Essay on Good Hotel (Case 25)

1672 Words Apr 20th, 2013 7 Pages
Good Hotel Analysis

What is the stand out economic characteristics of the macro environment of the US hotel lodging industry?

There are 12 leading hotel chains which have various branches within those chains. Each accommodate different numbers of guests and different types of guests. Before 2008 there had been massive expansion in preparation for a large upturn in the industry however when the expansions were finished the market was in withdrawal leading to the largest downturn in the lodging industry. The major economic characteristics influencing the lodging industry have to do with business meetings and conference related travel taking 40% of the business in the whole industry of 2010. The hotel industry is dominated
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Competitive pricing while offering more value is a great way to be set apart from the competition. Inexpensive yet successful marketing has proved effective, word of mouth generating most of the attention. Quality of service and stay are the focus points they should base their strategy on. Problems would be expanding because of having such unique products. Minimal brand recognition because each location is unique which makes it hard for branding unlike the major chains.

We can determine its competitive position in the industry by analyzing the financials presented in the case. 2008-2009 showed to be slightly better than its peer group in occupancy, average daily rate, and RevPAR. For the running 12 month average ending in 2010 regarding RevPar was 10% higher than its compared peer group. The change from 2009 to 2010 showed massive increase in RevPAR compared to the peer group. These numbers indicate that there is consistent growth when looking at good hotel and their financial performance is strong in comparison to the peer group. This allows us to come to the conclusion it has a strong competitive position because its strategy has created more growth than their major competitors in the area.

Have the good hotels strategy and its approach to executing the strategy produced good financial results?

Their financial results clearly indicate that they have executed a strategy that closely meets the needs of a large market. By

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