The initial step is to stabilise the business by tackling the causes of under-performance. This can include essentials like improving cash flow, cutting costs, maximising operational
performance, changing the business offering and product presentation to the market through sales and marketing.
The key to a successful hotel turnaround is to fast track the following:
- Determine the property’s proper positioning
- Restructure the operational organization
- Develop business strategies to drive return of investment and reach highest levels of performance.
We conduct, as part of the turnaround strategy, an onsite SWOT analysis to identify and propose financial benefits. The analysis includes:
- Market environment and positioning
- Identification of cost-reduction and profit-making strategies
- Evaluation of effectiveness of existing services, sales & marketing
- Revenue-generating opportunities
- Competition and preferred supplier options
- Operational management strengths and weaknesses
- Cash management, financial controls and viability
- Assessment of comprehensive loan-to- value ratio
As part of our area of expertise for hotels undergoing financial problems or wanting to fast track development, identification of cost-effective strategies is essential as it concerns ROI. A total business evaluation includes:
- Accommodation, F & B management, Finance, HR management
A department-by department screening helps locate sources and causes of revenue losses.
- Environment, Positioning
Generation of revenue with new innovations, change in product portfolio and market position.This includes development of new products, entering new markets, exploring alternative sources of revenue and modifying image of the property.
- Brand positioning, Competition, Concept Innovation and Product Improvement plans
In an industry moving ahead rapidly amid stiff competition hotels have to move with the times and think of value-added innovations and re-branding to have a distinct competitive position in the market
- Accounting and Finance
Study of resource planning and setting a timeframe for implementation of new accounting and finance policy.
- Development, Implementation of Financial Strategy, Cost Control Initiatives, Profit
Maximisation and Benchmarking
Retrenchment is done by selling assets, giving up difficult markets, stopping unprofitable production lines, downsizing and outsourcing. This helps in making optimum utilisation of available resources. Mark assigned targets with benchmarks of success for higher commitment.
- Operational Recommendations
For a successful managerial performance the hotel needs to take long-term action for which it needs to analyse existing organizational structures. This could lead to closure of some divisions, development of new markets/projects or expansion in other related segments.
- Sales & Marketing, Planning and Marketing campaigns, Sales promotion, Loyalty schemes, Online marketing, E-mail campaigns, Database management, Utilization of all Resources Assessment of roles and functions as well as involvement of sales and marketing team, develop a map for success ensuring that all available tools and resources are functional and are being utilised.
- Customer and Customer Service Management, Staff strength requirements, Training and Operational Efficiency
A manager, relying on past experience, can fail to realise that a change in business strategy is necessary to keep the company viable. Interview the staff to decide who stays as part of the team. Overstaffing and under-qualified staff can affect service standards in the long term.
We will assess the situation keeping results of the evaluation in view and with the assistance of the client develop a plan that will energise revenues and create efficiencies without affecting required service levels and image of the property.
With our Turnaround plan we help our client improve profitability, realise the Brand strength and maximise the hotel’s potential.