Motel Financial Statement
Motel 6 Financial Statement
Marketing plan for Motel 6
Executive summary
This is to bring to your attention that Motel 6 is flying higher than before and it is venturing more.
This is after a turnaround in our fortunes. You can remember in 1990 when the chain based in Dallas was sinking after its acquisition by Accor S.A. of France from Kohlberg Kravis Roberts & Company, the leveraged buyout firm, for $2.3 billion. Again in 1993, we lost $40 million. However, we are standing tall today for turnaround. In 1996 after the big blow, the company made modest profit of $75 million before taxes but this year the company expects $ 100 million. We can affirm that it has not been easy. However, we are here for the long term.
Motel 6 is now selling franchises. We are not just selling; we are aggressively doing it. This is the most significant change for Motel 6. It is almost a year since we began it but it is a nice strategy of marketing from our qualified marketing staff. We are now using franchising to expand quickly. At the same time, we are spending $ 600 million to renovate our 850, 000 rooms which are in our 781 motels in existence. We are also considering venturing into the extended stay market which will see us offer cheap-priced rooms with separate areas for cooking, sleeping and even working. We understand our reputation and we know because this move has come as a surprise, some people in the hotel industry are now cowering. We have remained steadfast in our services and in our brand for 36 years. Still we will maintain.
Motel 6 has strategically put smaller hotels in smaller towns and communities to add on profits. The company also gets 4% of all franchised property with the name and the logo of motel 6. In bettering our services in our hotels, we have prototype in 27 properties featuring central heating, air conditioning, bathtubs and showers.
People should not think that Motel 6 does not have money to invest in extended stay property. We are just playing
cool
Marketing plan for Motel 6
Executive summary
This is to bring to your attention that Motel 6 is flying higher than before and it is venturing more.
This is after a turnaround in our fortunes. You can remember in 1990 when the chain based in Dallas was sinking after its acquisition by Accor S.A. of France from Kohlberg Kravis Roberts & Company, the leveraged buyout firm, for $2.3 billion. Again in 1993, we lost $40 million. However, we are standing tall today for turnaround. In 1996 after the big blow, the company made modest profit of $75 million before taxes but this year the company expects $ 100 million. We can affirm that it has not been easy. However, we are here for the long term.
Motel 6 is now selling franchises. We are not just selling; we are aggressively doing it. This is the most significant change for Motel 6. It is almost a year since we began it but it is a nice strategy of marketing from our qualified marketing staff. We are now using franchising to expand quickly. At the same time, we are spending $ 600 million to renovate our 850, 000 rooms which are in our 781 motels in existence. We are also considering venturing into the extended stay market which will see us offer cheap-priced rooms with separate areas for cooking, sleeping and even working. We understand our reputation and we know because this move has come as a surprise, some people in the hotel industry are now cowering. We have remained steadfast in our services and in our brand for 36 years. Still we will maintain.
Motel 6 has strategically put smaller hotels in smaller towns and communities to add on profits. The company also gets 4% of all franchised property with the name and the logo of motel 6. In bettering our services in our hotels, we have prototype in 27 properties featuring central heating, air conditioning, bathtubs and showers.
People should not think that Motel 6 does not have money to invest in extended stay property. We are just playing
cool