A Strategic Management Paper of The Manila Hotel

In Partial Fulfillment of the Course Requirement in Strategic Management

Submitted by:

Benedicta, Lianne Erika

Boholano, Joelle Dana

Buduan, Maxine Reezan

Monticod, Jhasper

Pasion, Yasmin Erica

Taa, Vincent Dhañel

H431

Submitted to:

Mr. Marlon M. Fortunato

2023
 Background of the Company

Brief History

Nestled in the heart of the Philippines' capital city, Manila, stands a timeless

masterpiece of architecture and hospitality – The Manila Hotel. This iconic establishment

boasts a rich history that parallels the transformation of the nation itself. In this brief essay,

we'll take a journey through the storied past of The Manila Hotel.

The roots of The Manila Hotel can be traced back to the early 20th century when the

American colonial government envisioned a luxury hotel that would rival the best in the

world. The construction, undertaken by renowned architect William E. Parsons, commenced

in 1909 and culminated in its grand opening on July 4, 1912. The choice of this date was

symbolic, as it coincided with the celebration of American Independence Day, signifying the

hotel's status as a beacon of American influence in the Philippines.

The hotel flourished as an emblem of elegance and opulence during its early years,

attracting celebrities, dignitaries, and luminaries from around the globe. The Manila Hotel

was an oasis of luxury in a city that was fast evolving into a bustling metropolis. However, its

grandeur would soon be tested during the tumultuous years of World War II. During the war,

The Manila Hotel was occupied by Japanese forces and transformed into their headquarters.

It endured the ravages of war but survived as a testament to resilience. In the post-war era,

the hotel underwent extensive renovations and expansion, restoring its former glory. It

became a symbol of Manila's resurgence and hosted numerous historic events, including the

signing of the Japanese Instrument of Surrender in 1945.

 Throughout its existence, The Manila Hotel has welcomed an impressive array of

guests, including U.S. Presidents, foreign leaders, and renowned personalities. Its role in

history extends beyond providing luxurious accommodations; it has served as a backdrop for

diplomacy, culture, and celebration. The Manila Hotel has also played a vital role in

commemorating Philippine Independence Day. The hotel's grandeur and elegance make it a

fitting venue for this significant national celebration, further cementing its place in the

nation's historical tapestry.

Over the decades, The Manila Hotel has undergone several renovations and

modernizations to keep pace with changing times while preserving its classic colonial

architecture and heritage. Today, it stands as a symbol of elegance and Filipino hospitality,

offering guests an unrivaled experience that seamlessly blends the allure of the past with the

comforts of the present.

Products and Services

A. Rooms and Suites:

1. Superior Deluxe Room:

The Manila Hotel's Superior Deluxe Room is a cozy and luxurious lodging choice.

Modern conveniences and a roomy, attractively furnished environment ensure a comfortable

stay. A comfy king-sized bed or twin beds, a seating space, and a well-appointed bathroom
with upscale toiletries are all to be expected for visitors. Depending on where in the hotel it is

located, the room has a lovely view of either Manila Bay or the city. For tourists seeking a

comfortable and fashionable hideaway in the center of Manila, it is the perfect option.

2. Grand Deluxe Room

The Manila Hotel's Grand Deluxe Room elevates luxury to a new level. These

accommodations are much more lavish and larger than the Superior Deluxe Rooms. A king-

sized bed or twin beds, as well as a nicely furnished bathroom with deluxe amenities, are

available to guests. Elegant and tasteful, the room's design pays close attention to detail and

honors the establishment's history. The breathtaking views of Manila Bay or the city are

available to guests from the huge windows, which greatly improves their stay.

3. Presidential Suite

Luxury and sophistication are personified in the Presidential Suite of the Manila

Hotel. This suite is intended for visitors looking for the highest level of comfort and

exclusivity. There is a large living room, a separate dining area, a king-sized bedroom, and a
lavish bathroom with a Jacuzzi and a separate shower. The apartment is decorated with

excellent furniture and artwork, which gives the space a classic elegance. A personalized

butler service and breathtaking panoramic views of Manila Bay are also available to guests

staying in the Presidential Suite.

4. MacArthur Suite

The Manila Hotel's MacArthur Suite honors the historical significance of General

Douglas MacArthur, who stayed there during World War II, and combines old-world charm

with contemporary comfort. Along with a king-sized bed in the bedroom and a roomy

bathroom, it has a cozy living area. With art and antiques that depict MacArthur's time at the

hotel, the suite is decorated in a period-appropriate style. For those seeking a distinctive and

interesting experience, it's a great option.

5. Heritage Suites

The Manila Hotel's Heritage rooms are a group of beautifully constructed rooms that

pay homage to the establishment's lengthy heritage. Every apartment has a different theme

and décor that uniquely reflect diverse facets of Filipino tradition and culture. Large living

spaces, cozy bedrooms, and luxurious baths are all features of these apartments. For visitors

who want to explore and appreciate the traditional legacy of the Philippines while enjoying

contemporary comforts and comfort, these suites' meticulous attention to detail in the design

and furnishings delivers an engaging and immersive experience.

6. Intramuros Suite

A beautiful and large lodging that combines modern conveniences with traditional

elegance is the Manila Hotel's Intramuros Suite. This apartment, which bears the name of the

famed walled city of Intramuros, boasts beautiful furnishings that honor the long history of

the inn. Visitors have plenty of room to unwind with a separate living space and bedroom.
Beautiful views of Manila Bay or the city skyline may be enjoyed from the suite, and the

marble bathroom adds a touch of luxury. The Intramuros Suite is the ideal option for

sophisticated tourists looking for a refined and comfortable stay in Manila because guests

have exclusive access to the hotel's top-notch amenities.

7. Honeymoon Suite

For couples commemorating a special event, the Manila Hotel's Honeymoon Suite is a

romantic retreat. Soft lighting and comfortable furnishings give this apartment a cozy, private

feeling. It features a roomy bedroom with a king-size bed, a comfortable living room, and a

private balcony with views of the city or the bay. A welcome bottle of champagne is

provided, and the en-suite bathroom has a Jacuzzi tub for a soothing soak. For newlyweds or

couples wishing to renew their relationship in an opulent and sensual setting, it's the ideal

option.

8. Sunrise & Sunset Suite

 Visitors to the Sunrise & Sunset Suite can enjoy the rare opportunity to see Manila's

magnificent skyline both in the morning and at dusk. This roomy suite has a cozy sitting

space, a luxurious bedroom, and big windows that surround expansive city views. It is

stylishly arranged with a contemporary touch. Visitors can unwind in elegance and comfort

while taking in the shifting hues of the sky from their suite. For visitors who value both

Manila's urban vibrancy and the tranquil beauty of its sunrises and sunsets, the Sunrise &

Sunset Suite ensures a wonderful stay with modern conveniences and attentive details.

9. Veranda Suite

The Veranda Suite of the Manila Hotel is a calm retreat in the busy city. There is a

separate terrace in this suite where visitors may relax and breathe in the fresh air while taking

in views of either Manila Bay or the bustling downtown. With a separate living room and

bedroom, the suite's interior is well furnished, resulting in a roomy and cozy atmosphere. The

suite's design features combine traditional charm with a dash of contemporary sophistication.

The marble bathroom has a big soaking tub. Whether you're traveling for business or

pleasure, the Veranda Suite offers a peaceful haven for unwinding and reflecting.
10. Luneta Suite

The Luneta Suite at Manila Hotel, which is named after the well-known Rizal Park

(Luneta Park), offers a distinctive fusion of historical relevance with cutting-edge luxury.

This suite offers a large, well-furnished living area with a private bedroom, resulting in a

cozy and welcoming ambiance. Large windows with lots of natural light provide views of

Rizal Park and its famous sites for guests to take in. For guests who wish to be in the center

of Manila's historical and cultural attractions while enjoying the conveniences of a well-

appointed room, the suite's modern amenities ensure a comfortable stay.

B. Dining

1. Café Ilang-Ilang

A gastronomic gem famed for its spectacular buffet offerings, Café Ilang-Ilang is

located in the Manila Hotel. This restaurant is a feast for the senses and is tucked away in a

pretty garden setting. A broad variety of cuisines from throughout the world are served at the
restaurant, which specializes on foreign cuisine. In addition to a wide variety of desserts,

guests can experience luscious steaks, fresh sushi, and delectable seafood. It is the perfect

location for both big occasions and casual dining because of the classy yet welcoming

atmosphere.

2. Champagne Room

The Champagne Room is a well-known fine-dining establishment inside the Manila

Hotel that personifies elegance and sophistication. It is renowned for its lavish interior design

and delectable French fare. The restaurant's menu features traditional French cuisine that are

expertly and precisely prepared. With a wide variety of champagne and premium wines,

diners can savor meals like foie gras, escargot, and chateaubriand. The Champagne Room is a

preferred option for romantic dinners and festivities because of the cozy setting and excellent

service.

3. Red Jade
 A compelling fusion of traditional and modern Cantonese food is served at the

Chinese restaurant Red Jade in the Manila Hotel. Rich red and gold accents are used to

decorate the restaurant's interior, which gives the space a sense of grandeur and elegance. On

the menu at Red Jade are several types of dim sum, delectable Peking duck, and a selection of

seafood and noodle dishes. Red Jade is a wonderful option for people looking for an elite

Chinese dining experience because to its authentic flavors and chic environment.

4. Roma Salon

Within the Manila Hotel lies the Italian restaurant Roma Salon, which provides a taste

of Italy right in the middle of Manila. The restaurant has a cozy, welcoming atmosphere that

is reminiscent of a little Italian trattoria. The antipasti menu at Roma Salon features a variety

of antipasti as well as real Italian pasta and wood-fired pizza. Visitors can savor a delicious

lunch while being surrounded by rustic furnishings and a welcoming ambiance. Roma Salon

guarantees an unforgettable Italian culinary experience, whether it's a casual supper or a get-

together with friends.

5. Delicatessen

The quaint and welcoming Delicatessen at Manila Hotel is a restaurant that serves

gourmet delights and quick snacks. This adorable café serves a selection of freshly made

bread, pastries, salads, and sandwiches. It's the ideal location for a small meal, a casual

breakfast, or an afternoon cup of coffee. For those looking for a taste of European specialties,

delicatessen is a great option because it also offers a variety of imported cheeses and cold

cuts. Delicatessen is a well-liked option for both residents and hotel guests due to its informal

and laid-back ambiance.

6. The Lobby Lounge

The Lobby Lounge at the Manila Hotel is a classy dining establishment that oozes

luxury and sophistication. This location, which located in the hotel's great lobby, offers a

tranquil environment, plush seating, and a beautiful perspective of the hotel's historic
surrounds. A wide variety of food options, such as afternoon tea, cocktails, and light fare, are

available to guests. For a romantic evening or a relaxing afternoon tea with friends, the

Lounge, which is well renowned for its live music performances, is the ideal setting. The

Lobby Lounge provides an exceptional eating experience whether you're seeking for a quiet

moment or a communal gathering.

7. Tap Room

The Tap Room of the Manila Hotel is a warm and welcoming setting that serves both

recreational and knowledgeable beer drinkers. After a long day of visiting Manila, it's the

ideal place to unwind with its cozy wooden decor and a broad range of local and foreign

beers. The menu offers hearty pub fare like sandwiches, burgers, and finger foods that go

well with the beer on tap. The Tap Room offers a friendly atmosphere to enjoy excellent

company and outstanding brews, whether you're a beer enthusiast or just seeking for a laid-

back, relaxed ambiance.

8. Pool Bar

In a setting reminiscent of a tropical oasis, the Manila Hotel's Pool Bar offers a

pleasant dining experience. It is the perfect place to enjoy a selection of light nibbles and cool

cocktails while overlooking a spotless pool surrounded by lush vegetation. Indulge in their

preferred beverages while lounging by the pool and soaking up the sun. Whether you're on

vacation or simply want to spend a few hours away from the bustle of the city, The Pool Bar

is a great location to relax.

9. Cowrie Grill

Within the Manila Hotel lies the upmarket restaurant Cowrie Grill, which provides

steak enthusiasts with a top-notch eating experience. The eatery, which is renowned for its

upscale atmosphere, offers exceptional cuts of beef that can be expertly prepared to your

preferences. The vast wine list and friendly service raise the level of refinement in the dining
experience. Cowrie Grill is the place to indulge in the best culinary treats, whether you're

celebrating a special event or just want a top-notch steak.

10. M Boutique by the Manila Hotel

In the Manila Hotel, there is a delightful café and retail space called M Boutique. It

provides an original fusion of dining and shopping experiences. The café offers a wide

selection of specialty coffees, teas, pastries, and light meals, making it a fantastic place to

grab a bite to eat or unwind with a leisurely afternoon cup of coffee. M Boutique offers a

handpicked range of goods and souvenirs that showcase local workmanship and memorabilia

from the Manila Hotel in addition to its culinary options. For travelers and hotel guests, this

charming location offers a convenient and tranquil setting where they may sample the local

cuisine and culture.

11. Marcelino St. Café

In the Manila Hotel, there is a delightful café and retail space called M Boutique. It

provides an original fusion of dining and shopping experiences. The café offers a wide
selection of specialty coffees, teas, pastries, and light meals, making it a fantastic place to

grab a bite to eat or unwind with a leisurely afternoon cup of coffee. M Boutique offers a

handpicked range of goods and souvenirs that showcase local workmanship and memorabilia

from the Manila Hotel in addition to its culinary options. For travelers and hotel guests, this

charming location offers a convenient and tranquil setting where they may sample the local

cuisine and culture.

C. Meetings and Events

1. Event Spaces: At the Manila Hotel, we offer a diverse array of event spaces designed to

cater to your needs. Whether you're planning a corporate conference, a fairy-tale wedding, or

any special occasion, our venue options include well-equipped meeting rooms, elegant

ballrooms, and enchanting outdoor settings. We provide the perfect backdrop for a

memorable event.

2. Event Planning Services: Elevate your event with the expertise of our professional event

planning team at the Manila Hotel. From meticulous coordination to exquisite catering

services, we are dedicated to ensuring that every detail of your event is flawlessly executed.

Trust us to bring your vision to life and create unforgettable moments for you and your

guests.
D. Recreation and Wellness at Manila Hotel:

1. Swimming Pool: Dive into pure serenity in our splendid swimming pools. Whether you

prefer the refreshing outdoor pool or the tranquil indoor oasis, both are complemented by

inviting lounging areas for you to bask in the sun or unwind with a book.

2. Fitness Center: Stay committed to your fitness regimen with ease at our well-equipped

fitness center. Featuring modern exercise facilities and expertly designed spaces, you'll find

everything you need to maintain your active lifestyle during your stay.

3. Spa and Wellness: Pamper yourself with indulgent spa treatments, rejuvenating massages,

and holistic wellness programs. Our experienced therapists are dedicated to your relaxation

and revitalization, ensuring you leave feeling refreshed and renewed.

