Evaluate the internal resources and assets that Al-Hamra possesses. Are they adequate under prevailing conditions? Al-Hamra is a budgeted hotel established in 1980 in the middle of Dammam business centers. It is managed by an experienced Swiss hotelier who managed to attract Western businessmen through reasonable prices and home atmosphere. They accounted for about 31 % of European customers in 1985. Al-Hamra has not been as successful as some of his budget class competitors in attracting other nationalities, particularly Saudi and Far Eastern nationals.

Lately, the hotel owners and management have been concerned about the continuous decline in room occupancy.