Hospitality & Leisure Company

Hospitality & Leisure Company

Roles
Financial Advisor
  • Worked with company leadership
  • Increased net margin to nearly 15%
  • Operating processes were defined, documented and communicated

The $4B international hospitality and leisure operator served 70MM guests per year. CR3 professionals were engaged as operational improvement consultants to improve financial and operational performance. The team implemented Six Sigma throughout the global business training executives and general managers. The results included increasing annual EBITDA by $100MM and increasing net margin to nearly 15%, taking the hotel well above the industry average of 9%.

The Situation

  • Leading hospitality and leisure company with more than $4B revenue and operator of 750 properties in 80 countries with 120,000 employees serving 70MM guests per year
  • Company owns, operates and franchises seven brands of hotels and resorts and is premier developer and operator of high-quality vacation interval ownership resorts
  • Chairman, CEO and COO sought guidance and assistance in transforming fragmented acquisition company into a consistently high-performing operating company

The Work

  • Engaged as operational improvement consultants and facilitators with goal of increasing EBITDA, accelerating organic growth, and developing common business culture - focus included balancing global standardization with local innovation, skills, tools and decision-making in high customer touch service environment
  • Goal was to increase customer loyalty and retention, increase revenue generation, and realize cost efficiencies - due to risk of introducing large organizational change, two-month design process was utilized to ensure implementation success – enabled “Black Belts” as full-time business improvement project managers
  • Implemented Six Sigma throughout global business - trained executives and general managers to be champions
  • Enhanced existing management system using financial and process dashboards to identify opportunities and drive improved business performance
  • Defined, document and communicated operating processes, to aid employees in improving and delivering consistent service to consumers
  • Trained managers were trained in analytical problem solving, change management, and project implementation so that initial and ongoing process improvement became a way of doing business

The Results

  • Worked with company leadership increasing annual EBITDA by $100MM
  • Increased net margin to nearly 15%, making hotel one of most profitable companies, well above industry average of 9%
  • Operating processes were defined, documented and communicated in order to aid employees in improving and delivering consistent service to consumers
  • Managers throughout the global business were trained in analytical problem solving, change management, and project implementation so that initial and ongoing process improvement became a way of doing business

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