CASE The St. Giles House Hotel At the turn of this century, a rather well-off (financially secure) husband and wife team decided to purchase a dilapidated shell of a building in the city of Norwich in the UK. The defunct General Post Office construction site was deemed ideal for a high-class luxury hotel. The main investors for the initiative were family members who ultimately financed the project to the tune of several millions. During the refurbishment the couple had to persuade family benefactors to reinvest significant extra sums in order for the hotel to open. During the course of the broadcasts viewers witnessed the highs but mainly lows of the conversion process up until the grand opening of the hotel. During early stage-setting broadcasts, interviewers were keen to know about the impetus for the idea and how data was obtained about the primary market segment for the St. Giles. The couple indicated that owning and running a hotel had always been a dream and they felt that the time was right to embark on their venture. The process of identifying a primary market for the hotel was similarly idiosyncratic. The couple felt that customers’ tastes and preferences would mirror their own somewhat ostentatious expectations. Moreover, when enquiries were made about the husband and wife’s hospitality training and expertise, none was forthcoming. Indeed, their total sum of knowledge appeared to be based on a former cosmopolitan lifestyle which included extensive travel and international hotel patronage. They agreed that these experiences had equipped them with knowledge sufficient to own and run their own hotel successfully. The remainder of the broadcasts journalled a litany of mistakes, crises and errors arguably rooted in a complete lack of management, people and operational skills. Many staff were treated in a questionable manner and expected to take on other duties besides those hospitality-related. As a result many staff left or where asked to leave including managers. After missing several launch deadlines, the hotel was finally opened with an almost completely new staff profile. Once the ‘honeymoon’ period subsided, occupancy and restaurant bookings declined significantly. At this point the television series ended and viewers were left wondering about the future of the St. Giles House Hotel. In 2007 the predictable fate of the venture was made clear. Shortly after the hotel was opened, the original investors withdrew and it was taken over by a new company. The husband and wife team still remain but have no strategic decision-making autonomy and play a minimal role in the operation of the enterprise.
Questions
1. List and explain the mistakes made by this entrepreneurial couple.
2. How would a feasibility analysis have helped them avoid some of the pitfalls seen above?
3. Give three examples of research methods which could have been used to help the St. Giles House Hotel identify its niche market.


1. Discuss which personal characteristics and skills you believe important for launching a successful hospitality venture.
2. Reflect on your strengths and weaknesses.
3. Can missing characteristics be learned?
4. How important is it to learn them?

natvasilya16    1   04.03.2021 18:46    5