Chapter 2 Hotel Classifications The World of Lodging Hospitality Services : Food & Lodging By: Johnny Sue Reynolds Front Office Operations & Management By: Ahmed Ismail 1

Student Objectives After reading this chapter, you should understand: How hotels are classified Be able to describe the characteristics of full-service hotels, limited-service properties, specialty accommodations, and institutional housing. . 2

Additional Objectives You should also be able to: List and describe the three type of hotel ownership Identify and describe hotel rating systems

Introduction The hotel pioneers previously discussed set the groundwork for many of the designs, services, and amenities considered commonplace today. C. Hilton Statler J.W. Marriott Kimmons Wilson 4

Who are the Guests? Transients/guests are individual travelers seeking accommodations for safety, shelter, and sometimes food. Guests patronize lodging establishments. Lodging means a place to sleep for one or more nights. Accommodations is another word often used to mean a place to sleep.

Lodging Operations Lodging operations can now be found in almost any community. Lodging operations include hotels, motels, motor inns or motor hotels, and bed & breakfast homes. These vary in the level of service, the luxury of the accommodations, the location of the property and much more.

Inn, Motel, Hotel, ??? Owners choose names for their lodging operations that communicate the images they wish to portray. The term “inn” suggests warm, friendly feelings. “Hotel” portrays feelings of efficiency, service, and amenities.

Classifying lodging properties Criteria for classifying and/or identifying hotels are based on: *size *location *product type *price per room *amenities offered *target market *guest mix *level of service

Hotel Sizes The industry use the following to determine a hotel’s size based on its number of rooms. Classification Number of Sleeping Rooms Small 1 to 150 Medium 151 to 400 Large 401 to 1500 Mega 1501 and over 9

6 Categories of Lodging Commercial - service transient guests Luxury - lavish & extreme Resort – a destination lodging property Convention – accommodates large groups Residential – guest stay 5 + nights Specialty accommodations – catchall category

Levels of service A hotel’s service level is measured by the amount of actual and perceived consideration a guest can reasonably expect to receive. A consumer perceives a value in receiving quality service. In the hotel industry, the differences in service levels is often (but not always) tied to incremental increases in cost. 11

Levels of service Full-Service hotels pride themselves on their high level of service and usually charge the highest prices. Limited Service Properties focus on charging lower prices & provides fewer services.

Full-Service Hotel A full-service hotel is large and provides many guests services. First distinguishing feature is its architecture, two or more stories and over 3,000 rooms. The Plaza Hotel in Manhattan NY

Full service hotels Second distinguishing feature is the level of service Services may include: luggage assistance, concierge service, one or more restaurants, bars, lounges, room service, meeting/banquet facilities, spa services, and recreational facilities.

A concierge is a hotel staff member who helps guest make arrangements, such as dinner reservations, transportation arrangements. A concierge also advises guests on what to do and see in the area around the hotel.

Luxury Hotels Luxury hotels provide the highest level of amenities, noted world-wide for their services, lavish room furnishings & public spaces, and technology. Provide more services, more personal attention to guests, and more elegance than a typical full-service hotel. Examples: Ritz-Carlton, Four Seasons Hotels

Commercial properties Full service properties one level below Luxury level are known as First-class properties. They provide better quality and more luxurious, upgraded food service and usually Concierge Services. Examples - Hyatt Hotels, Hilton Hotels, and Westin Hotels

Next level of commercial properties Midrange properties – 24 hour front desk, upgraded interior and exterior decors, limited food service, extra room amenities and other services Examples- Courtyard by Marriott, Four Points Hotels and Holiday Inns

Next level Economy – Upgraded room with color television, telephone, vending machines, and generally located close to a restaurant Examples - Motel 6, Super 8, and Red Roof Inns

Limited-Service Properties L.S.P. are also known as Budget properties. They are smaller, provides fewer services, and is less expensive than a full-service hotel simple, basic, clean rooms with no amenities other than clean towels, linens and soap Examples - Sleep Inn and Microtel

Limited-Service Hotels Budget Hotels Limited Service Hotels offer a medium level of service and a midrange price. typically have 3 or 4 stories has the word Inn in the name offers more services than a motel but fewer than a hotel no restaurant or bell attendant Ex.: LaQuinta Inns, Hampton Inns, Fairfield Inns Budget hotels have the lowest rates and least amount of service. Focus is on comfortable, clean place to sleep at the lowest rate. Motel 6 was the first of it’s kind with room for $6 a night in the 1960s. Ex.: Microtel is a newer property of this kind.