E. Concierge Services at Manila Hotel:

1. Concierge Desk: At the Manila Hotel, our dedicated concierge desk is your gateway to a

world of convenience and personalized service. Whether you need assistance with

reservations at our fine dining establishments, transportation arrangements, or seeking

local recommendations for memorable experiences, our knowledgeable and attentive

concierge team is here to cater to your every need. We take pride in enhancing your stay

by offering seamless assistance and local insights to make your visit truly exceptional.
2. Tours and Activities: Explore the vibrant culture and attractions of Manila and its

surroundings with the assistance of our tours and activities service. Whether you're

interested in historical city tours, scenic excursions, or cultural experiences, our team is

ready to curate the perfect itinerary for you. Discover the beauty and heritage of the

Philippines with our local expertise, ensuring that your stay at Manila Hotel is filled with

unforgettable moments and adventures.

F. Additional Services at Manila Hotel:

1. Valet Parking: Our valet parking service offers the utmost convenience for guests

arriving at the Manila Hotel. Our skilled attendants ensure your vehicle is safely parked,

allowing you to focus on enjoying your stay without worrying about parking logistics.
2. 24-Hour Front Desk: Our round-the-clock front desk assistance ensures that you

receive prompt and reliable support anytime you need it. Whether you have questions,

require assistance, or need recommendations for exploring Manila, our dedicated team is

here to assist you 24/7.

Board of Directors

Chairman Of the Board Basilio C. Yap

Vice Chairman Dr. Emilio C. Yap III

President and Director Atty. Jose D. Lina, Jr.

Director and Executive Vice President Dr. Enrique Y. Yap, Jr.

Director and Corporate Secretary Atty. Sergio A.F. Apostol

Director Amando Tetangco, Jr.

Director Chief Justice Diosdado M. Peralta (Ret.)

Director Salvador C. Medialdea

Director Mr. Jose Arnulfo Veloso

Director Benjamin C. Yap

Director Anthony Joseph Y. Gaw

The Manila Hotel Organization Chart: Corporate Officers

President and Director - Atty. Jose D. Lina, Jr

Executive Vice President - Dr. Enrique Y. Yap, Jr.

Director for Human Resource Management - Mr. Tyne A. Dignadice

Assistant Vice President for Finance - Ms. Ester C. San Pedro

Assistant Security Manager - Mr. Teofilo A. Labe Jr.

Executive Chef - Chef Konrad B. Walter

Director for Engineering - Engr. Edgardo B. Alvinez

Food and Beverage Manager - Ms. EJ C. Yap

Assistant Operations Manager/ Food and Beverage - Mr. Edson D. Obediente

Sales Manager - Mr. Adrian M. Salumbines.

Director for Banquet Sales - Mr. Marvin Kim R. Tan

Assistant Housekeeper Rooms/Public Area- Ms. Mercedita J. Baniqued

Front Office Manager- Ms. Susana Victoria T. Cruz

Mr. Norberto R. Icay- Director of Banquet Service

Company Nurse- Ms. Charmi Cadiz

Brand Personality

 Dynamic

- The Manila Hotel is vibrant and full of life. They express energy and enthusiasm

through all our experiences.

 Cosmopolitan

- Manila Hotel is multicultural and celebrates cultures from all over the world. Thet

welcome everyone, local and international.

 Old World Manners

- Manila Hotel’s employees are polite and chivalrous; they believe in extraordinary

hospitality and a sense of worldly charm.

 Romantic

- Manila Hotel is heartfelt, and passionate/ We want to connect to guests through

emotional, and world class experience.

Implications of the Brand

 A Colonial Feel with a Modern Twist

 Traditional; Service Standards with State-of-the-Art Facilities

 Untouchable Heritage

 An Authentic Experience
Vision

“The Manila Hotel aims to give a high quality of hotel services at all times in a harm free

environment with total client’s satisfaction. Recognized by institutions and clientele for the

adherence of our commitment and responsibilities with high values on safety.”

Mission

“Our Mission is to maintain safe work and harm free environment thus ensure regulatory

compliance by recognizing and controlling occupational health and safety hazards.

Continuously develop programs and initiatives by creating interdependent safety culture

among all employees to achieve the inspiring goals and targets.”

Vision Statement Analysis

The vision statement of the Manila Hotel reflects the hotel's strategic aspirations and

commitment to achieving excellence in the hospitality industry.

Parameter Yes/No Statement Ratings

Does it Yes “Recognized by institutions and 1

clearly clientele for the adherence of our
answer the commitment and responsibilities
question with high values on safety.”
what do we
want to
become?
Is it Yes “to give a high quality of hotel 1
inspirational services at all times in a harm
? free environment with total
client’s satisfaction”
Is it concise? Yes “Recognized by institutions and 1
clientle for the adherence of our
commitment and responsibilities
with high values on safety.”
Does it give Yes “Recognized by institutions and 1
clear clientle for the adherence of our
indication as commitment and responsibilities
to when it with high values on safety.”
 can be
attained?

The current vision statement of The Manila Hotel proudly reflects an impeccable

achievement, garnering a flawless 4 out of 4 assessment score. This vision statement, while

succinct and to the point, has undergone thorough scrutiny by the team, and it has not only

met but exceeded the four essential parameters required for crafting an exceptional vision

statement. Consequently, the decision was made to keep this vision statement intact,

considering its resounding success in aligning with the organization's aspirations and

objectives.

Mission Statement Analysis

The mission statement of the Manila Hotel, " Our Mission is to maintain safe work

and harm free environment thus ensure regulatory compliance by recognizing and

controlling occupational health and safety hazards. Continuously develop programs and

initiatives by creating an interdependent safety culture among all employees to achieve

inspiring goals and targets." is a concise and customer-centric expression of the hotel's core

purpose.

Parameters Evaluation Statement Ratings

Customers No “to maintain safe 0

It is not present but is work and harm free

reflected in the vision environment thus

statement. ensure regulatory

compliance by

recognizing and

controlling

occupational health
 and safety hazards”

Products or Services Yes “to maintain safe 1

work and harm free

environment thus

ensure regulatory

compliance by

recognizing and

controlling

occupational health

and safety hazards.”

Markets Yes “Continuously 1

develop programs and

initiatives by creating

an interdependent

safety culture among

all employees to

achieve inspiring

goals and targets.”

Technology Yes “Continuously 1

develop programs and

initiatives by creating

an interdependent

safety culture among

all employees to

achieve inspiring

goals and targets.”

Concern for Survival, Yes “Continuously 1

growth, and develop programs and

profitability initiatives by creating

an interdependent

safety culture among

all employees to

achieve inspiring

goals and targets.”

Philosophy Yes “to maintain safe 1

work and harm free

environment thus

ensure regulatory

compliance by

recognizing and

controlling

occupational health

and safety hazards.”

Self-concept Yes “Continuously 1

develop programs and

initiatives by creating

an interdependent

safety culture among

all employees to

achieve inspiring

goals and targets.

Concern for Public Yes “to maintain safe 1

 Image work and harm free

environment thus

ensure regulatory

compliance by

recognizing and

controlling

occupational health

and safety hazards.”

Concern for the Yes “Continuously 1

Employees develop programs and

initiatives by creating

an interdependent

safety culture among

all employees to

achieve inspiring

goals and targets.”

The current mission statement of The Manila Hotel highlights the firm's outstanding

achievement, receiving an exceptional 8 out of 9 assessment score. While the mission

statement didn’t get a perfect score, the team has determined to uphold it due to its fulfillment

of all eight key parameters necessary for crafting an effective mission statement.
 EXTERNAL ANALYSIS
PESTLE Analysis

Political Factor

P1. Political Stability (Opportunity)

The raised Short-Term Political Risk Index (STPRI) score in the Philippines in 2023,

reflecting improved political stability (from 66.5 to 68.1), offers the Manila Hotel a

promising opportunity. This enhanced stability can have several positive impacts on the hotel

industry:

Tourism Boost, greater political stability fosters a sense of safety among tourists, both

local and international, potentially increasing tourism to the Philippines. The Manila Hotel

can leverage this by attracting more guests, boosting occupancy rates, and revenue.

Political stability often aligns with economic stability, attracting business travelers

and corporate events. The hotel can provide conference and meeting facilities, diversifying its

revenue streams.

Investment Potential a stable environment encourages investments, potentially leading

to increased demand for accommodation and event hosting services, benefiting the Manila

Hotel.

Regulatory Consistency and political stability can result in more consistent policies

and regulations, creating a favorable business environment. The Manila Hotel stands to

benefit from this regulatory predictability.

In essence, improved political stability in the Philippines presents an opportunity for

the Manila Hotel to attract a wider range of guests, including tourists and business travelers,

driving its growth and success in the hospitality industry.

P2. Corruption (Threat)

The article "PH ranks 116th in global corruption index, still among'significant

decliners'" by CNN Philippines examines the Philippines' position on the global Corruption

Perceptions Index. In 2023, the country is placed 116th and is one of the "significant

decliners" in terms of corruption. This rating emphasizes the Philippines' ongoing corruption

problem and its severe implications. It implies potential barriers to foreign investment and

underlines the need for increased openness, accountability, and anti-corruption initiatives in

the country. The paper emphasizes the importance of building institutions, fostering

openness, boosting public awareness, and protecting whistleblowers in combating corruption

and improving the country's global reputation.

Corruption endangers businesses and organizations like the Manila Hotel. It can raise

operational expenses, harm reputation, generate unfair competition, result in legal

ramifications, erode confidence, dissuade tourists and investors, and raise ethical problems.

Even if a company is not directly involved in corruption, corrupt behaviors in its business

environment or within its own ranks can have an impact on it. Many organizations develop

anti-corruption procedures and ethical rules to protect their integrity and reputation in order

to address these dangers.

P3. Increase in Taxes (Threat)

The implementation of a taxation program targeting a wide range of sugary beverages

in 2023, as outlined in House Bill No. 7485, could potentially impact the Manila Hotel.
 Financial Implications. The taxation program aims to generate additional revenue to

support the Universal Health Care (UHC) program. By imposing taxes on sugary beverages,

including sweetened beverages served at the Manila Hotel, it could result in increased costs

for the hotel's operations. These added expenses may include higher procurement costs for

sugary beverages or the need to pass on the tax burden to consumers, potentially impacting

pricing and profitability.

It also affects the Consumer Behavior. The taxation of sugary beverages may lead to

changes in consumer behavior. Guests at the Manila Hotel may reconsider their beverage

choices due to higher prices resulting from the tax. This could impact the demand for sugary

drinks, potentially affecting the hotel's beverage sales and overall revenue.

Additionally, Competitive Landscape. Depending on how other hotels and

establishments in the hospitality industry respond to the taxation program, the Manila Hotel

may face competitive pressures. If some competitors adjust their pricing or offer healthier

beverage alternatives to mitigate the tax impact, the Manila Hotel might need to consider

similar strategies to remain competitive.

Lastly, Health and Wellness Trends. The taxation program reflects a growing concern

about health and wellness, particularly related to sugary beverage consumption. The Manila

Hotel may need to align its offerings with these health-conscious trends by providing

healthier beverage options or promoting wellness-focused packages to attract guests who

prioritize healthier choices.

In conclusion, the implementation of a taxation program on sugary beverages in 2023

could pose financial and operational challenges for the Manila Hotel. To navigate this

potential threat, the hotel may need to adjust its pricing, offerings, and marketing strategies to

adapt to changing consumer preferences and the evolving regulatory landscape.

Economic Factor

Ec1. Increasing Inflation Rate (Threat)

In 2023, the Philippine Hotel Owners Association (PHOA) predicts that inflation will

be a problem for the tourism industry. Benito C. Bengzon, Jr., executive director of the

PHOA, has advised hotels to target an occupancy rate between 80 and 90 percent by 2023.

After entrance restrictions were loosened, the number of visitors to the Philippines increased

to 2.25 million, surpassing the estimated 1.75 million by 2022.

Bangko Sentral ng Pilipinas (BSP) predicts a 6.1% inflation rate for the current year

in the Philippines, representing a significant increase from the pre-pandemic era when

inflation typically ranged from 2% to 4%. This higher inflation rate may impact the

purchasing power of consumers. However, there is an opportunity for unit proprietors in the

hotel industry to receive an additional 6% return if hotel occupancy rates continue to rise.

This suggests that real estate investments, particularly in sectors like hotels, might offer

higher returns on investment in the post-pandemic period, potentially allowing investors to

keep up with or even outpace inflation. It highlights the need for adaptability in investment

strategies to navigate the changing economic landscape.

Inflation can impact the Manila Hotel's purchasing power, operating expenses, and

profitability. Inflation can cause price increases in all industries, including the hotel industry.

Consequently, demand for hotel services, as well as revenue and occupancy levels, may

decline. To mitigate the impact of inflation, the hotel may need to alter its pricing strategy,

limit its budget, and boost its market competitiveness.

Ec2. Depreciation of Philippine Peso (Threat)

 The Bangko Sentral ng Pilipinas or BSP, has projected a depreciation of the

Philippine peso against the US dollar, estimating a decline from 54.5 pesos to the dollar in

2022 to 56.5 pesos to the dollar in 2023. Based on BSP as of 2023, the current exchange rate

for the peso is 56 pesos per dollar. This expected depreciation carries significant implications,

particularly for establishments such as The Manila Hotel.

The weakening of the peso will adversely impact on The Manila Hotel due to its

heavy reliance on imports to meet local demand. As the peso loses value, the cost of

importing goods and services will increase, subsequently elevating operational expenses for

the hotel. This cost escalation may be passed on to consumers in the form of higher prices for

accommodations, dining, and other services, potentially deterring both local and international

guests.

Additionally, the anticipated wider current account deficit in the Philippines, driven

by a surge in imports outpacing export growth, exacerbates the situation. A weakened peso

amplifies the deficit by making imports even costlier, further straining the country's external

balance.

In conclusion, a depreciation of the Philippine peso poses a substantial challenge to

The Manila Hotel's financial stability by inflating costs and potentially reducing its

competitiveness in the hospitality industry. This underscores the importance of closely

monitoring and mitigating the impact of currency fluctuations on the hotel's operations and

pricing strategies.

Ec3. Increasing Interest Rate (Threat)

In 2023, the Philippines Policy Rate remained stable at 6.75% pa from July to August,

with no change compared to July 2023. However, when comparing 2023 to the previous year

(2022), a significant shift becomes apparent. In April 2022, the Policy Rate had reached a
record low of 2.50% pa, marking a substantial increase to 6.75% pa in 2023. This shift

reflects the Bangko Sentral ng Pilipinas' tightening of monetary policy to address economic

conditions and inflation.

An article published on March 23, 2023, titled "Philippines C. Bank Remains in

Inflation-Fighting Mode, Raises Rates by 25 Basis Points," highlights the Central Bank's

decision to raise interest rates by 25 basis points in its effort to combat rising inflation. This

demonstrates the central bank's commitment to managing inflation, a crucial aspect of

economic stability. Interest rate hikes are a common tool used by central banks to control

inflation by making borrowing more expensive, which, in turn, can reduce consumer

spending.

