Procurement Issues of the UK Hotel Giant DeMere Group - Essay Example

The DeMere Group’s project objectives and project success criteria are reviewed as well. A comprehensive procurement plan is detailed and finally, a procurement strategy which perfectly suits the DeMere Group is proposed in the essay.The UK hospitality and hotel industry is growing at a brisk pace. DeMere Group is one of the UK’s leading hotel chains, which are synonymous with the burgeoning village style leisure clubs and hotels which have developed in the UK in the last two decades.

The DeMere Group has been operational since the 1980s and owns fifteen luxury hotels located in various parts of the UK.The year 2007 ended on a positive note for the UK hotel industry, as the hotel industry experienced a double-digit growth in terms of revenue per available room or RevPAR. The RevPAR in London had shot up by 10% while Aberdeen remained as the city with the highest level of RevPAR in the UK. Although the economic gloom since 2008 has affected a number of other industries, the hotel industry continues to grow at a comparatively steady rate.

The DeMere Group has two projects on the pipeline, namely the one at Heathrow Terminal while the other at Cardiff. They are so planning to build 3 5 Star hotels with an estimated budget of £25million. The problems they now face are the objections from the adjacent residential communities, which are claiming that building a hotel in the area would violate the conservation status of that area. Moreover, a number of pressure groups are also trying to enforce the “Green Belt” planning restrictions on the De Mere group.

Hence, it is evident that the DeMere Group needs to formulae a procurement strategy which will ensure the projects are completed within a short period of time and create the least amount of hassles on site.