Case Studies in the Hospitality Industry

Weissinger Knapp

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Chapter 3 CLASSIFICATION OF LODGING FACILITIES

Presented by: Name Title Computer Systems Institute

Outline
I.

Accommodations Basic Terminology

Hotels Motels Motor homes Resorts Privately Owned Housing

IV.

Function and Primary Market

Commercial Convention Extended Stay Casino Resort

II.

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V.

Quality Ranking Other Methods of Classification

Parking Facilities Size Affiliation Clientele

III.

Location Factors
Center City Suburban Airport Resorts Highway

VI.

Chapter 3 Classification of Lodging Facilities

Learning Objectives
o

Explain the differences between hotels, motor inns, motels, resorts, and private lodgings. Classify lodgings by function and market.

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Understand how hotel/motels become affiliated with chains.

Describe how parking facilities, size, affiliation, and clientele are used to differentiate types of lodging facilities.

Determine by location the types of properties most likely present.

Chapter 3 Classification of Lodging Facilities

Accommodations
o

Well be at the big hotel downtown Were just going to stop along the road at motels Im going to that beautiful resort at the beach

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Classification of lodging facilities is often hazy in everyday conversation

Chapter 3 Classification of Lodging Facilities

Basic Terminology
o

Hotels

Motor Inns
Most commonly seen lodging facility 1. Range in height from 2 to 6 stories 2. Often have a restaurant or bar 3. Provide fewer services than motels 4. Guests may park their cars in the vicinity of their rooms 5. Often located near major highways and airports 6. Usually are part of a chain

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Multistoried lodging facilities 1. Range in size from 20 rooms to hundreds of rooms 2. Can be elegant or center city flea bags 3. Found in large cities 4. Guests are usually business travelers and convention attendees 5. Most offer valet parking with an attached or near by parking garage (center-city) 6. Service personnel cater to guests o 7. Services offered restaurant/bar, coffee shop retail shop 8. May or may not be members of a chain

Resorts
Often located at beaches or mountains 1. Offer guests recreational activities 2. May be a chain or individually owned 3. May be seasonal and specialized

Motels
Small one story structures found on feeder highways, roads, or beaches 1. Parking is located outside the room door 2. Often do not have restaurants 3. Usually individually owned (families provide services

Privately Owned Housing

Guest houses, condos, timeshares 1. Owners rent bedrooms to visitors (B&B) 2. Apartments rented to public year round 3. Apartments rented for a specific period of time

Chapter 3 Classification of Lodging Facilities

Location Factors
o

Center City
1. 2.

1.

3.

Located in business districts Cater to business travelers holding large conferences High rise architecture

2. 3.

Properties located in areas of scenic beauty (mountains and seashore) May include recreational facilities Properties charge higher rates because of unique locations

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Suburban
1.

Highway
1. 2.

2.

3.

Lower real estate prices than downtown areas Near shopping centers or recreational facilities Include conference facilities

3.

Accommodate interstate audience Large billboards and neon signs are visible from the road Properties located in isolated areas charge higher rates

Airport
1.

2.

Number of facilities has increased with the number of flyers Originally designed to accommodate business travelers making connections

Another means of classifying lodgings is by their location

Resorts
Chapter 3 Classification of Lodging Facilities

Function and Primary Market

o

Commercial
1.

2. 3.

Located in center-city for business travelers convenience Include airport properties Have business centers featuring office equipment

5.

Designed for people on long-term assignments or in the midst of job relocation

Casino
1. 2.

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Convention
1.

2.

Commercial properties with conference hosting capabilities Offer multiple meeting rooms and large spaces for trade shows

Many elaborate hotels feature casinos Profits from gaming make it possible to offer low room rates and food costs

Resorts
Offer 1. Sunning at the beach 2. Skiing 3. Horseback riding 4. Fitness 5. Tennis 6. Golf

Extended Stay
1. 2.

3. 4.

Offer long term accommodations Include kitchen and sitting room in each unit Often called suite properties Located near industrial parks or office complexes

Chapter 3 Classification of Lodging Facilities

Quality Ranking
o

Ranking properties can be accomplished by government organizations, private organizations, or guidebooks Rankings are usually related to price

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Symbols are used to denote quality

***** **** *** ** * Outstanding Excellent Very good Good Average

Some guide books use dollar signs to denote price ranges

Full service, limited service, and self service are broad categories used to classify properties
Chapter 3 Classification of Lodging Facilities

Other Methods of Classification

o

Parking Facilities
1. 2. 3.

Chains
1.

Garages (hotel) Parking outside the door (motel) Parking in the vicinity (motor inns)

2.

Size (does not affect quality)

1.
2. 3. 4.

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Small up to 100 rooms Medium 100 to 200 rooms Medium-large 200 to 500 rooms Large over 500 rooms
o

Organizations of affiliated properties with the same name, operating policies, dcor standards, and a common reservation systems Franchises a. Developers agree on a location, pool their finances, and build a hotel b. Search nationally for a franchised lodging chain to take over management

Affiliation
1.

Clientele
1.

2.

Independents Privately owned, no management alliance with other properties Hotel Representatives a. May be individuals or a companies b. May set up a 1-800 phone number to take reservations c. Do convention promotion work

2.

Transient Vacation or business travelers Residential Lease rooms with weekly or monthly rates

Chapter 3 Classification of Lodging Facilities

Trends
o

Brandling
companies own or franchise several types of companies that are given different names, which could be considered brands

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Brandling permits advertising to target specific markets

When consolidations occur in the industry (large hotel companies buy multiple chains)
1. 2.

personnel management and purchasing are improved opportunities for international expansion arise

Chapter 3 Classification of Lodging Facilities

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