It's important to note that these changes in interest rates can have implications for

various sectors, including the hospitality industry like the Manila Hotel. The hotel may face

challenges due to higher borrowing costs, potentially impacting its financial flexibility.

Moreover, rising interest rates can affect consumer spending on leisure activities, investment

plans, currency exchange rates, economic growth, and financial market volatility. The extent

of these challenges depends on the hotel's financial health and its ability to adapt to evolving

economic conditions. To stay informed about the Philippines' economic situation, it's

essential to monitor ongoing events and central bank announcements.

Social Factor

S1. Cultural Inclusivity (Opportunity)

Cultural inclusivity is a fundamental aspect of fostering a diverse and harmonious

society in the Philippines. This nation, known for its rich tapestry of cultures and traditions,

has made significant strides in embracing and celebrating its diverse heritage. Cultural
inclusivity extends beyond mere tolerance; it encompasses actively promoting an

environment where all cultural backgrounds are respected and valued.

In the Philippines, cultural inclusivity is exemplified through various means, such as

the celebration of different festivals and indigenous practices, the recognition of multiple

languages, and the preservation of historical sites that reflect the nation's multicultural past.

Institutions, both governmental and non-governmental, play a crucial role in promoting

cultural inclusivity through educational programs, heritage conservation efforts, and policies

that protect the rights of indigenous communities.

The Manila Hotel is committed to fostering diversity and inclusivity within its

workforce, exemplifying the importance of diversity in the hotel industry. Their strategic

approach includes recruiting, advancing, and retaining individuals from various backgrounds,

including women and ethnically diverse individuals. They take deliberate steps to align their

leadership team with the broader organization and the local communities they serve.

The Manila Hotel partnered with a diversity consultancy to audit talent management

practices and facilitate inclusive dialogue sessions with their leadership cadre. The hotel

industry, renowned for its warm and friendly service, values diversity and respects all

visitors, promoting an atmosphere of professionalism and inclusivity. This commitment

serves as a positive example for other industries to follow, emphasizing the significance of

diversity and inclusivity in today's globalized world.

S2. Population Growth (Opportunity)

The estimated population rate of the upper class in the Philippines, which has grown

from 1.4% in 2020 to 1.7% in 2022 according to data from the Philippine Statistics Authority

(PSA), presents a significant opportunity for establishments like the Manila Hotel. While this

upper-income class represents a relatively small percentage of the population, it's worth
noting that their incomes fall within the range of ₱109,200 to ₱182,000 per month, signifying

a segment of society with higher earning potential.

For the Manila Hotel, this shift toward a slightly larger upper class indicates a

potential increase in the number of individuals who can afford premium accommodations and

services. By tailoring offerings and experiences to cater to the needs and desires of this

growing upper-income class, the hotel can tap into this expanding market segment. The

ability to provide luxury amenities, personalized services, and exclusive experiences can

position the Manila Hotel as a preferred destination for this discerning group, contributing to

its overall success and growth.

S3. Rise of Airbnb (Threat)

The rise of Airbnb has been a game changer in the hospitality business. Airbnb, which

was founded in 2008, challenged traditional accommodation by providing a peer-to-peer

hosting network that allowed users to rent out spare rooms or full homes to travelers. It

broadened its offerings to include unique experiences and global expansion, having a big

impact on how people travel. Airbnb created economic opportunities for hosts and drew a

diverse spectrum of guests, but it also encountered regulatory issues in a number of regions.

The COVID-19 outbreak presented new obstacles, but it also prompted Airbnb to adjust by

emphasizing domestic and longer-term stays. Overall, Airbnb's rise reflects a significant shift

in the way consumers locate and enjoy travel. It is essential to reference current news sources

and publications for the most recent events and details.

For a variety of reasons, the rise of Airbnb may offer difficulties to traditional hotels

such as the Manila Hotel. Airbnb frequently provides travelers with cheap costs, a diverse

choice of unique accommodations, and the opportunity to immerse themselves in local

culture. It is better suited for longer stays and may have more accommodating cancellation

procedures. This competition may have an impact on hotel occupancy rates and income.

Furthermore, regulatory differences and the option to book a variety of lodgings on Airbnb

may have an impact on traditional hotel brand loyalty. Traditional hotels, on the other hand,

have responded by improving their offerings and adopting digital platforms in order to

remain competitive in this changing travel scene. The threat varies depending on market

conditions and specific hotel services.

Technological Factor

T1. Level of innovation: Mobile Software Application and Website (Opportunity)

In accordance with the study of Mo Kwon et. al (2021), hotels derived substantial

advantages from the utilization of mobile applications, primarily in terms of increasing direct

reservations and reducing commission costs. This streamlined approach is equally beneficial

for customers, eliminating the need to wait for physical guest books during hotel check-ins.

Furthermore, it empowers hotels to explore various avenues and fine-tune their marketing

strategies towards direct booking channels, ultimately enhancing overall profitability. The

Manila Hotel incorporates a mobile application and a website into its digital strategy to

facilitate a more seamless and convenient experience for visitors, capitalizing on the valuable

data and insights such an app can provide. A well-designed application and website can

strengthen brand loyalty by offering loyalty programs, discounts, and exclusive offers to

repeat customers. It keeps guests engaged even when they're not staying at the hotel. This

website and application enables guests to reserve rooms, complete check-ins and check-outs,

request room service, access information about the hotel's amenities and services, and

schedule tours and events.

T2. Technological Awareness: Digital Communication Platforms (Opportunity)

Based on Greenlaw (2023), hotels and businesses in the hospitality industry, social

media serves as a valuable tool for reaching their target clientele, fostering relationships,

enhancing brand recognition, and driving direct reservations. As per insights from Revenue

Hub, 71 percent of travel enterprises have reported stronger connections with customers

through dedicated social media strategies, while an overwhelming 97 percent of millennials

actively share vacation-related imagery on these platforms. Social media not only facilitates

the dissemination of relevant content and the expansion of audience reach but also enables

performance evaluation. Employing strategies such as hosting giveaways, conducting

contests, leveraging visuals for compelling content creation, and actively engaging in

discussions cultivates customer bonds and relationships. In any comprehensive digital

marketing strategy aimed at heightening awareness and nurturing substantial connections

with both current and potential patrons, the integration of social media is imperative. The

Manila Hotel's marketing and guest engagement approach heavily relies on the efficacy of

social media. This approach enables the hotel to directly interact with consumers, maintain

continuous communication, respond to inquiries and feedback, and extend the reach of their

services to a broader audience. Additionally, it serves as an effective tool for elevating brand

advocacy and cultivating loyalty. Leveraging social media channels empowers the hotel to

actively engage with its clientele, promote its offerings, and establish a robust brand

presence.

T3. Technological Change: Information Security (Opportunity)

In recent times, according to HLB International's 2022 report, the hospitality industry

has experienced a notable increase in ransomware attacks and data breaches. This surge in

cyber threats is primarily attributed to the transition to remote work necessitated by the
COVID-19 pandemic, resulting in a higher frequency and enhanced sophistication of

cyberattacks within the hospitality sector. This paradigm shift underscores the imperative for

The Manila Hotel, a significant establishment, proactively addressed the potential

cybersecurity risks that could jeopardize the security of customer data, financial records, and

other critical information. The Manila Hotel effectively countered these threats, the hotel

implemented a comprehensive cybersecurity strategy. This strategy encompass robust

measures such as encryption, firewall systems, antivirus software, secure data backups, and

comprehensive staff training. The Manila Hotel has implemented comprehensive

cybersecurity training for staff members to raise awareness about potential threats like

phishing attacks and social engineering. Well-informed employees are less likely to fall

victim to cyberattacks. These proactive steps that is implemented are vital not only to adapt to

the evolving threat landscape but also to fortify The Manila Hotel's cybersecurity posture.

Moreover, it is crucial that the Cybercrime Prevention Act of 2012 (RA 10175) in the

Philippines underscores the importance of legal frameworks and regulations in combating

cybercrimes. This legislation serves as a deterrent to cybercriminal activities and provides a

legal foundation for prosecuting individuals involved in hacking, identity theft, cybersex, and

other cyber offenses. Cybersecurity measures create multiple layers of protection for The

Manila Hotel's data, reducing the risk of data breaches and cyberattacks. By implementing a

holistic cybersecurity strategy, the hotel can maintain the trust of its customers, protect its

reputation, and ensure the security and confidentiality of sensitive information.

Environmental

En1. Environmental Policies: Eco-friendly waste solutions (Opportunity)

 As mentioned by Miguel (2022), the Acting Secretary Jim Sampulna of the

Department of Environment and Natural Resources (DENR) has reported persistent

challenges in solid waste management in the Philippines, primarily stemming from

mishandled trash segregation. Despite the mandates set forth in both the Republic Act 9003

and the Ecological Solid Waste Management Act (ESWA) of 2000, effective waste

segregation remains a concern. The operations and procedures at The Manila Hotel are

introducing more environmentally friendly practices into its operations. Potential strategies

they implemented to address this issue include encompassing the segregation of waste, the

establishment of recycling schemes, the initiation of composting projects, the adoption of

measures to curtail waste generation, cooperation with waste management providers,

employee training and awareness programs, and educating guests on waste-related matters.

They are innovating ways to reduce plastic waste and further promote sustainability and

precise methods of waste management may differ depending on the hotel's sustainability

endeavors and compliance with local regulations. The Manila Hotel is committed to

enhancing its business sustainability through a multifaceted approach. By embracing

environmentally responsible practices, such as waste segregation, recycling, and composting

initiatives, they are actively reducing their ecological footprint. Their commitment extends to

minimizing waste generation and collaborating with waste management partners, ensuring

that their operations align with sustainability goals. Employee training and awareness

programs play a pivotal role in fostering a culture of responsibility. Furthermore, by

educating their guests on waste-related matters, the hotel not only promotes sustainability but

also raises awareness among its patrons. Their innovative efforts to reduce plastic waste

exemplify a dedicated commitment to sustainability, while compliance with local regulations

ensures responsible practices. The Manila Hotel's holistic sustainability initiatives underscore
its dedication to both environmental consciousness and long-term business viability.

Implemention of these eco-friendly practices at The Manila Hotel has several positive effects

on guests. The guests can enjoy a cleaner and more pleasant environment due to reduced

waste and improved waste management practices. This enhances their overall experience

during their stay. In addition, the guests can feel good about supporting a business that

prioritizes sustainability since many travelers today are environmentally conscious.

Furthermore, the hotel's efforts to educate guests on waste-related matters can raise

awareness and encourage responsible behavior even after they leave. This can inspire guests

to adopt similar practices in their own lives, contributing to a wider positive impact on the

environment. Overall, these practices not only benefit the hotel's sustainability but also

enhance the guest experience and contribute to a more responsible and conscious travel

industry.

En2. Environmental Policies: Clean Air Act of 1999 or Republic Act 8749 (Opportunity)

As mentioned in the study of Laube (2023), monitoring air quality within hotels

assumes a paramount role in ensuring a comfortable and healthy environment for guests, with

a direct impact on guest satisfaction and loyalty. This emphasis on air quality gains even

greater significance in the context of concerns and other contagions. The Clean Air Act of

1999, also known as Republic Act 8749 (RA 8749), is a Philippine law aimed at addressing

air pollution and promoting air quality. It provides measures and regulations to control and

reduce air pollution from various sources. RA 8749 encourages the use of cleaner

technologies, emissions standards, and the establishment of air quality management programs

to protect public health and the environment.

 It is stated in the Department of Health (2023), the Clean Air Act of 1999 (Republic

Act 8749) in the Philippines has significant implications for establishments such as the

Manila Hotel, as it seeks to mitigate air pollution and enhance air quality through stringent

regulations. Given its urban location, The Manila Hotel is particularly susceptible to air

pollution, which can lead to health concerns, compromise the overall guest experience,

reduce the appeal and use of outdoor amenities, and contribute to environmental preservation.

The Manila Hotel is affected by the act's provisions regarding indoor air quality. The act

mandates that enclosed spaces maintain acceptable levels of air quality, which may require

the hotel to invest in air filtration and purification systems. This is crucial to ensure the well-

being and comfort of guests and staff, particularly in enclosed areas like guest rooms, dining

facilities, and event venues.

In complying with the Clean Air Act, the Manila Hotel adheres to legal requirements

but also contribute to the overall improvement of air quality of the hotel. This proactive

approach enhanced the hotel's reputation as an environmentally responsible establishment,

appealing to environmentally conscious guests and aligning with global sustainability trends.

The Manila Hotel adopted advanced technologies, such as IoT sensors and data analytics, for

air quality assessment and management, promises substantial benefits for establishments. The

implementation of advanced technologies, like IoT sensors and data analytics, for air quality

management at the Manila Hotel significantly enhances the guest experience. These

technologies allow real-time monitoring of indoor air quality, ensuring a comfortable and

healthy environment. Guests will enjoy cleaner, fresher air in their rooms and public spaces.

This investment aligns with environmental concerns and contributes to overall well-being.

Additionally, the adoption of such innovative solutions underscores the hotel's commitment

to guest satisfaction and safety. Ultimately, improved air quality enriches the guest
experience by promoting health and comfort, thereby enhancing the hotel's reputation and

guest loyalty.

En3. Climate Change (Threat)

The Philippines is prone to typhoons due to its location and weather. According to

PAGASA (2022), the Philippines has a tropical and maritime climate with high temperatures,

humidity, and abundant rainfall. It is also prone to tropical cyclones, resulting in heavy rain,

widespread flooding, and strong winds that cause significant harm. Weather in the

Philippines poses significant challenges to The Manila Hotel and the broader hospitality

industry in the Philippines. According to The Philippines' vulnerability to climate change, as

highlighted in the 2022 World Risk Report, has wide-ranging implications for the hotel's

operations, infrastructure, and customer base. The Manila Hotel is at risk of experiencing

more frequent and severe weather events, such as typhoons and heavy rainfall. These events

can disrupt hotel operations, damage property, and pose safety risks to guests and staff. The

need for increased investment in resilient infrastructure, storm preparedness, and emergency

response plans becomes crucial. The changes in rainfall patterns and distribution can affect

tourism in Manila. Unpredictable weather conditions can deter tourists, impacting the hotel's

occupancy rates and revenue. Seasonal shifts in travel patterns may require adjustments to

marketing strategies and pricing models. Traditionally, Manila has thrived as a popular tourist

destination, attracting visitors from across the globe due to its rich cultural heritage and

vibrant urban life. However, with climate change leading to irregular and unpredictable

rainfall patterns, tourists may hesitate to plan trips to the city, fearing the disruption of their

travel experiences. Moreover, fluctuations in tourist arrivals can directly impact the hotel's

revenue streams. A decrease in occupancy rates translates to reduced room bookings, dining,
and other ancillary services, leading to potential revenue losses. The hotel industry in Manila,

closely linked to the city's tourism sector, becomes vulnerable to the capricious nature of

climate-induced weather patterns. The weather has also a negative implications at the sea

level rise since it poses a long-term threat to The Manila Hotel, as it is located in a coastal

area. Rising sea levels can lead to coastal erosion, especially flooding, and saltwater

intrusion, affecting the hotel's premises. Adaptation measures like seawalls and elevated

structures may be necessary to protect the property. Furthermore, climate change can disrupt

local ecosystems, affecting the availability of raw materials like local produce and seafood

for the hotel's restaurants. This can result in increased costs and potential changes in menu

offerings. To mitigate these risks, The Manila Hotel should invest in climate resilience

measures, engage in sustainable practices, and participate in local and national initiatives to

combat climate change. Adapting to a changing climate is not only a necessity but also an

opportunity for the hotel to demonstrate its commitment to sustainability and resilience while

ensuring a safe and enjoyable experience for its guests. The Manila Hotel must proactively

adapt its business strategies to account for climate-related tourism uncertainties. This may

involve diversified marketing efforts, flexible pricing models, and investment in amenities

that can weather the storms, both literally and figuratively, to ensure continued profitability

and sustainability in an era of changing climate dynamics.

