Hotel openings in Cape Town between 2008 and 2010: Critical success factors and challenges

Abstract

This study investigated the critical success factors to be considered when opening a hotel, including those in Cape Town between 2008 and 2010, and also considered the major challenges experienced during the initial period of a hotel’s life cycle. Further, the study assessed whether there were significant differences between the success factors and challenges experienced in corporately owned- versus privately owned hotels, or large versus small accommodation establishments. The findings revealed no significant differences between corporately owned hotels versus privately owned hotels or large versus small hotels. The research approach was inductive and the purpose exploratory, thus it was a qualitative study. Data were obtained by interviewing hotel managers of 4- and 5 star hotels that opened between 2008 and 2010 in Cape Town, prior to the FIFA Soccer World Cup. The interview results were compared and analysed, and the results discussed relative to the research topic. The study identified the critical success factors for opening hotels and the secondary success factors or advantages that may be encountered and applied when opening hotels. The research should be of interest to practitioners and operators who could apply the insights gained from these interviews in their pre-opening strategies, and to academics in the fields of hotel management, general management, strategic planning, project management and new business development.