Kimpton Hotel & Restaurant Group St

Kimpton Hotel & Restaurant Group Strives for Perfection! FYI
When investment banker Bill Kimpton traveled to Europe, he liked staying in small hotels
with personality and personalized service rather than big hotels owned by big chains.
Adapting the “boutique” hotel idea, he bought and renovated an older San Francisco hotel
with architectural charm and a central location. It reopened in 1981 as the Clarion Bedford
Hotel and featured each room decorated in an individual style rather than all being identical,
as in most hotel chains. It also offered a complimentary wine-tasting hour to bring
guests together in the lobby for a bit of socializing every evening.
Little by little, Kimpton and his investment partners bought and renovated other hotels
on the West Coast and, later, across the country. Now, more than 30 years later, the
company that Kimpton founded has grown to more than 100 boutique hotels and trendy
restaurants in North America. It employs more than 7,200 employees and rings up annual
revenue of more than $700 million.
Kimpton Hotel & Restaurant Group is a limited-liability company (LLC), a form of
business ownership that allows it the financial and management flexibility to work with
different investment partners on different hotel and restaurant properties. The company
also partners with different chefs to create specialty restaurants where the chef, not the
hotel manager, is in charge. This unconventional approach led to Kimpton partnering with
Wolfgang Puck, among other well-known chefs, to open restaurants inside or alongside
Kimpton hotels.
Kimpton’s boutique hotels are always adding special touches to make guests feel
pampered. For example, under the “Guppy Love” program, the hotels will put a fish
bowl stocked with goldfish in a guest room by request. The idea is to “provide little fish
friends to anyone who [wants] a pet companion,” explains Niki Leondakis, Kimpton’s
president. Employees further personalize the hotel experience by helping guests “live like
a local, offering tailored recommendations from staff picks to one-of-a-kind experiences,”
Leondakis adds. Whether they’re talking about a unique historical site or giving directions
to a local art gallery, Kimpton’s employees are “proud to be the cultural ambassadors of
their city.”1

Bill Kimpton started the Kimpton Hotel and Restaurant Group—the company
profiled in the Inside Business feature for this chapter—with one goal in mind:
He wanted customers to have a unique and memorable experience. Over the
next 30 years, with the help of investors and partners, Kimpton created more than
100 boutique hotels and restaurants that ring up annual revenue of more than $700
million and employ more than 7,200 employees. Pretty impressive achievements for a
company that must compete with larger corporate hotel and restaurant chains.
For Bill Kimpton, deciding to start a business was only the first step. It takes hard
work, and there are many decisions that you must make to build a successful business.
For example, you must choose the right type of business ownership. Kimpton chose the
limited liability company (LLC) form of ownership because it allows the financial and
management flexibility to work with different investment partners on different hotels
and restaurant properties. And yet, as you will see in this chapter, there are other popular
forms of ownership including sole proprietorships, partnerships, and corporations.
We begin this chapter by describing the three common forms of business ownership:
sole proprietorships, partnerships, and corporations. We discuss how these types
105

of businesses are formed and note the advantages and disadvantages of each. Next,
we consider several types of business ownership usually chosen for special purposes,
including S-corporations, limited-liability companies, not-for-profit corporations,
cooperatives, joint ventures, and syndicates. We conclude the chapter with a discussion
of how businesses can grow through internal expansion or through mergers with other
companies.
Sole Proprietorships
A sole proprietorship is a business that is owned (and usually operated) by one
person. Although a few sole proprietorships are large and have many employees, most
are small. Sole proprietorship is the simplest form of business ownership and the easiest
to start. In most instances, the owner (the sole proprietor) simply decides that he or she
is in business and begins operations. Some of today’s largest corporations, including
Walmart, JCPenney, H.J. Heinz Company, and Procter & Gamble Company, started
out as tiny—and in many cases, struggling—sole proprietorships.
Often entrepreneurs with a promising idea choose the sole proprietorship form
of ownership. Annie Withey, for example, created a cheddar cheese–
flavored popcorn
snack food. Annie’s popcorn, called Smartfood, became one of the fastest-selling snack
foods in U.S. history. After a few years, PepsiCo Inc.’s Frito-Lay division bought the
brand for about $15 million. Ms. Withey, an organic farmer and mother of two children,
went on to develop an all-natural white-cheddar macaroni and cheese product.
This venture was also a success. Today even though her firm, Annie’s Homegrown, has
grown and become part of a larger conglomerate, Annie remains the entrepreneurial
heart of the company and still thinks like a sole proprietor.
As you can see in Figure 4.1, there are approximately 23 million nonfarm sole
proprietorships in the United States. They account for 72 percent of the country’s
business firms. Although the most popular form of ownership when compared with
partnerships and corporations, they rank last in total sales revenues. As shown in
Figure 4.2, sole proprietorships account for about $1.3 trillion, or about 4 percent of
total annual sales.
Sole proprietorships are most common in retailing, service, and agriculture. Thus,
the clothing boutique, corner grocery, television-repair shop down the street, and small,
independent farmers are likely to be sole proprietorships.
Relative Percentages of Nonfarm Sole Proprietorships, Partnerships,
and Corporations in the United States
106

