TURNAROUND MANAGEMENT THROUGH BUSINESS PROCESS RE-ENGINEERING FOR SBH HOTEL, BANDUNG, INDONESIA

Abstract

The fact that no company is immune to distress is indicates that business perform in a similar fashion to products. A company’s failures or a passive reaction towards handling the decline would cause the company to end up in crisis. SBH Hotel has seen a continuous decline in occupancy rates from 2016 to 2019 from 70% to 51% and 27% after the COVID-19 pandemic hit. The hotel’s sluggish reaction towards increasing competition and small improvements in management since its establishment in 1998, were not good enough to help them rebound and led them into their present crisis. Turnaround management that has been known to be the best strategy to save a company in crisis, is the proposed solution that this research paper recommends. The financial data collected, interviews and this researcher’s observations in the gathering of the data and the use of International Turnaround Management Standard framework by Lymbersky will be applied in a bid to resolve the hotel’s crisis. The International Turnaround Management Standard framework by Lymbersky was chosen as a solution due to its thorough coverage which makes it the suitable framework for the turnaround process. The framework covers areas which include, financial strategies, operational and others that the hotel needs to consider. Business process re-engineering will also help this researcher to determine the change in management processes that are required when developing the hotel’s turnaround management action plan. This research paper will be a development from previous research regard its marketing strategy. Turnaround management will be done through Business Process Reengineering as a rethinking and redesign process. SBH Hotel expected to perform with better management process and provide customer with higher quality of services and products. SBH Hotel ability in earning outstanding guests’ experience brought hotel more guest loyalty and help the hotel remain profitable.