Strategic Analysis of Amara Hotels: Competitors and Performance

This report provides a strategic analysis of Amara Hotels, an integrated lifestyle group with a focus on property investment, management, and development, particularly in the hotel and food service sectors. The analysis includes an executive summary, introduction, and a detailed examination of Amara's strategic position, key performance indicators (KPIs), and competitive landscape. The report investigates return on investment, market share, current situation, and utilizes frameworks such as the BCG matrix, SAF framework, and SWOT analysis to evaluate Amara's strengths, weaknesses, opportunities, and threats. It also explores strategic direction, including growth strategies, and provides conclusions and recommendations based on the findings. The report emphasizes the importance of data-driven decision-making, technological integration, and expansion strategies to enhance revenue and market share. The analysis considers financial performance, market trends, and the competitive environment to offer insights into Amara's potential for future growth and success.

MARKETING

Executive summary
The report brings out analysis on Amara hotels. The improvements will be based on
identification of KPI and its strategic position, its competitors. Hotel industry faces severe
competition in the world in regards to the revenue generation. The facilities availed to the
internet connection and other basic amenities for the guests. Monitoring the market
penetration in regards to check the competitors in order to foresee the improvements. Amara
hotels avail free parking, free high speed internet, taxi services, breakfast buffet, shuttle bus
services, business centre, conference facilities, internet accessibility, pool, bar, and Fitness
centre. Furthermore, the room features include family rooms, suites, Air conditioning, room
service, flat screen TV, minibar, refrigerator, housekeeping, and non-smoking rooms.

Contents
Introduction................................................................................................................................3
Strategic position........................................................................................................................3
KPI and its key competitors.......................................................................................................5
Return on investment.................................................................................................................5
Market share...............................................................................................................................6
Current situation.........................................................................................................................8
BCG matrix................................................................................................................................8
SAF framework..........................................................................................................................9
SWOT Analysis.......................................................................................................................12
Conclusion................................................................................................................................14
References................................................................................................................................16

Introduction
Amara holding is an integrated lifestyle group engaged in property investment, management,
and development as its key business areas with hotels, restaurants, food services, and
properties. The vision is to lead Asian integrated lifestyle with the integration of lifestyle
group with the premium brands excluding the value, style, product offerings, and quality. In
2018, the company has earned a total revenue of $68.37 million, operating income of $40.37
million, net income of $23.22 million and also the diluted earnings per share of $.04.
Furthermore, the company owns market value of $USD 91.5 as market value, and sales
growth of 12.68 percent. The hotel is expanded includes Amara Bangkok, Amara Singapore,
resort sentosa, Amara shanghai, and Sanctuary shanghai.
Furthermore, the report is based on several analytical frameworks such as strategic position,
KPIs, Amara`s holding competitors, return on investment, current situation of the
organisation in terms of financial reports such as return on investment, dividend growth,
feasible growth, and its market share. Most importantly, the company has to evaluated
through SAF framework including situational analysis, acceptability analysis, and the
feasibility analysis in order to identify the factors through which it can apply to modern
strategy to develop the company (Amara Holdings, 2018).
Strategic position
Amara hotels has recently collaborated with the duetto so that it can implement two-cloud
application to create data-driven pricing and distribution decisions among the Amara hotel.
Duetto is the platform for hospitality`s revenue to address cloud application addressing the
complexity in the technology and distribution (Amara Holdings, 2018). The company will
adopt the duetto`s game changer, open-pricing application and with its offerings for the
Scoreboard, intelligent reporting, and exclusively for the four hotel properties. With a

centralised and fully integrated with the revenue strategy through which Amara hotel not only
found duetto`s application sharing but also generated focus on revenue strategy (Booth, and
Carroll, 2015).
Technological factors for the hotel look forward to make strategy and implement both the
applications in upcoming years. Amara technology has started to sought cloud based solution
where duetto while ensuring to cope up with the hotel technology so that it can generate
maximum revenue (Miles, and Clieaf, 2017).
Recently, the company planned to expand hotel in shanghai, Bangkok and Singapore. Growth
through visitors in these three cities contributing to whole sum of revenue growth-
Benefiting through growth after arrival in the Singapore- The visitor’s growth in Singapore
increased by 7.7 percent to the 16.6 million. Stronger visitors arrive Thailand resulting with
the growth of 8.9 percent. TAT (Tourism Authority of the Thailand) forecasting 34.4 million
on the basis of data in 2017.
Revenue drivers of Amara hotels
(Source: Amara Holdings, 2018)
With the increasing benefits in the growing tourism trend, the company`s expansion can
contribute to increase in revenues. Increased capacities from the budget airlines is likely to
contribute to increasing arrival of visitors. Furthermore, Amara intended to expand with the
help of its presence in the many regional cities (Moulton, and Sandfort, 2017).

