Strategies and Financial Position of Park Hyatt Sydney

Discover the successful strategies and financial position of Park Hyatt Sydney, an upscale hotel in Australia that frequently hosts celebrities and sports figures. Learn about their facilities, growth targets, and investment incentives.

PARK HYATT SYDNEY

OVERVIEW OF PARK HYATT
SYDNEY
Park Hyatt Sydney is considered to be one of the
famous upscale hotel in the country of Australia. Park
Hyatt Sydney holds the credential of frequently hosting
celebrities, sports figures and other important people
from all walks of life (Sydney, 2017).
Located in The Rocks locality across the magnificent
venue of Sydney Harbor in Australia. Park Hyatt
Sydney is situated at a very convenient venue with a
couple of minutes walking distance from the Darling
Harbor and the Sydney Opera House (The Rocks,
2017).

FACILITIES AT PARK HYATT SYDNEY

OVERVIEW OF FINANCIAL
POSITION OF PARK HYATT SYDNEY
AT THE BEGINNING OF THE
SIMULATION
Park Hyatt Sydney was in the process of developing itself into a plush sophisticated first rate
hotel.
Park Hyatt Sydney was gradually gaining its position in the hospitality market sector of
Australia.
The employee population at Park Hyatt Sydney were hired and trained in the most efficient
manner. Resultantly, they helped to attract and induce customers to check into the hotel at the
initial stages. This provided a stable source of revenue to the concerned hotel.
The shareholders have made good amount of investment to the financial capital of Park Hyatt
Sydney and they have also shown their keen interest for the future.
Overall, the financial position of Park Hyatt Sydney was sound. However, much was needed
to be done to gain a stellar financial position.

OVERVIEW OF THE CURRENT
FINANCIAL POSITION OF PARK
HYATT SYDNEY
After the five year simulation period, Park Hyatt Sydney has made
remarkable advancement in its financial position. Park Hyatt Sydney at
present ranks consistently among the top ten best hotel establishments in the
Australasia region owing to its financial success and faultless service
provision. Park Hyatt Sydney has implemented various eye-catching,
aesthetic and extra comfortable services which has skyrocketed its revenue
share and thereby cemented its financial stature in the Australian hospitality
and tourism sector.

THE STRATEGIES THAT CONTRIBUTED
TO PARK HYATT SYDNEY’S CURRENT
POSITION
Extra commodious hotel rooms; exclusive suites with spectacular view of the
majestic Sydney Harbor.
Personal all day and over night valet service.
Extra picturesque view of the rooms, Wall paintings by famous and brilliant art
connoisseurs of Australia have added to the appeal.
The security team of Park Hyatt Sydney are have been thoroughly upgraded
and modernized to ensure the safety and protection of the Park Hyatt customers (Chan
and Lam 2013).
The Park Hyatt Sydney also provides its customers full twenty four hours Wi-
Fi service during their hotel stay.

THE STRATEGIES WHICH WERE
SUCCESSFUL
The strategy to make the rooms commodious and accommodating have led Park
Hyatt Sydney to beat other hotels in the competitive race. Added to that, the services of
WI-FI, supply of editorials, twenty four valet service and others have intensified it.
The security personnel and the monitoring system have gained the trust of the
consumers which further helped to amplify its financial position.
Other strategies like the availability of aqua taxi, spa and skin treatment facilities
can be counted as success factors.

THE STRATEGIES WHICH WERE
UNSUCCESSFUL
Park Hyatt Sydney had tried to attract and hold the potential customers’ interests
through many recreational facilities, such as specialized bar, rooftop plunge pool,
exclusive furnished conference rooms, gym facilities and others. However, the above
mentioned strategic facilities are now found to be present in almost all hospitality
establishments, specially those who have the motto to host cosmopolitan guests.
Therefore, the implementation of the above have not added anything extra to the profit
share of Park Hyatt Sydney. The financial position also remained unaffected except with
undue liabilities of maintaining the unproductive facilities.