Total Sales Receipts of American Businesses
Advantages of Sole Proprietorships
Most of the advantages of sole proprietorships arise from the two main characteristics
of this form of ownership: simplicity and individual control.
Ease of Start-Up and Closure Sole proprietorship is the simplest and cheapest
way to start a business. Often, start-up requires no contracts, agreements, or other legal
documents. Thus, a sole proprietorship can be, and most often is, established without
the services of an attorney. The legal requirements often are limited to registering the
name of the business and obtaining any necessary licenses or permits.
If the enterprise does not succeed, the firm can be closed as
easily as it was opened. Creditors must be paid, of course, but generally,
the owner does not have to go through any legal procedure
before hanging up an “Out of Business” sign.
Pride of Ownership A successful sole proprietor is often very
proud of her or his accomplishments—and rightfully so. In almost
every case, the owner deserves a great deal of credit for solving the
day-to-day problems associated with operating a sole proprietorship.
Unfortunately, the reverse is also true. When the business fails,
it is often the sole proprietor who is to blame.
Retention of All Profits Because all profits become the personal
earnings of the owner, the owner has a strong incentive to succeed.
This direct financial reward attracts many entrepreneurs to the sole
proprietorship form of business and, if the business succeeds, is a
source of great satisfaction.
No Special Taxes Profits earned by a sole proprietorship are
taxed as the personal income of the owner. As a result, sole proprietors
must report certain financial information for the business on
their personal income tax returns and make estimated quarterly tax
107

payments to the federal government. Thus, a sole proprietorship
does not pay the special state and federal
income taxes that corporations pay.
Flexibility of Being Your Own Boss A sole proprietor
is completely free to make decisions about
the firm’s operations. Without asking or waiting for
anyone’s approval, a sole proprietor can switch from
retailing to wholesaling, move a shop’s location, open
a new store, or close an old one. Suppose that the sole proprietor
of an appliance store finds that many customers now
prefer to shop on Sunday afternoons. He or she can make an
immediate change in business hours to take advantage of this
information (provided that state laws allow such stores to
open on Sunday). The manager of a store in a large corporate
chain such as Best Buy Company may have to seek the
approval of numerous managers and company officials before
making such a change.
Disadvantages of Sole Proprietorships
The disadvantages of a sole proprietorship stem from the
fact that these businesses are owned by one person. Some
capable sole proprietors experience no problems. Individuals who start out with few
management skills and little money are most at risk for failure.
Unlimited Liability Unlimited liability is a legal concept that holds a business
owner personally responsible for all the debts of the business. There is legally no difference
between the debts of the business and the debts of the proprietor. If the business
fails, or if the business is involved in a lawsuit and loses, the owner’s personal
property—including savings and other assets—can be seized (and sold if necessary)
to pay creditors.
Unlimited liability is perhaps the major factor that tends to discourage would-be
entrepreneurs with substantial personal wealth from using the sole proprietor form of
business organization.
Lack of Continuity Legally, the sole proprietor is the business. If the owner
retires, dies, or is declared legally incompetent, the business essentially ceases to

Hasil (Bahasa Indonesia) 1:

