Abstract
A critical competitive strategy for the growth and expansion of large hotel chains is the pursuit of market segmentation. This article investigates one aspect of market segmentation and the restructuring of the South Africa hotel sector, namely the emergence of the limited service hotel. The growth of the limited service hotel segment of the South African hotel industry is analysed through a case study of the strategic development and evolution of City Lodge Hotels which pioneered this market niche in Africa. Close linkages are disclosed between the limited service segment and the growth of business tourism in South Africa’s major urban centres.
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