Wednesday, January 14, 2009

participation levels and economies of scale

I have been busy in several activities,working full time and keeping myself busy with my hobby for web design.. by the way,during this economical bad time, Let's see what Mr. Barack Obama will do for US. The hotel managers tend to focus on participation levels and economies of scale. This may result in a hotel being placed under a particular marketing 'umbrella,' and paying its share of the costs for a program that is not suitable.Unfortunately, hotel demand is currently weakening in most markets, room rates are under pressure and hotel profits are declining.all the hotel owners are just in tense. They don’t know what to do in such a bad economy. If they want to sell the hotel they won’t get the money their hotel deserve. As well as Reduced leverage and higher cost of debt will reduce the prospect of new brand competition for a time, but will also lessen the value of an existing hotel asset. Some hotel industry acquired a pretty bad reputation when it started because some of the practices of developers and salespeople were pretty sleazy.The disparity between the goals of the brand manager and the hotel owner is likely to widen and stress levels are apt to increase. The hotel owner needs to understand those differences, and take aggressive action to restore or maintain balance and assure that the management company fully understands and remains focused on the owner's goals. In that way, he will retain the maximum amount of cash flow and investment return possible and preserve more of the asset value. Other hotels of other brands that are in the same market create opportunities to use local suppliers to get equal or better quality at lower prices. I have personal experienced this in the Cincinnnati, OHIO market.

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