Resort Hotels Resort hotels cater to the vacationer or leisure traveler. A resort is a place that provides recreation, entertainment, and relaxation for vacationers. Often located near seashores, mountains, golf courses, natural wonders, and hot springs. Properties provide high quality comfort, food and entertainment.

Properties provide high quality comfort, food and entertainment. Health spas, private gym/spa and/or tennis facilities, expansive pool areas, and other unique signature attractions created by the hotel itself allow for the resort location classification. Ex. a Lazy River

Convention Hotels Convention hotels are designed to provide for the special needs of conventions and trade shows. A convention is a large meeting, usually sponsored by a group for its members. Number of people attending 50 to 50,000.

Trade show is an exhibit during which people who have goods and services to sell show their goods and services. Exhibit hall is the place where trade shows are held. These facilities must be quite large. Convention hotels are often located near a convention center. A convention center is locally funded, or privately owned structure that caters to large meetings, conventions and trade shows.

McCormick Place in Chicago

McCormick Place Chicago's McCormick Place is the premier convention facility in North America. Located just minutes from downtown Chicago, McCormick Place attracts close to 3 million visitors each year. McCormick Place is comprised of four state-of-the-art buildings: the North and South Buildings, the West Building and Lakeside Center. Together, they form what many consider to be the economic engine that powers the entire convention and tradeshow industry. McCormick Place is committed to creating a great experience for every person, every time!

By The Numbers The size and versatility of McCormick Place are impressive: • 2.6 million sq. ft. of exhibit halls • 1.3 million square feet all on one level • 170 meeting rooms • 600,000 square feet of meeting room space • 6 ballrooms, 2 of which are the largest in the city • Assembly seating for 18,000 people • 4,249 seat theater (Arie Crown) • 3 theaters seating 300 each • Ceiling heights up to 50 feet • Easy access to 5,800 parking spaces

Extended Stay Hotels Guests who stay for 5 to 29 days are called extended-stay guests. Long-stay guests stay for 30 days or more. Normally these guests are traveling business people. The major characteristic of these hotels is that they provide kitchen facilities, more than one room for each accommodation and housekeeping services; some have on-site laundry facilities.

A suite is a hotel accommodation that consists of more than one room. All-suite hotels were developed to provide more space at a lower cost. A suite in these hotels is usually two hotel rooms joined together. These suites combine living space with kitchen facilities.

Extended-&-long stay suites provide a full kitchen with dishes and utensils. Some have grocery shopping service for guests. Residential hotels cater to long-stay guests; the décor is usually more like a home with a kitchen, living area, and bedroom

New Condo Hotel Apartments at Manor Park Resort in Hua Hin, Thailand Condominium Hotels They offer many amenities such as multi-room apartments with full kitchens Usually individually owned Property operated by a management company Many new, upscale hotels are being built with condos above them. The condo owners can use the hotels amenities (room service, housekeeping) New Condo Hotel Apartments at Manor Park Resort in Hua Hin, Thailand

Park Hyatt Hotel and Condos in Chicago

Two types of condo ownership: Individual owner who may live in it fulltime or rent the condo periodically to others when not in use Time-share ownership- the owner owns the right to use the unit for a specific time of the year each year.

HOTEL? MOTEL?? How do you tell? A motel is distinguished from a hotel by its architecture and level of service. They are low-rise, road-side lodging facilities. Parking is close to the rooms. Rooms are entered from the outside and minimal guests services are provided.

Motels & hotels offer a room with a bed, television, phone with free local calls, private bath, and daily housekeeping. Many motels & hotels have swimming pools & have begun to offer free Continental Breakfast. Continental Breakfast consists of breakfast foods that do not need to be cooked.

