A Brief History of the
Hotel Industry
Cyclical History Cyclical History of Early Hotel Industryof Early Hotel Industry
Roman Empire
(30 BC - 400 A.D)
Dark Ages
(400 - 500 )
Renaissance
(1300 - 1600)
Medieval
(500 - 1300)
History of Early Hotel History of Early Hotel IndustryIndustry
Sumerians (2500 BC) – “Houses of the go far people”
Code of Hammurabi (1792 - 1750 BC)
Hotel in Olympus for visitors to games (4th century BC)
Caravanseri (Persia 200 BC) Caravan “inn” or “Palace”
Fortified area that housed animals, goods, and travelers First true commercial “hotel”
History of Early Hotel History of Early Hotel IndustryIndustry
Roman Empire (265 BC – 400 AD) Religious & Military Travel Market Segmentation: Mansio to Taberna
China (250 BC – 100 AD) Post houses/hotels every 10 miles for nearly 300,000
miles
Monasteries (400 – 1300 AD)
Henry VIII Act of Supremacy (1534) Abolished monasteries; Inn keeping flourishes
History of Early Hotel History of Early Hotel IndustryIndustry
_______________ (1353) Guild of 235 Inn keepers
Travelers met at city gate and escorted to appropriate inn
England Ye Olde Fighting Cocks in St. Albans – Oldest Inn (800
AD)
London (1384) – Innkeepers were responsible for the behavior of their guests
Railway Hotels Built at every major terminal during the 19th century
Cyclical History of Cyclical History of Hotels in AmericaHotels in America
Early America (1600 - 1920)
Golden Age (1920’s)
Depression (1930’s)
WW II(1940’s)
Motel Age (1950’s)
Growth (1960 & 70)
Recession(1980’s)
Recovery (1990’s)WW I
(1910’s)
9-11
Firsts in AmericaFirsts in America
First Inn (1634) - “Coles Ordinary” - Boston, MA
First Hotel (1794) - “City Hotel” - New York City
The Tremont House (1829) – First luxury class hotel Private rooms with locks on the door
___________________ (1908) – First modern hotel Slogan: “A room and a bath for a dollar and a half”
Early taverns were unofficial City Halls The Queens Head – Plotted the Boston Tea Party
Innovators & LeadersInnovators & Leaders
Fred Harvey (1876) • Harvey House Hotels
Ellsworth M. Statler (1908) – Buffalo Statler Hotel• Father of American Hotel Industry
Conrad Hilton (1919)• Banker’s Mentality
Kemmons Wilson (1952)• Holiday Inns
History of American HotelsHistory of American Hotels
1920’s - Golden Age of Hotels Unprecedented Building and Occupancy
1930’s - Great Depression 85% of hotels in receivership or liquidation
1940’s - World War II No materials for expansion; 93% occupancy
1950’s - Growth of Motel Chains
Reasons for increased travel after WW II:1. Pent-up Demand2. Transportation Improvements
Interstate Highway Act of 19563. Desire to Travel4. _______________
1960’s - Growth of Hotel Chains Hyatt, Howard Johnsons, Marriott
History of American History of American HotelsHotels
1970’s - Growth of Franchising• Market Segmentation
1980’s - Prosperity & Recession• Product Segmentation & Over Expansion
1990’s - Recovery• Expanding Markets & Mergers
Sept. 11, 2001 - Major Decrease
Recovery began in 2004
History of American History of American HotelsHotels
Cyclical History of Las Cyclical History of Las VegasVegas
Wide Open Gambling Act
(1931)
Glitter Gulch (1931 - 1946)
Flamingo (1946)
The Mob (1940’s - 1970’s)
Howard Hughes (1967)
Corporate Control (1980’s)
Mega-Resorts (1990’s)
9-11
Las Vegas HistoryLas Vegas History1931 - Wide Open Gambling Act
1941 - El Rancho Vegas• Jim Cashman & Tommy Hull
1946 - Fabulous Flamingo• Bugsy Siegel
1967 - Howard Hughes
1980’s - Corporate Control & Mega Resorts• MGM, Hilton, Mirage
1990-Present – Boom ---- Slow ---- Boom