Case study: The Courthouse Hotel

(Source: CIPD Case Studies Club; Author: Stephen Taylor, Manchester

Metropolitan University, 2006)
The Courthouse Hotel is a large, privately owned establishment
located in the centre of a large city. Once the major hotel in the city, it has
in recent years struggled to maintain profit margins in the face of
competition from three new hotels operated by well-known national and
international chains. The Courthouse maintains a three-star standard of
service, competing primarily on the basis of cost. Its prices are therefore
kept considerably lower than those charged in the newer hotels, while the
range and quality of food and accommodation are also of a lower
standard. The hotel has 150 bedrooms, a bar, a carvery style restaurant,
and a function room which is used for private dinners and business
meetings. There are no large-scale banqueting facilities, no porters and
no room service.
Important points:
Good central location
Competition - doing better but why? Possibly need to look at
present systems being used
Three star standards - good or not so good and why? May not be
suitable in future for wealthy clientele. Need to look at present
condition of rooms and redecorate/refurbish/interior decoration
Front office - room sales and co-ordination with AO department
Is the bar adequately stocked and run? Carvery style restaurant suitable for this standard, but may need to be upgraded/changed.
Function room only no banquet facilities
Staffing and service problem - no porters and no room service
While there are one or two part-time members of staff, 95% are
employed on full-time permanent contracts. With the exception of a
few senior managers, administrators and night workers, the staff
work either early or late shifts (ie 6.30-3.30 or 3.00-11.00). Because
the vast majority of the hotel's guests are business people staying on
week-nights, staffs are required to work only one weekend in every
four.

Important points:
Shift timings do not cover the whole 24 hrs
Scheduling of shifts has become a habit - will they be able to work
with other schedules?
Staff development programmes required as existing work hours and
practices will not be acceptable - implementation of change
management

Three months ago a well-known businessman purchased the hotel with a

number of interests in the city. He has decided to change the business
strategy by moving the hotel up-market to a four star standard and
offering a wider range of services. A major refurbishment is planned,
together with the opening of a new banqueting suite, an la carte
restaurant, a leisure club, a full portering service and extensive lounge /
room service operation. In staffing terms there is a need to improve the
interpersonal skills of staff and to raise general standards of customer
service by a substantial margin.
Important points:
New owner familiar with the city
Already carried out study and thought about future of the hotel, has
probably compared with what the competition is offering
This paragraph shows that he has already looked into the current
situation of the Courthouse and thought about how to bring about
changes
Has recognized the need to improve interpersonal skills and service
standards of the staff
The rationale for these developments is the impending opening of a new
convention center a short walk away from the hotel. From January next
year it is expected that the volume of trade will increase by 60 per cent,
provided the Courthouse can raise its standards to those expected of a
wealthier and more international clientele. The problem, from a people
management perspective, is the likely erratic nature of business patterns
once the convention centre opens. Periods of several weeks will go by

with relatively little occurring in the centre, punctuated by shorter periods

of frenetic activity when major conferences, exhibitions, concerts and
sporting events take place.
Important points:
Strategy has already been determined bearing in mind the opening
of the new convention centre close to the hotel
Looking forward to an expected increase of 60% in business
However, also acknowledging the fact that business depending on
the convention centre may be a little erratic - so will have to take
these into account
A more specific opportunity presents itself next summer, when as part of a
bid to publicise the city's new convention centre, the government has
announced that it will be hosting a major intergovernmental conference in
the city. For the duration of this event each hotel will house a particular
delegation, with the Courthouse being allocated to the Germans. This
means that the entire hotel will be taken over by the German Chancellor,
other senior German politicians, advisers, civil servants and 75 accredited
journalists for a week next summer. During that period there will be a
heavy security operation in the hotel. It will also have to host several
press conferences and a series of breakfast meetings at which the
Chancellor will meet other world leaders. In addition, it will have to
maintain a far higher standard of cuisine and service than it is
accustomed to providing. If successful, a large amount of positive
publicity can be guaranteed. If, on the other hand, the hotel conspicuously
fails to provide the standard of service expected by a Government
delegation, the ensuing negative publicity way will undermine the whole
refurbishment strategy planned by the new owner.
Important points:
The convention centre is looked at as an erratic but more long term
strategy
The upcoming conference presents the opportunity for the
Courthouse to upgrade and implement new strategies within a
particular time frame
Will need to think about new staffing procedures as well as up
gradation in all departments

