History of The Ritz-Carlton Essay

History of The Ritz-Carlton Essay

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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 & ...


... middle of paper ...


...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.

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