Hilton Hotel UK: Business Expansion Project, Fall 2023

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Hospitality Management
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Contents
Introduction......................................................................................................................................3
Task 1).............................................................................................................................................3
1.1 Producing organization profile..............................................................................................3
1.2) Theory of analysis with statistical data of the current performance of Hotel Hilton UK.. . .5
Task 2...............................................................................................................................................9
2.1) Taking appropriate action to overcome the weakness of Hilton hotel.................................9
2.2) Different ways by which business can strengthen and maintain its performance..............11
2.3) Justification of appropriate action that can be taken to expand the business.....................12
Task 3.............................................................................................................................................13
3.1) Business plan for the organization.....................................................................................13
3.2) Revise the plan for incorporating changes and business objectives...................................16
Task 4.............................................................................................................................................17
4.1) Investigate and reports the potential impact.......................................................................17
4.2) Develop a plan outlining....................................................................................................17
4.3) Monitor and improve the performance of the changes to be implemented in the Hotel....19
Conclusion.....................................................................................................................................19
Reference.......................................................................................................................................20
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Introduction
This project introduces the expansion of the small enterprise. This assignment has been separated
into four parts. With the help of this assignment planning operations can be able to understand
deeply. The respective policies, plan as well as business manager of the smaller business
enterprise can also be understood.
Task 1)
1.1 Producing organization profile
a) About Hilton Hotel
It is a resort as well as full-service hotels. It was established by Conrad Hilton. It offers various
facilities such as free Wi-Fi, keyless entry, digital, etc. Presently there are 14 Hilton Hotel brands
(Hilton.com, 2019). These are:
 Conrad
 Canopy
 Curio
 DoubleTree
 Embassy Suites
 Hampton Inn
 Hilton Garden Inn
 Hilton Grand Vacations
 Hilton
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 Home2
 Suites
 Homewood Suites
 tapestry collection
 Waldorf Astoria
The structure of the Hilton Hotel is hierarchical because of the message size of the business as it
comprises 13 brands. In 2015 it had served 140 million guests (Hilton.com, 2019). It can also be
described as divisional. It is divided into three divisions:
Ownership division: it consists of 146 hotels. There are approximately 59463 rooms.
Management and franchise division: it consists of 4419 hotels. There are approximately
691887 rooms (Hilton.com, 2019).
Time shared vision: it consists of 45 properties and 7152 units.
The statistic shows the increase of employees in Hilton Hotel. In 2013 the number of employees
is 152 thousand where as in 2019 it has reached to 169 thousand. The mission of Hilton mainly
focuses on two aspects: hospitality and high positive impact. It is considered one of the most
hospitable companies which means it provides the best quality of customer service (Hilton.com,
2019). It is also used as a scale for the day today decision as well as operations. Besides these,
there are other missions of Hilton such as high value for owners, foreigners, team members as
well as a positive impact in their communities.
b) Restrictions as well as internal constraints on Hilton Hotel
The various type of restrictions provided by the Hilton Hotel are:
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Check-in: check-in date, as well as the length of stay down, are the type of restrictions in which
rate quotes are based upon. An early departure can be imposed to early departure fee by the
hotel.
Arrival time: Unless local Hotel holds the time, the reservation of an individual will be held.
For reservation, an individual should prohibit credit card.
Rate rules: Rates are confirmed according to a number of customers, their mail confirmation,
per night, per room, etc. service charges, taxes as well as value added tax should be shown on an
individual mail (Zacca, et al. 2015).
1.2) Theory of analysis with statistical data of the current performance of Hotel Hilton UK.
a) Financial performance compares financial figures.
Hotel Hilton is a new business which is trying to develop the product and services in the market
of UK (Burns, 2016). The organization has already operated its business for the past 3 years and
thus the financial records are being tracked so that it can expand its business in the near future.
Performance
indicators
Discussion 2017 2018 2019
Revenue of the
organization
The revenue of the
organization is
determined
according to the
growth rate and in
the exchange of
goods and
services.
The total revenue
of the organization
for 2017 was £15
million.
