Summary Slide

1
Summary Slide

• Modern Hotel Innovators
• Lodging Management Associations
• Hotel Revenue Sources
• Profit MarginRoom Cost
• Profit MarginFood Cost
• Opportunity Cost
• Captive Audience Quotient
• Internet Exercises
• Hotel Web Sites

Figure 1-1
2
Modern Hotel Innovators

• Ellsworth Statler
• Conrad Hilton
• J. W. Marriott
• Kemmons Wilson
• Jay Pritzker
• What three innovators emerged at about the same
  time in history?

Figure 1-2
3
Lodging Management Associations

• Owner-operated
• Owner-managed
• Independent
• Franchised
• Management contract
• What are the similarities and differences between
  franchising and management contract?

Figure 1-3
4
Brand Recognition CRS National Marketing
Support Standard Operating Procedures
Lodging Management Association
Shared Benefits
Differences

• Greater Quality Control
• Higher Fee to Owners
• Less Owner Control
• Higher Employee Standards
• Higher Performance Expectations

• Less Quality Control
• Lower Fee to Owners
• Greater Owner Control
• Varying Levels of Employee
• Experience and Training

Franchising
Management Contracts
Figure 1-4
5
Hotel Revenue Sources

• Sleeping Rooms
• Meeting/Function Space
• Outlets/Ancillary
• Why is this relationship so important?

Figure 1-5
6
Successful Hotel Equation
1 Selling as many sleeping rooms as possible

2 Selling meeting/function space to utilize its
best potential

3 Maximizing the capacity of the outlets and
ancillary profit centers through the selling of
1 and 2
Figure 1-6
7
Profit Margin

• Room Cost

Room Rate - Room Cost Profit Margin
Figure 1-7
8
Profit Margin

• Food Cost

Food Cost Purchase Price/Menu Price
Figure 1-8
9
Opportunity Cost

• Each night, when a room goes unsold, the hotel
  loses the opportunity to ever sell it again. A
  hotel cannot regain that opportunity.
• The Empty Room Theory states that once a room
  goes unoccupied, it is gone forever.
• Why does opportunity cost differ in
  catering/outlet food and beverage sales?

Figure 1-9
10
Captive Audience Quotient

• Applies to both outlet/ancillary sales and
  catering sales.
• A guest staying at a hotel is more likely, for
  convenience and other reasons, to choose at least
  once some outlet of the hotel (if it offer such
  services).
• Catering traffic at a hotel benefits by the
  captive audience quotient, also called the group
  catering contribution.

Figure 1-10
11
Chain Histories Internet Exercise

• In this chapter histories of Hilton, Marriott,
  Holiday Inn, and Hyatt were briefly discussed.
• Using the Internet (sample URLs are provided
  following the questions), choose a different
  hotel chain and obtain any printed materials you
  can about their beginnings and history. Answer
  the following questions

Figure 1-11
12
Chain Histories Internet Exercise

• What is the name of the hotel chain you selected?
• When was the hotel chain established?
• What was the name of the first hotel in the
  chain?
• Where was it located?
• Who was the person or persons who started the
  chain?

Figure 1-12
13
Chain Histories Internet Exercise

• How many hotels are now in this chain?
• How long has this chain been in operation?
• What types of hotels does this chain operate?
• Where is the corporate office for this chain
  located? Has it changed locations?
• Has there been any mergers or acquisitions within
  this chain?

Figure 1-13
14
Chain Histories Internet Exercise

• Does this chain have more than one brand in its
  repertoire?
• What unique thing did you learn about this chain
  that you didnt know before?
• Why did you choose this chain?
• Describe the hotel in this chain that you would
  most like to visit.
• Would you like to work for this hotel chain? Why
  or why not?

Figure 1-14
15
Chain Histories Internet Exercise

• Is this chain publicly traded? If so, what is
  the current stock price?
• What is the stock price history during the past
  12 months?
• What factors have been involved in any
  fluctuations over the past three years?
• What is the current focus of this chain?
• What percentage of this chains properties are
  corporately owned?

