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Chapter 2Hotel Classifications

Front OfficeOperations & Management

By: Ahmed Ismail

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Hospitality Services : Food & Lodging

By: Johnny Sue Reynolds

Chapter 10The World of Lodging

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Student Objectives

After reading this chapter, you should understand:

• How hotels are classified

• Be able to describe the characteristics of full-service hotels, limited-service properties, specialty accommodations, and institutional housing.

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Additional Objectives

You should also be able to:

• List and describe the three type of hotel ownership

• Identify and describe hotel rating systems

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Introduction

The hotel pioneers previously discussed set the groundwork for many of the designs, services, and amenities considered commonplace today.

C. Hilton Statler J.W. MarriottKimmons Wilson

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Who are the Guests?

• Transients/guests are individual travelers seeking accommodations for safety, shelter, and sometimes food.

• Guests patronize lodging establishments. • Lodging means a place to sleep for one or

more nights. Accommodations is another word often used to mean a place to sleep.

Lodging Operations

Lodging operations can now be found in almost any community. Lodging operations include hotels, motels, motor inns or motor hotels, and bed & breakfast homes. These vary in the level of service, the luxury of the accommodations, the location of the property and much more.

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Inn, Motel, Hotel, ???

• Owners choose names for their lodging operations that communicate the images they wish to portray. The term “inn” suggests warm, friendly feelings. “Hotel” portrays feelings of efficiency, service, and amenities.

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Classifying lodging properties

Criteria for classifying and/or identifying hotels are based on:

*size *location*product type

*price per room*amenities offered

*target market *guest mix*level of service

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Hotel SizesThe industry use the following to determine a

hotel’s size based on its number of rooms.

Classification Number of Sleeping Rooms

Small 1 to 150

Medium 151 to 400

Large 401 to 1500

Mega 1501 and over

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6 Categories of Lodging

• Commercial - service transient guests• Luxury - lavish & extreme• Resort – a destination lodging property• Convention – accommodates large groups• Residential – guest stay 5 + nights• Specialty accommodations – catchall category

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Levels of service

• A hotel’s service level is measured by the amount of actual and perceived consideration a guest can reasonably expect to receive.

• A consumer perceives a value in receiving quality service.

• In the hotel industry, the differences in service levels is often (but not always) tied to incremental increases in cost.

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Levels of service

Full-Service hotels pride themselves on their high level of service and usually charge the highest prices.

Limited Service Properties focus on charging lower prices & provides fewer services.

Full-Service Hotel• A full-service hotel is large and provides many

guests services.• First distinguishing feature is its architecture,

two or more stories and over 3,000 rooms.

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The Plaza Hotel in Manhattan NY

Full service hotels• Second distinguishing feature is the level of

service – Services may include: luggage assistance,

concierge service, one or more restaurants, bars, lounges, room service, meeting/banquet facilities, spa services, and recreational facilities.

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• A concierge is a hotel staff member who helps guest make arrangements, such as dinner reservations, transportation arrangements. A concierge also advises guests on what to do and see in the area around the hotel.

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Luxury Hotels• Luxury hotels provide the highest level of

amenities, noted world-wide for their services, lavish room furnishings & public spaces, and technology.

• Provide more services, more personal attention to guests, and more elegance than a typical full-service hotel.

Examples: Ritz-Carlton, Four Seasons Hotels

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Commercial properties Full service properties one level below Luxury

level are known as First-class properties. They provide better quality and more luxurious, upgraded food service and usually Concierge Services. Examples - Hyatt Hotels, Hilton Hotels, and Westin Hotels

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Next level of commercial properties

Midrange properties – 24 hour front desk, upgraded interior and exterior decors, limited food service, extra room amenities and other services

Examples- Courtyard by Marriott, Four Points Hotels and Holiday Inns

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Next level

Economy – Upgraded room with color television, telephone, vending machines, and generally located close to a restaurant

Examples - Motel 6, Super 8, and Red Roof Inns

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Limited-Service Properties L.S.P. are also known as Budget properties.

They are smaller, provides fewer services, and is less expensive than a full-service hotel simple, basic, clean rooms with no amenities other than clean towels, linens and soap Examples - Sleep Inn and Microtel

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Limited-Service Hotels

Limited Service Hotels offera medium level of service and a midrange price.

