Amber Inn and Suites is a hotel chain established in 1979.

It is made up of 250 hotels with approximately 120 guest rooms. They are known for placing their hotels in areas close to highways, airports, office complexes, and large regional shopping centers. The U.S. Hotel industry demonstrates revenues upward of $113.7 billion and profits of $16.7 billion in 2004. In respect to fragmentation, the hotel industry seems to be decentralized. Hotels have to compete against amenities, service, and price. There are different types of hotels, ranging from full service to limited service. Full service hotels offer a great range of amenities but are pricey. These full service branded hotels accounted for about 1.6 million hotel rooms in 2004. Limited service hotels do not have these extra amenities and are therefore cheaper. Amber Inn is a limited service hotel chain that offers comfortable rooms in convenient locations at reasonable prices. In 2004, the average occupancy across all hotel segments was 61.3 percent, the average daily rate was $86, and the revenue per available room was $53 though hotel segments are allowed to vary greatly upon these performance measures. According to studies, about half of all guests stayed at hotels for purposes other than business. On average they would pay about $89 a night. Business travelers accounted for paying $96 a night. The major problem that is haunting Amber Inn is that their net profits have decreased in the last three years. Because of this, they have hired a new CEO Joseph James to lift the company. The new CEO wants to increase Amber s business and profitability through EBITDA. Overall they have the decision between increasing their customer base, allocate extra funds in their advertising and marketing, or choose to keep everything the same.