EMPIRE HOTEL
Business hotel, Restaurant & Bar
Based in HOTS-city
HOTS Final Report
23-11-2019
Emmy Teunissen
Tamar Schot
Fleur Bol-Raap
Richard Rozel
Sander van Bochove
Hotel- and Eventmanagement 3
Tio University of Applied Sciences
N. Bajnath
,Content
Inhoudsopgave
1 Summary and Conclusions (GM).................................................................................................................. 6
Management team...............................................................................................................................................6
1.1 Evaluation initial hotel strategy Year 1..........................................................................................................6
1.1.1 Evaluation competition results................................................................................................................6
1.1.2 Evaluation targets set for Year 1.............................................................................................................6
1.1.3 Conclusions positioning strategy Year 1..................................................................................................7
1.2 Investments and GM choices during 4 year...................................................................................................8
1.2.1 Investment choices..................................................................................................................................8
1.2.2 Star-ranking.............................................................................................................................................9
1.3 Description general developments...............................................................................................................10
1.3.1 Internal developments..........................................................................................................................10
1.3.2 Developments in the local market........................................................................................................10
1.3.3 Changes in the overall hotel strategy....................................................................................................11
1.4 Summary results and overall conclusions Year 0 – Year 3............................................................................11
1.4.1 Development total revenue..................................................................................................................11
1.4.2 Market Share.........................................................................................................................................12
1.4.3 Indices OCC, ADR and RevPAR...............................................................................................................12
1.4.4 Evaluation general hotel development.................................................................................................13
1.4.5 Advise to the new management team Year 4.......................................................................................13
1.5 Conclusions hotel competition results..........................................................................................................14
1.6 Reflection on the team process and team performance..............................................................................15
2 Marketing and Sales (MM)........................................................................................................................ 16
2.1 Evaluation initial marketing strategy Year 1................................................................................................16
2.1.1 Evaluation marketing and sales results.................................................................................................16
2.1.2 Conclusions marketing strategy Year 1.................................................................................................18
2.2 Marketing choices during 4 year..................................................................................................................18
2.2.1 Advertising budget and campaigns.......................................................................................................18
2.2.2 Online and Social Media activities.........................................................................................................19
2.3 Description marketing developments...........................................................................................................20
2.3.1 Internal developments..........................................................................................................................20
2.3.2 External developments..........................................................................................................................20
2.3.3 Changes in the overall hotel strategy....................................................................................................20
2.4 Summary results and overall conclusions Year 0 – Year 3............................................................................20
2.4.1 Total revenues and cost percentages....................................................................................................20
2.4.2 Occupancy rooms and restaurant.........................................................................................................21
2.4.3 Public Awareness and Market Image....................................................................................................21
2.5 Conclusions Marketing strategy...................................................................................................................22
2.5.1 Strengths and weakness in the applied marketing strategy.................................................................22
2.5.2 General conclusions results Marketing & Sales....................................................................................22
2.5.3 Advise to the new management team Year 4.......................................................................................22
3 Financial Management (FM)...................................................................................................................... 23
3.1 Evaluation initial financial strategy Year 1...................................................................................................23
2
, 3.1.1 Evaluation financial prognosis and bank loan.......................................................................................23
3.1.2 Evaluation financial control Year 1........................................................................................................24
3.2 Financial choices during 4 year.....................................................................................................................24
3.2.1 Control of expenses...............................................................................................................................24
3.2.2 Loan repayment.....................................................................................................................................25
3.3 Description financial developments.............................................................................................................26
3.3.1 Internal developments..........................................................................................................................26
3.3.2 Liquidity and working capital................................................................................................................26
3.4 Summary results and overall conclusions Year 0 – Year 3............................................................................27
3.4.1 Balance Sheets and development liquidity and solvability ratios.........................................................27
3.4.2 Cash Flow Statements...........................................................................................................................31
3.4.3 Statements of Income and development ROCE....................................................................................34
