Hotel SWOT Analysis Explained with 3 Detailed Examples

Whether you own a small, family hotel, a medium-sized hotel, or you are on the managerial team of a big hotel, you will benefit from conducting a hotel SWOT analysis. This strategic planning framework is a great way to gather and inspect all the factors that influence your business, regardless if they are internal or external. Even a big, multinational hotel can put this tool to great use. That’s why, you can find a SWOT analysis of Hilton Hotel here.

In this article, we are going to inform you of what a hotel SWOT analysis is and give you three specific hotel SWOT analysis examples for some of the most well-known hotel chains in the world. Let’s dive in.

What Is the Hotel SWOT Analysis

The hotel SWOT analysis is a strategic planning framework that surveys the strengths, weaknesses, opportunities, and threats that the hotel is facing. This is a very insightful tool that uncovers all the factors that make the business successful, but also all the elements that need improvement. At the same time, the hotel SWOT analysis defines the opportunities that are found in the hotel’s environment and the potential threats that might hinder its operations. For instance, a SWOT analysis of Hilton Hotel will reveal all the internal and external factors that work for and against the hotel chain.  

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SWOT Analysis of the Hotel Industry

Nevertheless, you might feel hesitant to conduct a hotel SWOT analysis for your business. To help you gain a better understanding of the concept, we will analyze the four sections found in the tool in the context of the hotel industry. These are all the elements that you are going to encounter in the hotel SWOT analysis examples below, such as the SWOT analysis of Hilton Hotel and the other hotel chains.

1 Hotel Strengths

The first section of the hotel SWOT analysis consists of the hotel’s strengths. This includes all the competitive advantages that the business has gained over the years and all the factors that make it an attractive option to customers. The most common strengths that you are going to find in hotel SWOT analysis are:

• The hotel’s location. Is it downtown or near a shopping district? Is it accessible? Are there multiple locations?
• The hotel or chain’s brand reputation. As you will see in the SWOT analysis of Hilton Hotel, brand reputation is one of the most significant strengths of this chain.
• Amenities and facilities. These include all the services the hotel offers to its visitors.
• High-quality services. This can refer to the staff employed by the hotel and the luxury services offered there. This will be a common theme in all the hotel SWOT analysis examples we will examine below.
• Effective marketing. Are the marketing campaigns bringing the desired results?
• Loyal customer base. When people find a hotel they like, they tend to book a room again and again. Is that the case in your hotel SWOT analysis?

2 Hotel Weaknesses

The following section of the hotel SWOT analysis is about the business’s weaknesses. In this part, you need to recognize what might be going wrong and what areas need to be improved. The most common weaknesses that you will find in the hotel SWOT analysis are the following:

• Outdated facilities. Could your hotel be renovated and modernized?
• Staffing shortage. Are there enough staff members for the number of visitors your hotel receives? Can they offer them high-quality services?
• Insufficient marketing efforts. Have you invested in the marketing of your hotel?
• Dependence on seasonal visitors. The hotel can only be profitable if it receives a steady stream of visitors all year long. Therefore, only receiving seasonal visitors puts it in a vulnerable position.
• Inadequate maintenance. Are the amenities working properly? Do you need to replace them?

3 Industry Opportunities

The next part of the hotel SWOT analysis consists of all the external factors that you could potentially utilize to grow your business. The most common opportunities in the hotel SWOT analysis are these:

• Market expansion. This refers to a new hotel location, a different country, or expanding toward a new customer segment. This is something found in many big hotel chains, like the SWOT analysis of Hilton Hotels.
• Technological advancements. For example, you could create a user-friendly inline booking form that will make it easier for your customers to make their reservations.
• Service diversification. Found in almost all hotel SWOT analysis examples, this opportunity allows you to think of new services that you could offer to your visitors that will make their stay more memorable.
• Event hosting. A great opportunity for every hotel is to host various events, social, cultural, or corporate. This is one of the things that stands out in the SWOT analysis of Hilton Hotel.

4 Industry Threats

The final part that you need to add is the threats that are in the environment of your hotel. These factors might put obstacles in your business endeavors and affect the effectiveness of your strategies. The threats that you will find the most in the hotel SWOT analysis are the following:

• If there are a lot of hotels in your region, then you are all fighting for the same pool of customers.
• Economic instability. Usually, the economic crisis affects all businesses, including hotels. This is an element present in the analyses of big hotel chains, such as the SWOT analysis of Hilton Hotels.
• Damaged brand reputation. Sometimes, a scandal can affect the hotel significantly. In this case, you need to take immediate damage control actions.
• Shift in traveling habits. It is common for travelers to want a different experience. For instance, they might seek out an Airbnb, a hostel, or a bed and breakfast.
• Environmental factors. This might include floods, earthquakes, and other natural disasters that prevent visitors from coming to your hotel.

Hotel SWOT Analysis Examples - 3 Famous Chain Hotels

SWOT Analysis of Hilton Hotel

The first example that we are going to go through is the SWOT analysis of Hilton Hotel. Of course, this is one of the most well-known hotel chains in the world with a presence in 122 countries and territories. Therefore, the SWOT analysis of Hilton hotel becomes as follows:

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Strengths:

• Hilton has a strong global presence since it operates in numerous different countries and territories.
• It has strong brand recognition. Hilton has become well-known as a premium and luxurious hotel brand.
• The hotel chain has a diverse portfolio of hotel brands that range from luxurious to mid-scale.
• It has launched the Hilton Honors program, which is a customer loyalty program that rewards its visitors.
• The hotel has become synonymous with quality service by offering personalized experiences.

