RHM 175 Chapter 6- Hotels

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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


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