Comm 303 Group Case Study Wyndham Milwaukee Airport Hotel Closing Group 6: Brad Wolters, Dana...

Comm 303 Group Case Study

Comm 303 Group Case Study

Wyndham Milwaukee Airport Hotel Closing

Group 6: Brad Wolters, Dana Mrazek, Alicia Sala, Sasha

Cooper

Wyndham Milwaukee Airport Hotel Closing

Group 6: Brad Wolters, Dana Mrazek, Alicia Sala, Sasha

Cooper

Introduction-PurposeIntroduction-Purpose

Our purpose is to introduce and examine all of the events that led to the closing of the Wyndham Hotel near General Mitchell Airport in Milwaukee.

During this case study we will make connections to theories we have covered in our course.

We will also try to examine what could have been done to prevent this from occurring.

Our purpose is to introduce and examine all of the events that led to the closing of the Wyndham Hotel near General Mitchell Airport in Milwaukee.

During this case study we will make connections to theories we have covered in our course.

We will also try to examine what could have been done to prevent this from occurring.

Events that led to closingEvents that led to closing

The Wyndham faced steep challenges during the recession.

This led to lost revenue.The hotel didn’t have a solid plan to

help them fight through the recession.The hotel had multiple cutbacks,

especially with their maintenance department.

The hotel was also sold multiple times which led to an identity crisis.

The Wyndham faced steep challenges during the recession.

This led to lost revenue.The hotel didn’t have a solid plan to

help them fight through the recession.The hotel had multiple cutbacks,

especially with their maintenance department.

The hotel was also sold multiple times which led to an identity crisis.

Closing continuedClosing continued

The building began to fall apart and desperately needed a renovation.

This organization had a bureaucratic approach that limited what their employees could do to help.

The restaurant inside of the hotel closed which the hotel depended on for banquets and private parties.

The hotel also replaced the large Grand Racquet and Fitness Club for a much smaller fitness center inside of the hotel.

The building began to fall apart and desperately needed a renovation.

This organization had a bureaucratic approach that limited what their employees could do to help.

The restaurant inside of the hotel closed which the hotel depended on for banquets and private parties.

The hotel also replaced the large Grand Racquet and Fitness Club for a much smaller fitness center inside of the hotel.

Contextual Overview of the Organization

Contextual Overview of the Organization

The Wyndham Hotel’s purpose is to provide a quality place to stay for their customers.

They have banquet space and they are very near the airport to help provide a place for travelers.

They have a great deal of rooms and have been in service for over 50 years.

The Wyndham Hotel’s purpose is to provide a quality place to stay for their customers.

They have banquet space and they are very near the airport to help provide a place for travelers.

They have a great deal of rooms and have been in service for over 50 years.

Contextual Overview Cont.Contextual Overview Cont.

The structure of the hotel is very controlling and is represented by the owners of the hotel.

Many of the employees that had the ability to help the hotel change in a positive way were limited because of the practices of the hotel owners.

The hotel owners often had unethical practices.

The structure of the hotel is very controlling and is represented by the owners of the hotel.

Many of the employees that had the ability to help the hotel change in a positive way were limited because of the practices of the hotel owners.

The hotel owners often had unethical practices.

Contextual Overview Cont.Contextual Overview Cont.

The Wyndham Hotel is located near the General Mitchell Airport in Milwaukee.

Although there were cutbacks with the hotel, they still employed 133 employees.

All of which will be laid-of because of the hotel closing.

We will examine the hotel from the beginning of the recession up to their closing on December 22, 2012.

The Wyndham Hotel is located near the General Mitchell Airport in Milwaukee.

Although there were cutbacks with the hotel, they still employed 133 employees.

All of which will be laid-of because of the hotel closing.

We will examine the hotel from the beginning of the recession up to their closing on December 22, 2012.

Identification of Key IssueIdentification of Key Issue

The key issue facing the hotel is a failure to adapt during the recession.

The hotel and the owners didn’t have any idea what should be done to help the hotel succeed.

The lack of preparation because of the recession led to cut-backs.

These cut-backs caused the hotel to begin falling apart because no upkeep occurred.

The key issue facing the hotel is a failure to adapt during the recession.

The hotel and the owners didn’t have any idea what should be done to help the hotel succeed.

The lack of preparation because of the recession led to cut-backs.

These cut-backs caused the hotel to begin falling apart because no upkeep occurred.

Key Issue Cont.Key Issue Cont.

The hotel also changed hands between multiple owners.

This led to an identity crisis because there wasn’t an established owner.

The owners of the hotel failed to keep the hotel in working order.

The hotel also changed hands between multiple owners.

This led to an identity crisis because there wasn’t an established owner.

