Metropolitan is among the capitals most popular fashionable phenomenon- a new and fresh expression that strips back unneeded facets of a usual English hotel to make something sophisticated, cool and friendly.

This exciting and glamourous hotel is located near to Park Lane – opposite Green Park and Hyde Park – blending high criterion service with a modern attack. With its interior design and sophisticated culinary art, it is for particular invitees who try to be portion of the energy which describes London ‘s distinctively stimulating character.

In 1997 glamourous, fashionable, and epicurean Metropolitan Hotel was opened in Central London. Accommodation consists of 150 sleeping rooms and suits, including Met Suit, Deluxe Park Suite, Superior Park Suite, 8 Park suites, 10 City Studio Rooms, 9 Park Studio Rooms, 41 Metropolitan suites, 51 Deluxe City Rooms, 28 City Rooms.

Met Suite is one of the most different and alone topographic points to remain in London. The Suite is on the last floor of the edifice with separate life room with a couch for relaxation and armchair every bit good as a dining tabular array for four together with king-sized bed with walk in closet. Floor-to-ceiling Windowss present peaceable position of Hyde Park. In add-on to all of these installations Deluxe Park Suite has an extra invitee cloakroom with a possibility to add an excess sleeping room on petition of the invitee. Superior Park Suite has superb positions over Hyde Park and it can be enjoyed from this broad suite on the 9th floor of the hotel. The separate sleeping room and life room are designed in the hotel ‘s cool, modern manner. Park Suites is really bright infinite offers stupefying positions of Hyde Park through full-length Windowss from both the sleeping room and sitting country. These suites have two widescreen Televisions and two mini bars and most significantly a little balcony which overlooks the Park.

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The most of import difference of these suites from any other hotel is their size. The spurious and bright suites overlooking fantastic Parks is non normally what a invitee can anticipate from hotels located in nearby locations.

Hotel has a modern-day east-west aesthetic, vernal staff in a popular and lively members ‘ saloon. “ Met Bar ” is merely for invitees and members and is considered to be among the capital ‘s most dynamic dark clip rendezvous ‘ . It besides offers healthy and organic nutrient such as canapes and salads until flushing every twenty-four hours. This little but really popular saloon has insides characteristic designed by a good known British creative person Jonathan Huxley. Staff at the saloon, called ‘mycologists ‘ , create 26 assortments of Martinis. Music is provided by international DJs.

Furthermore hotel has eating house regarded as epicure finishs in their ain right. Nobu eating house located on the land floor of the hotel represent a new and advanced combination of Nipponese nutrient with the result of New Style Nipponese nutrient.

Hotel is a topographic point where things go on, pulling originative travelers who look for the high criterion life style every bit good as the peace and relaxation that comes together with clear modern-day design. This alone promise to understand and see two different planets – the energy of an exciting hotel, andA composure escape within the Metropolitan ‘s soothing confines – is what describes the life in Metropolitan.

To heighten this comfort and peace Metropolitan offers immense Shambala Urban Escape designed for visitants looking for a better wellness through yoga and massage interventions formulated with organic oils and herbs personalized harmonizing to single demands. It besides offers to the full equipped gym with separate for male and female steam suites.

Furthermore its locales can be used for different events such as parties, private tiffins. Press yearss, merger shows and interviews. This glamourous events venue can suit up to 80 invitees.

History of Halkin Hotel

Halkin Hotel is described as a topographic point of safety and discretion with perfect location and fantastic positions. Here invitees can see and experience the kernel of peaceable glamor, self-respect of service and fashionable insides. Unique attack of the Halkin hotel is hidden behind the timeless and inspire with modern touches such as Thai eating house.

The Halkin foremost was opened in 1991 and its purpose was to present sturdy standards of service and attack. Harmonizing to the critical statistics for 2010 the Halkin is internationally considered as London ‘s most elegant, sole and typical hotel. The theory of the Halkin ‘s design was the ‘Expansion of Space ‘ , an feeling which can be identified throughout The Halkin. It was designed by a really popular Italian interior decorator to make manner with peace in head.

Besides its cardinal location, Halkin is within 5 proceedingss walking distance from Hyde Park. It has 41 stunning and stylish suites which include ; 8 King Double Rooms, 6 King Superiour Rooms, 10 deluxe Rooms, 6 Studio Suites, 7 Belgavia Suites and 4 Halkin Suites. King dual suites offer unlittered smart together with a broad suites and desk infinite with immense bathroom. In add-on to all of these installations King Superior Rooms offer a walk in separate shower together with the bath. For the invitees who are looking for more infinite and sitting country deluxe suites would be perfect pick. Belgravia Suites present Italian elegance in line with simpleness. Halkin Suites gives a alone feeling of comfort and safety with a separate sitting country nd dining tabular array for six. The big conservatory manner Windowss fill the suites with sunlight and visible radiation. Each Halkin suite is connected to extra sleeping room which is available on petition of the invitee.

