International Hotel Management: Expansion and Asia Jeffrey M. Wachtel, Ph. D.

Tourism 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 1991 1980’s Asian Region became the fastest growing region of the world

Lodging Industry By Nature is an International Industry No 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 International 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 Corporations Economies of Scale of Operation or Distribution in Advertising and Global Promotions: World-Wide Brand Recognition Central Reservation Systems Bulk Purchasing Specialized Knowledge of Design and Construction Operational Standardization

Rapid Growth of Transnational Hotels in Developing and Develop Countries Due To Several Factors World-wide growth in travel Emergence of new business centers in all parts of the world Significant advantages that international hotel corporations have over domestic corporations such as….

What Internatational Hotel Corporations Offer Professional Staffing Management Expertise Technical Advice First-Rate Training Programs Operating Standards and Systems

Challenges of The Globalized Lodging Industry Understanding the Standard and Prevailing Business Practices of the Host Country Knowing the Financial, Political, Labor, and Marketing Climates of Host Country Knowing 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 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 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: http://www.peninsula.com Peninsula…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 Awards The Peninsula Bangkok and The Peninsula Hong Kong are ranked as number one and two respectively as “Best Asian Hotel”

Asian Pacific Chains: Dusit Thani Dusit Thani…Thailand’s First and Largest world-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 International Regent 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.