The total revenue
of the organization
for 2018 was
£24.10 million.
The total revenue
of the organization
for 2019 is not a
determinant
however there is a
5% increase in the
revenue of the
organization in the
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first quarter of
2019.
Occupancy
percentage in the
UK
The hotel has
already captured
the lot of market
share and has
increased 47%
(first quarter of
2019) Occupancy
rate according to
the competition in
the UK.
The Occupancy
rate in 2017 was
25.21%.
The Occupancy
rate in 2018 was
£34.88%.
The organization
has completed in
the market with
huge market share
and an increase in
profit of the
organisation
which is
forecasted to 47%
in the first quarter
of 2019.
Financial ratio It is an accounting
ratio that focuses
on the relative
magnitude of two
selective
numerical
numbers taken
from the financial
statement of the
company.
The investment
valuation ratio is:
£7.20 million, the
profitable ratio is
£4.2 million,
Liquidity and
solvency ratio
£1.05 million,
Management
efficiency ratio
£0.84 million.
The investment
valuation ratio is:
£9.2 million, the
profitable ratio is
£4.8 million,
Liquidity and
solvency ratio
£1.68 million,
Management
efficiency ratio
£1.02 million
The investment
valuation ratio is:
The profitable
ratio is yet not
disclosed however
according to the
first quarter it has
slightly increased
compared to 2018.
Liquidity and
solvency ratio
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(Page, and
Söderbom, 2015.).
£1.80
Million,
Management
efficiency ratio
£1.4 million.
REVPAR Revenue per
available room is
the performance
metrics in the
hotel industry
which is
calculated by
dividing a total
guest room of the
hotel by the room
count and the
number of days in
the period be
measured.
The overall
percentage of the
year was 10% and
EPS was 5% in
2017 (Bridge and
O'Neill, 2017).
The balance sheet,
net income,
accounting was
adjusted and
focused on £8
million Revenue
in the overall
process. 8.1% was
achieved in 2018.
The first quarter of
2018, the
company has
adopted
accounting
standard updated
2014-09.
The net income of
the organization
was £22 million
according to the
fourth quarter. In
the full year, the
total EPS is £5.38
Which is 8%
increase from
prior year result.
The company has
added five more
rooms during
The outlook of the
first quarter in
2019 includes
margin related
cost and charges,
cost
reimbursement
revenue for
reimbursement
expenses that can
accurately forecast
the expectation.
The company has
assumed the first
quarter of 2019
with total income
of £23.54 million
which is an in
increased by 2.4%
that will cross the
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2018 with all the
luxurious
amenities.
gross revenue of
the organization
for the first quarter
according to 2018.
The company
b) Nonfinancial analysis.
Few nonfinancial performances can also be the forecasted by the organization:
Brand image and loyalty: Brand identity is an essential part of the organization which will help
to attract new customers and will increase the value. The brand image of the organization has
increased by 65% in 2018 compared to 2017 which was 40% (Burns, et al, 2016).
Existing customers: The most important part of growing the business is the customer. The
organization has achieved 15,00,0000 customers in 2017 which has increased to 70,00,0000 in
2018. In the first quarter of 2019, the organisation has adopted an increase of 10% customers.
Loyalty customers: The loyalty of the customers determines in the brand value and image. Hilton
has maintained good loyalty among the customers and will focus on maintaining it.
Website reviews: According to Google among 80 customers 74 customers have responded
positively and MakeMyTrip.com have given 8.5 points out of them for the organization.
Market share function: Hotel has already achieved a lot of market share however it is planning to
improve more by at least 15%.
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Task 2
2.1) Taking appropriate action to overcome the weakness of Hilton hotel
The various appropriate action to overcome the weakness of the Hilton Hotel are:
SWOT analysis:
SWOT stands for strengths, weaknesses, opportunities, and threats which is related to business.
The explanation of SWOT is given under the table:
Strengths
1. The huge scope of the business as well as
extensive experience.
2. Schemes related to effective customer retention
3. Property portfolio which is strong.
4. Strong and effective leadership.
Weaknesses
1. Debts with high level.
2. Overdependence on the US market.
3. Due to large size flexibility has been reduced
(Spence, 2016).