Legal Factors

L1. Employment Laws: Contractual Employment Law (Threat)

As stated by Luciano (2023), one of the most contentious subjects within the

Philippines' labor landscape is the matter of contractualization. This term denotes the

employment strategy of engaging workers through fixed-term contracts, and it has remained a
topic of sustained concern and advocacy for numerous decades. The consequences of this

labor practice, concerning workers' rights, employment stability, and the broader socio-

economic development, have engendered vigorous debates encompassing policymakers,

employers, labor unions, and the general populace.

The Department of Labor and Employment introduced Department Order 18-A,

Series of 2011, which, in Section 8, enumerates the entitlements that contractual employees

should rightfully receive. The Philippine government, through Contractualization

Regulations, has adopted measures aimed at regulating and preventing labor

contractualization practices that exploit workers. Employers bear the responsibility of

ensuring full compliance with these regulatory provisions. Non-compliance with labor laws

governing contractual employment may expose employers to potential consequences,

including penalties, fines, or legal actions. It is incumbent upon employers to thoroughly

comprehend and fulfill their obligations under these regulations to evade adverse legal

ramifications.

Furthermore, the Department of Labor and Employment (2023), Section 6 of

Department Order 18-A, Series of 2011, imposes additional financial burdens on the Manila

Hotel by necessitating compliance with employee benefits. This requirement translates into

increased operational expenses for the hotel. Under this provision, if the Manila Hotel utilizes

contractual workers who fall under labor-only contracting, they are legally obligated to

provide the same benefits and entitlements to these workers as they do for their regular

employees. This includes benefits such as health insurance, retirement plans, paid leave, and

other statutory benefits mandated by labor laws. Complying with these benefit requirements

for a potentially substantial workforce can significantly impact on the hotel's financial bottom
line. It demands an allocation of resources that might not have been initially planned for,

affecting the hotel's overall budget and financial sustainability. In essence, Section 6 not only

limits the hotel's flexibility in labor arrangements but also adds to its financial obligations.

These factors collectively contribute to the negative implications of this law for the Manila

Hotel, highlighting the importance of meticulous workforce management and compliance

with labor regulations to mitigate adverse effects on its operations.

L2. Consumer Protection Law: The Data Privacy Act of 2012 or Republic Act of 10173

(Opportunity)

According to the Data Privacy Act of 2012, commonly referred to as Republic Act

10173, is a pivotal legislation aimed at safeguarding individuals' fundamental right to privacy

while balancing the legitimate interests of organizations in collecting personal data. As

mentioned in the study of Toedt (2022), for hotels, particularly prominent ones, strict

adherence to the provisions of the Data Privacy Act is essential to safeguard the privacy and

trust of their consumers and guests. The universally recognized data privacy security and

protection standards. The Manila Hotel commits to strict adherence to the stipulations

outlined in Republic Act No. 10173, commonly referred to as the 'Data Privacy Act of 2012,'

as well as adhering to globally recognized standards pertaining to the security and

safeguarding of data privacy. The Manila Hotel underscores the utmost significance of

safeguarding privacy and is unwavering in its dedication to cultivating and preserving your

confidence through the implementation of stringent protocols aimed at securing and

protecting personal information. The Hotel leverages personal data with the primary objective

of delivering an exceptional and unmatched experience to its esteemed guests, as well as any

individuals or entities engaged in business transactions with the Hotel, irrespective of

reservation types and contractual agreements. This experience is characterized by the

provision of superior service by proficient and courteous hotel personnel, combined with an

ambiance of comfort, opulence, and impeccable service on each visit to the establishment.

Furthermore, it is in the Manila Hotel firm policy to uphold data privacy rights and ensure

that all personal information gathered from you is processed in strict accordance with the

fundamental principles of transparency, legitimate purpose, and proportionality, as explicitly

enshrined in the Data Privacy Act of 2012.

L3. Health and Safety Law (Opportunity)

According to the DOT, The Guidelines governing the operations of Accommodation

Establishments consistent with other COVID-19 policies, and the implementation of the Alert

Levels System, the hotel must implement safety protocols to ensure the safety and health of

guests. Based on Hotelogix (2022), the overarching goal is to facilitate the recovery and

rejuvenation of the tourism industry. To accomplish this, The Manila Hotel has implemented

stringent health and safety regulations, covering the well-being of guests and employees,

compliance with pertinent laws and regulations, the prevention of COVID-19 transmission,

as well as long-term reputation and financial sustainability. In response to evolving travel and

leisure practices worldwide, The Manila Hotel has elevated its cleanliness procedures and

enhanced its amenities by implementing evidence-based approaches in alignment with the

standards set forth by the Department of Tourism and Department of Health. The assurance

of impeccable room hygiene is paramount to us. We employ a multi-step process,

commencing with the utilization of UV-C light technology to eradicate germs, bacteria, and

viruses. Following this, a medical-grade sterilization and disinfection solution is applied.

Additionally, we implement a change of fresh and meticulously sanitized linens, a

comprehensive sanitation of all room touchpoints, including remote controls and lamps, and a

thorough disinfection of the bathroom facilities. Furthermore, guests are provided with

personal wellness kits, furnished with UV-sanitized keycards, and welcomed to their

guestrooms with a seal signifying that they are the inaugural occupants of the meticulously

sanitized environment. Recognizing that the well-being of our staff directly impacts the

quality of service we provide, The Manila Hotel has made significant investments in testing

our personnel upon their return to work, ensuring their health and fitness for duty.These

measures are dedicated to ensuring the safety, comfort, and overall well-being of both our

valued guests and our dedicated staff members. These proactive measures are crucial for

preserving the hotel's long-standing reputation, attracting a diverse clientele, and ensuring the

continued success of its operations. They concurrently establish a secure and confidence-

inspiring environment for guests, staff, and the broader public.

PORTER’s Five Forces Model

Threat of New Entrants – LOW

Manila Hotel operates in the luxury hotel market, which often entails large capital

investments in infrastructure, facilities, and brand establishment. The time and money

required to enter this sector might be significant. For example, establishing a luxury hotel in

Manila necessitates significant financial resources as well as regulatory clearances (CFI

2020).

Luxury hotels, such as Manila Hotel, frequently benefit from economies of scale, especially
in marketing, employee training, and guest services. In addition, according to Bayad, A. et al,
(2021), existing hotels have an edge in providing superior guest experiences, making it
difficult for new entrants to compete on the same level. While technology plays a role in the
hospitality business, the major technologies are frequently industry-standard and easily
accessible to both current and potential players. There may be insufficient protection for
proprietary technologies, discouraging new competitors (Attala, 2019).

The luxury hotel market often has high entry barriers, such as the requirement for great real

estate locations, demanding quality standards, and the time required to create brand

recognition and client loyalty. Because of their brand reputation, infrastructure, and customer

loyalty, established players like Manila Hotel enjoy a competitive edge. To sustain its market

position, the hotel must continue to invest in quality and service excellence.

Industry Competition – HIGH

According to Banerjee, A. (2023), Manila has a competitive landscape in the luxury

hotel market, with multiple high-end hotels and resorts. Shangri-La Hotel, The Peninsula

Manila, and Solaire Resort & Casino are among its main competitors. The quality of services

and amenities provided by these luxury hotels is often great, resulting in heated rivalry. Each

hotel seeks to distinguish itself with distinctive features such as special dining experiences,

spa facilities, and personalized services.

Luxury hotels in Manila distinguish themselves through features like location, architectural

design, cultural experiences, and collaborations with well-known companies or chefs. These

characteristics are intended to attract discerning travelers looking for unique experiences

(Reyes, 2023). As a result, switching hotel providers might result in considerable switching

costs for both suppliers and purchasers. High-end hotels frequently engage with specialized

suppliers for premium products and services, which leads to loyalty programs and

memberships that make guests less inclined to switch to competitors.

While competition is fierce, Manila Hotel's long-standing reputation, legendary stature, and

devotion to providing unique experiences can provide it with a competitive advantage.

Nonetheless, it must constantly innovate and adapt to changing client tastes and industry

trends in order to preserve its position in the face of fierce competition in the premium hotel

sector.

Bargaining Power of Buyers – HIGH

The Manila hotel industry caters to a wide range of customers, including tourists,

business travelers, and event organizers. Individual buying power becomes more diluted as

the client base grows broader. Because of its reputation and location, the Manila Hotel

attracts both domestic and international clients (Kennedy, 2020). There are numerous hotels in

Manila that offers similar services and accommodations, which made guests have more options that

leads to increase their buyer power.

Each guest has their own perceptions that influence their decision, resulting in bargaining

power. Corporate clients, for example, who book rooms and conference facilities on a regular

basis may have more bargaining power due to the volume of business they bring. Manila

Hotel's reputation and brand loyalty have an impact on buyer power. There are customers

who are highly price-sensitive and can easily switch to other hotels for a better deal, this

increases their power to negotiate on price (Burtt, 2023).

Online travel companies and booking platforms, according to Cakar 2023, may

empower users by providing price transparency and comparability. Individual purchasers'

bargaining power may suffer as a result, particularly for regular room bookings. Buyers in the

Manila hotel business wield considerable power as a result of their options and the cost of

switching hotels. While there are various hotel options in Manila, as technology emerge
online booking platforms and price comparison websites empowers customers to find the best

deals easily, putting pressure on hotels to offer competitive prices.

Bargaining Power of Suppliers – MODERATE

The Manila hotel sector benefits from a wide range of providers for different inputs,

such as meals, drinks, linens, and maintenance services. The region has a large number of

vendors that serve the hospitality industry, providing a variety of options and fostering

competition.

Although some suppliers might provide particular goods or services, the sector as a

whole does not largely rely on specialized or proprietary inputs. The power of the provider to

set prices or terms is diminished by the presence of substitute suppliers for the majority of

goods and services (Kennedy, 2020). As a major participant in the upscale hospitality

industry, Manila Hotel has enormous sway over suppliers. According to the Manila Hotel, the

hotel's solid reputation and purchasing power give it a negotiating advantage and can lessen

the influence suppliers have over pricing. In the hotel industry, switching suppliers often

doesn't cost a lot of money or work. The hotel's negotiating position is strengthened by its

ability to transfer suppliers without incurring large expenditures, even though some

adjustments to logistics and relationships may be necessary. C. Martin-Rios 2023.

In conclusion, a low supplier power situation exists for Manila Hotel as a result of a

competitive supplier environment, manageable switching costs, and the hotel's prominence

within the industry. This enables the hotel to negotiate advantageous conditions, maintain

cost-effective operations, and guarantee a high level of service for its visitors. To maintain

this privileged position, the hotel must constantly evaluate its connections with suppliers and

the state of the market.

Threat of Substitutes – MODERATE

Analyzing the threat of substitution for Manila Hotel entails examining the ease with

which customers can move to alternatives in the hospitality business. While the Manila Hotel

provides a distinctive and exquisite experience, various variables contribute to the high risk

of substitution.

According Gerdeman, D. (2018) Customers have a variety of accommodation options.

Apart from typical hotels such as the Manila Hotel, they can choose alternative

accommodations such as vacation rentals, boutique hotels, or even peer-to-peer platforms

such as Airbnb. These alternatives provide distinct experiences and price points, which may

affect the hotel's market share. Staying at the Manila Hotel can be expensive, especially for

luxury rooms. Customers may switch to alternatives if they believe they can find comparable

experience or better value elsewhere. The cost factor is important in the decision-making

processes of customers.

To reduce the threat of substitution, Manila Hotel must constantly differentiate itself,

strengthen its distinctive products, and carefully manage its price strategy. Monitoring client

preferences and industry trends is also critical for adapting to changing customer needs and

being competitive in the market. Luxury hotels like Manila Hotel can keep their appeal

despite the significant threat of substitution in the hospitality sector by offering great service,

distinctive amenities, and a customized experience that is challenging for substitutes to

replicate.
Competitive Profile Matrix (CPM)
The Peninsula Solaire Resort
Manila Hotel New Coast Hotel
Manila & Casino
Critical Success
Weight Rating Score Rating Score Rating Score Rating Score
Factors
Location 0.13 4 0.42 2 0.26 4 0.42 3 0.39

Service Quality 0.15 3 0.45 4 0.60 4 0.60 2 0.30

Brand Reputation 0.10 3 0.30 4 0.40 3 0.30 2 0.20

Pricing Strategy 0.11 4 0.44 2 0.22 1 0.11 3 0.33

Online Presence 0.08 2 0.16 3 0.24 4 0.32 2 0.16

Marketing And
0.06 2 0.12 3 0..18 4 0.24 3 0.18
Promotion Programs
Technology And
0.09 3 0.27 3 0.27 4 0.36 3 0.27
Reservation Systems
Service Provider 0.07 3 0.21 4 0.28 4 0.28 2 0.14
Facilities And
0.10 3 0.30 4 0.40 4 0.40 2 0.20
Amenities
Revenue Management 0.06 3 0.18 3 0.18 4 0.24 2 0.12
Sustainability And
Environmental 0.05 2 0.10 3 0.15 3 0.15 2 0.10
Practices
TOTAL 1 - 3.57 - 3.84 - 3.82 - 3.01

Formula:

Weight x Rating = Weighted Score

Legend:

Weight:

0.0 = not important

1.0 = solely important

Ratings:

1 – major weakness

2 – minor weakness

3 – minor strength

4 – major strength
 These hotels (The Peninsula Manila, Solaire Resort & Casino, and New Coast Hotel)

are most likely considered competitors because they are situated in the same geographical

area or vicinity, which often leads to direct competition for guests looking to stay in that

specific location.

Competitive Profile Matrix Analysis

The Competitive Profile Matrix (CPM) for the selected hotels, namely Manila Hotel,

The Peninsula Manila, Solaire Resort & Casino, and New Coast Hotel, provides a

comprehensive view of their competitive positions based on critical success factors. The

weights assigned to each factor reflect their perceived importance in the industry.

