The Executive Residency in Shanzu, Mombasa, was grappling with declining guest satisfaction, low occupancy rates, poor financial performance, high maintenance costs, and ongoing cash flow problems. Despite its prime location, the complex failed to meet its potential, prompting concerns from shareholders. Hospitality Associates International was called to conduct an operational audit from August 7th to 12th, 2023. The primary goal was to evaluate the effectiveness and efficiency of the complex’s operations and determine their alignment with the establishment’s strategic objectives. The audit had to address multiple issues, including governance, risk management, operational efficiency, and policy compliance, all of which contributed to the complex’s underperformance. Identifying and resolving these issues was essential for reversing the downward trend and restoring the property’s market competitiveness.

The operational audit conducted by Hospitality Associates International was a thorough and systematic review of all aspects of the complex’s operations. The process included detailed document reviews, stakeholder interviews, on-site observations, and data analysis. The audit aimed to uncover inefficiencies, evaluate departmental performance, ensure accountability, and assess compliance with established policies and procedures. Key areas of focus included governance and management structures, risk assessment and mitigation, housekeeping and laundry operations, front office efficiency, food and beverage service quality, human resources effectiveness, and sales and marketing strategies. Additionally, the audit reviewed financial management practices, including budgeting, cost control, and reporting, as well as purchasing and store operations. The objective was to provide an independent, objective assessment of the complex’s operations, ensuring the findings and recommendations were free from bias, and to identify actionable recommendations to enhance performance, reduce costs, and improve overall guest satisfaction.

The audit report provided a comprehensive analysis of the complex’s operational challenges and presented two strategic options to address them. The first option recommended engaging hospitality consultants to implement the audit’s recommendations and tailor operations to the specific needs of the complex. This approach would involve a phased implementation plan focused on long-term improvements. The second option proposed partnering with a professional hotel operator who could immediately introduce established standards, systems, and expertise to deliver quick operational and financial benefits. Both options offered viable paths forward, each with its advantages, allowing the shareholders to choose the approach that best aligned with their goals and resources. Ultimately, the audit laid the foundation for informed decision-making and the revitalization of the Executive Residency complex.