dusitD2 Hotel Constance Pasadena
Yang Zhang, Stephen J.J. McGuire, Kern Kwong, Niyati Gosalia, Manika Tiwari, Neda Abousaidi
November 1, 2018
Strategy & General Management
boutique hotel, franchise, Marketing Mix, Industry Analysis, performance, performance metrics, brand equity
Journal of Case Studies
Singpoli CEO Kin Hui had acquired a choice property in Pasadena, California, on which he designed a brand new boutique hotel. Hui bought a dusitD2 franchise for a fraction of the cost of a Marriot or Hilton franchise. In 2018 the hotel boasted a 75% occupancy rate, a 4.5 rating on TripAvisor, and delighted customers, and was planning to double the number of rooms. The decision to buy a dusitD2 franchise appeared to have been very wise. Was it? The case provides an overview of the boutique niche in the hotel industry, a review of franchise agreements, and an explanation of the performance metrics used in the industry. It describes the hotel’s operations and the major marketing actions.
- Prepare an analysis of the hotel industry using Porter’s 5 forces and determine its attractiveness to an investor.
- Prepare an analysis of the hotel’s marketing mix using the 5Ps model. Draw conclusions from the analysis and recommend changes.
- Explain the advantages and disadvantages of a hotel franchise (to a property owner).
- Evaluate alternative franchises against a set of criteria, in the context of a hotel business opportunity.
- Demonstrate the ability to formulate logical choices to take advantage of a business opportunity and evaluate choices against decision criteria.