Nahm – the eating house located on the land floor of the hotel serves traditional but imaginative Thai nutrient and it is he foremost restaurant which was awarded with a Michelin Star in whole Europe.

Besides there is a little gym unfastened every twenty-four hours in the eventides but on petition of the guest, it can be used at any clip. To add a freshness to its service Halkin offers reflexology, reiki and massage interventions in room.

Analysis

Metropolitan Hotel has unique characteristics which were developed to construct a basis and indispensable parts of its scheme. The scheme of this 5 star hotel is to pull corporate, concern, leasure travallers. While on the other manus little and non that much popular Halkin hotel ‘s scheme is to pull celebrated people who travel to London but would wish to be off from media and public. Here in Halkin hotel design, atmosphere and service is specialy developed for the peace seeking invitees who would non wish to be around of travelers or crowed topographic point. The chief hotel of the Halkin non to pull different people, Halkin is specifically targeted to a really narrow type of invitees.

Target range of Metropolitan and Halkin Hotel

Advantages of Metropolitan and Halkin by cost or merchandise peculiarity

Low cost

Merchandise singularity

Broad mark ( industry broad )

Cost leading scheme

Differentiation scheme

Metropolitan Hotel

Narrow mark ( market cleavage )

The intercrossed scheme ( Focus Strategy by cost leading )

Focus scheme by distinction

Halkin Hotel

Beginning: Johnson Gerry, Scholes Kevan ( 2006 ) , “ Researching corporate scheme ” , pp242-250. Burnes Bernard ( 2004 ) , “ Pull offing alteration ” , pp242-243.

As it is shown on image 1 Metropolitan has a wide mark with merchandise distinction. By using this scheme Metropolitan attempts to accomplish industry broad acknowledgment of different and superior merchandises and services comparing to its rivals such as Halkin. This besides makes it more competitory and different among its other rivals. Most Cardinal London hotels are concatenation hotels such as Hilton, Four seasons and Intercontinental and largely they compete with monetary value leading every bit good as distinction, but on the contrary Metropolitan is well more expensive and is targeted to distinguish itself from others with its manner. As Mr Orchart says Metropolitan is a fashionable hotel, this is the chief facet which makes it different from other hotels. Metropolitan is based on a belief that design comes and goes but manner corsets. By offering better service and larger suites and paying attending to every individual inside informations of client demands Metropolitan was able to procure client trueness.

As shown on image 1, Halkin hotel has a focal point scheme. The proprietor of the Halkin hotel has a really good established manner concern. She ( Mrs Ong ) used to go to London rather frequently but was non truly satisfied with London ‘s best hotels. She was able to see the spread between market demand and market offer. Halkin ‘s scheme is concerned with concentrating upon certain type of invitees. As Michael Porter ( Burnes 2004 ) argues that by taking focal point scheme, it becomes possible for a company to rule its chosen country. As it is described in many books focused distinction scheme, in our instance, provides high perceived service benefits warranting a significant monetary value premium, normally to a niche market.

Furthermore in order to better comparison and contrast these two companies this paper will analyse Porter ‘s five forces model. Naturally within the impression of scheme there is an issue of fight and in concern this is about deriving advantage over rivals. Normally directors excessively narrow position as the beginnings of competition by concentrating their attending on direct competitory challengers. But this accordingly lead them to lose the other factors in the environment which influence their fight. Porter ‘s five forces model can place the attraction and beginnings of competition in different industries ( Burgelman 2004 ) . These five forces are non independent, understanding the connexion between competitory forces and the cardinal drivers is highly of import.

Dickering power of purchasers

High

Competitive competition

is high

Dickering power of providers

Low

Entry barriers

High

Metropolitan and Halkin Hotels

Dickering power of providers is low because both hotels do non relay on travel bureaus

Metropolitan & A ; Halkin Hotels

Capital intensive, location particular, hard & A ; expensive to happen a location in cardinal London. Customers are loyal and really hard to make by other new entrants.=

Metropolitan and Halkin Hotels

Competition among hotels is really high, even though both hotels are non viing for monetary value leading but better offer of distinction can be offered by other hotels.

Menace of replacements

High

Metropolitan & A ; Halkin Hotels

Dickering power of purchasers is high because of high competition and industry depends on their invitees.