3.5 Conclusions financial strategy......................................................................................................................36
3.5.1 Strengths and weakness in the applied financial strategy....................................................................36
3.5.2 General conclusions financial results....................................................................................................36
3.5.3 Advise to the new management team Year 4.......................................................................................36
4 Rooms Division (RDM)............................................................................................................................... 37
4.1 Evaluation initial rooms division quality strategy Year 1.............................................................................37
4.1.1 Evaluation rooms division results..........................................................................................................37
4.1.2 Evaluation targets set for Year 1...........................................................................................................37
4.1.3 Conclusions quality strategy Year 1.......................................................................................................37
4.2 Guest Comfort and Refurbishment choices during 4 year............................................................................37
4.2.1 Guest Comfort choices..........................................................................................................................37
4.2.2 Refurbishment choices..........................................................................................................................37
4.3 Description rooms division developments....................................................................................................38
4.3.1 Internal developments..........................................................................................................................38
4.3.2 Acquisition of a star-ranking..................................................................................................................38
4.4 Summary results and overall conclusions Year 0 – Year 3............................................................................38
4.4.1 Hotel Quality and star-ranking..............................................................................................................38
4.4.2 Guest satisfaction..................................................................................................................................38
4.4.3 Refurbishment status............................................................................................................................38
4.4.4 Costs percentages Guest Comfort and Refurbishment.........................................................................39
4.5 Conclusions hotel quality strategy................................................................................................................40
4.5.1 Strengths and weakness in the applied rooms division strategy..........................................................40
4.5.2 General conclusions results Rooms Division.........................................................................................40
4.5.3 Advise to the new management team Year 4.......................................................................................40
5 Rates and revenue management (RevM)................................................................................................... 41
5.1 Evaluation initial pricing and revenue management strategy Year 1..........................................................41
5.1.1 Evaluation room revenue results..........................................................................................................41
5.1.2 Evaluation targets set for Year 1...........................................................................................................41
5.1.3 Conclusions pricing and revenue management strategy Year 1...........................................................41
5.2 Pricing strategy choices during 4 year..........................................................................................................42
5.2.1 Hotel room prices..................................................................................................................................42
5.2.2 Discounts...............................................................................................................................................42
5.2.3 Arrangement prices and split revenues................................................................................................43
5.2.4 Contract price settings and results........................................................................................................43
5.3 Revenue management choices.....................................................................................................................44
5.3.1 Late booking settings.............................................................................................................................44
5.3.2 Letting limits arrangements...................................................................................................................45
3
, 5.3.3 Overbooking settings.............................................................................................................................45
5.3.4 Channel use, discounts and letting limits..............................................................................................45
5.4 Evaluation revenue management developments.........................................................................................46
5.4.1 Influence internal developments..........................................................................................................46
5.4.2 Influence competitor developments.....................................................................................................46
5.4.3 Changes in the overall hotel strategy....................................................................................................46
5.5 Summary results and overall conclusions Year 0 – Year 3............................................................................47
5.5.1 Occupancy hotel rooms.........................................................................................................................47
5.5.2 ADR hotel rooms....................................................................................................................................47
5.5.3 RevPAR...................................................................................................................................................48
5.6 Conclusions pricing and revenue management strategy.............................................................................49
5.6.1 Strengths and weakness in the applied strategies................................................................................49
5.6.2 General conclusions results Revenue Management.............................................................................49
5.6.3 Advise to the new management team Year 4.......................................................................................50
6 Food and Beverage (FBM)......................................................................................................................... 51
6.1 Evaluation initial Food & Beverage strategy Year 1.....................................................................................51
6.1.1 Evaluation F&B revenue results............................................................................................................51
6.1.2 Evaluation targets set for Year 1...........................................................................................................51
6.1.3 Conclusions F&B strategy Year 1...........................................................................................................52
6.2 F&B pricing and quality choices during 4 year.............................................................................................52