In terms of total scores, The Peninsula Manila emerges as the leader with a total score

of 3.84, indicating a strong competitive position. This is attributed to high ratings across

various factors, including service quality, brand reputation, and facilities and amenities.

Solaire Resort & Casino closely follows with a total score of 3.82, demonstrating its

competitiveness, particularly in areas such as location, service quality, and online presence.

Manila Hotel holds a respectable total score of 3.57, positioning it as a solid

competitor. It excels in factors such as location and pricing strategy. New Coast Hotel,

however, lags behind with a total score of 3.01, suggesting areas for improvement in critical

success factors.

The analysis indicates that all hotels are relatively close in terms of total scores,

emphasizing the competitiveness of the industry. The Peninsula Manila and Solaire Resort &

Casino stand out as leaders, while Manila Hotel maintains a strong presence. New Coast

Hotel may need to focus on enhancing its performance in key areas to improve its

competitive position.
External Factor Evaluation (EFE) Matrix

The researchers conducted a comprehensive analysis of the external factors affecting

the Manila Hotel, encompassing the political, economic, social, technological, environmental,

and legal aspects. Additionally, they delved into the industry landscape and examined the

competitive landscape of rival firms. By employing the External Factor Evaluation Matrix,

the study aims to distill the key findings, providing a concise overview that accurately depicts

Manila Hotel’s performance in relation to the opportunities and threats it faces. This

comprehensive approach ensures a holistic assessment of the company’s external

environment and its strategic positioning in the market.

Formula:

Weight x Rating = Weighted Score

Legend:

Weight:

0.0 = not important

1.0 = solely important

Ratings:

1 – Poor Response

2 – Average Response

3 – Above Average Response

4 – Superior Response
Key External Factors Weight Rating Weighted Score
OPPORTUNITIES
1. P1. Political Stability 0.06 2 0.12

2. S1. Cultural Inclusivity 0.05 4 0.20

3. S2. Population Growth 0.05 3 0.15

4. T1. Mobile Application Software and 0.06 4 0.24

Website
5. T2. Digital Communication Platforms 0.07 4 0.28

6. T3. Information Security 0.04 4 0.16

7. En2. Green Practices of Sustainable and 0.06 4 0.24

Conservation Development
8. L1. Tourism Act of 2009 0.05 3 0.15

9. L2. The Data Privacy Act of 2012 0.04 3 0.12

10. Porters – Low Threat of New Entrants 0.04 2 0.08

THREATS
1. P2. Corruption 0.05 4 0.20

2. P3. Increase in Taxes 0.07 2 0.14

3. Ec1. Increasing Inflation Rate 0.07 2 0.14

4. Ec2. Depreciation of Philippine Peso 0.06 2 0.14

5. Ec3. Increasing Interest Rate 0.06 2 0.12

6. S3. Rise of Airbnb 0.05 3 0.15

7. En3. Climate Change 0.02 4 0.08

8. L1. Employment Laws: Contractual 0.06 4 0.24

Employment Law
9. Porters - High Bargaining Power of Buyers 0.02 3 0.06

10. Porters - High Industry Competition 0.02 3 0.06

TOTAL 1.0 3.07

 The EFE table indicates that The Manila Hotel has achieved a weighted score of 3.07,

signifying that it is effectively capitalizing on opportunities while simultaneously minimizing

the impact of external threats. The entries that follow explain the reasoning for the

information above.

Opportunity Response Analysis

The Manila Hotel has effectively harnessed the power of Digital Communication

Platforms, positioning itself to seize the opportunities presented by the digital era. By

leveraging these platforms to their fullest extent, the hotel has gained a significant

competitive edge.

Through active engagement on various digital channels such as social media, email

marketing, and a user-friendly website, the Manila Hotel has expanded its reach to a broader

and more diverse audience. This has enabled the hotel to attract guests from different regions

and demographics, driving occupancy rates and revenue.

Additionally, the hotel's adept use of digital communication allows for personalized

and targeted marketing campaigns. By analyzing data and guest preferences, the hotel can

tailor promotions and offers to specific segments of its customer base, thereby increasing the

likelihood of conversions and repeat bookings.

Furthermore, digital platforms facilitate real-time interactions with guests, enabling

efficient responses to inquiries and feedback. This not only enhances customer satisfaction

but also builds trust and loyalty.

In summary, the Manila Hotel's strong presence on Digital Communication Platforms

positions it to capitalize on the opportunities presented by the digital age. Through effective

online marketing, personalized interactions, and expanded reach, the hotel has gained

significant leverage, ultimately contributing to its success and competitiveness in the

hospitality industry.

While The Manila Hotel has strengths in various areas, such as Digital

Communication Platforms, it appears that their response to the opportunity presented by the

Low Threat of New Entrants may not be as proactive as it could be. This low threat

indicates that the hotel operates in a relatively specialized or exclusive market segment,

which should be leveraged effectively.

To better capitalize on this opportunity, the hotel can consider several strategies. First,

they could focus on reinforcing their market presence by consistently delivering exceptional

service and continuously investing in property improvements and guest experiences. This

approach would help maintain the hotel's exclusivity and desirability.

Additionally, diversifying their offerings and packages can attract a broader range of

clientele without compromising the hotel's upscale image. This could include promotions or

special packages that appeal to different market segments.

Furthermore, it may be beneficial for the hotel to actively engage with the local

community and leverage its heritage and cultural significance to strengthen its connection

with the city and its residents. This can help solidify its position as an iconic landmark in

Manila.
 In conclusion, while The Manila Hotel has strengths in certain areas, there is room for

improvement in their response to the opportunity presented by the low threat of new entrants.

By focusing on market presence, diversifying offerings, and engaging with the local

community, the hotel can further solidify its position in the market and thrive in its

specialized segment.

Threats Response Analysis

The Manila Hotel's robust response to the threat posed by the Contractual

Employment Law signifies its dedication to upholding labor regulations and maintaining a

fair and ethical work environment for its employees.

One aspect of their response may involve careful and meticulous adherence to

employment contracts and labor laws. This ensures that employees are provided with proper

wages, benefits, and working conditions as mandated by the law. By consistently following

contractual and legal requirements, the hotel minimizes the risk of legal disputes or

regulatory penalties.

Furthermore, The Manila Hotel's response might include a focus on employee welfare

and development. This could involve providing comprehensive training programs,

opportunities for career advancement, and fair performance evaluation processes. Such

efforts not only enhance employee satisfaction but also align with the principles of labor

laws, thereby reducing turnover and attracting top talent.

The hotel may also have strong policies in place to prevent any form of discrimination

or harassment in the workplace. This not only complies with labor regulations but also fosters

an inclusive and respectful work environment.

 Additionally, The Manila Hotel's commitment to contract compliance and labor

regulations can positively impact its reputation. Guests and stakeholders often appreciate

businesses that prioritize ethical and legal labor practices. This can lead to increased trust,

customer loyalty, and a favorable brand image.

In summary, The Manila Hotel's robust response to the challenge of Contractual

Employment Law extends beyond mere legal compliance. It reflects a dedication to creating a

fair, respectful, and nurturing work environment for its employees, which ultimately benefits

both the staff and the hotel's overall reputation.

It's important to acknowledge that while The Manila Hotel has demonstrated strength

in responding to the challenge of the Contractual Employment Law, their response to the

threats posed by the High Bargaining Power of Buyers and High Industry Competition

appears to be less robust.

For the threat of high buyer bargaining power, the hotel could benefit from strategies

that enhance its value proposition. This might involve consistently delivering exceptional

service and experiences to guests, thus reducing the inclination for aggressive price

negotiations. Effective pricing strategies, loyalty programs, and targeted marketing

campaigns can also play a pivotal role in optimizing revenue while maintaining customer

satisfaction.

In terms of high industry competition, The Manila Hotel might consider focusing on

differentiation. Highlighting its unique features, heritage, and prestige through marketing

efforts can set it apart in a crowded market. Moreover, continually monitoring competitors

and adapting strategies accordingly can help maintain a competitive edge. Exploring
collaborations or partnerships with local businesses and attractions can also enhance the

hotel's appeal to potential guests.

In conclusion, while The Manila Hotel excels in addressing the Contractual

Employment Law challenge, there is room for improvement in their responses to the threats

of high buyer bargaining power and intense industry competition. These areas warrant

strategic attention to ensure the hotel's sustained competitiveness and growth in the dynamic

hospitality sector.
 INTERNAL ANALYSIS

I. Management

In a momentous celebration of the rich Filipino heritage, The Manila Hotel has

received the prestigious “Century of Excellence in Service Award” from The Philippine

Heritage Society at the 2nd Filipino Heritage Awards: Mga Tala ng Tagumpay, held on

October 6, 2023, at the iconic hotel. Atty. Joey Lina, the President of The Manila Hotel,

graciously accepted this honor, underscoring the hotel's illustrious history as the Philippines'

premier hotel.

The “Century of Excellence in Service Award” from The Philippine Heritage Society

recognizes organizations that have played a pivotal role in preserving and promoting Filipino

culture and heritage. The Manila Hotel's extensive history and unwavering dedication to

upholding Filipino traditions make it a deserving recipient of this accolade. This prestigious

award reaffirms the hotel's commitment to being a custodian of Filipino culture, solidifying

its legacy as a guardian of Filipino heritage.

This recognition seamlessly complements The Manila Hotel's status as a beacon of

heritage tourism in the Philippines, where it continues to deliver top-notch service. Atty. Joey

D. Lina, serving as the President of The Manila Hotel, has been instrumental in maintaining

its five-star standing. His multifaceted background as a former lawyer, governor of Laguna,

and senator of the Philippines contributes to his warm and friendly leadership style, evident

in the genuine smiles he shares with both visitors and staff.

Atty. Joey D. Lina's role at the helm of one of the country's most renowned five-star

hotels is pivotal, fostering a positive work environment that encourages employees to provide

high-quality service. His extensive leadership experience has honed his communication and
management skills, and his background as a public servant significantly contributes to The

Manila Hotel's success in the hospitality industry.

In response to the challenges posed by the pandemic, The Manila Hotel, under Atty.

Joey D. Lina's guidance, has prioritized enhancing health, hygiene, and sanitation practices.

His reassuring statement, "You are safe here," not only reflects a commitment to guest safety

but also underscores the hotel's dedication to guest well-being. This effective leadership

within the company positions The Manila Hotel for continued success in the industry,

demonstrating resilience and adaptability in the face of evolving circumstances.

II. Marketing

The Manila Hotel stands as a repository of invaluable recollections that chronicle the

illustrious history of this iconic establishment. Revered as the Philippines' most historically

significant hotel, it has amassed an extraordinary treasury of memories. As the nation's oldest

luxury hotel, The Manila Hotel holds within its walls captivating anecdotes, notably the

renowned MacArthur Suite, a residence that commands a rate of P400,000 for four

occupants. This suite once accommodated General Douglas MacArthur during his tenure as

the Military Advisor to the Commonwealth Government of the Philippines from 1935 to

1941. Within the confines of the Heritage Museum, guests will encounter a meticulous scale

model of The Manila Hotel, representing the original main building constructed in 1912

alongside the tower added in the 1970s. Additionally, an impressive model of the first

American Pan-Clipper to alight in Manila Bay, just off the hotel's shores, graces the

museum's exhibits. Over the years, The Manila Hotel has evolved into an emblematic

cornerstone of Filipino heritage and culture, frequently making appearances in literature,

cinematic productions, and artistic creations, thereby securing its stature as a pivotal cultural

landmark. (The Manila Hotel, 2023). This enduring presence, coupled with its architectural
magnificence and historical entanglements, collectively elevate The Manila Hotel to its

esteemed status as a historic gem within the Philippines. While we pay homage to its rich

history and cultural resonance, it is imperative to underscore that The Manila Hotel also

places great emphasis on contemporary luxuries and modern amenities. This synergy ensures

that our esteemed guests not only revel in the allure of history but also experience the utmost

in contemporary comfort. The Manila Hotel endeavor is to craft a comprehensive narrative

that resonates with a diverse array of travelers while unwaveringly upholding our historical

and cultural legacy.

1. Product

According to Tintara and Respati (2022), The core of Manila Hotel's marketing

strategy centers on three pivotal elements: product differentiation, service differentiation, and

image differentiation. Their proficiency in product differentiation is exemplified by the

extensive array of meticulously crafted, elegant rooms and suites. These accommodations

offer guests an experience characterized by spaciousness, comfort, breathtaking vistas, and

contemporary amenities, thereby ensuring a truly luxurious stay. Service differentiation is

another hallmark of Manila Hotel, particularly evident in their world-class dining options that

cater to diverse culinary preferences, enhancing the overall guest experience. Furthermore,

the incorporation of spa and wellness facilities contributes to the hotel's image differentiation,

affording guests opportunities for relaxation and rejuvenation during their sojourn. Manila

Hotel also solidifies its reputation as a premier destination through its sophisticated event

venues suitable for various occasions. By assimilating these principles into their marketing

strategy, Manila Hotel secures a competitive advantage by delivering extraordinary

experiences tailored to the individual preferences and requirements of their patrons. Each
guest is bestowed with a memorable and exceptional stay, thereby reinforcing Manila Hotel's

standing as a prominent player in the hospitality industry (Tintara & Respati, 2020).

The Manila Hotel boasts a remarkable legacy spanning over 111 years, firmly

ingrained in Philippine history. It is an honor to uphold this tradition of delivering

extraordinary experiences to our esteemed guests. The Manila Hotel has consistently

extended warm and tranquil hospitality, ensuring a stay that evokes a sense of home. Its

splendid fusion of traditional Filipino décor with a touch of contemporary elegance creates an

ambiance of timeless comfort. Even as we embrace 21st-century modernization and new

standards of luxury, we remain committed to preserving the charms of being the historic

hotel. At its core, The Manila Hotel's primary offering revolves around providing opulent

accommodations and impeccable hospitality services. This means that, fundamentally, The

Manila Hotel is dedicated to offering a luxurious and refined haven, encompassing well-

appointed rooms, suites, and an array of services aimed at ensuring a delightful and

memorable stay for our cherished guests. To enrich the overall guest experience, we

supplement this core product with a plethora of amenities, diverse dining options spanning

local and international cuisines, and a notable distinction of being Halal-Certified.

In the realm of hosting sophisticated and large-scale events, be it weddings, birthday

celebrations, business functions, meetings, or conferences, we provide a selection of function

rooms designed to accommodate various capacities and preferences. These include the

spacious Fiesta Pavilion, the elegant Centennial Hall with its expansive sections, the

architecturally captivating Maynila Ballroom, the versatile Sampaguita Hall, the distinctive

Champagne Salon, and the reminiscing Roman architecture-inspired Roma Salon.

Additionally, our Tent City stands ready to host grand gatherings with a capacity of 2,500

guests.
 Complementing these offerings are the Manila Hotel world-class amenities, including

a Business Center, the exclusive Executive Lounge, an Art Gallery showcasing contemporary

artistry, The Lobby Shop, The Health Club, a rejuvenating Pool area, and an indulgent Spa.