Small Hotel in Kingwood La Quinta Inn & Suites--Kingwood 22790 US 59; Kingwood, TX 77339 Phone: 1-281-359-6611; Fax: 1-281-359-7711 Hotel Information 2 Floors 50 Rooms 1pm Check In 12pm Check out Amenities Free Bright Side Breakfast™ Free Wireless High-Speed Internet Access Spa Pets welcome Guest Room Amenities Refrigerator in some rooms Premium Cable Channels Cost: $110.00 38

Specialty accommodations They vary in their levels of service, but usually provide less services than full-service hotels. Some specialty accommodations provide guest rooms with private baths, telephones, and televisions. Bed & Breakfast- private home offering one or more guest rooms; full breakfast is part of the room charge

Specialty Accommodations Conference Centers - 60% of occupancy is generated by conference Lodges…rooms, housekeeping services & places for guests to participate in recreational activities

Other specialty accommodations Hostels - an inexpensive place to stay small rooms, kitchens and baths are shared; no linens or toiletries Campgrounds -located in natural environment

Food and Beverage Service Food & beverage is an essential part of the lodging’s service in the lodging properties. Many properties have restaurants (casual & fine dining), snack shops, room service, and cocktail lounges. Limited-service properties often offer a continental breakfast & coffee in the lobby and vending machines.

A room rate that includes meals is called a Meal Plan. Types of Meal Plans: Full American…3 meals a day Modified American…2 meals (breakfast & dinner) Continental …breakfast that does not have to be cooked European…no meals

DID YOU KNOW? When a lodging property is built and construction of the top floor is complete a tree is lifted to the roof until the entire building is done in hopes that the “roots” of the business will grow deep and prosper!

Independent Hotel Ratings A Star system is primarily used to denote the level of quality and service, with one star being the lowest and five stars being the highest level. International travelers can be reasonably confident about what to expect by using these stars as a guide. The criteria by which each hotel is judged may vary from country to country. 45

Rating Systems: Diamonds and Stars! In the United States, the government does not play any role in classifying hotel. This is left up to independent organizations. Magazines, associations and other special interest groups issue ratings based on their won criteria. 46

5 Star/Diamonds- staff provides exceptionally high degree of service, striking and luxurious facilities, and many extra amenities. Guest services are executed in a flawless manner. The guest is pampered by a professional and attentive staff. The property’s facilities and operation help set the standards in hospitality and service for the industry.

5 Stars/Diamonds cont. The hotel décor creates an elegant ambience from the lobby to each individual guest room or suite. Amenities: Luxury dining with a famous chef, concierge service, room service, well-equipped fitness centers, state-of-the-art business center, valet parking

4 Star/Diamonds- excellent service, high level of hospitality, a variety of amenities and upscale facilities in guest rooms, on the grounds and in the public areas . Comfort, class and quality you can count on. Amenities: proximity to desirable shopping areas and restaurants, valet parking, concierge & room service, fitness and business centers, tasteful room décor.

3 Star/Diamonds- Mid-scale hotels - Convenience and comfort in the city or suburb; sophisticated with additional amenities, services and facilities, upgraded of service and comfort for the guest. Amenities: swimming pools, fitness center, concierge and on-site parking. Often located near highways and office complexes, restaurants are usually located at the property.

2 Star/Diamonds- Value properties - noticeably enhanced room décor and quality of furnishings, but are not over decorated. Properties offer budget prices and target the budget traveler. These properties do not have restaurants or room service, but offer free parking and sometimes swimming pools. Often offer courtesy shuttles to nearby areas.

1 Star/Diamond- Economy hotels and motels - modest, functional, clean, comfortable accommodations, simple amenities- free local calls, cable tv, free parking. Restaurants are often located nearby, no room-service, may have a swimming pool.

Ownership & Management

Properties are classified by the types of ownership: independent, chains, franchises Independent lodging property is a single-unit business not connected with any other business, usually one owner. The owner could be a single person, a partnership, or a corporation. Owners often participate in affiliations with other independent owners.