If Generic Strategies and Industry forces are analyzed together it can give us a really clear position of their relationship:

Porter ‘s five forces

Metropolitan and Halkin

Porter ‘s Generic Strategies

Differentiation scheme of

Metropolitan

Focus scheme of

Halkin

Rivalry among rivals

Brand and manner trueness keeps clients off from challengers

Rivals can non downsize the figure of suites and become like Halkin. They can non run into focussed client demands.

Menaces of permutation

Guest ‘s became attached to distinguishing characteristics which reduces menace of replacements

Core Competences of Halkin protects against replacements

Supplier power

Targeting straight clients without jobber and travel bureaus increases clients

Gross saless and selling monetary values addition can easy be passed to invitees

Buyer power

Buyers largely are less effected by little monetary value difference because of few similar hotels

Regular invitees are trade name loyal and plus merely few options are available

Entry barriers

Guests loyalty to Met and high competition discourages possible entrants

Concentrating and aiming to a niche market acts as a barrier to entry

In order to guarantee that all the parts of the company work in harmoniousness, it is of import to implement McKinsey ‘s 7S model. This model can assist us to place how good these two hotels are positioned to accomplish their aims. As it was mentioned above this theoretical account was developed by Tom Peters and Robert waterman, the cardinal subject of the model is that in order for a company to be successful there are basic 7 internal features of an organisation that needs to be supported and combined together ( Fleisher & A ; Bensoussan ( 2007 ) ) . This theoretical account is used to see what is losing, what is incorrect and what needs to be aligned in the organisation.

Metropolitan Hotel

Halkin

Hotel

Scheme

Be a fashionable hotel.

Attract leisure, concern and corporate invitees.

Be a really alone by its attack to guest.

Be foremost among its rivals with its quality

To be unpublicized.

To be known for its peaceableness, comfort and high service

Have a customized attack to each invitee.

Be foremost in technological alterations

Structure

Efficient construction and relatively variable

Corporate organisation is high with 4 degrees of direction above general direction.

Efficient usage of e-mailing on blackberry phones,

Mobile rivers supplied by company to all section help the control and direction

Difficult structured

Corporate organisation is really high with 5 to 6 degrees of direction above general direction.

Efficient usage of orbiter and nomadic phones by all members of the company simplify the construction

System

General Manager is a accountant of activities, helper director do non hold a power to cover GM.

Uses a big sum of IT.

Different systems are used in each section. Opera is a system for each section to entree necessary information.

GM carries duties for activities of helper director.

Assistant directors have more power compared to Met hotel.

Procedures are based on engineering and IT, enormously dependent on IT.

Internal controls for the hotel are determined by the director based on IT systems.

Manner

Possibly direction manner of the company is paternalistic

Motivation to employees is done largely by wagess

Work responsibilities are clear assigned on contract

Employees are non allowed to do independent determinations based on enterprise

Basic direction manner is bossy

Management motivates through wagess and rises

Work responsibilities are stated on contract of each employee, reviewed invariably by direction.

Employees invariably have departmental meetings to hear new sentiments.

Staff

Company has a general director, an helper director and by and large 2.6 staff per invitee which is higher than what is required for 5 start hotels.

Benefits include 28 yearss plus holiday/bank holiday wage, free nutrient and drink during the displacement, 1 twenty-four hours experience of hotel, household and friend price reduction stay.

Maternity leave wage.

Raises are based on departmental budget allowance, really rare rises occur.

Low rise of place in hotel

Hotel has a general director, two helper directors and 3.2 staff per invitee which is much higher than a demand of 5 star hotels.

Benefits include 28 yearss and holiday twenty-four hours wages, ill twenty-four hours pay, free food/drink on responsibility, a twenty-four hours of experience of hotel, household corsets at a discounted rate.

Maternity leave wage

Raises are based on public presentation quarterly per twelvemonth

Rice of place if relatively high

Shared value

Be passionate with employees and invitees

Be originative and fashionable

Provide great work environment

Acknowledge the importance of part for profitableness

Dainty and esteem each other with self-respect

Contribute to the environment

Aid in decrease of poverty/ charity and sustainability ‘s importance

Pays a immense attending to material and has a strong civilization

Company believes that cultural diverseness is a cardinal drivers of concern

Provide great work environment

Respect each other

Embrace diverseness

Use the highest quality merchandises to supply the best merchandise and service

Contribute to the environment

Make all the guest satisfied with service

Skills

Most of import accomplishments are “ people accomplishments ” and each departmental based accomplishments

Vital accomplishment demand is politeness and smile, full cognition of occupation.

On mean 2 to 3 month preparation before full start of new staff.

Retraining is based on meetings and departmental preparations.

