Pestana Hotel Group

: North America expansion

Abstract

Pestana Hotel Group, the largest Portuguese hotel chain, celebrated in 2022 five decades of success in the hospitality sector. After years of solidifying its presence in Portugal, the company expanded its business outside Portuguese borders. For a long time, the company wanted to expand its U.S. operations, given the market’sattractiveness. In 2012, it announced its entry in Miami, and only in 2020 did it start the expansion process in New York City, through a unique entry mode – ground lease contracts. This dissertation aims to present students, through a pedagogical format, a real­life example of the process and challenges hotel companies face when pursuing an internationalization strategy in the U.S. market. Additionally, it addresses relevant frameworks on internationalization strategies, where students can apply what they learn in class and discuss the company current and future expansion strategy in U.S. market. To analyze the internationalization strategy of the company, primary and secondary dat a were gathered. For primary data, interviews with key contacts from the company were documented. Asforsecondary data was used Pestana reports, industry case studies, books, and online sources. The findings that motivated the company to reinforce its presence in U.S. is the market potential, the average daily rate, and strategic tourism destination.

Date of Award	24 Jan 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Cardeal (Supervisor)