Accomodation

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Accomodation
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Segmentation hospitality
hospitality (Primary company goal) hospitality (Primary company goal) hospitality (Primary company goal) hospitality (Primary company goal)
Profit-orientated, main source of income, open to everybody, for longer period Profit-orientated, main source of income, open to everybody, for longer period Profit-orientated, main source of income, open to everybody, for longer period Profit-orientated, main source of income, open to everybody, for longer period
Pub (Schankwirtschaft) Restaurant (Speisewirtschaft) Accomodation company (Hotel, Pension, BB etc.) Accomodation company (Hotel, Pension, BB etc.)
Drinks are offered and are consumed on the premises Food is offered and consumed on the premises Guests are accomodated Guests are accomodated
hospitality (Secondary company goal) hospitality (Secondary company goal) hospitality (Secondary company goal) hospitality (Secondary company goal)
Hospitality part of a non-hospitality company, or non-profit hospitality company, offering services for social, political or religios purposes, not necessarily open for everybody Hospitality part of a non-hospitality company, or non-profit hospitality company, offering services for social, political or religios purposes, not necessarily open for everybody Hospitality part of a non-hospitality company, or non-profit hospitality company, offering services for social, political or religios purposes, not necessarily open for everybody Hospitality part of a non-hospitality company, or non-profit hospitality company, offering services for social, political or religios purposes, not necessarily open for everybody
Railroad workers holiday home Union home Union home Müttergenesungswerk
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Segmentation Accomodation companies
Hotellerie Traditional Accomodation companies Parahotellerie Additional Accomodation companies
Hotel (Individual, Chain) Hotel Garni Hotel pension Pension Road side hotel (Rasthof) Rural hotel (Gasthof) Motel Motorway hotel Wellness hotel Aparthotel / Boardinghouse Hospiz Appartement Holiday resorts Holiday flats / houses Youth Hostels Farm Camping, Caravaning Holiday camp Homes of Associations (Vereinsheime) Guest houses Recuperation institutions (Sanatorien) Bed Breakfast Private rooms Collective forms of accomodation like hay hotels Ski and hiking huts
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Definition Accomodation companies

• In Germany Ein Hotel ist ein Beherbergungsbetrie
  b mit angeschlossenem Verpflegungsbetrieb für
  Hausgäste und Passanten. Er zeichnet sich durch
  einen angemessenen Standard seines Angebotes und
  durch entsprechende Dienstleistungen aus.
  (DeHoGA und DTV)
• Necessary conditions
• At least nine guest beds
• Majority of rooms with en suite bath and toilet
• Reception existing
• Parahotellerie
• Others form of accomodation (can be commercial or
  non-commercial)
• Commercial accomodation companies have to be
• Profit-orientated, main source of income, open to
  everybody, for longer period

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Actors in the accomodation market

• Structural forms in accomodation market
• Individual hotels
• Chain hotels
• Franchise hotels
• Management hotels
• Leased hotels
• Cooperation hotels
• Cooperations
• For instance Best Western, Ringhotel,
  Romantic-Hotel
• Reservation service companies
• For instance Utell, HRS, hotel.com
• Marketing rings
• For instance Summit Int., Preferred Hotels,
  Relais Châteaux, Four Seasons, Leading Hotels
  of the World

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Systematic view on company forms
Hotelunternehmungen Hotelunternehmungen Hotelunternehmungen Hotelunternehmungen Hotelunternehmungen
Individual hotels Branded hotels Branded hotels Branded hotels Branded hotels
Individual hotels Hotel Cooperation Chain hotels Chain hotels Chain hotels
Individual hotels Hotel Cooperation Branch system Franchise system Conglomerate
One unit Several units Several units Several units Several units
Legally and commercially independent hotel company Horizontal cooperation of legally and commercially independent hotel companies Unified company with several non-independent branch hotels Vertical association of legally and commercially independent hotel companies Legally independent hotel companies under unified leadership
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Forms of segmentation of hotels

• Completeness of services offered
• Hotel, Hotel Garni, Full hotel
• Location
• City, Resort etc.
• Connection to transport infrastructure
• Motel, Airport hotel
• Quality
• Star rated, other categories
• Duration of stay
• Hours, days, weeks, seasons
• Legal form of company
• Single company, Limited, etc.
• Size of company
• Individual hotel, family hotel, chain hotel,
  major hotel
• Profit orientation
• Profit-orientated, non-profit-orientated,
  communal, social institution, learning hotel,
  minor part of company

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Different types of accomodation

• Class L Luxury hotels
• Hotel, Congress hotel, All-Suite-Hotel
• Accomodation, breakfast, food and beverages
  offered
• International Standard, luxurious, modern
• Greetings of guests in front of the house
• High level of technical and personal services
• Meeting point, modern communication equipment
• Outside Germany often big shopping center
  included
• Price high
• Class 1 First Class Hotel Convention hotel
• Accomodation, breakfast, food and beverages
  offered
• High Standard of comfort
• Good level of technical and personal services
• Price medium to high
• Mostly large number of beds, chain hotels

