Chapter 6 Understanding the World of Hotels

Hospitality Today: An Introduction Seventh Edition (103TXT or 103CIN)

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Competencies for Understanding the World of Hotels

1. Briefly describe the dynamic hotel industry, and summarize information about important hotel guest segments.
2. Describe center-city, resort, suburban, highway, and airport hotels, including their services and facilities, and summarize their historical development. 3. Explain various ways hotels can be owned and operated, distinguish chain hotels from independent hotels, and explain how hotels can be categorized by price.

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Competencies for Understanding the World of Hotels

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4. Describe the following hotel categories: all-suite hotels, conference centers, timeshare properties, condominium hotels, and seniors housing. 5. Outline the following steps in developing and planning new hotels: site selection, the feasibility study, and financing.

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Hotel Guest Segments

Corporate individuals

Corporate groups
Convention and association groups Leisure travelers Long-term stay/relocation guests Airline-related guests

Government and military travelers

Regional getaway guests
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Hotel Categories By Location

Center-city Resort Suburban Highway

Airport

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Six Forms of Hotel Ownership/Operation

1. Independently owned and operated 2. Independently owned, leased to an operator 3. Owned by an entity or group, operated by a hotel management company 4. Owned and operated by a chain 5. Owned by an independent investor or group, operated by a chain 6. Owned by an individual or group, operated as a franchise of a chain
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Other Hotel Categories

All-suite hotels Conference centers

Timeshare properties
Condominium hotels Seniors housing

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Types of Conference Centers

Executive conference centers Corporate-owned conference centers Resort conference centers College and university conference centers

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Types of Seniors Housing

Independent-living units Congregate communities Assisted-living facilities Continuing-care retirement communities

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Sections in a Typical Feasibility Study

Market area characteristics
Site/area evaluation

Competition analysis
Demand analysis Proposed facilities/services Financial estimates

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Hotel Financing
Hard costs Soft costs Permanent financing loans (take-out) Construction financing loans

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