Industry Insights

With globalization, customers, management processes, employees, products, and sources of capital will be competed for and will move across national boundaries. There are several challenges that the hospitality industry faces today including labour cost issues which is the biggest operational expense, labour shortages which necessitates strategies to attract and retain qualified workers, cost containment without sacrificing quality standards or customer satisfaction, fall in occupancy ratios resulting from increased competition and the global slowdown, price wars, increased guest sophistication with higher service expectations, keeping up with the fast pace of technology and others. It will become increasingly difficult to sustain profit growth and improved return on investment performance because of:

  • Increasing operating costs that will outpace the growth of Revenues Per Available Room
  • Increasing labor and benefits costs that are being driven by government regulations
  • Rising capital costs and the need for reinvestment that will adversely affect hotel returns
  • Higher Energy costs.

GSC Services

Our specialised consultants in the hospitality sector provide the following services:
  • Capital advisory which includes partnership assistance, due diligence support, M&A and financial analysis
  • Performance reviews and audits including remuneration assessment, service line analysis
  • Review of core hotel operational systems like Opera, Fidelio etc.
  • Revenue assurance for hospitality and implementing a continuous monitoring system for hotels
  • Internal audits
  • Technology consulting
  • Process consulting
  • Strategic planning including feasibility studies, revenue management, business and service line strategies etc.
The established international hotel chains such as Sheraton, Hyatt, Hilton, Meridien, Forte and Intercontinental, currently dominate the management of upscale hotels in the Middle East with more than 90 percent of the total rooms available in the region being managed by these major groups