KPI and its key competitors
The key performance indicators for Amara hotels are-
Average daily rate- This rate reflects how much company earns for each day. In order to
calculate the average daily rate, tracking the trends is quite important. The average rate in
Thailand 4800 per day.
Online ratings are another important to check the preferences and feedback of the customers.
It is important to check the trip advisor to check the ratings. Advertising on return on
investment i.e. investment plan for Singapore and Thailand.
The major competitors of Amara hotels include Keppel Corporation limited, Wheelock
properties limited, and hotel properties limited. The intensity of rivalry depends on the size of
direct competitors with equally balanced leads to growing industry.
Return on investment
Amara shanghai commences its commerce operations with mixed usage of development
inclusive of 343 room hotels, office building, and retail centre leading to boost company`s
revenue. Amara hotels have residential development in Singapore, which has contributed
through revenue growth. Amara has no residential project, which means it estimates the
mixed use of development, comprised of 343-room hotel, office building, and boosting
revenue (Le, McDonald, and Klieve, 2018). The company reflects cost of the hotel where it is
a significant valuation for Amara Singapore, Amara signature shanghai, and resort Sentosa
Amara sanctuary. Amara have the relatively started the Amara signature with starting the
operation triggering the rating of the share price closer to level. Amara has the relatively high
rate of gearing 0.79x. It will lead to adjustment of the hotel assets to the market price. HIM
group has accounted for the 76.4 percent in 2016. It accounts for 30 percent of share EBIT
(Le, McDonald, and Klieve, 2018). The company has been continuously maintaining the

balance sheet to manage the asset portfolio, seeking the developments in residential, and
securing the income from the investments. As a return on investments for the hotel
investment and the management segment, the revenue has increased 16 percent to the $104.2
million. Further, net profitability that is distributable to the equity shareholders surging for 35
percent to the 32 million dollars for financial year, 2017.
(Source: Amara Holdings, 2018)
388 room has the facilities include collection of the chic restaurants, contemporary with
resort pool, specially designed rooms, spa, and lobby in order to avail luxurious city living
experience for the guests (Simplywall Street, 2019).
Strategic direction
Strategic direction consists of long term, medium term, and short-term goals. Long-term
goals can be practical that towards to achieve mission and vision. Medium term goals relate
to the scope of long term goals. It is seen that encouragement response allocated to hotel`s
stylish interiors withy the strategic direction. Strategic role of Shanghai is an important
innovation and financial innovative powerhouse in Asia, which is a world leading technology
and innovation centre in future (Amara Holdings, 2018).

Market share
Recent market share of the Amara hotels states that if a person has invested in this share,
today it will get worth of 18 percent gain on the market price it has invested in (Simplywall
street, 2019). As per the valuation, the discounted future cash flow value is relatively 13
percent indicating that current price of share is $0.45 and fair value $0.52, where 20 percent
share price is undervalued. The average of the sector in terms of P/E ratio in Singapore in
24.3 percent whereas the Amara hotels earn 7.9 percent. With current situation related to the
market share, it is estimated to foresee a future annual earnings growth of 8.3 percent
(Simplywall street, 2019).
(Source: Simplywall street, 2019)
With the given financial analysis below, it is seen that Amara holdings does not avail
appropriate return for the shareholders as it is marked at 20.21 whereas, there are several
hotels that provide better payout ratio to the shareholders such as Hotel grand central limited,
GL ltd, and hotel royal limited (Financial times, 2018). On the other hand, Amara holdings is
not obliged under the debt whereas other companies employs high rate of debt. Quick ratio
indicates the liquidity to represent the level of liquidity in the company so as the company is

able to pay the short-term debt. Amara holdings has a very low quick ratio, which means the
company has minimal quick assets (Financial times, 2018). Whereas, Stamford land
corporation ltd, hotel Grand central limited, hotel royal limited, and AF global ltd has more
than one as its quick ratio (Sukcharoensin, 2018).
(Source: Financial times, 2018)
Current situation
Current projects of the bank will include the development new hotel in Bangkok. The group
focuses on the improvement of positioning the Amara as being a premier lifestyle in Asia.
BCG matrix
(Source: Torquati et al., 2018)

