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EXHIBIT 17
From: Edwina Michaels, Purchasing Director, Longmore Hotels, Richmond, Surrey, UK
To: Roddy Ryan, Sales and Distribution Director, Kreem Ltd
Date: 22 July 2010
BY FAX: STRICTLY CONFIDENTIAL Dear Mr Ryan,
As you may know, we are a chain of 75 UK hotels, with 3,750 bedrooms in total. As part of an
ongoing rebranding exercise, we are looking to change our toiletries supplier and are approaching
you to discuss an initial contract for three years from 1 January 2011 to 31 December 2013. The
existing supplier will not be re-tendering.
We see ourselves as direct competitors of Mangold, Airview and Bullover, and as a result our
proposal is subject to Kreem Ltd not supplying any of these companies while you have a contract
with us.
We consider ourselves a very attractive proposition, particularly in view of our expansion plans (see
below).
The proposal
Our plans (which are not to be disclosed to other parties without our express permission) are as
follows:
Year to 31 December 2011 2012 2013
Average number of hotels 75 90 150
Average number of bedrooms 3,750 4,500 7,500
Average occupancy rate 70% 80% 85%
The lower occupancy rates for 2011 are due to the fact that all our 75 existing hotels will be
undergoing a rebranding and refurbishment during the year to 31 December 2011, during which all
bedrooms will be closed for an average of two months. This rebranding and refurbishment
(following which the hotels will be known under the name Longmore Prestige) is a prelude to a
major two-part expansion programme:
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