Hotel Management Outsourcing - A Case Study

Summary case study - The Abbey Hotel, Bath

Before becoming one of our hotels in Bath, The Abbey had operated successfully for many years, boosted by its prime location in the city centre. However, a quick succession of trading shocks (eg. first Gulf War, 9/11, foot & mouth, etc) coupled with a difficult staffing situation meant that by 2003 EBITDA had dropped by 35% on previous performance with net ARR well below £50.00.

An internal strategic review of the business produced a six-point turnaround hotel business plan:

1. Review the hotel's market position within Bath and identify higher-yielding accommodation business;
2. Target the internet as the hotel's prime sales channel;
3. Dedicate resources to managing the internet sales channels and maximise revenues through a mix of on-line booking systems, direct sales, agents and wholesalers;
4. Make significant changes to the hotel's management structure (without litigation risk);
5. Implement a cost review of all elements within the hotel's cost structure;
6. Tailor the food & beverage offering to provide a significantly more profitable product.

Helped in part by improving tourist volumes, the hotel is now enjoying year on year record profitability built on room sales some 40% ahead of 2003 levels. Net ARR now stands comfortably in excess of £60.00.

Compass Hotels Ltd can help your hotel business plan its way into profitability. Don't let your business to begin to fail before you contact us for help and support. There are 12 good reasons why you should talk to us now...