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Good Hotel: Doing Good, Doing Well?

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Good Hotel: Doing Good, Doing Well?

EIC
Strategic Management

Background Information
Joie de Vivre (JdV) is a San Francisco based hotel management company with 16 properties in the city. It was founded in 1987 by Chip Conley. He knows that his company comes up with unique hotels, with own personality. It has managed to grow to 36 boutique hotel properties. It became the second largest in 2010. JdV had combined two of their properties, Best Western Hotel Britton and Best Western Flamingo. Pam Janusz is the general manager for Good hotels. She received a message inquiring that rumors were true that the owner of Good Hotel and the two other properties that Janusz managed since November 2009.
Best Western Americania and Best Western Carriage Inn, had foreclosed on their holdings and sold the three properties, all of which were in JdV’s South of Market Street (SoMa) group to a new ownership group. She will be helping with the transition from one ownership to another, by evaluate Good Hotel performance along with helping staff to adjust. When it opened in November 2008 with 117 rooms, it opened as Good Hotel. Good Hotel is known as “hotel with a conscience”.
It has a positive approach, eco-friendly hotel, and it known its recycled materials. This hotel believes in doing good things for the environment. The new group planned to run the three hotels themselves and they would end the management with JdV if no problems arose with the sale at the end of May 2010.

The lodging industry was dominated by twelve leading hotel chains in the United States in 2009. Out of these twelve leading hotel chains, each one of them has features that accommodate to one consumer but not to another. One of the bigger hotels may have more properties with so many rooms with very little to offer but low revenue, but another hotel with less properties with almost the same

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