A Comprehensive Analysis of Hyatt Hotels Corporation and How It Relates to Competition Within the Hotel Industry

According to the American Hotel and Lodging Association, in the year 1900, there were fewer than 10,000 hotels in the US which provided 750,000 to 850,000 rooms. The 2004 figures show that there are 47, 584 hotel properties in the US with 15 rooms or more. There are currently 4,415,696 guestrooms available. The industry had sales of $105.3 billion in 2003, which places average revenue per room at $50.42 with an average occupancy rate

Nations Hotel Corporation is one of the reputed USA based hotel company, with an international presence in 15 countries worldwide. Hospitality industries are quiet competitive in nature and today’s success rule of hospitality includes knowledge, customer satisfaction and operational efficiency which provides pleasure of stay and departure to their guests. Any addition or subtraction in these components can increase or decrease the rating of any organization. Nations Hotel with 98% brand awareness and 72% as customer satisfaction ratio were still far from the race of preferred choice amongst the customers. Hence there, arose a need to

Report projects population growth as well as retail sales growth, along with a demand for additional hotels. Such growth will increase demand for other services and products. Also, with emphasis on room types, outdoor or indoor rooms, overlooking the beach.

The hotel chain, Astor Lodge and Suites, Inc., operates 250 properties in 10 western and Rocky Mountain states. The company’s customer base primarily comprises business travelers. In addition, the locations of the properties surround airports, large regional shopping centers, and major highways close to suburban industrial sites as well as office complexes. Projections of 2005 fiscal year forecast a fifth consecutive year of a gross loss for the firm. The estimates include an anticipated $422.6 million in company lodging revenues but a net loss of $15.7 million for 2005. As a result, Joseph James, president and CEO of Astor Lodge and Suites, Inc., initiated a challenging goal for executive management to devise a strategy achieving net profits in two years and sustaining positive growth in the future.

Another barrier for entry is the high amount of capital needed to come into the industry. In the 2013/2014 Hotel Development Cost Survey they reported that the average cost of a economy style hotel room costs $77,400, compared to a luxury hotel average around $641,00. (See table 1) Due to the high costs of quality rooms in a hotel, there is a lot of capital required to enter into the hotel industry. A lot of money is required for property, employees, and advertising to gain entrance into the industry, which provide a huge barrier of entry into the hotel industry.

Hilton Hotels is one of the biggest players in the US lodging industry. It contributes to about 9% of the total rooms in US lodging market. It has presence in over 78 countries with more than 2500 hotels. Lodging industry is highly capital intensive industry, so to reduce capital expenditure Hilton Hotels opted for self-owned Hotels as well as franchising model with the real estate owners. One of the key features of lodging industry is low switching costs for customers. There is very little margin to differentiate from the major competitors in the industry which include Marriott international, IHG, Accor etc.

Amber Inn & Suites, Inc. is a 250 property hotel chain with locations in 10 western and Rocky Mountain States. As a special assistant to the corporation the goal is to prepare a comprehensive analysis with the possibility of establishing a solid base for future growth. (Kerin and Peterson, 2010). This case study will provide a summary and analysis of Amber Inn & Suites, Inc. options and an examination into the company’s strengths, weaknesses, threats and opportunities.

Globally the tourism and hospitality industry is undergoing and evolving the radical changes. From the past experiences are now advancing at greater pace through faster development of skills and knowledge developed to create and adapt innovation in several ways. Therefore, it is important to have greater understanding of current issues and knowledge in order to cope with future challenges effectively.

The main objective of the company is not only to attract but also to retain staff who are interested to work in the hotel business for the five-star level of high service, taking into account the wishes of clients, and which offers an innovative, dynamic environment and reflects the culture of the local country. To achieve this, Hyatt strives to be a company listening to well-informed and concerned people. Hyatt provides plenty of opportunities at all levels for their employees, which are accompanied by numerous development

To remain profitable, hotels must operate with around 65-70% capacity . Due to seasonality, political and economic events, some hotels are finding it difficult to maintain profitable occupancy levels and have started to provide services along multiple levels within the industry's

The above graph shows the competitive market between China Lodging Group (HTHT) versus Hotels and Motels market which includes lodging industry at large. From the analysis of the data above, the current situation in China lodging industry is still dominated by five-star hotels.

Having just analyzed the general environment surrounding the upscale and luxury hotel industry, the next step in determining whether such an industry is attractive or not is to conduct an in depth external analysis of the threats and opportunities facing the industry. Thanks to the help of Michael Porter and his Five Forces Model, this analysis is not nearly as difficult or as time consuming as it may seem. According to Porter, there are five forces which determine the competitive intensity and therefore attractiveness of a market. These forces include the threat of entry, the threat of rivalry, the threat of substitutes, the threat of buyers,

The CCRC projects set an example of the industry and displayed innovation, social responsibly, and leadership. Other departments in which Hyatt emphasizes leadership are human resources and the management style that is practices on a global scare. Hyatt is proud to encourage, coach, and nurture employees via empowerment. “...Future leaders need to listen, have clarity of purpose, and be authentic”, Mark Hoplamazian, the CEO of Hyatt Hotels, tells Wharton Magazine, “One key essential element in being in a position to lead is being a great listener, and applying yourself to it in a very sincere way” (Wharton, 2012).

Marriott is a multi brand company with a Global Portfolio that providing lodging that fit within many market segments. This report will discuss briefly Marriott’s Portfolio of hotels, what they do, briefly examine a number of their key marketing strategies and examine how they are implemented, measured and ask the question does this make them market leaders?

The organization has explicitly kept this advantageous environment over other organizations by improving its service capacity. Additionally, the organization ensures that it stays ahead of its rivals by engaging in research and development that focuses on luxury products and markets analysis. The Ritz-Carlton hotel uses data from its research to predict the future of the industry; therefore able to dictate what and how the market will trend in the foreseeable future. Another factor that keeps the organization’s advantage over its rivals is that while rivals tend to become a hotel brand in the industry, Ritz-Carlton has rather position itself to be a leader and lifestyle brand that constantly develop new properties and ensure that customers live the culture of the hotel. The final factor that has kept the advantage of the organization intact is the culture of trust that exists between the management and employees. The leadership of the hotel lives and communicates the organization’s value to its employees who in turn satisfy customers in a way that they often anticipate a return visit. These are some of the reasons that the Ritz-Carlton hotel continued advantageous environment over its rivals has persisted in the hotel and resort industry (Reiss,