The Crown Plaza Hotel in Chicago, Illinois, is a renowned hotel that has been in operation for many years. As with any hospitality establishment, ownership plays a crucial role in its success. In this article, we will explore the history and current ownership of the Crown Plaza Hotel in Chicago, as well as how ownership structures in the hospitality industry impact hotel operations. who owns the crown plaza hotel in chicago Illinois? We will also discuss the Crown Plaza Hotel brand, the significance of location in the hotel industry, the role of hotel management companies in ownership, investment in the hospitality industry, legal issues in hotel ownership, corporate social responsibility, sustainability efforts, competition in the hospitality industry, trends in hotel ownership, and the challenges faced by hotel owners. Finally, we will provide a detailed case study of the Crown Plaza Hotel in Chicago, illustrating how ownership has impacted the hotel’s performance.
Overview of the Crown Plaza Hotel in Chicago Illinois:
The Crown Plaza Hotel in Chicago is located in the heart of downtown and offers a range of amenities to its guests, including a fitness center, business center, and several restaurants. The hotel has over 1,200 rooms and suites, making it one of the largest hotels in the city. Its prime location near the Magnificent Mile and other popular tourist attractions makes it a popular choice for both business and leisure travelers.
The significance of ownership in the hospitality industry:
Ownership is a critical aspect of the hospitality industry as it impacts the decision-making process and overall success of a hotel. The owner or owners are responsible for setting the vision and direction of the hotel, including its branding, marketing, and pricing strategies. Ownership also affects the hotel’s financial performance, as owners must make investments in the property and ensure that it remains profitable.
The History of the Crown Plaza Hotel in Chicago Illinois
The Crown Plaza Hotel in Chicago, Illinois, has a rich history dating back to the 1920s. The hotel has undergone several renovations and changes in ownership since its establishment. In this section, we’ll explore the history of the Crown Plaza Hotel in Chicago, Illinois.
Establishment of the Hotel
The Crown Plaza Hotel in Chicago, Illinois, was first established in 1928 as the “Emblem Hotel.” It was built by J. W. Wendt and designed by the architect firm Rissman & Hirschfeld. The hotel was built in the Renaissance Revival style, with a total of 29 floors and 1,155 guest rooms.
Major Renovations and Changes in Ownership
Over the years, the Crown Plaza Hotel has undergone several renovations to keep up with the changing times. In 1960, the hotel was renamed the “Sheraton-Chicago Hotel” after being acquired by Sheraton Hotels & Resorts. The hotel underwent major renovations in 1975, which included the addition of a new tower.
In 1993, the hotel was renamed the “Wyndham Chicago” after being acquired by Wyndham Hotels & Resorts. The hotel underwent another renovation in 1999, which included the addition of a new fitness center and a redesign of the guest rooms.
Ownership of the Crown Plaza Hotel in Chicago Illinois
Now that we have explored the history of the Crown Plaza Hotel in Chicago Illinois, let’s dive into its ownership.
Current ownership
As of 2023, the Crown Plaza Hotel in Chicago Illinois is owned by InterContinental Hotels Group (IHG), a British multinational hospitality company. IHG owns several other hotel brands, including Holiday Inn, InterContinental, and Kimpton Hotels & Restaurants.
Previous ownership and changes in ownership
The hotel’s ownership has changed hands several times throughout its history. It was originally opened in 1972 by the prominent Pritzker family, who also owned the Hyatt Hotel chain. In 1989, the Pritzkers sold the hotel to a Japanese corporation, which in turn sold it to a Hong Kong-based company in 1998. IHG acquired the hotel in 2003.
How ownership affects hotel operations
The ownership structure of a hotel can have a significant impact on its operations. In the case of the Crown Plaza Hotel in Chicago Illinois, being owned by a large multinational hospitality company like IHG provides access to resources and expertise that might not be available to independent hotels or smaller chains. This can translate into better marketing, stronger brand recognition, and more efficient operations.
Ownership Structures in the Hospitality Industry
When it comes to hotel ownership, there are three primary ownership structures in the hospitality industry: franchise ownership, chain ownership, and independent ownership. Each of these ownership structures operates differently, and understanding them can be helpful in determining the best ownership option for a hotel.
