Successful Factors of Malmaison Hotel Chain

Topics: Management, Hospitality industry, Hotel Pages: 13 (3330 words) Published: November 5, 2008


1.0 Introduction

2.0 Aim
3.0 Objectives
4.0 Literature Review

5.0 Methodology

5.1 Desk Based Research

5.2 Field Based Research

5.3 Case Study

6.0 Ethical Issues

7.0 Task List

8.0 References


The research of this project is on the successful factors of Malmaison hotel chain that operates in current UK economic and market environment. I had worked in Malmaison hotel chain for 2 years in various departments taking up different roles, and over the two years, Malmaison hotel chain as an organization has demonstrated potential future market leader quality and showed excellent growth rate, good profitability and increased market share.

However, the hospitality industry as a whole, over the past a few years has been far from as optimistic as the Malmaison hotel chain has been. In the West Midlands, for example, it has been common for bars, restaurants, hotels to changed ownership, merged, be acquired, or go bankrupt. Indeed, bars and restaurants are three times more likely to go bankrupt than other businesses in the UK, according to Accountants UHY Hacker Young (2007), Their report revealed that 15.5% of businesses in the UK hospitality and catering sector (restaurants, pubs, and hotels) fail every year in comparison with just 5.2 % for the economy as a whole. UHY Hacker Young (2007) had investigated over 150,000 businesses that had failed in the past one year, and found out lots of anecdotal warnings about the high failure rate of restaurants in the first year to be true. In the hospitality industry the owners and managers were struggling with raising second round financing; market research and financial planning were not completed in a proper fashion; loyal customer base that protects against fast changing consumer tastes in bars and restaurants was not developed entirely, all of these have contributed to the high failure rate in the UK hospitality industry businesses. In such an economic and market environment, why Malmaison hotel chain has been a success becomes an interesting subject to study.

Malmaison hotel chain was founded in 1994 along with its sister hotel chain Hotel du vin which is also owned by the same company MWB, there are 21 chain hotels that are under the same ownership and there are 3 more hotels which are just opened by the end the 2007 and a further 4 more Malmaison hotels are due to open by the end of 2008. The company is also in negotiation for another 7 sites. Malmaison hotel chain is recognised as the UK's leading lifestyle hotel group that is top of the brands in a recent survey. According to Caterer & Hotelkeeper (2008), the survey of 2000 business and leisure travellers by BDRC, revealed that 53% of all travellers said they preferred to go to Malmaison as their first choice, 46% chose Hilton and 40% chose Marriott. Malmaison has over 1,500 bedrooms across the UK. The gross value of these hotel property assets in the Group's latest published accounts to 30th June 2007 was £553 million, not to mention the reputation which has gained the group a valuable brand image that worth millions. Over the years the group has won a number of awards, such as best hotel groups in the UK, also it won the best place to work for in the hospitality industry 5 years in a row.

It is believed that a key reason for Malmaison hotel chain’s success lies in its efficient and developed human resource management system, productivity and performance measurement and monitoring system, market research team work, strategic management, adaptability to changes and its financial control. These...
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