Amber Inn & Suites Case Study

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Case Study #4: Amber Inn & Suites

Work Environment Amber Inn & Suites, Inc., formed in 1979, operates 200 Amber Inn properties and 50 Amber Inn & Suites properties located in 10 states throughout the Rocky Mountain and western states. On Average, each location has approximately 120 individual guest and suite-style rooms. Under a new president and CEO, the goal is for Amber Inn & Suites to reach profitability within two years after five consecutive years of unprofitability. This company is positioned as a limited-service hotel which does not have the amenities such as a restaurant, lounge, or meeting rooms. This type of hotel is classified under a midscale hotel with food and beverage, such as Holiday Inn and Ramada Inn.
Competition
Direct competition to Amber includes other mid-scale hotels in the western and Rocky Mountain states, specifically hotels that are in the same class as Amber which do not possess the extravagant amenities of an on-site restaurant or meeting rooms. For Amber to make its hotel stand out amongst the others is a very difficult task with so many other companies present in this industry. The next level of competition would fall to recreation vehicle parks and camping sites. For the price-conscious individual, this may pose as an easier solution, but does not give someone the comfort of a traditional bed and amenities like television. Also, with a presence in the rocky mountain and western area, weather plays a contributing factor into this scenario. The indirect competition to Amber Inn & Suites is potential company cutbacks and layoffs. This not only affects their business traveler base, but also could affect if individuals have the luxury to travel and stay in a hotel opposed to a relative or friends residence.
Strengths
Location is a key factor to the success of Amber, because the company avoids the downtown areas and has chosen to only be located on sites close to major highways

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