Author: Hinkin, Timothy R
Source: North American Case Research Association, Case Research Journal, 1999; The Laurier Institute
Company Name: Argentina Suites
Number of pages: 14
In the late 1980s, an Argentine physician purchased an uncompleted apartment building in Buenos Aires, Argentina. He converted the property into a 160-room hotel, employed his children as managers, and various family members as department heads. The owner oversaw the hotel from his San Francisco, California home and visited the property approximately every two months. For several years the owner's 75-year-old brother-in-law acted as general manager and the other family members fought for influence and control. The hotel prospered during this period primarily because of a shortage of hotel rooms in the city. The owner's son Max returned to the United States to attend graduate school and recently graduated with a Master's degree in Hotel Administration. He returned to the property as general manager and had to decide what the best course of action was for both himself and the company, and how best to achieve his goals as well as his father's objectives.