Four Season Hotel Analysis

4290 Words Nov 11th, 2012 18 Pages
Amy Huboi
TIP-Four Seasons Resorts and Hotels

The company that I have chosen for the theory in practice report is the Four Seasons Resorts and Hotels. The company is dually listed on the New York Stock Exchange under the ticker symbol FS and it is listed on the Toronto Stock Exchange under the ticker symbol FSH. The company originated in Toronto, Canada over forty years ago when owner and CEO, Isadore Sharp, opened up the first Four Seasons hotel. His concept was to create a chain of luxury hotels that offered excellence in service and amenities. The hotel currently has sixty-four properties in twenty-nine countries. The majority of properties are held under the Four Seasons and Regent hotel brands. The company has also
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The industry’s incumbents have established relationships and experience, which enables them to achieve significant cost savings. In addition to brand loyalty and costs the new entrants must also contend with the probability of retaliation from the established hotels.

Rivalry Among Established Companies: High

The luxury hospitality industry is fairly concentrated. There are approximately 10 key competitors of the Four Seasons. The hotel companies are: Accor, Fairmont Hotels, Hilton, Hyatt, Millennium & Copthorne Hotels, Orient-Express Hotels, Ritz-Carlton, Starwood Hotels and Resorts, Thistle Hotels and Wyndam[7]. The level of diversity among the companies is medium to low because the majority of the companies provide similar types of high quality service. The high cost of building, furnishing and servicing the hotels in the industry create high fixed costs and high exit barriers. In addition to monetary costs the companies also have strong relationships and bonds with employees, investors and guests, which are difficult (financially and emotionally) to divest. As a result of the economic downturn in the last few years the hotel industry has experienced slow or even stagnant growth. There were several hotel companies that held back development projects and laid off employees in order to avoid a financial loss. Currently, there has been a steadily increasing demand for luxury hotels in the lodging industry. The Four Seasons,

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