DETAILED ANALYSIS OF LE MERIDIEN

Prepared For:
Operation And Supply Chain Mangement
Prof. Sushil Pasricha

Div – 4 (Group – 5)
Yash Laheja

Tanushi Bharadwaj

Anupam Gupta

M R Santosh

Kamaldeep Kaur

Renuka Patel
 Acknowledgement

A report is a long-term extra educational work that takes personal initiative that is
planned, created, and considered by an individual or a group of people. We are
grateful to Prof. Sushil Pasricha the faculty for “Managing Operations and Supply
Chain”,' for including such an activity in the course because it has provided us with
an excellent opportunity to develop and appreciate our analytical and report writing
skills, preparing us for our future corporate careers. We are also grateful to our
university's coordinators and personnel for supporting us in getting the books and
other reading materials required to produce this report. We'd want to convey our
appreciation to our family and friends for their encouragement and support, since
the report would not have been completed without them.
 ABOUT THE COMPANY

Le Méridien is an upscale, design-focused international hotel brand with a European

perspective. It was originally founded by Air France in 1972 and was later based in the UK.
Marriot International now owns the chain. As of June 2021, it had a portfolio of 109 open hotels
with 29,439 rooms and a pipeline of 37 hotels with 9,585 upcoming rooms.
Air France established Meridien Hotels in 1972. The chain's hotels offered accommodation for
Air France flight crews in major hub cities, and the airline promoted the chain and handled
reservations for it. The first Meridien Hotels property was a 1,000-room hotel in the heart of
Paris, the Hotel Meridien Paris, today known as Le Méridien Etoile. The chain grew to 10 hotels
in Europe and Africa within two years and had 21 hotels spanning the globe within six years.

In 1994, as part of a cost-cutting measure, Air France sold its controlling interest in Meridien
Hotels Inc., a 57.3% stake, to the UK-based Forte Group for $207 million. Meridien Hotels
numbered 58 properties at the time. The sale followed an 18-month battle for control of the
company between Forte, German-based French hospitality company. The French government
was reported to have favored Accor's bid, wishing to keep the company French-owned, while
the European Commision was reported to have favored Forte over Accor and to have pressured
Air France to sell to Forte, in exchange for a vital 20 billion Franc bailout for the airline. Forte
simultaneously announced their intention to buy the remaining minority stakes in the hotel chain.

UK conglomerate Granada won a hostile takeover battle for Forte in January 1996. Granada
convinced majority shareholders to sell to them, rather than, son of the company's founder, who
feared Granada would strip the company of its assets. Granada assumed control of Forte for $5.9
billion. Soon after, in May 1996, Granada announced its intention to sell the 18 luxury hotels of
the Forte Hotels chain, but to retain the 85 hotels in the Meridien Hotels chain. The 2000 merger
of Forte and caterer Compass Group and demerger within a year, passed the Forte Hotels
division's three remaining brands (Le Méridien, Heritage Hotels and Posthouse Forte) to
Compass.

In May 2001, Noruma Group acquired Le Méridien Hotels & Resorts from Compass for £1.9
billion, and Le Méridien was merged with Principal Hotel which had been acquired in February
2001. In December 2003, Lehman Brothers Holdings acquired the senior debt of Le Méridien.

US-based starwood acquired Le Méridien on November 24, 2005. A Lehman Brothers and joint
venture obtained the leased and owned real estate assets in a separate deal. Over the following
five years, 45 of these 130 properties were sold, and 20 new ones were added to the chain.

In September 2016, Marriott gained the Le Méridien brand as part of its acquisition of Strawood.
The brand has since been positioned as a premium lifestyle product distinguished by a mid-
century modern design aesthetic and destination-centric events and programming.
 COMPETITORS

HOTEL TAJ: Rich heritage and brand

legacy: Over 100 years of
experience, synonymous with Indian
hospitality. Strong brand
portfolio: Diverse range of hotels and
palaces catering to various segments.
Focus on personalized service and unique
experiences: "Tajness" philosophy emphasizes cultural immersion and guest
satisfaction. Extensive presence in key destinations: Strong network across India
and international expansion.

THE OBEROI: Differentiates itself

through its renowned hospitality,
attention to detail, and cultural
authenticity, its commitment to
sustainability and community
engagement. The Oberoi Hotel is
synonymous with exceptional service.
Staff members are highly trained
professionals dedicated to providing
personalized attention to every guest, ensuring their needs are met promptly and
efficiently.