According to this matrix, Amara hotels position as cash cows in this matrix. BCG is a
framework as being created by the Boston consulting Group, which evaluates strategic
position of brand portfolio and its related potential (Moulton, and Sandfort, 2017). This
matrix shows relative market share and market growth rate. Relative market share is used to
check business portfolio is generating high cash returns. Business units can operate with rapid
growth, which are cash users and investment is worth. Four categories are classified with the
combinations of market share and market growth in relation to large competitors (Moulton,
and Sandfort, 2017). Dogs have the lower growth rate and lower market share. These are the
cash traps, which neither generate nor consume the large amount of the cash (Whitehead,
2015). With due to this money tied in corporation where the hotel has little potential. A hotel
can become cash cow which has low growth but has resources to reinvest so that it can attain
higher growth and reach stars with high potential (Moulton, and Sandfort, 2017).
Question marks will have rapid growth rate and on the parallel side, it does not generate cash
with lower market share. A question mark has potential to enhance and emerge as a star with
slowly becomes a cash cow when it comes to slowing down of market growth. If the
Question mark did not succeed while becoming market leader, which can degenerate into the
stage of dog as the market declines. Star segment includes Sheraton, St. Regis, Tribute and W
hotels appears in the star segment. These hotels are stars because they have higher growth
market with sizable portion of market where it can generate higher income (Guo, Wang, and
Wei, 2018).
Other cash cows include Westin, which is the leader of the mature market exhibiting return
on assets, which is greater than the market growth rate by generating more as compared to
how they consume. Amara hotels can keep it into the category of cash cows as it will enable
in order to cover the administration of the company while paying the stable dividend to the
shareholders while serving the debt.

SAF framework
Suitability-
The company is affected by the political risks and instability. The political and economic risk
consultancy, which states that the nation is suitable as it has low political risks. The person
elected by the representative since its independence with relative political risks. Amara hotels
can transform several business opportunities such as hotels, tourism related services, casinos,
parks, events, and entertainment in Singapore by using the supportive liberalisation, political
and economic stability (Bismark, Kofi, Frank, and Eric, 2018).
Economic conditions- The economic conditions is quite vibrant for free market economy.
The nation`s per capita income of Singapore among the ASEAN countries is highest. It is one
of the most competitive nations where the probability of increasing revenue, which is highest
for the Amara hotels (Du, and Yu, 2017). The company has been working in the corruption
free environment. The educated people and motivated people can strengthen it. The
government has invested in the diversification of the economy where hotel industry can
flourish as it depends on the economic conditions. Amara hotel can save a lot of money by
using the cheap labour from the neighbouring nations.
Economic indicators Singapore
GDP $364,157 million
GDP Per Capita 64,567.000 USD
Inflation rate 1.33 percent
monthly household income $9,293 with growth rate 3 percent
Economic indicators Shanghai
GDP 3.27 trillion yuan

GDP Per Capita 135,000 yuan
Inflation rate 2.1 percent
monthly household income 68,034 yuan with rate of 8.7 percent
Economic indicators Thailand
GDP US$504.9 billion
GDP Per Capita 7,605.783 USD
Inflation rate 1.07%
monthly household income 800 USD
Social factors- Singapore is another Eastern nation, which still follows traditional family
values. Younger generation will assist the tendency to follow several values and western
culture. Tourist often are from different countries so the employees must be trained in such a
manner to treat in which they are comfortable. There is an urge leading to increased
productivity in the nation. The corporate sector can anticipate high purchasing power to the
customers where it is seen that most Singaporeans do not like blue-collar jobs.
Technological factors- Technological assistance considers communication and increasing the
connectivity, which reduces the time of conducting the business. It has boosted social
networking that would connect to remaining world. IT infrastructure in the Singapore is used
where penetration rate for the household broadband internet connection is more than 70
percent in E-commerce. Widespread conditions of the technological advancement for the
Amara hotels in order to set regional operations. Amara hotels has recently collaborated with
the Duetto so that it can use the services such as open pricing application, cloud application,
and data driven pricing to generate more revenue.