HOTS is the software that design by Griffith university for student who study hotel management. It gives student experience on the hotel industry by giving them three years to develop hotel and improve the performance of the hotel. The UNICORN hotel was three-star hotel and after the development that have been done to it. it’s now four-star hotel.
The purpose of this report is to analysis the performance and development of the UNICORN hotel from year one to year three including hotel including the hotel performance and improvement and as well as the hotel strategy for the year four.
In this section will cover the hotel development that have been done by the UNICORN hotel management team during the three years.
In the first year the hotel was performing badly. There were not many facilities in the hotel to help the hotel boost their performance. The unicorn hotel planned to do some refurbishment and build extra facilities. Hotel rooms, restaurant, bar and front desk were refurbished in the first half of the year. For the guest comfort the complimentary items and in room entertainment developed to level two. Most of the facilities were installed in the first half of the year such as WIFI, quick check in, etc. The management team decide to do most of the EMS to level one and some others to level 2.3 in order to reduce the cost of water and energy as well as gaining some accreditation such as EMAS, ISO 14001 and Green Glob.
After the hotel received a loan, the management team decide to build hotel shop, extra parking area, second bar and conferences room. Also refurbished the restaurant, bar and front desk to level three in order to attract more customers and deliver high quality products. The ROCE in the first year was -7.0% which means the hotel is losing money.
In the second year the hotel starts to performed better than last year as more facilities were installed in the hotel. Hotel management team plan to refurbished the restaurant and bars frequently to level one to maintain clean to satisfy the customers need and get good feedback. After the hotel received loan, the management team plan to refurbish some of the bedrooms, conferences room to level three and guest comfort to level four as well as build the hotel leisure club in order to increase the star rating of the hotel. The ROCE was 0% in the second year which means the hotel still is not making money.
In the third year the hotel management team managed to build all the facilities that the hotel management team planned. As the hotel have the facilities all build the hotel management team strategy for this year is to keep the hotel facilities in the high quality standards by refurbishing the bedrooms, conferences room and other facilities to level one. In this year ROCE dropped down to -5.7% this means that the hotel is still not making money in the year.