revenues of Amber Inn. These kinds of patrons do not worry about price since most of the times they are covered by the Company they work for and they tend to have a prolonged stay. The necessities of those customers are more regular than the individuals that are on a vacation trip; thus, there is no difficulty to find out what do to. For instance, internet services would suffice those on a business trip whereas those on a leisure trip would worry about entertainment such as live music. Some researchers suggested that, the publicity is unnecessary in determining which hotel to choose. Internet can be a primary factor, as a sales element such as hotels.com. I advise excluding or decreasing ad for almost 4.4 million, lowering the

This was mainly due to the large number of diversified hotels in the chain across the globe

The Sanctuary Hotel, which is located in Adelaide CBD, illustrated in the conducted Profit and Loss Statement its performance based on the day to day operations. The General Manager was indicated to organize a vertical analysis for a Profit and Loss Statement. A vertical analysis is a financial method for a system in which is divided into three categories(assets, liabilities and owner’s equity) in order to estimate the financial status of the business(Investopedia, 2015). While conducting a vertical analysis of the Profit and Loss Statement, the Sanctuary Hotel’s General Manager identified several valuable under performances. The three areas which were affected the most are linens, repairs and maintenance, and uniforms. In this document several suggestions will be addressed for each of the under performance acknowledge in the Sanctuary Profit and Loss Statement.

The MGM Grand in Las Vegas (MGM) and The Venetian (LVS) have both recent undertaken renovations in their rooms, suites and restaurants. A reason for the needed renovations is an attempt to revitalize the glitz and glam status that made these resorts and Las Vegas the gaming capital of the United States. While both organizations are working to expand beyond the Vegas strip it’s imperative that their beginnings are not neglected. “MGM Grand began a $160-million room renovation in February [2012] which includes the property’s 3,570 rooms and 642 suites in the main tower.” Las Vegas Sands isn’t far behind with plans to “renovate approximately a thousand rooms in the Venetian”. (Wharton, 2012) It’s important to note that these ventures are consisting of large undertakings, large amounts of financial investments for the upgrade, and no revenue coming in from these rooms at that time. While this could cause demise for many organizations, history has proven for these investments to reap the benefits of a greater return rate. Renovations have been known to provide a “sea change” to take an organization from tired and lackluster to a primo destination. When in the pursuit of lodging excellency no resort is immune for renovations from time to time. These renovations can span many price points and it can only reap rewards from happier travelers who have better options available at their

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.

Marriott International envisions itself to be the world’s lodging leader. Its mission is to provide the best possible lodging services experience to customers who vary in backgrounds, language, tradition, religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement.  We value our shareholder’s so we will only take steps that will ensure our growth. Most importantly, through our “spirit to serve”, we emphasize the importance of Marriott’s people and recognize the value they bring to the organization’s growth and success. It aims to increase revenues by 9% every year, to increase

It is common knowledge that the prices people have to pay for accommodation in hotels vary enormously. Furthermore, hotel revenue managers probably posses or more or less accurate intuition of what causes room rates to diverge. However, they do not know how Online Travel Agent sites select the leading hotels to be placed on their first search page. In this respect, some determinants are expected to be associated with hotel prices in a more or less linear way. To say it differently, price differences between hotels underscore the presence or not of some variables expected to influence the latter. It is essential for hotels to understand how they can price

To remain profitable, hotels must operate with around 65-70% capacity . Due to seasonality, political and economic events, some hotels are finding it difficult to maintain profitable occupancy levels and have started to provide services along multiple levels within the industry's

Inter Continental Hotels Group was established in 1777, is the world's largest and network distributed most widely professional hotel management group at present. It has many international well-known hotel brands and more than 60 years of international hotel management experience. At the same time Intercontinental Hotel Group is one of the world's largest room occupation (up to 650000), and its transnational operation range most widely distributed in nearly 100 countries.(Hickey, et al., 2014) This essay is an revenue analytic s and revenue management rvc by interviewing the CEO of the IHG.

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

Application of revenue management techniques is perhaps the most important part of hotel operations. In this assignment I will try my best from my learning to provide

Evidence: The authors have an evidence to support the assumption. According to the recent research study by Cyert and March, they discovered that a hotel future can be well forecast with the second year of hotel operations. At this time, the hotel is old and solid with rules and regulations. Moreover, loyal customers will help the hotel in order to increase profit in the