Critical accomplishments is smile, cognition of different linguistic communication, first-class cognition of occupation

On mean 3 to 6 month preparation before full trust on staff

Retraining based on one-to-one discourse

Regular meetings for new thoughts and betterments

Strategic Group mapping

In the following measure of analyzing, comparing and contrasting Halkin against Metropolitan hotel is to analyze their market place. One technique for uncovering the competitory places of these two companies is strategic group function. This analytical tool is utile for comparing the market places of each house individually.

Summarizing up appendix 1 and 2 we can pull a Strategic Group Map which will assist us to analyse the companies:

In general as we can see from the Strategic group mapping analyses Metropolitan ‘s place is non truly favorable. Relatively it dominates much smaller market and earns much less gross per available room than its rivals. This analysis reassures us that a company needs to take a measure frontward to pull more clients, in earlier old ages occupancy of hotel was much higher. Especially it can be seen in the first 3 old ages after the gap of the hotel. This is due to the distinction and invention which at that clip other hotels did non hold. But today, most hotels who try to pull the same type of clients already have and offer even more than what Metropolitan is offering right now. On the other manus Halkin is has a high rate of tenancy and most significantly gross per available room is rather high as good.

Plague

Metropolitan and Halkin hotels are viing in the cordial reception industry, it has been dramatically affected by the terrorist act onslaughts, political state of affairs of the state, visa ordinances, exchange rate and many more factors. The most obvious consequence of economic system can be seen in 2009, recognition crunch and universe economic crisis led many concern suffer or even worse forced to shut down.

By utilizing PEST analysis both hotels can be evaluated sing for chief influential factors: Political, Economical, Social and Technological. And these cardinal drivers for alteration are likely to impact dramatically on the success or failure of the companies ( Gerry et al, 2006 ) .

Political

Political state of affairs of UK has been stable, but because of the recognition crunch which appeared to be lay waste toing for all the concerns hotels have been dramatically effected. New revenue enhancement policies every bit good as new ordinances of visas had been done since the beginning of 2009. As it can be seen from appendix 2 Metropolitan has suffered a loss. The entire gross was rather close to the budget but income after revenue enhancement went to subtractions. Of class there are twosome of grounds for that, foremost on the last one-fourth of the twelvemonth Metropolitan started the redevelopment of bathrooms in all suites and flats. This unluckily led to the addition in cost and most significantly decreased the handiness of the suites. This accordingly resulted in diminution of gross every bit good as income. But this a nessasery redevelopment which should ensue in addition of income over the following few old ages.

Furthermore visa ordinances have been changed for travelers and concern visitants. It is tougher than earlier to acquire visa and it requires more clip.

Halkin hotel was no less affected by the political facet of UK. Obviously it can be noticed that there is little alteration in RevPAR and income after revenue enhancement that 2008 and a old old ages but comparing to Metropolitan hotel new policies and ordinances has less affect.

Economic

2009 was peculiarly hard for cordial reception, tourism/travel industries. Global economic downswing has changed people ‘s purchasing behavior. UK currency exchange rate fell to the point where Americans visited UK for shopping. This of cource boosted the RevPAR in some hotels, particularly large concatenation hotels and 3 to 4 star hotels were able to stabilise their busineses. RevPAR was rather high in some hotels like Hilton Park Lane and Intercontinental hotels, but the addition in cost of goods was non passed to clients because of their monetary value sensitiveness. Some invitees who ne’er paid attending to the monetary value difference before, today they do pay attending to this. Because Metropolitan is more or less relay on Corporate invitees, it was once more affected more than Halkin. To cut costs most concerns decreased the meetings, or moved to a different hotel. For illustration being a five star hotel Intercontinental which is located following to Metropolitan has much more suites and is able to offer in a lower rate. Harmonizing to the statistics with better corporate rates in offer Intercontinental was able to pull more clients than old old ages.

Social

Social factors are every bit of import for both hotels. Metropolitan has a good established ongoing charity undertakings on a regular basis held by human resource section.

On the other manus Halkin besides pays attending to societal jobs by supplying AIDSs to non net income organisations. Halkin peculiarly pays attending to adult females ‘s instruction and provides fiscal aid for developing states.

Environmental

Environmental factors have been a concern for any concern in the universe. Traveling green, pollution free and many more facets of environmental issues have been implemented by a huge bulk of concerns. As a feedback to this Metropolitan and Halkin besides implemental a figure of alterations, such as:

Alternatively of utilizing plastic bags for forenoon complimentary newspapers, reclaimable and reclaimable bags are used

Alternatively of altering towels every twenty-four hours, invitees are asked beforehand if they want their bed and towels to be changed daily

Greener recycling

Shampoos and soaps are recycled

Car on and off visible radiations

These sort of greener environment caring companies of class are deriving at least some competitory advantage every bit good. Some people do care about societal and environmental issue more than a monetary value of the topographic point where they stay.

