Learning Objectives

 Explain the importance of accommodations to the tourism

and hotel industry
 Identify and describe the major classifications of
accommodations
 Identify and describe the primary ownership patterns of
lodging/ hotel properties
 Describe the basic organizational structures in lodging
properties
 Describe the differences between front-of-the-house and
back-of-the-house operations
 Identify and describe key marketing, management, and
financial considerations in lodging operations
 Demonstrate knowledge of basic accommodation
terminology
Brief History of Accommodations
 Age-old profession
 Started as way stations for travelers needing
safe shelter for the night stay
 Evolved into local gathering places for
meetings and entertainment
 Inns expanded in size and became hotels
 Development in lodging facilities closely
followed improvements in transportation
There are Choices!!
 No two are exactly alike, Bed and Breakfasts
(B&B), started in small towns and similar to
early small inns
 B&Bs exist worldwide-often supplement family income
 Wide variety of B&B establishments
 Referral organizations have evolved to assist B&B
owners in marketing
 Internet has been effective in reservation booking
 Personal attention and breakfast are major distinction
Same Time, Same Place, More
privately
 Time-Share Condominiums:
 Usually have amenities similar to a luxury apartment
 Vacation ownership is appealing to people who can plan in
advance and want to be assured of accommodations at set
times at specific locations
 Fee-simple or right-to-use basis
 Flexibility to swap occupancy rights with other owners
 Point system is new way to sell time-shares and make
swapping easier
 Destinations and week of year vary in popularity
 Condos in rental pools
Incorporated with Function Rooms
Conference Centers
Accommodations built to serve the needs of
meeting attendees
Service is designed to enhance the meeting
experience
Enjoying the Great Outdoors
Camping and Parks
Camping is no longer “roughing it”; often find
amenities similar to other forms of
accommodations
Add additional “rooms” during the tourist
season
Shift the capital investment burden to the
traveler
Brief History of Hotel
Development

 Boston’s Tremont House, 1829, 1st Hotel

 Brown Palace in Denver, 1892, 1st atrium
 Statler Hotel,1908 added services and
amenities
 Great Depression resulted in 85% of hotels
going bankrupt
 End of WW II gave rise to development of
hotels
 1990’s had a period of growth and high profits
Classification and Rating
systems
 Organizations such as American Hotel and
Motel Association have developed rating
systems to clarify the amenities and services at
a type of lodging property
 Classification systems provide managers with
reference groups and benchmarks against
which they can evaluate performance
 Best practices have been identified for a
variety of hotel operations
HOTEL CATEGORIES
 Location
 Center city
 Downtown - often built as part of depression programs
 Near railroads
 Attract business travelers

 Now rebuilt downtown areas meant new or

refurbished hotels

 Majority chain operated

 Majority full service

 
Resorts

 Found in desirable vacation spots

 Elaborately landscaped, sports facilities
 Romans first to build hotels for recreational
purposes
 Usually around hot springs
 First American 1789 - Pennsylvania
 Grew during 1800s - mostly seasonal
 Trend now is to stay open year round
 450,000 resort hotel rooms in us
 Have highest occupancy rate of any type but has
highest cost to operate because of high service
level
 Target other groups besides leisure - business
Airport
On or near airport
Primarily weekday guest
High occupancy rate
Little notice for high demand (storms)
Promoting longer stays and business
meetings
LODGING
SIZE (LODGING)
 Size
 45,000 properties in US - 3,000,000 rooms
 70% have fewer than 75 rooms
 30% have more than 300 rooms
 Most establishments are small and owned by
individuals, partners or corporations - operated by
owner
Categories of Lodging Properties
 Limited-service budget hotels
 Limited-service economy motels
 Full-service mid-priced hotels and motels
 Full-service upscale hotels
 Luxury hotels
 All-suite hotels
 Extended-stay hotels >>>>>>Transient hotels, motels, inns
 Resident hotels
 Resorts
 College dormitories
 Hostels
 Boarding houses
 Condominium rentals
 Hospitals
Organizing for successful
operations

 Going it alone
 Small independent properties, managed by owners
 Not bound by corporate policies so have complete
decision-making authority
 No corporate support/resources
 Franchising
 Provide use of brand name, reservation system and
management systems from parent company in return
for royalties and fees
 Franchisee gives up some decision-making freedom
 Franchising in the lodging business is still rare in
Europe and Asia
Organizing for successful
operations, continued
 Management Contracts
 Owners of lodging property hire a company to
manage/operate the property
 Management company receives percent of revenue as
compensation
 Owners retain all financial obligations
 Chain Operations
 Chain operations have common ownership or
management
 Chains provide similar benefits as franchises
Hotel and Service Industry
Establishment that charges fees for
providing furnished sleeping
accommodations to persons who are
temporarily away from home or who
consider these accommodations a
temporary or permanent home.
May also provide food and beverage
Typically provide other things such as
cleaning services, entertainment,
recreation and general services.
Organizing for successful
operations
Strength in numbers: Referral associations
Referral organizations offer freedom of going
it alone plus some benefits of chains
Marketing, especially through central
reservations system and widely distributed
member directory, is the primary benefit
May also offer operational benefits such as
cooperative purchasing and training
Started in Sales

