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The Structures of the Hotel Industry


Two distinct structures frame the operation and form of the modern hotel: . ... The food and beverage manager has direct operating responsibilities. – PowerPoint PPT presentation

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Title: The Structures of the Hotel Industry

The Structures of the Hotel Industry
  • Chapter 3

  • Two distinct structures frame the operation
  • and form of the modern hotel
  • . Organizational structure
  • . Physical structure
  • Differences notwithstanding, both the
    organizational structure and the building
    structure adhere to basic blueprints.

The Organizational Structure
  • Every hotel, no matter its size and complexity,
    has an organizational structure that enables it
    to carry out its daily operations.
  • Hotels employ a vast number of people with a
    variety of skills. However, each hotel organizes
    this diversified workforce in different ways.

  • Hotel organizations follow the pattern of other
    businesses or social institutions.
  • General managers get the authority they need from
    the ownership interests of the management

  • Ownership can be rest within an individual, a
    partnership, a joint venture, a REIT or a public
  • Companies that both manage and own hotels can
    also own and manage other companies, subsidiaries
    of the parent.
  • Corporations are favored because investors have
    limited liability.
  • Individuals who own shares are not liable for
    company obligations. The corporate person is
    the one responsible.

The General Manager
  • Coordinating the whole, unifying the specialties,
    and directing joint efforts is the job of the
    general manager.
  • General manager (GM or the GM ) is the favored
    title at the unit levelthe operating hotel.
  • Standing alone, the title of general manager
    indicates no ownership interests.

  • The GM is simply the employee most responsible to
    ownership, corporate or otherwise, and the one
    person accountable for the full scope of the
  • Total responsibility for all that happens in
    every department rests with the GM.
  • The GM deals either directly with ownership or
    indirectly through layers of corporate levels and

  • GMs of large organizations have an assistant, the
    executive assistant manager.
  • During the period of one person ownership, GM
    personified their hotels.
  • Studies of general managersand GMs are heavily
    studiedindicate work weeks of up to 65 hours.

  • GM salaries are dependent on several criteria
    the size of the hotel the ADR the manager is
    able to deliver and the revenue generated by the
  • Managers salaries ranging between 50,000 and
    2,000,000 per year.
  • The median salary for general managers is over
    125,000 plus incentives.

  • GM has an assistant executive assistant
    manager, who has one of many assistants
  • Hotel companies support their managers with
    experts in specialized areas of law, employment,
    environment, taxes and technology.
  • The food and beverage manager has direct
    operating responsibilities.
  • At one time, food and beverage accounted for
    nearly half of hotel revenues industry wide.

The Hotel ( or Resident ) Manager
  • The Hotel manager, also called the house manager
    or resident manager.
  • Large hotels do have resident managers and all
    the support positions.
  • Housekeeping security rooms engineering (
    repairs and maintenance ) laundry and valet
    revenue control shops, rentals and business
    centers concierges pools and spas are all
    support positions.

The Rooms Manager
  • Reservations, telephone, concierge, and uniformed
    services are among departments reporting to the
    rooms manager, as is the front desk.
  • Room Reservations Reservations are requests for
    rooms from prospective guests.

Manager of Guest Services
  • One final level of management is needed for our
    full-service-hotel illustration, the manager of
    guest services.
  • Large hotels have assistant managers supporting
    this position during each shift.
  • Guest-service managers control the immediate
    front-office staff, who are pivotal to the rooms
    departments assignment.

The Building Structure
  • Every hotel offers both guest rooms and the
    organization to deliver those rooms. But the
    similarity ends there.
  • The differences in the physical buildings and the
    differences in the delivery systems distinguish
    one property from another. It is these
    differences that segment the industry into its
    many parts.

The Old versus The New
  • The Old Inside Rooms are enclosed by wings of
    the building. The view is downward toward the
    roof on the lower floor, which is often dirty and
  • The New Suites and All-Suites are very nice,
    some have luxurious accommodations include
    kitchens and formal dining rooms, saunas or
    swimming pools, and even libraries.
  • Corner Rooms are the most desirable rooms on the
  • Motor Inns is a child of the motel.

Numbering for Identification
  • The floor number comes first followed by the room
  • Americans number the first sleeping floor as
    floor one regardless of the number of intervening
    levels between it and the ground.
  • Numbering rooms is more arbitrary than numbering
    floors. Each hotel is architecturally unique.

Room Shape and Size
  • Room shape is architecturally driven room size
    is a financial/ marketing decision.
  • Interior room shapes result from the design
    (concave, square, round) of the hotel.
  • Balconies are often part of a façade that adds
    interest to the outside of a building.
  • The 12-foot or 13-foot width is upped to 16 feet,
    a luxury-sized room.

Bed and Bad
  • The Bed
  • ? The modern American hotel room has gone
    through periods which favored, first, the double
    bed and then twin beds.
  • ? Americans are getting bigger. The queen and
    king beds have taken over.

  • Bed Sizes and symbol
  • ? Single Bed symbol S, sleeps a person. When
    the room is furnished with one twin, the symbol S
    is used, when furnished with a double bed, the
    symbol is D.
  • ? Twin Beds A twin room, symbol T, contains two
    beds each accommodating one person.
  • ? Double Bed Symbol D

  • ? Queen and King Beds symbol Q and K. Although
    designed for two three or four persons might
    squeeze in when the room is taken as a family
  • ? Hollywood Bed ( Two beds joined by a common
    headboard ) using the symbol of the twins, T,
    since thats what they are .
  • ? Studio Bed ( Room ) is a sofa by day and a
    bed by night. This is not popular anymore. Symbol
    UP undersized parlor .

  • ? Sleigh Bed Any bed can be a sleigh bed, so
    named because of the sleigh-like shape of the
    headboard and footboard.
  • ? Daybed like studio beds except they are
    additions to the hotel room rather than basic
  • ? Sofa Bed is similar in function to a studio
  • ? Rollaway Bed ( Cot ) is a portable utility
    bed added to the usual room furnishings.

  • ? Crib for babies, similar to rollaway bed.
  • ? Water Bed rarely found in hotel rooms.
  • ? Futon which is a cotton-quilted bed, come in
    regular mattress sizes.
  • ? Wall Bed (Murphy Bed) fold-up bed.

  • The Bath
  • ? The bath accounts for about 20 of the room
    size. A luxurious hotel has a bath of 120 square
  • ? As the bath has grown larger, so has the
    ancillary space. Some travelers dont feel
    comfortable with it.
  • ? Whatever the final design, it must reflect
    guest needs.