Dynamics of Hotel Owners and Management Team Relationships in Star Rated Hotels in Mekelle, Tigray Northern Ethiopia

Abstract

The primary objective of this research is to evaluate dynamics of owner and management team relationships in star rated hotels in Mekelle, Tigray Northern Ethiopia. The research methodology for this study on the dynamics of management and hotel owner relations in Mekelle star-rated hotels employs a mixed approach, predominantly qualitative approach to gain indepth insights into the complexities of these relationships. For the purpose of the study 8 star rated hotels were selected namely, Planet , Noble Yehdega, Zemarias, Desta, Axum 1 & 2, Atse Yohannis and Ze-Yordanos Hotels. From these hotels 60 respondents including management teams, hotel owners/ representatives, senior line staffs and experts from tourism offices were approached. 8 key informants’ interviews also were selected purposefully based on their knowledge and experience in the area of study. The findings reveal that the ownership styles of the hotels are sole proprietorship and partnership. The findings show that most owners failed to grant autonomy to the management teams in the decision making process. The finding also shows complex interplay between ownership objectives and management practices. Owners primarily focus on financial returns and adherence to local regulations, which include health and safety standards. This emphasis often leads to a top-down approach in decision-making, where owners may prioritize short-term profits over long-term strategic initiatives. In contrast, management teams stress the importance of guest experiences, reflecting the unique approach is characterized by a commitment to engaging with guests in a manner that builds trust and fosters loyalty. To address these challenges, the research emphasizes the necessity for enhanced communication and collaboration between hotel owners and management teams. By involving managers in strategic discussions and decision-making processes, owners can better align their financial goals with the cultural and operational imperatives that drive guest satisfaction. The findings offer practical recommendations for stakeholders seeking to optimize performance, enhance guest experiences, and foster sustainable growth in the competitive landscape of the hospitality sector