GR Hotel- Business Report
Date: February 7, 2014
To: Andrew Mayd, President and CEO, GR Hotel
From: Chris Mell, CMA
Subject: Occupancy rate improvement and organizational issues solutions
EXECUTIVE SUMMARY
GR Hotel Corporation (GR) is a privately-owned company that has been founded by a German family in the late 1980s. It operates two large mid-scale hotels in downtown Montreal and Toronto airport location. They are well-known for offering good quality services that rarely can be provided by mid-scale hotels.
Recently the accommodation industry is experiencing rapid changes in demand for up-scale and luxury services. Therefore, board of directors decided to alter the GR’s corporate goals to improve occupancy rates by attracting more business travellers which are the main up-scale service users.
INTRODUCTION
This report provides a comprehensive analysis on the GR Hotels current situation and available alternatives to improve the business efficiency and sustainability.
SITUATIONAL ANALYSIS
Vision: GR Hotels are the choice for travellers in Canadian cities.
Mission: GR Hotels provide clean, comfortable rooms and good quality services to business and pleasure travellers in Toronto and Montreal at competitive price.
STRATEGIC GOALS
GR’s new corporate goal is improving the occupancy rates and attracting more business travellers.
SWOT ANALYSIS
SWOT analysis has been demonstrated in Appendix 12.
CONSTRAINTS
GR shareholders have determined 15% after tax return
Bank of Newfoundland has indicated that Company’s operating profit must be at least 11% of revenues yearly
KEY SUCCESS FACTORS
1. Good locations
2. Reputation in offering good quality services
3. Good management team
4. Experienced employees
5. Central on-line booking
6. Change in industry demand for more luxurious services
7. Increasing trend in using on-line services
8. Growth in Canadian economy
KEY RISK FACTORS
1. In-efficient internal controls
2. Ethical offers by Mell
3. Conflict
To: Andrew Mayd, President and CEO, GR Hotel
From: Chris Mell, CMA
Subject: Occupancy rate improvement and organizational issues solutions
EXECUTIVE SUMMARY
GR Hotel Corporation (GR) is a privately-owned company that has been founded by a German family in the late 1980s. It operates two large mid-scale hotels in downtown Montreal and Toronto airport location. They are well-known for offering good quality services that rarely can be provided by mid-scale hotels.
Recently the accommodation industry is experiencing rapid changes in demand for up-scale and luxury services. Therefore, board of directors decided to alter the GR’s corporate goals to improve occupancy rates by attracting more business travellers which are the main up-scale service users.
INTRODUCTION
This report provides a comprehensive analysis on the GR Hotels current situation and available alternatives to improve the business efficiency and sustainability.
SITUATIONAL ANALYSIS
Vision: GR Hotels are the choice for travellers in Canadian cities.
Mission: GR Hotels provide clean, comfortable rooms and good quality services to business and pleasure travellers in Toronto and Montreal at competitive price.
STRATEGIC GOALS
GR’s new corporate goal is improving the occupancy rates and attracting more business travellers.
SWOT ANALYSIS
SWOT analysis has been demonstrated in Appendix 12.
CONSTRAINTS
GR shareholders have determined 15% after tax return
Bank of Newfoundland has indicated that Company’s operating profit must be at least 11% of revenues yearly
KEY SUCCESS FACTORS
1. Good locations
2. Reputation in offering good quality services
3. Good management team
4. Experienced employees
5. Central on-line booking
6. Change in industry demand for more luxurious services
7. Increasing trend in using on-line services
8. Growth in Canadian economy
KEY RISK FACTORS
1. In-efficient internal controls
2. Ethical offers by Mell
3. Conflict