Case Studies in the Hospitality Industry Weissinger │ Knapp

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Case Studies in the Hospitality IndustryWeissinger│ Knapp

Presented by:Mercedes GilliomInstructorComputer Systems Institute

Chapter 3CLASSIFICATION OF LODGING FACILITIES

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Chapter 3 Classification of Lodging Facilities 2

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OutlineI. Accommodations

II. Basic TerminologyHotelsMotelsMotor homesResortsPrivately Owned Housing

III. Location FactorsCenter CitySuburbanAirportResortsHighway

IV. Function and Primary MarketCommercialConventionExtended StayCasinoResort

V. Quality Ranking

VI. Other Methods of ClassificationParking FacilitiesSizeAffiliationClientele


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Learning Objectiveso Explain the differences between hotels, motor inns, motels,

resorts, and private lodgings.

o Classify lodgings by function and market.

o Understand how hotel/motels become affiliated with chains.

o Describe how parking facilities, size, affiliation, and clientele are used to differentiate types of lodging facilities.

o Determine by location the types of properties most likely present.


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Accommodationso We’ll be at the big hotel downtown

o We’re just going to stop along the road at motels

o I’m going to that beautiful resort at the beach

Classification of lodging facilities is often hazy in everyday conversation


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Basic Terminologyo Physical descriptiono Clientele: type of customerso How it’s different from the other

types

o HotelsMultistoried lodging facilities1. 2. 3. 4.

MotelsSmall one story structures found on feeder highways, roads, or beaches5. 6. 7.

o Motor InnsMost commonly seen lodging facility1. 2. 3. 4. 5. 6.

o ResortsOften located at beaches or mountains1. 2. 3.

Privately Owned HousingGuest houses, condos, timeshares4. 5. 6.


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Basic Terminologyo Hotels

Multistoried lodging facilities1. Range in size from 20 rooms to

hundreds of rooms2. Can be elegant or center city “flea

bags”3. Found in large cities4. Guests are usually business travelers

and convention attendees5. Most offer valet parking with an

attached or near by parking garage (center-city)

6. Service personnel cater to guests7. Services offered – restaurant/bar,

coffee shop retail shop8. May or may not be members of a

chain

MotelsSmall one story structures found on feeder highways, roads, or beaches9. Parking is located outside the room

door10. Often do not have restaurants11. Usually individually owned (families

provide services

o Motor InnsMost commonly seen lodging facility1. Range in height from 2 to 6 stories2. Often have a restaurant or bar3. Provide fewer services than motels4. Guests may park their cars in the

vicinity of their rooms5. Often located near major highways

and airports6. Usually are part of a chain

o ResortsOften located at beaches or mountains1. Offer guests recreational activities2. May be a chain or individually owned3. May be “seasonal” and specialized

Privately Owned HousingGuest houses, condos, timeshares4. Owners rent bedrooms to visitors

(B&B)5. Apartments rented to public year

round6. Apartments rented for a specific

period of timeChapter 3

Classification of Lodging Facilities 8

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Location Factorso What are the advantages to

each of these locations?

o Center City1. 2. 3.

o Suburban1. 2. 3.

Airport4. 5.

Resorts6. 7. 8.

Highway9. 10. 11.


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Location Factorso Center City

1. Located in business districts2. Cater to business travelers

holding large conferences3. High rise architecture

o Suburban1. Lower real estate prices than

downtown areas2. Near shopping centers or

recreational facilities3. Include conference facilities

Airport4. Number of facilities has

increased with the number of flyers

5. Originally designed to accommodate business travelers making connections

Resorts

6. Properties located in areas of scenic beauty (mountains and seashore)

7. May include recreational facilities

8. Properties charge higher rates because of unique locations

Highway9. Accommodate interstate

audience10. Large billboards and neon signs

are visible from the road11. Properties located in isolated

areas charge higher rates

Another means of classifying lodgings is by their location


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Function and Primary Marketo Commercial

1. 2. 3.

o Convention1. 2.

o Extended Stay1. 2. 3. 4. 5.

Casino

6. 7.

ResortsOffer…8. 9. 10. 11. 12. 13.


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Function and Primary Marketo Commercial

1. Located in center-city for business traveler’s convenience

2. Include airport properties3. Have business centers

featuring office equipment

o Convention1. Commercial properties with

conference hosting capabilities2. Offer multiple meeting rooms

and large spaces for trade shows

o Extended Stay1. Offer long term

accommodations2. Include kitchen and sitting

room in each unit3. Often called “suite properties”4. Located near industrial parks or

office complexes

5. Designed for people on “long-term assignments” or in the midst of job relocation

Casino6. Many elaborate hotels feature

casinos7. Profits from gaming make it

possible to offer low room rates and food costs

ResortsOffer…8. Sunning at the beach9. Skiing10. Horseback riding11. Fitness12. Tennis13. Golf


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Quality Rankingo Ranking properties can be accomplished by government

organizations, private organizations, or guidebooks

o Rankings are usually related to price

o Symbols are used to denote quality

***** Outstanding**** Excellent*** Very good** Good* Average

o Some guide books use dollar signs to denote price ranges

o Full service, limited service, and self service are broad categories used to classify properties


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Other Methods of Classificationo Parking Facilities

1. Garages (hotel)2. Parking outside the door (motel)3. Parking in the vicinity (motor inns)

o Size (does not affect quality)1. Small – up to 100 rooms2. Medium – 100 to 200 rooms3. Medium-large – 200 to 500 rooms4. Large – over 500 rooms

o Affiliation1. Independents

Privately owned, no management alliance with other properties

2. Hotel Representativesa. May be individuals or a

companiesb. May set up a 1-800 phone

number to take reservationsc. Do convention promotion work

o Chains1. Organizations of affiliated

properties with the same name, operating policies, décor standards, and a common reservation systems

2. Franchises a. Developers agree on a

location, pool their finances, and build a hotel

b. Search nationally for a franchised lodging chain to take over management

o Clientele1. Transient

Vacation or business travelers2. Residential

Lease rooms with weekly or monthly rates


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Trendso Branding

companies own or franchise several types of companies that are given different names, which could be considered brands

o Branding permits advertising to target specific markets

o When consolidations occur in the industry (large hotel companies buy multiple chains)…

1. personnel management and purchasing are improved2. opportunities for international expansion arise


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Key Vocabularyo List new words here.


Case Studies in the Hospitality Industry Weissinger │ Knapp

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