Hosp582

Case Study 1
ABC Management Company: Organizing for Mid-Range Service

ABC Management currently oversees the operation of ten very large, independent, world-class hotels. These hotels are located throughout the Midwest, and each targets business travelers as its primary market. All the properties are doing well and the owners are more than satisfied with the ability of the management company to meet their profit requirements. The president of ABC Management attributes much of the company’s success to the efficiencies gained by managing hotels of similar size and service levels.

The owners of one hotel currently operated by ABC Management recently approached the company about managing three mid-range service properties. These properties are located in Midwest suburban areas and cater to the business traveler. All three hotels are chain-affiliated. The hotels range in size from 350 to 450 rooms and have limited meeting room facilities. Each hotel has a single dining room that provides breakfast, lunch, and dinner. Room service is also available.

Discussion Questions

  1. List some of the important organizational and service factors that the executives of ABC Management should consider before responding to the owners of the three mid-range service properties.

Since the hotels are within the mid-range (350-500 rooms), a room director will be needed to supervise the departments that make up the rooms division, another director for the food and beverage department and supervisors in the subdivision under the food and beverage department. Other key members of the management team that should be included are a director of sales and marketing, controller, and a director of human resources. Other hotel service and organizational factors should also include an executive housekeeper and director of catering as part of the management team. Some of these positions may be limited as some of them can be done by one person. I am a strong believer in department...