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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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Chapter 3 Classification of Lodging Facilities 5
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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
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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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Chapter 3 Classification of Lodging Facilities 12
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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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Chapter 3 Classification of Lodging Facilities 17
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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.
Chapter 3 Classification of Lodging Facilities 20