Consulting Report of Solberri Hotel
Solberri Hotel
January 20
2012
This report is in response to the request by Solberri hotel group for a review of its facing issues and identification of possible solutions. Consulting report
STATE OF AFFAIRS
Solberri is a group of resort hotels registered as a listed company with 12 resort hotels in Europe. Established in the 1980s, it had run successfully until 2003 and also incurred losses in 2005 and 2006. To improve the situation, Solberri implemented strategy changes to the hotel operating environment such as the pricing changes and a refurbishment program. With these adjustments, situation gets better with a large forecast cash surplus in this financial year. Currently the chain of hotels is faced with critical issues revolving around its operation including human resources that are better explained with the help of SWOT analysis in Appendix 1. It is important for Solberri to make use of the management tools to understand the current situation and to achieve the revenue target, increased share holder value and better customer satisfaction.
ISSUES IN HAND
Solberri is faced with multiple issues that act as a barrier to meet their goals and target. From our review and understanding of the environment we put forth the below issues and rank them as priority and other issues.
Priority issues:
• Poor customer experience that could be a result of ethical issues such as o Poor treatment of General manages and senior employees. o Misdistribution of tips o Investment in unprofitable environmentally friendly initiatives.
• The potential need to borrow money to enhance spas before the 2007/08 Peak season
• The need to raise occupancy rates and earnings generated from extra charges to hit the planned revenue for the financial year ending September 2008
• The poor share price and vulnerability of Solberri
Other issues:
• Installation of solar panels
• Non-participation in the international star ratings system
• Potential
January 20
2012
This report is in response to the request by Solberri hotel group for a review of its facing issues and identification of possible solutions. Consulting report
STATE OF AFFAIRS
Solberri is a group of resort hotels registered as a listed company with 12 resort hotels in Europe. Established in the 1980s, it had run successfully until 2003 and also incurred losses in 2005 and 2006. To improve the situation, Solberri implemented strategy changes to the hotel operating environment such as the pricing changes and a refurbishment program. With these adjustments, situation gets better with a large forecast cash surplus in this financial year. Currently the chain of hotels is faced with critical issues revolving around its operation including human resources that are better explained with the help of SWOT analysis in Appendix 1. It is important for Solberri to make use of the management tools to understand the current situation and to achieve the revenue target, increased share holder value and better customer satisfaction.
ISSUES IN HAND
Solberri is faced with multiple issues that act as a barrier to meet their goals and target. From our review and understanding of the environment we put forth the below issues and rank them as priority and other issues.
Priority issues:
• Poor customer experience that could be a result of ethical issues such as o Poor treatment of General manages and senior employees. o Misdistribution of tips o Investment in unprofitable environmentally friendly initiatives.
• The potential need to borrow money to enhance spas before the 2007/08 Peak season
• The need to raise occupancy rates and earnings generated from extra charges to hit the planned revenue for the financial year ending September 2008
• The poor share price and vulnerability of Solberri
Other issues:
• Installation of solar panels
• Non-participation in the international star ratings system
• Potential