Development of a profit planning framework in an international hotel chain: a case study

Abstract

This article presents the results of a project undertaken to increase the effectiveness of decision makingat the property level in the Europe, Middle East, Africa division of an international hotel chain. The objective of the project was to provide the basis for a more informed approach to routine financialplanning and control decisions of property management teams with the aim of enhancing operational profitability. The techniques used to underpin the framework are evaluated in relation to their practical application in the decision‐making process and the rationale and method of implementation of the management development programme is explained.The framework was approved by the company’s management board for implementation throughout the division and feedback from property management and assessment of financial results suggest the approach has made a significant contribution to profit improvement.