Figure 1-15
16
Hotel Web Site Home Pages
For this case study, try one of the following
web sites Accor http//www.accorhotel.com http
//www.sofitel.com http//www.novotel.com http//w
ww.mercure.com http//www.ibishotel.com http//www
.etaphotel.com http//www.hotelformule1.com http/
/www.motel6.com http//www.redroof.com http//www.
coralia.com/coralia/gb/index.htm
Adam's Mark http//www.adamsmark.com Amerisuites
http//www.amerisuites.com ANA http//www.ananet.o
r.jp/anahotels/e/ Aston http//www.aston-hotels.co
m Best Western http//www.bestwestern.com
Figure 1-16
17
Hotel Web Site Home Pages
Cendant http//www.cendant.com http//www.super8.c
om/ctg/cgi-bin/Super8 http//www.knightsinn.com/c
tg/cgi-bin/KnightsInn http//www.hojo.com/ctg/cgi-
bin/HowardJohnson http//www.villager.com/ctg/cgi-
bin/Villager http//www.ramada.com/ctg/cgi-bin/Ram
ada http//www.travelodge.com/ctg/cgi-bin/Travelod
ge
Choice http//www.choicehotels.com Dorint http//w
ww.dorinthotels.com Drury http//www.druryinn.com
Elegant Resorts http//www.elegantresorts.com Fai
rmont http//www.fairmont.com http//www.cphotels.
com/cp.asp?loccorp
Figure 1-17
18
Hotel Web Site Home Pages
Fiesta Americana http//www.fiestaamericana.com F
our Seasons http//www.fourseasons.com/index.html
Golden Tulip http//www.goldentulip.com Harrah's h
ttp//www.harrahs.com/home/home.html Hilton http/
/www.hilton.com http//www.hilton.com/doubletree/i
ndex.html http//www.hilton.com/conradinternationa
l/index.html http//www.embassy-suites.com http//
www.homewood-suites.com http//www.hampton-inn.com
www.redlion.com http//www.hilton.com/hiltongarde
ninn/index.html
Hyatt http//www.hyatt.com Jameson http//www.jam
esoninns.com http//www.signature-inns.com/index.h
tm Loews http//www.loewshotels.com
Figure 1-18
19
Hotel Web Site Home Pages
Le Meridian http//www.lemeridien-hotels.com http
//www.forte-hotels.com http//www.heritage-hotels.
com http//www.posthouse-hotels.com Mandarin
Oriental http//www.mandarin-oriental.com/
Metropolitan http//www.methotels.com Nikko http/
/www.nikkohotels.com Noble House http//www.noble
househotels.com
Manhattan East Suite Hotels http//www.mesuite.com
Marriott http//www.marriott.com http//www.rena
issancehotels.com http//www.courtyard.com http//
www.residenceinn.com http//www.fairfieldinn.com h
ttp//www.towneplacesuites.com/js/Default.asp http
//www.springhillsuites.com/js/Default.asp
Figure 1-19
20
Hotel Web Site Home Pages
Omega http//www.omegaresorts.com/omega_info/index
.html Omni http//www.omnihotels.com Outrigger h
ttp//www.outrigger.com Park Place http//www.park
place.com Radisson http//www.radisson.com/RAD/Ra
dissonHome/0,2509,,00.html Red Carnation http//ww
w.redcarnationhotels.com Regal http//www.regalho
tel.com/main.html http//www.millennium-hotels.com
Ritz Carlton http//www.ritzcarlton.com
Rosewood http//www.rosewoodhotels.com Royal http
//www.royalhotels.com Sierra
Suites http//www.sierrasuites.com Sholodge http
//www.shoneysinn.com
Figure 1-20
21
Hotel Web Site Home Pages
Sonesta http//www.sonesta.com/sonesta/sonweb2.nsf
Station http//www.stationcasinos.com/home/defau
lt.asp Starwood http//www.starwoodhotels.com/ ht
tp//www.westin.com/main.taf http//www.sheraton.c
om/main.taf http//www.fourpoints.com/main.taf htt
p//www.stregis.com/ http//www.luxurycollection.c
om/main.taf http//www.whotels.com Swissotel http
//www.swissotel.com/index.html
SRS http//www.srs-worldhotels.com Summit http//w
ww.summithotels.com
Figure 1-21
22
Hotel Web Site Home Pages
Super Clubs http//www.superclubs.com Thistle htt
p//www.thistlehotels.com Trump http//www.trump.c
om US Franchise Systems http//www.usfsi.com http
//www.microtelinn.com http//www.hawthorn.com http
//www.bestinn.com Walt Disney World
Resorts http//asp.disney.go.com/disneyworld/db/se
etheworld/resorts/index.asp Warwick http//www.war
wickhotels.com
Wyndham http//www.wyndham.com/default.cfm http//
www.summerfieldsuites.com
Figure 1-22