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A Luxurious Boutique Hotel - Term Paper Example

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This paper demonstrates Castle on the Hudson is a small luxury hotel. The author explains why The castle is one of those untouched castles in New York that is not merely preserved for commercial purposes. And how the demands of commercialization or globalization demolish it from the country’s cultural heritage…
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A Luxurious Boutique Hotel
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 «A Luxurious Boutique Hotel» SECTION I An Old Castle Fresh from the ravages of war at the dawn of the 20th century, General Howard Carroll built his lavish recourse yet in an elevated land he bought from its owners in the 1800s. Together with the city’s renowned architect Henry Kilburn, General Carroll constructed and fancied his castle as Carrollcliffe which later assumed different names. Yet, it survived up to this day as the Castle on the Hudson (Engstrom). Carrollcliffe towered for 56,000 square feet, expanded as a 10.1-acre Norman-inspired fortress with forty-five rooms. Many of the stones with which the Castle was heavily paneled where extracted from the site itself, making the castle even more valuable (“History”). Finishing the castle required several years. It was not until 1910 when the Castle had its final touch. A century has passed yet the Castle was able to sustain its inherent beauty that its original interior woodwork and trappings remained essentially unscathed (“History”). The Great Hall-cum-dining room, pantry, ballroom were just among its prominent features which made it even more inviting for social gatherings (“History”). The General’s family continued to take residence in the Castle for twenty-four years after his death in 1916. Later it served as a boarding school for boys and then a headquarters of a mutual-fund business until it finally transformed into a luxurious boutique hotel (“History). To this day, it stands as one of the most notable castle hotels of historical value as it sits on a hilltop in Westchester County, overlooking the serene Hudson river against New York’s visible horizon. After the financing counselors headquartered in the Castle, a private banker at the United Bank of Switzerland (UBS) in Manhattan, Hanspeter Walder purchased the castle for $2 million in 1994; named it as the Castle at Tarrytown and; reconstructed it into one of the finest castle hotels in the country (Engstrom). In the first three years of ownership, he refurbished all thirty-one rooms into guest suites, adjoined an outdoor swimming pool, tennis courts, banquet halls, and a restaurant (Hadad). The Castle eventually collected an exuberant appeal for galas and weddings; and eventually received recognition from Relais and Chateaux as a four-star castle hotel. Seven years after, Hanspeter Walder waived his ownership of the castle. UBS obliged to control the hotel for a time until an international investor, Elite Hotels LLC bought it for $10.9 Million in 2003. C. Dean Metropoulos was the founder of the said limited liability company (Brenner). Concurrently, he operates a private equity firm, C. Dean Metropoulos & Company (CDM) that focuses on purchasing and restructuring businesses (mostly consumer products) who have lost its track in the market. While C. Dean Metropoulos is prominent in private equity, investment banking, and financing (“C. Dean Metropoulos Named”), he considered purchasing the Castle because of its really attractive bargain. Under a new ownership, the castle finally adopted the name -- Castle on the Hudson. A Knight’s Mission Despite its fundamental charm, the castle became a subject of enterprise especially that capitalization is the on-going trend. Dean Metropoulos was not one of those who escaped the castle’s ”old-world appeal,” however he strives to make the castle profitable for the contemporary generation without compromising the nostalgia of the 20th century, that is, limiting the castle’s exposure for commercial purposes alone (Podoshen). This remains to be Metropoulos’ main pursuit for the castle. Operations at the Hotel Management Structure Proprietors C. Dean Metropoulos’ Elite Hotels LLC controls the main operations of Castle on the Hudson. Aside from being founder of Elite Hotels, Dean Metropoulos serves as a Chief Executive Officer of the private equity firm, Metropoulos & Co. (“C. Dean Metropoulos Named”). It had over than 45 acquisitions that required approximately $12 billion investment within twelve years (“C Dean Metropoulos”). Just recently, it purchased the largest brewing company in North America, Pabst Brewing Co. (“C. Dean Metropoulos”). Aside from managing CDM on the other hand, he also holds high positions in large corporations specifically being CEO and Chairman of the Board of Pinnacle Foods Group Inc. and Executive Chairman of Hillsdown Holdings PLC (“C Dean Metropoulos”). One of the major reasons Dean Metropoulos decided to purchase the castle is his two sons, Daren Metropoulos and Evan Metropoulos who both love hotel management (Philippidis). As proprietors, they also have their share of responsibilities for