The owners of the hotel failed to keep the hotel in working order.

Analysis and Explanation of Organizational ProblemAnalysis and Explanation of Organizational Problem

Many hotels, including Wyndham, operate with a formal structure, or bureaucratic control. Bureaucratic control literally means 'rule of the office' and indicates that an organization is being operated on an impartial and business-like set of rules or codes. This has obvious benefits that maintain day to day operations with a ladder of command, clear system of right, responsibilities, and duties, and distributed work with specific duties to complete. This system is based on rational-legal authority. The harm it presents may not be as evident.

Many hotels, including Wyndham, operate with a formal structure, or bureaucratic control. Bureaucratic control literally means 'rule of the office' and indicates that an organization is being operated on an impartial and business-like set of rules or codes. This has obvious benefits that maintain day to day operations with a ladder of command, clear system of right, responsibilities, and duties, and distributed work with specific duties to complete. This system is based on rational-legal authority. The harm it presents may not be as evident.


This structure shapes employees' obedience to adhere to enforced rules and regulatory codes, not to customs and beliefs.

This structure shapes employees' obedience to adhere to enforced rules and regulatory codes, not to customs and beliefs.


The main problem that Wyndham faced seemed to stem from lost revenue because of the recession. The hotel had to lower prices to compete with neighboring hotels. There did not seem to be a strong campaign mentioned in the article to counteract the recession issue. The plan revolved around cutbacks. Management decisions that cut back on maintenance and restaurant amenities did not drive in more business.

The main problem that Wyndham faced seemed to stem from lost revenue because of the recession. The hotel had to lower prices to compete with neighboring hotels. There did not seem to be a strong campaign mentioned in the article to counteract the recession issue. The plan revolved around cutbacks. Management decisions that cut back on maintenance and restaurant amenities did not drive in more business.


There was obviously a lot of oversight happening at the Wyndham hotel that many of employees may not have known about or did not know exactly how to respond. The bureaucratic approach limits current employees from being a part of or applying any type of broad engagement into shaping the success of the hotel. Of course, employees are supposed to be positively shaping the attitudes of current guests, but workers are not given clearance to go beyond this.Employees have have firsthand engagement into customer needs.

There was obviously a lot of oversight happening at the Wyndham hotel that many of employees may not have known about or did not know exactly how to respond. The bureaucratic approach limits current employees from being a part of or applying any type of broad engagement into shaping the success of the hotel. Of course, employees are supposed to be positively shaping the attitudes of current guests, but workers are not given clearance to go beyond this.Employees have have firsthand engagement into customer needs.

Analysis and Organizational Problem

Analysis and Organizational Problem

Lower level employees do not necessarily have to deal with the same issues, in terms of filling empty rooms. Supervisors and management have many duties which focus on guest comfort, but these positions do not necessarily have a set of rules that may have to drive new sales or brainstorm promotional tactics. There may have been a specific person that worked on budgets and promotions, but this person could have benefited from using current staff input.

Lower level employees do not necessarily have to deal with the same issues, in terms of filling empty rooms. Supervisors and management have many duties which focus on guest comfort, but these positions do not necessarily have a set of rules that may have to drive new sales or brainstorm promotional tactics. There may have been a specific person that worked on budgets and promotions, but this person could have benefited from using current staff input.

Identification of Ethical Issues


There were a lot of ethical issues involved in this case. The owners of the Wyndham hotel, Shady Grove Road Associates LLC., were unethical in a number of different ways. They didn’t promote genuine dialogue and understanding amongst different organizational stakeholders. For example, the owners failed to follow the Wyndham franchise rules and regulations.

There were a lot of ethical issues involved in this case. The owners of the Wyndham hotel, Shady Grove Road Associates LLC., were unethical in a number of different ways. They didn’t promote genuine dialogue and understanding amongst different organizational stakeholders. For example, the owners failed to follow the Wyndham franchise rules and regulations.



They didn’t keep the hotel in good shape like it should have been to attract customers and keep them coming back. They also weren’t paying their franchise fees. The financial troubles of the hotel were public, so information about the hotel could not be missed by stakeholders. The hotels management decision-making process was also unethical. The owners were not managing the hotel in the proper manner.

They didn’t keep the hotel in good shape like it should have been to attract customers and keep them coming back. They also weren’t paying their franchise fees. The financial troubles of the hotel were public, so information about the hotel could not be missed by stakeholders. The hotels management decision-making process was also unethical. The owners were not managing the hotel in the proper manner.



They failed a property inspection because of dim lighting, a leaky roof, wall damage, damaged parking lots, and even mold was found. They didn’t invest the money needed to bring the hotel back up to date. The hotel owners were to the point where they were in danger of losing its Wyndham franchise rights because of all of this and failing to pay franchise fees. In 2010 the owner made a deal with their lender, US Bank to avoid foreclosure.