ITC HOTEL: ITC Hotels are known

for their luxurious accommodation,
offering a blend of modern amenities and
traditional hospitality. Guests can expect
comfortable rooms, elegant interiors, and
top-notch service. Exceptional Dining
ITC Hotels are renowned for their culinary offerings, featuring a diverse range of
restaurants and cuisines.

THE LALIT: The Lalit is known for

its luxurious accommodations, offering
well-appointed rooms and suites
designed to provide comfort and
elegance to guests during their stay.
Many Lalit hotels are strategically
located in prime areas within cities or
near popular tourist destinations,
making it convenient for guests to
explore and access nearby attractions.
The Lalit hotels typically offer a range of world-class facilities such as restaurants,
bars, spas, fitness centers, swimming pools, and business centers, catering to both
leisure and business travelers.
KEY PILLAR OF OPERATION AND SUPPLY
CHAIN MANAGEMENT

Procurement: This involves sourcing and purchasing goods and services

needed for the hotel's operations. This includes everything from linens and
toiletries to food and beverages for the restaurants.
Supplier Relationship: Maintaining good relationships with suppliers is
crucial for ensuring timely deliveries, negotiating favorable terms, and
resolving any issues that may arise.

Logistics and Distribution: Once goods are procured, hotels need to

efficiently distribute them to the various departments within the property,
whether it's housekeeping, food and beverage outlets, or other areas.
Quality Control: Hotels must ensure that the products they receive meet
quality standards and comply with regulations, whether it's ensuring the
freshness of food items or the durability of linens.

Sustainability: Many hotels, including those under the Le Méridien brand,

are increasingly focusing on sustainability in their supply chain management
practices. This may involve sourcing from local suppliers to reduce carbon
footprint, reducing waste, or using eco-friendly products.
Technology: Utilizing technology such as inventory management software
can streamline processes, improve accuracy, and provide better insights into
supply chain performance.
Overall, Le Meridien’s operations and supply chain strategy prioritizes efficiency,
sustainability, and adaptability. By leveraging technology, optimizing distribution
channels, and building strong partnerships, the company maintains a competitive
edge among others hotel industries.

INVENTORY MANAGEMENT

\
 Operation Channels.

Check in-checkout process:

Check In

Guest upon arrival goes to the reception, The guest is asked for his booking details and
identification proofs. The Front Desk personnel makes the assignment of the room and shares the
details of the room with the guest.

Check-out process
Check out, the guest just must settle his bills, hand over the key, and depart.

Inventory /Warehouse Management-

Centralized Procurement: Le Meridian leverages its global network and scale to

negotiate bulk discounts with suppliers, ensuring cost-effectiveness and consistent quality
across its hotels.

Demand Forecasting: Utilizing advanced data analytics and historical trends, Le

Meridian predicts future guest needs for various items, like toiletries, linens, and food &
beverage supplies.

Technology Integration: Le Meridian implements sophisticated inventory management

software that tracks stock levels, purchase orders, and usage patterns in real-time.

Sustainability Focus: Le Meridian increasingly incorporates sustainable practices into its

inventory management, such as sourcing eco-friendly products, reducing waste, and
implementing energy-efficient equipment.

Common problems faced while handling guests and inventory management:

At times of high occupancy, there is always a lot of rush. In those time periods it is crucial to
make sure right requests are reaching the right rooms. Therefore, these times require more
detailed supervision and efficient handling and planning.
Maintenance and engineering

Maintenance:

Preventive maintenance: This proactive approach involves regular inspections and

upkeep of equipment, fixtures, and facilities to prevent problems before they arise.
Corrective maintenance: When issues do occur, the maintenance team promptly addresses
them to restore functionality and minimize disruption.
Housekeeping: Maintaining cleanliness and hygiene is paramount in any hotel, and the
housekeeping team plays a vital role in ensuring guest satisfaction.

Engineering

Facility management: The engineering team oversees the upkeep and operation of the
hotel's infrastructure, including HVAC systems, plumbing, electrical systems, and fire
safety equipment.
Larger renovation or improvement projects require careful planning and execution. The
engineering team takes on the responsibility of managing these projects, ensuring they
are completed within budget and on time.

Logistics and transportation

Le Meridian Gurgaon doesn't directly offer logistics and transportation services themselves.
However, they facilitate these needs for guests and event organizers through collaborations with
external service providers.

Airport Transfers: Several reputable taxi and car rental companies operate at the hotel,
offering pre-booked or on-demand airport transfers. You can inquire at the concierge desk
or book services through online platforms.
Local Transportation: You can find options for taxis, auto rickshaws, and ride-hailing
services like Uber and Ola near the hotel. The concierge can also arrange for guided tours
or private transportation within the city.
 Luggage Services: The hotel offers luggage storage and porter services to assist with
check-in and check-out. They can also arrange for luggage delivery to your room or
onward travel destinations.

