Hotel Online  Special Report

 Market Positioning Group Opens Its First Hotel, 
The Beach House in Barbuda


BARBUDA, West Indies (September 2004) – New York-based hotel management company MPg, or Market Positioning Group, made its first foray into the marketplace this spring with the opening of its inaugural hotel, The Beach House in Barbuda. The recently opened, 21-room property exemplifies MPg’s three core principles of a consolidated chain of command, highly exacting service and design elements that reflect the local culture and incorporate modern European touches. Collectively, these values achieve the company’s primary objective of delivering sustainable profitability to small hotels that have not yet realized their full 
The Beach House in Barbuda
Palmetto Point
Barabuda, West Indies
growth potential.

Launched by Marcello Pigozzo, Chairman and Chief Operating Officer, in 2003, MPg strives to achieve higher, long-term yields for the hotel by carefully managing the financial resources contributed by the property toward hardware and software upgrades, while facilitating any additionally required funding through holding company, CCI.

In determining the magnitude of the investment necessary to reposition the property, MPg evaluates the expenditures necessary to refurbish and analyzes the outlay essential to enriching the hotel’s service. Optimizing the investment in hardware and software allows MPg to maintain budgetary targets. Yet, the core principle of MPg’s management style is rooted in maximizing the investment in highly trained staff with a vested interest in continuing professional development and financial results.

The focus on exacting service is a function of the efficiency with which MPg manages the hotel. A team of frontline employees empowered to deliver service at levels stipulated by individual guests serves as both a tool for capturing repeat business and a means of eliminating high turnover rates among staff. To accomplish this duel effect, MPg has conceptualized an organizational process that begins by inverting the pyramid of command, putting guests and frontline staff in the highest positions of authority.  The second phase of the progression --condensing the chain of command and abolishing middle management positions--ensures that employees can promptly and directly cater to guests while simultaneously reducing overhead costs in terms of superfluous payroll demands. The supervision normally provided by second tier management is unwarranted after MPg carefully selects and trains quality personnel, capitalizing on the experiences and skills of each individual. MPg then establishes an incentive system that further empowers frontline employees to make decisions and deliver personalized service.

The service criteria employed by MPg aims to generate a loyal following among a specified market segment that will produce a durable return on the hotel’s investment. After identifying this particular niche of the consumer travel market, MPg endeavors to attract the market sector by redesigning the hotel to an aesthetic standard not common to other hotels in the same market segment. By incorporating elements of the local culture and surroundings, while building upon them through the use of modern European amenities, MPg creates an environment of pure comfort and simple grace. The integration of aspects native to the destination also functions as an additional cost-cutting measure since it diminishes the expenses involved in shipping and importation taxes.

Curtailing expenditures and concurrently bolstering the hotel’s long-term earning capacity are the foremost objectives behind MPg’s philosophy of ‘rethinking rather than reengineering’ the business. The strategy behind the concept is to improve the product and thus, sustainably improve the profit margins through consumer, staff and investor loyalty.

The Beach House in Barbuda
Barbuda, West Indies
Also See: Caribbean Hotels & Resorts: The Seasonality Issue / Petr Kulic / February 2004
Marcello Pigozzo Leaves Sol Melia for Chief Executive Officer Position at Elegant Hotels / July 2001

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