Sal Ltd Case

Case Recap Amber Inn & Suites is a 250 property hotel chain located in 10 western and Rocky Mountain States (Kerin & Peterson, 2010). The company was founded in 1979 and they operate 200 Amber Inn properties and 50 Amber Inn & Suites properties (Kerin & Peterson, 2010). They have 30,000 total rooms with an average of 120 rooms per property (Kerin & Peterson, 2010). The company has had five consecutive unprofitable years and the company wants to be profitable within two years. This case will provide a summary an analysis of Amber Inn’s options and an examination of their strengths, weaknesses, opportunities and threats. Problem Identification Over the past five years, revenues for Amber Inn have been increasing but so have their costs and this had led to five years of losing money. In 2005, they are expected to have revenues of over $422 million but are expected to report a loss of $15.7 million (Kerin & Peterson, 2010). While Amber Inn & Suites are struggling to make a profit, other companies in their industry are experiencing growth. In recent years, the company has closed seven properties and management would like the company to be profitable within two years. In order to meet the challenge set forth by company management, Amber Inn needs to examine their positioning, target market, advertising, marketing and promotions to set a plan for the fiscal year 2006. Case Analysis Amber Inn & Suites is a 250 property hotel chain located in 10 western and Rocky Mountain states. The hotel industry is a $113.7 billion industry and as a whole recorded $16.7 billion in pretax profit in 2004. It is a very profitable business. In the United States, there are 4.4 million hotel rooms with 10 companies controlling 54% of the available hotel rooms (Kerin & Peterson, 2010). Amber Inn & Suites is a limited-service hotel chain as they those types of hotels do not offer restaurants, lounges, and banquet rooms

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