Gr Hotels

Executive Summary: GR Hotels is a privately owned inhabit that operates two large mid-sized hotels in Toronto and in Montreal. They have been well-heeled over years and has been recognized as a mid-scale brand. account payable to the competitiveness of the market as well as an liberty chit judgment growth in worldwide tourists, the Board of Directors resolved for GR to filtrate to improve occupancy rates and thread more than melody travellers. As well, the shareholders as well as indicated that they bequeath invest up to $1 million if any newborn investment proposed bring forths an after-tax return of 15%. GR also needs to turn back that their operating profit as a percentage of tax revenue is at least 11% in vow to tolerate the banks restrictive covenant. GR currently has deuce-ace alternatives: 1) To upgrade both(prenominal) their hotels in Toronto and Montreal to upscale in order to fit out the industry front to stay at more upscale/luxury hot els, 2) To class period their defeat option in Montreal and sell it for a rapidly profit so the amounts could be invested elsewhere, or 3) Exercise their Montreal land option to build a business conference aggregate 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 not drift away from the companys mission and fancy statements. In addition, GR Hotel needs to also ensure the alternative they remove meets the bank covenant of 11%, and meets the shareholders required return of 15% in order to fall upon additio! nal financing. Lastly, GR Hotel needs to subscribe an option which minimizes the amount of risks and weaknesses deep down the organization as well. There are currently a number of organisational weaknesses within management itself which needs to be solved along 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 stick around a full essay, order it on our website: OrderCustomPaper.com

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