the hotel. Evan, the elder brother, supervises grand events and corresponds with the Corporate Sales Director while Daren managed the Castle’s spa facility and services before being officially offered early 2008 (Podoshen). Amenities and Services Equus. Equus is an award-winning Zagat-rated restaurant that almost exudes a separate appeal from the hotel per se. Equus is one of the major assets of Castle on the Hudson as evidence by some foodies who would only visit the restaurant without regard of staying in the hotel. Not only does it offer a cultural, artistic and medieval charm that is distinct from each of the three dining areas: Tapestry Room, Oak Room; Garden Room, it is most especially known for serving exceptionally sumptuous recipes and dishes (“Dining”). The General’s Bar and the Grotto Bar. After dining at Equus, guests may spend a moment of exquisite relaxation with a refreshing drink at the General’s Bar and the Grotto Pool Bar and Grill (“Grotto Bar”). Outdoor Pool. An outdoor whirlpool accommodates fourteen (14) people who can enjoy light gourmet meals at the Grotto Bar and Grill (“Grotto Bar”). Meeting Rooms/Banquet facilities. Overall, the hotel has four meeting rooms. The Great Hall expands up to 1,460 square feet and can contain 100 to 200 guests according to the preferred room set-up (“Meeting Rooms”). The Caramai Ballroom is another meeting room which is almost as spacious as the Great Hall. It can accommodate 100 to 140 guests in a classroom-style setting (“Meeting Rooms”). The Library or otherwise known as the Arthur Litt Library is a 570-square-foot room fit for intimate meetings or intellectual discourses (“Meeting Rooms”). The Tapestry Room is another cozy meeting room that can serve 15 to 45 with respect to the room set-up (“Meeting Rooms”). Social and Special Events. The combined elegance of the 20th century and a world-class inn had always made the castle hotel an attractive site for social gatherings or special occasions, be it a wedding, anniversary, birthday party, or such other significant event (“Weddings and Social”). The hotel can accommodate at a maximum of 150 guests for any social or special event. Other Amenities and In-room Services. Castle on the Hudson also has tennis courts, a fitness center and a library. It has a strategic alliance with Pound Ridge Golf Club which is only 40 minutes from the hotel (“Accommodations”). Laundry or valet services are also offered in the hotel as well as in-room spa services. The hotel only employs licensed physical therapists who use only therapeutic treatments of highest qualities (“Accommodations”). Guest Rooms and Suites Specifications The castle hotel’s consistent artistry is illuminated in each of its three floors. The hotel’s thirty-one (31) guest rooms and suites are available for either ordinary or special occasion. Room rates outside promotional packages depend on the schedule of reservation or period of stay though they usually range around $375 to $ 820 per night (“Castle on the Hudson”). Table 1 lays out the different room types with some of their respective features and room amenities. Table 1: Room Types & Features (“Accommodations”) Room Types Room Features Luxury Suite 450 – 470 square feet; One king-sized bed; living room with a wood-burning fireplace and in-room movie system; panoptic view of the Hudson River valley Junior Suite One king-sized four post bed; Turret alcove sitting area; in-room movie system; relaxing garden view Deluxe King One king-sized bed with wood-burning fireplace; in-room movie system and mini bar; garden views Deluxe Double Queen 450 - 470 square feet; Two queen-sized beds overlooking the vast garden; in-room movie system Castle Junior Suite One king-sized four-poster bed; living room with a wood-burning fireplace; garden views Room Rates by Packages Table 2 presents the promotional packages that are available until 2011 (“Packages”). Table 2: Hotel Packages Package Room Types Room Rates (in US Dollars) Availability Castle Escape Special Deluxe accommodation 275 plus taxes with $50 Castle voucher Sunday to Thursday Castle Anniversary Deluxe accommodation 695 Sunday to Thursday 760 Friday or Saturday Castle Brunch Deluxe King or Double Queen room 555 Only on Sunday arrivals Junior Suite 595 Luxury Suite 835 Romantic Spa * Deluxe King or Double Queen room 740 Sunday to Thursday 790 Friday or Saturday Junior Suite 795 Sunday to Thursday 875 Friday or Saturday Luxury Suite 1,050 Sunday to Thursday 1,260 Friday or Saturday Luxurious City Escape Castle Luxury Suite 1,450 Sunday to Thursday 1,650 Friday or Saturday Seasonal Getaway Deluxe King or Double Queen room 635 Friday or Saturday Junior Suite 725 Friday or Saturday Luxury Suite 1,105 Friday or Saturday Relax and Indulge Deluxe King or Double Queen room 450 Sunday to Thursday Junior Suite 550 Sunday to Thursday Luxury Suite 835 Sunday to Thursday Location Castle on the Hudson is strategically situated far from the rush of metropolitan areas. It sits at an elevation in Benedict Avenue, Tarrytown in the western part of Westchester County, New York. It is a ten-mile drive from Westchester County Airport while twenty-five (25) miles away from New York City, the most populous city in USA. Some