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Chapter 6Understanding the World of Hotels

Hospitality Today: An Introduction

Sixth Edition

(103TXT or 103CIN)

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Competencies forUnderstanding the World of Hotels

1. Briefly describe the dynamic hotel industry, and summarize information about important hotel guest segments.

2. Describe center-city, resort, suburban, highway, and airport hotels, including their services and facilities, and summarize their historical development.

3. Explain various ways hotels can be owned and operated, distinguish chain hotels from independent hotels, and explain how hotels can be categorized by price.

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4. Describe the following hotel categories: all-suite hotels, conference centers, timeshare properties, condominium hotels, and seniors housing.

5. Outline the following steps in developing and planning new hotels: site selection, the feasibility study, and financing.

Competencies forUnderstanding the World of Hotels

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Hotel Guest Segments

• Corporate individuals

• Corporate groups

• Convention and association groups

• Leisure travelers

• Long-term stay/relocation guests

• Airline-related guests

• Government and military travelers

• Regional getaway guests

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Hotel Categories By Location

• Center-city

• Resort

• Suburban

• Highway

• Airport

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Six Forms of Hotel Ownership/Operation

1. Independently owned and operated

2. Independently owned, leased to an operator

3. Owned by an entity or group, operated by a hotel management company

4. Owned and operated by a chain

5. Owned by an independent investor or group, operated by a chain

6. Owned by an individual or group, operated as a franchise of a chain

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Other Hotel Categories

• All-suite hotels

• Conference centers

• Timeshare properties

• Condominium hotels

• Seniors housing

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Types of Conference Centers

• Executive conference centers

• Corporate-owned conference centers

• Resort conference centers

• College and university conference centers

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Types of Seniors Housing

• Independent-living units

• Congregate communities

• Assisted-living facilities

• Continuing-care retirement communities

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Sections in a Typical Feasibility Study

• Market area characteristics

• Site/area evaluation

• Competition analysis

• Demand analysis

• Proposed facilities/services

• Financial estimates

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Hotel Financing

• Hard costs

• Soft costs

• Permanent financing loans (take-out)

• Construction financing loans