History of The Ritz-Carlton
In 1898, Cesar Ritz left his life as a shepherd in Switzerland and moved to Paris (Sucher & McManus, 2001). He worked in some of the finest hotels and restaurants in the city before opening up his own hotel (Sucher & McManus, 2001). A year later he opened the Carlton Hotel in London, which eventually became The Ritz-Carlton Hotel Company (Sucher & McManus, 2001).
Keeping with Mr. Ritz’s vision of excellent personalized service the Ritz-Carlton expanded to North America (Sucher & McManus, 2001). The only hotel to survive the Great Depression and two world wars was the Ritz-Carlton in Boston (Sucher & McManus, 2001). In 1983, the Atlantic-based Johnson Company bought the North American rights to the Ritz-Carlton name (Sucher & McManus, 2001). Between 1983 and 1997, the Johnson Company expanded the Ritz-Carlton domestically and internationally (Sucher & McManus, 2001).
“In 1997, Marriott International bought The Ritz-Carlton which operated as a wholly owned subsidiary (Sucher & McManus, 2001).” “By the end of 2000, The Ritz-Carlton was primarily a management company operating 38 hotels and resorts across the globe, with minority equity stakes in ten (10) properties and outright ownership of three (3) hotels (Sucher & McManus, 2001).” The Ritz-Carlton’s primary growth strategy was to obtain management contracts for new hotels and resorts around the world (Sucher & McManus, 2001).
Business Model
The Ritz-Carlton manages properties for hotel owners (Sucher & McManus, 2001). They charged management fees that were typically 3% of the gross revenues, supplementing their income with revenues from land rent, resort timesharing, franchise fees, management incentives, and profit sharing (Sucher & ...
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...rowth culture (Ulrich, Zenger & Smallwood, 1999). The Ritz-Culture does have that type of culture (Sucher & McManus, 2001). They look to the future, they hold individuals accountable but keep heroes visible, they ensure a high level of personal freedom and trust and encourage debate before consensus for example a no-fear environment/no retribution (Sucher & McManus, 2001). The Ritz also trains for growth and encourage their employees to advance in their careers (Sucher & McManus, 2001). President Schulz and the general manager, McBride most definitely lead by example and are both hands-on (Sucher & McManus, 2001).
Works Cited
Sucher, S.J., McManus, S.E. (2001). The Ritz-Carlton Hotel Company. Harvard Business School Publishing, Boston, MA.
Ulrich, D., Zenger, J., Smallwood, N. (1999). Results-Based Leadership. Harvard Business School Press, Boston, MA.
The hotel is continuously expanding and in year 2010 announced plans to add over 600 hotel properties by 2015 mostly from emerging markets like India, China and Southeast Asia (reuters.in) Marriottt thrived by operating utilizing many different brands, several of which incorporate the Marriottt name in them. However, one of its most famous brand names stands alone: The Ritz-Carlton, with luxury hotels and resorts around the world. In October 1993 Marriottt Corp. was divided into two companies: Host Marriottt Corporation, which owns real estate and operates airport concessions; and Marriottt International, the lodging business. By 2004 Marriottt had about 255,000 rooms, with revenues of more than US$10 billion. In 2004, Marriottt controlled 17 percent of all branded full-service hotel rooms in the United States. In fiscal year 2006, Marriottt International reported sales from continuing operations of US$12.2 billion.
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Mlls, D. Q. (2005). Leadership How to Lead, How to Live. Boston: Harvad Business School Press.
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Hotel uniform “personalization, on a basis of the hotel as a whole”, may be the future trend of the hotels which aim to have distinct market position and segmentation in a way of impressing the guests (Ariffin, Nameghi, & Soon, 2015, p. 780) with localized stay experience. Competition between multinational luxury hotels, especially in Hong Kong, a small but well-developed region with stable society, high public security and social prosperity where being a renowned and popular destination for business and leisure guests, is fierce. Most of the global hotel brands can be found in Hong Kong, The Ritz-Carlton, The Grand Hyatt, Shangri-la as well as JW Marriott, to name but a few. To be remarkable and impressive among the competitors, intangible uniqueness appears to be more prominent to thrill the guests (Osman, Hemmington, & Bowie, 2009).
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Hotel Ritz was an immediate success. A year later Ritz and Escoffier returned to London to complete the Carlton Hotel and open it on July 1, 1899. Once again Escoffier runs the kitchens, only this time he stays until 1920. Between 1899 and 1920 Escoffier publishes Le Guide Culinaire and Livre des Menus, organizes the kitchens on ocean liners and opens the Ritz-Carlton in New York. In 1920 Escoffier retired to Monte Carlo, where he lived out the rest of his years, despite a few trips to America.
History of Hilton hotel has been very interesting as it started as Mobley Hotel in year 1919 a small building. Because, when the company started it had no plans or ideas of expanding, the sole purpose was to serve as a place for the travelers to stay where they can comfortably enjoy a night or few and carry on towards their journey. After twenty-seven years of business and hard work, this small hotel went nationally in eleven states within United States, known as Hilton. Currently they have four thousand worldwide properties, either directly owned or franchised (including third party), in seventy-eight countries. Hilton even though allows franchises but there policies remain the same and direct Hilton officials do all the upper level management. The company name Hilton understands for Hosp...
-the company became known for its ability to enhance a property’s value by creating unique, one of a kind properties with a small ultra-luxury residential style that differentiated it from other chain-like luxury competitors. Competitors include 2 groups of luxury hotels: corporate branded (Ritz-Carlton and Four Season) and “collections” of individually branded unique hotels (Orient-Express).