Country : Egypt
Scope : Hospitality /hotels
Project Date : Oct 2008
A complete Business assessment, Competition review and business Planning , and a full business plan – Debt restucturing
After accumulating almost 7 million Egyptian pounds in debt, a hotel’s management sought our help in their dire circumstances. Since it may be difficult to make heads or tails of such a situation, our methodology involved a sweeping analysis of the market and competition existing in the hotel’s location of Beni Sweif. Luckily, we found that the hotel had a competitive edge in terms of their service and room quality, which meant their flaws lie elsewhere; a full SWOT analysis was then promptly undertaken. After combing through all necessary business functions, we highlighted the hotel’s advantageous location and its staff’s beaming hospitality, without forgetting their crippling setbacks, like poor market understanding and lackluster interior design. At Pillars, we believe any study to be incomplete if it foregoes any proposed solutions, so we made sure to sketch out strategies to combat these issues. We pointed the hotel towards corporations, travel agencies and individuals as the most appropriate market segments, plus we strongly urged the hotel to build a stronger sales team to craft a recognizable corporate identity. By being cognizant of the hotel’s cash flow, we mapped out a financial program to explain how the aforementioned changes can be applied. As much as our copious recommendations to the hotel’s accounting system will prevent financial issues in the hotels future, they will not erase their staggering debt crisis. Our study found that the hotel’s offered office space can pay off the debt if it is either sold entirely or rented out to a third party; the study proposed payment schedules for both eventualities. This study exemplifies not only the breadth of our research, but also its usefulness for urgent circumstances.
Management Summary :