 Goal of sales is to attract future bookings

 Variety of methods to gain sales
 All employees are involved in the sales process
 Providing a Home Away From Home
 Meeting Guest’s needs
 Achieving profitable operations
Technology

Property Management systems integrate all

of the information needed to manage
Need such systems for communication
among different functional areas
Enterprise systems further combine
information for multiple properties
Criteria For Classifying Hotels
·         Price
·         Function
·         Location
·         Particular market segment
·         Distinctiveness of style or offerings
Hotels Classified By Price
·         Limited-service hotels
·         Full-service hotels
·         Luxury hotels
Hotel Classified By Function
·         Convention hotels
·         Commercial hotels
Hotels Classified By Location
·         Downtown hotels
·         Suburban hotels
·         Highway/interstate hotels
·         Airport hotels
Hotels Classified By
Distinctiveness of Style or
Offerings
·         All-suite hotels
·         Extended stay hotels
·         Historic conversions
·         Bed and breakfast inns
·         Boutique hotels
Hotels Classified By Market
Segment
·         Executive conference centers
·         Resorts
·         Casino hotels
·         Health spas
·         Vacation ownership
Ownership
Independently owned and operated
Independently owned but leased to an
operator
Owned by an entity that has hired a
management company
Owned and operated by a chain
Owned by independent group and operated
by a chain
Owned by independent group and operated
as a franchise of a chain
Three Main Objectives of the
Hospitality Manager
Make the guest feel welcome.
Make things work for the guest.
Make sure the operation continues to
provide service and make a profit.
Hotel Operations Can Include
·         Rooms department
·         Food and beverage department
·         Staff and support departments
Comparison of Typical
Departmental Incomes
Rooms department—70 percent or more
Food and beverage department—15 to 30
percent
Principal Customer Types
 ·         Transient business travelers─29%
 ·         Business travelers attending
conferences─25%
 ·         Vacationers─24%
 ·         Travelers for other reasons─22%

You can make generalizations about hotel prices

and the star ratings. A four star hotel will
indeed cost more than a one star in the same
city. The four star hotel will have more services
and amenities, including meeting space for
conferences. The one star will usually be very
basic; not all rooms may have bathrooms in
them.
Hotel Rating
 You can make generalizations about hotel
prices and the star ratings.
A four star hotel will indeed cost more than
a one star in the same city.
 Four star hotel will have more services and
amenities, including meeting space for
conferences.
Three star will usually be simple and very
basic for bathroom.
Two/One Star not all rooms may have
bathtub in rooms and very simple.
Standards of Hotel
Classification
  In some countries, there is an official body
with standard criteria for classifying hotels, but
in many others there is none but they have to
abide with their respective government
mandatory requirements such as government
institutions ( for the mandatory part).
 There have been attempts at unifying the
classification system so that it becomes an
internationally recognized and reliable
standard but large differences exist in the
quality of the accommodation and the food
within one category of simple hotel.
Manila Hotel

Traditional Philippine Splendor at

this Central Manila Luxury Hotel
Famed as the "Aristocrat of the Orient," the
Manila Hotel has stood as a distinguished
Far East landmark since its historic
inauguration in 1912. .
The Old Hotel
Built as a Hotel for the Mill across the
street.  The Old Hotel has been welcoming
guests for over 150 years.   

Located in the Midst of the Green Mountain

National Forest, Lincoln and the Hotel is
centrally located between the Adirondack
Mountains and the Connecticut River Valley
Hoshi Ryokan

Hōshi (is a Japanese traditional inn in the

Awazu Founded in 717, it is the world's
oldest hotel still in operation according to
Guinness World Records [1] and the world's
oldest continuously operating company
after the liquidation of Kongō Gumi in 2006.
Hyatt
1957 LA International Airport. Founded by
Hyatt R. Von Dehn
1969 Opened Hyatt Regency Hongkong
1980 – Grand Hyatt and Park Hyatt
Today – 340 Hotels Worldwide
MANILA Hotel
1900 – Pres. Mc. Kinley appointed Judge
Howard Taft to evaluate the needs of the
territory. Later became the 1st Civilian
Governor General in the Phils.
1912 – opening of Manila Hotel
Residence of Pres. Mc Arthur from 1935-
1941
Palace Hotel
Designed as American Counterpart to the
Grand Hotels in Europe
1875
Most luxurious hotel in the world
Called majestic hotel, hailed 7000 windows,
enprecented opulence
HOTEL RITZ PARIS
1854 – acquire by P’ereire Brothers as
private dwelling
1898 – converted by Cesar Ritz to luxury
hotel
1979 – Ritz family sold the hotel to
Egyptian businessman Mohamed Al Fayed
1988 – refurbished
1997 – Dodi and Princess Diana visited Ritz
when emplyee Henri Paul drove them from
the hotel which crashed in Port de l’Alma
road tunnel
CROWN HOTEL MACAU
6 star hotel and casino /220 gaming tables
and 500 gaming machines
Opened may 2007 by James Parker –
wealthiest man in Australia
 5 ***** PROPERTY AMENITIES
 Dry cleaning service
 Playground
 Spa Tub
 Beauty services
 Conference room(s)
 Concierge desk
 Express check-in
 Internet public area - surcharge
 Exhibit space
 Sauna
 Bar/lounge
 Laundry service
 Breakfast services
 Gift shop or newsstand