Summary Slide

Hotel SizesHotel ClassificationsDiagram–CompressionProduct TypesDiagram–Service LevelsProduct TypesDiagram–Cost vs. ProductInternet Exercise

Figure 2-1

Hotel Sizes

Classification Number of Sleeping Rooms

Small 1 to 150Medium 151 to 400Large 401 to 1,500Mega 1,501 and over

Why do management salaries increase as the number of guest rooms increase?

Figure 2-2

Hotel Classifications

Location types Downtown Resort Airport Suburban

What is a special attraction?How does seasonality affect a hotel?How does compression of demand

affect a hotel?Figure 2-3

Compression of Demand

Sold Out City Center(Downtown Location Type)

Demand DemandAirport

Suburban

Suburban

Resort

Figure 2-4

Product Types

Service Level Limited Service Mid-Market Full Service

What are some current market examples of each service level?

Figure 2-5

 

Economy Budget Mid-Market Upscale Luxury

Upscale Examples * Omni * Marriott * Hilton * Westin * Hyatt

 Luxury Examples

* Four Seasons * Intercontinental * Ritz Carlton

Full Service

Economy Market Examples

* Budgetel Inn* Fairfield Inn* Motel 6* Red Roof Inn

Budget Market Examples

* Best Western* Econolodge* Knights Inn* Super 8 Motels

Limited Service

Mid-Market Examples* Courtyard

* Holiday Inn * Howard Johnson

* Ramada Inn

Service Levels

Figure 2-6

Product Types

Service Level Limited Service Mid-Market Full Service

Target Market Extended Stay All Suite

What is a Hybrid Market?

Figure 2-7

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Product Type Service Classifiers

Cost vs. Product

Figure 2-8

Figure 2-9

Hotel Types Internet Exercise

As was the case throughout history, establishing hotels as areas of rest in relation to journey segments and junction points is practiced today–e.g., roadside motels along stretches of highway, bed & breakfast inns in areas of grand nature, and high rise hotels in city centers.

Researching the Internet, find examples of three or more property types. Ideally, these would be local hotels that you could visit. Use these URLs to get started: http://www.traveldata.com http://www.motels.com Use the web site of your local

convention/visitor's bureau (ex: http://www.nycvisit.com/index.html)

Hotel Types Internet Exercise

Figure 2-10

List three external factors that would affect the success and profitability of these or other types: Road Side Motel Bed & Breakfast Inn High Rise Hotel

Did you find any factors that applied to more than one type of property? Why or why not?

Hotel Types Internet Exercise

Figure 2-11

Figure 2-12

Hotel Types Internet Exercise

What is the rack rate for a “standard” room?What is included in this rate?What amenities are offered at this property?Are rates different on the weekend? Higher or

lower?What other hotels are in the area?

Compare and contrast the properties you selected.

Use the Internet to answer as many of the following questions as you can. Call the properties directly for answers not available on-line.