City Lodge Hotel Group: Redefining Segments and Brands

Author :

Dr Yvonne Saini & Herb Payne

Pages :

23

Product Type :

Case

Reference # :

WBS-2015-16

Teaching Note :

not available

Institute:

Wits Business School - University of the Witwatersrand

Setting:

South Africa

Year:

2015

Keywords:

Marketing, Marketing Strategy, Branding

Summary/Abstract:

In 1985, the market regarded Hans Enderle as foolhardy when he resigned from the helm of one of South Africa’s leading hotel chains to launch a new concept in short-stay accommodation. However, by 1990, his City Lodge select service hotel concept boasted seven hotels, with 1 000 rooms. By 2015, the hotel group’s portfolio had risen to 55 hotels and annual turnover had reached more than R1 billion. However, growing competition and increasing customisation within the hotel industry meant that in early November 2015, current group chief executive (CE), Clifford Ross, had concerns about the clarity of the group’s brand and whether it was losing its competitive edge.