Regal Carnation Hotel Case

3803 words 16 pages
Regal Carnation Hotel (Guam)
Case Analysis

Case Introduction The island of Guam is an unincorporated territory of the United States located in the Philippine Sea. Ruled by the Spanish until 1898, Guam was ceded to the United States and briefly occupied by Japan between 1941 and 1944. Of strategic significance during the Second World War, more than 18,000 Japanese and 1,800 U.S. marines died in the U.S. retaking of the island. Following the war, the Guam Organic Act of 1950 provided for U.S. citizenship among residents and legitimized a continuous U.S. military presence on the island. Currently Guam is home to 140,000 civilians and 7,000 military personnel that live on and around several U.S. Naval, Coast Guard, and Air Force
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Similarly, first impressions are disappointing, with a poorly furnished lobby and unprofessional front desk staff geared more to Asian, and particularly Japanese, visitors. Similarly, the rooms are disappointing, especially when based on the photos published on the website. Plagued with old beds and carpets, broken plumbing/air conditioning, few TV channels, thin walls, dysfunctional room service, and ineffective, if not rude, housekeeping staff, there is not a single positive to the quality of the rooms. Similarly, the facilities outside of the room are little better. The public areas are dirty and the pool so filthy as to be rendered unusable. Indeed, the only bright spot is the gym, which contains the latest fitness equipment. The in-house dining options also do not meet the expectations created by the website. The hotel had outsourced the food and beverage offerings and rented out prime commercial space within the building. Unfortunately, two of the advertised restaurants are closed. The remaining available choices consist of a Japanese restaurant and a well-known American mainland-based Italian restaurant chain. Prices at both restaurants are above normal while the quality and service are below par. In addition, even the complementary breakfast left little to be desired, located in a poorly appointed room and running out of food quite early in the morning. Similarly, the in-house shopping and services had seen better days. The in-house