Strategic Management
By Irina Niculescu
Introduce your selected
organisation and evaluate its
vision, mission and values
statements with
recommendations for any
revisions you deem appropriate
X Hotel
Brief about the hotel
Situated in Dubai Creek in one of the city’s most popular commercial
area (gold souk, textile souk) , X Hotel is a luxurious hotel complex
with 350 rooms.
The hotel has a modern, architecturally-impressive style, is a five-
star hotel, creating a new Creekside destination for business and
leisure.
The hotel is located at just few minutes driving from the world’s
busiest airport, Dubai International, as well as the Dubai World Trade
Centre and the Diplomatic District. Major tourism attractions are on
the property’s doorstep too, from mega malls to world-famous souqs.
X Hotel
Brief about the hotel
X Hotel shares five international restaurants, providing guests with a
various choice of dining options as: all day dinning restaurant, bar,
speciality outlet, lobby lounge cafe and pool lounge.
From the Italian authentic food at Gusto Restaurant to Morgan’s Bar,
the only gastro pub in the area, you will be spoiled with a real treat.
For casual and fast meals, all-day dining restaurant Salt & Pepper is
just perfect, Vanilla Lobby Lounge is the place to enjoy tea, coffee
and delicious sweets.
All outlets have terrace overlooking the amazing views of the Creek
and Dubai’s skyline. You can enjoy drinks and snacks at The Deck Pool
Lounge.
X Hotel
Brief about the hotel
For the meetings and events area, the hotel offers six fully-
equipped meeting rooms, each with flexible seating plans and
cutting-edge audio-visual technology.
Recreation facility includes a modern five stars Bodylines Fitness
& Wellness Club featuring a modern gym with cardiovascular and
free-weight training areas, as well an iconic swimming pool
,sauna, steam and massage rooms.
Vision of the company
To be the Leading Hospitality
Management Company recognized for its
unique blend of world-class standards
with genuine hospitality and for its truly
treasured experiences provided for
guests, colleagues and owners.
Mission
Treasured Time
In today’s busy, pressured world, time is our most precious
commodity. How and with whom we choose to spend it is
perhaps one of the most important decisions we make in our
lives. We have chosen to acknowledge this fact by embracing
the challenge of making all time spent with us, Treasured
Time. This means that we pledge to understand and meet the
individual needs of all who we deal with. In so doing, we strive
to continually build long-term relationships with our owners
and partners, our colleagues and, of course, our guests.
Why to choose us
We are present across the Middle East, Africa, Eastern Europe and Turkey.
We have a unique understanding of Middle Eastern cultures and
communities.
We have the finest experts to help you organise your meetings and events
and make sure they are a success.
We customise our packages for all your special occasions.
We personalise each aspect of your events.
We offer perfect indoor and outdoor venues equipped with modern
facilities.
We provide and prepare food and drinks menus and buffets that consist of
tasty, distinctive cuisine.
We supply superb catering services for your private outside events.
We will transform your meetings and events into an unforgettable
experience.
Why to choose us
To create a strategy for a hotel is not simple. There
are a lot of factors to take into consideration when
creating a strategy, for example the environment, the
internal culture of the organization, the competitors,
and the target goals.
To be able to create a strategic plan for X Hotel we
should assess the current position of the hotel in the
market and the external factors that can influence.
Critical vision and mission
By creating a vision we show what are the company future goals what
is the plan for the future. Vision also includes a view of the hotel
future developments. One way of doing it, is to describe the future
intentions. Values have a very big effect on the company’s strategic
management. They are tightly attached with what the company
represents, what it wants to accomplish and how it will do it.
Vision should be short and concise in order to have the required
impact. Considering that the competition in market is challenging
and all the hotels are providing bed, breakfast, furniture etc in order
for us to be above the competition and to be the first option for our
guests we have to provide better services.
So a suitable vision for X Hotel will be ‘’the benefits that the
customers get by choosing X Hotel as their preferred destination will
be rewarded with engaged experiences straight from our heart”.
