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Hospitality Industry


Question   The management of a chain of hotels finds that the occupation rate of the rooms, their prices and the result are coming under pressure more and more. The major shareholder – a private equity investor – require drastic measures. A cut in costs and a program to control the working capital have been initiated by the management. Cashflows, therefore, can be better controlled, but doubt about the distinctive competencies remains, as well as the question if the hotel managers show the right behaviour. Please read on.