The Westin and Ritz-Carlton: US hotel ventures in CARICOM countries

CARICOM

Westin in the Virgin Isles

One example of a successful United States-based business venture operating in a CARICOM country is the operation of the Westin in the Virgin Islands. Westin is one of nine brands owned by the Starwood Development Group, a New York-based company that develops, operates, manages, and licenses hotels (Starwood 2011). The company only owns seven percent of its hotels worldwide, while managing another forty-five percent of these properties and with the remaining forty-eight percent of Starwood hotels (including the Westin brand) operating as independently owned franchises (Starwood 2011). This business model is likely one of the primary reasons behind the success of Westin's operations in the Virgin Islands, as it enables a great deal of flexibility and the automatic inclusion of local values and enticements (through local ownership) in the operation of its businesses (Starwood 2011).

An additional factor in the success of this operation is the diversity of offerings and the market segmentation that this particular Westin location has achieved (Westin 2011). With both villas and more traditional hotel/resort accommodations offered, this Westin location can provide a range of services at varying levels of luxury and at varying price points (Westin 2011). With a range of other amenities, this location has also marketed itself towards large groups of business travelers, wedding parties for "destination weddings," as well as honeymooners and other people simply on vacation (Westin 2011). Diversification and independence are thus marks of this successful foreign business venture.

Guyana and Shell Oil

The Royal Dutch Shell company has begun exploratory operations searching for new places to locate drilling and oil well operations, having purchased exploration rights for specific areas as well as certain percentages of interest in private companies operating in the area, as well as in Guyana's nationalized oil exploration and refining corporation (Hoyos 2009). The success of this venture has yet to be seen, and is far more dependent on the oil and natural gas deposits discovered (or not discovered) as the company continues its operations in this region; while many other companies have shown an interest in this region and therefore it is reasonable to believe that the venture will be profitable, this has yet to be borne out by real results (Hoyos 2009). What can be seen already, however, is that the company has already succeeded in ingratiating itself with the local government and regulatory authorities, and is also in a position of reasonable trust with the local community (Hoyos 2009).

Shell also operates retail gas stations in the country, and though this division of Shell is not the same as the exploratory and drilling branch of the company the brand recognition and trust will likely continue to serve the company well in all of its international operations (Shell 2011). In Guyana particularly, Shell does not have particularly expansive retail operations, but operates on a franchise basis that allows for local control and regulation on a much more direct and simplified basis while still promoting the company's interests (Shell 2011). Assuming sufficient deposits are found, this operation will be highly successful.