Hotel Accommodation Management Report
Hotel Accommodation Management Report
APRIL 2021
GROUP ASSIGNMENT
BY: GROUP 5
STUDENT NAME ID NO
I hereby state that this material is original and a result of my effort. Any material
copied from other sources will be given their due respect in the form of
referencing and bibliography.
Rita Lo
Subject: HSP 2014 HOTEL ACCOMMODATION MANAGEMENT
GROUP ASSIGNEMENT REPORT RUBRIC
Hotel products and services Hotel products and services are Hotel products and services are Hotel products and services are Hardly present the Hotel
are presented clearly with presented clearly with some presented mainly follow the hotel presented mainly based on products and services, no
General features additional explanation and explanation and justification for details with limited explanation for hotel details with general further discussion on the
of hotel products justification for each of each of inventory’s details. inventory’s details. Presentation of explanation for inventory’s inventory’s details.
and services inventory’s details. Presentation of inventories are inventories are simple. details. Presentation of
presentation Presentation of inventories supported with some relevant inventories some are based on
(20%) table are supported with details. internet sources.
relevant and accurate details.
Present accurate room types Present accurate room types for Present the chosen room types and Most of the room type chosen Present the room type
for the group assignment the group assignment research room rate for this group for the group assignment study chosen for the group
research study. The chosen study. Include some explanation assignment with limited might not be accurate. assignment study with no
Room type and room types and room rate of the chosen room types and explanation on the room and rate Presentation of the chosen further justification on the
room rate are explained in relevant to room rate details. details. Some part of the room room types and room rate details.
identification the study objectives. type chosen might not be accurate include limited explanation and
(15%) for this assignment study. justification.
HSP 2014 HOTEL ACCOMMODATION MANAGEMENT GROUP ASSIGNMENT REPORT RUBRIC (cont.)
Summary for value score analysis is Present the value score analysis Present the value score analysis Present the value score Report summary
presented clearly with further results with explanation on the results with some explanation on the analysis results in general presentation is not clear
justification on the finding in finding in relevant to the value finding in relevant to the value score hardly relate the discussion explanation do not
relevant to the value score room score room rate and hotel room room rate and hotel room rate with value score room rate relate with the value
Report rate and hotel room rate rate information. Explanation information. Explanation includes and hotel room rate score room rate
summary (20%) information. Presentation supported includes additional analysis on general analysis on the relationship information. Limited analysis analysis.
with further analysis on the the relationship of value score of value score with room rate on the relationship of value
relationship of value score with room with room rate determination. determination. score with room rate
rate determination. determination.
Used relevant references in the Different sources used as Limited references in the report with Majority of the references lists Reference’s list is not
Accuracy of report with accurate citing and references but did not cited and minor citing error used is outdated / not relevant relevant with the report
referencing and quoting of sources throughout text, quoted appropriately in the with some wrong referencing and wrong referencing
reference lists with accurate reference list report shows minor mistake on style style
(5%) the reference text
5.0 Findings 10
Appendix 19-23
1.0 Introduction
In this study, 10 full-service hotels located in Kuala Lumpur Malaysia are
chosen, to conduct and examine the value score analysis. The purpose of this study
is to understand the importance of value scoring in determining hotel room rate
generation. Full-service hotels have been chosen in this study because a variety of
services can be provided for this type of hotel to satisfy customers' needs and
expectations, and suitable for all the value scoring categories (Poon & Lock‐Teng
Low, 2005). In addition, analyze hotel features and values in order to identify the
factors of the value. For room analysis, this study uses coding to identify and define
the accurate room category. As most hotels have basic rooms size about 431 [Link].
Hence, this study is focused on standard room size. By analyzing hotels, it allows to
study the score and rate proposed of each hotel. After determining the room rate,
compare the results with actual room prices in order to analyze the factors of the
value. To study the 10 full-service hotels chosen, both primary and secondary
research are used. Information such as room rate is obtained through primary
research by calling each of the hotels customer service or reservation team. In
addition, secondary research was used to obtain the hotel information such as
facilities, room sizes, services available to determine the values of the hotels. The
table below shows the brief introduction of the 10 chosen hotels, such as the owner,
establishment, and unique characteristics of the hotels.
