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Morgan Hotel Group Corporation Essay

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Updated: May 17th, 2019

Morgan Hotel Group Corporation offers hospitality services in major gateway cities in the United States, the United Kingdom and other countries in Europe. It acquires, redevelop, develop, operates, and own boutique hotels and resorts. According to Adner (2006), major competitors in hotel industry are Marriott and Hilton with over 2,200 units and 499 hotels worldwide respectively.

However there are other players who are direct competitors in Morgans Hotel Group in Boutique hotel industry. The major ones are Kimpton Group and Starwood’s W Chain (Adner, 2006).

Morgan Hotel Group Corporation has enhanced its market share in the last five years. In 2007, Morgan Hotel Group opened Mondrian Scottsdale urban resort in Arizona. In February 2007, the company further acquired the hard rock Hotel and Casino and its related assets in Las Vegas.

Kimpton Holdings which own Kimpton Groups of Hotels and Restaurants increased its value from $157 million in 2005 to $246 million in 2008. Starwood Capital on the other hand had a value of $900 million in 2007 with plans to acquire a group of hotels in Europe (Meridian Capital, 2008). This shows that Morgan Hotel Group and its competitors are working hard to enhance their market share through expansion.

Starwood competences are based on some pillars including structure, support and financial management. In its expansion program, Starwood has been renovating physically tired structures rather than engaging new construction.

Through this, Starwood has reaped significant value in cost saving. It has further benefited from large scale purchasing and maintenance contracts. Starwood has been focusing on transient business customers. These types of customers constitute over 70% of the total customer base. This serves them well during good market conditions.

One competence which Starwood is banking on is employee skills. It has a skillful workforce which ensures customer satisfaction. They use employee assessment services to ensure that skills acquired by employees are well utilized.

Kimpton on the other hand has a strong revenue management culture which has seen it go through success in the last couple of years. Kimpton’s target market is wide and non selective. The hotel’s policy support same sex relationships making it convenient to all customers (Pangborn, 2012).

Kimptons has several strengths. Company culture is inclusive and unique with four and five star accommodations in major cities. Its personal approach is what has brought most of its customers. Company image is another key strength which has maintained the company’s reputation.

It is modern, stylish, involved, indulgent and innovative. Key staff values make Kimpton Hotels a successful company. They have excellent service at all customer contact points.

Kimpton has a high level of operational efficiency in each property. It has a vast financial resource which has enabled it to purchase several properties. Finally Kimpton has promotional and motivational programs which are aimed at recognizing frequent guests (Pangborn, 2012).

Kimpton weaknesses include poor success to natural resources. This is because most of its properties are located in cities. Other weaknesses are poor experience in the hospitality industry and low market share (Pangborn, 2012).

Starwood has a fare share of its strengths too. It has a wide range of geographical diversification, strong brand portfolio, efficient use of resources and very strong growth prospects.

Starwood weaknesses include limited liquidity position, declining market share and weak financial performance.

The United Kingdom remains the main market for Starwood’s future plans. It has found out that boutique hotels industry is not developed in the United Kingdom and has been planning do major expansion program there. Major cities in the United Kingdom have no boutique hotels (Ruddick, 2012).

Kimpston has wide developments in urban market. It draws most of it customers from urban areas. Its future plans include development of more properties in urban areas of Virginia, Dallas and Los Angeles (Ehotelier.com, 2012).

Works Cited

Adner, Ron. Lifestyles of the Rich and Almost Famous: The Boutique Hotel Phenomenon in the United States. 2006. Print.

Ehotelier.com. Kimpton Hotels and restaurants to expand Hotel Palomar Brand in key Urban Markets. 16 May. 2011. Web.

Meridian Capital. “Hotel Investment: Challenging Times.” Research articles 8.8 (2008). Print.

Pangborn, Patti. Kimpton Hotels and Restaurants. Chicago: Columbia College Chicago, 2010. Print.

Ruddick, Peter. UK market remains key to Starwood’s development plans. 23 Mar. 2012. Web.

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