This research develops a case study analysis of Hospitality Franchise systems, Inc. The findings of this analysis are presented within the contexts of (1) a company profile and relevant background information, (2) the service concepts underlying the companyÆs business strategy, (3) an analysis of the companyÆs financial performance and position, (4) an analysis and an assessment of the companyÆs publicly-traded equity stocks, and (5) a statement of conclusions drawn from the research findings presented.
Company Profile and Relevant Background Information
Hospitality Franchise Systems, Inc. is a public stand-alone company that was founded in 1990. The principal business activities of the company are finance and the franchising of hotels. The companyÆs equity shares are traded on the New York Stock Exchange.
Hospitality Franchise Systems, Inc. is the world's largest motel franchiser. The company has in excess of 4,400 Ramada Inns, Days Inns, Super 8 Motels, and Howard Johnsons. These hotel chains have a room capacity in excess of 435,000 in North America, Latin America, and Europe. The company has signed agreements that will permit expansion into Australia, New Zealand, and Southeast Asia. In 1995, the company won court approval to acquire the Knights Inn motel chain out of bankruptcy. Hospitality Franchise Systems also is launching a new Wingate Inns chain.
One of the keys to the success of Hospitality Franchise Systems is the presence in the organization of immigrants from India. More than one-half of the Indians associated with Hospitality Franchise Systems are of the Patel Clan whose members have been active in hotel management in India for centuries. Approximately one-third of the hotel properties associated with Hospitality Franchise Systems that operate under the Ramada, Howard Johnson, and Super 8 names are owned and operated by Indian immigrants of the Patel Clan, while more than one-half of the hotels ...