FACILITIES MANAGEMENT PRACTICES AND IMPLICATIONS ON COSTOMER PATRONAGE IN FOUR AND FIVE STAR HOTEL WITHIN LAGOS MATROPOLIS

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Facilities management has become an emerging trend in today’s dynamic business environment. (Mudrak et al., 2004) conceptualized facilities management as the initiation, coordination, and management of all non-core services related to workplace environment, business premises, buildings, systems and IT operations and fittings and fixtures that enhances day to day operations leading to improvement in productivity and overall performance of the organization. In a similar study, (Moore and Finch, 2004) stated further that facilities management also involves professional services that boost core business functions such as business management, engineering and architecture. Hence, the increasing trend in employment of facilities officers and manger and in some cases setting up and staffing of facilities management department in proactive organizations because of its importance to organization growth and sustainability (Tay and Ooni, 2009).

(Edum-Fotwe, Egbu and Gibb, 2003) found out that facilities management has also become prominent in the hospitality industry and most especially in hotels.  With its introduction into hotel operations in luxurious hotels in Europe, America and other developed counties of the world, the authors found out that its adopted has continually impacted positively on the quality of service delivery which consequently improved the levels of customer patronage, loyalty, performance and sustainability of the hotels.  Hence, hotels that adopt facilities management is perceived to achieve its corporate objectives, has competitive advantage over other competitors in the same industry and maintains improved performance from time to time. In a related study, (Telfer, 2005) concluded that hoteliers’ invests so much money into facilities management because they see it as a core of their business on which the survival of their businesses lies.  For instance, facilities management activities such as improving on the architectural structures of the hotel buildings, improvement of the overall ambiance of the entire internal and external areas of the of the hotel, such as the gardens, the  pool area, the general lobby, the different lounges, the rooms including the internal and exterior designs gives memorable  experience to guests who are likely to continually patronize the hotel and also introduced their family and friends to visit the hotel for a pleasurable experience.  

Though a prominent feature in property management practice with interesting and positive implications in corporate firm in developed countries (Pitt, 2007); its practice is still yet to find its footing on developing countries such as Nigeria. In the same instance, (Chamayne, 2013) found out that facilities management practice has significant and positive impact on the level of customer satisfaction which increases the level of customer patronage in a hotel. The facilities management practices discovered by the author included infrastructural ambiance, availability of non-smoking rooms, distance from attractions, well managed pools, room cleanliness and comfort and excellent safety and security across the hotel. Hence, this study is conceptualized to investigate into the facilities management practices used by four and five hotels operating in Lagos metropolis.

1.2 Rationale of the study

From observation, facilities management seems not be practiced by hotels in Nigeria except for few that run their operations in accordance to international best standards and practices.  It also saddening that some four and five star hotels have gone moribund majorly due to the absence of proactive facilities management practices in the hotels.  For instance, the Federal Palace Hotel in Lagos, one of the prides of Nigerian hospitality industry could not be effectively managed and was transferred to the Ibru Family who later sold over 50% of the shareholding to Sun International South Africa who now manage the hotel. The continuous change in ownership of the hotel was as a result of bad management and more importantly poor faculties’ management practices adopted by the Federal Government of Nigeria and Ibru Family when they were in charge of the affairs of the hotel. Given this backdrop, the study is rightly conceptualized to answer the question of what are the facilities management practices and implications on customer patronage in four and five star hotels operating within Lagos metropolis. Interestingly, the findings of the study will reflect the challenges of facilities management practice by Nigerian hotels and also give home grown and proactive recommendations on how hotels management can set up facilities’ management practice given the peculiarity of the services they offer and the environment in which they operate.

1.3 Research Questions

The central research question to be answered by the current study is: What are the facilities management practices and implications on customer patronage in four and five star hotels operating within Lagos metropolis? However, the following sub-research questions will be answered in the course of the study:

1. What are the emerging trends in facilities management practices in four and five star hotels as reflected in previous literature?
2. What is the nature and practice of facilities management in selected four and five stars hotels in Lagos metropolis?
3. What the implications of facilities management practice on customer patronage are of selected four and five hotels in Lagos metropolis?
4. What factors militate against effective application of identified facilities management practices in selected hotels within Lagos metropolis?
5. What proactive facilities management practices strategies can be recommended for hotels in the study area based on outcome of research analysis and reviewed literature?

1.4 Aim and Objective of the study

The aim of the study is to investigate into the facilities management practices used by four and five star hotels operating in Lagos metropolis. In order to have a clearer understanding of the aim of the study; some specific objectives have been identified to achieved in the course of the study. These objectives include:

1. To identify from literature review the emerging trends in facilities management practices in four and five star hotels
2. To determine the nature and practice of facilities management in selected four and five stars hotels in Lagos metropolis
3. To determine the implications of facilities management practice on customer patronage of selected four and five hotels in Lagos metropolis
4. To determine the factors that militating against effective application of identified facilities management practices in selected hotels
5. To make recommendations on proactive facilities management practices strategies for hotels in the study area based on outcome of research analysis and reviewed literature 

1.5 Scope of the study

The field of facilities management, hospitality industry and customer orientation are wide in nature, hence, the study is limited in scope of the areas of the variables that are examined and investigated during the course of the study. Given the earlier explanations and discussion in the chapter, the study investigates facilities management practices of four and five star hotels and these practices affect customer patronage in the hotels that are investigated during the field study within the study area chosen for the study. In specific terms, the study will only take a general overview of facilities management practices of hotel facilities from the standpoint of the current nature and practice activities, the challenges that faces its implementations given the peculiarity of the Nigerian business environment and its effects on customer patronage of the sampled. Four and five star hotels within Lagos metropolis are selected given the fact that Lagos is the commercial hub of Nigeria and the most appropriate city that can be studied given the existence of large number of four and five star hotels that have daily patronage from diverse visitors owing to hospitality status and trend and the fun-loving nature of residents and tourists in Lagos.

1.6 Structure of the study

The entire study is made up of five different and distant chapters. 

Chapter one of the study is the introductory chapter and discusses the background of the study, the rationale and motivation of the researcher to conduct the study, the research questions that are answered in the course of the study and the aim and objectives that are achieved at the end of the study.

Chapter two of the study undertakes a review of relevant literature in terms of the findings and opinion of authors in previous studies which are closely related to the variables that make up the current study. In actual terms, the chapter discusses conceptual, theoretical and empirical perspectives of facilities management practices in different industries and countries and most especially hotels in Nigeria. However, the reviews are directly and specifically related to the research questions and objectives of the study. Finally, the gap in literature which led to the conceptualized of the current study is reflected and therefore leads to the empirical aspect of the current study.

Chapter three of the study lays the foundation of the empirical aspect of the current study. The chapter discusses the research philosophy on which the study is laid, the research strategy and design. The chapter also discusses the research methods in terms of the data collection method, sample size and sampling techniques and the research instrument adopted by the researcher to gather data during the field survey of the study.  The chapter ends with data analysis methods and ethical considerations adhered to by the researcher in conducting the study.

Chapter four reflects the findings and discussion of the data gathered by the researcher in the course of the field survey of the study. Specifically, the researcher presents, analyzes and discusses the empirical findings of the study laying the foundation for the final chapter of the study. Through this chapter, the researcher was able to develop valid and reliable conclusions and recommendations for future action on the subject matter and variables of the study.

Chapter five discusses the conclusion and recommendations with regards to the findings of the study have reflected in chapter three of the study. The chapter also reflects the limitations of the entire study and researcher’s proposal of future studies that can be carried out in furtherance of research knowledge on the subject matter.