Final HW 3 255_Solutions

Final HW 3 255_Solutions - The Marriott Mystic Hotel and...

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The Marriott Mystic Hotel and Spa A Report on Investment Potential Introduction The Marriott Mystic Hotel and Spa is an upscale, 281 room hotel that is proposed to be built in the heart of Connecticut’s Mystic Country. The property is a six-level building that contains ample meeting space, including two large ballrooms and multiple meeting rooms. The Marriott also offers a full-service spa, fitness center, and pool area for guests. There is a restaurant and lounge within the hotel as well. The hotel is predicted to attract mostly group and leisure travelers throughout the year. The following report will discuss whether or not it is recommended for your company to invest in this new property and will cover: An overview of the general hotel program An evaluation of the efficiency of the hotel’s program An evaluation of the hotel’s layout and planned spaces A specific recommendation that will increase hotel revenues A conclusion that discusses the investment potential of the planned property Revenue Generating Facilities In the proposed Marriott Mystic Hotel and Spa, the predominant source of operating revenues will come from the ADR’s of the 281 guestrooms, which make up the 5 guestroom tower floors. These 281 rooms will be made up of 300.5 bays and will include standard 1-bay guest rooms, 1.5-bay oversized rooms, 2-bay suites and a 4.5-bay presidential suite. 1
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In addition to guest room revenues, the Marriott will also be able to host conferences and events that in the grand ballroom, junior ballroom or meeting rooms. These revenues will be driven by the function spaces that are provided on the first floor of the Marriott hotel. To further drive revenues, guests will have access to a specialty restaurant, hotel bar/lounge, fitness facility, pool and spa. Program Evaluation The hotel program shows that 61% of the gross hotel area is dedicated to serve guestrooms, while the remaining 39% is set up for public and back-of-house space. The 39% is further divided, with 30% set aside for public space and 9% set aside for back-of- house space. The percentage of space set aside for guestrooms is relatively low for an upscale property, such as this Marriott, and should typically be closer to 70%. Also, there isn’t enough back-of-house space to support the proposed function space. Back-of- house space should be closer to 12 to 15% of the gross hotel area. However, the possible reasons for these proportions will be further discussed. Guestrooms : Each guestroom is approximately 330 SF, a number that is acceptable (but still somewhat low) for an upscale suburban property. There are also oversized rooms and suites that range from 520 SF (oversized room) to 625 SF (parlor/deluxe/hospitality suites) to 1500 SF (presidential suite). All of the suites are 2 bays or larger, with the exception of the oversized room which is only 1.5 bays. The room-to-suite percentage is low, at 4%, for an upscale conference hotel. It should be higher and closer to 8%. The lack of suites
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Final HW 3 255_Solutions - The Marriott Mystic Hotel and...

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