Franchise ownership
Franchise ownership is a common form of hotel ownership in the hospitality industry. In franchise ownership, a hotel owner operates a hotel under a franchise agreement with a larger hotel chain. The hotel owner pays a fee to the chain to use its brand name and to access its marketing, reservation, and management systems. In exchange, the hotel owner receives training, marketing support, and other benefits.
Chain ownership
In chain ownership, a hotel owner operates a hotel that is part of a larger hotel chain. The hotel owner has full control over the hotel’s operations but must comply with the chain’s brand standards and policies. Chain ownership allows hotel owners to benefit from the chain’s marketing, reservation, and management systems while maintaining more independence than in franchise ownership.
Independent ownership
Independent ownership is when a hotel owner operates a hotel independently, without the support or affiliation of a larger hotel chain. Independent hotel owners have complete control over their hotel’s operations, but they must build their own brand, marketing, reservation, and management systems.
How each ownership structure works
Each ownership structure operates differently, and the benefits and drawbacks of each depend on the individual hotel owner’s goals and circumstances. Franchise ownership can provide access to established brands, reservation systems, and marketing support, but it also comes with significant fees and restrictions. Chain ownership offers some of the benefits of franchise ownership while allowing for more independence, but it can still come with brand standards and policies that may not align with the hotel owner’s vision. Independent ownership provides complete control over the hotel’s operations but requires significant investment in building a brand and marketing, reservation, and management systems.
Ultimately, the best ownership structure for a hotel depends on the owner’s goals, preferences, and circumstances. In some cases, it may be beneficial to align with an established brand to gain access to its marketing and reservation systems, while in others, independent ownership may be the best option for maintaining full control over the hotel’s operations.
Crown Plaza Hotel Brand
The Crown Plaza Hotel brand is a globally recognized name in the hospitality industry. It is known for its luxury accommodations, exceptional customer service, and prime locations. The brand was established in 1983 by the InterContinental Hotels Group (IHG), one of the largest hotel chains in the world. Since its inception, the Crown Plaza brand has expanded to more than 400 properties in over 70 countries.
History and Development of the Crown Plaza Hotel Brand
The Crown Plaza brand began as a division of Holiday Inn, which was also owned by IHG. It was created to cater to the needs of business travelers who required more upscale accommodations. The brand was initially named “Holiday Inn Crowne Plaza” but was later changed to “Crowne Plaza” in 1994.
Over the years, the Crown Plaza brand has undergone several changes and improvements to keep up with the changing needs and preferences of travelers. The brand’s focus on luxury and sophistication has remained constant, but it has also incorporated modern amenities and technologies to enhance the guest experience.
How Ownership Affects the Crown Plaza Hotel Brand
The ownership of a hotel can have a significant impact on its brand reputation and performance. The Crown Plaza brand is owned by IHG, a globally recognized hotel chain. The reputation and success of IHG as a company reflect on the Crown Plaza brand, which can positively impact the brand’s perception and performance.
Current Status and Performance of the Crown Plaza Hotel Brand
The Crown Plaza brand continues to thrive in the hospitality industry, with more than 400 properties worldwide. The brand’s focus on luxury accommodations and exceptional customer service has helped it maintain its reputation and attract a loyal customer base. The brand has also embraced sustainability initiatives, including reducing water and energy usage and incorporating eco-friendly products and practices.
In recent years, the Crown Plaza brand has also introduced new concepts and services to meet the changing needs of travelers. For example, the brand has introduced flexible meeting spaces, mobile check-in, and a 24/7 fitness center. These innovations have helped the brand stay relevant and competitive in the market.
Overall, the Crown Plaza brand’s current status and performance are a testament to its commitment to providing exceptional guest experiences and evolving to meet the needs of modern travelers.
The Importance of Location in the Hotel Industry
The location of a hotel can be a critical factor in its success. The Crown Plaza Hotel in Chicago Illinois is situated in a prime location, making it a popular choice for travelers visiting the city. In this section, we will discuss the significance of location in the hotel industry, specifically how it impacts the Crown Plaza Hotel brand.
