ASSIGNMENT

The Shangri-La Hotels and Resorts of Sydney



Table of Contents

Executive Summary1

Introduction1

Background2

The Shangri-La Hotels Project3

Build Quality4

Challenges, Aims and Goals4

Economic Viability and Environmental Sustainability5

The Success6

Conclusion6

The Shangri-La Hotels and Resorts of Sydney

Executive Summary

Hong Kong based The Shangri-La Hotels and Resorts of Sydney currently owns and manages 71 hotels under the Shangri-La. The hotel is a five star luxury targeted to the upper end business customers and tourists. The Shangri-La hotel of Sydney presents an example of how structures so big can be completed in the times of global financial crisis and still become a roaring success. The Shangri-La hotel of Sydney has recently launched a $20 million guest room refurbishment. The number of visitors and tourists coming to Sydney is increasing and the hotel industry will be on this front foot to cash this incoming increment. The new look of The Shangri-La hotel of Sydney is heightened level of luxury of customers. The purpose of all this refurbishment is that, the Shangri-La hotel of Sydney wants to become the Sydney's leading five-star hotel and wants to be the benchmark setter in the industry (SMH, 2011). The new luxury of The Shangri-La hotel will be creating new standards for the others to follow.

Introduction

The service industry is very competitive and involves simultaneous performance on many fronts. It requires excellent structure, timely performance and effective demand management along with superior and value added services to make the customers feel delighted (Prideaux, Moscardo, and Laws, 2006: 274). The asset management is all about excellence in operations, guests' satisfaction, marketing strategies, environmental efficiency, maintenance, and financial benefits in the realm of hospitality (HOS 201 Study Guide, 2011, p.7). The efficient services are attached with the essential assets that create value for all the stake holders including, owner, staff, investors and most important guests (HOS 201 Study Guide, 2011, p.6).

The Shangri-La hotel of Sydney presents an example of how structures so big can be completed in the times of global financial crisis and still become a roaring success. The city is now having increased number of tourists and visitors coming for leisure and business purpose after the recovery of financial crunch. This paper discusses the refurbishment objective, and challenges associated with the project. The paper will highlight the performance effects and aims that led the Shangri-La Hotels and Resorts of Sydney to start this project in proactive manner.

Background

The need for refurbishment is inherited in the fact that the number of visitors is anticipated to increase further, and also the old style hotels will soon become outdate and the trend of refurbishing will soon be a normal practice in Hotel industry of Sydney. Jones Lang LaSalle says that, the hotel development registered 241 rooms to the project pipeline in the past ten months (Press release, 2011). The Singapore owned Investment Corporation's Shangri-La hotel of Sydney, consulted the GVA project control group and interior designer, Hassell for the project. The Simon Guinns who is the managing director at GVA property control group state that old building of hotels in Sydney will either ...