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Unformatted text preview: HRT 101
Introduction to Hospitality Management Agenda 1/23/08 Calendar updates Team project "Industry Voice" Final exam: 3/19 Wednesday, 9:1011:10 AM Marriott: 2/20 Kellogg West: 2/29 M., Feb. 4, outside class team project time Interview due Feb. 8, presentation lineup W., Feb. 13, first presentation Exam 1: 2/01 Friday; Chapter 111 Chapter 5: Full Service Hotels Chapter 6: Limited Service Hotels Chapter 7: Extended Stay Did you know...? Westin at Starwood Which hotel started the innovative concept "heavenly bed"? Chapter 5
Full Service Hotels Types of FullService Hotels Midscale Hotels (example, Holiday Inn) Upscale Hotels (example, Hyatt Hotel) Luxury Hotels (example, Ritz-Carlton)
OH - 5.1 Who Uses FullService Hotels? Local residents using the hotel's food service and meeting spaces Outoftown meeting (group) participants Business travelers Leisure travelers OH 5.2 Organization Chart for F & B at FullService Hotel (pg. 83) OH 5.3 Why Banquets Can Be Profitable Often priced higher than regular restaurant meal. Know exactly what the guests want before; eases food production requirements and reduces waste. The number of attendees at the meal event is guaranteed; the number of service staff required is known in advance. Often additional guest charges for setting up the room and for other related expenses. Mandatory service charges help to ensure that the best of the hotel's servers work banquet events, and these workers are scheduled only for as long as needed. Challenges Confronting Full Service Hotel Managers
Increased competition from limitedservice hotels Increased costs required to operate onsite food services Rising construction costs Difficulties in developing a unified Internet marketing strategy OH - 5.6 Chapter 6 Limited Service Hotels What Makes LimitedService Properties a Unique Hotel Segment? Size (most are small) Large proportion affiliated with a franchise brand Room Rates Available guest services OH- 6.1 Budget (Economy) LimitedService Hotels
Offer lowpriced guest rooms Few, if any amenities Perhaps complimentary continental breakfast or coffee service Popular Brands: Motel 6, Econolodge, Super 8 2004 Limited Service Hotels Ranking by Room Size
1. Days Inns Worldwide, Cendant Corp., 158,521; 1,901 2. Hampton Inn; Hilton Hotels Corp., 127,097; 1,251; 3. Super 8 Motels, Cendant Corp., 126,928; 2,093 4. Comfort Inn, Choice Hotels, 110,646; 1,979 5. Holiday Inn Express, InterContinental, 100,529; 1,261 6. Motel 6, Accor North America, 87,269; 839 7. EconoLodge, Choice Hotels, 51,166; 770 8. Fairfield Inn Marriott, 49,676; 519. 9. La Quinta Inns, La Quinta Corp., 44,764; 370 10. Travelodge Hotels, Cendant Corp., 41,999; 541 Typical Amenities In Midpriced LimitedService Hotels Frequenttraveler programs Swimming pools Larger bathroom areas Complimentary local calls Inroom coffee makers, irons, ironing boards, and hair dryers Upgraded complimentary continental breakfasts Complimentary morning newspapers Fairfield Inn, Hampton Inn, Holiday Inn Express Substantially upgraded room furnishings and dcor Multipurpose suites Hot breakfasts in addition to continental breakfasts Upgraded inroom amenities (soaps, shampoos, and other toiletries) Shopping and laundry services Highspeed Internet access Inroom safes Onpremise laundry facilities Onpremise convenience stores e.g., TownePlace Suites, Hawthorn Hotels & Suites, Candlewood Suites Typical Amenities In Upscale Limitedservice Hotels LimitedService Hotel Guests Group guests Tour bus Sports teams Social groups Religious/fraternal organizations Transient guests Overflow guests from convention hotels Corporate travelers Leisure travelers Simplified Organization Chart for a LimitedService Hotel GM Responsibilities in LimitedService Hotels Investor (owner) relations Community relations Property operations Brand affiliation management OH- 6.6 GM's Functional Responsibilities in a LimitedService Hotel Best Locations for LimitedService Hotels An interstate highway entrance or exit A highly developed shopping or office complex A popular recreational area A highdensity population center A significant local tourist attraction or other demand generator Chapter 7 ExtendedStay Hotels Performance This small and lowkey segment of the business is the industry's strongest, regularly outperforming the industry at all price points, in rate, occupancy and RevPAR. Lodging Hospitality, 2007 Extended Stay Guests A hotel guest seeking lodging accommodations in the same property for a period of seven or more days The users: Traveling corporate consultants trainers on longterm assignments families and individuals seeking temporary housing due to natural disasters, relocation and transitional situations like divorce. Vacationing families, for the roomy accommodations and insuite kitchenettes. OH- 7.1 OH- 7.2 Why Stay In An ExtendedStay Property Instead of an Apartment?
Regular housekeeping services Complimentary breakfasts (in many properties) No utility deposits No longterm lease OH- 7.3 Organization Chart for an ExtendedStay Hotel OH-7.4 OH-7.5 ExtendedStay Statistics OH-7.6 ADR 100 rooms; 75 rented Total sales of $8,742.00 for one night What is ADR for the one night? What do you want? Higher or lower? How could you raise the rate? One way to judge management, but not the best and only way. Why? 75 divided into $8,742 = $116.56 REVPAR
Revenue per Available Room The average revenue generated by each guest room available during a given time period; REVPAR=Occupancy % X ADR To wrap up:
Full service hotels types, users, organization flow, benefits of banquet, challenges Limited service hotels their uniqueness, users, amenities, GM's responsibilities & functions, best locations Extended stay users, amenities, benefits, organization, statistics, ADR, RevPAR ...
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- Winter '08