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9B08M070

THE REGAL CARNATION HOTEL, GUAM

Jim Kayalar wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality.
Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written perm ission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of
Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca.
Copyright © 2008, Ivey Management Services

Version: (A) 2008-09-29

Steve McKenzie, a management consultant from New Jersey, looked out the window of a United Airlines
Boeing 747 at the fading shoreline of the island of Guam.
Their 2007 Easter vacation now over, McKenzie and his wife were returning home with somewhat fond memories — “Fond memories of the island,” McKenzie thought. The hotel they had stayed in was a different story. “Think overpromise and under-deliver,” he grumbled to himself.
In retrospect, as McKenzie thought more and more about his hotel stay, he contemplated writing to the hotel to share his insights with management. But would writing to them be of any use and was there anything new he could say that they didn‟t already know?
Guam Background

The island of Guam, an unincorporated territory of the United States, had a population of 175,000 and lay in the Philippine Sea. The island of Guam was three times the size of Washington, D.C., and boasted a turbulent history.1 The island was first put on the map by Portuguese adventurer Magellan, who was sailing under the Spanish flag, in

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