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Of Good Hotel in San Francisco - Case Study Example

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Of Good Hotel in San Francisco

Maintaining the hotel as it is would be a major challenge for the new group if they lack the experience needed to run such an establishment. A theme hotel requires specialized knowledge of the various operations involved. There are numerous opportunities in existence for the hotel and the new owners. New trends in the hospitality industry are emerging. While these are becoming popular the old ones do not get obsolete. The opportunity for the hotel here is to integrate new ideas into the original one of boutique hotel. The owners of the hotel should make maximum use of these available opportunities when it starts operating to capture the market before new entrants take over. Threats to this takeover come from several places around the business. With the hotel having been previously operational, the new owners need to be aware of existing competition rivalry already in existence (Gordon, 1989). This rivalry comes from the hotels which have been competing with the Good for business within the city. The other threat comes from within the company. The brand reputation which the hotel has created over the years comes as a threat if the company decides to discontinue the concept of the hotel. This posses a great threat as all existing clients may leave if the concept of the hotel changes The Hotel performance The good hotel has faced a surmountable challenge since reopening. The performance of the hotel has been impressive compared to other industrial players. The results of the past one year show an improved level of occupancy (Drucker, 1954). Before the rebranding the hotel show seems to be lagging behind compared to its competitors. The results for the month of March in 2008 indicate that the hotel has low occupancy levels compared to the peer group. At this particular time, the growth rates of occupancy levels also indicate that the hotel is behind the industry levels. The hotel has lower average daily rates than those of the peer group. These can be attributed to the target clients whom the good hotel targets. Most of the hotel’s clients are holiday makers who are on budget holidays. As time progresses this seems to change. The results posted for the month of March 2009 indicate that the hotel has surpassed the peer group hotels. While the Good hotel achieves a positive growth rate peer group posts a negative result. These results can be attributed to the changes which were implemented in the management of the hotel. The rates of rooms are almost at par with those of peer group hotel. There has been a lot of improvement in the results when they are compared to those of the competitor group. The results of 2010 indicate slowing of growth which had been attained in the year 2009. This though was as a result of the cancellations experienced as a result of ash flows in most European countries. Most clients of the Good Hotel come from the European zone. This is what slows down the upward trend of the Good hotel. In general terms though, the hotel can be said to be at par with its competitors. The hotel has enhanced competitiveness by targeting low spending holiday makers who come in large numbers. Though the hotel has a lower daily average rate, the occupancy levels in the hotel are higher than those of the peer group. Company strategies The company has applied several strategies to enhance the good hotel brand. Branding of the hotel has ...Show more
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Case Study Customer Inserts His/Her Name Customer Inserts Grade Course Customer Inserts 19.11.2011 SWOT analysis The hotel has several aspects which would enhance its program through an analysis of its internal organs. The strengths of the hotel lie mainly with the size of the company…
Case study of Good Hotel in San Francisco
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