UK Custom Essay Sample on «Capital Investment Plan: Louise Hotel»

Capital Investment Plan: Louise Hotel

SWOT Analysis

Louise Hotel is a service resort focusing specifically on the relaxation and spa services. This exclusive focus on approaches tailored for each customer has enhanced continuous growth. This hotel has become a pillar of the industry in Texas. In comparison to other service providers in the hospitality industry, this business has seen uniform revenue increase as well as successful achievement of its objectives.


Effective management is a clear strength of the Louise Hotel. The managers are successfully motivating workers to set performance standards for the whole industry. The management compensates employees well while delivering salaries on time. The workers get paid holidays and sufficient rest hours and days. They receive fair treatment as well. The result of this approach is motivated human resources who will to stream maximum efforts towards the growth of the business. The administration also embraces feedback in which personal views are assessed and implemented whenever possible. The customer attendance is superior as a result of staff’s dedication. The Hotel management is driven by the desire for growth and acquisition of large market share. The goals have triggered management to hire qualified staff with an excellent understanding of their roles and techniques for the execution of duties (Dewees, Birkenmaier, & Berg-Weger, 2013).

Another strength has roots in the Hotel’s mission. Since the mission concentrates on the maximization of hotel’s value through the provision of healthy spa service delivery in combination with outstanding guest services, the activities are directed towards the unforgettable customer experience. The environment is clean and healthy, and measures are devised to see customer retention by offering services that motivate clients to return. The Hotel’s vision defines it as the leader in the hospitality industry. Businesses can never become leaders in their respective industries unless they strive for improvement of each service and attraction as well as retention of as many clients as possible. Louise Hotel is found in the list of the largest spa businesses in Texas. The size aspect communicates its clear ability to reach the top of the industry.

The mission of Louise Hotel is to maximize value by providing a healthy spa services and an excellent atmosphere. The vision is to be a leading company in the hospitality industry due to unique and elegant style. The hotel aims to provide healthy and relaxing ambiance with a personal touch.

The Louise Hotel has a clear strength of managing the adverse effects of competitors. The ability of the management to outsmart competitors portrays the business’s survival capacity. Intense competition in the hospitality industry can be solved by product differentiation. The hotel identifies a specific market and devices tactics for overcoming present and potential competitors. For instance, some clients require secluded and noise-free places where they can conduct business. The Louise Hotel has customized services for such clients. They are offered special comfortable rooms with special facilities and phone services for their own purposes. The Hotel has vans that allow clients to travel easily.

Customers should never struggle or beg for services (Westhues, Lafrance, & Schmidt, 2001). There are standby employees or attendants who respond quickly to the customers’ requests. Operational skills and quality service standards are part of the Hotel’s performance that counter competition well. The equipment used at the Louise Hotel is modern and specialized. The Hotel has applications for smartphones allowing guest to book of services they desire directly from their phones. Clients can make advance booking of accommodation without visiting the Hotel. Such approach to service has led to an increased number of guests. The feedback about the mobile application has been very positive, as most clients feel that all services need to be modernized for quicker access. The already accommodated clients can also book other services, including meeting hall, via their mobile phones. This technique has expanded the business’s competitive edge greatly.

The Louise Hotel’s strategic location is another strength. The business is situated in Houston, in about a ten-minute drive from the Galleria shopping arcade. Thousands of travelers and tourists visit Houston, as it is the largest city in the US. Most decide to stay at Louise Hotel while visiting Houston. The advantageous geographic location allows customers to find their way to the hotel easily. In addition, marvelous services motivate clients to come back to the hotel. The services are differentiated in order to ascertain that the diverse categories of customers are catered for. For instance, massage, skin and facial care, nail and hair salon, medical spa, body treatment procedures, Bikram yoga, etc. are offered. The Hotel carefully serves the needs of families of the business persons who spend their holiday in Houston. The hotel has established shuttle services that can take tourists and clients to various destinations. The geographic location also considers the needs of corporate employees who wish to spend leisure time in the hotel. Such corporate workers are provided with the best environment so that they may execute their minor job task outside of the workplace. For this that spacious rooms contain wireless internet, coffee makers, ironing boards and writing desks.

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The biggest weakness of Louise hotel is easy adoption of techniques for the competitors. The numerous growing rivals can adopt the same differentiation approach. The activities of the Louise Hotel are transparent and easily reproducible. Moreover, competitors in any industry may pay some insiders to acquire the methods and formulas used by the successful rivals. The Louise Hotel, on the other hand, boasts of its transparency, but may be easily struck by the dishonest competitor.

Another weakness is the inability in the fragile an unestablished brand. Numerous travelers, and especially tourists, have a tendency to stick to familiar brands and fail to accept substitutes. The parking in the hotel is another weakness that has caused countless negative comments from the guests. The hotel lacks a designated parking place, which causes many customers to complain.


Louise Hotel has two opportunities. The first one is its technological advancement. Technology assists with the internet-based advertising and the usage of mobile applications allows clients to book hotel services. The location of the hotel close to the US largest city enables business to access superior and modern technologies and computer specialists who offer specialized services. The second opportunity is the continuous flow of persons into the city. The presence of numerous travelers as well as tourists has created an extensive customer base. As a result, the revenue of the hotel grows attracting more investors. The booming oil business in Houston has led to the increased demand for hotel and spa services by persons traveling to this location on business.

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One of the possible threat for the business may be caused by the growing prices of technologies and related services. The major technique of countering competition is affordable price. However, the cost of operations and supplies may become higher. The business is constantly looking for the ways to balance the price and keep improving service quality. Lowering prices would automatically lower income and may cause damage to the business. Similarly, customers may prefer services of lower quality at lower costs from competitors. Some competitors are already capitalizing on such techniques not revealing their strategies to the customers. Another threat is the possible economic downturn resulting in high unemployment and reduction in the number of traveler. There are forecasts of further decline in the number of customers in the hospitality industry.

Louise Hotel’s activities are directed towards profitability and revenue growth. The mission and the vision were categorically chosen to point to the course that the business should adhere to. The mission explains that the business should maintain maximum value by offering excellent client service and healthy spa provision. The vision mentions that the Louise Hotel strives to become a leading company in the industry of hospitality. These two statements have a clear relationship with the revenues and profitability nature of Louise Hotel. The need for more profits has motivated the management to come up with tactics for stabilizing customer loyalty. As a result, new quality services at competitive costs have emerged. The efforts are made to cause client retention and satisfaction. The Louise Hotel reinforces these goals by employing qualified personnel competent in handling customer relationships as well as product and market segmentation. Since ascertainment of loyal customers is dependent on the service quality, Louise Hotel has tirelessly been working to ensure that customers never complain, but rather enjoy their stay. The result is the creation of products that are tailored individually for each client. It is crucial to comprehend that customer satisfaction is subject to the company’s capacity of value creation via properly outlined service concepts. The Louise Hotel used every opportunity to compensate and motivate employees in order to motivate loyalty among them, and in turn such workers create value (Davies, Chun, & Kamins, 2010). Louise Hotel has very productive employees, since they are satisfied and loyal. They work well under minimum supervision. The Louise Hotel has embraced internal quality of service aiming for employee satisfaction. The employees are assigned those duties that they can execute with competency. In addition, frequent training ensures understanding and expertise. The Hotel management does recognize as well as award the workforce as part of internal quality enhancement.


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