Synopsis:

The case is about The Mayres Hotel, a three star hotel in Johor. Golden Management Sdn. Bhd., a Malaysian company formed in 2003, with a paid up capital of RM1.15 million acquired, the Mayres Hotel, a three star hotel in Kota Tinggi near Kota Tinggi, Johor, in the year 2007.

Since the hotel is newly acquired with a relatively low occupancy rate, the management wanted to explore strategies to further grow the hotel’s business moving forward into the new year of 2010. In the first month of operation after its acquisition in May 2007, it recorded only a monthly occupancy rate of 20%. Until December 2009. The average monthly occupancy rate was 29%.

The management set an ambitious target of attaining a minimum of average monthly occupancy rate of 50% for the year 2010. The main issue here is achieving and sustaining a minimum average monthly occupancy rate of 50% from the year 2010 to 2015. Mr. Fong the Hotel Resident Manager was requested to look into the problem of low occupancy rate, analyzed the factors that caused this problem and provided suggestions on how to improve the occupancy rate of the hotel and attain a minimum target of occupancy of 50% for the year 2010.