of the attractions near the castle are the Kykuit Mansion, the Lyndhurst Castle and the Madison Square Garden which is no more than an hour-drive south of Tarrytown. Marketing and Promotion The hotel’s major online promotional tool is its website (http://www.castleonthehudson.com/). Other promotions such as press releases and recognitions are largely contained in the website. Sales promotions that come in packages are also provided by the hotel. Furthermore, the hotel employs Internet marketing such as search engine optimization (SEO), online publicity (e.g. proprietor interviews), and marketing on travel sites (i.e. TripAdvisor, Yahoo! Travel). SECTION II: SWOT Analysis Strengths Historical Value. Even if the Castle ceases to be a hotel, it will remain a part of the country’s heritage. Its historical value is its fundamental attraction that boosts consumer base. Strategic Location. The location of the hotel complements its value proposition. Aside from its undoubtedly beautiful architecture and scenic places as other attractions, it is unique, grand and peaceful. With the increasing tourism demand and the cost of living in New York, the castle could sell to class A and B markets which are indeed the abundant market in New York. Equus Restaurant. Being well known for providing splendid gourmet pleasures to customers, Equus is a Zagat-rated five-star restaurant. This established image increases the value of the restaurant itself and largely, the hotel. Multilingual and Competent Staff. Indeed, Castle on the Hudson doesn’t only attract locals; it also has the potential to entice foreigners. Language barriers may not impede the process of exacting services to customers regardless of race and demography since the hotel is staffed with multilingual groups of people. The “Green” Castle. The hotel uses renewable energy through a partnership with Juice Energy, a power supplier which provides electricity-management solutions to businesses (“Castle on the Hudson Becomes”). With this, Castle on the Hudson could minimize their power consumption, hence costs. Weaknesses Financial Scandals. Before Metropoulos bought the Castle for a meager $10.9 million from UBS AG, it was already involved in a serious accounting scandal with Hanspeter Walder who defrauded his own clients for more than $70 million to reconstruct the castle (Philippidis). Recently, the hotel’s former controller, Mourad Boulas faced liabilities because of stealing at least $400,000 for four years since 2004 (Roach). Such damaged reputation reduces the chance of attracting possible investors for the further developments necessary for the hotel. Poor Promotional Tool. The hotel’s website is too commercial, simple bordering on bland; and lacks visual entertainment which is ironic for marketing a hotel. It has a weak value proposition that should manifest in the website. However, it fails to establish its uniqueness and the grandeur it promises at least visually. It lacks pertinent information like necessary photos for all amenities and/or complete details for the services offered. The management should not forget that customers are visual and needs a usable site to explore. Moreover, it also mainly relies on “word of mouth” that may oftentimes come in forms of Internet bashing. Though they may merely be tactics of competitors, the potential customers will have no way of knowing the truth except in the website itself. Opportunities Historical Value. The management could actually exploit the hotel’s historical value by providing more innovative and flexible services with a mix of modern and medieval trends suited for class A and B markets. Emerging Markets. Russia, China and India are just three of the new markets in the hotel industry today (“Three Significant Trends”). With this, the hotel may formulate a better value proposition in a global scale particularly selling the hotel to these markets. This may also come as a strategic direction of the hotel since it employs multilingual staff. Organizational Structure. C. Dean Metropoulos, owner of Castle on the Hudson, is a respected and successful businessman. He focuses on private equity with over than 45 acquisitions mostly from the food industry around United States and Europe. With his entrepreneurial proficiency in the food industry, Metropoulos could easily add value to Equus restaurant, the hotel’s finest amenity. On top of that, he is well-known for his entrepreneurial ability of rejuvenating outdated brands back into the market which if applied to the hotel itself, will amount to more than the desired revenues. Interactive Media. The growth of the Internet is also another easy avenue for the hotel to devise a promotional strategy because web advertisements are relatively cheaper and easier to develop than through the use of the traditional media. Threats Competition. Without strategic marketing, the hotel may not be able to survive against established and large competitors. The travel industry is very vulnerable to decline because of the global recession. Castle on the Hudson is still in the pursuit of gaining competitive advantage. Very Expensive Rates. Even though the cost of living is very high in New York, consumers in the tourism and travel industry