astor lodge & suites, inc case

8/17/2019 Astor Lodge & Suites, Inc CASE

1/16

Astor Lodge & Suites, Inc.“The Place to Stay on the Way”


2/16

Overvie! Astor Lodge & Suites

"or#ed in 1$%$ o'erates ()) Astor Lodge 'ro'erties and *) AstorLodge Suites, Inc.

(*) 'ro'erty hotel chain ith locations in 1) estern and +ocy-ountain states

Average o 1() individual guest roo# or suite units

Pro/ected lodging revenue 0scal 2)*3! 41*.% #illion


3/16

A5out Astor Lodges & Suites

Positioning

Li#ited service hotel 0co#'ara5le to"aireld Inn, -arriott, 6a#'ton Inn &Suites and La 7uinta3

Pre#iu# locations! along highays,

near air'orts, o8ce co#'le9es andsho''ing centers

L

Occu'ancy :%.1;

Average daily rate! *%.*(

+evenue 'er roo#! 4


4/16

6otel >uest Prole

*); 5usiness travelers

1 adult #ale 0:%;3

Age!


5/16

Cene the Pro5le#

"iscal year ())* 'ro/ected to 5e *th consecutive un'rota5le year orAstor Lodge & Suites.

>oal! Achieve 'rota5ility ithin ( years 0using DITCA as cor'orate'eror#ance #easure3

Eor'orate o5/ective is a %; increase in DITCA over the ne9t to scal years

Increase occu'ancy o roo#s 'er night or vacation travelers

S


6/16

Dudget "iscal ())@

O5/ective! Increase overall occu'ancy at Astor Lodge & Suites

“-odest” e#'hasis 'laced on suite 'ro'erties to attract the'leasureFvacation traveler

Su5stantial increase in #edia advertise#ent 5udget 0(; o revenue3

Dudget! 411,


7/16

Dudget "iscal ())*

O5/ectives!

Increase overall occu'ancy

Attract 1st ti#e guests and

Increase length o stay 'er visit

“"rontier Strategy” as introduced

-edia advertising 5udget! 41(,*)),))) 0


8/16

Dudget "iscal ()):

-edia 5udget! 41(.* to 41(.$ #illion

Sales 5udget! @@.=* to 4* #illion

Issues to 5e addressed!

Allocation o -edia advertise#ent dollars 5eteen the 'leasureF vacationand 5usiness travelers

“"rontier Strategy”

Pro#otions! “Weeend S'ecials” re'lacing “"ree? ight Stay”


9/16

SWOT Analysis

Strength

Location o Pro'erties

e -anage#ent Tea#

6igh revenue groth

Weanesses

"ive Eonsecutive losses Lo eeend occu'ancy rate

OJer so#e “ull? service” a#

Strategic +e'ositioning 0StrDrand3

Increase average daily rate

Astor! 4*%.*(

Industry! 4=:.))

6ighly "rag#ented -aret

Travel decline since $F11

S


10/16

Alternative K1Increase Average Caily +ate

Pros

Increased revenue

Attract 5usiness travelers

* to 1) increase in occu'ancy

o out o 'ocet cost associated

Eons

acationF Leisure custo#ersensitive to 'rice increase

Dusiness travelers have #dis'osa5le inco#e

S


11/16

Alternative K( “Weeend S'ecials”instead o “"ree? ight Stay” 'ro#otion

Pros

6el' increase occu'ancy

Targets a#ilies looing or loer cost

o additional advertising

Doost eeend occu'ancy rate

Eons

S


12/16

Alternative K< li#inate "rontierStrategy

Pros

Additional costs eliminated:

1); decrease in #edia e9'enditures To additional sales re'resentatives notneeded in "iscal 2)* 0H 41


13/16

Alternative K@! -aintain 0Status7uo3

Pros

EonservativeF Sae Targets 5oth 5usiness and vacation

travelers

Eons

O'erates under the assu#'there ill 5e constant linea

Coes not account or nanc

or econo#ic donturn

*th un'rota5le year

( year 'rota5ility o5/ectiv5e #et


14/16

DITCA

S


15/16

+eco##endation

“Weeend S'ecials” instead o “"ree? ight Stay” 'ro#otion

Eontinue the “"rontier Strategy Nalong ith other integrated #aretingco##unications

Drand aareness does not ha''en over night

S


16/16

+ationale or Cecision

astor lodge & suites, inc case

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