Court House Hotel: Changes to be implemented

.Change in Brand Standard..to up-market 4
Star Standard (Issues would be Leadership/ Teamwork)
.. New Banqueting Suite (Issues would be
Managing Change/ Teamwork/ Training for F&B Department and Food
Production Department developing more skills like audio visual sytems,
banquet menus additional Kitchen and service equipments and additional
staff permanent and temporary..their training and motivation;
Housekeeping Department Can think of Maintenance so may be new
Machinery required and so TrainingFront Office may have to CoOrdinate Here; Issues like Co-Ordination with F&B is Important as they
have to probably use a cashier to sell Banquet Tickets also update
bulletin boards, Revenue management techniques like group booking
pace has to be implemented as room sales will be directly dependant)
A La Carte restaurant (Issues would be
Managing Change/ Teamwork/ Training for F&B Department and Food
Production Department Co Ordination with Other Departments Service
Skill enhancement like more different Food and Drinks to be served
keeping in mind wealthier and International Clientele; Housekeeping
Department Can think of Maintenance so may be new Machinery required
and so TrainingFront Office would need to know opening and closing
hours of Restaurant and Bar so that upselling skills could be used to raise
then RevenueTraining Skills Important)
.A leisure Club (Issues would be
Managing Change/ Teamwork/ Training for F&B Department and Food
Production Department; Housekeeping Department Can think of
Maintenance so may be new Machinery required and so TrainingFront
Office have to think about Frequent Travelers and Frequent Fliers and
how to bring them back..Training Skills very Important)
.Full Portering Service (Issues would be mainly For
Front Office as Concierge Services are important here so Training Skills

Important also developing and maintaining contact with the Convention

center would be important)
.Extensive Lounge (Issues would be
Managing Change/ Teamwork/ Training for F&B Department and Food
Production Department; Housekeeping Department Can think of
Maintenance so may be new Machinery required and so TrainingFront
Office have to think about Probably having a business center and catering
clientele here)
. Room Service Operations
(Issues would be Managing Change/ Teamwork/ Training for F&B
Department and Food Production Department;)
Required Changes:
1. Improved Inter Personal Skills : Training on Soft Skills
2. Raise Customer Service standard by Substantial Margin: Required
Customer Feedback so Front Office Plays a role here

Take a Note:
1. New Convention Center would Open Shortly near to the Hotel
(Required Maintenance of Contact / Competition can play a role
here)
2. Volume of Trade can increase by 60% if Courthouse can raise its
standard. (Shows more Staff can be required..So Training Issues
3. Clientele Wealthier and International Clientele (Understanding New
Culture so Multicultural environment supportive systems to be
implementedFor ex.. German Delegates will Visit..They are
Political Figures German Chancellor is there so security Issues
Important; Language barrier is expected required Translators and
Interpreters, also multilingual staff helps..Teaching how to greet in
German Language can definitely help the Front Office Staff to
create a more permanent impression)

4. Convention Center Business Pattern Seasonal in Nature.. Naturally

more Temporary Staff has to be recruited..issues here would be
training, motivation and retention of staff.
5. Major Intergovernmental Conference, German Delegate (Security/
Far Higher Standard Food and services/ Interpreters - Multilingual
Staff)
6. 75 accredited Journalist (Opportunity for positive Press
feedback..Press to be Handled by a single person Hotel Media
Manager..Where press meet will occur.What will the Press require
think in the Lines
7. Refer Page 32 ..6.3 (actually page 38 in pdf) Study Guide Para 2