1
Hotel Establish Owner Management Uniqueness Total
Room
Four Seasons 2018 Isadore Four Seasons Extraordinary dining, stylish and 209
Hotel Kuala Sharp Hotels and spacious accommodation and legendary
Lumpur Resorts service
The Ritz Carlton 1997 Albert Ritz-Carlton Luxurious, elegant rooms and full-butler 364
Kuala Lumpur Keller service
Shang-Ri La 1985 Robert Shangri-La Offer family activities, international and 662
Hotel, Kuala Kuok Hotels and local cuisine, commitment to take care
Lumpur Resorts of guests
Le Meridien 2004 Air Marriott Famous for its longest free-form outdoor 420
Kuala Lumpur France International swimming pool with over 12 meters and
unique sun loungers are partially
submerged in the water
The Majestic 1932 Loke YTL Hotels Historic hotels combined with modern 253
Hotel Kuala Wan luxuries and stylish innovations
Lumpur Tho
Hilton Kuala 2004 Conrad Hilton Located in the center of the business 503
Lumpur Hilton Worldwide district, offering world-leading
conference technology
EQ Kuala 1973 Datuk Hotel Recycles water, uses natural sunlight to 440
Lumpur Lim Equatorial save energy in all rooms including
Kong Management meeting rooms, and is equipped with
Wai Sdn Bhd high-efficiency magnetic refrigerators.
2
2.0 Hotel feature and value analysis
2.1 Hotel Feature Analysis.
3
2.2 Value Score Analysis
Referring to table 1, the points are amended for the location category.
Shopping has become an increasingly popular trend with travellers (Meng et al.,
2019). Hence, the score for shopping in the value score sheet has been amended
from 5 points to 25 points, as it is necessary for hotels to meet the demand of the
guest. Additionally, Kuala Lumpur is a known convention or MICE city. Other than
accommodation, MICE industry is also a crucial source of revenue for hotels, hence
convention centre’s is a crucial requirement to meet the needs of the hotels target
market (Hussain et al., 2014). Thus, the points have been amended from 15 to 25.
Due to the hotel’s geographical location, having a waterfront and beach area is not
feasible, thus the points have been amended from 25 to 5. The hotels are in the city
centre of Kuala Lumpur and there are no beaches within walking distance. Hence,
hotels located in urban areas have cityscape activities while waterfront resorts are
typically located in rural areas (refer to table 1). No points have been amended for
the airport subcategory of each hotel. Malaysia has numerous forms of
transportation that customers may use such as KLIA express train or GrabCar (Jais
& Marzuki, 2019).
4
Furthermore, refer to table 2 for the points amendment under the category of
room facilities. Consumers are more technologically savvy owing to the introduction
of new technologies and market trends. Hence, hotels must adapt to their guests'
needs (Cobanoglu et al., 2011). As a result, guests' use of free local calls has been
steadily declining as guests are increasingly relying on their mobile phones hence,
there may be no need for guest room phones with free local calls. Thus, points have
been amended from 15 to 0 points. Furthermore, High speed internet in resorts is
considered essential according to market trends (Sakolnakorn, 2021). Thus the
points have been amended from 15 to 30 points as there is a vital need to provide
high speed internet to meet customer needs. For example, business tourists use the
WIFI for conference calls and leisure tourists also use it for social media. The points
for the Mini Fridge have also been amended from 15 to 5 as the hotel rooms already
provide mini bars that can be used for products such as beverages. Hence there is
no need for an extra mini fridge.
5
3.0 Room analysis
3.1 Room Category
To perform the room analysis, it started by a secondary research on
identifying all the room categories for all the 10 full-service hotels chosen (refer to
appendices). The room sizes were identified by the information on the official
website of each hotel. All the sizes were measured by square feet, however for EQ
hotel, as the room size was stated in square metres, a calculation of 1sqm = 10.7639
sq. ft was used. Based on the list of room sizes, coding is used to determine and
define the accurate room category analysis. The coding used in this study is from
387sq. ft to [Link] (refer to table ---). The coding is identified to standardize the
study, it uses the average size among all 10 full-service hotels. Among the 10
chosen hotels, most of the hotels' basic room sizes were about 431 sq. Ft.
Therefore, this study focuses on the most basic and standard room size offered.