Weaknesses:

• The operations costs are high since the hotel needs to maintain high standards and luxurious amenities.
• Many of the chain’s locations are owned by franchisees, meaning that they don’t immediate say in their operations.
• Having a global presence, Hilton needs to face various regulations and policies.
• The chain needs to employ a high number of staff members to provide high-quality services. However, staff retention is challenging.

Opportunities:

• The chain can expand to even more locations, especially in emerging markets and popular tourist destinations worldwide.
• The brand can leverage the power of social media to reach a wide audience through creative campaigns.
• The chain can expand into some mid-range and budget options to attract a larger customer segment.
• Hilton could look into strategic acquisitions to diversify its portfolio and gain a competitive advantage.

Threats:

• The hotel industry is very competitive, and Hilton needs to maintain its services and good brand reputation to preserve its competitive edge.
• Global crises are affecting traveling. For instance, the Ukrainian-Russian war resulted in the Hilton stopping its operations in Russia.
• The economic crisis has made people hesitant to spend their money on a luxurious hotel for their vacations.
• The COVID-19 pandemic has significantly affected the whole industry and it still hasn’t returned to normal.

Hotel SWOT Analysis Example - Wyndham Hotels & Resorts

The next one of our hotel SWOT analysis examples is about Wyndham Hotels & Resorts. Just like in the SWOT analysis of Hilton Hotel, you will see that this is a hotel chain with a strong international presence. In more detail, this example of SWOT analysis will look like this:

Strengths:

• Wyndham Hotels & Resorts has a strong global presence with operations in 95 countries.
• The chain has created a diverse range of hotel brands, thus being able to attract different customer segments.  
• It has introduced the Wyndham Rewards Program, which is a customer loyalty program that gives many benefits to the hotel’s visitors.
• It operates on a franchise model that allows the brand to grow rapidly.  
• The chain has completed strategic acquisitions and mergers, thus diversifying successfully its portfolio.
• It employs highly trained staff to ensure that its services maintain the brand’s high standards.

Weaknesses:

• The brand has been solidified as a mid-range and budget chain, which doesn’t appeal to high-end luxury travelers.
• The brand depends heavily on franchisees, meaning that they are relying on them to maintain the brand’s standards.
• The chain has implemented many new technologies in its operations that increase the risk of cyberattacks.

Opportunities:

• The brand could expand into different countries and regions, especially tourist areas that receive a huge number of visitors.
• More strategic acquisitions will allow the chain to further diversify its brand portfolio.
• The hotel can offer enhanced and personalized guest experiences to boost customer satisfaction.
• The chain can incorporate even more technological advancements, such as AI, to make room reservations even more efficient.

Threats:

• Many major hotel chains offer similar services, thus significantly increasing the competition in the industry.
• The economic crisis has affected travelers as they are seeking affordable options.
• The global uncertainty makes people weary of traveling.
• Many travelers want to experience the local lifestyle, thus preferring other types of accommodations, such as Airbnb, hostels, and B&Bs.

Hotel SWOT Analysis Example - Ritz-Carlton Hotel

The last example that we are going to examine is a SWOT analysis of the Ritz-Carlton hotel. Just like the previous two, this is a famous hotel chain with a strong presence in the industry. Therefore, the SWOT analysis example is as follows:

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Strengths:

• The brand operates in more than 30 countries and territories, which establish it as a global powerhouse.
• The Ritz-Carlton has become a synonym for luxury, having built a prestigious brand image that attracts high-end clients.
• The chain makes sure to offer impeccable, personalized services that give attention to detail.
• The hotels of the chain have a variety of luxurious amenities, including fine dining, spa services, and exclusive event venues.
• The brand organizes employee training and empowerment to ensure that they provide their visitors with the best possible and most consistent services.

Weaknesses:

• The rooms in the hotels have high prices, thus limiting their accessibility to a broader audience.
• Limiting the target market segment makes the hotel chain vulnerable to economic downturns.  
• To maintain its high standards, the hotel chain depends heavily on its highly skilled staff.

Opportunities:

• The brand could expand to more countries, targeting luxurious destinations worldwide.
• The hotels can introduce new services and experiences, such as wellness retreats, culinary events, and exclusive cultural immersions.
• The hotel could leverage advanced technologies to boost its operations, such as the booking process.
• The hotel might benefit from partnering with high-end brands for marketing campaigns that will attract high-end luxury travelers.
• The brand could diversify its portfolio with mid-range hotels, which will increase its customer pool.

Threats:

• Boutique hotels pose the biggest competition to luxury hotels like the Ritz-Carlton. The brand needs to ensure that it maintains its high standards.
• The global economy is affecting everyone, even the most affluent travelers. Which is indicated by the decline in the hospitality industry.
• Global uncertainty and health concerns prevent people from traveling.

SWOT Analysis Template & Tool

All these hotel SWOT analysis examples are a great starting point for conducting a hotel SWOT analysis for your business. Boardmix allows you to conduct your analysis in no time. The online whiteboard tool has a variety of templates, including a SWOT analysis template. Therefore, you can immediately get started by customizing it in any way you want. Create your new Boardmix account for free to start using all of its features.