The case was developed to give students the opportunity to evaluate the strategic decisions the Managing Director of an independent non-branded luxury hotel should take into consideration when evaluating the option whether to enter into a franchise agreement or not. In view of the strong competition from international branded hotel chains (operated under a franchise or management contract agreement) and the changes that were taking place in the external environment, the management of the Nassauer Hof Hotel felt that new ‘out of the box’ thinking was required in order to ensure the viability of their property.
