Case Studies in the Hospitality Industry Weissinger │ Knapp

1. Case Studies in the Hospitality IndustryWeissinger│ Knapp Chapter 3 CLASSIFICATION OF LODGING FACILITIES Presented by: Mercedes Gilliom Instructor Computer Systems Institute

2. Chapter 3 Classification of Lodging Facilities

3. Outline • Accommodations • Basic Terminology Hotels Motels Motor homes Resorts Privately Owned Housing • Location Factors Center City Suburban Airport Resorts Highway • Function and Primary Market Commercial Convention Extended Stay Casino Resort • Quality Ranking • Other Methods of Classification Parking Facilities Size Affiliation Clientele Chapter 3 Classification of Lodging Facilities

4. Learning Objectives • Explain the differences between hotels, motor inns, motels, resorts, and private lodgings. • Classify lodgings by function and market. • Understand how hotel/motels become affiliated with chains. • Describe how parking facilities, size, affiliation, and clientele are used to differentiate types of lodging facilities. • Determine by location the types of properties most likely present. Chapter 3 Classification of Lodging Facilities

5. Chapter 3 Classification of Lodging Facilities

6. Accommodations • We’ll be at the big hotel downtown • We’re just going to stop along the road at motels • I’m going to that beautiful resort at the beach Classification of lodging facilities is often hazy in everyday conversation Chapter 3 Classification of Lodging Facilities

7. Basic Terminology • Physical description • Clientele: type of customers • How it’s different from the other types • Hotels Multistoried lodging facilities Motels Small one story structures found on feeder highways, roads, or beaches • Motor Inns Most commonly seen lodging facility • Resorts Often located at beaches or mountains Privately Owned Housing Guest houses, condos, timeshares Chapter 3 Classification of Lodging Facilities

8. Basic Terminology • Hotels Multistoried lodging facilities • Range in size from 20 rooms to hundreds of rooms • Can be elegant or center city “flea bags” • Found in large cities • Guests are usually business travelers and convention attendees • Most offer valet parking with an attached or near by parking garage (center-city) • Service personnel cater to guests • Services offered – restaurant/bar, coffee shop retail shop • May or may not be members of a chain Motels Small one story structures found on feeder highways, roads, or beaches • Parking is located outside the room door • Often do not have restaurants • Usually individually owned (families provide services • Motor Inns Most commonly seen lodging facility • Range in height from 2 to 6 stories • Often have a restaurant or bar • Provide fewer services than motels • Guests may park their cars in the vicinity of their rooms • Often located near major highways and airports • Usually are part of a chain • Resorts Often located at beaches or mountains • Offer guests recreational activities • May be a chain or individually owned • May be “seasonal” and specialized Privately Owned Housing Guest houses, condos, timeshares • Owners rent bedrooms to visitors (B&B) • Apartments rented to public year round • Apartments rented for a specific period of time Chapter 3 Classification of Lodging Facilities

9. Chapter 3 Classification of Lodging Facilities

10. Location Factors • What are the advantages to each of these locations? • Center City • Suburban Airport Resorts Highway Chapter 3 Classification of Lodging Facilities

11. Location Factors • Center City • Located in business districts • Cater to business travelers holding large conferences • High rise architecture • Suburban • Lower real estate prices than downtown areas • Near shopping centers or recreational facilities • Include conference facilities Airport • Number of facilities has increased with the number of flyers • Originally designed to accommodate business travelers making connections Resorts • Properties located in areas of scenic beauty (mountains and seashore) • May include recreational facilities • Properties charge higher rates because of unique locations Highway • Accommodate interstate audience • Large billboards and neon signs are visible from the road • Properties located in isolated areas charge higher rates Another means of classifying lodgings is by their location Chapter 3 Classification of Lodging Facilities

12. Chapter 3 Classification of Lodging Facilities

13. Function and Primary Market • Commercial • Convention • Extended Stay Casino Resorts Offer… Chapter 3 Classification of Lodging Facilities

14. Function and Primary Market • Commercial • Located in center-city for business traveler’s convenience • Include airport properties • Have business centers featuring office equipment • Convention • Commercial properties with conference hosting capabilities • Offer multiple meeting rooms and large spaces for trade shows • Extended Stay • Offer long term accommodations • Include kitchen and sitting room in each unit • Often called “suite properties” • Located near industrial parks or office complexes • Designed for people on “long-term assignments” or in the midst of job relocation Casino • Many elaborate hotels feature casinos • Profits from gaming make it possible to offer low room rates and food costs Resorts Offer… • Sunning at the beach • Skiing • Horseback riding • Fitness • Tennis • Golf Chapter 3 Classification of Lodging Facilities

15. Chapter 3 Classification of Lodging Facilities

16. Quality Ranking • Ranking properties can be accomplished by government organizations, private organizations, or guidebooks • Rankings are usually related to price • Symbols are used to denote quality ***** Outstanding **** Excellent *** Very good ** Good * Average • Some guide books use dollar signs to denote price ranges • Full service, limited service, and self service are broad categories used to classify properties Chapter 3 Classification of Lodging Facilities

17. Chapter 3 Classification of Lodging Facilities

18. Other Methods of Classification • Parking Facilities • Garages (hotel) • Parking outside the door (motel) • Parking in the vicinity (motor inns) • Size (does not affect quality) • Small – up to 100 rooms • Medium – 100 to 200 rooms • Medium-large – 200 to 500 rooms • Large – over 500 rooms • Affiliation • Independents Privately owned, no management alliance with other properties • Hotel Representatives • May be individuals or a companies • May set up a 1-800 phone number to take reservations • Do convention promotion work • Chains • Organizations of affiliated properties with the same name, operating policies, décor standards, and a common reservation systems • Franchises • Developers agree on a location, pool their finances, and build a hotel • Search nationally for a franchised lodging chain to take over management • Clientele • Transient Vacation or business travelers • Residential Lease rooms with weekly or monthly rates Chapter 3 Classification of Lodging Facilities

19. Trends • Branding companies own or franchise several types of companies that are given different names, which could be considered brands • Branding permits advertising to target specific markets • When consolidations occur in the industry (large hotel companies buy multiple chains)… • personnel management and purchasing are improved • opportunities for international expansion arise Chapter 3 Classification of Lodging Facilities

20. Key Vocabulary • List new words here. Chapter 3 Classification of Lodging Facilities