Hospitality Today An Introduction

1. SQA HOT 103

2. Hotels: A Dynamic Industry
Hotel Guest
Hotel Categories
Developing and Planning New Hotels

3. Industry
Trends Going Green

4. Prior to 1960’s hotels were in city-centers or resort
location
1960 Change in pattern of commerce with
development of suburban & airport
1970’s are decade of product differentiation
through: architecture (Hyatt) or décor 1980’s
Decade of amenities inflation & pampering of
guests, especially corporate, spa, club etc.
1990’s decade of quality
service & market
segmentation based: 25 new
brand announcements Post
2000
Merger mania in industry,
development of condo hotel,
LEED construction & internet

5. 1910 Fewer than
10,000 hotels
One million
rooms
300,000
employees
Average size: 60-
75 rooms
1920, 85% Hotel
construction
reaches all-time
peak
2007
47,135 properties
4.4 million rooms
Supports more than 7.5
million jobs

6. Catering to
women
travelers
Extra pillow &
room service
Larger
bathrooms
Change in
marketing
Importance
of energy
management
Rise in energy
cost outpaces
rise in profit
Impact on
environment
LEED &
Green Hotel

7. 2000, US Green Building Council (USGBC)
Leed Certification
Sustainable
Site
Development
Water Savings
Material
Selection
Indoor
Environmental
Quality
Energy
Efficiency

8. Each hotel should form
Environmental Committee
responsible for developing
Environmental Green Plan
for energy, water & solid
waste
Manage your hotel's
environmental performance
by monitoring electric, gas,
water, & waste usage
information monthly &
annually
Replace incandescent lamps
with compact fluorescent
lamps wherever possible
Install digital thermostats in
guestrooms & rest of hotel
Implement towel or linen
reuse program
Install 2.5-gallons per
minute showerheads or less
in guest & employee
showers
Install 1.6-gallon toilets in
all guestrooms
Implement recycling
program including public
spaces to full extent
available in your
municipality; document
your efforts
Implement recycling
program for hazardous
materials found in
fluorescent bulbs, batteries,
& lighting ballasts through
licensed service providers
Purchase Energy Star
labeled appliances &
equipment
Paper products should have
20% or more post consumer
recycled content

9. Corporate individuals Corporate groups Convention &
association groups
Leisure travelers
Airline-related guests Long-term
stay/relocation guests
Government & military
travelers
Regional getaway guests

10. 1 to 2 nights
15 to 20
stays per
year
Base
selection
on prior
experience
& location
Use travel
agent
Value
business
center-
internet
access,
secretarial
services &
private
dinning
Frequent
stay
program
Need
recognition
& special
treatment

11. Attend small conference
May share room
Stay 2 to 4 days
Choose hotel located in suburbs away from distractions

12. Can be very large
At all level of price range
3 to 4 days stay
Booked several years in advance
Very competitive market

13. Sight seeing
01 night only
Multiple occupancy
Pay highest rate
Travel during peak seasons

14. Extended stay
• Assignments
• Relocation
Limited
cooking
facilities
More living
space
Extra closets
Suites &
Residence
Inns

15. Crew
Staff
Cancelled flights
Rock bottom price

16. Reimbursed on fixed per diem allowance
Negotiated accepted rates with very low rates

17. Guests check into nearby
hotels to enjoy days away
from disturbances
Prefer weekends Discounted rates with
meals or entertainment

18. Individual Business
Traveler, 60%
Conventioneers, 20%
Leisure Travelers, 20%
GUEST MIX

19. Center-
city
Resort Suburban Highway Airport

20. Historically located near train station, financial or corporate centers
Declines in 60’s with development of suburban & airport locations
Revitalization in 1980’s.
High rate, many amenities, part of larger development
Costly to build
Expensive parking

21. Mountain, sea side, good weather, nature
Historically simple near mineral spring
Year-around with rate adjustment
Amenities: golf, gambling, snorkeling…
More exotic locations made possible by better transportation
Business travelers stay thru conferences

22. 1960’s with development of large
housing tracks
Tend to be smaller, 250 to 500
rooms
Similar amenities to city-center
Chain affiliated with revenues from
convention & business travelers

23. Holiday
Inn
Importance
of signage
Plenty of
parking
Provide
fewer
services
Have fewer
employee
Cheaper
rate
Chain
affiliation

24. Affiliated with
chains
Highest
occupancy rate
Meeting space
Business clientele
Airline passengers
• Overnight travel
• Layovers
• Cancelled flights
Airline crews or
staff

25. Independently
owned & operated
Independently
owned, leased to an
operator
Owned by an
entity/group,
operated by a HMC
Owned & operated
by a chain
Owned by an
independent
investor or group,
operated by a chain
Owned by an
individual or group,
operated as a
franchise of a chain

26. Limited Service
Mid- Price
First-class/ Luxury

27. Provide clean , comfortable , safe , inexpensive
rooms & meet basic need of guests
Appeal primarily to budget minded travelers who
wants room with
• Minimum services
• Amenities required for comfortable stay
• Unnecessary paying additional cost for services

28. Offering mid-range or otherwise 3 to 4 star hotels service
Appeal the largest segment of travelling public
Does not provide elaborate service
Have adequate staffing
Provide uniformed service , F&B service, in room entertainment's , Wi-Fi etc.

29. Called luxury or Five Star hotels
Target top business executives, celebrities ,
political figures, wealthy as their prime markets
Provide upscale restaurants & lounges , valet,
concierge services & also private dining facilities

30. All-suite hotels
Conference centers
Timeshare properties
Condominium hotels
Seniors housing

31. Two rooms
in one for
price of one
Common
areas are
eliminated:
restaurant,
lobby,
health club
Popular
with
business
travelers
but also
family
Concept
used also in
resorts
Conference
centers
Higher
revenues
Invented in
Europe
Highly
profitable

32. Focus on
meeting &
conferences
Overnight
accommodation
for meeting
attendees
Provide video
conferencing ,
AV equipment,
business services
, flexible seating,
flipchart etc.
Mostly located
outside
metropolitan
areas having
facilities like
golf, swimming ,
tennis, fitness
centers , spas
etc.
Executive,
Corporate-
owned, Resort,
College &
university

33. Guests who purchase
ownership of
accommodations for specific
period
Owners may have unit
rented out by HMC

34. Condo
hotels
High-rise
buildings
developed
Operated
as luxury
hotels
Units
allow
someone
to own
full-
service
vacation
home

35. Designed for seniors
55+
Provide apartments,
cottages,
condominiums &
single-family homes
Offer dining,
housekeeping &
laundry, transportation
& exercise equipment
Offer amenities like
pools, spas,
clubhouses, etc.
Do/n’t provide health
care or assistance such
as medication, bathing,
eating, dressing,
toileting & more
Residents are
permitted to use third-
party home healthcare

36. Site
Selection
The
Feasibility
Study
Financing

37. Start with Site Selection
Market area characteristics; demographics & economic data
& trends: Highway count, office occupancy, airport arrivals
Site/area evaluation: Zoning laws, size, accessibility: roads,
airport…
Competition analysis: existing & proposed competition

38. Demand analysis
from local
commerce,
convention, tourists
Proposed
facilities/services
matching market
Architecture & decor
financial estimates
Fixed charges
property taxes,
insurance, interest
etc.

39. Hard costs: Land, Building, furniture, fixture & equipment (FF&E)
Soft costs: Architectural fees, pre opening expenses, financing costs,
permanent financing loans, construction financing loans
Financial Risk / Reward High Variation in interest rate
Real estate appreciation with potential for large income beyond
BEP(Break Even Point)

40. Any questions