Golden Tulip Hospitality Group was formed in 1962 by a group of Dutch hoteliers, with a small group of properties in the Netherlands. The group's first major expansion came in 1975, when it entered into an association with KLM, the Dutch flag carrier. This allowed the group to expand into many of KLM's destinations, spreading the chain around the world. The company went through a succession of ownership and management changes over the next couple of decades, eventually ending up in an alliance with the German TOP International to form the current Golden Tulip in 2001. The company today manages hotels around the world, some of which it owns or franchises, and others which have external ownership but strategic alliances with Golden Tulip. The current entity has worked to bring its hotels under the Golden Tulip brand, and in recent years has also begun to launch other brands for bars, clubs and loyalty programs (Golden Tulip, 2010). The company struggled, however, and went into receivership in 2009. At that point, Starwood Capital Group, an American investment firm that owns Starwood Hotels, bought 240 of the 260 Golden Tulip properties (Kar-Gupta, 2009)
Current Strategy
Golden Tulip current competes as a mid-level hotel, in roughly the same space as Intercontinental, Accor and Marriott (Kar-Gupta, 2009). The company has hotels in a couple dozen countries around the world, with properties as scattered as Ghana, Kazakhstan, Thailand...
High-road competition focuses on service quality (Working for America Institute 2004), which means developing property in prime locations and the regular upkeep and upgrade of property. Hotels using high-road competition charge high room rates but provide top-class amenities, satisfying customer service and on-site attractions, such as restaurants, lounges, conference sites, gift shops and concierge service to attract customers and incline them to spend. Upper segments are likelier to engage in
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