Majestica Hotels Inc., a leading European operator of luxury hotels, attempts were made to reach an agreement with Commercial Properties of Shanghai over the management contract for a new hotel in Shanghai. A number of issues require resolution for the deal to proceed, including the length of the contract term, name, and staffing. Majestica hesitated further concessions for fear that this might jeopardize its service culture to make probably the key to success in this industry. The debate was wh … Read more »

Majestica Hotels Inc., a leading European operator of luxury hotels, attempts were made to reach an agreement with Commercial Properties of Shanghai over the management contract for a new hotel in Shanghai. A number of issues require resolution for the deal to proceed, including the length of the contract term, name, and staffing. Majestica hesitated further concessions for fear that this might jeopardize its service culture to make probably the key to success in this industry. At issue was whether Majestica should pursue a contingency plan approach and relax its operating philosophy, or stick to their principles, even if it meant not to enter a lucrative market.
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from
Paul W. Beamish,
Jane Lu
Source: Ivey Publishing
17 pages.
Release Date: 20, April 2005. Prod #: 905M35-PDF-ENG
Majestica Hotel Shanghai? HBR case solution

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