Posted by & filed under Managerial Accounting, Marketing & Strategy.

Description: Last week’s news featured the rather shocking jewellery robbery at the private hotel of celebrity Kim Kardashian. In addition to all the usual reality television hype, the theft did throw a spotlight on an ‘unknown’ hotel,  L’hôtel de Pourtalè. It’s representative of a growing number of private luxury residences, attracting groups of wealthy travelers seeking an alternative to their normal five star hotels. Of course, as the daring crime illustrates, the private residences may offer less security than the typical five star competitor.

Date: October 6, 2016; updated October 7, 2016



Discussion Points:

1) What would be some of the marketing challenges in starting a private luxury residence?

2) What depreciation/amortization rates would you expect to see on the furnishings and fixtures in a private luxury residence? How might they compare to those of large hotel chains?

3)  What might be some of the managerial accounting issues that would be particularly applicable to a private luxury residence? For example, would you expect to see less concern for cost control in this environment?

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