Critically evaluate the
organisations key headline data
including, but not limited to,
trends in financial performance,
share price (where applicable)
market share, profitability and
major competitors
Who are our competitors
Direct competitors
Considering that X Hotel is a 5* Hotel we consider direct
competitors the other hotel with same classification
Aloft Hotel 5* – 410 rooms
Sofitel 5*– 350 rooms
Indirect Competitors
Novotel 4* – 240 rooms
Holiday Inn 4*– 205 rooms
Potential Competitors
Park Inn by Radisson 3* – 180 rooms
BOB vs FCST and Budget
Daily Occupancy
Summary Financial Operating Statement
MONTH TO DATE SUMMARY OPERATING STATEMENT
Last Year Actual FOR THE MONTH OF DECEMBER
10,850 10,850 Rooms Available
8,521 9,432 Rooms Sold
OPERATING REVENUE
5,742,506 6,589,245 Rooms
3,452,792 4,305,716 Food and Beverage
64,428 68,532 Other Operated Departments
320,052 302,403 Miscellaneous / Minor Income
9,579,778 11,265,896 Total Operating Revenue
DEPARTMENTAL EXPENSES ( INCL. PAYROLL & COS )
1,056,937 1,340,259 Rooms
2,051,458 2,465,599 Food and Beverage
51,846 18,672 Other Operated Departments
84,888 91,031 Miscellaneous / Minor Income
3,245,129 3,915,559 Total Departmental Expenses
6,334,648 7,350,337 TOTAL DEPARTMENTAL PROFIT
UNDISTRIBUTED OPERATING EXPENSES ( INCL. PAYROLL )
577,236 649,902 Administrative & General
194,866 136,466 Information and Telecommunications Systems
53,447 603,697 Sales & Marketing
325,793 345,391 Property Operation and Maintenance
802,702 864,146 Utilities
1,954,044 2,599,603 Total Undistributed Expenses
4,380,604 4,750,734 GROSS OPERATING PROFIT
552,614 351,839 MANAGEMENT FEES
3,827,990 4,398,895 INCOME BEFORE NON OPERATING INCOME & EXPENSES
NON OPERATING INCOME & EXPENSES
414,709 495,863 Rent / Leases
7,514 7,569 Insurance
422,223 503,431 Total Non Operating Income & Expenses
3,405,767 3,895,464 EBIDTA
287,393 337,977 REPLACEMENT RESERVE
3,118,373 3,557,487 EBIDTA LESS REPLACEMENT RESERVE
Room Rate Comparing Competitors
Date X Hotel Aloft Sofitel Novotel Holiday Inn
15-Jan-20 400.00 399.00 410.00 270.00 300.00
16-Jan-20 400.00 423.00 410.00 310.00 290.00
17-Jan-20 500.00 299.00 510.00 339.00 280.00
18-Jan-20 380.00 273.00 450.00 276.00 290.00
19-Jan-20 380.00 273.00 450.00 276.00 290.00
20-Jan-20 380.00 299.00 450.00 276.00 290.00
21-Jan-20 450.00 299.00 450.00 276.00 290.00
22-Jan-20 382.00 299.00 450.00 276.00 290.00
23-Jan-20 382.00 299.00 450.00 276.00 290.00
24-Jan-20 433.00 324.00 500.00 310.00 310.00
25-Jan-20 433.00 324.00 500.00 339.00 310.00
26-Jan-20 382.00 299.00 430.00 276.00 290.00
27-Jan-20 382.00 299.00 430.00 276.00 290.00
28-Jan-20 382.00 299.00 430.00 276.00 290.00
29-Jan-20 382.00 299.00 430.00 276.00 290.00
30-Jan-20 382.00 299.00 430.00 276.00 290.00
31-Jan-20 433.00 324.00 500.00 339.00 310.00
Positive & Negative factors impacting arrivals
Positive factors
Emirates Airline Routes
Stability and security of the country
UAE reputation internationally
Selected country for Expo 2020
Visaon arrival for Russian, Indian and Ukraine
markets
No visa required for most of European countries
Only 5% VAT tax
Positive & Negative factors impacting arrivals
Negative factors
Low government spending
Low oil & gas prices
Price war amongst hotels
Visa restriction for some nationalities
Instability in Middle East
Over supply of hotels
Meeting/MICE lengths approval process
PESTLE Analyse
Political Factors
The political stable situation in the UAE is making it a favourable destination in
the area when compared to countries like Turkey, Egypt and Tunisia
Economic Factors
Is predicted that the UAE’s economy will to start recovery in 2019-2020 on the
country’s strong balance sheet.
Comparing with other GCC countries, UAE diverseness in terms of economy is
higher, their economic stability is not based only on the petrol, because of this is
expected to face better the period of low oil prices and to be one of the best
GCC countries in terms of economic performance for the next years.
The economy has taken a big hit with the reduction of oil price by almost
50%resulting in a downturn in business specially in this field, also the strong US
Dollar has made the destination expensive for tourists which affected the
spending power and average room rates, however the UAE government is still
spending on military activities which can enhance that segment.
