Root Causes of New Hotel Opening Delays ~ Read
A Cornell Hospitality Report, published by The Center for Hospitality Research at Cornell University - School of Hotel Administration, and written by Gert Noordzy, MBA, CAPM and Richard Whitfield, PhD.
China's massive program of new hotel construction has opened hundreds of properties with thousands of rooms - an unprecedented accomplishment that is projected to continue for the next two decades. The available development pipeline data indicate that at least three new 150-plus room hotels will be opened in China every day for the next 25 years. Because such a rate of hotel growth has never been seen before the methods used to open these new hotels must be focused and methodical.
Given that many of these planned hotel openings are being delayed, this report analyzes the nature and causes of these delays. Interviews of 81 professionals working at 15 hotel chains were assessed using Causal Chain Analysis. This process revealed a large set of proximate causes for those delays, including last-minute design changes, delays in appointing a contractor, and failure to acquire necessary permits. Deeper analysis of these causes revealed that a lack of understanding and adaptation of project management concepts and techniques were the root causes of these issues. As a consequence, the report recommends that major hotel management companies need to strengthen their project management capabilities if they hope to meet their ambitious China growth targets.
Getting this Report
The complete report is freely available from The Center for Hospitality Research at Cornell University - School of Hotel Administration. Please click HERE to obtain access in a new window.
Project management of new hotel opening processes ~ Read
This dissertation examines modern project management concepts to determine the feasibility of reorganizing a hotel management company and developing a new hotel opening 'how to' guide so that a hotel management company can use project management to effectively and efficiently open new hotels in Greater China.
Quantifying new hotel opening delays
This PhD research project endeavours to quantify new hotel opening delays and establish the average length of delay in Greater China for international hotel management companies, as well as negative financial implications. These can be categorized as pre-opening cost overruns, as well as post-opening revenue loss and opportunity costs.
The impact of psychological typology and cultural dimensions on new hotel opening processes
This post-doctoral study will investigate if there is a correlation between the average delay in hotel openings and the typological psychology and cultural dimensions of the General Manager sample. Project Management Methodology solves the problem of hotel opening delays in a technical way. We need to expand on this foundation and investigate the adaptive side of the problem. How does one influence across different cultures and better negotiate outcomes for different purposes on both sides? To do so, one needs to understand and clarify the purpose of the hotel management company and hotel owning company (each in their own terms and words). Cultural Fit plays a critical role in this. The outcome will be an Adaptative Leadership Model for Hotel Opening Processes to demonstrate how international hotel management companies could apply these concepts to increase the effectiveness of hotel opening teams and further mitigate the negative impacts of new hotel opening delays.
Best practises, lessons learned and traps to avoid
This research project will endeavour to capture the collective memories of hospitality professionals with relevant experience of new hotel openings and draft a consensus of best practises, lessons learned and traps to avoid.
Differences between State Owned and Private Enterprises
This white paper will endeavour to outline the differences in approach to new hotel opening projects by government and private owners of hotel assets in China. The outcome will be a working document to improve stakeholder management.Contact Us For More
- Root cause analysis & causal chain of hotel opening delays
- Quantifying new hotel opening delays
- The impact of psychological typology and cultural dimensions
on new hotel opening processes