Successful Hotel Turnaround Strategy Abates Imminent Sale
I had just recently met with the owner of a popular, Four Stars tourist retreat who was, despite all efforts, facing dire losses. Steep competition and the ever growing amount of competition had taken away revenue streams from his business. After talking with him, I told him according to my perspective as a Business Turnaround Specialist that the true cause of the business distress wasn’t only market competition. I advised him on what strategies were necessary for the hotel to be restructured and presented a plan to overcome the prevailing financial hardship.
After a highly meticulous and comprehensive assessment , I identified various reasons behind the hotel’s financial distress. In particular, -Poor Customer Service- was most evident as a major contributor to the failing corporate performance. This is a costly mistake that destroys business momentum , even without the presence of any sort of market competition. Other significant low performance factors were in the areas of – limited food variety – lack of quality assurance – inefficient and delayed Check-In -Out processes, which made a negative impact on the customers and clients first impressions.
The fact that there was only one restaurant in the hotel, resulted in slow room service at all times. There were few entertainment events. There were no hospitality practices to ensure customer satisfaction. The interior decor needed to be changed in order to give the atmosphere a sense of vitality.
As a result of the above assessment, I formulated a series of strategic actions.
Action 1. The first step, was to stabalize the hotel’s finances. Made cost cutting changes by restructuring the credit portfolio and eliminating costs for non essential expenditures
Action 2. Rebranding the Hotel starting with the modernization and decorative appeal of external visual appearances
Action 3. Improved and implemented standardized quality assurance applications and methodologies from the kitchen, i.e food and beverage, to dedicated trainings in customer service and hospitality engagement
The set of radical changes and moves I conducted were many. Here are some actions and strategies that were performed.
● An in depth intensified training course for all staff members dealing with varying areas of specializations, in order to boost customer service and pamper the guests from the minute they make a reservation until they leave . This enhanced customer focus service created the sense of loyalty needed to maintain a revolving customer base.
● Rescheduling hotel’s debt obligations with a revamping and turning around hotel’s operating strategies, policies , management, and system.
● Contacted previous unhappy guests and invited them back to experience the hotel again by offering highly rewarding gifts of up to 3 nights free. The mission helped to convert strained allegiance to loyal return customers. Our goal was to gain happy and regular customers with newer, more positive reviews.
● A major transformation was needed in catering, in both the food quality and its variety. The hotel offered especially healthy food choices for diabetics and guests with other ailments.
● A fundamental upgrade in the online presence was needed, The Hotel website was redesigned and a better user experience created more demand. The digital online marketing presence was revamped. With the improved booking access potential clients were able to access a more efficient process to make their hotel searches and decision to select this destination.
As a result hotel vacancy slots diminished, new occupancy bookings maintained a steady rate even during low seasons, yhe new online site strengthened the hotel’s profile with travel site portals like Tripadvisor, Hotels.com, Expedia.com, Booking.com, Travelocity.com and Hotereservations.com.. The hotel’s website and social media interactions were boosted with increased site traffic and search engine optimization.
● Data analytics determined that clients segmentation and demographics were under represented. We designed and offered Incentives with new customized packages for business people; for conference and meeting activities summits, and various business meetings , special offers for couples, such as memory events for anniversaries, social events , receptions of different kinds ,
● A massive architectural alteration. Exterior andinterior design upgrades were done to modernize and enhance the spacial aesthetics of the building
These business restructure and reorganization modifications along with advanced initiatives promoted an efficient turnaround from debt to surplus. The four stars hotel underwent a radical spin from recession status to being able to repay all debts within a structured financial workout agreement.
The hotel achieved an all time high usage occupancy. Guest ratings went from low to highly satisfied for most seasons, and more internet traffic brought more clients, which increased the bottom line
Hotels are a place of short stay for guests, which means a short time to impress on them a remarkable and memorable experience. When people think of hotel stays, they should be reminded of the positive experiences that were offered to them during their stay.
Turning a bad business into a great one, is hard. It takes a lot of time and can be expensive. But the long term benefits by far outweigh any possible challenges ahead. In the long haul, it’s just worth it. It is also critical to have the knowledge, expertise and professional talents that will guide your business to a successful turnaround and recovery
So my advice to any business owner, would be instead of throwing up your arms in despair, instead refocus your efforts. With a proper business plan, market research and planning, success isn’t just a pipe dream. Although it won’t be an easy mission, remedy, repair and restructure are worth it!
I was lucky enough to be at the forefront of this Business Turnaround.
Therefore, don’t hesitate to contact me Dr. Salam Amin to lead you out of business distress or help you boost, develop and strengthen your market position.
***Note : Due to Proprietary Confidentiality Agreements names of the Business and their affiliate entities are withheld