RHM 175 Chapter 6- Hotels
Management Contracts
Hotel Company manages a property for years-then-company gets a management fee (2-4.5% gross revenue)
1980's
Hotel War of amenities
Resort Hotels
most expensive to operate
Airport Hotels
business travelers; meeting facilities; shuttles to the hotel; room service
Independent Ownership
no chain affiliation; make ALL decisions
Casino Hotels
elaborate sleeping rooms; fun restaurants and buffets; to support the gaming facilities
Bed & Breakfast Hotels
owners private home
Suburban Hotels
cheaper land; near shopping centers; smaller in avg. room size
Amenity Creep
excessive amenities=increase expenses= little return; now most cut back to reduce cost
All-Suite Hotels only rooms are
all-suites
Amenities
guest services designed to bolster a hotels appeal and encourage repeat business
All-Suite Hotels
attracts business guests; place to work and entertain
Referral Organizations
helps independents compete with chains; share: advertising and reservation system
High Rollers in Casino Hotels
comp rooms and food
Highway Hotels
cost conscious traveler;no-frills and low rates
Reason behind the name "Motel 6"
cost of the room was $6 a night
Only time you see releasing
in Developing Countries
Faces highest failure rate
independent ownership
Hotel leasing
is leased for 20-50% of gross sales
Bed & Breakfast Hotels
popular for intimate and personal service
Airport Hotels
respond to demand immediately; wake-up calls
AAA
uses diamonds to classify hotels
Forbes Travel Guide
uses diamonds to classify hotels
City Center Hotels
usually chain; full service hotels
Partnership
a party(usually a couple) puts 1/2 the capital to buy a hotel; company does the other 1/2