Our Executive Club Lounge, in particular, ensures guests commence and conclude their days

with relaxation, luxury, and a sense of exclusivity. Every detail of your Club experience is

enhanced through our renowned personalized Filipino hospitality. The Manila Hotel Art

Gallery provides a window into the modern world, featuring the perspectives of various

artists, each carefully selected for their unique contributions. The swimming pool has been

thoughtfully reconfigured and equipped with state-of-the-art systems for a refreshing aquatic

experience, while the Garden Alfresco offers breathtaking sunset views and ultimate comfort.

Our Spa is a sanctuary for weary bodies, offering treatments that promise relaxation and

rejuvenation. For fitness enthusiasts, The Manila Hotel's gym boasts Life Fitness Elevation

series machines equipped with advanced features, ensuring a cutting-edge workout

experience. Additionally, our Health Club offers dry sauna, steam room, Jacuzzi, and serene

fitness programs like yoga and Pilates. In essence, The Manila Hotel is committed to

providing not just accommodation but an exquisite experience, where modern luxury

harmonizes with timeless traditions to ensure the utmost satisfaction of our distinguished

guests.

2. Pricing

According to a study by Putra et al. (2022), strategic pricing is a pivotal factor

influencing consumer purchase decisions and represents a crucial component of the

marketing mix. The Manila Hotel acknowledges the significance of this aspect and has

adopted a strategic pricing approach to maintain its competitive advantage. This approach
involves a meticulous consideration of market dynamics and customer expectations, allowing

the hotel to establish prices that not only reflect its value and exclusivity but also remain

attractive to potential guests. With a legacy spanning 111 years, the Manila Hotel epitomizes

luxury living, fine dining, and exceptional service. The hotel provides amenities such as

complimentary wireless Internet access, on-site dining options, a fully equipped business

center, and a refreshing outdoor swimming pool. The well-designed rooms feature flat-screen

TVs, air conditioning, and comfortable seating areas. The bathrooms are equipped with

showers, baths, and hairdryers. Furthermore, each suite boasts an iPod docking station, Italian

marble baths, and a sensory memory foam mattress. Some rooms offer picturesque views of

Manila Bay, while others provide cityscapes.

The Manila Hotel implements a tiered pricing strategy designed to accommodate

diverse budgets while upholding quality standards. This approach, corroborated by the

research's findings, allows the hotel to positively influence consumer purchasing decisions.

By offering various room categories and packages, the hotel caters to a wide range of

preferences and requirements. Additionally, the hotel adjusts its pricing in response to market

conditions and seasonal fluctuations, ensuring that the perceived value aligns with the cost of

the experience. These strategic pricing practices enable the Manila Hotel to sustain its

competitive edge, deliver a value-driven and exclusive guest experience, and align with the

study conducted by Putra et al. (2022) on the impact of the marketing mix on consumer

purchase decisions. Guests benefit from a variety of pricing options, making it accessible to a

broader range of budgets. This inclusivity allows a wider pool of guests to experience the

hotel's offerings.
Here are the room price comparisons for Manila Hotel, The Peninsula Manila, and Solaire

Resort and Casino Manila.

In terms of pricing comparison with competitors such as the Peninsula Manila and

Solaire Resort and Casino Manila, the Manila Hotel stands out as a significantly more

affordable option. The price comparison reveals that Manila Hotel offers more budget-

friendly rates compared to The Peninsula Manila and Solaire Resort and Casino Manila. The

guests will benefit from the Manila Hotel's significantly lower pricing for its Grand Deluxe

room. This affordability allows guests to enjoy a luxurious experience without a substantial

financial burden. The fact that the Manila Hotel's rate includes taxes, and a complimentary

breakfast adds further value for guests, making their stay more convenient and cost-effective.

The guests w experiences the quality and value offered by the Manila Hotel at a lower price

may become repeat customers and develop loyalty to the hotel brand. The Manila Hotel's

ability to deliver an excellent product and service at a lower cost strengthens its value

proposition and attracts a broader customer base. The Manila Hotel offers a cost-effective

choice while delivering an excellent product and service that fully satisfies guests without
requiring substantial expenditure. The quality of the rooms and services provided by the

Manila Hotel is commensurate with the price paid by customers, ensuring they receive

exceptional value for their investment. This allows the Manila Hotel to maintain a

competitive edge in the hospitality industry. It can attract a broader customer base, including

those seeking luxury experiences and those with more budget-conscious preferences. In

summary, the Manila Hotel pricing strategy has positive effects on guests by providing

affordability, choice, and perceived value.

3. Physical Evidence (Weakness - 1. Lacks Annual Structural Assessments

2. Lacks parking space when fixed season)

Based on Pholphirul (2023), the study underscores the pivotal role of service

marketing strategies in the performance of tourism and hospitality businesses. While the

study delves into a distinct context, its implications can be applied to Manila Hotel's

marketing approach by underscoring the significance of the physical environment in shaping

guest perceptions. Historically, The Manila Hotel has maintained a steadfast commitment to

delivering exceptional services and top-notch amenities, providing an unforgettable guest

experience. While preserving Manila's historical allure and theatrical charm, the hotel has

also managed to seamlessly blend contemporary sophistication into its visual appeal. The

Manila Hotel demonstrates a keen awareness of the critical role of physical evidence and

aligns with the study's conclusions by creating a visually captivating ambiance through

meticulous architectural design, attention to detail, and overall aesthetic appeal. This

deliberate focus on the physical environment is indicative of the hotel's unwavering

commitment to providing a sumptuous and prestigious experience, thereby contributing

significantly to the overall guest impression. The Manila Hotel offers a comprehensive array

of services, spanning accommodations, dining, and event hosting.

 Furthermore, it has recently undertaken a comprehensive renovation, equipping each

room with state-of-the-art facilities and amenities (The Manila Hotel, 2023). This

commitment extends beyond mere comfort, as the hotel places a paramount emphasis on

ensuring the safety and well-being of its esteemed guests. The guests of the Manila Hotel will

enjoy a more sophisticated and elegant experience in the newly renovated guest rooms,

contributing to their comfort and satisfaction and showcase an ambiance of sophistication and

authentic Philippine interior design. Unfortunately, The Manila Hotel doesn't have annual

structural assessments that are crucial for ensuring the safety and stability of historical

buildings like the Manila Hotel.

Even though a building has historical significance, regular inspections help identify potential

issues and ensure necessary maintenance is performed to preserve both the historical value

and safety of the structure. If the Manila Hotel does not undergo annual structural

assessments, it poses a risk to both the safety of its occupants and the preservation of its

historical significance. These assessments are essential to identify any structural weaknesses,

deterioration, or potential hazards that may compromise the integrity of the building. Regular

inspections allow for timely maintenance and interventions, ensuring that the historical value

is preserved while also guaranteeing the safety of those within or around the structure.

Without such assessments, there's a heightened risk of neglecting structural issues that could

lead to serious consequences. Also, the hotel faces parking limitations, especially during peak

seasons when guests increase.

Notably, The Manila Hotel offers tailored services for weddings, birthdays, and

business events, alongside a comprehensive range of facilities, including a business center,

executive lounge, art gallery, lobby shop, health club, swimming pool, and spa. This reflects
the hotel's dedication to preserving its historical charm while consistently exceeding

contemporary guest expectations. Those attending weddings, birthdays, or business events at

the hotel will benefit from meticulously tailored services, creating memorable and seamless

occasions. A cornerstone of The Manila Hotel's enduring success is its ability to adapt to

change while steadfastly maintaining the time-honored traditions it has upheld over the years.

The hotel's approach strikes a delicate balance by preserving the nostalgia and vintage

ambiance of old Manila while ensuring that its services and technology align with modern-

day standards. The preservation of the historical charm of the Manila Hotel adds to the

unique appeal of the hotel, giving guests a sense of staying at a prestigious and culturally rich

establishment. Another noteworthy aspect is the careful attention given to the aesthetics of

the establishment. All rooms and facilities are thoughtfully equipped with the latest amenities

while retaining the charm of classic furnishings. The remarkable feat of modernizing internal

operations while preserving cultural heritage is indeed a rare achievement deserving of

commendation.

Furthermore, the use of high-quality materials, the presentation of amenities, and the

meticulous attention to the visual aspects collectively leave a lasting impression on guests.

Manila Hotel's dedication to enhancing the physical environment reinforces its status as an

emblem of luxury and sophistication, firmly establishing it as a prestigious destination.

4. PLACE

In Manila, the capital city of the Philippines, there is a storied luxury hotel called The

Manila Hotel. It is among the most renowned and iconic hotels in the nation and has a long

history that dates to its founding in 1912. It is also near Rizal Park, which is a very well-
known tourist attraction in the Philippines, which makes a great advantage of the hotel in

terms of its location.

The Manila Hotel is located on Roxas Boulevard in the city's center, with a view of

Manila Bay. A fusion of Spanish and Filipino design features may be seen in the Manila

Hotel's opulent, majestic architecture. There are 570 rooms and suites there, all of which have

breathtaking views of Manila Bay or the city skyline. Several restaurants and bars, a

swimming pool, a spa, a fitness center, and event spaces are among the hotel's amenities.

In the social and political history of the Philippines, the Manila Hotel has a long and

colorful past. Throughout its existence, it has welcomed a large number of heads of state,

celebrities, and dignitaries from throughout the world. During his time in the Philippines

during World War II, it is notable that General Douglas MacArthur lived there.

5. PROMOTION

The Manila Hotel, recognized for its classic luxury and elegance, constantly provides

attractive deals and packages to improve the experience of its visitors. The goal of these

promos is to give both domestic and foreign guests outstanding value and unforgettable stays.

The Manila Hotel's promotions provide something for everyone, from discounted hotel rates

to delectable cuisine, luxurious spa treatments, and one-of-a-kind experiences. The Manila

Hotel's special offers are created to ensure that your time in Manila is genuinely

unforgettable, whether you're looking for a romantic trip, a relaxed weekend retreat, or just a

taste of the hotel's world-class cuisine. As follow are the promotions that The Manila Hotel

offer (The Manila Hotel, 2023)

 a. PREVIOUS PROMOTION

The Manila Hotel recently concluded its enticing Long Weekend Room Sale, which

ran from August 18th to August 21st, 2023. During this limited time offer, guests had the

opportunity to experience the timeless elegance of The Manila Hotel while enjoying special

rates. The promotion included a rate of PHP 5,000 nett for an overnight stay in a Grand

Deluxe Room and a rate of PHP 5,500 nett for an overnight stay in a Superior Deluxe Room.

These rates were inclusive of 12% VAT, 10% Service Charge, and 1% Local Municipal Tax.

Each room allowed maximum occupancy of two adults and two children (aged 12 years and

below). Guests could book their stays for the period of August 18th to August 31st, 2023,

excluding Saturdays, subject to room availability. Though this particular promotion has
ended, The Manila Hotel continues to offer exceptional experiences for its guests throughout

the year.

b. PRESTIGE PROMOTION

One of the prestige promotions of The Manila Hotel is delighted to offer exclusive

promotions for Prestige Members at Cowrie Grill, available starting October 6, 2023. When

you present The Manila Hotel's Prestige card, you can enjoy fantastic discounts on your

dining experience. For solo diners, there's a generous 20% discount applied to the total food

bill. If you're dining with a partner, you'll receive a remarkable 50% off the total food bill for

two diners. For three diners, the discount stands at 33%, while four diners can enjoy a 25%
reduction in their total food bill. Groups of five diners receive a 20% discount, and for larger

parties of six to ten diners, there's a substantial 40% discount available on the Special Set

menu. Additionally, all Prestige Members can take advantage of a 10% discount on

beverages to complement their dining experience. Don't miss out on these exceptional offers

at Cowrie Grill, exclusively for Prestige Members of The Manila Hotel.

c. FOOD AND BEVERAGE PROMOTION

The Manila Hotel is currently offering an enticing Happy Hour Promo that's perfect

for unwinding after a long day. Valid until September 29, 2023, guests can enjoy this

promotion at various locations within the hotel. From Monday to Friday, between 5:00 p.m.

and 8:00 p.m., you can visit the Grand Lobby/Lobby Lounge or Tap Room to indulge in

selected drinks with a fantastic "Buy One, Get One" deal. Alternatively, if you prefer a
poolside ambiance, head to the Pool Bar during the same days between 2:00 p.m. and 5:00

p.m. and enjoy the same offer. It's important to note that pre-ordering drinks before the

designated time or requesting extensions beyond 8:00 p.m. for the Lobby Lounge and Tap

Room and 5:00 p.m. for the Pool Bar is not allowed.

6. PROCESS

As stated by the Manila Hotel 2023, the hotel offers a seamless and guest-centric

booking process that combines modern convenience with the hotel's legendary hospitality.

With a user-friendly online booking platform, guests can easily choose their preferred room

type, select stay dates, and explore special promotions. The hotel's dedicated reservation team

is also available to assist guests in making reservations, ensuring a personalized and hassle-

free experience. From the initial booking to check-in and beyond.

A. Booking Method

The procedure for making a reservation at The Manila Hotel is simple. Through the

hotel's official website, visitors can make reservations, look at available rooms, and choose

the dates of their stay. For individualized assistance with booking, customers can also get in

touch with the hotel's bookings department via phone or email.

B. Check-in Method

Guests are warmly welcomed by the hotel's dedicated personnel upon arrival. The

check-in procedure is quick and comfortable for guests. In addition to any required

reservation information, guests must present proper identification. The hotel personnel will

then assist visitors with a quick and easy check-in procedure, making sure they have all the

details required for a comfortable stay.

C. During the Stay

 The housekeeping process maintains the utmost cleanliness and comfort in guest

rooms, while the culinary team meticulously crafts delectable dishes using the finest

ingredients. Additionally, the concierge and guest services teams are readily available to

assist with any inquiries, reservations, or special requests, ensuring that guests enjoy a

memorable and hassle-free stay. Overall, The Manila Hotel's commitment to excellence is

exemplified in every aspect of its operational process, ensuring that each visit is a truly

unforgettable one.

D. Payment Method

To accommodate guest preferences, The Manila Hotel offers a selection of payment

methods. Visitors can pay their expenses with major credit cards including Visa, MasterCard,

American Express, and others, providing flexibility and security in financial transactions.

Cash payments in the local currency are also accepted.

E. Check-Out Method

Guests can pay their bills at the front desk when it's time to check out. The hotel

offers thorough bills that list all fees incurred throughout the stay. Visitors can read these

charges and select their chosen form of payment, whether it be cash or a credit card. The

check-out procedure runs smoothly and enables visitors to check out without any problems.

Hotel personnel are available to help with any questions or special requests.