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• Class 2 Middle class hotel, Aparthotel
• Accomodation, breakfast, food and beverages
  offered
• Practical, solid level of basic services
• Price medium
• Class 3 Hotel Garni
• Accomodation and breakfast, only some food and
  beverages only for guests
• Little city hotels, not much staff, often family
  run
• Price lower medium

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• Class 4 Pensions, Hotel pensions
• Accomodation and breakfast for longer stay
  guests, fixed menu food at specific times
• Simple, no special comfort, often close to spa
  institutions
• Without special services
• Prices dependent on length of stay
• Class 5 Rural hotel Gasthof
• Mainly restaurant, few beds mainly for restaurant
  guests
• Simple, rural, no special comfort
• Often family run with own butcher or fish farm
• Price low, except Star-restaurant places
• Others
• Motels, Resorts, Highway hotels, holiday homes
  etc.

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DeHoGa German Hotel Association

• DeHoGa Association Deutscher Hotel- und
  Gaststättenverband
• 17 Provincial associations (HoGas)
• 3 special associations
• IHA-Hotelverband Deutschland
• UNIPAS-Union der Pächter von Autobahn-Service-Betr
  ieben
• VIC-Verband der Internationalen Caterer in
  Deutschland
• 4 special departments
• Systemgastronomie
• Gemeinschaftsgastronomie
• Bahnhofsgastronomie
• Diskotheken
• 80.000 members in Germany

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System of German hotel classification

• Why Classification?
• Better sales, better product positioning
• Reliable quantitative indicator for potential
  guests
• Better categorization of services offered (not
  quality of services)
• German hotel classification of DeHoGa
• Since 1996 unified German system
• Evaluation of objective, not subjective criteria
• Enjoys legal brand protection
• Development of criteria
• By sub-group hotels of DeHoGa

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• Categories
• Five star categories
• Tourist (Garni)
• Standard (Garni)
• Komfort (Garni)
• First Class (Garni)
• Luxus (Superior)
• Evaluation process
• HoGas on provincial level themselves or by other
  organisations like CoCs)
• Regular random controls
• Classification by document and representative
  sign

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The ten biggest hotel groups in the world (rooms, 2005) The ten biggest hotel groups in the world (rooms, 2005) The ten biggest hotel groups in the world (rooms, 2005)
Rooms Hotels
InterContinental Hotels Group 534.202 3.540
Cendant 520.860 6.396
Marriott International 478.000 2.600
Accor 463.427 3.973
Choice 403.806 4.977
Hilton Corporation 358.408 2.259
Best Western 309.236 4.114
Starwood 230.667 733
Carlson Hospitality Worldwide 147.093 890
Global Hyatt 111.474 356
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Hotel groups and their brands (examples) Hotel groups and their brands (examples) Hotel groups and their brands (examples) Hotel groups and their brands (examples) Hotel groups and their brands (examples)
Company Economy Midscale Upscale / Luxury No. of brands Marken
Accor Ibis Formule 1 Etap Red Roof Inn Motel 6 Novotel Mercure Suite Hotel Sofitel 9
Marriott Courtyard by Marriott Ramada Ritz Carlton Renaissance Marriott 5
Sol Melia Sol Inn Hotels Sol Hotels Melia Comfort Sol Elite Gran Melia Melia Hoteles 6
Maritim Maritim 1
Best Western Best Western 1
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Contract forms

• Rent
• User pays monthly or yearly rent to investor
• Based on RoI of investor
• Different levels of risk and profit sharing
• Fixed rent Fixed amount (plus inflation index)
  regardless of results, long-term contract
• Fixed rent with reduction in first years, or main
  part fixed rent, minor part tied to economic
  result
• Turnover based rent with minimum guarantee
• Risk and profit sharing rent, balance sheets
  accessible for investor

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Contract forms

• Management
• Long term contract
• Management companies operates by order and for
  account of investor but using own brand
• Financial and image risk stays with the investor
• Management company gets turnover-based management
  fee (2-4) and marketing fee (1,5 ) plus
  incentive fee (812 of gross operating revenue)
• Most common form of hotel contract, almost all
  hotels not run by the owners are based on
  management contracts
• Trends more management companies, saturation of
  hotel market in many regions, therefore growing
• - financial engagement of management companies
• - involvement of investors in company policy
  with regard to expansion plans, budgets, human
  resource decisions

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Contract forms

• Franchise
• Franchise grantor provides for a fee brand and
  know-how to franchisee
• Franchisee is independent company acting in own
  name but has to keep the agreed standards of
  grantor
• Grantor gets RoI of brand and know-how
  development
• Franchisee gets material and immaterial support
  of grantor, however is dependent on policy of
  grantor while having the complete risk of his
  business
• Franchisee pay Entrance fee, royalties, marketing
  fees
• Franchise most common form of contract in USA, in
  Europe only 25
• Different forms of franchise agreements in hotel
  business real estate developed by grantor or
  franchisee, franchise to existing hotel etc.
• Closer connection compared to cooperation of
  independent hotels
• Example http//www.accorhotels.com/de/franchise/i
  ndex.shtml