THE STRATEGIES IMPLEMENTED BY PARK HYATT

FURTHER STRATEGIES IMPLEMENTED BY PARK HYATT

OUTLINE OF THE CHANGES IN THE MAJOR
FINANCIAL INDICATORS
Park Hyatt Sydney have experienced massive growth in the
revenue share and in the sales margin as showcased in their annual
financial reports for the past years.
The profitability ratio of Park Hyatt Sydney is expected to rise
more in the coming years and would surpass many competitors in the
Australian hospitality sector.
Park Hyatt Sydney holds the credential and the capability to fulfil
its short term commitments.
The properties and fortunes of Park Hyatt Sydney are managed
effectively as displayed by the indicators.

COMPARISON OF PARK HYATT SYDNEY’S
CURRENT FINANCIAL POSITION TO RECENT &
RELEVANT INDUSTRY BENCHMARKS
 Park Hyatt Sydney makes effective usage of modern age technology
services. In accordance to recent And relevant industry benchmarks,
Hoteliers are supposed to provide convenient services aided by technology
to cut off excess time and efforts.
 Park Hyatt Sydney has been a benchmark setter in the hospitality sector
in terms of consumer satisfaction. Park Hyatt Sydney is known for providing
detailed and singular treatment to its guests (Ivanov 2014). In accordance to
recent and relevant industry benchmarks, hoteliers are supposed to generate
high consumer satisfaction rate by evolving and customizing their services
to fulfil the needs and preferences of the consumers.

COMPARISON OF PARK HYATT SYDNEY’S
CURRENT FINANCIAL POSITION TO RECENT &
RELEVANT INDUSTRY BENCHMARKS
Park Hyatt Sydney also maintains good relationship with the media, travel firms
and the tour websites. The maintenance of healthy associations with the aforementioned
arenas have magnified its financial position.
In addition to this, Park Hyatt Sydney also utilizes many platforms to publicize
their business and improve their efficiency and production such as the practice of
sustainability, pollution-free recycling methods and others which are in accordance with
the relevant and recent industry benchmarks (Hall et al. 2015).
All these factors have secured the financial position of Park Hyatt Sydney in
accordance with relevant and recent industry benchmarks.

FINANCIAL TARGET FOR THE NEXT FIVE
YEARS
Net Sales Growth
 To increase the net sales growth of Park Hyatt Sydney by 5 percent in the next
five years.
Profitability
 To increase the profit margin of Park Hyatt Sydney by 12 percent in the next five
years.
Capital Structure
 To reduce the net arrear ratio and to source capital contribution from viable
sources in the next five years.

APPROPRIATE EMERGING TRENDS DISCUSSED
AND ADDRESSED BY STRATEGIES
The emerging trend of having majestic and palatial rooms are now the prime quotient of upscale high-range
hotel establishments. Park Hyatt Sydney aptly does the needful in addressing the above emerging trend through its
strategy.
Along with the size and grandeur of the rooms, customers also look for the interior decoration and
ornamentation of the rooms. It is believed that artful room set-up helps to make mindset of the guests cheery and
happy. Park Hyatt Sydney makes no compromise in addressing the above emerging trend through its strategy.

APPROPRIATE EMERGING TRENDS DISCUSSED
AND ADDRESSED BY STRATEGIES
The customers also look for adept security facilities while booking a room at a hotel, regardless
the class of the hotel. Park Hyatt Sydney furnishes good security arrangements to its customers by
addressing the above emerging trend through its strategy (Ma et al. 2013).
The other additional facilities including the health and spa club, round the clock WI-FI service
and outskirts day tour service are some of the emerging trends which are effectively addressed by
strategies adopted by Park Hyatt Sydney.

STRATEGIES ARE RELEVANT TO THE OVERALL
GROWTH STRATEGY OF THE HOTEL
Overall, the strategies adopted by Park Hyatt Sydney are very much relevant to the growth
strategy of the hotel. The strategies to provide accommodating living rooms, exclusive captivating
facilities like spa, gym, valet and WI-FI services helps to secure the business opportunities of the
hotel establishment and create a mark in the global competitive hospitality sector (Mok, Sparks and
Kadampully 2013). Additionally by keeping the assets of the hotels standardized in accordance to
the current norms and trends of the hospitality business, Park Hyatt Sydney is growing rapidly and
instantaneously.

