International Hotel Management: International Hotel Management: Expansion and AsiaExpansion and Asia

Jeffrey M. Wachtel, Ph. D.

TourismTourism

World’s Largest Industry: 10% of World’s Gross Domestic Product

2005 Predictions by World Travel and Tourism Council

177% increase in Capital Investment over 1991 figures

348 million jobs…double 19911980’s Asian Region became the fastest

growing region of the world

Lodging Industry By Nature is an Lodging Industry By Nature is an International IndustryInternational IndustryNo question of expansion along with

expansion of global trade and global economy.

With expansion has come increased complexity of its ownership structure

Only 21% of the world’s hotels are larger than 100 rooms.

Market share of larger properties is 76% of hotel revenues.

Why? Competitive Advantage of Why? Competitive Advantage of International Hotel CompaniesInternational Hotel Companies

Ability to Establish Global Marketing and Purchasing Networks

Expertise in Satisfying the Demands of Present and Potential Customers Specifically with regard to Product Quality

Strong Brand Image due to Product Quality

More Effective and Efficient Operations

Advantages of International Hotel Advantages of International Hotel CorporationsCorporationsEconomies of Scale of Operation or

Distribution inAdvertising and Global Promotions:

World-Wide Brand RecognitionCentral Reservation SystemsBulk PurchasingSpecialized Knowledge of Design and

ConstructionOperational Standardization

Rapid Growth of Transnational Rapid Growth of Transnational Hotels in Developing and Develop Hotels in Developing and Develop Countries Due To Several FactorsCountries Due To Several FactorsWorld-wide growth in travelEmergence of new business centers in all

parts of the worldSignificant advantages that international

hotel corporations have over domestic corporations such as….

What Internatational Hotel What Internatational Hotel Corporations OfferCorporations OfferProfessional StaffingManagement ExpertiseTechnical AdviceFirst-Rate Training ProgramsOperating Standards and Systems

Challenges of The Globalized Challenges of The Globalized Lodging IndustryLodging IndustryUnderstanding the Standard and Prevailing

Business Practices of the Host CountryKnowing the Financial, Political, Labor,

and Marketing Climates of Host CountryKnowing Language, Customs, Values and

General Work and Social Behaviors is a Major Challenge & Learning Opportunity

Hotel Managers Developing into Corporate Citizens of the World

Expansion in The Asia-Pacific Expansion in The Asia-Pacific Region Region  Demand Came Late to the Region…Now

Highest Growth Rate in the World Initially Brand Name such as Hilton

International, Hyatt, Sheraton, Inter-Continental, Holiday Inns

China as Example: 1984-88…Doubled Hotel Rooms

Mixed Results: Latecomers met Saturated Markets. Growth now anticipated. New Resort Destinations. Luxury properties more feasible due to Higher Gross Operating Profits.

Asian Pacific ChainsAsian Pacific Chains

New Otani, Japan…1964 1000 Room Hotel…Intl Expansion: 1976 Hawaii, 1977 LA

Nikko, Japan…Originally JAL for Japanese Travelers in Gateway Cities

Mandarin Oriental…HK 1926, 1974 Expansion Asia…World Gateway Cities

Peninsula: Peninsula: http://www.peninsula.comhttp://www.peninsula.comPeninsula…1860 HK opened 1926 The Peninsula Hotels operates seven award-winning

hotels in Hong Kong, New York, Chicago, Beverly Hills, Bangkok, Beijing and Manila, with The Peninsula Tokyo opening in 2007.

Conde Nast Traveler (USA)Readers’ Choice AwardsThe Peninsula Bangkok and The Peninsula Hong Kong are ranked as number one and two respectively as “Best Asian Hotel”

Asian Pacific Chains: Dusit ThaniAsian Pacific Chains: Dusit Thani

Dusit Thani…Thailand’s First and Largestworld-class standards of comfort and

convenience, and a professional quality of service that blend efficiency with the warmth of traditional Thailand hospitality in a contemporary touch. Dusit Group has luxury hotels and resorts in all Thailand's major destinations such as Bangkok, Cha-Am/ Hua Hin, Pattaya, Chiang Mai, Chiang Rai, Khon Kaen, Korat, Ranong, Phuket and Narathiwat for you to choose from. Overseas properties are in Dubai, Indonesia, the Philippines and Myanmar.

Asian Hotel Chains: Regent Asian Hotel Chains: Regent InternationalInternationalRegent International 1970 Waikiki,

Luxury in Hong Kong 1980. Now Four Seasons

BANGKOK, Thailand - December 8, 2004 - Carlson Hotels Asia Pacific, regional headquarters of Minneapolis-based Carlson Hotels Worldwide, today announced plans to develop a fourth Regent hotel for the region. Maintaining the momentum of their aggressive growth strategy, the company confirmed The Regent Bangkok Hotel & Residences is scheduled to open mid 2007.

Carlson Hotels Asia Pacific will manage the hotel.