Significance of the Chicago Location to the Crown Plaza Hotel Brand
Chicago is a bustling city, home to numerous tourist attractions and business centers. The Crown Plaza Hotel’s location in the heart of downtown Chicago provides convenient access to these attractions, making it a popular choice for both business and leisure travelers.
The Impact of Location on Hotel Ownership and Operations
Location plays a crucial role in the success of a hotel. It affects everything from the price of the property to the amenities offered. Hotel owners must carefully consider location when choosing a property to purchase, as it can significantly impact the hotel’s success.
The Role of Hotel Management Companies in Ownership
Hotel management companies play a crucial role in the ownership of hotels. These companies are responsible for the day-to-day operations of the hotel, including staffing, training, marketing, and revenue management. They work closely with the hotel owners to ensure that the property is performing well and meeting its financial goals.
What is a hotel management company?
A hotel management company is a third-party organization that is hired by hotel owners to manage their properties. These companies provide a range of services, including operational management, sales and marketing, and financial management. They are responsible for ensuring that the hotel is operating efficiently and profitably.
How hotel management companies operate
Hotel management companies operate by entering into management agreements with hotel owners. These agreements define the scope of services that the management company will provide and the fees that they will receive in exchange. The management company is typically paid a percentage of the hotel’s revenue or a base fee plus a performance-based bonus.
The relationship between hotel management companies and hotel owners
The relationship between hotel management companies and hotel owners is a critical one. The success of the hotel depends on the effectiveness of this relationship. Hotel owners need to find a management company that they can trust to operate their property efficiently and effectively. The management company, on the other hand, needs to work closely with the owner to understand their goals and priorities.
In some cases, hotel owners may also be involved in the day-to-day operations of the hotel. They may have their own management team in place and work with the hotel management company to ensure that everything is running smoothly.
Ultimately, the success of the hotel depends on the ability of the management company and the owner to work together to achieve their common goals. This requires a high level of trust, communication, and collaboration.
Investment in the Hospitality Industry
The hospitality industry is a highly competitive and capital-intensive sector that requires significant investment for growth and expansion. Hotel ownership and management require significant amounts of financial resources to acquire, develop, and maintain the hotel’s operations.
Financing hotel acquisitions
Financing hotel acquisitions can be challenging due to the high costs involved, and many investors are often required to seek funding from outside sources. Many lenders are often hesitant to lend to the hospitality industry due to the industry’s inherent volatility and risk, which makes it challenging to secure financing.
To secure financing, investors often need to have a significant amount of capital or collateral to support the loan. Additionally, they may need to show proof of the hotel’s revenue and performance to demonstrate its profitability and viability.
The financial benefits of hotel ownership
Despite the challenges associated with financing, hotel ownership can be lucrative and profitable for investors. Owning a hotel can provide a steady stream of income from room rentals, restaurant sales, and other amenities offered by the hotel.
Additionally, hotels can provide a significant return on investment (ROI) if the property is managed and operated efficiently. Many hotel owners also benefit from long-term appreciation, as the value of the property often increases over time.
The risks involved in hotel ownership
While hotel ownership can be a profitable venture, it also carries inherent risks. The hospitality industry is highly susceptible to economic fluctuations, changes in consumer preferences, and natural disasters, which can all impact the hotel’s profitability.
Additionally, hotels are heavily regulated, and owners need to comply with various legal and regulatory requirements, including building codes, health and safety regulations, and environmental standards.
As a result, hotel owners need to have a thorough understanding of the risks involved and have a solid plan in place to mitigate these risks to ensure the long-term success of the property.
Legal Issues in Hotel Ownership
Hotel ownership comes with various legal requirements and considerations that must be met to operate legally. It is crucial to understand the legal issues involved in hotel ownership to avoid costly mistakes and ensure compliance with local and national laws. Some of the critical legal issues to consider when owning a hotel include property law, licenses, permits, and the role of attorneys.
Property law and hotel ownership
Property law is a crucial aspect of hotel ownership. Property law governs the ownership, use, and transfer of real estate properties such as hotels. Hotel owners must comply with property laws and regulations to avoid lawsuits and other legal disputes. Property law covers issues such as property ownership, property transfers, zoning regulations, and taxes.