Kimpton Hotel & Restaurant Group berusaha untuk kesempurnaan! FYIKetika bankir investasi Bill Kimpton bepergian ke Eropa, dia suka tinggal di Hotel kecildengan kepribadian dan layanan pribadi daripada Hotel besar dimiliki oleh rantai-rantai besar.Mengadaptasi "boutique" hotel ide, dia membeli dan direnovasi San Fransisco remajadengan pesona arsitektur dan lokasi. Itu dibuka kembali pada tahun 1981 sebagai Clarion BedfordHotel dan menampilkan masing-masing kamar didekorasi dengan gaya individu daripada semua yang identik,seperti dalam kebanyakan rantai hotel. Itu juga ditawarkan jam mencicipi anggur gratis untuk membawatamu bersama-sama di lobi untuk sedikit sosialisasi setiap malam.Sedikit demi sedikit, Kimpton dan mitra investasi dibeli dan dipugar Hotel lainnyadi Pantai Barat dan, kemudian, di seluruh negeri. Sekarang, lebih dari 30 tahun kemudian,perusahaan yang didirikan Kimpton telah berkembang dengan lebih dari 100 Hotel butik dan trendiRestoran di Amerika Utara. Mempekerjakan lebih dari 7.200 karyawan dan cincin up tahunanpendapatan sebesar lebih dari $700 juta.Kimpton Hotel & Restaurant Group adalah perusahaan perseroan terbatas (LLC), bentukkepemilikan bisnis yang memungkinkan keuangan dan manajemen fleksibilitas untuk bekerja denganmitra investasi yang berbeda pada berbagai properti hotel dan restoran. Perusahaanjuga bermitra dengan koki yang berbeda untuk membuat Restoran khusus dimana koki, tidakmanajer hotel, yang bertanggung jawab. Pendekatan ini tidak konvensional menyebabkan Kimpton bermitra denganWolfgang Puck, among other well-known chefs, to open restaurants inside or alongsideKimpton hotels.Kimpton’s boutique hotels are always adding special touches to make guests feelpampered. For example, under the “Guppy Love” program, the hotels will put a fishbowl stocked with goldfish in a guest room by request. The idea is to “provide little fishfriends to anyone who [wants] a pet companion,” explains Niki Leondakis, Kimpton’spresident. Employees further personalize the hotel experience by helping guests “live likea local, offering tailored recommendations from staff picks to one-of-a-kind experiences,”Leondakis adds. Whether they’re talking about a unique historical site or giving directionsto a local art gallery, Kimpton’s employees are “proud to be the cultural ambassadors oftheir city.”1Bill Kimpton started the Kimpton Hotel and Restaurant Group—the companyprofiled in the Inside Business feature for this chapter—with one goal in mind:He wanted customers to have a unique and memorable experience. Over thenext 30 years, with the help of investors and partners, Kimpton created more than100 boutique hotels and restaurants that ring up annual revenue of more than $700million and employ more than 7,200 employees. Pretty impressive achievements for acompany that must compete with larger corporate hotel and restaurant chains.For Bill Kimpton, deciding to start a business was only the first step. It takes hardwork, and there are many decisions that you must make to build a successful business.For example, you must choose the right type of business ownership. Kimpton chose thelimited liability company (LLC) form of ownership because it allows the financial andmanagement flexibility to work with different investment partners on different hotelsand restaurant properties. And yet, as you will see in this chapter, there are other popularforms of ownership including sole proprietorships, partnerships, and corporations.We begin this chapter by describing the three common forms of business ownership:sole proprietorships, partnerships, and corporations. We discuss how these types105of businesses are formed and note the advantages and disadvantages of each. Next,we consider several types of business ownership usually chosen for special purposes,including S-corporations, limited-liability companies, not-for-profit corporations,cooperatives, joint ventures, and syndicates. We conclude the chapter with a discussionof how businesses can grow through internal expansion or through mergers with othercompanies.Sole ProprietorshipsA sole proprietorship is a business that is owned (and usually operated) by oneperson. Although a few sole proprietorships are large and have many employees, mostare small. Sole proprietorship is the simplest form of business ownership and the easiestto start. In most instances, the owner (the sole proprietor) simply decides that he or shedalam bisnis dan mulai operasi. Beberapa perusahaan terbesar hari ini, termasukWalmart, JCPenney, H.J. Heinz perusahaan, dan Procter & Gamble perusahaan, mulaikeluar sebagai kecil — dan dalam banyak kasus, berjuang — tunggal kepemilikan.Seringkali pengusaha dengan ide yang menjanjikan memilih bentuk kepemilikan tunggalkepemilikan. Annie Withey, misalnya, menciptakan keju cheddar-rasa popcornMakanan Ringan. Annie's popcorn, disebut Smartfood, menjadi salah satu makanan ringan yang laris tercepatmakanan dalam sejarah Amerika Serikat. Setelah beberapa tahun, PepsiCo Inc. Frito-Lay Divisi membelimerek untuk sekitar $15 juta. Nn. Withey, seorang petani organik dan ibu dari dua anak,pergi untuk mengembangkan semua produk-alami putih-cheddar makaroni dan keju.Usaha ini adalah juga sukses. Hari ini meskipun perusahaan nya, Homegrown Annie's, memilikitumbuh dan menjadi bagian dari sebuah konglomerat besar, Annie tetap kewirausahaanjantung perusahaan dan masih berpikir seperti pemilik tunggal.Seperti yang dapat Anda lihat dalam gambar 4.1, ada sekitar 23 juta nonfarm tunggalkepemilikan di Amerika Serikat. Mereka account untuk 72 persen dari negaraperusahaan bisnis. Meskipun yang paling populer bentuk kepemilikan bila dibandingkan denganKemitraan dan perusahaan, mereka peringkat terakhir total pendapatan penjualan. Seperti yang ditunjukkan dalam4.2 gambar, satu-satunya kepemilikan account untuk sekitar $1,3 triliun, atau sekitar 4 persen dariTotal penjualan tahunan.Kepemilikan tunggal paling umum di ritel, Jasa, dan pertanian. Dengan demikian,the clothing boutique, corner grocery, television-repair shop down the street, and small,
independent farmers are likely to be sole proprietorships.
Relative Percentages of Nonfarm Sole Proprietorships, Partnerships,
and Corporations in the United States
106

