Hotel Consulting

Four Seasons Hotels and Resorts is regarded as one of the top luxury hotel brands in the world has been named by Fortune Magazine as one of the "100 Best Companies to Work For". It is a company that is dedicated to delivering exceptional customer service and strongly believes that the key to their success is their own people. Since Four Seasons originated in Toronto, where the corporate head office is also based, there was a need to re-vamp the Toronto property, often considered outdated, and bring it to the more modern level of newer properties worldwide. Instead of undergoing major renovations, it was announced that that the current property would close completely and a brand new property would be built at a new location one block away. Four Seasons Toronto is essentially hoping to move up its current status as only a 4 star hotel to a 5 star hotel. In an effort to become a more midsize hotel that is completely focused on delivering personalized service, the number of rooms will drop from 380 to 249.

Since there is a decrease in the number of rooms, and technically a new hotel is being built, a staffing issue arises. A decision needs to be made regarding whether the hotel will hire new employees and which employees from the closing property will be transferrable. The current hotel needs to consider which is the most cost efficient strategy in executing this without losing sight of their motto of taking pride in their employees. A clear channel of communication needs to be created to prevent periods of uncertainty and turmoil, which could contribute to a decrease in the level of customer service at the current property.

In this unique case, the Four Seasons would benefit from using a consultancy approach to help them to make the transition because unlike most inside managers, consultants are a huge source of wisdom in transitions and change management. They are able to educate management on job security, unions, and other concerns that inside managers are not able to foresee and do not have the proper knowledge to handle. With regards to staffing issues, hotel consultants are at arms length and do not have a vested interest one way or another on the outcome, therefore being able to give a much more objective and practical opinion. Finally, consultants can use their own past experience to identify areas for mistakes or unexpected consequences which helps to plan for a smoother and more efficient execution.

Part 2

The toughest and most important decision that will need to be made in the transition will be deciding which employees will be hired at the new property, whether or not to transfer employees from other Four Seasons properties worldwide, and how many new employees outside the company will be hired. As a consultant, I would first need to meet with the new owners and establish a firm budget on how much they are willing to spend. Next, I would meet with Human Resources at the current property to discuss the past performance of employees. Finally, I would then conduct a SWOT analysis, which would weigh:

* Cost of keeping employees vs. the cost of severance

* Cost of training new employees to bring them up to speed on Four Seasons standards and if hiring brand new employees would affect the level of service that is expected to be delivered

* Cost