GR Hotel Notes
GR Hotels Corporation
To: Andrew Mayd, President and CEO GR Hotels Corporation
From: Chris Mell, CMA
January 30, 2008
Executive Summary
Although GR Hotels enjoyed increasing profits with growing Canadian tourism industry, both hotels performances are under industry benchmark.
Key strategic imitative being reviewed by GR Hotels include upgrading one or both hotels, exercise land option in Montreal and build conference center.
It is recommended that GR upgrade Toronto hotel, exercise land option in Montreal and build conference center. It not only achieves the desired after tax return target of the shareholders but also operating profit required by the Bank of Newfoundland. Furthermore, recommendations on ethical and control issues within hotels in operation, HR issue relating to implementing performance evaluation and incentive compensation systems have been addressed. These steps should allow GR Hotels to have a diversified income streams and enjoy increased financial success in the future.
Introduction
The purpose of this report is to analyze GR Hotels’ current business situation and business opportunities and to recommend a course of action. This report includes a situational analysis, analysis of alternatives, recommendations on strategic and operating issues and implementation plan.
Situational Analysis
Mission
GR Hotels provide clean, comfortable rooms and good quality services to business and pleasure travellers in Toronto and Montreal at competitive prices.
Vision
GR Hotels are the hotels of choice for travelers in Canadian cities.
Stakeholder Preferences
Improve the occupancy rates and attract more business travellers
Target a minimum after-tax return of 15% is required for any proposed investment
Constraint
The Bank of Newfoundland requires GR Hotels’ operating profit must be at least 11% of revenue each year.
SWOT Analysis
Refer to Exhibit 1
KSF
Skilled
To: Andrew Mayd, President and CEO GR Hotels Corporation
From: Chris Mell, CMA
January 30, 2008
Executive Summary
Although GR Hotels enjoyed increasing profits with growing Canadian tourism industry, both hotels performances are under industry benchmark.
Key strategic imitative being reviewed by GR Hotels include upgrading one or both hotels, exercise land option in Montreal and build conference center.
It is recommended that GR upgrade Toronto hotel, exercise land option in Montreal and build conference center. It not only achieves the desired after tax return target of the shareholders but also operating profit required by the Bank of Newfoundland. Furthermore, recommendations on ethical and control issues within hotels in operation, HR issue relating to implementing performance evaluation and incentive compensation systems have been addressed. These steps should allow GR Hotels to have a diversified income streams and enjoy increased financial success in the future.
Introduction
The purpose of this report is to analyze GR Hotels’ current business situation and business opportunities and to recommend a course of action. This report includes a situational analysis, analysis of alternatives, recommendations on strategic and operating issues and implementation plan.
Situational Analysis
Mission
GR Hotels provide clean, comfortable rooms and good quality services to business and pleasure travellers in Toronto and Montreal at competitive prices.
Vision
GR Hotels are the hotels of choice for travelers in Canadian cities.
Stakeholder Preferences
Improve the occupancy rates and attract more business travellers
Target a minimum after-tax return of 15% is required for any proposed investment
Constraint
The Bank of Newfoundland requires GR Hotels’ operating profit must be at least 11% of revenue each year.
SWOT Analysis
Refer to Exhibit 1
KSF
Skilled