1. Marketing's virtuous circle
1.1 situation analysis
1.1.2 Presentation of Hampton Hotels by Hilton
Founded in 1919 by Conrad Hilton, this group of hotels started with a 40 ' room hotel based in Texas and it managed to emerge to an impressive empire that consists of 4726 hotels, with over 775.866 rooms in more than 100 countries around the globe as reported by Hilton Worldwide (2015). With the legacy of Waldorf Astoria, Doubletree, Hilton Hotels, Embassy, Curio, Conrad, Canopy, Garden Inn, Hampton and Homewood suites, its name has become synonym with style and innovation.
With more than 2100 hotels globally, Hampton Hotel by Hilton is recognized as a midscale hotel with limited food and beverage facilities. Most Hampton hotels are independently owned and operated by franchisees though a few are owned and/or managed by Hilton Worldwide.
According to Entrepreneur (2016) Hampton Hotels have 2007 franchises only in United States and 141 outside United States, therefore the company wishes to expand globally. For a more in depth understanding, the financial requirements for purchasing a franchise are: 1.Initial investment - $4.213.000 ' $14.896. 500 2. Ongoing fees ' Initial franchise fee $75.000, ongoing royalty fee 6%, and Ad royalty fee 4%
In Romania, the first Hampton Hotel had his grand opening on 10th of June 2013, in Cluj Napoca and it has 109 rooms and over 20 employees. The second Hampton Hotel will be open for its guests in November2016, in Iasi and it has 123 rooms, a very contemporary design offering " 100% Satisfaction Guarantee' as per officials of Hilton Worldwide.
1.1.3 Description of the Brasov City.
The city of Brasov known as Kronstadt in German and Brasso in Hungarian has a population of 290.743 inhabitants according to the National Statistical Institute on 1st of December 2016, making it the 7th largest city in Romania. Brasov is located in the heart of the country and is surrounded by Carpathian Mountains which obviously offer a great value to the city due to the magnificent ski resorts and breathtaking views. Besides the wonderful mountain scenery, the city also offers medieval history with German influences through the architecture of the buildings found in the old city.
Bra''ov boasts everything from dynamic modern city life - there are 85 restaurant with different types of cuisines, 50 bars, lounges and clubs (days and nights, 2016) - to old world charm and fascinating scenery. Also, it is pleasant to have some of the extras as well, including some of the best cleanliness records in the country, great transportation and great food. Even though it is a little overpriced for Romanian standards, especially in the high season, Bra''ov is definitely worth it.
The city is number 5 in top 10 most expensive cities from Romania (Adevarul, 2016) and yet appreciated by tourist of any kind. As some people say, "Why bother coming to Romania if you're not going to see Bra''ov?"
According to Brasov County Statistics, the Brasov County was visited in the first semester of 2016 (January ' March) by 220 610 tourists, Romanians and foreigners. Technically speaking, Brasov was the perfect destination for 195.988 Romanian tourists and 24.622 foreign tourists. Tourist arrivals recorded by the hotels and hostels from Brasov, increased by 1,4 % in the first semester of 2016 compared to the same period last year. Three star hotels received the majority of tourist (51.8%), followed by four star hotels (19.5%) and two star hotels 17.8% (Transilvania 365, 2016). The average length of stay in the period January to September 2016 was 2.1 days. In the Central Region, Brasov County took the first place both in arrivals and in overnights, 47.6% and 49.6%. Nationally, Brasov County was ranked second after Bucharest, both in arrivals and in overnights, with a share of 11.9% and 12.8%.
Taking into consideration the information stated above, Brasov is a very popular destination for both Romanian and foreign tourists, therefore the possibilities to develop a hospitality business are endless.
1.1.4. An analysis of Brasov hotel market
Although Brasov is positioned in the heart of Romania, the number of hotels located in the city is low compared with other major cities from the country and most of the accommodations are represented by urban bed &breakfast (Pop et al., 2007). The situation is generated because the conditions imposed by the Romanian low for the development of bed & breakfast are easier to fulfil plus that if you have less rooms, the investment would be kept to a minimum (Pop et all., 2007). According to the National Institute of Statistic, in 2015 there were 58 hotels in Brasov city but we will focus on establishments rated 5*, 4*, 3*, for the purpose of the research.
