UNIT III

TYPES OF ACCOMMODATION

Where would you like to stay?

o Think of the advantages and disadvantages of each type

o Which would you choose? Why?

A. Hotel
 Is an establishment providing paid accommodation, they mostly provide rooms
with modern facilities
B. Hostel

 (often referred to as “youth hostels” or “backpackers”) are a loosely defined form

of guesthouse, generally low-budget compared to other places to sleep.
C. Capsule Hotels

 Are a cheap form of accommodation in Japan, usually more or less on par with a
dorm bed in hostels, in terms of pricing. The “rooms are little more than small
one-person capsules with only a mattress, radio and TV

 Note that most capsule hotels are segregated by genders, while many, if not most,
don’t accept female guests at all.
D. Bed and Breakfast (B &B) and Guesthouses

 Provide hotel style rooms. However, they are typically smaller residences and
you will interact with your hosts and other guests, often eating together and
sharing common spaces. B & B and guesthouses are found both inside and out of
major centers. There are many associations and websites that offer help finding a
B & B in the your travel area.
E. Motel or Motor Lodge

 a roadside accommodation designed primarily for motorists, typically having the

rooms arranged in a low building with parking directly outside.

 after World War II, the word motel, coined as a portmanteau contraction of
"motor hotel", originates from the Milestone Mo-Tel of San Luis Obispo,
California, which was built in 1925. 
F. Homestay

 Is a popular form of hospitality and lodging whereby visitors share a residence

with a local of the city or town to which they are traveling.
G. Serviced apartments

 Offer the comfort, privacy and flexibility of a self-catering property, combined

with a city center location and with the added benefits of many hotel-type
services, such as maid service, room service and reception.
H. Resorts

 Are places that offer relaxation and recreation in addition to accommodation,

meals and other basic amenities.
I. AirbnbIs

 an online marketplace that connects people who want to rent out their homes to
people who are looking for accommodations in a particular locale.

 Founded by Brian Chesky, Joe Gebbia, and Nathan Belcharczyk in San Francisco
during 2008.
J. Pension Houses

 Provide rooms with no or few amenities. They usually have private bathrooms
with showers. The rates are much lower than a midrange hotel.
K. Apartelle

 It is a hybrid lodging facility that is a cross between a hotel and an apartment,

providing travelers with housekeeping and a wide range of hotel like amenities.
L. Camp/Park Lodge 
 an accommodations in the nature conservation areas owned by government
agencies and operated by profit management companies.
M. Condominium
 Lodging property in which units are individually owned. In some condominium
properties, units can be places into a rental pool with resulting guest fees split
between the owner and the company managing the units. It is also called condo.
 UNIT IV

Classification of Accommodation According to Size, Location and Target Market

Classification of Hotels according to Size

 Small Hotel – 150 rooms or less

 Medium hotel- 151 to 400 rooms
 Large Hotel – 401 to 500 rooms
 Mega Hotel – 501 and over

Classification according to Location

a. Airport Hotels
 Hotels located near the airports, especially international airports. Typical clientele:
airline passengers with overnight travel layovers, canceled flights and airline personnel.
 Have become poplar venues for conferences

b. City Hotels or Downtown Hotels

 Hotels located at the heart of the city. Designed to cater business clientele.

c. Suburban Hotels
 Hotels located at the suburbs of the cities. For the tourists who do not want to stay in
the heart of the city as they want to be away from the hustle and bustle of the city.

d. Resort Hotels
 Hotels located in the tourist interest places like hills, forest, beaches, on an island, or in
some other exotic location away from the crowded residential areas. They also provide
special activities, indoor and outdoor games such as golf, horseback riding, nature hikes,
skiing etc.

Classification according to Target Market

1. Extended Stay
 Bigger rooms
 Caters long staying guests
 Most guestroom has kitchen
 Most common brands include the use of the following names:
i. Suites
ii. Inns
iii. Residences
iv. Apartments

2. Convention Hotels
 Large hotels
 City Center Hotels
 Have significant banqueting and meeting facilities
 Located in destinations with many attractions and things to do.

3. Casino/Gaming Hotel
 caters to people who gamble

4. Millennial Hotel
 Small hotels
 Trendy design
 Technology should be in the rooms
 Strong internet connection (WIFI)
 UNIT V

Ownership and Affiliations of Hotels

I. Sole Ownership/Independent Hotels

 Ownership basis and do not have any affiliation or contract through any other property
 They do not have any tie-up with any other hotels with regards to policy, procedures
and financial obligations.
 Self-ownership is the concept of property in one’s own person, expressed as the moral
or natural right of person to have bodily integrity and be the exclusive controller of his
body and life.
 Advantages:
i. One head control
ii. Need not take any kind of affiliation
iii. Chances of creativity in development
iv. Profit need not share
 Disadvantages
i. Capital in his on hand
ii. Heavy risk
iii. Lack of new trends
iv. Liability issues
v. High responsibility

II. Lease Arrangements

 Is the contractual agreement calling for the lessee (user) to pay the lessor (owner)
 Most Restaurant most commonly use the ground lease. Ground means that a tenant
pays a long term use of a specified property for a period of time, usually 2-5 years
 Advantages & Disadvantages
i. Leasing is less capital incentives
ii. Leasing may provide more flexibility to a business
iii. If it’s successful, lessor may demand higher rental payments

I. Chain/Group Hotels Operations

 There are many single owner hotels, yet more and more hotels and motels are getting
affiliated to each other.
 This gives them the advantage of large central organization providing reservation
system, management services, financial strength, expertise, manpower specialties,
merchandises and promotional help.
 Affiliated Reservation Network - This network is referred to as the hotel chain’s
reservation system
i. Main Advantages
1. Streamline the process of reservation
2. Reduce overall system cost
 3. Attract business for or refer business to another chain property
ii. Some Duties
1. Serve as an inter-property communication network
2. Serve as an accounting transfer tool
3. Serve as a destination information system
4. Serve as a connection with GDS system including several central
reservation offices connected to each other

I. Management Contract /Professional Management

 Management contracts are hotel management enterprises which operated
properties owned by other entities. In some cases, the hotel owners may arrange
to run their properties through a management contract with an enterprise that
specializes in managing hotels. The reason for this is that the owner may not:
1. have the necessary expertise or;
2. Desire to become involved in the operations of the hotel.
 This also a type of organization
 The contract is entered into a long term basis between the owner and the operator and
usually as per the contract
 Owner retains the legal and financial responsibilities
 Operator pays for the operating expenses and collects from the owner and agreed upon
fees.
 Owner is responsible for paying taxes, insurance and serving debt.

Advantages of Management Contract Disadvantages of Management Conract

Hotel owners • Acquisition of operational • Lost of operational control

expertise which can reduce the
chance of business failure and
enhance the service quality.
• Gain national or international
recognition for the hotel if it is
operated by a reputable
management enterprise
• The owners are not required to
be involved in the hotel
operations
• Financially liable for all costs, expenses
and losses of the hotel
• The management enterprise may have
less incentive and morale in managing
the hotel if only a fixed management
fee is paid without any sharing of
profits.

Advantages of Management Disadvantages of Management Conract

Contract
Management • Receive a management • Over dependence on owner for
Enterprise fee during the contract providing necessary funds in
period regardless of the operations;
 hotel performance; • Minimum input in ownership
• Little or no up-front decisions, such as transfer of
financing or equity hotel ownership from the owner
involved; to another buyer;
• Management contract • No extra rewards for good
period can last for five, business performance if the
ten or twenty years management contract is run in a
fee structure without any
incentive schemes.