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Root Causes of New Hotel Opening Delays in China
Abstract
In China, at least three new 150+ room hotels will be opened every day for the next 25 years according to available development pipeline data (Yang, 2011; Lodging Econometrics, 2013). This phenomenal rate of hotel construction has major implications for how new hotels are opened on such a large scale. China is a vital growth market for the global hotel industry, yet many of these hotel openings are being considerably delayed. This chapter reviews the future growth strategies and plans of the major international hotel companies in China, and examines the causes for these setbacks. The authors used a Causal Chain Analysis on data that were acquired from over 80 interviews with hotel management professionals in 2009. There was an overwhelming general lack of understanding of project management methodologies, concepts, and structures. These were found to be key problem areas (Thomas, Delisle, & Jugdev, 2001).
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