Technological operations.

Property Management Systems are used for managing room inventory and mapping guest and
other daily operations. The PMS software popularly used is Opera.

Once a booking is confirmed the count gets updated and it is matched with the remaining
inventory count. The adaptation of free Wi-Fi service all over the hotel premises is purely
evident.

Even in the process of any cancellation. In most cases the hotel refunds the amount. The
cancellation charge is levied by the OTA (Over the air update) platform.

Overview
Emphasis: Le Meridian prioritizes sourcing fresh, seasonal ingredients from local farms and
producers. This reduces their carbon footprint and supports the local economy.

Long-term Contracts: They secure key supplies like beverages and cleaning products through
long-term contracts with reputable vendors, ensuring consistent quality and competitive pricing
Local.

Inventory Management Systems:

Just-in-Time (JIT) Inventory:

Le Meridian minimizes on-hand inventory to reduce waste and storage costs. JIT systems rely
on precise forecasting and efficient supplier partnerships.

Automated Inventory Management:

 Technology plays a crucial role in tracking inventory levels, setting reorder points, and preventing
stockouts.

Food Waste Reduction:

They implement various strategies like utilizing leftovers in creative dishes, composting food scraps, and
donating surplus food to local charities.

Warehousing and Distribution Practices:

Centralized Warehousing:

Le Meridian often operates regional distribution centers that cater to multiple hotels. This optimizes
logistics and cost-efficiency.

Temperature-

Controlled Storage: Dedicated facilities ensure proper storage of perishables, maintaining freshness and
quality.

Delivery Optimization:

Route planning software and efficient transportation partnerships ensure timely deliveries while
minimizing fuel consumption.

Waste Management and Sustainability Initiatives:

Composting and Recycling Programs:

Le Meridian implements comprehensive waste management systems to divert waste from landfills,
including composting food scraps and recycling various materials.

Water Conservation:

Water-saving measures like low-flow faucets, efficient irrigation systems, and guest towel reuse programs
help reduce water consumption.

Energy Efficiency:

They invest in energy-efficient appliances, LED lighting, and building management systems to minimize
energy use and carbon footprint.

Green Cleaning Products:

Switching to eco-friendly cleaning products reduces harmful chemicals and protects the environment.Le
Meridien Gurgaon has incorporated several commendable steps towards sustainability, making it a
frontrunner in the hospitality industry. Here's a glimpse into their efforts:

Reducing Plastic Waste:

In-house water bottling plant: Partnering with Sajal’s Water Cube, Le Meridien Gurgaon established an
in-house water bottling plant. This eliminated the use of plastic bottles, replacing them with eco-friendly,
reusable glass bottles. The water is distilled and packaged hygienically, minimizing carbon footprint.

Water Conservation:

100% wastewater recycling: The hotel has a sophisticated wastewater treatment plant that recycles 100%
of the wastewater used. This treated water is then utilized for landscaping and irrigation, reducing
dependence on freshwater resources.

Water-saving fixtures: They've installed low-flow faucets, showerheads, and toilets throughout the hotel
to minimize water usage.

Energy Efficiency:

LED lighting: Le Meridien Gurgaon has transitioned to 100% LED lighting, significantly reducing energy
consumption.

Energy-efficient appliances: They've invested in energy-efficient appliances and equipment across the
hotel, further lowering their carbon footprint.

Waste Management:

Organic waste composting: The hotel has a waste composting machine that efficiently converts organic
waste into compost, reducing landfill waste and promoting soil health.

Image of Le Meridien Gurgaon waste composting machineOpens in a new window

Responsible Sourcing

Sustainable products: They choose eco-friendly and sustainable products whenever possible, minimizing
their environmental impact.

Employee Engagement and Guest Education:

Employee training: The hotel conducts regular sustainability training programs for its employees to raise
awareness and encourage eco-friendly practices.
Guest education: Le Meridien Gurgaon informs its guests about their sustainability initiatives and
encourages them to participate in eco-friendly practices during their stay.

These are just some of the steps Le Meridien Gurgaon has taken towards sustainability. Their
commitment to environmental responsibility is truly commendable and sets a positive example for the
hospitality industry.

