CITY PLAZA HOTEL STRATEGYKexin Fan Sun23 41STRUCTUREBackgroundSWOT analysisOptionsConclusion 23TorontoBACKGROUND4Four-star Market leader→Market followerLosing money Losing its traditional customersA NEW STRATEGY IS NEEDEDRecently bought by Price Inc.BACKGROUNDLack of money56SWOT-threatsRivalsMajestic- market leaderBelvedere-market nicherMount Charlotte-budget hotel7Coffee-maker Air-conditioning Safe MinibarFax machine Voice-mailSWOT- threats11）Majestic •A wide range of facilities•Bigger conference rooms•A “Yes I can” attitude•Luxurious and very customer-orientated•Almost the same target market22）Belvedere•A three-star hotel•Aims at middle-income tourists and package tour visitors•Same facilities in guest rooms as City PlazaNumber of halls capacity of each per person Majestic5500C$95 City plaza 3100C$70Belvedere 160C$75Mount charlotte 0-——-——克格勃简介33）Mount Charlotte•A budget hotel•The largest number of rooms (360)•Cheap price•Friendly staff•Highest occupancy rate•Developing fastrepeat business annual average occupancy rate Average room rateMajestic 55% 75%240City plaza 32% 35%170Belveder e 44% 72%130Mount charlotte 35% 92%9010SWOT-weakness• Outdated facilities and services• Increasing cost of running the hotel• Unclear market position• Lack of corporate culture• Price is not competitive11repeat business annual average occupancy rate Average room rateMajestic 55% 75%240City plaza 32% 35%170Belvedere 44% 72%130Mount charlotte 35% 92%90SWOT-weakness12SWOT-strengthhotelRoomsFacilities Majestic300A wide range City plaza 250A wide range Belvedere190Basic rangeMount charlotte 360Few• Four-star• History and Existing customers • Comparably large scale13SWOT-opportunityMergerC＄2.75 million investmentBrand, intelligence, reputation, management skills, the format applied successfully, etc1. Take City Plaza Hotel up-market like Majestic Advantage: up-market is profitable Risk： Big cost of redecoration (2750000÷12000=229＜250 )fierce competition; powerful competitor Majestic14OPTIONSrepeat business annual average occupancy rate Average room rateMajestic 55% 75%240City plaza 32% 35%170Belvedere 44% 72%130Mount charlotte 35% 92%902. Reposition the hotel as a budget hotel like Mount CharlotteAdvantage: also profitablenot as competitive as up-marketRisk： a waste of up-market facility like the large restaurant, bar, guest rooms15OPTIONSrepeat business annual average occupancy rate Average room rateMajestic 55% 75%240City plaza 32% 35%170Belvedere 44% 72%130Mount charlotte 35% 92%903. Aim at a niche market (middle-income older tourists, family groups etc. ) like BelvedereDisadvantage: Big changerisky and costly16OPTIONS4. Stay in its present position but improve the hotelAdvantage: Reasonable and feasibleLess risky and costly17OPTIONS184th optionConclusion19I. Staff trainingII. Room redecoratingIII.Facilities enhancingIV.Service improvingConclusion20。