1. How would you characterise the U.S. hotel industry in early 2005 1. Think about size, growth, locational aspects and segmentation 2. Market Structure 3. Performance metrics used 4. Trends

2. What is the current competitive positioning for Astor lodges & Suites, Inc. 1. Think about the basis of competition: competitive positioning may be based on (a) attributes or benefit, (b) use or application, (c) product or brand user, (d) product or service class, (e) competitors, and (f) price and quality. 2. Write its positioning statement

3. How would you characterize the operational and financial performance of Astor Lodge & Suites, Inc.? 1. Analyse Exhibit 5 and its implications 2. Analyse and compare Exhibits 3 and 5 and identify implications (trends in revenues, occupancy, average daily rates and costs) 3. Analyse Exhibit 4 and its implications looking at EIBTDA 4. Think about what determines EBITDA

4. Given Mr. James' charge to the senior vice presidents, how would you portray and assess sales and marketing initiatives, expenditures, and outcomes for fiscal 2004 and fiscal 2005? 1. Analyse Exhibit 2 (2004) AND Exhibit 3 (2005) re: the objectives/motivation/rationale for each year, initiatives, expenditures, sales budgets (Exhibit 7) , and outcomes(e.g. occupancy rates, first time guests (Exhibit 6), average length of stay, pleasure/vacation trips, advertising awareness for the fiscal 2004 and 2005 2. Think about how to link sales and marketing initiatives and expenditures to corporate financial performance metrics. 3. Several approaches are possible: 1. Approach 1. One approach for determining the effect of marketing and sales on EBITDA for fiscal 2004 and 2005 is to perform an incremental contribution analysis. It requires a student to: (a) calculate room-nights sold, (b) multiply this