•typically have 3 or 4 stories•has the word Inn in the name•offers more services than a motel but fewer than a hotel•no restaurant or bell attendant

Ex.: LaQuinta Inns, Hampton Inns, Fairfield Inns

Budget Hotels

Budget hotels have the lowest rates and least amount of service.

•Focus is on comfortable, clean place to sleep at the lowest rate.•Motel 6 was the first of it’s kind with room for $6 a night in the 1960s.

•Ex.: Microtel is a newer property of this kind.

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Resort Hotels• Resort hotels cater to the vacationer or leisure

traveler.

• A resort is a place that provides recreation, entertainment, and relaxation for vacationers.

• Often located near seashores, mountains, golf courses, natural wonders, and hot springs.

• Properties provide high quality comfort, food and entertainment.

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• Properties provide high quality comfort, food and entertainment.

• Health spas, private gym/spa and/or tennis facilities, expansive pool areas, and other unique signature attractions created by the hotel itself allow for the resort location classification. Ex. a Lazy River

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Convention Hotels

• Convention hotels are designed to provide for the special needs of conventions and trade shows.

• A convention is a large meeting, usually sponsored by a group for its members. Number of people attending 50 to 50,000.

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• Trade show is an exhibit during which people who have goods and services to sell show their goods and services.

• Exhibit hall is the place where trade shows are held. These facilities must be quite large.

• Convention hotels are often located near a convention center.

• A convention center is locally funded, or privately owned structure that caters to large meetings, conventions and trade shows.

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McCormick Place in Chicago

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McCormick Place Chicago's McCormick Place is the premier

convention facility in North America. Located just minutes from downtown Chicago, McCormick Place attracts close to 3 million visitors each year. McCormick Place is comprised of four state-of-the-art buildings: the North and South Buildings, the West Building and Lakeside Center. Together, they form what many consider to be the economic engine that powers the entire convention and tradeshow industry. McCormick Place is committed to creating a great experience for every person, every time!

By The NumbersThe size and versatility of McCormick Place are

impressive:• 2.6 million sq. ft. of exhibit halls• 1.3 million square feet all on one level• 170 meeting rooms• 600,000 square feet of meeting room space• 6 ballrooms, 2 of which are the largest in the city• Assembly seating for 18,000 people• 4,249 seat theater (Arie Crown)• 3 theaters seating 300 each• Ceiling heights up to 50 feet• Easy access to 5,800 parking spaces

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Extended Stay Hotels

• Guests who stay for 5 to 29 days are called extended-stay guests. Long-stay

guests stay for 30 days or more. Normally these guests are traveling business people.

• The major characteristic of these hotels is that they provide kitchen facilities, more than one room for each accommodation and housekeeping services; some have on-site laundry facilities.

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• A suite is a hotel accommodation that consists of more than one room.

• All-suite hotels were developed to provide more space at a lower cost.

• A suite in these hotels is usually two hotel rooms joined together. These suites combine living space with kitchen facilities.

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Extended-&-long stay suites provide a full kitchen with dishes and utensils. Some have grocery shopping service for guests.

Residential hotels cater to long-stay guests; the décor is usually more like a home with a kitchen, living area, and bedroom

Condominium Hotels

New Condo Hotel Apartments at Manor Park Resort in Hua Hin,

Thailand

• They offer many amenities such as multi-room apartments with full kitchens

• Usually individually owned• Property operated by a

management company• Many new, upscale hotels

are being built with condos above them. The condo owners can use the hotels amenities (room service, housekeeping)

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Park Hyatt Hotel and Condos in Chicago

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Two types of condo ownership:1. Individual owner who may live in it fulltime or

rent the condo periodically to others when not in use

2. Time-share ownership- the owner owns the right to use the unit for a specific time of the year each year.

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HOTEL? MOTEL?? How do you tell?

A motel is distinguished from a hotel by its architecture and level of service. They are low-rise, road-side lodging facilities. Parking is close to the rooms. Rooms are entered from the outside and minimal guests services are provided.

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• Motels & hotels offer a room with a bed, television, phone with free local calls, private bath, and daily housekeeping.

• Many motels & hotels have swimming pools & have begun to offer free Continental Breakfast.

• Continental Breakfast consists of breakfast foods that do not need to

be cooked.

