Regal Hotel Case Study

Dan Cohrs, the vice president of project finance at Marriott Corporation, is preparing his annual recommendations for the hurdle rates for each of Marriott’s three divisions: lodging, contract services, and restaurants. However, this is a complicated process because finding beta, cost of debt, and cost of equity in order to find weighted average cost of capital, or WACC, must be calculated using proxy firms and divisional data.

Marriott's sales grew up by 24% and its return on equity stood at 22% in the year 1987, the sales and earnings per share has doubled over the previous year as stated in the case study.

In Bangkok, Thailand, a group of financial investors invested in a hotel called The Regency Grand Hotel. This hotel is the most cherished hotel in town, where the employees and guests enjoy spending time at this five-star hotel. This place hosts approximate 700 employees that give fantastic benefits, year-end bonuses and ensures job security.

The Regal Carnation Hotel in Guam is suffering customer service failures. Additionally, the expectations set forth by Regal Carnation Hotel’s website are not being met.

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

The Regal Carnation Hotel is a relatively new semi-beachfront three-star property with 150 standard rooms. Situated across a two-lane road from the seafront, most Regal Carnation guests make use of the beach facilities of other hotels for a certain fee or use the small stretches of unkempt public beach between the adjacent hotels. The Regal Carnation was built after the first wave of hotel-building in Guam in the 1980s when it became apparent that the tourism industry was a growing success. Faced by the current plateau in Guam Tourism life cycle, however, Regal Carnation must now confront its position in the marketplace.

The Regal Carnation Hotel owners run the company on the “me too” approach, in an attempt to piggyback off the success of other hotels in Guam. With this as their business strategy ownership is less likely to invest in the hotel. Also, having the policy of all cash upfront with a non-refundable policy leads to believe they are less likely interested in a high value for customer experience and hold low stock on repeat business. They have a weaker product within a lower star hotel, that has no beach front access, being late to the market.

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.

This case introduces the Regal Carnation Hotel in Guam. The perspective is from Steve McKenzie and how he details his experience with the Regal Carnation Hotel. In his depiction of the events that ensued, the fundamental issue consisted of the fact that the hotel followed a fundamentally unsound approach which is termed, “me too”. This decision by the management of the hotel proceeded to be a strong reason why he, as a customer, received poor service, and also why he was a victim of the hotel’s false representation. The “me too” approach coupled with poor timing on a global tourism scale in the territory of Guam, resulted in a pricing plan that did not match the value of the hotel. The hotel industry in Guam has

The company 's vision is to become the world 's benchmark not just in the hotel industry but in the global business field. With our desire to exceed expectations, and our

As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business

Report projects population growth as well as retail sales growth, along with a demand for additional hotels. Such growth will increase demand for other services and products. Also, with emphasis on room types, outdoor or indoor rooms, overlooking the beach.

NGI opened its first select-service hotel in 2008 as a first initiative of its strategy in order to increase the quality of the properties in its portfolio to select-service a more upscale hotels. Furthermore NGI had earned numerous awards for its achievements in service and operating abilities over their years of existence. NGI’s share price has dropped over the past few years, despite the good reputation they have. The Global Economic Crisis has been a consequence for NGI’s difficult economic conditions. This resulted in management and shareholders concerns that the company was undervalued. NGI’s

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

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).