Hotel objectives

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Hotel original objectives

The hotel has been managed by the Bergman family for a few decades; for the last ten years, daughter Christina Bergman has been the CEO. In 2020 Christina handed over the management to Jill Jandal, her assistant manager for the previous four years. The hotel is doing fine: Occupancy rates and profits are as planned. But recent changes in the industry show that it is in urgent need of new insights, especially in marketing communication. The hotel is getting outdated, so new investments and plans are needed to make the next years of operation successful, according to the goals set by the family:

• stay financially healthy and independent; no outside investments (apart from maybe bank loans related to investments)
• keep all current 100 rooms as hotel rooms, without permanent renting and leasing etc.
• keep hospitality business (i.e. being a hotel) as a core activity
• keep revenu on the same level as recent years: revenues around 2.8 million
• aim for a minimum profit of € 400,000 per year: of course if you 'invest' and incur additional costs, this might not be realistic for one or two years.
• have an average occupancy rate of 50% per year

No matter what the new plans are, the family absolutely wants to stick to these goals.
The family understands, and accepts, that making investments and taking some calculated risks might decrease the revenue and/or profit during a few years. The family is very open to new ideas, as long as they have a solid foundation: They are not so keen on big risks. They realize that their hotel has a number of weak elements. When you look at the building, the grounds and the developments in the market:

• the building, and especially some of the rooms, are outdated
• some of the facilities in the hotel are outdated as well
• the distribution system (resellers, agents) is very old-fashioned
• social media are not effectively used
• the website is a weak element: it is outdated and has poor usability
• there might be even more problems which the family doesn't know about.

New properties

The Bergman family recently purchased three properties similar to their original hotel.

• near the Oceanside
• in the City (uptown)
• on the Mountainside

It can be your assignment to manage one of these new establishments. The original hotel will be your point of reference.

→ Go! Following the Introduction to the Hotel? Step 2/10 is the Bergman family page, click here

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