Benchmarks Case Study Rubric.docx Benchmarks Case Study Rubric.docx – Alternative Formats (37.727 KB)
Benchmarking Case Study R2022.docx Benchmarking Case Study R2022.docx – Alternative Formats (39.609 KB)
Benchmarking Case Study Data File R2022.xlsx (48.236 KB)
This week, you are put in the position of being assigned to a “task force” of people who are sent to a poor-performing hotel to assist the managers of that hotel in improving their performance. This is a very typical occurrence in multi-unit companies.First, read the background information and assignment requirements in the attached document. Second, review the grading rubric for this case.Then, using the data in the attached Excel file, calculate the value of each of the items if the hotel improved from where they are (Year 4) to the company benchmark. You will then prioritize your actions starting with the five items that impact profitability the most.Note:
You must calculate the financial impact of improving productivity to the benchmark BY JOB.
You must calculate the financial impact of improving cost per room sold for direct expenses BY LINE ITEM.
For each of the 5 items you focus on improving, you will need to develop SMART goals for each item.This assignment will take you considerable time to complete. You should start working EARLY in the week!
Not Fully Developed (50%)
Does Not Meet Requirements (0%)
Professional Format (30%)
Paper was properly formatted as specified in the case. Relevant data was incorporated from the data file in a professional and comprehensive fashion. Paper meets a professional standard.
Paper was generally well formatted, although not all specifications were met and/or data included was not properly formatted. Paper is approaching a professional standard.
Paper had significant formatting issues and/or was missing required information.
Paper had major formatting issues and/or none of the required specifications were met.
Consideration of the Case Facts (30%)
All relevant facts in the case were considered in the affiliation decision
Most relevant facts in the case were considered in the affiliation decision
Few relevant facts in the case were considered in the affiliation decision
Did not complete, or missing significant analytical points which were in the case data.
Decision Rationale (30%)
The decision rationale was well supported based on the facts in the case.
The decision rationale was partially supported based on the facts in the case.
The decision rationale was only barely supported based on the facts in the case.
No recommendations or incorrect, superficial and not measurable.
Format to given standard, professional language used, no grammatical or spelling errors.
Format to given standard, professional language used, few grammatical or spelling errors.
Format not to given standard, unprofessional language used, grammatical or spelling errors.
College of Online Education
Johnson & Wales University
Hotel Benchmarking Case Study
You are a Front Office Manager working for a major global hotel company. The company has 10 separate brands and over 1,700 hotel units in operation. The company owns none of these hotels, but manages about 20% of the hotels. Third party management companies manage the remainder on behalf of the franchise owners.
You have been promoted to a “task force” team of managers to travel to a hotel unit the company is managing that is struggling; to help the on-site managers diagnose problems and implement corrective action. Your team serves as “internal consultants” to the managers of this troubled unit. Your team has one week to diagnose the problems and recommend solutions to the hotel unit managers. They then are responsible for implementing those solutions. The company has specified that all goals from task force recommendations must be equal to the upper quartile benchmark.
Each manager on your team will focus on an operational area of the hotel. You have been assigned to the rooms division. You will analyze the front office (front desk, bell service, guest transportation and valet parking service), housekeeping, and the laundry operations.
Prior to departing for the unit, the company provides your team with access to the various financial statements, guest satisfaction scores and employee satisfaction scores, along with a brief overview of the hotel. You study this information carefully, and begin to formulate a plan based on what you see in these reports.
The company has developed a very specific sequence they use to diagnose problems. Using this sequence:
1. Review all of the information you have, and list all of the items you see which appear to be problems. Your list should be categorized in the same manner as the data tabs on the Excel file, ie Income Statement, Labor Cost, Market Share, Guest satisfaction.
2. From your list, determine which 5 problems should be addressed first, based on your estimate of their likely financial impact. You need to calculate the impact of each item on the benchmark tab. Those items with the greatest impact should be attacked first.
3. For the 5 items you select, you will need to determine the financial impact (increased profitability) based on the hotel’s current performance and their distance from the company benchmark, using Year 4 revenue and volume. The Benchmark tab is the best place to start. Then, use the Calculations tab as a guide to calculate the financial impact, depending on the items you select.
4. For each item on the list, recommend 4 specific action steps the management team must take to correct the problem and reach the benchmark.
