A Review on Indicators of Corporate Real Estate Strategies for Hotel Industry in Sri Lanka

Abstract

Attached

Corporate strategy is a set of a unique programme designed to achieve specific objectives of the organization. It describes the philosophy of the business which executed at departmental level through a functional and tactical plan of the organization. Many organizations focused on production, marketing, finance and human resources as important functional level priorities and marginal emphasis was given for Corporate Real Estate (CRE); the real estate portfolio of a nonreal estate organization. However, organizations are required to strategically manage its CRE to unleash the potentiality of CRE because real estate is a primary factor of production. The outcome of the effective and efficient implementation of the tactical real estate plan is the successful attainment of organization’s objectives. An effective strategic management of its CRE is a requirement of the hotel industry; a subset of travel and tourism industry of Sri Lanka to add value to successful attainment of hotel’s objectives. Therefore effective application of CRE strategies at the operational level is vital. Since, industry specific tactical level indicators of CRE strategies are not reviewed at the national context, this study focused to identify tactical level CRE strategic indicators of the hotel industry in Sri Lanka. Total of 38 respondents participated in the expert review session that comprised with academic, senior managers of hotels, management of the regulatory body of tourism in Sri Lanka and industry veterans. The Analytic Hierarchy Process (AHP) used as the methodology of the study to review expert opinion on indicators of CRE strategies of the hotel industry in Sri Lanka. The expert panel prioritized 27 CRE strategic indicators of the hotel industry in Sri Lanka. The finding contributes CRE literature of hotel industry in Sri Lanka and the study recommends empirical validation of identified CRE strategic indicators to test the impact of each indicator on CRE strategy in the hotel industry in Sri Lanka.