1. Five star hotels
' Aro Palace, center-city located, own by Aro Palace Group, 195 rooms (Aro Palace, 2016)
2. Four star hotels
' Kronwell Hotel , located next to the railway station, independently owned, 81 rooms (Kronwell, 2016)
' Ramada Brasov, located seven kilometers from the city-center, chain affiliated, 113 rooms (Ramada Brasov, 2016)
' Ambient Hotel, center-city located, independently own, 71 rooms (Tourneo,2016)
' Casa Cranta Boutique Hotel, located three kilometers from the city-center, independently own, 17 rooms (Casa Cranta, 2016)
' Hotel Cubix, , located five kilometers from the city-center, independently owned, 58 rooms (Cubix, 2016)
' Golden Time Brasov, located 4 kilometers from the city-center, independently own, 44 rooms (Golden Time Brasov, 2016)
' Hotel Esprit, located very close to the city-center, independently own, 17 rooms (Hotel Esprit, 2016)
3. Three star hotels
' Hotel Classic Inn, center-city located, independently owned, 34 rooms (Tourneo, 2016)
' Hotel Armati, center-city located, independently owned, 30 rooms (Armati, 2016)
' Hotel Bella Musica, center-city located, independently owned, 22 rooms (Bella music, 2016)
' Hotel Regal, located three kilometers from the city-center, independently own, 21 rooms (Hotel Regal Brasov, 2016)
' Hotel Kolping, located very close to the city-center, independently owned, 43 rooms (Hotel Kolping, 2016)
' Hotel Jasmine, located three kilometers from the city-center, independently owned, 19 rooms (Casa Jasmine, 2016)
' Hotel Citrin, located three kilometers from the city-center, independently owned, 27 rooms (Hotel Citrin, 2016)
' Casa Wagner Hotel, center-city located, independently owned, 24 rooms (Casa Wagner, 2016)
' Hotel Coroana Brasovului, very close to the center-city, independently owned, 42 rooms (Coroana Brasovului, 2016)
' Hotel Alinalex, located ten kilometers from the city center, independently owned, 23 rooms (Hotel Alinalex, 2016)
' Hotel Gott, center-city located, independently owned, 21 rooms, (Hotel Gott, 2016)
' Hotel Garden Club, located 10 kilometers from the city-center, independently owned, 19 rooms (Garden Club, 2016)
' Hotel Apollonia, very close to the city-center, independently owned, 29 rooms (Hotel Apollonia, 2016)
' Hotel Lux Divina, located ten kilometers from the city center, independently owned, 55 rooms (Lux Divina, 2016)
' Hotel Brasov, located close to the city-center, independently owned, 18 rooms, (Hotel Brasov)
' Hotel Casa Muresan, located close to the center-city, independently own, 46 rooms (Hotel Casa Muresan, 2016)
' Hotel Oasis, located close to the center-city, independently owned, 22 rooms ( Hotel Oasis, 2016)
' Hotel Pantex, located very close to the center-city, independently owned, 35 rooms, (Hotel Pantex, 2016)
' Hotel City Center, located very close to the city-center, independently owned, 28 rooms, (Hotel City Center)
' Hotel Serban, located five kilometers from the city-center, independently owned, 16 rooms, ( Hotel Serban, 2016)
' Hotel Long Street, located two kilometers from the city-center, independently owned, 24 rooms, (Hotel Long Street, 2016)
' Hotel Natural, located in the city-center, independently owned, 10 rooms, (Hotel Natural, 2016)
Analyzing the characteristics of the hotel market from Brasov, multiple conclusions can be highlighted.
1. The upper-market segment is poor represented, having only one 5* hotel in Brasov, most probably because guests are looking for less expensive, clean and comfortable accommodation.
2. Four star hotels are mainly located all over Brasov (70%) and few in the center-city (30%)
3. The majority of hotels found in Brasov are rated three star and they could be found in the proximity of center-city. (70%)
4. All hotels from the city of Brasov are independently owned except Ramada Brasov, part of the Wyndham Hotels and operated as a franchise.
5. The hoteliers are attracting both leisure 'because in the proximity of Brasov you can find Prahova Valley, Moeciu-Bran region and Poiana Brasov - and business travelers due to the fact that Brasov city has expanded fast in the last 15 years (Pop et all.,2016).
6. The hotel with most rooms is Ramada, which is chain affiliated, all the other having a significant low number of rooms.
7. All four star hotels are built from the scratch while a large percentage from the three hotels are to be found in old buildings, with beautiful medieval architecture.
8. According to Pop et al.,(2007) all hotels from Brasov are leisure and business oriented and the hoteliers understand what an important role their establishments can play in promoting the cultural heritage of the city among their clients. Something extremely interesting was also mention by Pop et al., (2007) related to the need of visibility of the hotel logos and the colors used by hotels in order to stand out from the crowd.
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