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Small Hotel in KingwoodLa Quinta Inn & Suites--Kingwood22790 US 59; Kingwood, TX 77339Phone: 1-281-359-6611; Fax: 1-281-359-7711

Hotel InformationHotel Information

2 Floors2 Floors

50 Rooms50 Rooms

1pm Check In1pm Check In

12pm Check out12pm Check out

AmenitiesAmenitiesFree Bright Side Free Bright Side Breakfast™ Breakfast™

Free Wireless High-Free Wireless High-Speed Internet AccessSpeed Internet Access

SpaSpa

Pets welcomePets welcome Guest Room Guest Room AmenitiesAmenities

Refrigerator in some rooms

Premium Cable Channels

Cost: $110.00

Specialty accommodations They vary in their levels of service, but

usually provide less services than full-service hotels. Some specialty accommodations provide guest rooms with private baths, telephones, and televisions.

• Bed & Breakfast- private home offering one or more guest rooms; full breakfast is part of the room charge

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Specialty Accommodations• Conference Centers - 60% of occupancy is generated

by conference

• Lodges…rooms, housekeeping services & places for guests to participate in recreational activities

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Other specialty accommodations• Hostels - an inexpensive place to stay small

rooms, kitchens and baths are shared; no linens or toiletries

• Campgrounds -located in natural environment

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Food and Beverage Service• Food & beverage is an essential part of the

lodging’s service in the lodging properties.

• Many properties have restaurants (casual & fine dining), snack shops, room service, and cocktail lounges.

• Limited-service properties often offer a continental breakfast & coffee in the lobby and vending machines.

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A room rate that includes meals is called a Meal Plan.

Types of Meal Plans:Full American…3 meals a dayModified American…2 meals (breakfast

& dinner)Continental …breakfast that does not

have to be cookedEuropean…no meals

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DID YOU KNOW? When a lodging property is built and

construction of the top floor is complete a tree is lifted to the roof until the entire building is done in hopes that the “roots” of the business will grow deep and prosper!

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Independent Hotel Ratings• A Star system is primarily used to denote the

level of quality and service, with one star being the lowest and five stars being the highest level.

• International travelers can be reasonably confident about what to expect by using these stars as a guide.

• The criteria by which each hotel is judged may vary from country to country.

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• In the United States, the government does not play any role in classifying hotel. This is left up to independent organizations.

• Magazines, associations and other special interest groups issue ratings based on their won criteria.

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Rating Systems: Diamonds and Stars!

• 5 Star/Diamonds- staff provides exceptionally high degree of service, striking and luxurious facilities, and many extra amenities. Guest services are executed in a flawless manner. The guest is pampered by a professional and attentive staff. The property’s facilities and operation help set the standards in hospitality and service for the industry.

5 Stars/Diamonds cont.

• The hotel décor creates an elegant ambience from the lobby to each individual guest room or suite. Amenities: Luxury dining with a famous chef, concierge service, room service, well-equipped fitness centers, state-of-the-art business center, valet parking

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• 4 Star/Diamonds- excellent service, high level of hospitality, a variety of amenities and upscale facilities in guest rooms, on the grounds and in the public areas . Comfort, class and quality you can count on. Amenities: proximity to desirable shopping areas and restaurants, valet parking, concierge & room service, fitness and business centers, tasteful room décor.

• 3 Star/Diamonds- Mid-scale hotels - Convenience and comfort in the city or suburb; sophisticated with additional amenities, services and facilities, upgraded of service and comfort for the guest. Amenities: swimming pools, fitness center, concierge and on-site parking. Often located near highways and office complexes, restaurants are usually located at the property.

• 2 Star/Diamonds- Value properties - noticeably enhanced room décor and quality of furnishings, but are not over decorated. Properties offer budget prices and target the budget traveler. These properties do not have restaurants or room service, but offer free parking and sometimes swimming pools. Often offer courtesy shuttles to nearby areas.

• 1 Star/Diamond- Economy hotels and motels - modest, functional, clean, comfortable accommodations, simple amenities- free local calls, cable tv, free parking. Restaurants are often located nearby, no room-service, may have a swimming pool.

Ownership & Management

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Properties are classified by the types of ownership:

independent, chains, franchises

Independent lodging property is a single-unit business not connected with any other business, usually one owner. The owner could be a single person, a partnership, or a corporation. Owners often participate in affiliations with other independent owners.