Licenses and permits required for hotel ownership
Hotel owners must obtain various licenses and permits to operate legally. These licenses and permits vary depending on the hotel’s location and type of services offered. Some of the licenses and permits required for hotel ownership include business permits, health permits, building permits, and liquor licenses. Failure to obtain the necessary licenses and permits can lead to penalties and legal actions.
The role of attorneys in hotel ownership
Attorneys play a crucial role in hotel ownership. Hotel owners must consult with attorneys to ensure compliance with local and national laws, protect their interests, and avoid legal disputes. Attorneys can assist hotel owners in drafting contracts, resolving disputes, and navigating complex legal issues.
Corporate Social Responsibility in Hotel Ownership
Corporate social responsibility (CSR) refers to the efforts made by businesses to operate in a way that is not only profitable but also ethical and socially responsible. The hospitality industry is one of the most visible industries in terms of its social and environmental impact, and as such, it has an important role to play in CSR. Hotel owners have a responsibility to ensure that their operations are environmentally sustainable and that they are contributing to the local community in a positive way.
The importance of corporate social responsibility in the hospitality industry
In recent years, there has been a growing recognition of the importance of corporate social responsibility in the hospitality industry. Consumers are becoming increasingly aware of the impact of their choices on the environment and on society, and they are looking for businesses that share their values. By demonstrating a commitment to CSR, hotels can differentiate themselves from their competitors and attract a more socially and environmentally conscious customer base.
How ownership affects corporate social responsibility initiatives
The way a hotel is owned can have a significant impact on its ability to implement CSR initiatives. In the case of chain hotels, for example, decisions about CSR may be made at the corporate level, with little input from individual hotel owners. On the other hand, independent hotels may have more flexibility to implement their own CSR initiatives, but they may also have fewer resources to devote to these efforts.
Examples of corporate social responsibility initiatives in the hospitality industry
Many hotels are taking steps to reduce their environmental impact and contribute to the local community. Some common CSR initiatives in the hospitality industry include:
-Implementing energy-saving measures, such as using LED lighting and installing low-flow showerheads and toilets
-Sourcing food and supplies from local and sustainable sources
-Providing guests with the option to donate to local charities or participate in community service projects
-Offering employee training and development programs to support the local workforce
-Supporting local cultural and artistic initiatives
Sustainability in Hotel Ownership
Sustainability is a growing concern in the hospitality industry as more people become aware of the impact of tourism on the environment. Hotel ownership plays a crucial role in promoting sustainable practices in the industry. In this section, we’ll discuss the role of hotel ownership in sustainability efforts, strategies for sustainable hotel operations, and examples of sustainable hotel ownership.
The Role of Hotel Ownership in Sustainability Efforts
Hotel ownership can have a significant impact on sustainability efforts. As the owners of the property, they have the power to implement environmentally friendly policies and practices. Some of the ways hotel ownership can promote sustainability include:
Implementing eco-friendly practices: Hotel owners can adopt eco-friendly practices such as reducing energy and water consumption, using renewable energy sources, recycling, and reducing waste.
Supporting local communities: Hotel owners can support local communities by sourcing local produce, supporting local businesses, and promoting cultural activities.
Educating guests: Hotel owners can educate guests about sustainable practices and encourage them to participate in activities that promote sustainability.
Strategies for Sustainable Hotel Operations
There are several strategies hotel owners can adopt to promote sustainable hotel operations. Some of the most effective strategies include:
Energy conservation: Hotel owners can conserve energy by using energy-efficient lighting, heating and cooling systems, and appliances.
Water conservation: Hotel owners can conserve water by installing low-flow fixtures and reducing water consumption through practices such as linen reuse programs.
Waste reduction: Hotel owners can reduce waste by recycling, composting, and reducing packaging.
Sustainable sourcing: Hotel owners can source environmentally friendly products and materials for their hotel operations.
Examples of Sustainable Hotel Ownership
Many hotel owners have embraced sustainability and implemented practices that promote environmental stewardship. For example, Marriott International has set a goal of reducing water usage by 15% and carbon emissions by 30% by 2025. The company has also implemented sustainable sourcing practices for its hotel operations.
Another example is the Hilton Hotels & Resorts, which has set a goal of reducing its carbon emissions by 61% by 2030. The company has also implemented sustainable sourcing practices and has partnered with organizations such as Clean the World to recycle soap and other hygiene products.