SUITABLE & FEASIBLE STRATEGIES PROPOSED
FOR EACH KEY GROWTH AREA
In order to increase the net sales growth, Park Hyatt Sydney has adopted the
strategies of provision of exclusive and high-ceilinged suites, round the clock WI-FI
and personalized valet facilities.
In order to increase the profit ratio, Park Hyatt Sydney has adopted the strategies
of aesthetic decoration, provision of suitable conference and meeting rooms, provision
of enthralling tour arrangements, provision of global cuisine and elegant wedding
venues.

SUITABLE & FEASIBLE STRATEGIES PROPOSED
FOR EACH KEY GROWTH AREA
In order to attract more capital investments, Park Hyatt Sydney has
adopted the strategies of frequent upgradation of the rooms and its other
assets in accordance to the latest hospitality standards. Additionally, the
publication of annual lucid financial statements have also helped to
attract potential investors and the shareholders.

RISKS TO SUCCESS OF STRATEGIES IDENTIFIED
AND CONTINGENCIES SUGGESTED
There is a risk of generalization in the services provided by Park Hyatt Sydney.
In actualization, all other star hotel establishments provide the same types of rooms,
suites and other services. It becomes very difficult to set one hotel from another due to
their uniform radiance and amenities. Therefore due to similar facilities, Park Hyatt
Sydney might suffer from sudden contingency of business loss due to the emergence of
hotel establishments who are proficient in simulating the success bringing assets.

RISKS TO SUCCESS OF STRATEGIES IDENTIFIED
AND CONTINGENCIES SUGGESTED
Park Hyatt Sydney is well known for specializing in providing theme based
wedding venues and party arrangements, conference facilities and events. Due to the
regular maintenance and upkeep of the above, Park Hyatt Sydney shells out a huge
sum of money from its budgetary account. However, in this aspect a contingency
might occur if the cosmopolitan customers prefer to hold their meetings in independent
convention rental buildings and carry out their wedding celebrations in unique places
like beaches, underwater or on air.

INVESTMENT AND FINANCIAL INCENTIVES
Park Hyatt Sydney is an affluent hotel establishments whose client base lies with the
rich and prosperous. As a result, an investment amount of 5 billion Australian dollars
would be proper and justified.
Financial incentives to support the investment amount:-
To appeal for Australian government related incentive programs. The
government of Australia provides many assistance funds and business loans to the
deserving and wonderfully performing hoteliers.

INVESTMENT AND FINANCIAL INCENTIVES
Park Hyatt Sydney can seize the opportunity to attract potential investors from
the continent of Asia and Africa as at present, business magnates from those region
have been showing ample interest to invest in the burgeoning Australian hospitality
sector (Sánchez-Ollero, García-Pozo and Marchante-Mera 2014).
Last but not the least, Park Hyatt Sydney must continue to execute its business
operations diligently so that it does not have to face dearth of investors. This is because
successful business attracts equally success bringing investors.

REFERENCES
Chan, E.S. and Lam, D., 2013. Hotel safety and security systems: Bridging the gap between managers and
guests. International Journal of Hospitality Management, 32, pp.202-216.
Hall, C.M., Gossling, S. and Scott, D. eds., 2015. The Routledge handbook of tourism and sustainability.
Routledge.
Ivanov, S.H., 2014. Hotel revenue management: From theory to practice. Browser Download This Paper.
Ma, E., Qu, H., Wilson, M. and Eastman, K., 2013. Modeling OCB for hotels: Don’t forget the
customers. Cornell Hospitality Quarterly, 54(3), pp.308-317.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality, tourism, and
leisure. Routledge.
Sánchez-Ollero, J.L., García-Pozo, A. and Marchante-Mera, A., 2014. How does respect for the
environment affect final prices in the hospitality sector? A hedonic pricing approach. Cornell Hospitality
Quarterly, 55(1), pp.31-39.
Sydney, P. (2017). Luxury Sydney Hotel in the Rocks | Park Hyatt Sydney. [online] Sydney.park.hyatt.com.
Available at: https://sydney.park.hyatt.com/en/hotel/home.html [Accessed 28 Nov. 2017].
The Rocks. (2017). Park Hyatt Sydney - The Rocks. [online] Available at:
https://www.therocks.com/stay/park-hyatt-sydney/ [Accessed 28 Nov. 2017].

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