Yang Zhang, Stephen J.J. McGuire, Kern Kwong, Niyati Gosalia, Manika Tiwari, Neda Abousaidi
Journal of Case Studies
November 01, 2018
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.