Competition in the Hospitality Industry
Competition in the hospitality industry is fierce, with numerous hotels vying for customers in any given location. Hotel ownership plays a significant role in determining a hotel’s competitiveness. Different ownership structures have unique strengths and weaknesses, which can impact a hotel’s ability to compete effectively. In this section, we will examine the competitive landscape of the hospitality industry and explore how ownership affects competition.
Competitive Landscape of the Hospitality Industry
The hospitality industry is highly competitive, with various hotels competing for market share in any given location. Some of the factors that influence competition in the hospitality industry include price, location, brand reputation, amenities, and service quality. With the advent of online travel agencies and other booking platforms, customers have more options than ever before, making it crucial for hotels to differentiate themselves from their competitors.
How Ownership Affects Competition in the Hospitality Industry
The type of ownership structure a hotel has can significantly impact its competitiveness. For instance, independent hotels may have a harder time competing with chain hotels because chain hotels benefit from economies of scale and brand recognition. In contrast, independent hotels may offer a more personalized and unique experience that chain hotels cannot replicate. Franchise hotels also have access to the brand recognition and resources of the franchisor, which can give them an advantage over independent hotels. However, franchise hotels also have to adhere to strict brand standards, which can limit their ability to differentiate themselves from other franchise hotels in the same brand.
Strategies for Staying Competitive in the Hospitality Industry
To stay competitive in the hospitality industry, hotels must differentiate themselves from their competitors in meaningful ways. Some strategies hotels can use to stay competitive include:
1. Offering unique amenities or services that set them apart from their competitors.
2. Providing exceptional customer service that exceeds customers’ expectations.
3. Invest in marketing and advertising to increase brand awareness and attract customers.
4. Emphasizing their location as a selling point and highlighting nearby attractions or activities.
5. Offering competitive pricing or unique packages that provide added value to customers.
Ultimately, staying competitive in the hospitality industry requires a combination of factors, including the ownership structure, location, amenities, and service quality. Hotel owners and operators must continually assess their competitive landscape and adapt their strategies to stay ahead of their competitors.
Trends in Hotel Ownership
The hospitality industry is constantly evolving, and hotel ownership is no exception. Here are some of the latest trends in hotel ownership:
Franchising: Franchising has become a popular way for hotel owners to expand their businesses without having to invest in multiple properties. Franchising allows owners to leverage the brand recognition and marketing power of larger hotel chains while still maintaining ownership of their property.
Boutique hotels: Boutique hotels have become increasingly popular in recent years, with many travelers seeking unique, personalized experiences over traditional chain hotels. Boutique hotels are often independently owned and operated, and offer guests a more intimate and curated experience.
Technology: The use of technology in hotels has exploded in recent years, with many hotel owners investing in mobile apps, keyless entry systems, and other technologies to enhance the guest experience and streamline operations.
Alternative accommodations: With the rise of platforms like Airbnb and HomeAway, alternative accommodations have become a popular option for travelers. Hotel owners are responding by diversifying their offerings, with many now offering short-term rental units and other alternative accommodations.
Green initiatives: Sustainability and environmental responsibility have become increasingly important to consumers, and hotel owners are responding by implementing green initiatives and sustainable practices. This includes everything from energy-efficient lighting and HVAC systems to recycling programs and eco-friendly amenities.
These are just a few of the trends shaping the future of hotel ownership. As the hospitality industry continues to evolve, owners will need to stay on top of these trends and adapt their strategies to remain competitive and successful.
Challenges in Hotel Ownership
While hotel ownership can be a lucrative investment, it also comes with its own set of challenges. Here are some of the key challenges faced by hotel owners:
Economic Conditions: Hotel ownership is highly dependent on the overall economic conditions of the region or country. Economic downturns can have a significant impact on occupancy rates, revenue, and profitability.
Labor Costs: Labor is one of the largest expenses for hotels, and labor costs can vary depending on the location, unionization, and local minimum wage laws. Managing labor costs while maintaining high levels of service can be a significant challenge.
Competition: As mentioned earlier, competition is intense in the hospitality industry, and hotels need to constantly innovate and differentiate themselves to stay ahead of the competition.