However, for Four Seasons Hotel Kuala Lumpur, the room size available is
ranging from 474 sq. ft to 2,594 sq. ft ("Four Seasons Hotel Kuala Lumpur", 2021).
Therefore, the smallest and most basic room in Four Seasons KL is used in this
study, which is the Park View Room measuring 474 sq. ft. There are several factors
that Four Seasons Hotel Kuala Lumpur is chosen in this study despite it being out of
the coding range. Firstly, is due to the location, as this study focuses on the full-
service hotel located in Kuala Lumpur. In addition, Mandarin Oriental Kuala Lumpur
is located relatively close to Four Seasons Hotel Kuala Lumpur, therefore by
analysing both the hotels it allows to study each hotels scoring, and rate proposed.
6
3.2 Room Rate Study
The date chosen for the study is Monday 6th to Tuesday 7th September 2021
mainly because this period is outside of the FMCO phase in Malaysia. By looking
into the official website, the rate between the month of June and September has
different rates depending on the hotels. Therefore, the rate in September is relatively
not affected thus it is more accurate. For this study, the room rate was obtained
through both primary and secondary data. For the primary data, phone calls were
made to all ten chosen hotels to receive the data regarding the room rates. For some
hotels, as the rate for walk-in rates is the same as the rate shown in the official
website, the reservation team of the hotels guided to collect the data from the
websites.
1 Four Seasons Hotel Kuala Park View Room 474 sq. ft RM1,410
Lumpur
5 The Majestic Hotel Kuala Deluxe King 430 sq. ft. RM480
Lumpur
9 Hilton Kuala Lumpur The King Deluxe 409 - 472 sq. RM 350
Room ft.
7
4.0 Value score in Room Rate Determination
In this study, to standardize the scoring for all the 10 chosen hotels, there are
certain criteria set. Firstly, in the first category for property - general, subcategory of
newly remodelled room and public area, full score is given to hotels which refurbish,
remodel, or build less than 3 years from 2021. Thus, if the rooms or public area is
remodelled in the past 4 years but less than 5 years, it will be given a partial score.
As the hotel value depreciates over time, hotels must ensure that the value of the
brand is maintained by remodelling rooms or the public area of the premises. This
will enable the hotel to stay sustainable and competitive in the market (Guilding,
2003).
In addition, for the location, hotels located within the airport will be given full
score, partial score for hotels located under 10km from the airport. In this study, the
airport is based on KLIA. KLIA located in Sepang District is the main international
airport in Malaysia, and in 2019 it accounted for more than 62million domestic and
international passengers (New Straits Times, 2020) . As the hotels chosen in this
study are full-service hotels, KLIA will be one of the airports that covers most of the
travellers from domestic and international. Other locations will be scored full points
for walking distance from the hotel, which is within 1km, partial score for under 5km.
Although walking distance has no definite range or measurement. In addition, Kuala
Lumpur has adequate linkages, inefficient design making it not pedestrian friendly
compared to other countries (Zakaria & Ujang, 2015). Therefore, this study
standardized the distance of under 1km, which is about 10 minutes’ walk as walking
distance ("Walking Time for Distances From a Mile to Marathon", 2021).
