CHALLENGES AND UNCERTAINTIES IN RIO'S HOSPITALITY INDUSTRY: THE CASE OF ASTOR HOTELS

Abstract

International mega sporting events such as the Olympic Games have been responsible for promoting transformations over the years in the cities they pass through whether through developing economic sectors such as tourism, hospitality, and services or through transforming their urban spaces. The case of Rio de Janeiro in 2016 was emblematic above all for the city’s hotel sector, which during the years preparing for the Games saw its offer in the number of beds increase by 76% in a period of just 5 years, which generated a new competitiveness dynamic for the region. The case puts the reader in the role of Federico Gonzales, manager of Astor Mediterranean Rio, a new hotel that opened near the Olympic Park at the end of 2015 and is currently experiencing serious financial difficulties given the drop in demand aggravated by the economic crisis and by the effects of the pandemic. The case is indicated for undergraduate and graduate students from the hospitality, tourism, and strategy courses interested in discussing themes and concepts related to the area of strategic transformation of hotel industry, management strategic decision making, and mega events.

Keywords

• olympic game
• mega events
• hotel management
• tourism
• hospitality