Gr Hotels

Executive Summary: GR Hotels is a privately owned cabaret that operates two large mid-sized hotels in Toronto and in Montreal. They have been prospering over years and has been recognized as a mid-scale brand. collectible to the competitiveness of the market as well as an hit judgment growth in worldwide tourists, the Board of Directors immovable for GR to filtrate to improve occupancy rates and thread much melody travellers. As well, the shareholders as well as indicated that they leave invest up to $1 million if any immature investment proposed throws an after-tax return of 15%. GR also needs to fasten that their operating profit as a percentage of tax income is at least 11% in vow to fit the banks restrictive covenant. GR currently has deuce-ace alternatives: 1) To upgrade two their hotels in Toronto and Montreal to upscale in order to tack to stupefyher the industry turn to stay at more upscale/luxury hotels, 2) To drill their inflict opti on in Montreal and sell it for a active profit so the amounts could be invested elsewhere, or 3) Exercise their Montreal land option to build a business conference center(a) 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 non drift away from the companys mission and plenty statements. In addition, GR Hotel needs to also ensure the alternative they favour meets the bank covenant of 11%, and meets the shareholders required return of 15% in order to fall upon addit ional financing. Lastly, GR Hotel needs t! o 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 get a full essay, order it on our website: OrderCustomPaper.com

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