With this criterion, the below shows the scoring for the 10 chosen full-service hotels
in Kuala Lumpur. (Score sheet)
8
CATEGORY CAT PTS AMENDMENT ITEM PTS Four Seasons Hotel Kuala Lumpur The Ritz Carlton Kuala Lumpur Shangri-La Hotel, Kuala Lumpur Le Meridien Kuala Lumpur The Majestic Hotel Kuala Lumpur JW Marriot Kuala Lumpur Grand Millennium Kuala Lumpur Mandarin Oriental, Kuala Lumpur Hilton Kuala Lumpur EQ Kuala Lumpur
ACTUAL
ITEM PTS
PROPERTY - GENERAL 225 215 175 140 140 135 175 150 150 125 150
INTERIOR CORRIDOR 25 25 25 25 25 25 25 25 25 25 25 25
ATRIUM 25 25 25 25 25 0 25 25 25 25 25 0
BRAND NAME - LUXURY pick one> 50 50 50 50 50 50 50
BRAND NAME - UPSCALE 40 40 40 40 40 40 40
BRAND NAME - MID MKT 30 30
BRAND NAME - ECONOMY/BUDGET 20 20
NEWLY REMODELED ROOMS 50 50 50 25 0 25 0 25 25 0 0 50
NEWLY REMODELED PUBLIC AREAS 30 30 30 15 15 15 0 15 0 15 0 0
ALL-SUITES pick one> 30 30
SUITES AVAILABLE 20 20 20 20 20 20 20 20 20 20 20 20
SPA ROOMS AVAILABLE 15 15 15 15 15 15 15 15 15 15 15 15
PARKING 20 20 15 20 15 15 15 20 20 15 15
FREE 5 5 5 0 5 0 0 0 5 5 0 0
COVERED 5 5 5 5 5 5 5 5 5 5 5 5
WELL LIT 5 5 5 5 5 5 5 5 5 5 5 5
NEW/GOOD SURFACE & STRIPING 5 5 5 5 5 5 5 5 5 5 5 5
ENTRYWAY/LOBBY 25 20 20 25 20 20 25 20 20 20 25
CLEAN, UNCLUTTERED 5 5 5 5 5 5 5 5 5 5 5 5
WELL LIT 5 5 5 5 5 5 5 5 5 5 5 5
SPACIOUS 5 5 5 5 5 0 5 5 5 5 5 5
AUTOMATIC DOORS 5 5 0 0 5 5 0 5 0 0 0 5
COMFORTABLE SEATING 5 5 5 5 5 5 5 5 5 5 5 5
MEETING SPACE 40 40 40 40 40 40 40 40 40 40 40
500+ PEOPLE 20 20 20 20 20 20 20 20 20 20 20 20
BANQUET SERVICE 20 20 20 20 20 20 20 20 20 20 20 20
FOOD SERVICE 70 70 70 70 70 55 70 70 70 65 50
RESTAURANT ATTACHED: LARGE 30 30 30 30 30 30 30 30 30 30 30
ROOM SERVICE pick one> 15 15 15 15
24-HOUR ROOM SERVICE 20 20 20 20 20 20 20 20 20
LOUNGE/BAR ATTACHED 20 20 20 20 20 20 20 20 20 20 20 20
BREAKFAST SERVICE 25 15 15 15 25 15 25 10 25 10 25
DELUXE CONTINENTAL BREAKFAST pick one> 25 25 25 25 25
BASIC CONTINENTAL BREAKFAST 10 10 10 10
FREE RESTAURANT BREAKFAST 15 15 15 15 15 15 15
FACILITIES 95 65 45 75 80 60 70 65 85 80 45
POOL - SMALL pick one> 20 20 20 20 20
POOL - LARGE 40 40 40 40 40 40 40 40 40
INDOOR POOL 10 10 0 0 10 0 0 0 0 0 0 0
POOL PATIO SEATING 10 10 10 10 10 10 10 10 10 10 10 10
PUBLIC WHIRLPOOL 5 5 0 0 5 0 0 5 0 5 0 0
STEAM/SAUNA 5 5 5 5 5 5 0 5 5 5 5 5
EXERCISE ROOM - SMALL pick one> 10 10 10 10 10 10 10 10
EXERCISE ROOM - LARGE 25 25 25 25 25 25
IN-ROOM AMENITIES 215 160 140 170 190 170 185 140 190 200 180
QUALITY MATTRESSES 15 15 15 15 15 15 15 15 15 15 15 15
QUALITY LINENS 15 15 15 15 15 15 15 15 15 15 15 15
WORK DESK 15 15 15 7.5 15 15 15 15 15 15 15 15
SITTING CHAIR 15 15 15 7.5 15 15 15 15 15 15 15 15
HIGH-SPEED INTERNET 15 30 15 15 30 30 15 30 15 30 30 15
27"+ TELEVISION 5 5 5 5 5 5 5 5 5 5 5 5
20+ CABLE CHANNELS 5 5 5 5 5 5 5 5 5 5 5 5
FREE KIDS CABLE CHANNELS 5 5 0 0 5 5 0 5 0 5 5 5
FREE MOVIE CHANNELS 10 10 10 10 10 10 5 10 0 10 10 10