Opportunities
1. creating strategic alliances
2. focusing more on research as well as the
development
Threats
1. climate can affect the Macroeconomics
2. Loss of key personnel as well as key talent.
3. The threat of political instability as well as
terrorism.
Benchmarking analysis:
It is the unit type of market research by which organization can compare their existing
performance against others to develop that improvement as well as culture. Hilton adopted this
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analysis to develop their culture. .There is various type of benchmarking. Some of them are
recognized below:
Process: The business process is evaluated by this. Example: e-procurement, purchase planning
(Zacca, et al. 2015).
Performance: It compares the product and is mainly focused on technical quality, cost, etc.
Strategic: evaluate the organization’s strategy against others across various sectors. The various
type of steps done by the benchmarking are:
Planning: Resources are identified by this. It also determines the tasks as well as a business
process to benchmark.
Analysis: Information is collected by this to improve and identify the scope of business.
Action: Improvement plans are developed by this how to make changes. It also implements the
monitoring progress, improvement plan as well as reviewing.
Review: The organization reviews the performance, and identifies as well as rectifies the
bottlenecks (Burns, 2016).
2.2) Different ways by which business can strengthen and maintain its performance.
The different ways by which business can maintain his performance are:
Set goals: For business success objectives and setting goals are two essential parts. Goals should
be used by an individual as an ongoing planning tool. For instance, customer can be more
attracted by creating more website.
Keep financial score: There is very few small businessmen who have the idea of weekly, daily
and monthly financial trends that are taking place within the organization. To avoid this, cash
flow should be spent according to the necessary time (Bogdanova, et al. 2016).
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Use high impact marketing: Small business can be improved by seeking out a low budget and
high impact marketing. An excellent, as well as low cost, promote the small business can be
social media.
Monitor trends: Small business can be affected by the global landscape as well as events. To
avoid this, an individual has to stay current on trades and have 2 issues happening in the local
community and industry.
Master business presentations: Small business's performance can also be improved by a
powerful business presentation (Cocks, et al. 2018).
Sharpening the selling skills: business can also be improved by the sale function. Sales
improvement must be focused by an individual to develop it.
2.3) Justification of appropriate action that can be taken to expand the business.
The business can expand into travel services by leasing fleet cars and vehicles that could add
more revenue. This is because the hospitality business and travel are connected with the
customers in the entire world. Few models can be adopted so that the organization can easily
expand the business:
Ansoff matrix: This model was adopted by Igor Ansoff and concentrated on the current
situation of the market according to the revenue and quality of the product and services. The
organization can penetrate the different market by providing a luxurious range of products and
services for the customers with amenities like car parking, swimming pool, Casino, party hall,
etc. There can be new food items from different parts of the world (Bean, 2015). This can have
some discount and gifts for the customers which will improve the performance in the market.
Along with this as the organization have a big opportunity to penetrate into the existing market
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developing it will be easier to develop new products into the new and existing market. The
motive of Hotel Hilton is to operate differently in the UK which will benefit the customers.
Porter's generic strategy:
The generic strategy of the matrix can be adopted by the organization to understand the
competitive advantage and the market target needs to be determined.
Cost leadership strategy: It is a strategy which acts on the business organization and manages
the value with activities with the lowest cost producer of a product. The different factors that
affect the low-cost position are:
 Accurate demand forecasting that combines with high capacity utilization.
 Economics of scale.
 The technological advantage in the hotel.
 Training and development to the staffs.
Differentiation strategy:
It is the strategy which helps the customer to identify the best product for them self in the hotel.
It is important for the hotel to determine the different strategies that have uniqueness, innovation,
superior service, and creative advertisements (Storey, 2016). It is also useful to collaborate with
senior managers and marketing managers to improve the efficiency of the business.
Focus strategy: It is aimed to set a segment of the market for a product rather than the whole
market. Focus strategy is based on differentiation or lower cost. It is important for the
organization to focus on the guest segment with some form of differentiation like a good
discount, gifts, etc.
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