In order to correctly elaborate on the four functions of management at Candlewood Suites, it is important to understand some significant background. Candlewood Suites is and extended stay hotel that falls under the hotel chain “IHG” (Intercontinental Hotel Group). The particular hotel examined below is a franchise owned by a family that runs numerous of different businesses. Extended stay hotels, such as the one mentioned operate on what is called a low budget. It is basically running itself, with only a limited number of staff on sight on the daily bases. Expenses to run the hotel should be low, due to a low turnover rate of guest, which should therefore keep payroll cost at a minimum as well. Due to the fact that it is a franchise, the management hierarchy is not only different, but also slightly confusing and out of order sometimes. Even though there is a general manager on site, which is supposed to function as the decision maker, the owners, which in this case are four different people tend to have the last say so in all major decisions. The management pyramid consists of the owners, followed by the general manager, and the director of sales, which is equal to the operations manager. It is also important to understand that even though the hotel is franchise owned, the “IHG” structure, as well as procedures have to be followed at all times in order to avoid fine’s or the loss of the operational license.
The most important planning tool at Candlewood Suites is the “SWOT Analysis”, along with a constant updatable “Market Analysis”, which was a team effort between the general manager and the director of sales. In the hotel business it is at all times essential to know the strength of the product you are offering in comparison to your competitors. The “SWOT Analysis” for this particular property exposed many weaknesses in the early stages of the goal setting face, which in return created a challenge for the director of sales, to market the property accordingly. Although the “Market Analysis” seemed promising at first, as far as occupancy is concerned, again it presented a challenge, because the property is an extended stay hotel. The general planning face consisted of a strategic plan, and monthly meetings on how to best serve the market demand in the surrounding area. Goal, as far as revenue and occupancy are concerned we set in place for each month, quarterly, and yearly. Strategic planning for the main season was a must, in order to assure maximum occupancy at the highest rate attainable. A constant rate adjustment, along with the offering of specials is a daily tool used by this property, to stay most profitable.
Organizing went hand in hand with the planning function. The general manager led the organizational phase in the hotel; by assuring resource allocation was appropriately. This function mainly...