PAY MOVIE CHANNELS 5 5 5 5 0 0 5 0 0 0 0 5
MINI BAR 15 15 15 15 15 15 15 15 15 15 15 15
COFFEE MAKER 15 15 15 15 15 15 15 15 15 15 15 15
HAIR DRYER 15 15 15 15 15 15 15 15 15 15 15 15
IRON & BOARD 15 15 0 0 0 15 15 0 0 15 15 15
MINI-FRIDGE 15 5 5 0 0 5 5 5 0 5 5 5
SPECIALTY SHAMPOO/SOAP 5 5 5 5 5 5 5 5 5 5 5 5
LOTIONS/SEWING KITS, ETC. 5 5 5 5 5 5 5 5 5 5 5 5
SERVICES 170 147.5 132.5 155 115 132.5 115 115 140 115 100
BUSINESS CENTER pick one> 30 30 30 30 30 30 30 30 30 0
BUSINESS SERVICES 15 15 15 15 0
CONSCIERGE 25 25 25 25 25 25 25 25 25 25 25 25
VAN/SHUTTLE 25 25 25 25 25 0 25 0 0 25 0 0
VALET PARKING
UNIFORMED BELL SERVICE
20
25
20
25
20
25
20
25
20
25
20
25
20
25
20
25
20
25
20
25
20
25
20
25
9
24-HOUR HOUSEKEEPING 15 15 7.5 7.5 15 0 7.5 0 0 0 15 15
24 HOUR SECURITY 15 15 15 15 15 15 15 15 15 15 15
TOTAL POINTS 1000 827.5 735 795 757.5 705 790 685 810 750 700
PROPOSED ROOM RATE MYR 1,000 MYR 828 MYR 735 MYR 795 MYR 758 MYR 705 MYR 790 MYR 685 MYR 810 MYR 750 MYR 700
VALUE ACCURACY 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
VALUE SCORE 0.6 1.3 1.5 1.4 1.5 1.3 2.2 1.6 2.1 1.6
ACTUAL ROOM RATE MYR 1,410 MYR 550 MYR 520 MYR 525 MYR 480 MYR 617 MYR 308 MYR 520 MYR 350 MYR 450
5.0 Findings
Following is the presentation for the value score and rate analysis for the ten full-
service hotels.
Four Seasons Hotel RM828 1.0 RM1,410 0.6 RM582 0.4 VALUE
Kuala Lumpur SIGNIFICANT
The Ritz Carlton RM735 1.0 RM550 1.3 (RM185) -0.3 VALUE NOT
Kuala Lumpur SIGNIFICANT
Shang-Ri La Hotel, RM795 1.0 RM520 1.5 (RM275) -0.5 VALUE NOT
Kuala Lumpur SIGNIFICANT
Le Meridien Kuala RM740 1.0 RM525 1.4 (RM215) -0.4 VALUE NOT
Lumpur SIGNIFICANT
The Majestic Hotel RM705 1.0 RM480 1.5 (RM225) -0.5 VALUE NOT
Kuala Lumpur SIGNIFICANT
JW Marriott Hotel RM790 1.0 RM617 1.3 (RM173) -0.3 VALUE NOT
Kuala Lumpur SIGNIFICANT
Grand Millennium RM685 1.0 RM308 2.2 (RM377) -1.2 VALUE NOT
Kuala Lumpur SIGNIFICANT
Mandarin Oriental RM810 1.0 RM520 1.6 (RM290) -0.6 VALUE NOT
Kuala Lumpur SIGNIFICANT
Hilton Kuala Lumpur RM750 1.0 RM350 2.1 (RM400) -1.1 VALUE NOT
SIGNIFICANT
EQ Kuala Lumpur RM700 1.0 RM450 1.6 (RM250) -0.6 VALUE NOT
SIGNIFICANT
10
5.1 Summary of Findings
Out of the chosen ten hotels, it indicates that only Four Seasons Hotel, Kuala
Lumpur was significant, which follows the value score in determining its room rates.
The rest, including nine hotels (The Ritz Carlton KL, Shang-Ri La Hotel KL, Le
Meridien KL, The Majestic Hotel KL, JW Marriott KL, Grand Millennium KL, Mandarin
Oriental KL, Hilton KL, EQ Hotel KL) were not significant, which means these hotels
did not follow the value score to determine their current room rates. Among the Not
Significant hotels, The Ritz Carlton KL and JW Hotel KL have the lowest rate gap
with RM185 and RM173. While Grand Millennium KL and Hilton KL have the most
significant gap, RM377, and RM400, which means they set much lower room rates
than the proposed prices.