6.2.1 Menu and liquor prices.........................................................................................................................52
6.2.2 Menu quality.........................................................................................................................................53
6.3 Description Food & Beverage developments................................................................................................53
6.3.1 Internal developments..........................................................................................................................53
6.3.2 Developments in the local F&B market.................................................................................................53
6.4 Summary results and overall conclusions Year 0 – Year 3............................................................................54
6.4.1 F&B revenue, occupancy and ADR Meals.............................................................................................54
6.4.2 Cost of Food sales, Cost of Beverage sales and Gross Profit percentages............................................55
6.5 Conclusions Food & Beverage strategy........................................................................................................56
6.5.1 Strengths and weakness in the applied Food & Beverage strategy......................................................56
6.5.2 General conclusions results Food & Beverage......................................................................................56
6.5.3 Advise to the new management team Year 4.......................................................................................56
7 Human resource Management (HRM)....................................................................................................... 57
7.1 Evaluation initial Human Resource Management strategies Year 1............................................................57
7.1.1 Evaluation staff KPI results....................................................................................................................57
7.1.2 Evaluation targets set for Year 1...........................................................................................................57
7.1.3 Conclusions marketing strategy Year 1.................................................................................................57
7.2 Human Resource Management choices during 3 years...............................................................................57
7.2.1 Staff planning.........................................................................................................................................57
7.2.2 Staff training..........................................................................................................................................58
7.2.3 Staff paylevel.........................................................................................................................................58
7.3 Description staff developments....................................................................................................................58
7.3.1 Internal developments..........................................................................................................................58
7.3.2 External labour market developments..................................................................................................59
7.4 Summary human resource management results and conclusions Year 0 – Year 3......................................59
7.4.1 Staff quality............................................................................................................................................59
7.4.2 Guest satisfaction and staff turnover....................................................................................................59
7.4.3 Staff costs percentages per department...............................................................................................59
7.5 Conclusions human resource management strategies................................................................................60
4
Business hotel, Restaurant & Bar
Based in HOTS-city
HOTS Final Report
23-11-2019
Emmy Teunissen
Tamar Schot
Fleur Bol-Raap
Richard Rozel
Sander van Bochove
Hotel- and Eventmanagement 3
Tio University of Applied Sciences
N. Bajnath
,Content
Inhoudsopgave
1 Summary and Conclusions (GM).................................................................................................................. 6
Management team...............................................................................................................................................6
1.1 Evaluation initial hotel strategy Year 1..........................................................................................................6
1.1.1 Evaluation competition results................................................................................................................6
1.1.2 Evaluation targets set for Year 1.............................................................................................................6
1.1.3 Conclusions positioning strategy Year 1..................................................................................................7
1.2 Investments and GM choices during 4 year...................................................................................................8
1.2.1 Investment choices..................................................................................................................................8
1.2.2 Star-ranking.............................................................................................................................................9
1.3 Description general developments...............................................................................................................10
1.3.1 Internal developments..........................................................................................................................10
1.3.2 Developments in the local market........................................................................................................10
1.3.3 Changes in the overall hotel strategy....................................................................................................11
1.4 Summary results and overall conclusions Year 0 – Year 3............................................................................11
1.4.1 Development total revenue..................................................................................................................11
1.4.2 Market Share.........................................................................................................................................12
1.4.3 Indices OCC, ADR and RevPAR...............................................................................................................12
1.4.4 Evaluation general hotel development.................................................................................................13
1.4.5 Advise to the new management team Year 4.......................................................................................13
1.5 Conclusions hotel competition results..........................................................................................................14
1.6 Reflection on the team process and team performance..............................................................................15
2 Marketing and Sales (MM)........................................................................................................................ 16
2.1 Evaluation initial marketing strategy Year 1................................................................................................16
2.1.1 Evaluation marketing and sales results.................................................................................................16
2.1.2 Conclusions marketing strategy Year 1.................................................................................................18
2.2 Marketing choices during 4 year..................................................................................................................18
