The private hotel industry has positioned itself very well against the corporate hotel industry, especially in Germany. Even though some companies were not able to survive the cut-throat competition, many private hotels are flourishing. DICON has supported the private hotel industry since the company was founded – here are a few selected business cases:
Resort Hotel in Spain
Situation
A hotel complex in Spain had earned no significant income from its hotel investment for years after the founders bequeathed the property to their wives. The managing director, who had been friends with the new owners, had been entrusted from the start with running the business but behaved arrogantly towards the company’s shareholders.
Assignment
To create an analysis of the causes for the drop in earnings and a provision for the further operation of the hotel complex. The analysis should be based on intensive discussions with the managing director, the accountant, the reception staff, and interpreters from the area around the hotel. In addition to the economic figures, this turned to be an essential basis to work on the objective in the interests of both the owners and employees.
Result
The analysis showed that bookings were continuously passed on to third parties. According to the bookkeeping, the goods used for breakfast were calculated for an occupancy rate of approx. 70% – but the billed rooms showed an occupancy rate of less than 50%. As it turned out, the managing director had built an apartment complex in the immediate vicinity and used it to full capacity via the hotel’s reservation system. The management was convicted of systematic fraud and replaced. The turnover of the hotel increased considerably afterwards and the owners improved the profitability by changing the management. |
Inadequate Profitability of a Rural Hotel
Situation
Despite a competent operation and an exceptionally good bed occupancy for the region, a small country hotel suffered from a lack of profitability due to limited bed capacity.
Assignment
The property was well-managed and well-positioned in terms of costs, processes, and price structure, which is why only a few changes needed to be made here. As the financing bank refused to reschedule the debt, the only obvious option was to increase profitability by increasing accommodation capacity. However, the banks refused to finance this option.
Result
A concept was developed to expand operations by renting several properties (apartments). In cooperation with the city administration, appropriate properties were found which had been renovated for reasons of monument conservation. They were successfully acquired for the operation and rented. The combination of holiday flats and hotels has resulted in expanded marketing opportunities for both segments so that the liquidity crisis has been resolved. |
Coaching a Family Hotel
Situation
Due to deficits in the areas of service and marketing, a hotel with a beautiful structure on the Müritz wanted to be professionally inspired and supported. Because of the shortcomings, which were reflected in poor valuations and inadequate earnings among other things, the management was coached for one year.
Assignment
Meetings were held with management once a month for twelve months to identify challenges and develop detailed marketing and controlling plans. Individual projects were defined and supported in their coordination.
Result
The activities significantly improved the hotel’s offerings and customer satisfaction. The marketing campaigns and the improved offerings led to an increase in turnover of more than 25 percent. After an annual monitoring, the main challenges were identified and appropriate improvement measures were implemented by the management and the management of the company. |