They failed a property inspection because of dim lighting, a leaky roof, wall damage, damaged parking lots, and even mold was found. They didn’t invest the money needed to bring the hotel back up to date. The hotel owners were to the point where they were in danger of losing its Wyndham franchise rights because of all of this and failing to pay franchise fees. In 2010 the owner made a deal with their lender, US Bank to avoid foreclosure.



Wyndham hotel management made a vow to make all repairs on everything on the hotel premises that needed to be fixed and get caught up on payments by the following year. By September 2011 their lender had filed for foreclosure against the owners obviously because they didn’t follow through. In a result of all of this 133 employees will be laid off soon due to poor choices and failure to seek help when needed.

Wyndham hotel management made a vow to make all repairs on everything on the hotel premises that needed to be fixed and get caught up on payments by the following year. By September 2011 their lender had filed for foreclosure against the owners obviously because they didn’t follow through. In a result of all of this 133 employees will be laid off soon due to poor choices and failure to seek help when needed.

Organizational Assessment


As far as the Organizational Assessment, Wyndham Hotel used bureaucratic control in which they handled things in a business-like structure instead of looking out for the interest of the consumer, or hotel guests. Since the hotel’s rapid growth caused money to decrease, and it was unable to keep growing on it’s own, the company had to agree to a 1 billion reconstruction of the hotels. This was run by Thomas H. Lee Partners and Apollo Real Estate Advisors. It was them who made the drastic changes in the downgrade of hotels instead of taking control and investing money elsewhere.

As far as the Organizational Assessment, Wyndham Hotel used bureaucratic control in which they handled things in a business-like structure instead of looking out for the interest of the consumer, or hotel guests. Since the hotel’s rapid growth caused money to decrease, and it was unable to keep growing on it’s own, the company had to agree to a 1 billion reconstruction of the hotels. This was run by Thomas H. Lee Partners and Apollo Real Estate Advisors. It was them who made the drastic changes in the downgrade of hotels instead of taking control and investing money elsewhere.



They should have kept hotel pricing the same, in which they would pour more money into the upkeep of the hotel rooms. If they wanted to keep the reputation of the luxury brand and name, they would need to appeal to their consumer in these regards. They could have also run promotions to get people into their hotels, such as buy one night, get another night free. Although they might have seen that as losing money, by the volumes of people they could have gotten in on that promo alone could have increased profit.

They should have kept hotel pricing the same, in which they would pour more money into the upkeep of the hotel rooms. If they wanted to keep the reputation of the luxury brand and name, they would need to appeal to their consumer in these regards. They could have also run promotions to get people into their hotels, such as buy one night, get another night free. Although they might have seen that as losing money, by the volumes of people they could have gotten in on that promo alone could have increased profit.



They also could have done smaller things such as discounted dinners, or discounted benefits such as the spa, etc. They could have built a better rapport with their cliental such as engaging with them, letting them know of future promotions, or giving them special deals separately. This would have kept the luxury reputation as well as customer loyalty. There are many things they could have done to boost revenue instead of tearing it down and rebuilding, which drove people away.

They also could have done smaller things such as discounted dinners, or discounted benefits such as the spa, etc. They could have built a better rapport with their cliental such as engaging with them, letting them know of future promotions, or giving them special deals separately. This would have kept the luxury reputation as well as customer loyalty. There are many things they could have done to boost revenue instead of tearing it down and rebuilding, which drove people away.



"Closing Harold's was a mistake, said Craig Kuper, who managed the Grand Milwaukee Hotel before the sale to Shady Grove. The restaurant's elegant atmosphere created an image that helped the hotel draw banquets and other group events, he said.

"Closing Harold's was a mistake, said Craig Kuper, who managed the Grand Milwaukee Hotel before the sale to Shady Grove. The restaurant's elegant atmosphere created an image that helped the hotel draw banquets and other group events, he said.

Works CitedWorks Cited

Daykin, T. (2012, November 3). Wrecking Ball Could Swing at Wyndham Hotel. Journal Sentinal. Retrieved October 24, 2012

Vogel-Davis, S. (2012, October 24). Wyndham Hotel by Airport to Close. The Business Journals. Retrieved October 24, 2012

Daykin, T. (2012, November 3). Wrecking Ball Could Swing at Wyndham Hotel. Journal Sentinal. Retrieved October 24, 2012

Vogel-Davis, S. (2012, October 24). Wyndham Hotel by Airport to Close. The Business Journals. Retrieved October 24, 2012

Comm 303 Group Case Study Wyndham Milwaukee Airport Hotel Closing Group 6: Brad Wolters, Dana...

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