2.2.1 Advertising budget and campaigns.......................................................................................................18
2.2.2 Online and Social Media activities.........................................................................................................19
2.3 Description marketing developments...........................................................................................................20
2.3.1 Internal developments..........................................................................................................................20
2.3.2 External developments..........................................................................................................................20
2.3.3 Changes in the overall hotel strategy....................................................................................................20
2.4 Summary results and overall conclusions Year 0 – Year 3............................................................................20
2.4.1 Total revenues and cost percentages....................................................................................................20
2.4.2 Occupancy rooms and restaurant.........................................................................................................21
2.4.3 Public Awareness and Market Image....................................................................................................21
2.5 Conclusions Marketing strategy...................................................................................................................22
2.5.1 Strengths and weakness in the applied marketing strategy.................................................................22
2.5.2 General conclusions results Marketing & Sales....................................................................................22
2.5.3 Advise to the new management team Year 4.......................................................................................22
3 Financial Management (FM)...................................................................................................................... 23
3.1 Evaluation initial financial strategy Year 1...................................................................................................23
2
, 3.1.1 Evaluation financial prognosis and bank loan.......................................................................................23
3.1.2 Evaluation financial control Year 1........................................................................................................24
3.2 Financial choices during 4 year.....................................................................................................................24
3.2.1 Control of expenses...............................................................................................................................24
3.2.2 Loan repayment.....................................................................................................................................25
3.3 Description financial developments.............................................................................................................26
3.3.1 Internal developments..........................................................................................................................26
3.3.2 Liquidity and working capital................................................................................................................26
3.4 Summary results and overall conclusions Year 0 – Year 3............................................................................27
3.4.1 Balance Sheets and development liquidity and solvability ratios.........................................................27
3.4.2 Cash Flow Statements...........................................................................................................................31
3.4.3 Statements of Income and development ROCE....................................................................................34
3.5 Conclusions financial strategy......................................................................................................................36
3.5.1 Strengths and weakness in the applied financial strategy....................................................................36
3.5.2 General conclusions financial results....................................................................................................36
3.5.3 Advise to the new management team Year 4.......................................................................................36
4 Rooms Division (RDM)............................................................................................................................... 37
4.1 Evaluation initial rooms division quality strategy Year 1.............................................................................37
4.1.1 Evaluation rooms division results..........................................................................................................37
4.1.2 Evaluation targets set for Year 1...........................................................................................................37
4.1.3 Conclusions quality strategy Year 1.......................................................................................................37
4.2 Guest Comfort and Refurbishment choices during 4 year............................................................................37
4.2.1 Guest Comfort choices..........................................................................................................................37
4.2.2 Refurbishment choices..........................................................................................................................37
4.3 Description rooms division developments....................................................................................................38
4.3.1 Internal developments..........................................................................................................................38
4.3.2 Acquisition of a star-ranking..................................................................................................................38
4.4 Summary results and overall conclusions Year 0 – Year 3............................................................................38
4.4.1 Hotel Quality and star-ranking..............................................................................................................38
4.4.2 Guest satisfaction..................................................................................................................................38
4.4.3 Refurbishment status............................................................................................................................38
4.4.4 Costs percentages Guest Comfort and Refurbishment.........................................................................39
4.5 Conclusions hotel quality strategy................................................................................................................40
4.5.1 Strengths and weakness in the applied rooms division strategy..........................................................40
4.5.2 General conclusions results Rooms Division.........................................................................................40
4.5.3 Advise to the new management team Year 4.......................................................................................40
5 Rates and revenue management (RevM)................................................................................................... 41
5.1 Evaluation initial pricing and revenue management strategy Year 1..........................................................41
5.1.1 Evaluation room revenue results..........................................................................................................41
5.1.2 Evaluation targets set for Year 1...........................................................................................................41
5.1.3 Conclusions pricing and revenue management strategy Year 1...........................................................41
