Melia hotels group based in Spain
- Melia hotels international is a group of hotels that are a renowned hotel brand operating from locations across the globe. The group based in Spain is an innovative hotel brand that has operations in over 350 locations in over 35 countries includes other brands such as Gran Melia Me, Paradisus, TRYP, Sol hotels, and iconic properties such as Gran Melia Fenix which is located in Madrid. In recent times, the group has explored means to grow internationally by entering new countries and adding unique hotels in the locations it has a presence. The organization has explored an idea where it will link its brand to others, such as FT and HR Café. There are some benefits that Melia can derive from owning its own hotel as opposed to managing hotels for other organizations. First, Melia will acquire 100 percent ownership of the properties, and hence Melia will have the right to control exclusive dimensions. The dimensions under control include having the responsibility to oversee the hotel`s daily operations such as hiring processes, securing hotel supplies, and creating a schedule for the personnel (Daniels 36). Second, Melia will acquire full ownership of the property assets hence can derive total revenue from them. Besides, the overall value of Melia will increase as the assets boost the company`s asset value as they appreciate in value (Dev et al. 100). Third, with Melia running the hotel under their own name, they can easily sustain the brand recognition in more locations hence more growth of the hotel chain (Daniels 257). Also, the management will be able to take on their decisions without having to consult any other entity. Management will affect their company culture and systems, which will ensure that the brand can deliver quality services as per customer expectations.
- There exist several advantages and risks for Melia if it explores a non-equity venture with Jin Jiang. First, Melia will have a better-nuanced understanding of the Chinese market (Mattera and Alberto 40). For instance, the other Spanish hotel chains were not able to conquer the Chinese market as they did not adopt their business strategy and operations to suit the Chinese values and culture. As Jin Jiang is China`s biggest hotel chain, Melia can increase their potential profits as Jia Jiang shares their experience of handling Chinese culture and values (Daniel 256). Both brands can share best practices to integrate information, training as well as booking system strategy. It will hence not only boost Melia`s managerial experience but also help increase its competitiveness in the industry. Furthermore, Melia will be able to learn about the market and its requirements using its partner Jia Jiang. Hence, they will have the ability to expand business in China.
- For risks, Melia can face a similar threat, such as the one that occurred between Barcelo and Shanghai International Convention Center after the Chinese canceled the contract only eight months into operations (Daniel 258). It left the Spanish hotel owners as having negative impressions of the Chinese, which only hampers business arrangements. Melia has to be careful as they enter into the contract.