Internet Exercises
Internet Exercises
A.
Since the first quarter of 2011, hotel construction has been low as a result of the recession. The New Projects announcements made for new hotels were 211 with 28,641 total numbers of rooms. This number according to lodging-econometrics is low to offset the high level of postponements and cancellations and new hotel openings that were experienced at the time of economic crisis. The decline of new projects is still expected. This low rate of hotel construction development will see an increase of lodging demand. Also, with the stabilizing of the economy consumer spending and greater momentum will be attained at a faster rate.
Lodging Econometrics, a hotel consultancy firm indicates that about fifty new hotels will be opened by New York developers by the year 2013 and 68 more are predicted to open by 2014. Bruce Ford, the senior sales vice president of Lodging Econometrics say that many developers are on the opinion that it is better to open hotel in 2013 and not this year’s especially in New York (Lodging-econometrics.com, 2012).
B.
The economy of Hawaii has continued to grow as a result of tourism. The region is receiving an enormous rate of arrival from U.S East, Japan, and Canada among other regions of the world. In 2011, Hawaii managed to welcome about 7.3 million tourists. The increasing number of tourists has an impact on the Hawaiian hotel industry. One of the effects is on the rising cost of room. For the case of Hawaii, the room rate rose from $182 in 2009 to $238 in 2011. Investing in the hotel, spa, and Resort business is currently the in thing in Hawaii. New businesses that offer hospitality services are more likely to be opened by 2013 in order to cater for the increasing demand.
2. The similarities and differences
Starwood Hotels and resorts international are a leisure company and hotel with its headquarters in Stamford, CT.? It franchises, owns, and operates spas, residences, resorts and vacation property. Starwood preferred guests are partnership, member levels/ tiers, and Star pints. The hotel has a partnerships program with 32 airlines affiliates. The program allows guests to redeem flights points. The Host Hotels & Resort is a Fortune 500 and S&P 5000 company.
This is among the world largest real estate lodging investment trusts and the greatest owners of upper-upscale and luxury hotels. FelCor Lodging just like Host is one of the largest real estate investment trusts in America. It owns interests in more than eighty properties with an approximately 25, 000 rooms in Canada and numerous states in America. Some of the upscale hotels under Felcor Lodging operation include Hilton Brands, Renaissances, Westin, Sheraton, Holiday Inn and Embassy suites. It manages properties like Marriott International, Inter Continental Hotels a, Hilton Worldwide, Starwood Hotels and Resorts and Fairmont. The portfolio of Felcor is mainly concentrated in various metropolitan regions of Texas, Florida, and California.
B. Target market
Starwood has several luxury brands to fit the targeted market segment. The luxury services offered by Starwood targets affluent travelers. This is a market that is resilient during the economic downturns. Starwood has identified 150 markets as its targeted markets through persuading deals in and out of the United States. This is especially in regions where international developers are interested in coming up with a new brand. These countries are India, France, Caribbean, Mexico, Spain and China.
Host Hotels & Resort targets prime urban markets segments with more than 200 rooms. The company also focuses on the central business districts as its main targeted market. The portfolio composition of FelCor Lodging in terms of location, brand, and segment continues to evolve and also in the sale of non- strategic hotels and the acquisition of superior hotels. These are the main targeted markets of FelCor Lodging. FelCor Lodging further aims to invest in its main portfolio
Portfolio for each REIT
FelCor Lodging currently has a portfolio that consists mainly on reasserts based in more than thirty key markets and other upper-upscale hotels. They are operated under the well known brands, such as, Fairmont, Embassy Suites, Doubletree, Marriott, Hilton and Renaissance. Starwood portfolio consists of fourteen properties in Chile, Santiago, Washington Dc, Poland and Warsaw. The properties premium brands include The Luxury Collection, St. Regis, Sheraton and Westin. Host Hotels & Resort through its joint venture in its Singapore office has developed new opportunities and has acquired property in Vietnam, Japan, China, India, New Zealand and Australia. These properties comprise of a vast array of world-class operations and brands. They include Manchester Grand Hyatt of San Diego; seven properties located in New Zealand under Novotel, and ibis brands. There is the Helmsley Hotel of New York and the Westin Kierland Resort and Spa.
d. “Paper clip REIT
Starwood Hotels & Resorts is considered “paper clip REIT’, but differs from the standard of REIT making it referred to as the stapled REITs. The main goal of REITs is to provide small scale investors with a tax efficient tool in investing in real estates. REITs in general is not a corporate level tax, but is considered as a pass through entity. In cases where REITs buys an hotel then later leases it to a third-party in exchange of lease payment, as well as, a percentage of the gross revenues of the hotel, REIT will be able to capture economic advantages compared to its passive investment to offer rentals. It instead adopts active investments in running and managing the hotel. A significant position of profit is, however, captured by the operating company in operating the facility. In order to prevent profit leakage that is not retained by REIT, the pared -share or stapled REIT comes into existence. Starwood hotels and resort is one example of a pared-share REIT.
Wyndham Hotel and Choice Hotel Group positioning
Choice Hotels is the leading franchisor with over 6,200 locations for operations in the United States and thirty other regions in the world. It has well known brand names, such as, the Comfort Inn with over 3, 000 properties. It also includes Quality Inn and Comfort Suites that serve the midscale market segment. Other well known brands for Choice Hotel include Clarion Chain, Sleeping, and Roadway Inn budget hotels. Wyndham Hotel group has developed a reward program to give points of loyalty to its customers. This program positions Wyndham Hotel group to compete with other competitors by ensuring that customers are loyal to its services. The hotel has also developed a new room concept for eight of its super brands in the Middle East and Europe.
Wyndham Hotel group and Choice Hotels
Wyndham Hotel group is the finest and significant hospitality companies around the globe. The company operates in six different continents and is among the most preferred among operators, travelers, developers and hotel investors. It delivers high quality services and products including a wide variety of price ranges and accommodation choices. This is conducted through its portfolio that involves a world renowned properties and brands. These brands include Super 8, Days Inn, Ramada worldwide, Knights I, Baymon inn and suites and Travelodge among others. It is among the largest lodging franchisor and hospitality groups around the world with up to 7,090 hotels in sixty six countries. Choice Hotels international has limited franchisor information. It only shows that it is well known for its quality as seen in its portfolio brands.
3.
a. All three of the above hotel Rosewood hotel marketing strategy is based on brand formation through its branding strategy. The Ritz-Carlton uses the media form of marketing. It also has supreme positioning and diffraction of customer experience. Four Seasons Hotels and Resorts
Marketing strategy is based on exceptional promotions by the use of the internet. The best marketing strategy is found in Four Seasons Hotels and Resorts. This is because it relies on the internet making it to reach many people in various parts of the world. Cendant hotel like Four Seasons relies on the internet for marketing. Choice Hotel like Rosewood Hotel uses the brand strategy for marketing.
Reference
Lodging econometrics (2012) sales comp and sales and pricing trends. Retrieved from
http://www.lodgingeconometrics.com/site/vt.htm?WSCam=Lodging+Econometrics+Website&WSEvt=Valuation+Page
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