Brøchner Hotels is a Copenhagen-based hotel chain of six boutique hotels. Sustainability, architecture, and consumers are all essential to Fractions Hotels.
Brchner Hotels is a rapidly expanding enterprise that has expanded dramatically in just a few years. They are successful at instilling trust in customers and demonstrating their appreciation by
among other aspects, delivering a loyalty program. They believe that the best thing to do is to operate various hotels with caution.
As a result, they go to great lengths to ensure that consumers not only book a room with a bed, but also get a wide range of additional facilities. The three principles of the Brchner Hotel are passion, accountability, and care.
Fase 1: Understanding of subject 3
- Business characteristic 3
- Porters five forces 4
- Swot-lineup 4
Fase 2: Situational analysis 6
- Porters value chain 6
- Pestel-analysis 6
- Financial analysis 6
- Critical success factors (CSF’s) 7
Competitive- and growth strategies (strategic analysis) 8
- Porters generic strategy 8
Fase 3: Solution proposal 8
- Action proposals, and its accompanying consequences (challenges) Error! Bookmark not defined.
Fase 4: Gathering of information and TOWS 9
- TOWS analysis model 9
Given- & additional sources: 11
Material gathering with appendix: 11
- Appendix 1: Business model canvas (BMC) Error! Bookmark not defined.
- Appendix 2: Porters five forces 11
- Appendix 3: Porters value chain 13
- Appendix 4: Pestel analysis 14
- Appendix 5: Financial situation Error! Bookmark not defined.
- Appendix 7: Generic- and growth strategies 20
- Appendix 8: Mission, vision and goal 20
Partial conclusion: Overall Brøchner Hotel’s financial situation has improved drastically in the period, however the company still got a lot of work ahead of them
before achieving full stability within the key figures, since pretty much all of their figures are at a “non-satisfying” level.
With that being said Brøchner Hotels has been experiencing extreme growth rates from 2018 to 2019 of up to 300% and if they are able to keep that steam up
they will be looking at satisfying key figures in a very short amount of time. The company’s solvency ratio is despites experiencing a decrease on the higher end of the scale and might have some beneficial aspects with lowering it
since it might result in a higher gearing and profiting off of debt. The liquidity ratio is also on the higher end and the have to be a bit careful, because a very high liquidity could mean a large amount of excess liquidity.
And that excess will then, often be put in assets without or with very little return which in the long run will be bad for the return on invested capital.
Factor 1 - Expansion of hotels Howardsen
Due to the concentration of hotels in Copenhagen, it is impossible to extend individual hotels without continuing.
This is due to the fact that it is often not possible to extend existing hotels due to scale and building regulations.
As a result, analyzing the needs and ability of each hotel and calculating an estimation of anticipated number of visitors is a difficulty for Brchner
and if a hotel is facing high demand, expanding the capacity of each hotel room would be challenging or unlikely for Brchner.
Factor 2 - High level of service
It is a critical success factor for Brøchner Hotels to provide a high level of service, and to be able to differentiate themself from the competition in a way that weighs up with the price.
- Crucial to the operation of Brøchner Hotels is that the hotels can provide the extremely high level of service associated with the hotel chain.
It is expected by customers that the level of service is higher than what can be expected at other hotels in the area.
It is therefore also extremely important that Brøchner hotels can differentiate themselves from the competition, so that customers notice the different and good quality. This should ultimately be able to offset the generally more expensive price.