are still sensitive to price (Hoon). They are restless until they can get the most wonderful vacation at the most affordable rates (Hoon). However, this is the only area that the hotel fails to comply. Added to the financial scandals, the fact that the country is still recuperating from economic depression makes it harder for the hotel cumulate loyal consumers. Management Focus. Metropoulos and his sons have acquired various companies through their equity firms. With multiple companies to operate, the Metropoulos family may lose its focus on the hotel, resulting in a slow implementation of whatever is necessary to the preservation and profitability of the hotel. SECTION III: The Medieval Escape Far from the noise of downtown areas, Castle on the Hudson is the vantage point of peace and the untold grandeur of life in the 20th century. When too much modernity is taking a toll of the goodness of living; when there simply arises the need to decompress, spending a day in the Castle is the most soothing escape. No other castle in New York perches on a hilltop that allows any guest to feel like ruling his/her own land and people – the royal getaway. The location itself makes the Castle breathtakingly beautiful. For more than a century, the handsome and thick stonework, sophisticated oak panels, classy ornaments and furniture and especially the kingly accommodations send any guest to the world of fairy-tales even just for a day or less. Castle on the Hudson is nothing but a profusion of elegance and stability. In spite of the sophistication and lavishness though, the castle exudes a private but comfortable atmosphere that is perfect for any interpersonal affair. A one-day visit may in fact appear too luxurious not only for the middle to low income earners but to all the consumers in the travel industry. However, the rates become worthwhile with the services and room accommodations the Castle and its management offer. Furthermore, the amenities may have made the hotel more reasonable in its prices or rates. Equus is the hotel’s most exceptional feature with the most proficient staff. The Arthur D. Litt Library and the Oak Room are especially rich in history themselves. Nothing beats the individual historical values and uniqueness of both; and which formed part of the hotel’s own worth. Indeed, whether the occasion is a gala affair, Gothic romance, or corporate gathering, the Castle appears to be the right place to be. Castle on the Hudson is but a small luxury hotel that possesses the allure of the royals in the 20th century that is rare to experience in the contemporary age. The castle is one of those untouched castles in New York that is not merely preserved for commercial purposes. People should come to this hotel while it still has its inherent magnetism; or before the demands of commercialization or globalization demolishes it from the country’s cultural heritage. Works Cited “Accommodations.” Castle on the Hudson. Castle on the Hudson, n.d. Web. 22 Oct. 2010. . Brenner, Elsa. “In Business; Going Price for Castles? In Tarrytown, $10.9 Million.” New York Times, 25 May 2003. Web. 22 Oct. 2010. . “Castle on the Hudson Becomes America’s First Green Castle Through New Partnership with Juice Energy.” Castle on the Hudson. Castle on the Hudson, n.d. Web. 22 Oct. 2010. . “Castle on the Hudson: Tarrytown, New York.” Historic Hotels. Historic Hotels, n.d. Web. 26 Oct. 2010. . “C Dean Metropoulos.” LittleSis. LittleSis, n.d. Web. 22 Oct. 2010. . "C. Dean Metropoulos." Forbes. Forbes, July 2010. Web. 22 Oct. 2010. . "C. Dean Metropoulos Named HACC Person of the Year 2006." Hellenic-American Chamber of Commerce. New York, NY: Hellenic-American Chamber of Commerce, 2006. PDF file. “Dining.” Castle on the Hudson. Castle on the Hudson, n.d. Web. 22 Oct. 2010. . Engstrom, Nicholas. “The Stolen Millions That Remade Tarrytown’s Castle.” Westchester Magazine. Westchester Magazine, 21 May 2007. Web. 22 Oct. 2010. . “Grotto Bar and Grill.” Castle on the Hudson. Castle on the Hudson, n.d. Web. 22 Oct. 2010. . Hadad, Herbert. “Castles of Sand.” Northeastern University Alumni Magazine. Northeastern University, n.d. Web. 22 Oct. 2010. . "History." Castle on the Hudson. Castle on the Hudson, n.d. Web. 22 Oct. 2010. . Hoon, Yeoh Siew. "Tour Operating on a Slide, Price-sensitive Consumers on the Rise." 4Hoteliers. 4Hoteliers, 5 June 2009. Web. 21 Oct. 2010. . "Meeting Rooms." Castle on the Hudson. Castle on the Hudson, n.d. Web. 22 Oct. 2010. . “Packages.” Castle on the Hudson. Castle on the Hudson, n.d. Web. 22 Oct. 2010. . Philippidis Alex. “New Owner Sees a Spa, More Luxury in a Castle's Future.” Westchester County Business Journal (2003). Print. Podoshen, Lois. A New Knight for an Old Castle. Westchester Magazine. Westchester Magazine, 7 June 2007. Web. 22 Oct. 2010. . Roach, Sean. “Former Controller for Castle on the Hudson Charged with Grand Larceny.” Patch. Patch, 1 Aug. 2010. Web. 26 Oct. 2010. . “Three Significant Trends Driving the Hotel Industry.” HotelMarketing. HotelMarketing, 12 Mar. 2008. Web. 21 Oct. 2010. . “Weddings & Social Events.” Castle on the Hudson. Castle on the Hudson, n.d. Web. 22 Oct. 2010. . Read More
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