Principles of Strategic Management Mr. Ed Schofield
Student Names: Carlos Leon Gonzalez Student Class: Assessment Title: PG1
Word Count: 1121
Due Time: 10:30
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Date: 3 of May 2010
FOR OFFICE USE ONLY (reception date stamp here)
New Horizons : NH Hotels on the rise
Created in 1981 NH hotels is a young edition to the hotel industry, yet has experienced great success during these years. It is one of Europe's largest and fastest-growing hotel groups. NH has strived to create a well-known and respected brandinternationally. The company has continually taken the initiative to not only deliver a quality service but also be innovative in the industry. The Madrid-based Company owns, franchises or operates around 400 properties, with more than 22.000 employees in 24 countries around the world, after the acquisition of Hesperia Hotels in 2009 .The NH hotel group has thirtyeight new projects in development. In orderto facilitate this growth NH hotel’s has undergone three key strategies. Firstly this includes the rebranding and marketing of the group, in order to build a more recognised name for the company and its operations. Second, diversifying the business operations into new markets, through the creation of the ‘Sotogrande’ branch. And thirdly reinforce and invest the companies operations to be a leadingforce in the 3 to 4 star hotel market, specifically business-orientated hotels. Furthermore the company is investing heavily, several million Euros plus, to rebrand all its properties under one logo. "The goal is to become one of the leading city hotel chains with the greatest presence in Europe and Latin America," says Gabriele Burgio, executive vice president of NH Hotels. This strategicinitiative to build the brand has received great results. NH hotels is listed as one the leading companies in the European market to record massive growth in terms of room development. Between the years 2003 to 2007 the company constructed 15,000 rooms. With this successful investment the NH hotel group is now the dominant figure in the European hotel market, recording higher growth rates than Ibis,Mercure and the Holiday Inn (Ottus & Co).
Apart from the ever-increasing growth in the hotel development, NH Hotels has undergone an important diversification in recent years. The group has expanded operations into the real estate market, specialising in luxury residential developments. This new branch of company is titled ‘Sotogrande’, and it has been profiting throughout the previous year.NH hotels wish to differentiate their chain from the competitors through investing in new and innovative hotel concepts. This strategy is an important aspect for the NH Hotel group in order to compete in such a crowded industry. The company wishes to differentiate their brand from other firms such as the Sol Melia, Ibis and Accor groups throughout Europe. The NH hotel group have created anumber of different business lines such as NHEden and NHow. The NHEden line is involved in high-end luxury resort options for the consumer. It is focus on the vacation and leisure tourism market. NHow is now establishing itself in the main fashion capitals of the world. This new line is taking advantage of new market demand for this type of boutique style hotel that combines quality, service and...