Amber Inn & Suites Case Study
Case Study #4: Amber Inn & Suites
Work Environment Amber Inn & Suites, Inc., formed in 1979, operates 200 Amber Inn properties and 50 Amber Inn & Suites properties located in 10 states throughout the Rocky Mountain and western states. On Average, each location has approximately 120 individual guest and suite-style rooms. Under a new president and CEO, the goal is for Amber Inn & Suites to reach profitability within two years after five consecutive years of unprofitability. This company is positioned as a limited-service hotel which does not have the amenities such as a restaurant, lounge, or meeting rooms. This type of hotel is classified under a midscale hotel with food and beverage, such as Holiday Inn and Ramada Inn.
Competition
Direct competition to Amber includes other mid-scale hotels in the western and Rocky Mountain states, specifically hotels that are in the same class as Amber which do not possess the extravagant amenities of an on-site restaurant or meeting rooms. For Amber to make its hotel stand out amongst the others is a very difficult task with so many other companies present in this industry. The next level of competition would fall to recreation vehicle parks and camping sites. For the price-conscious individual, this may pose as an easier solution, but does not give someone the comfort of a traditional bed and amenities like television. Also, with a presence in the rocky mountain and western area, weather plays a contributing factor into this scenario. The indirect competition to Amber Inn & Suites is potential company cutbacks and layoffs. This not only affects their business traveler base, but also could affect if individuals have the luxury to travel and stay in a hotel opposed to a relative or friends residence.
Strengths
Location is a key factor to the success of Amber, because the company avoids the downtown areas and has chosen to only be located on sites close to major highways
Work Environment Amber Inn & Suites, Inc., formed in 1979, operates 200 Amber Inn properties and 50 Amber Inn & Suites properties located in 10 states throughout the Rocky Mountain and western states. On Average, each location has approximately 120 individual guest and suite-style rooms. Under a new president and CEO, the goal is for Amber Inn & Suites to reach profitability within two years after five consecutive years of unprofitability. This company is positioned as a limited-service hotel which does not have the amenities such as a restaurant, lounge, or meeting rooms. This type of hotel is classified under a midscale hotel with food and beverage, such as Holiday Inn and Ramada Inn.
Competition
Direct competition to Amber includes other mid-scale hotels in the western and Rocky Mountain states, specifically hotels that are in the same class as Amber which do not possess the extravagant amenities of an on-site restaurant or meeting rooms. For Amber to make its hotel stand out amongst the others is a very difficult task with so many other companies present in this industry. The next level of competition would fall to recreation vehicle parks and camping sites. For the price-conscious individual, this may pose as an easier solution, but does not give someone the comfort of a traditional bed and amenities like television. Also, with a presence in the rocky mountain and western area, weather plays a contributing factor into this scenario. The indirect competition to Amber Inn & Suites is potential company cutbacks and layoffs. This not only affects their business traveler base, but also could affect if individuals have the luxury to travel and stay in a hotel opposed to a relative or friends residence.
Strengths
Location is a key factor to the success of Amber, because the company avoids the downtown areas and has chosen to only be located on sites close to major highways