This case presents a challenge to students who will be expected to propose solutions for the Breaker’s Reef Hotel’s problems. In researching their solutions, students should learn about unionization procedures, hotel security procedures, and disciplining employees. More generally, students will be expected to learn that a solution for one of the problems might exacerbate the other, so tact and diplomacy are vitally important when implementing their solutions.

The Breaker’s Reef Hotel is a fictional account of an old, elegant, ocean side resort whose new owners changed drastically the type of hotel it was and the human resources philosophy of its management. Prior to the new owners, the hotel relied on the declining and aging patronage of wealthy summer vacationers. With the addition of new rooms and conference facilities, the hotel became a year-round destination for a meetings and conventions. Although the new guests did not have the affluence of the previous market, their business allowed the hotel to be prosperous all year round.

The managerial philosophy of the hotel also changed, making it more accommodating to the workers. Whereas most of the workers were seasonal during the busy summer months, the hotel was able to maintain a full-time permanent staff who were compensated better than at other properties in the region. The hotel also adopted a cross-training program for its workers, and installed an employee suggestion system. These efforts effectively encouraged employees to contribute more of their abilities and talents to the property. Under the new management with its change in market strategy and management philosophy, the Breaker’s Reef prospered.

However, recent events with a few of the workers are challenging the recent successes the hotel is enjoying. A disgruntled employee is instigating a potential vote for union representation, while, simultaneously, the hotel is experiencing an increase in thefts. The threat of unionization and the thefts create an especially challenging problem, since addressing each concern has broader implications for the hotel. Fighting the union too aggressively might create a contentious relationship with the workers. While installing elaborate security procedures to reduce theft might offend both employees and guests.

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Contact Person: John D. Keiser, University of Massachusetts Amherst, Flint Laboratory, Box 32710, Amherst, MA 01003-2710
Voice (413) 545-2535 FAX (413) 545-1235

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To introduce the concept of financial projections and capital investment decisions. The calculation and application of present value analysis is a major component of this case. The issues in this case allow for discussion of both market and financial risk, projection of business performance, and stakeholder analysis i.e. owners, managers, lenders. The selection of appropriate discount and capitalization rates is also incorporated into this case study.
 

In January 1996, the General Manager of the successful 146 room Holiday Inn in Guelph, Ontario, Canada managed by Commonwealth Hospitality Limited and owned by the Premium Limited Partnership must make a recommendation to the owners concerning a proposed 70 suite $6 million expansion. The General Manager has prepared a forecasted 10-year operating plan for the property both with and without the addition. He was concerned with the accuracy of the projections, identification of risk factors, what discount and capitalization rates to use to evaluate the capital investment and what other factors should be considered for his recommendation to the Ltd. Partnership due in two weeks. He also recognized that, should the project proceed, the Ltd. Partnership would be required to remit a $2 million deferred tax to the provincial government.
 

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Contact Person: John Patterson, School of Hotel and Food Administration, University of Guelph, Guelph, Ontario, Canada N1G 2W1
Voice (519) 824-4120 ext. 3971 FAX (519) 823-5512 E-mail jpatters@facs.uoguelph.ca

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The dilemma facing many indigenous groups in developing countries is how to tap into the fast growing world tourism industry without destroying the ecology and the culture that these indigenous people have lived in for hundreds of years. Na Bolom Institute in San Cristobal de Las Casas, Mexico is facing that dilemma with the Lacandon villages in the State of Chiapas, Mexico. NAFTA, the encroaching tentacles of government economic development, and growing tourism have all combined to create a serious threat, but also an opportunity, to these direct descendants of the Mayas.

This case presents tourism development strategies, which can provide economic subsistence to the Lacondon while maintaining their culture and protecting the sensitive ecology of the rain forest. The delicate balance facing the Lacondon and Na Bolom is obvious in the following issues:

• How much tourism is too much?
• Will the Lacondon be able to attract culturally and environmentally sensitive tourists or tourists with four-wheel drives and a destructive, live-for-now mentality?
• How can the historical isolation of the Lacondon, which has protected the Lacondon’s culture for hundreds of years, be used (but not overused) to attract tourists? How can the famous "demonstration effect" be minimized so as not to create unachievable desires among the Lacondon, particularly the children?
• How can a people who have minimal education understand marketing, web sites, hospitality training, and guest services?

