The Asking Price Is Not the Investment Case
A good business at a reasonable price may not be a good investment. An accommodation business comes onto the market. The sales material presents an asking price, historical earnings and information about the property and its performance. Perhaps the business has traded successfully for many years. The location appears sound, the rooms present well and […]
The Cost of Doing Nothing
Why the status quo deserves regular review. Every accommodation business has a status quo. Rooms reflect an established standard. Staffing structures are in place. Systems and processes have evolved. Services have been developed. Capital projects have been undertaken, deferred or dismissed. Some of these decisions may have been made recently. Others may simply reflect how […]
Goals and a Vision Are Not Strategy
What accommodation owners should be thinking about instead. Consider a 35-room regional motel operating at 66% occupancy. The business is performing reasonably well, but the owner wants to improve profitability. Looking ahead to the next year, the owner decides the strategy is to increase occupancy from 66% to 69%. The owner believes that improving customer […]