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Astor Lodge & Suites, Inc.“The Place to Stay on the Way”
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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
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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
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6otel >uest Prole
*); 5usiness travelers
1 adult #ale 0:%;3
Age!
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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
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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,
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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
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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”
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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
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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
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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
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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
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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
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DITCA
S
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+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
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+ationale or Cecision
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