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

2. 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

3. 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.

4. 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

5. 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

6. 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….

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

8. 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

9. 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: …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.

10. Asian Pacific Chains
New Otani, Japan… 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

11. 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”

12. 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.

13. Asian Hotel Chains: Regent International
Regent International 1970 Waikiki, Luxury in Hong Kong 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.