The hotel sector is a part of the hospitality sector that has been split into various segments that is characterized by its own set of needs (Clarke, 2007). This report focuses on the hotel sector as the hotel sector is the operating industry of the Park-Hyatt Group. As per Brotherton (2003), the global hotel sector has been made up of a small number of companies that are big multinational enterprises. These MNEs have several brands that are marketed at various customers in the segments of luxury hotels, business accommodation, budget hotels as well as leisure accommodation. The PESTEL analysis of the hotel industry has been discussed below.
The major political factors that shape the hotel industry pertain to the need for companies to invest huge amount of funds in the form of Foreign Direct Investment in order to establish the hotel properties worldwide. However, this remains a major barrier to entry since local property laws can exercise significant influence over this strategy of the company. Accordingly, the Park Hyatt group has adopted the business models of leasing and managerial support wherein they partner with a local company to set operations in the foreign country.