The actual room rates of those nine hotels mentioned above are lower than
the proposed rates, mainly due to the impact of the COVID19 pandemic. First, due to
border closure and social-distancing practices, in the first nine months of 2020,
tourist arrivals to Malaysia had reduced 78,6%, from 20.1 million to 4.29 million,
compared to the previous corresponding period (Ganesan, 2021). As a result, the
overall average occupancy rate was estimated at 27.51% only (Ganesan, 2021). In
addition, hundreds of meetings and major events were also cancelled or postponed
(Priya, 2020). With a significant decrease in the number of international visitors and
business travelers, these full-service hotels in Kuala Lumpur currently target
staycation visitors, who are local Malaysians, to create revenue streams and
maintain the businesses. Therefore, the room rates were moderated to be more
affordable for local Malaysian visitors and to encourage them to visit, as Malaysians
themselves are also facing financial problems because of COVID19 (Ismail et al.,
2021). Secondly, these nine hotels are direct competitors. Hence, when there is a
hotel reducing its room rates, the others may also be influenced to moderate their
room rates, to stay competitive during the pandemic. Nonetheless, despite
moderating room rates more affordable to local visitors, the fact is that these full-
service hotels still tried to set reasonable room rates, not too low. Offering too-low
room rates to attract local visitors is not considered a good strategy. These hotels,
which are located in the heart of Kuala Lumpur, are all full-service and luxury lodging
properties, targeting the segment of premium customers. Low prices offered, for the
time being, can lead to negative effects on the brand and damage the high-class
reputation of these hotels.
11
Lastly, a hotel may lower its usual room rates if it can secure revenue from
other sources. For instance, Grand Millennium Hotel KL is now a quarantine hotel,
which offers premium quarantine packages for those in need. On the other hand,
Four Seasons Hotel KL is the only one that did not moderate its room rates in the
current situation. According to Mr. Alex Porteous, the general manager of Four
Seasons Hotel KL, the hotel has a different pricing strategy from its competitors,
when Four Seasons emphasize that remaining the usual room rates during
pandemic time is very important to cover expenses (Cheong, 2020). Mr. Alex also
believed that the remaining usual room rates would help Four Season quicker
rebound and keep them ahead of other competitors after the pandemic.
This study is based on a general focus study. This study is conducted quite
successfully in exposing the current situation of full-service hotels in Kuala Lumpur,
Malaysia. Nonetheless, there are still some limitations. Because of FMCO in
Malaysia, the research cannot be conducted on-site; hence, there may be a certain
bias for scoring when all the information was collected online and through phone
calls. In addition, it cannot be denied that the pandemic COVID19 has a significant
impact on the actual room rates of chosen hotels. Although this study chose to ask
actual room rates of hotels for one night, September 6th - 7th, to avoid the effect of
FMCO, the room rates were still lower than expected. It is suggested to conduct
another such study in the future after the pandemic. Under normal conditions without
the pandemic, the results will likely be more accurate.
(2348 Words)
12
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Zakaria, J., & Ujang, N. (2015). Comfort of Waling in the City Center of Kuala
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[Link] r
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Appendix
Four Seasons Hotel
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Shang-Ri La Hotel, Kuala Lumpur
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The Majestic Hotel Kuala Lumpur
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Grand Millennium, Kuala Lumpur
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Hilton Kuala Lumpur
Room type Size
The King Deluxe Room 409 - 472 sq. ft.
King Deluxe Lake View 409 - 472 sq. ft.
Twin Deluxe 409 - 472 sq. ft.
Twin Deluxe Lake View 409 - 472 sq. ft.
King Executive 409 - 472 sq. ft.
Twin Executive 409 - 472 sq. ft.
King Executive Lake View 409 - 473 sq. ft.
Twin Executive Lake View 409 - 473 sq. ft.
King Deluxe Plus Room 517-635 sq. ft.
Twin Deluxe Plus 517-635 sq. ft.
King Executive Plus 517-635 sq. ft.
Twin Executive Plus 517-635 sq. ft.
Lifestyle Suite 958 sq. ft.
Grand Executive Suite 958 sq. ft.
Presidential Suite 1884 sq. ft.t
Penthouse 2691 sq. ft.
EQ Kuala Lumpur
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