Question
You are the new revenue manager at the Anderson Hotel.You have been asked to revaluate the competitive set forthe hotel. Your hotel is a 350-room
You are the new revenue manager at the Anderson Hotel.You have been asked to revaluate the competitive set forthe hotel. Your hotel is a 350-room 3-star hotel that isheavily leisure but also attracts transient business customers.
You have the following potential hotels to selectfrom for your competitive set. Select three competitors from this list andprovide your reasons for selecting these as the most appropriate hotels tobenchmark of:
Hotel A: 775-room 4-star hotel one block from your hotel. 60%
group hotel with 55,000 square feet of meeting space.
Hotel B: 125-room 5-star boutique hotel across the street from your
hotel. Strong transient base. Retail rates average $100 to $125 above
your hotel.
Hotel C: 300-room 3-star hotel 2 miles from your hotel. Similar type
of customer base but different corporate demand generators.
Hotel D: 500-room 3-star branded hotel 4 blocks from your location.
Very strong brand loyalty program that gives them a significant distribution
advantage over your hotel.
Hotel E: 425-room 3.5-star historic hotel. three blocks from your
hotel 40% group mix. Also strong in leisure transient.
Hotel F: 280-room 3-star hotel. One mile from your hotel. In a less
desirable neighborhood than your hotel, more remote from the
major demand generators in the market.
Which 3 hotels would you select for the competitive set? (And why?)
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