5.2 Pricing strategy choices during 4 year..........................................................................................................42
5.2.1 Hotel room prices..................................................................................................................................42
5.2.2 Discounts...............................................................................................................................................42
5.2.3 Arrangement prices and split revenues................................................................................................43
5.2.4 Contract price settings and results........................................................................................................43
5.3 Revenue management choices.....................................................................................................................44
5.3.1 Late booking settings.............................................................................................................................44
5.3.2 Letting limits arrangements...................................................................................................................45
3
, 5.3.3 Overbooking settings.............................................................................................................................45
5.3.4 Channel use, discounts and letting limits..............................................................................................45
5.4 Evaluation revenue management developments.........................................................................................46
5.4.1 Influence internal developments..........................................................................................................46
5.4.2 Influence competitor developments.....................................................................................................46
5.4.3 Changes in the overall hotel strategy....................................................................................................46
5.5 Summary results and overall conclusions Year 0 – Year 3............................................................................47
5.5.1 Occupancy hotel rooms.........................................................................................................................47
5.5.2 ADR hotel rooms....................................................................................................................................47
5.5.3 RevPAR...................................................................................................................................................48
5.6 Conclusions pricing and revenue management strategy.............................................................................49
5.6.1 Strengths and weakness in the applied strategies................................................................................49
5.6.2 General conclusions results Revenue Management.............................................................................49
5.6.3 Advise to the new management team Year 4.......................................................................................50
6 Food and Beverage (FBM)......................................................................................................................... 51
6.1 Evaluation initial Food & Beverage strategy Year 1.....................................................................................51
6.1.1 Evaluation F&B revenue results............................................................................................................51
6.1.2 Evaluation targets set for Year 1...........................................................................................................51
6.1.3 Conclusions F&B strategy Year 1...........................................................................................................52
6.2 F&B pricing and quality choices during 4 year.............................................................................................52
6.2.1 Menu and liquor prices.........................................................................................................................52
6.2.2 Menu quality.........................................................................................................................................53
6.3 Description Food & Beverage developments................................................................................................53
6.3.1 Internal developments..........................................................................................................................53
6.3.2 Developments in the local F&B market.................................................................................................53
6.4 Summary results and overall conclusions Year 0 – Year 3............................................................................54
6.4.1 F&B revenue, occupancy and ADR Meals.............................................................................................54
6.4.2 Cost of Food sales, Cost of Beverage sales and Gross Profit percentages............................................55
6.5 Conclusions Food & Beverage strategy........................................................................................................56
6.5.1 Strengths and weakness in the applied Food & Beverage strategy......................................................56
6.5.2 General conclusions results Food & Beverage......................................................................................56
6.5.3 Advise to the new management team Year 4.......................................................................................56
7 Human resource Management (HRM)....................................................................................................... 57
7.1 Evaluation initial Human Resource Management strategies Year 1............................................................57
7.1.1 Evaluation staff KPI results....................................................................................................................57
7.1.2 Evaluation targets set for Year 1...........................................................................................................57
7.1.3 Conclusions marketing strategy Year 1.................................................................................................57
7.2 Human Resource Management choices during 3 years...............................................................................57
7.2.1 Staff planning.........................................................................................................................................57
7.2.2 Staff training..........................................................................................................................................58
7.2.3 Staff paylevel.........................................................................................................................................58
7.3 Description staff developments....................................................................................................................58
7.3.1 Internal developments..........................................................................................................................58
7.3.2 External labour market developments..................................................................................................59
7.4 Summary human resource management results and conclusions Year 0 – Year 3......................................59
7.4.1 Staff quality............................................................................................................................................59
7.4.2 Guest satisfaction and staff turnover....................................................................................................59
7.4.3 Staff costs percentages per department...............................................................................................59
7.5 Conclusions human resource management strategies................................................................................60
4