7. PEOPLE

The Manila Hotel is renowned for its outstanding presence in the hospitality industry,

celebrated for its steadfast dedication to operational excellence and the seamless integration

of its human resources. The hotel has set an impressive standard for delivering exceptional

and secure guest experiences, with a strong emphasis on ensuring the well-being and
satisfaction of both its guests and staff (Sulagna, 2023). This commitment to surpassing

contemporary expectations is vividly demonstrated through a series of enhancements,

including room refurbishments, the rejuvenation of Café Ilang-Ilang, the improvement of

pool and garden areas, and the introduction of wellness amenities. These enhancements not

only signify the hotel's unwavering commitment to providing exceptional guest experiences

but also underscore its dedication to cultivating a proficient and motivated workforce,

ultimately surpassing guest satisfaction.

The Manila Hotel's dedication to safety and hygiene is evident in its proactive safety

policies, stringent housekeeping practices, and thorough staff training. Every facet of their

esteemed service is meticulously revamped to provide uncompromising value and tangible

results. This steadfast commitment to excellence in both operations and human resources

serves as the bedrock of The Manila Hotel's enduring success (The Manila Hotel, 2021).

Furthermore, The Manila Hotel places a high priority on implementing

comprehensive security measures to establish a secure environment. The hotel strategically

deploys security cameras across public areas, including entrances, lobbies, hallways, and

parking lots, with vigilant security personnel overseeing them to promptly detect and respond

to any suspicious activities. Expertly trained security personnel are entrusted with the critical

role of upholding a safe environment through diligent patrols, continuous monitoring of

CCTV cameras, and swift responses to security concerns or emergencies. Additionally,

stringent guest verification procedures ensure that only authorized individuals gain access to

the hotel premises, further reinforcing the sense of security and exclusivity associated with

The Manila Hotel.

Moreover, The Manila Hotel makes substantial investments in its staff through

specialized training and development programs to enhance their efficiency. The hotel's
nurturing work environment, coupled with comprehensive training, has cultivated a loyal and

highly regarded workforce, with many employees opting to remain with the hotel for

extended periods. The staff plays a pivotal role in the hotel's success, as they are not only

proficient in operating modernized equipment and facilities but also adept at providing

exceptional hospitality. The hotel's reputation within the tourism sector is further bolstered by

its commitment to equitable compensation, benefits, and HMO coverage, solidifying its

reputation as an establishment that values its employees and, consequently, enhances its

standing in the industry. the Manila Hotel is committed to providing a smooth and enjoyable

process, making each guest's stay truly memorable. Additionally, Manila Hotel also take

good care of their employees. The Manila Hotel, one of the Philippines' premier luxury

hotels, prides itself on providing a host of benefits, incentives, and comprehensive training

programs to its employees. These offerings are designed to attract and retain top talent in the

industry. As stated by Danilo, R. (2022) For its staff, the hotel offers competitive

compensation packages, health and wellness benefits, and access to on-site amenities like

fitness facilities and dining discounts. In addition, employees can take advantage of career

development opportunities through ongoing training and skill enhancement programs,

ensuring that they remain at the forefront of the hospitality industry. The Manila Hotel

recognizes and rewards exceptional performance through performance-based incentives,

recognition programs, and employee appreciation events. These benefits, incentives, and

training opportunities not only foster a positive work environment but also motivate the staff

to deliver exceptional service to guests, contributing to the hotel's legacy of excellence in the

hospitality sector.

III. Finance/Accounting
 The Manila Hotel Corporation's 2020 financial statement, available on the Philippine

Securities and Exchange Commission (SEC) website, tells a story of resilience amidst

adversity.

In 2020, the COVID-19 pandemic hit the tourism sector hard, resulting in a 49%

decrease in revenue and a substantial net loss of ₱534.4 million. Despite these challenges, the

Manila Hotel maintained financial strength, with assets of ₱11.6 billion, liabilities of ₱4.1

billion, and substantial equity, indicating a strong financial position.

Government support, including a loan and grant, helped the company navigate the

pandemic's impact. Looking ahead to 2021, the Manila Hotel is poised for recovery as the

Philippine tourism industry gradually rebounds. The company is actively implementing cost-

saving measures.

In summary, the Manila Hotel's financial resilience positions it to thrive as tourism

makes a comeback in the Philippines, demonstrating adaptability in the face of adversity.

1. Corporate Information

The Manila Hotel Corporation is a Philippine-based company that operates the Manila

Hotel, a five-star hotel located in Manila, Philippines. In addition to managing the Manila

Hotel, the company is also involved in the operation of other hotels and resorts, as well as the

food and beverage industry. This corporate information provides an overview of the

company's primary business activities.

2. Basis of Preparation

The Manila Hotel's financial statements are prepared on a historical cost basis. Under

this accounting method, assets and liabilities are recorded at their original acquisition cost.

This approach provides stability and objectivity to financial reporting, as it is based on

verifiable transactions and values at the time of acquisition. Furthermore, revenue and

expenses are recognized on an accrual basis, meaning they are recorded when they are earned

(revenue) or when they are incurred (expenses), regardless of the timing of cash receipts or

payments. Accrual accounting is favored for its ability to provide a more accurate

representation of a company's financial performance over time.

3. Statement Compliance

The Manila Hotel's financial statements are prepared in compliance with Philippine

Financial Reporting Standards (PFRS). These standards are issued by the Philippine

Accounting Standards Board (PASB), which serves as the Philippine equivalent of the

International Accounting Standards Board (IASB). Complying with PFRS ensures that the

company follows accounting standards that are recognized and accepted in the Philippines,
and it promotes consistency and comparability in financial reporting among Philippine

companies.

4. Presentation of Company Financial Statements

The Manila Hotel's financial statements include the following:

 Balance Sheet

 Income Statement

 Statement of Cash Flows

 Statement of Changes in Equity

 Notes to the Financial Statements

Current Ratio 2019 2018

Current assets PHP 1,414,512,848 PHP 1,276,980,482
Current Liabilities 4,386,304,953 4,188,095,265
Current Ratio 0.32:1 or 32% 0.30:1 or 30%

The current ratio is a measure of a company's ability to cover its short-term liabilities

with its short-term assets. A current ratio above 1 indicates that the company has more

current assets than liabilities. In this case, the current ratio has improved from 2018 to 2019,

which is positive. However, a ratio below 1 suggests potential liquidity issues, and the

company may struggle to cover its short-term obligations.

Return on Equity 2019 2018

Net Profit 27,379,934 30,003,342
Average Stock Stockholders 885,799,331 858,419,397
Equity
Return on Equity 0.031:1 or 3.1% 0.035:1 or 3.5%

ROE measures the profitability of a company in relation to its equity. A higher ROE

indicates more efficient use of equity capital. In this case, the ROE has decreased slightly
from 2018 to 2019. It implies that the company's ability to generate profits from its

shareholder's equity has declined.

Profit Margin 2019 2018

Net Profit 27,379,934 30,003,342
Net Sales 1,438,837,177 1,382,391,151
Profit Margin 0..019:1 or 1.9% 0.022:1 or 2.2%

Profit margin measures the percentage of sales that turn into profits. A higher profit

margin indicates better profitability. In this case, the profit margin has decreased from 2018

to 2019. It suggests that the company is retaining a smaller percentage of its sales as profit,

which might be due to increased costs or lower sales prices.

1. Net Sales:

- 2018: PHP 1,382,391,151

- 2019: PHP 1,438,837,177

2. Net Profit:

- 2018: PHP 30,003,342

- 2019: PHP 27,379,934

3. Current Assets

- 2018: PHP 1,276,980,482

- 2019: PHP 1,414,512,848

4. Current Liabilities

- 2018: PHP 4,188,095,265

- 2019: PHP 4,386,304,953

5. Average Stockholders' Equity

- 2018: PHP 858,419,397

- 2019: PHP 885,799,331

IV. Operations and Human Resources

Operations:

The Manila Hotel group operates several properties, including The Manila Prince

Hotel, which is a four-star hotel located in Ermita. According to The Manila Prince Hotel

(2023), The Manila Prince Hotel's strategic location near malls, amusement parks, museums,

Luneta Park, and The Manila Hotel itself makes it a preferred choice for both leisure and

business travelers. The hotel also features Café Ilang-Ilang, a renowned restaurant offering

diverse culinary experiences. Currently, The Manila Hotel is hosting a special culinary event,

the Culinary Journey to Quezon Province at Café Ilang-Ilang, offering guests a taste of the

rich and varied local delicacies from Quezon Province until May 31, 2023.

To enhance its operations, The Manila Hotel has introduced the Golf+ Room Promo,

where guests can enjoy a game of golf at Club Intramuros with specially discounted green

fees when they purchase this package. Additionally, the hotel group extends its operations

beyond its flagship location with branches like Cowrie Grill in Greenhills, M Boutique at

NAIA Terminal 3, and Marcelino St. Café, a buffet restaurant offering Chinese and Filipino

cuisine in Ermita, Manila. These additional branches further enrich the hotel's offerings and

expand its presence (The Manila Hotel, 2023).

Human Resources:

As stated by The Manila Hotel (2023), in terms of human resources, The Manila

Hotel values its experienced staff, as evidenced by interviews with seasoned captain waiters

such as Mr. Raldy Arciega (with 25 years of service), Mr. Adonis Prado (7 years of service),

and Mr. John Cedrick Sychangco (4 years as a waiter, 1 year as a captain waiter, and 5 years

overall). These employees express contentment with their work, citing benefits, a positive

work environment, and competitive salaries. They enthusiastically recommend newcomers to

start their careers at The Manila Hotel, known for its rich history and prestigious 5-star

reputation in the Philippines. The Manila Hotel not only delivers a premium guest experience

but also fosters a work environment where employees are proud to be a part of the hotel's

legacy. This combination of efficient operations and a well-cultivated human resource

strategy contributes to The Manila Hotel's continued success in the competitive hospitality

industry.

V. Research and Development

The Manila Hotel, a symbol of the Philippines' rich history and commitment to top-

tier hospitality, has consistently upheld its reputation for elegance and world-class service.

Since its inauguration in 1912, the hotel has undergone transformative renovations to meet

the evolving needs of its distinguished clientele.

In 2008, in anticipation of its grand centennial celebration in 2012, Manila Hotel

embarked on a series of dramatic renovations, including fully refurbished rooms exuding

sophistication through authentic Philippine interior design. These rooms now offer expansive

windows providing breathtaking views of the bay and Manila sunset. Additionally, Café

Ilang-Ilang, a renowned dining establishment within the hotel, underwent a transformation

into a three-period meal buffet restaurant with nine live cooking stations, showcasing a

diverse array of local and international cuisines. This culinary experience extends to the

newly renovated Pool and Garden area, featuring a reconfigured pool, state-of-the-art pumps,

a sun deck with Dedon Orbit lounge chairs, and a newly refurbished wet bar.
To cater to guests' relaxation and wellness, the Manila Hotel Spa and Health Club were

introduced. The health club boasts a newly opened gym equipped with high-tech Life Fitness

Elevation series machines, dry sauna, steam room, and Jacuzzi. Recognizing the importance

of being technologically relevant, the Manila Hotel underwent a significant tech initiative in

2015, implementing Microsoft Solutions across all departments, including Office 365,

Microsoft Exchange Online, Microsoft Dynamics NAV, and Office Online to streamline

operations and enhance the guest experience.

The year 2020 brought unforeseen challenges with the COVID-19 pandemic. The

Manila Hotel responded proactively by modernizing facilities with advanced technologies

like HEPA filters, Fresh Air Dampers, Air Micro Filters, and UV-C Sanitation to prioritize

the health and safety of guests and employees in line with Department of Health regulations.

However, the Manila Hotel's research and development initiatives, while aiming

to modernize the historic landmark, have faced criticism for their potential negative impact.

Critics point to the loss of historical elements like the original facade and interior details,

leading to concerns about the hotel's cultural significance. Additionally, modernization

efforts might have overlooked accessibility features, hindering the experience for people with

disabilities. The focus on luxury services has also drawn criticism, with concerns that the

hotel caters primarily to a high-end clientele, neglecting the needs of a broader audience and

potentially exacerbating existing economic disparities within the local community.

Furthermore, the displacement of local businesses and vendors during

renovations has raised concerns about the hotel's impact on the surrounding economy and

residents' livelihoods. Environmentalists argue that the hotel's research and development
efforts lack focus on sustainable practices and eco-friendly solutions, potentially contributing

to environmental damage like increased waste generation and resource consumption.

Finally, critics call for greater transparency and accountability from the hotel

regarding its research and development processes, demanding more information and

stakeholder engagement to ensure the hotel's development aligns with the needs and values of

the community and mitigates potential negative impacts. While the Manila Hotel has

undertaken positive initiatives in areas like historical preservation and community

engagement, a comprehensive evaluation requires acknowledging both the positive and

negative aspects of its research and development efforts to promote responsible and

sustainable development for the benefit of all stakeholders.

VI. Management Information System

Transaction Processing System (TPS)

The transaction processing system plays a crucial role in helping the organization

create documents and assessments promptly. TPS facilitates business transactions that

involve collecting, extracting, and modifying transactional information. Additionally, it has

the potential to reduce costs and give the organization a competitive advantage. TPS is

essential because it ensures that the data gathered is accurate and delivered in a timely

manner, enhancing workforce productivity. It also supports the company's ability to deliver

products and services to its customers.

Point of Sale (POS)

An automated system used for monitoring sales of items in places like hotel

restaurants, bars, coffee shops, or gift shops. These systems consist of various components,
including records, computers, and other connected technology within a computer network.

The point-of-sale system (POS) manages payroll, labor, and earnings while also generating

data suitable for accounting purposes.

Property Management System (PMS)

This is employed to achieve essential objectives like coordinating front-office staff

responsibilities, sales, and planning. Property management systems enable the automation of

crucial functions such as guest reservations, guest data, online bookings, as well as sales and

marketing. This system is efficiently employed across various sectors to analyze and aid in

operational and strategic activities.

These include areas such as:

 Security

 Housekeeping

 Maintenance

 Financial controls and accounting.

Enterprise resource planning (ERP)

The Manila Hotel employs Microsoft Dynamics NAV, a globally recognized

enterprise resource planning (ERP) software designed primarily for medium-sized

enterprises. This user-friendly system offers specialized features that empower organizations

to gain better financial control and optimize their supply chain, production, and operational

processes. ERP represents a type of software used by businesses to oversee everyday business

operations, including financial management, procurement, project management, risk

management and compliance, and supply chain activities. In addition, ERP includes

enterprise performance management software, which supports an organization's financial

performance planning, budgeting, forecasting, and reporting.

Overcoming the challenges of an obsolete system

In 2008, The Manila Hotel underwent a series of substantial changes. The hotel

completely renovated and modernized all of its rooms, equipping them with the latest

facilities and amenities. For an extended period, The Manila Hotel had been dependent on an

in-house server. However, when this server experienced a critical failure, it caused a state of

urgency as they lost the ability to communicate via email with employees, stakeholders, and

customers. In response to this situation, PASI recommended transitioning from an on-site

server to a cloud-based solution, specifically Microsoft Dynamics NAV + Office 365, to

align with contemporary technology trends.

DAVID’S FUNCTIONAL AUDIT

MANAGEMENT
YES
1. Does the firm use strategic-management concepts?