Le Meridien Housekeeping & Laundry Cycle: A Detailed Look

Le Meridien hotels prioritize immaculate guest rooms and efficient laundry services, ensuring a
comfortable and hygienic stay for their visitors. Here's a breakdown of their typical
housekeeping and laundry cycle:

Pre-Arrival (Morning Shift):

Room Inventory & Assignment: Housekeeping supervisors check room availability and assign tasks to
team members based on cleaning priorities (check-out, stayover, VIP arrivals, etc.).

Linen & Supply Replenishment: Linen attendants ensure adequate supplies of towels, sheets, pillowcases,
and toiletries in housekeeping carts and guest room cupboards.

Deep Cleaning Focus Areas: Public areas like hallways, lobbies, and restrooms receive deep cleaning
attention, including vacuuming, mopping, and sanitization.

Guest Room Cleaning (Morning & Afternoon Shifts):

Knock & Announcement: Housekeeping staff politely knock and announce themselves before

entering guest rooms.

Waste Removal & Initial Tidy: Used towels, linens, and trash are removed. Beds are stripped,

furniture is straightened, and surfaces are cleared.

Thorough Cleaning: Floors are vacuumed and mopped, bathrooms are disinfected, and surfaces

are wiped down with appropriate cleaning solutions.

Linen & Amenity Replacement: Fresh towels, sheets, and pillowcases are replaced. Toiletries and

amenities are restocked based on usage and hotel standards.

 Final Touches & Inspection: Beds are made, decorative touches are added, and the room is

inspected for cleanliness and adherence to hotel standards.

Laundry Operations:

Laundry Sorting & Collection: Used linens and towels are collected from guest rooms and sorted

based on fabric type, color, and cleaning requirements.

Washing & Drying: Laundry machines are loaded and operated following specific protocols for

different fabrics and stains. Dryers ensure linens are properly dried and ready for use.

Ironing & Finishing: Certain items like tablecloths and napkins may require ironing or pressing.

Laundry attendants ensure all linens are neatly folded and ready for distribution.

Quality Control & Distribution: Clean linens are inspected for stains or damage before being
folded, tagged, and distributed to housekeeping carts or guest room cupboards.

End of Day:
Equipment Cleaning & Maintenance: Housekeeping carts, cleaning equipment, and laundry
machines are cleaned and sanitized for the next day's operations.

Inventory Check & Reporting: Housekeeping supervisors conduct inventory checks for cleaning
supplies and linens, ensuring adequate stock for the next day. Reports are generated on
completed tasks and any maintenance needs.

Le Meridien Restaurant Inventory Management

 Managing Inventory using FIFO (First-In-First-Out):

This means using older ingredients first before opening new ones. Imagine a queue - ingredients enter at

the back and get used from the front.

Benefits: Reduces food waste, ensures quality (older items don't expire), helps with cost tracking.

2. Restricted Access to Usage Data:

Limiting who can access and modify inventory data prevents errors and potential theft.

Benefits: Improves data accuracy, reduces shrinkage (loss due to waste or theft), maintains control over
ordering.

POS with Inventory and Stock Management:

Integrating your Point-of-Sale (POS) system with inventory management software streamlines operations.

Benefits: Automatic updates on ingredient usage, real-time stock levels, low-stock alerts, simplifies
ordering.

Regular Checks on Inventory Usage:

Conducting physical inventory counts at regular intervals ensures accuracy and identifies discrepancies.

Benefits: Detects shrinkage early, optimizes ordering practices, prevents stockouts (running out of
ingredients).
 5. Recipe Management:

Standardizing recipes with precise ingredient quantities helps control portion sizes and costs.

Benefits: Improves consistency of dishes, facilitates accurate inventory planning, reduces waste.

By implementing these key points, you can achieve efficient restaurant inventory management, minimize
waste, optimize costs, and improve your overall profitability.

Executive summary

The operational movement of Le Meridian Gurgaon reflects a commitment to excellence in

service delivery and guest satisfaction. With a strategic location in the business hub of Gurgaon,
the hotel seamlessly blends luxury and functionality to cater to the diverse needs of both business
and leisure travelers.

Le Meridian Gurgaon operates with a focus on delivering unparalleled guest experiences. The
hotel's operational framework is designed to ensure seamless service, from reservation to check-
out. The commitment to excellence is reflected in the well-trained staff, personalized guest
services, and a comprehensive approach to meeting diverse guest needs.

It also showcases the hotel's supply chain management is structured to optimize efficiency and
sustainability. Close collaborations with trusted suppliers ensure a seamless flow of goods and
services to meet the hotel's operational demands.

Emphasis is placed on sourcing high-quality, locally sourced products to support the community
and reduce the environmental impact associated with transportation.