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Figure IM-4: Performance Comparison between Good Hotel and Competitors
Growth from November 2008 through March 2010
RevPAR: 136.24% - 7.61%
Occupancy (%): 146.26% - 6.39%
4. Does Good Hotel have a competitive advantage over its rivals? [5 minutes]
values of the San Francisco competitors on two measures of performance: occupancy rate and
RevPAR. Using the same measures, Good Hotel also demonstrated triple digit growth rates over
5. If ‘yes’ to the prior question, what key distinctive competencies of Good Hotel or the
management company JdV provide a competitive advantage over its rivals? [5 -10
minutes]
In this question, it is important to separately list the distinctive competencies that belong to Good
Hotel and those that belong to Joie de Vivre. This will assist students to determine whether the
Figure IM-5 provides the distinctive competencies in terms of resources and capabilities for the
rivals.
Figure IM-5: Distinctive Competencies of Good Hotel and Joie de Vivre.
Company
Tangible Resource
Intangible Resource
Capabilities
Joie de Vivre
Green Dreams portal
on their website
Reputation
LEED certification
Expertise at
managing boutique
type hotels in SF
Good Hotel
Environmentally and
socially conscious
features
Reputation – first
hotel with a
conscious
Volunteer programs
Incorporating
sustainability in day-
to-day operations
6. Compare the performance of Good Hotel before and after it became Good Hotel in
terms of RevPAR, Occupancy (%) and Average Daily Rate (ADR). [5–10 minutes]
improved.
Figure IM-6: Performance Comparison between Hotel Britton and Good Hotel (after 2008)
Occupancy (%)
Hotel Britton
Good
Hotel
2006
2007
2008
2009
2010
53.4
39.2
39.3
55.4
57.8
ADR ($)
Hotel Britton
Good
Hotel
2006
2007
2008
2009
2010
$68.03
$67.31
$73.61
$63.95
$71.94
RevPAR ($)
Hotel Britton
Good
Hotel
2006
2007
2008
2009
2010
$36.33
$26.36
$28.92
$35.42
$41.60
Follow on: Based on your above analyses, do you feel that the Good Hotel concept worked?
Does the Good Hotel need Joie de Vivre or can it continue on its own?
If the discussion has become bogged down or students have had enough data mining for one
session, this follow-on question can spark some interesting debate on whether the concept
worked and if Good Hotel can stand on its own under new management. At this point, students
Teaching tip: Instructors should remind students of an important caveat: the
improvements in performance metrics may have been due to other factors, such as, general
improvements to the South of Market St. area in San Francisco, leisure and business
travelers’ ‘trading down’ to lower priced hotels during a major global economic recession,
and/or rival hotels not keeping pace with respect to improvements in amenities or eco-
labeling.
7. What is your recommendation for the new owner and its management team? Provide
implementation steps to support your recommendation. [5–10 minutes]
The objective of this question is to have students state which of the three options they
recommend: discontinue, continue as is, and expand. At this point, students can provide the
Given the performance success of the Good Hotel, the most popular recommendations will be to
continue or to expand the Good Hotel concept. In both options, one possible implementation step
Another recommendation would be to increase the marketing of the Good Hotel and any
additional properties that will follow the sustainability concept to the Lifestyles of Health and
“SCRM emphasizes the company’s reputation within its target market and takes place when
Interestingly, several students who said they had contacted the Good Hotel or tried to make
reservations there provided some additional implementation steps with regard to the Good Hotel
CASE EPILOGUE
Soon after the case was written, the following news was posted on 6/7/2010 SFGate.com:
At a time when "hotel" and "foreclosure" have become a fast word association, a string of Bay
San Francisco's Joie de Vivre Hospitality, the second-largest operator of boutique hotels in the
The investment amount was not disclosed, but I'm told Geolo Capital, also based in San
Francisco, is creating a $150 million equity fund for acquisitions and joint ventures that - with
This was most definitely not a distressed asset sale, said Joie de Vivre spokeswoman Lori
Still, is this not an inauspicious time to make such an investment? "Therein lies the opportunity,"
"We take the long view. Our bet is the long view prevails, and now is the time to get in."
References
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Annotated Suggested Further Readings for Students
Auerswald, P. (2009). Creating Social Value. Stanford Social Innovation Review, 7 (2),51-55.
Conventional entrepreneurs focus on financial value while social entrepreneurs focus on social
value. How does one define social value? Is it the value derived from the actual use of the
Nidumolu, R., Prahalad, C.K., Rangaswami, M.R. (2009). Why Sustainability is Now the Key
Driver of Innovation. Harvard Business Review, 87 (9), 57-64.
CEOs worry that the more eco-friendly they become, the greater their competitiveness
deteriorates. In a study of 30 large companies, research shows that a mission focused on
sustainability breeds organizational and technological innovations. Companies that focus on
Chan, W. (2009). Environmental Measures for Hotels’ Environmental Management Systems ISO
14001. International Journal of Contemporary Hospitality Management, 21 (5), 542-560.
DOI:10.1108.09596110967791
While implementation of Environmental Management Systems (EMS) has gained popularity, the
environmental measured used as part of EMS have not been tested to prove the validity of the
Moisander, J. (2007). Motivational Complexity of Green Consumerism. International Journal of
Consumer Studies, 31, 404-409. DOI:10.111/j.1470-6431.2007.00586.x
Environmental focused behavior involves motivational conflicts between environmental
Dolan, P. (2002). The Sustainability of “Sustainable Consumption”. Journal of Macromarketing,
22 (2), 170-181. DOI:10.1177/0276146702238220
cultural influences that shape consumption practices.
Oates, C., McDonald, S., Alevizou, P., Hwang, K., Young, W., & McMorland, L.. (2008).
Marketing Sustainability: Use of Information Sources and Degrees of voluntary Simplicity.
Journal of Marketing Communications, 14 (5), 351-365. DOI:10.1080/13527260701869148
Mcdonald, S., Oates, C., Thyne, M., Alevizou, P., & McMorland, L. (2009). Comparing
Sustainable Consumption Patterns Across Product Sectors. International Journal of Consumer
Studies, 33, 137-145. DOI:10.111/j.1270-6431:2009.00155.x
Green and ethical consumption carries the assumptions that consumers who pay a premium for a
green consumer.
Henn, R. & Hoffman, A. (2008). Overcoming the Social and Psychological Barriers to Green
Building. Organization & Environment, 21 (4), 390-419. DOI:10.1177/1086026608326129
In the beginning of the green building movement, major opposition came primarily from
standard practice.
Esty, D.C. & Winston, A.S (2006). Green to Gold. Hoboken, New Jersey: John Wiley & Sons,
Inc.
CH7: Eco-Tracking allows companies to identify their big environmental impacts, understand
to help reinforce and redesign.
CH 9: Inspiring an eco-advantage culture requires a vision, reinforced by goals. Environmental
practices centered in strategic decision making incentives and accountability for the
environmental agenda and communicate at both internal and external audiences.
Inc.
The green strategy should complement traditional strategies. It should foster culture and action,
drive decisions and transform imitations and support actions focus on value that is cost effective.