YES
2. Are company objectives and goals measurable and well communicated?

YES
3. Do managers at all hierarchical levels plan effectively?

YES
4. Do managers delegate authority well?

YES
5. Is the organization's structure appropriate?

YES
6. Are job descriptions and job specifications clear?

YES
7. Is employee morale high?

YES
8. Are employee tumover and absenteeism low?

YES
9. Are organizational reward and control mechanisms effective?

MARKETING
YES
1. Are markets segmented effectively?

YES
2. Is the organization positioned well among competitors?

YES
3. Has the firm's market share been increasing?

YES
4. Are present channels of distribution reliable and cost effective?

YES
5. Does the firm have an effective sales organization?
 YES
6. Does the firm conduct market research?

YES
7. Are product quality and customer service good?

YES
8. Are the firm's products and services priced appropriately?

YES
9. Does the firm have an effective promotion, advertising, and publicity

strategy?

YES
10. Are marketing, planning, and budgeting effective?

YES
11. Do the firm's marketing managers have adequate experience and

training?

YES
12. Is the firm's internet presence excellent as compared to rivals?

Finance and Accounting

NO
1. Were is the firm financially strong and weak as indicated by financial

ratio analysis?

YES
2. Can the firm raise needed long-term capital through debt and/ or equity?

NO
3. Does the firm have sufficient working capital?

YES
4. Are capital budgeting procedures effective?

YES
5. Are divided payout policies?
 YES
6 Does the firm have good relations with its investors and stockholders?

YES
7 Are the firm’s financial manager experienced and well trained?

8 Is the firm’s debt situation excellent? NO

Production and Operation

YES
1. Are suppliers of raw materials, parts, and subassemblies reliable and

reasonable?

YES
2. Are facilities, equipment, machinery, and offices in good condition?

YES
3. Are inventory-control policies and procedures effective?

YES
4. Are quality-control policies and procedures effective?

YES
5. Is the organization's structure appropriate?

YES
6. Are facilities, resources, and markets strategically located?

7. Does the firm have technological competencies? YES

Research and Development

NO
1. Does the firm have R&D facilities? Are they adequate?

NO
2. If outside R&D firms are used, are they cost-effective?
 NO
3. Are the organization's R&D personnel well qualified"

NO
4. Are R&D resources allocated effectively?

YES
5. Are the management information and computer systems adequate?

YES
6. Are present products technologically competitive?

Management Information System

YES
1. Do all managers in the firm use the information system to make

decisions?

YES
2. Is there a chief information officer or director of information systems

position in the firm?

YES
3. Are data in the information system updated regularly?

YES
4. Do managers from all functional areas of the firm contribute input to the

information system?

YES
5. Are there effective passwords for entry into the firm's information

system?

YES
6. Are strategists of the firm familiar with the information systems of rival

firms?

YES
7. Is the information system user-friendly?
8 Do all users of the information system understand the competitive YES

advantages that information can provide firms?

9 Are computer training workshops provided for users of the information YES

system?

10 Is the firm’s information system continually being improved in content YES

and user-friendliness?
Internal Factor Evaluation (IFE)

Key Internal Factors Weight Rating Weighted Score

STRENGTHS
1.
Positive Working Environment 0.05 3 0.15

2.
Effective Management Team - 0.03 3 0.09

3.
World Class Rooms and Amenities 0.08 4 0.32

4. Located in Historical Site and Scenic Manila

0.07 4 0.28
Bay
5.
Budget-Friendly Rates 0.05 3 0.15

6.
Outstanding Monthly Promotional Materials 0.04 4 0.16

7.
Seamless Process 0.06 4 0.24

8.
Historic Value of Building and Place 0.07 4 0.28

9. Consistent Employee Training and

0.03 3 0.09
Enhancement Programs
10.
Up-to-date Management Information System 0.03 3 0.06

WEAKNESSES
1. Lacks Annual Structural Assessment 0.06 2
0.12
2. Poor R&D Budget Allocation 0.04 2
0.04
3. Limited Parking Facility 0.07 2
0.14
4. Substantial Net Loss in 2020 0.07 1 0.07
 5. Low Current Ratio 0.08 1
0.08
6. Decreasing ROE and Profit Margin from 2018- 0.09 2 0.18
2019
7. Underqualified R&D Personnel 0.04 1
0.04
8. Absence of R&D Facilities 0.04 1
0.04
TOTAL 1.00 2.53

The presented table provides a comprehensive overview of the internal factors

affecting the hotel business. The total weighted score of 2.53 suggests a relatively strong

internal position.

Strengths such as a positive working environment, an effective management team,

world-class rooms and amenities, strategic location, budget-friendly rates, outstanding

promotional materials, seamless processes, historic value, consistent employee training, and

technological integration contribute significantly to the overall positive evaluation. These

strengths collectively create a strong foundation for customer satisfaction, operational

efficiency, and competitive advantage.

Despite several weaknesses, including the need for annual structural assessment,

limited research and development funding, parking facility constraints, and financial

challenges in 2020, the overall internal position remains strong. Addressing these weaknesses

will be crucial for sustained growth and improvement.

In conclusion, the hotel's strong internal position is a result of its notable strengths,

which outweigh the identified weaknesses. This positive standing positions the hotel well for
continued success, with opportunities to further enhance performance through targeted

improvements in key areas.

SWOT Matrix

STRENGTHS WEAKNESSES

Positive Working Environment Lacks Annual Structural Assessment

Effective Management Team - Poor R&D Budget Allocation

World Class Rooms and Amenities Limited Parking Facility

Located in Historical Site and Scenic Substantial Net Loss in 2020

Manila Bay
Budget-Friendly Rates Low Current Ratio

Decreasing ROE and Profit Margin from

Outstanding Monthly Promotional Materials
2018-2019
Seamless Process Absence of R&D Facilities

Historic Value of Building and Place Underqualified R&D Personnel

Consistent Employee Training and

Enhancement Programs
Up-to-date Management Information
System
OPPORTUNITIES THREATS

P1. Political Stability P2. Corruption

S1. Cultural Inclusivity P3. Increase in Taxes

S2. Population Growth Ec1. Increasing Inflation Rate

T1. Mobile Application Software and
Ec2. Depreciation of Philippine Peso
Website
T2. Digital Communication Platforms Ec3. Increasing Interest Rate

T3. Information Security S3. Rise of Airbnb

En2. Green Practices of Sustainable and
En3. Climate Change
Conservation Development
L1. Employment Laws: Contractual
L1. Tourism Act of 2009
Employment Law
L2. The Data Privacy Act of 2012 Porters - High Bargaining Power of Buyers

Porters – Low Threat of New Entrants Porters - High Industry Competition

 SPACE Matrix

Internal Analysis External Analysis

Financial Position (FP) Stability Position (SP)
Return on Investment (ROI) 4 Rate of Inflation -6
Leverage 3 Technological Changes -1
Liquidity 2 Price Elasticity of Demand -6
Working Capital 1 Competitive Pressure -3
Cash Flow 2 Barriers to Entry into Market -2
Financial Position (FP) Average 2.4 Stability Position (SP) Average -3.6
Internal Analysis External Analysis
Competitive Position (CP) Industry Position (IP)
Market Share -6 Growth Potential 3
Product Quality -2 Financial Stability 4
Customer Loyalty -3 Ease of Entry into Market 4
Technological Know-how -2 Resource Utilization 2
Control Over Suppliers/Distributors -4 Profit Potential 5
Competitive Position (CP) -3.4 Industry Position (IP) Average 3.6
Average

2.4 + (-3.6) = -1.2 y-axis 3.6 + (-3.4)= 0.2 x-axis Coordinate (0.2, -1.2)

Conclusion: The organization demonstrates an average internal financial position but faces

stability challenges, while externally, it encounters economic pressures but benefits from

industry growth potential, resulting in a competitive quadrant positioning.

 Quantitative Strategic Planning Matrix
STRATEGIC ALTERNATIVES
1 2
Increase Renovate and
Advertising Develop Existing
Activities Establishment
Key Factors Weigh AS TAS AS TAS
t
Opportunities
P1. Political Stability 0.06 - - - -
S1. Cultural Inclusivity 0.05 2 0.10 4 0.20
S2. Population Growth 0.05 4 0.20 2 0.10
T1. Mobile Application Software and Website 0.06 4 0.24 1 0.6
T2. Digital Communication Platforms 0.07 4 0.28 1 0.7
T3. Information Security 0.04 - - - -
En2. Green Practices of Sustainable and
0.06 - - - -
Conservation Development
L1. Tourism Act of 2009 0.05 - - - -
L2. The Data Privacy Act of 2012 0.04 - - - -
Porters – Low Threat of New Entrants 0.04 3 0.12 2 0.8

Threats
P2. Corruption 0.05 - - - -
P3. Increase in Taxes 0.07 2 0.14 4 0.28
Ec1. Increasing Inflation Rate 0.07 1 3
Ec2. Depreciation of Philippine Peso 0.06 - - - -
Ec3. Increasing Interest Rate 0.06 - - - -
S3. Rise of Airbnb 0.05 4 2
En3. Climate Change 0.02 - - - -
L1. Employment Laws: Contractual Employment
0.06 - - - -
Law
Porters - High Bargaining Power of Buyers 0.02 4 0.08 1 0.02
Porters - High Industry Competition 0.02 4 0.08 3 0.06

Total 1.0
Strengths
Positive Working Environment 0.05 - - - -
Effective Management Team - 0.03 - - - -
World Class Rooms and Amenities 0.08 2 0.16 4 0.32
Located in Historical Site and Scenic Manila Bay 0.07 3 0.21 4 0.28
Budget-Friendly Rates 0.05 3 0.15 2 0.1
Outstanding Monthly Promotional Materials 0.04 4 0.16 2 0.08
Seamless Process 0.06 1 0.06 4 0.24
Historic Value of Building and Place 0.07 3 0.21 4 0.28
Consistent Employee Training and Enhancement - - -
0.03 -
Programs
Up-to-date Management Information System 0.03 - - - -
0 0
Weaknesses 0 0
Lacks Annual Structural Assessment 0.06 1 0.06 4 0.24
Poor R&D Budget Allocation 0.04 - - - -
Limited Parking Facility 0.07 1 0.07 4 0.28
Substantial Net Loss in 2020 0.07 4 0.28 3 0.21
Low Current Ratio 0.08 4 0.32 3 0.24
Decreasing ROE and Profit Margin from 2018-2019 0.09 4 0.36 3 0.27
Underqualified R&D Personnel 0.04 1 0.04 2 0.08
Absence of R&D Facilities 0.04 2 0.08 4 0.16
Total 1.0 3.4 5.54
 The Quantitative Strategic Planning Matrix (QSPM) has been utilized to evaluate the

feasibility of two alternative strategies for Manila Hotel. Strategy No. 1, focused on

increasing advertising activities, yields a Sum of Total Attractiveness Score (STAS) of 3.4.

This suggests a moderate level of potential benefit, positioning the strategy as positive but not

as impactful as the baseline score of 3.0. On the other hand, Strategy No. 2, involving the

renovation and development of the existing establishment, boasts a considerably higher

STAS of 5.54. This implies a substantial positive impact, indicating that this strategy has the

potential to bring about significant improvements in the overall strategic position of Manila

Hotel. The higher STAS for Strategy No. 2 suggests that it is a more promising avenue for

the company, addressing critical factors identified in the analysis. Therefore, it is

recommended that Manila Hotel prioritizes and allocates resources toward implementing

Strategy No. 2 to capitalize on its potential for substantial positive outcomes.

 ACTION PLAN

Strategic Action Plan Lead Person Timeline Budget

Objectives

1. Conduct Facilities January - Allocate Php

Annual Structural a. Hire a qualified Manager December 3,000,000 for
Assessment structural engineer to 2024 assessment,
conduct a improvements,
comprehensive and ongoing
assessment. evaluations.

b. Implement
recommended
structural
improvements.

c. Develop a
schedule for regular
structural
assessments.

d. Ensure compliance
with safety and
regulatory standards.

2.Enhance Facilities January - Allocate Php

Parking Facilities a. Conduct a Manager December 5,000,000 for
feasibility study to 2024 feasibility
identify parking studies,
facility needs. planning, and
initial
b. Develop plans for implementation.
expanding or
optimizing parking
facilities.

c. Collaborate with
local authorities or
private entities for
joint ventures.

d. Implement the
approved plan for
 parking facility
enhancement.

3. Improve a. Conduct a Chief January - Allocate Php

Operational comprehensive Operations December 2,000,000.00
Efficiency s process review. Officer (COO) 2024 consider
b. Implement investments in
efficiency-boosting technology,
technologies. marketing
c. Establish KPIs to campaigns,
measure employee
training, and
financial n.

4. Establish R&D Head of January - Allocate Php

Facilities a. Invest in creating Research and December 8,000,000 for
dedicated R&D Development 2024 facility setup,
facilities with equipment
necessary resources. purchase, and
ongoing
b. Collaborate with maintenance.
academic institutions
or industry experts
for joint R&D
centers.

c. Allocate funds for

maintenance and
continuous
improvement of
R&D facilities.

d. Ensure compliance
with safety and
regulatory standards.

5. Enhance a. Conduct a Digital January - Allocate Php

Digital Presence comprehensive audit Marketing December 2,000,000 for
and Booking of the existing digital Manager 2024 audit, upgrades,
Platform platforms, including and user
 the hotel website and experience
mobile application. improvements.
b. Identify areas for
improvement based
on user feedback,
industry trends, and
technological
advancements.
c. Upgrade the digital
platforms to enhance
user interface,
navigation, and
overall user
experience.

6. Counteract a. Diversify the Chief Sales January - Allocate Php

Bargaining Power customer base to Officer December 1,600,000 for
of Buyers reduce dependency 2024 diversification
on a single buyer. efforts, loyalty
b. Enhance programs, and
product/service negotiations
differentiation to
reduce buyer power.
c. Implement loyalty
programs to retain
customers.
d. Negotiate
mutually beneficial
agreements with key
buyers.

7.Customer a. Implement a Chief Customer January - Allocate Php

Relationship robust CRM system. Officer (CCO) December 3,000,000.00
Management b. Offer 2024 investments that
personalized enhance
customer differentiation,
experiences. operational
c. Launch loyalty efficiency,
programs to retain innovation,
customers. customer
relationships,
and agile
marketing.
References

(N.d.). Com.Ph. Retrieved September 16, 2023, from https://www.manila-hotel.com.ph/about-

the-manila-hotel/the-manila-hotel-story/

(N.d.-a). Researchgate.net. Retrieved September 16, 2023, from

https://www.researchgate.net/publication/351780048_Hotel_Service_Quality_The_Impac

t_of_Service_Quality_on_Customer_Satisfaction_in_Hospitality

(N.d.-b). Hotelmanagement.net. Retrieved September 16, 2023, from

https://www.hotelmanagement.net/tech/10-ways-smart-technology-reshaping-hotel-

industry

Adel, R. (2023). What it means for Philippine hotels: WTTC launches verification scheme for

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