Peninsula Beverly Hills Case.pdf - The Anderson School at...

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Uday Karmarkar and Steven Kuo, of The Anderson School at UCLA, prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. The authors would like to acknowledge the Peninsula Beverly Hills staff, Al Barnes, and Professors David Lewin, Victor Tabbush, and George Yip of the Anderson School at UCLA. Copyright ©1996 by Uday Karmarkar and Steven Kuo. The Peninsula Beverly Hills Hotel Professor Uday Karmarkar and Steven Kuo The Anderson School at UCLA Mr. Anderson reached underneath his seat, searching for his briefcase. It had been a long flight, and even though the first class flight attendants had taken good care of him, he was exhausted. It was January 1996, and due to harsh weather conditions at the John F. Kennedy airport in New York, his plane had spent an hour on the tarmac waiting for clearance. His irritation compounded the slight nausea he felt during the choppy flight to Los Angeles, making it nearly impossible for him to concentrate on his work. Mr. Anderson was the chairman of a $500 million dollar company which was firmly in the grasp of a public relations and operations nightmare. One of his West Coast plants had experienced a terrible accident, an explosion which necessitated the evacuation of adjoining communities but which fortunately had not resulted in any loss of life. On a good day, Mr. Anderson displayed an intensely serious demeanor, and needless to say, on this day he was even more humorless. Leafing through his briefcase, Mr. Anderson retrieved his itinerary. A small glimmer of pleasure flickered across his face as he noted that his assistant had booked him into the Peninsula Beverly Hills hotel. In December of 1991, he had stayed at the Peninsula shortly after its opening and, disappointed by its service, had not returned. However, during his last trip to Los Angeles, he spent a night at the hotel on the recommendation of a well-traveled friend who assured him that the hotel had, over the past few years, become the best in the area. Mr. Anderson was so impressed with the Peninsula that he decided to try it again on this trip. It would be a true test of the hotel, as Mr. Anderson desperately needed perfectly trouble free accommodations to balance the chaos embroiling his professional life. Background and History In August 1988, the foundation of the Belvedere Hotel was laid. The developers, the Belvedere Partners, struggled for twelve years to buy two and a half acres of land and acquire the necessary permits, via extensive discussions with the city of Beverly Hills and various civic groups and constituencies. In the course of these discussions, the proposed hotel had been scaled The Anderson School at UCLA
Peninsula Beverly Hills Hotel 2 down from a 400 room, ten story hotel to a 200 room, four story building. The banks which financed the development insisted that the property be professionally managed. After a world-wide search for the right partners, the Peninsula group, which operated the world famous

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