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An historic hotel faces the twin challenges of seasonal demand and a decline in its most important market. The hotel''s general manager is considering several expansion/renovation proposals to address these problems, each of which implies a different strategic focus. The decision is complicated by the fact that the hotel is located in world-renowned Banff National Park, an environmentally sensitive area administered by the Canadian government. Growing public concern over development in national parks implies that an overly ambitious expansion plan is likely to be rejected, yet this may be the hotel''s last chance to add significant capacity for the long-term. The case demonstrates the role of social and political forces in business decisions, while underscoring the interdependency of target market, positioning and marketing mix decisions.