Hyatt hotel -entrepreneur Essay
Hyatt hotel -entrepreneur
How does it feel to stay in one of the most expensive and most luxurious hotels in the world? How does it feel to have all sorts of amenities and numerous variations that enhance the quality and satisfaction of a client’s stay at a hotel? No, it is not too good to be true since the establishment of the Hyatt Corporation in 1957. Hyatt’s first property called the Hyatt House was built at the International Airport of Los Angeles. Currently, there are over 215 Hyatt branded hotels and resorts in 43 different countries around the world.
Hyatt Corporations includes the Hyatt, Grand Hyatt, Park Hyatt, and Hyatt Regency brands. Hyatt opened their first overseas hotel, the Hyatt Regency Hong Kong, in 1969. It was later on in the 1980s when the Park Hyatt and the Grand Hyatt brands were introduced. There are hotels located in many culturally diverse rich destinations that attract not only families, but also business travelers as well. These hotels include sophisticated technology, leisure, banquet, and conference facilities, and state of the art technology.
Hyatt Corporations are most known for their deluxe and exclusive hotels located in major and secondary cities throughout the entire world. This international corporation has brought about more than 20,000 jobs opportunities for many around the world. It has provided excellent customer services and as an international hospitality industry, they also hold conferences, banquet parties, and catering events. It was not easy to set up an interview with the entrepreneur of this Grand Hyatt Hotel, Hyatt R.
von Dehn, but I was able to meet him in person at a conference that was held at Park Hyatt Los Angeles. In the end, I was able to catch his attention for the last ten minutes with my curious questions. Mr. Von Dehn briefly explained to me that when he originally began his own business, he was tired of working for other dominating bosses and he knew that it took money, which he had enough, to make more money. In the early stage of the business, he was not expecting to make a lot back on his revenues, but with the support of his family he was able to preview and share the vision of success with them.
This brought out one of the main key points that he told to me focus on when it came to starting up a business: you have to be a self-motivated entrepreneur. A word of advice which he gave me was, “When you want to launch a successful business, it all depends on your own potentials and nobody else’s. ” Make sure you choose to invest on something that you enjoy and that you are very passionate on. Every business established has numerous amounts of regulations and limitations that one must comply to.
For Hyatt Hotels, there are a list of thirty different sanitary regulation, protection for the physical plant, and one of the most known would be the American with Disabilities Act (ADA). Hotels have to quality and comply with certain requirement which the government demands. These obligations may be related to certain fixtures that can vary from ceilings, walls, and flooring to telephones, water fountains, to cables. Sometimes certain regulation are not entirely necessary, however, Mr. Von Dehn himself stated that anything that will benefit the hotels and its customers is something necessary.
Of course, it is more convenient for his Hyatt hotels to have fewer regulations, but he also admitted that as a result of these detailed regulations, it has allowed Hyatt Hotels to rank so highly in the hospitality industry. Currently, the hotel tax rate is 6 percent and all Hyatt hotel owners, managers, and operators must collect taxes from their guests. Taxes are applied to every sleeping room that is being rented out. Certain main cities and different countries can vary on tax rates for the hotels, but it can vary up to 7 percent.
Mr. Von Dehn did not specify what benefits he received from the taxes, but one thing that he would like to change are the rate of taxes in major cities and various countries. Despite the fact that raising 2 or 3 percent on tax rates may not seem as much, when a busy hotel receives a lot of customers and clients, they also have to pay a higher hotel rate. Personally, I agree with him. I think that there should only be a specific tax rate for hotels that should be applied to most hotels.
Like mentioned before, Hyatt is a private owned corporation that has many branded hotels and resorts: Hyatt Regency, Grand Hyatt, Hyatt, Park Hyatt, and Hyatt Resorts. Hyatt Corporations are located within the United States, Canada, and the Caribbean. International Corporations have Hyatt hotels and resorts overseas, such as China, Italy, Japan, Saudi Arabia, and much more. According to the financial statements for the Global Hyatt Corporation, it was recorded that in 2005, hotels and resorts employed over 88,647 employees.
Hyatt Hotels provide its employees with significant and beneficial wages, healthcare, and pension increases every year. Employees that do not get tipped can range from having a wage increase from $12. 10 to $14. 60 per hour. Servers and the housekeeping department receive $3-$5 per hour plus tips, but when business is seldom, their bosses will increase their hourly rate to minimum wage plus tips. Working on a long contract, employees may receive an average 7 percent annual increase on their salaries. Hyatt Corporation, Inc – annual income statement December 2005 December 2004.
Revenue $11,555. 00 $10,099. 00 Cost of Goods Sold $10,242,00 $9,015. 00 Gross Profit $1,308. 00 $1,084. 00 Gross Profit Margin 11. 3% 10. 7% Operating Income $555. 00 $477. 00 Operating Margin 4. 8% 4. 7% Non-operating Income $268. 00 $304. 00 Non-operating Expenses $106. 00 $99. 00 Income Before Taxes $717. 00 $654. 00 Income Taxes $94. 00 $100. 00 Net Income After Taxes $623. 00 $554. 00 Total Net Income $669. 00 $596. 00 Net Profit Margin 5. 8% 5. 9% *US Dollar amount in millions Hyatt Corporation has an economic profit in the year 2005 compared to 2004.
To begin, there is no negative profit and this already showed automatic sign of profitability. Hyatt’s stocks are currently worth $47. 26 per share. They made a profit of over $1,456,000 from year to the next. Before when the industry was first established, business may no seem to go as well. nevertheless, it has been over five decades since its establishment and every hotel, resort, and vacation club creates a positive income and a profit. The competition for the hotel industry is always tight and competitive. Certain competitors include the Marriot Hotels, Sheraton Hotels, Ritz Hotels, and Hilton Hotels.
Hyatt Hotels is a perfect competition where every hospitality industry fights for the beset positions and the highest ranking. This form of business does not perform neither homogeneous nor differentiated products since it is a hotel industry. For other firms to enter this business, investors must qualify for certain acts and requirements. In the long run the firm is continuously growing and economically profiting annually. I would definitely invest on buying Hyatt stocks because I know that their industry is yet to increase.
I have stayed at Hyatt Hotels myself and I can tell everyone that clients and customers need not to worry because this five star hotel provides perfect satisfaction and quality to everyone.
WORK CITED: Bulletin, Manila. “Hyatt Regency GM Farid Alain Schoucair: Living One Day at a Time. ” 8 June 2003. Little, Rebecca. Lodging: Avoiding ADA violations that can cost you. <http://www. lodgingmagazine. com/index. cfm? fm=Article. Detail&aid=54> 2006. “The Five-Star Stars. ” Business Asia. Vol. 8: September 2000.
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 21 April 2017
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