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Affiliations for Independents Groups advertising, shared customer

reservations center or services, bulk purchasing of necessary supplies, training opportunities for employees are some of the advantages of participation in affiliations.

Hotel Chains• Chains are multiple-unit businesses that have

the same brand name and the sameownership

• A franchise is a unit of a chain that has been purchased by an outside owner. The outside owner runs the franchise in the way required by the chain-owner. The owner pays a fee in exchange the owner receives training, support, advertising, etc.

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Advantages of chains• A recognized brand name• The chain owner also works to develop brand

loyalty. One way is through Frequent Guest Programs (Loyalty Programs)Ex.: Whenever you stay at a unit of the chain, you earn points. Like health club privileges or free nights stay.

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• Central Reservation Center is one office that handles the reservations for all the units in the chain.

A guest can call one toll-free number to reserve a room at any hotel in the chain anywhere in the country or the world

Guests can also make reservations via Internet for any property world-wide

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Additional Advantages of chains

DID YOU KNOW???When the hotel is construction is complete and

the keys to the building are given to the owner he will throw the front door key up onto the roof of the building to signify his wish that the doors to this property never be closed and locked up again!!

Brands• Many hotel corporations have lodging properties at

various service and price levels. Each Brand has a different Target Market.

• Target Market is the market segment the lodging business focuses on or the group of people the property is attempting to attract.

• Example – families & leisure travelers; business travelers; convention/meeting attendees; long-stay guests; budget minded guests; and special event guests

• The Guest Mix is the actual mix of market segments lodging at a property at any given time.

Brands within Marriott Corp.

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Hotel Management

• As far as customers are concerned, they identify the owner with the brand name on the hotel.

• The owner may or may not manage the hotel(s).

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• Management salaries increase as the number of guest rooms increase.

• A larger hotel will theoretically be harder to manage (due to a larger staff, more outlets, and a greater amount of meeting space).

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Hotel Location Classifications

Hotel location types are:

Downtown/Urban Resorts

Highway Airport

Suburban

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Downtown

Hotel Americas, Houston, TexasHotel Americas, Houston, Texas

Hotels are located in dense urban areas, or in the center of a city’s business district, near offices and retail stores and close to entertainment centers.

Many properties are full service. They usually attract business travelers during the week and leisure travelers on the weekends.

65Magnolia Hotel, Houston, Texas

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Suburban Lodging Properties• Suburban hotels

developed because businesses moved to the suburbs.

• Accommodations were needed for business meetings, conventions, and individual business travelers and social events.

La Quinta Hotel Kingwood, TexasLa Quinta Hotel Kingwood, Texas

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Highway lodging properties

As the highway system developed, the demand

for lodging along the highways developed.

Most accommodations along with highways are

limited-service hotels and budget hotels.

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Airport Lodging Properties

• This property is the easiest one to identify, as the airport is the special attraction.

• Commonly provided complimentary shuttle service to and from the airport to make it easy for the traveler.

• Hours for the restaurants, lounges, and other on-site facilities may be longer to accommodate 24 hour travelers

• Multilingual staff a common to assist international travelers

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Gateway cities • Gateway cities are traditionally cities located in areas

that make them the first practical stop for an international flight coming into a country.

• In the USA, Seattle, San Francisco, & LA are gateways for Asia and the Far East.

• NY, Boston, & Washington are gateways to Europe and beyond.

• Miami and Houston are both gateways to South America.

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Changes are coming

• Improvements in airplane technology are allowing for longer direct flights from cities not commonly considered gateways. Chicago, Minneapolis & Atlanta are good examples of new gateway cities.

Lodging concept is the whole idea of the lodging property or chain. This includes the theme, target market, décor, ambiance, and level of service.

• Ex.: Chattanooga Choo Choo Hotel in Tennessee guests sleep in the old renovated rail cars!

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Rack Rate v. Room Rate

Rack Rate is the actual sometimes advertised non-discounted price of a room for one night.

Room Rate is the price actually charged to a guest for one night stay.

What reduces the price? AARP, Government workers, Military, off-peak

season, large group of guest

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Six Major Market Segments

• Business travelers• Convention and Meeting Attendees• Long-stay guests• Leisure and Recreation• Budget• Special – such as Govt. workers & military

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