5. Submit a written report “addressed to” the unit managers. In this report, for each of the 5 items identify, you need to:
a. Identify what information you used to draw your conclusion for that item. Which report(s) you used in your review.
b. Show the calculation you made to determine the fi
Hotel Dionysus Unit 267
Comparative Income Statement
For the Years Ending December 31
Year 1 % Year 2 % Year 3 % Year 4 %
Transient $ 5,052,454 44.0% $ 4,847,383 42.1% $ 5,234,698 45.3% $ 5,256,472 50.2%
Group 6,423,343 56.0% 6,679,599 57.9% 6,320,083 54.7% 5,204,731 49.8%
Total Room Revenue $ 11,475,797 100.0% $ 11,526,982 100.0% $ 11,554,781 100.0% $ 10,461,202 100.0%
Transient 32,305 $ 156.40 30,072 $ 161.20 31,557 $ 165.88 34,002 $ 154.59
Group 48,457 $ 132.56 49,064 $ 136.14 45,411 $ 139.18 39,915 $ 130.39
Total Room Nights/ADR 80,762 $ 142.09 80,762 $ 145.66 80,762 $ 150.13 80,762 $ 141.53
Payroll and Payroll Benefit Expense
Front Office $ 429,159 3.7% $ 437,743 3.8% $ 446,498 3.9% $ 415,632 4.0%
Housekeeping $ 617,503 5.4% $ 629,853 5.5% $ 642,450 5.6% $ 655,299 6.3%
Guest Services $ 331,631 2.9% $ 338,264 2.9% $ 345,029 3.0% $ 351,930 3.4%
Payroll Taxes and Employee Benefits $ 652,622 5.7% $ 712,068 6.2% $ 769,328 6.7% $ 868,087 8.3%
Payroll Taxes and Employee Benefits $ 2,030,915 17.7% $ 2,117,927 18.4% $ 2,203,305 19.1% $ 2,290,948 21.9%
Direct Expenses CPOR CPOR CPOR CPOR
Amenity Expense $ 149,409 $ 1.85 $ 150,793 $ 1.91 $ 151,062 $ 1.96 $ 149,427 $ 2.02
Cleaning Supplies $ 52,495 $ 0.65 $ 52,981 $ 0.67 $ 50,029 $ 0.65 $ 57,656 $ 0.78
Decorations $ 60,000 $ 0.74 $ 62,500 $ 0.79 $ 59,000 $ 0.77 $ 45,000 $ 0.61
Glassware Expense $ 29,074 $ 0.36 $ 28,489 $ 0.36 $ 27,708 $ 0.36 $ 26,610 $ 0.36
Guest Transportation $ 185,000 $ 2.29 $ 205,000 $ 2.59 $ 215,000 $ 2.79 $ 245,000 $ 3.31
Linen Expense $ 169,600 $ 2.10 $ 174,098 $ 2.20 $ 167,789 $ 2.18 $ 190,707 $ 2.58
Miscellaneous Expense $ 36,343 $ 0.45 $ 35,611 $ 0.45 $ 34,635 $ 0.45 $ 33,263 $ 0.45
Paper Supplies $ 68,647 $ 0.85 $ 64,891 $ 0.82 $ 70,810 $ 0.92 $ 65,786 $ 0.89
Terry Expense $ 130,834 $ 1.62 $ 135,322 $ 1.71 $ 140,081 $ 1.82 $ 149,313 $ 2.02
Uniform Expense $ 40,381 $ 0.50 $ 41,151 $ 0.52 $ 39,253 $ 0.51 $ 48,046 $ 0.65
Total Direct Expenses $ 921,783 $ 11.41 950,836 $ 12.02 955,368 $ 12.41 1,010,808 $ 13.67
Departmental Profit $ 8,523,099 74.3% $ 8,458,219 73.4% $ 8,396,109 72.7% $ 7,159,446 68.4%
Hotel Dionysus Unit 267
For the Years Ending December 31
Year 1 Year 2 Year 3 Year 4
Rooms Available 285 285 285 285
Room Nights Occupied 80,762 79,136 76,968 73,917
Soap $ 5,048 $ 5,149 $ 5,663 $ 5,149
Shampoo $ 10,095 $ 10,297 $ 11,327 $ 10,297
Conditioner $ 11,105 $ 11,327 $ 12,460 $ 12,460
Total Guest Amenities Inventory $ 26,248
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