European Union financial Crisis and slow recovery also cause a massive downturn in the Latvian economy, which affected many of the businesses situated in the region. Similarly, Hotel Latvia also faced a rapid decline in its revenue, which was founded with an entrepreneurial dream of three friends to build a five star hotel in Liepaja, a seaside city in Latvia.
After a few early profitable years, the hotel is now struggling and making a loss or barely breaking even. The co-owners, in the rapid decline, also considered to sell their business. But after some serious measures from the European Union for the recovery, enhanced the confidence of many entrepreneurs.
Now the co-owners had to decide whether to adhere with their decision to sell the business or to look forward for the potential growth in the upcoming days of profit by retaining the ownership of the hotel. On the other hand, they can implement their decision of selling business. What would be the most appropriate strategic decision to the co-owners to pursue? The writer, Stephen Grainger, has the affiliation with Edith Cowan University.
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