PESTLE Analyse
Social Factors
The new trend of Air BnB is a challenge for the hotel
industry. There are other social factors that affect the global
hospitality industry as consumer preference. If consumer
sentiment is favourable both airlines and the hotel brands
stand to gain.
Technological Factors
Airline traffic, new routes and partnerships, US market is
expected to drop following the executive order of banning
larger devices from certain countries including UAE.
Also Expo 2020 will have a major impact in this area.
PESTLE Analyse
Legal Factors
The legal pressures and challenges in the tourism environment
are big. Staff should be trained in order to prevent any legal
hassles. Considering that Dubai is one of the safest city in the
word with very low crime level, the city is having a large
number of tourist due to this factor.
Environmental Factors
The major factor that is affecting X Hotel business is fuel
price. By reducing the oil prices can result a reduced travel
costs and less inquiries for hotel rooms.
Increased temperatures from global warming is affecting the
summer season when the temperatures are very high and the
number of tourists is dropping considerable.
Critically analyse the
organisation’s competitive
position in that industry
Competitive Set
Competitive Set Aloft Sofitel Novotel Holiday Inn
3 meeting rooms
Number of 3 meeting rooms 7 meeting rooms 7 meeting rooms
min 30 pax -
meeting rooms & Min 80 pax-max min 50 pax each min 50 pax - max
maximum 200 pax
capacity 1500 pax Banquet ballroom 300 pax 200 pax
ballroom
High speed internet High speed internet
Added Values High speed internet High speed internet
7 meeting rooms 3 meeting rooms
with day light with day light
Global Sales Office
Having a global sales team with a team member
available 24 hours a day provides a lot of benefits
by interacting directly with customers from
different countries and provide them with the
exact details about the hotels that they require
base on the scope if their visit (leisure, business ).
X Hotel has a global sales team in Russia, UK,
Kuwait, Germany, India, Saudi and Iran.
STR Report
Dubai hotels have witnessed a 24% drop in Rev Par
in Q1 2020 vs last year mainly affected by lower
ADR’s.
Present a SWOT table
(or equivalent) and critically
evaluate the organisations
current strategic position
SWOT Analyse
Strengths
SWOT X Hotel Aloft Sofitel Novotel Holiday Inn
Newest hotel Attached to the
opening in the exchibition Part of Accor
area center chain Part of Accor chain 3 meeting rooms
Five
Destination
outlets (bar, all
day dinning,
Speciality Big room
outlet – Italian, inventory 50 one bedroom
Strengths Lobby Lounge, allowing rate apartments with Hotel in offering low
Room Service) flexibility 2 Ballrooms kitchenette prices
Club lounge
floors and
lounge Sky view outlet Popular night bar part og IHG group
Spacious pool Nice pool area Roof top bar
Outdoor venue
for events
Loyality
program
SWOT Analyse
Weaknesses
SWOT X Hotel Aloft Sofitel Novotel Holiday Inn
Relaxation area
as swimming Old furniture in Basic room
pool is small the room facility Small room size Small Pool
Offering very
Weaknesses low price in the Not to many
No ballroom market F&B options No ballroom Small room size
Very
Meeting rooms colourful,not Far from the
with no day prefered by exchibition
light guests center Old furniture
SWOT Analyse
Opportunities
SWOT Diamond Hotel Aloft Sofitel Novotel Holiday Inn
Appeling for Flexible rates
the guest from because of the Big number of guest
the exchibition big room due to strong
center category Strong brand Strong brand loyality program
Opportunities
Fist choice of
Variety of F&B exchibition Big data base of Big data base of
outlets guest costumers costumers
Various range
of room types
SWOT Analyse
Threat
SWOT X Hotel Aloft Sofitel Novotel Holiday Inn
Due to basic
facility they have
High corporate Average daily a potential to lose
tax and tax for rate affected due guests from Depend on the Big competition in
Threat
sugar sweetened to low prices corporate bussiness from the terms of rate with
beverages offered segment exchibition center Novotel
VAT percentage Good marketing
can increase Good marketing Good marketing Good marketing
Referencing list
Abhijeet Pratap. (March 9, 2018). HOSPITALITY INDUSTRY
PESTEL ANALYSIS. Available:
https://notesmatic.com/2017/03/hospitality-industry-
pestel-analysis/. Last accessed 14 Jan 2020.
Paul Sarlas Founder/CEO. (18 May 2017). Hotel Strategic
Planning a Must. Available:
https://www.hospitalitynet.org/ opinion /4082620.html.
Last accessed 06 Jan 2020.
