Introduction

As a listed company, Kay Hotel Group owns and operates 28 chain boutique hotels across the
country. Since the Covid-19 pandemic in 2020, waves of epidemic shocks have made the hotel
industry difficult. However, Kay Hotel Group has used excellent business management to
minimize the impact of the Covid-19 pandemic. Currently, two full years have passed since the
outbreak of the epidemic. The Subang region has been identified as a key growth area for the
next few years by Kay Hotel Group after a survey. Therefore, Kay Hotel Group wants to acquire
the hotel industry in the region. Among the five recommendations, Singgah Sana SS Hotel is the
most suitable.

Rebuttal
It is true that Singgah Sana SS Hotel is the most expensive out of all the 5 options . However, the
occupancy rate of Singgah Sana SS Hotel is 90%, which can slowly balance the price of Kay
Hotel's investment in Singgah Sana SS Hotel and make a profit for the next few years. As for
10% ownership by different shareholders, it may be true that 10% ownership by different
shareholders can affect the decision making. Nevertheless, it was not given to ordinary people
but to famous people. Famous people could use it to act as an advertisement to advertise their
hotel. Therefore, it could gain more customers coming into the hotel and earn more profits.
Furthermore,it is true that it can affect the demand by nearby competitors. Nonetheless, this is
also an advantage for Kay Hotel Group, as it allows Kay Hotel Group to improve and change
itself in a competitive environment. Therefore, this can provide them with more experience when
they face the same situation again in the future.