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Lodging more than hotels

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by

Patricia Dominguez

on 30 October 2013

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Transcript of Lodging more than hotels

Increasing competition
In-room technology
Unique hotels
Increased service levels
Blurring of segments


WHAT’S CHANGING?

Downtown hotels
Suburban hotels
Typically have 200 to 350 guest rooms and interior corridors
Highway/interstate hotels
100 to 250 guest rooms
Airport hotels
250 to 550 guest rooms


CLASSIFYING HOTELS
BY LOCATION

Have a wide range of facilities and services offered in an upscale environment including
concierge and multiple dining options
Rooms number between 150 and 500

Higher ratio of employees to guest room

Typical ADR is over $225.00

Industry leaders include

Ritz-Carlton, Four Seasons, and Fairmont


CLASSIFYING HOTELS BY PRICE
Luxury Hotels

Have a wide range of facilities and services including public meeting space
and choice of food and beverage

Typical ADR is over $150.00

Business and leisure travelers represent 57.3 percent of room sales

Average size is 272 rooms

CLASSIFYING HOTELS BY PRICE
Full-Service Hotels

Limited-service hotels
Select-service
Full-service hotels
Luxury hotels

HOTELS CLASSIFIED BY PRICE

First developed in California in 1925,
motels (Motor Hotels) are a relatively recent development

Holiday Inn was the first well known chain of “motels” built in the US (1952)

Holiday Inn was started by Kemmons Wilson after a family vacation

There have since developed many different types of lodging facilities focusing on different customer needs (example: guest suites)

THE EVOLUTION OF LODGING

“Grand” hotels were later built in resort areas, city centers, and along transportation routes
– Waldorf Astoria, Palmer House, Tremont Hotel
The Tremont (in Boston) was the first to offer guests their own room!

Other “Grand” hotels were built in the 1800s and early 1900s, each offering a new amenity or feature



THE EVOLUTION OF LODGING

The lodging industry has been in existence ever since the first traveler
looked for a place to spend the night (thousands of years ago)

Over the years, these facilities have evolved and have been known as hotels, motels, inns, taverns, ordinaries, etc.

We use the term “lodging” to characterize the overall category of facilities

LODGING

Increased business travel
Increased occupancy in city hotels
Rising room rates
Condo/time share conversions


WHAT’S CHANGING?

Leisure or vacation travelers
Transient business travelers individual
traveling alone
Business travelers attending conferences
International travelers
SMERF – social, military, educational,
religious, and fraterna
l

PRINCIPAL CUSTOMER TYPES

Where different types of hotels have been
built to respond to specific traveler needs
Executive conference centers
Resorts
Casino hotels
Health spas
Vacation ownership

HOTELS CLASSIFIED
BY MARKET SEGMENT

Convention hotels
Typically more than 500 rooms
Often located near convention centers
Commercial hotels
Smaller than convention hotels with
100 to 500 guest rooms
Typically in downtown locations


CLASSIFYING HOTELS
BY FUNCTION

Relatively new addition to lodging; akin to addition of fast-causal restaurants in the food service sector

With 100 to 200 guest rooms, focus is on value and a cheaper alternative to full-service properties

Hot breakfast service and sometimes other food service is offered along with limited meeting space

CLASSIFYING HOTELS BY PRICE
Select-Service Hotels

Usually no public meeting space and limited food and beverage

Typical ADR is between $80.00 and $90.00 and the average number of rooms is 122

Examples include Holiday Inn Express, Comfort Inn, Rodeway Inn, and Fairfield Inn

CLASSIFYING HOTELS BY PRICE
Limited-Service Hotels

Price (or service)
Function
Location
Market segment
Distinctiveness of style or offerings

CRITERIA FOR
CLASSIFYING HOTELS

Structures built specifically for overnight accommodation have been around
for thousands of years dating back to Mesopotamia which was a center for commerce.

Hotels in the US date back to the late 1700s and the early 1800s including hotels in Boston, New York, Chicago, and Philadelphia

Important features of early hotels included location and accessibility to transportation

THE EVOLUTION OF LODGING

The lodging industry is a huge segment, by any measure:

Over 49,500 properties

Over 4.6 million guest rooms

Generates over $40.6 billion in revenues

Supports more than 7.5 million jobs


LODGING TODAY


All-suite hotels
Extended stay hotels
Historic conversions
Bed and breakfast inns
Boutique hotels
CLASSIFYING HOTELS
BY OFFERINGS

Chapter 9

Lodging: Meeting Guest Needs

Lodging more than hotels
Full transcript