Total Sales Receipts of American Businesses
Advantages of Sole Proprietorships
Most of the advantages of sole proprietorships arise from the two main characteristics
of this form of ownership: simplicity and individual control.
Ease of Start-Up and Closure Sole proprietorship is the simplest and cheapest
way to start a business. Often, start-up requires no contracts, agreements, or other legal
documents. Thus, a sole proprietorship can be, and most often is, established without
the services of an attorney. The legal requirements often are limited to registering the
name of the business and obtaining any necessary licenses or permits.
If the enterprise does not succeed, the firm can be closed as
easily as it was opened. Creditors must be paid, of course, but generally,
the owner does not have to go through any legal procedure
before hanging up an “Out of Business” sign.
Pride of Ownership A successful sole proprietor is often very
proud of her or his accomplishments—and rightfully so. In almost
every case, the owner deserves a great deal of credit for solving the
day-to-day problems associated with operating a sole proprietorship.
Unfortunately, the reverse is also true. When the business fails,
it is often the sole proprietor who is to blame.
Retention of All Profits Because all profits become the personal
earnings of the owner, the owner has a strong incentive to succeed.
This direct financial reward attracts many entrepreneurs to the sole
proprietorship form of business and, if the business succeeds, is a
source of great satisfaction.
No Special Taxes Profits earned by a sole proprietorship are
taxed as the personal income of the owner. As a result, sole proprietors
must report certain financial information for the business on
their personal income tax returns and make estimated quarterly tax
107

payments to the federal government. Thus, a sole proprietorship
does not pay the special state and federal
income taxes that corporations pay.
Flexibility of Being Your Own Boss A sole proprietor
is completely free to make decisions about
the firm’s operations. Without asking or waiting for
anyone’s approval, a sole proprietor can switch from
retailing to wholesaling, move a shop’s location, open
a new store, or close an old one. Suppose that the sole proprietor
of an appliance store finds that many customers now
prefer to shop on Sunday afternoons. He or she can make an
immediate change in business hours to take advantage of this
information (provided that state laws allow such stores to
open on Sunday). The manager of a store in a large corporate
chain such as Best Buy Company may have to seek the
approval of numerous managers and company officials before
making such a change.
Disadvantages of Sole Proprietorships
The disadvantages of a sole proprietorship stem from the
fact that these businesses are owned by one person. Some
capable sole proprietors experience no problems. Individuals who start out with few
management skills and little money are most at risk for failure.
Unlimited Liability Unlimited liability is a legal concept that holds a business
owner personally responsible for all the debts of the business. There is legally no difference
between the debts of the business and the debts of the proprietor. If the business
fails, or if the business is involved in a lawsuit and loses, the owner’s personal
property—including savings and other assets—can be seized (and sold if necessary)
to pay creditors.
Unlimited liability is perhaps the major factor that tends to discourage would-be
entrepreneurs with substantial personal wealth from using the sole proprietor form of
business organization.
Lack of Continuity Legally, the sole proprietor is the business. If the owner
retires, dies, or is declared legally incompetent, the business essentially ceases to