Htt 230 – Growth Strategies
I believe that all business owners want their business to become as big and as great as it could possibly be. I believe that even small bread and breakfast owners want their hotel to become much larger but because of starting working capital they needed to start at the smaller hotel size while they work on ways to make it larger. I think the growth strategy for a bread and breakfast is to go public. The investors and law firm selling their business to share holders means the bread and breakfast will have more money to expand their building and add amenities/services, thus their profits and growth will rise.
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Franchising seems to be the best growth strategy for mid-sized hotels. By franchising they will be able to latch onto other sound hotels and branch on their base by using their name. This is what the Holiday Inn Express did that I used to work at. It was relatively easy to convert bedding standards and uniforms to meet the franchising expectations and then guests knew they were getting a consistent stay when they made a reservation.
Large hotels growth strategy should be to secure additional management if they are struggling. If current management team is not showing profits than any additional help cannot hurt them get on their feet. Managing such a large hotel with so many extra amenities is stressful and should be done by a qualified individual. If there are management teams that specialize in this then I think large hotels should take advantage of what is available for the taking.