Gr Hotels

Executive Summary: GR Hotels is a privately owned nine that operates two large mid-sized hotels in Toronto and in Montreal. They have been roaring over years and has been recognized as a mid-scale brand. account payable to the competitiveness of the market as well as an depart judgment growth in worldwide tourists, the Board of Directors firm for GR to filtrate to improve occupancy rates and thread to a greater extent melody travellers. As well, the shareholders as well as indicated that they volition invest up to $1 million if any unexampled investment proposed induces an after-tax return of 15%. GR also needs to tally that their operating profit as a percentage of revenue is at least 11% in vow to cumulate the banks restrictive covenant. GR currently has deuce-ace alternatives: 1) To upgrade both their hotels in Toronto and Montreal to upscale in order to meet the industry disposition to stay at more upscale/luxury hotels, 2) To lick their prop up option in Montreal and sell it for a degenerate profit so the amounts could be invested elsewhere, or 3) Exercise their Montreal land option to build a business conference rivet in order to attract more business travellers to generate additional revenue.

GR Hotel needs to involve an option which will meet the goals of the board of directors, while staying on track as to non drift away from the companys mission and batch statements. In addition, GR Hotel needs to also ensure the alternative they charter meets the bank covenant of 11%, and meets the shareholders required return of 15% in order to fall up on additional financing. Lastly, GR Hotel! needs to deal an option which minimizes the amount of risks and weaknesses deep down the organization as well. There are currently a number of organizational weaknesses within management itself which needs to be solved on with the alternative deemed most beneficial to the organization. by our findings, it is recommended for GR to upgrade both of their hotels to upscale status as it is the least risky...If you want to maintain a full essay, order it on our website: OrderCustomPaper.com

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