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Contact Person: Eddie Dry and Stephanie Duncan, Anderson Schools of Management, University of New Mexico, Albuquerque, New Mexico 87131
Voice (505) 277-4303 FAX (505) 277-7108 E-mail edry@unm.edu
 

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This case has two general teaching objectives. The first is the conventional objective of providing students with the opportunity to do an analysis of a reasonably complex managerial situation, especially in terms of the consequences of managerial style and its buttressing assumptions and values. The second teaching objective is less conventional. Students are asked to consider the meeting preparation and meeting facilitation alternatives of the general manager and their consequences.

This case was written for use in undergraduate courses in hospitality management and organizational behavior but some usage in human resource management courses is also possible. Students should probably have some exposure to casework before dealing with this case. Since organization structure, job design and managerial style phenomena are featured in this case, it should be used after students have been exposed to these topics at minimum.

This case describes major changes at the Prospector Hotel over many, many years -- detailing management and staff changes. Until 14 months ago Chuck Franklin was the general manager (and still president), an authoritative person who made nearly all decisions. John Austin replaced Franklin as general manager but Franklin allows him to only oversee the rooms division and sales and marketing. Austin has worked for Franklin in several capacities over many years. Managers have come and gone, including Austin who briefly worked for a Holiday Inn. While the hotel is currently doing well, staff and computer system changes of late in the front desk area, often Austin's decisions, have led to many complaints which Austin is largely unaware of. At the suggestion of two front desk clerks, a meeting of all front desk staff (except the front desk manager who is on vacation) has been scheduled with Austin. This meeting will be the first such meeting ever. Austin must prepare himself to run this meeting where several potentially explosive issues could arise.
 
 

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Contact Person: Craig Lundberg, School of Hotel Administration, Cornell University, Ithaca, NY 14853 USA
Tel: 607-255-8361 Fax: 607-255-4179

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This case allows the instructor to take a class through most of the hotel development process. This case includes market analysis, feasibility analysis, financial analysis, discounted cash flow analysis, and valuation. The case has been designed such that depending on the time and interests of the instructor and students, some parts of the case analysis could easily be omitted.

The case is designed to allow for various levels of rigor. At a minimum, however, the case will challenge the student’s quantitative, reading, analytical, synthesizing, and evaluative skills.
 

This case deals with the prospective development of an extended-stay-oriented, all-suite Residence Inn by Marriott hotel. In February 1998, officials of the Claremont Companies had the opportunity to purchase for $1.2 million a real estate parcel located in Revere, Massachusetts. Claremont already owned a nearby parcel for which it was planning on developing a Fairfield Inn by Marriott economy hotel. Claremont is a privately owned, Massachusetts-based development and management firm controlling a real estate portfolio with a market capitalization in excess of $500,000,000.

Claremont owned real estate across the East Coast of the United States including office buildings, retail centers, and apartment complexes. Claremont owned one hotel, a 688-unit, all-suite Residence Inn by Marriott hotel, located near Walt Disney World in Orlando, Florida.

Claremont officials became increasingly excited about this opportunity to purchase the subject parcel, and in March 1998, took the subject site under contract, which provided Claremont with a 90-day feasibility period to analyze the viability of developing a Residence Inn on the site. If after 90 days, Claremont decided not to purchase the parcel, they would be out the few thousand dollars expense for arranging the contract and studying the proposed development. If, however, Claremont officials decided to purchase the parcel, they would pay the landowner $1.2 million and take possession of the land.

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Contact Person: John O’Neill, Johnson & Wales University, 8 Abbott Park Place, Providence, RI 02903
Voice (401) 598-1475 FAX (410) 598-4764