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Sheraton Hotel Suggested Solution

In:

Submitted By xxswtiexx
Words 704
Pages 3
Executive Summary
- need to include the background of the company
 four star hotel, located in the downtown area of Montreal, winner of awards recognizing its four star location, amenities and services  large hotel with 824 rooms, a number of restaurants, health facilities, convention rooms and boutiques, specialty shops
 cash flow for the last fiscal year was negative by over $2 Million
 the hotel has a $50 Million long-term mortgage which requires payment of interest calculated at a floating interest rates
 other cash outflows include $4.2 Million in annual municipal taxes
 currently running at below capacity
 competition for the Sheraton includes a total of 10 hotels located in the downtown area
- include the problems of the case
 Alitalia is requesting a one year contract for 40 hotel rooms for one year
@ $42 per night
 in addition, a 25,000 per day crew allowance is required to be on hand; these moneys will be repaid within seven days of receipt of statement on a weekly basis
 check out times and check in times will require extra staff to handle the
Alitalia contract
 in addition, the contract will require more laundry and linen, utilities and amenities - recommendations

Introduction
- need to include some background of the company
- what will the report cover
 quantitative analysis of the incremental revenue, incremental costs including opportunity costs to the hotel
 qualitative analysis of the Alitalia contract
 other factors to consider when making a decision whether to move ahead or not
 and lastly, recommended actions
Alitalia
- who are they?
 airline company that requires a set number of hotel rooms for the year for its flight crews
 prefers four star hotels, located near shopping and entertainment facilities
 due to a supply of four star hotels in the downtown core, Alitalia

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