Analysis

Overall from the analysis which have been done above we can sum up that Metropolitan and Halkin were able to prolong in such a enormously competitory environment. As a affair of fact Metropolitan has been more affected by recognition crunch every bit good as competitory challenges. Furthermore larger concatenation hotels such as Hilton and focused discriminators like Halkin were able to dispute Metropolitan. These peculiar issues placed both hotels under more force per unit area to run into planetary criterions.

Mentions

Aaker D. , ( 2005 ) , “ Strategic Marketing Management ” , 7th ed. , John Wiley & A ; Sons, Inc.

Besako D. , Dranove D. , ( 2004 ) , “ Economies of scheme ” , 3rd ed. , FT Prentice Hall.

Burgelman R. , Christensen C. , Wheelwright S. , 2004, “ Strategic direction of engineering and invention ” , US: McGrawHill

Fleisher C, Bensoussan B ( 2007 ) , “ Business and Competitive Analysis: Effective Application of New and Authoritative Methods ” Publisher: Fiscal Times/ Prentice Hall

Kevan S, Richard W, ( 2006 ) , “ Researching Corporate Strategy ” , texts and instances. 7th erectile dysfunction. Spain: FT Prentice Hall.

Lewis, Morkel, Hubbard, Davenport, Stockport ( 1999 ) , “ Strategic Management: constructs, Context and Cases ” , Publisher: Prentice Hall Australia Pty Ltd.

Mintzberg H. , Ahlstrand P, Lampel J. , 1998, “ Strategy Safari: A Guided Tour Through the Wilds of Strategic Management ” Financial Times/ Prentice Hall.

Mintzberg H. , Brian J. , 1996, “ The scheme procedure ” , Concept, contexts, instances. 3rd ed. , Prince Hall Inc.

Phillip Frhr, Von Bodman, Rodolfo Carlos, 20/11/2003, “ Hilton Hotels Corporation- A instance survey ” .

Porter M. ( 2004 ) , “ Competitive scheme ” Publisher: Free imperativeness

Thomson A, Strickland A ( 2003 ) , “ Strategic Management: constructs and instances ” , Publisher: McGraw-Hill Irwin

Employee Handbook, 2009, “ Metropolitan Hotel employee enchiridion ” .

Employee Handbook, 2009, “ Halkin Hotel employee enchiridion ” .

Halkin Hotel Vital statistics, 2010, “ Understanding Halkin ‘s fiscal place ” .

Market portion statistics 2010, “ Halkin ‘s market portion statistics for 2009 ” .

Market portion statistics 2010, “ Metropolitan ‘s market portion statistics for 2009 ” .

Metropolitan Hotel Vital statistics, 2010, “ Understanding Metropolitan ‘s fiscal place ” .

Net income and Loss statement of Halkin Hotel for 2009.

Net income and Loss statement of Metropolitan Hotel for 2009.

Appendix ( 1 )

Market SHARE STATISTICS

February @ 17.02.10

A

A

A

A

A

A

A

A

A

A

A

A

A

A

THE METROPOLITAN

RevPAR

ADR

Occ %

A

?

% Var

?

% Var

?

% Var

MET Actual 2009

?176.71

?225.04

80.83 %

MET Actual 2010

?169.64

?252.46

67.2 %

MET 2010 vs. 2009

?32.93

24.1 %

?27.42

12.2 %

6.4 %

10.5 %

RevPAR Premium 2009

-14.3 %

A

A

A

A

RevPAR Premium 2010

-14.1 %

A

A

A

A

A

A

A

A

A

A

A

RevPAR

ADR

Occ

MET 10

?176.71

?225.04

80.83 %

MET 09

?169.64

?252.46

67.2 %

A

A

A

A

A

A

A

A

THE HALKIN

RevPAR

ADR

Occ %

A

?

% Var

?

% Var

?

% Var

HAL Actual 2009

?275.61

?307.09

89.3 %

HAL Actual 2010

?215.42

?316.15

68.1 %

HAL 2010 vs. 2009

?9.81

4.8 %

?19.06

6.4 %

-1.1 %

-1.6 %

RevPAR Premium 2009

-9.2 %

A

A

A

A

RevPAR Premium 2010

-16.1 %

A

A

A

A

A

A

A

A

A

A

A

RevPAR

ADR

Occ

HAL 10

?275.61

?307.09

89.3 %

HAL 09

?215.42

?316.15

68.1 %

x

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