Technology: Technology is rapidly changing the hospitality industry, and hotels need to adapt to new technologies to remain competitive. This can include investments in new booking systems, mobile apps, and other guest-facing technologies.
Environmental Regulations: Many countries have strict regulations around environmental sustainability, and hotels need to ensure that they are compliant with these regulations. This can include reducing energy consumption, implementing waste management practices, and using environmentally friendly products.
Safety and Security: Ensuring the safety and security of guests and employees is a top priority for hotel owners. This can involve investing in security systems, training staff on safety procedures, and developing emergency response plans.
Case Study: The Crown Plaza Hotel in Chicago Illinois
The Crown Plaza Hotel in Chicago Illinois has a rich history, ownership structure, and unique challenges in the competitive hospitality industry. The hotel is located in the heart of Chicago’s downtown area, close to popular tourist destinations, shopping centers, and business districts.
The hotel was first opened in 1968 and has undergone several renovations and rebranding over the years. The most recent renovation took place in 2019, which saw the hotel’s guest rooms and public areas upgraded to meet modern standards.
The hotel is owned by a joint venture between two real estate investment trusts, Pebblebrook Hotel Trust and Ashford Hospitality Trust. The joint venture was formed in 2019 and owns several hotels across the United States.
The Crown Plaza Hotel is part of the InterContinental Hotels Group, one of the world’s leading hotel companies. The InterContinental Hotels Group has several brands under its portfolio, including Crowne Plaza, Holiday Inn, and InterContinental Hotels and Resorts.
The location of the Crown Plaza Hotel in Chicago Illinois is critical to its success. The hotel’s proximity to popular tourist destinations and business districts ensures a steady flow of guests throughout the year. The hotel’s management company, Aimbridge Hospitality, plays a crucial role in ensuring the hotel maintains its competitive edge in the market.
Investment in the hospitality industry requires a considerable amount of capital, and legal issues such as zoning and licensing can pose challenges for hotel owners. However, hotel ownership also presents an opportunity for companies to demonstrate their corporate social responsibility and sustainability efforts.
The Crown Plaza Hotel in Chicago Illinois has implemented several sustainability initiatives, including energy-efficient lighting, water conservation measures, and recycling programs.
The hotel faces stiff competition from other hotels in the downtown Chicago area, and maintaining a competitive edge requires constant innovation and adaptation to changing trends in the hospitality industry.
Conclusion
In conclusion, hotel ownership is a complex and dynamic field that requires careful planning, investment, and management. As demonstrated through the case study of the Crown Plaza Hotel in Chicago, the success of a hotel largely depends on its location, brand, ownership structure, and management.
While the hospitality industry continues to face challenges such as increasing competition, evolving consumer preferences, and changing legal and regulatory requirements, hotel owners can stay ahead of the curve by staying attuned to industry trends and investing in sustainable and socially responsible practices.
Overall, hotel ownership can be a rewarding and lucrative venture for those who are willing to put in the time and effort to make their property stand out in a crowded marketplace. With a solid understanding of the industry and a commitment to excellence, hotel owners can create a profitable and sustainable business that provides an enjoyable and memorable experience for their guests.
FAQs
What is the most important factor to consider when investing in a hotel?
The location of the hotel is the most important factor to consider when investing in the hospitality industry. A good location can attract more guests and generate higher revenues.
What are some common legal issues that hotel owners may face?
Hotel owners may face legal issues related to employment law, contract disputes, and compliance with local regulations and ordinances.
What is corporate social responsibility in hotel ownership?
Corporate social responsibility in hotel ownership refers to the commitment of hotel owners to operate their properties in a socially and environmentally responsible manner.
How can hotels address sustainability concerns?
Hotels can address sustainability concerns by implementing energy-efficient technologies, reducing waste, conserving water, and using eco-friendly materials.
What are some current trends in hotel ownership?
Current trends in hotel ownership include the rise of boutique hotels, the use of technology to enhance the guest experience, and an increased focus on wellness and sustainability.
What are some of the biggest challenges facing hotel owners today?
Some of the biggest challenges facing hotel owners today include increasing competition, rising labor costs, and changing consumer preferences and expectations.