Affiliations for Independents Groups advertising, shared customer reservations center or services, bulk purchasing of necessary supplies, training opportunities for employees are some of the advantages of participation in affiliations.

Hotel Chains Chains are multiple-unit businesses that have the same brand name and the same ownership A franchise is a unit of a chain that has been purchased by an outside owner. The outside owner runs the franchise in the way required by the chain-owner. The owner pays a fee in exchange the owner receives training, support, advertising, etc.

Advantages of chains A recognized brand name The chain owner also works to develop brand loyalty. One way is through Frequent Guest Programs (Loyalty Programs) Ex.: Whenever you stay at a unit of the chain, you earn points. Like health club privileges or free nights stay.

Additional Advantages of chains Central Reservation Center is one office that handles the reservations for all the units in the chain. A guest can call one toll-free number to reserve a room at any hotel in the chain anywhere in the country or the world Guests can also make reservations via Internet for any property world-wide

DID YOU KNOW??? When the hotel is construction is complete and the keys to the building are given to the owner he will throw the front door key up onto the roof of the building to signify his wish that the doors to this property never be closed and locked up again!!

Brands Many hotel corporations have lodging properties at various service and price levels. Each Brand has a different Target Market. Target Market is the market segment the lodging business focuses on or the group of people the property is attempting to attract. Example – families & leisure travelers; business travelers; convention/meeting attendees; long-stay guests; budget minded guests; and special event guests The Guest Mix is the actual mix of market segments lodging at a property at any given time.

Brands within Marriott Corp.

Hotel Management As far as customers are concerned, they identify the owner with the brand name on the hotel. The owner may or may not manage the hotel(s).

Management salaries increase as the number of guest rooms increase. A larger hotel will theoretically be harder to manage (due to a larger staff, more outlets, and a greater amount of meeting space). 63

Hotel Location Classifications Hotel location types are: Downtown/Urban Resorts Highway Airport Suburban 64

Hotel Americas, Houston, Texas Downtown Hotels are located in dense urban areas, or in the center of a city’s business district, near offices and retail stores and close to entertainment centers. Many properties are full service. They usually attract business travelers during the week and leisure travelers on the weekends. Hotel Americas, Houston, Texas Magnolia Hotel, Houston, Texas 65

Suburban Lodging Properties Suburban hotels developed because businesses moved to the suburbs. Accommodations were needed for business meetings, conventions, and individual business travelers and social events. La Quinta Hotel Kingwood, Texas 66

Highway lodging properties As the highway system developed, the demand for lodging along the highways developed. Most accommodations along with highways are limited-service hotels and budget hotels.

Airport Lodging Properties This property is the easiest one to identify, as the airport is the special attraction. Commonly provided complimentary shuttle service to and from the airport to make it easy for the traveler. Hours for the restaurants, lounges, and other on-site facilities may be longer to accommodate 24 hour travelers Multilingual staff a common to assist international travelers 68

Gateway cities Gateway cities are traditionally cities located in areas that make them the first practical stop for an international flight coming into a country. In the USA, Seattle, San Francisco, & LA are gateways for Asia and the Far East. NY, Boston, & Washington are gateways to Europe and beyond. Miami and Houston are both gateways to South America. 69

Changes are coming Improvements in airplane technology are allowing for longer direct flights from cities not commonly considered gateways. Chicago, Minneapolis & Atlanta are good examples of new gateway cities.

Lodging concept is the whole idea of the lodging property or chain Lodging concept is the whole idea of the lodging property or chain. This includes the theme, target market, décor, ambiance, and level of service. Ex.: Chattanooga Choo Choo Hotel in Tennessee guests sleep in the old renovated rail cars!

Rack Rate v. Room Rate Rack Rate is the actual sometimes advertised non-discounted price of a room for one night. Room Rate is the price actually charged to a guest for one night stay. What reduces the price? AARP, Government workers, Military, off-peak season, large group of guest

Six Major Market Segments Business travelers Convention and Meeting Attendees Long-stay guests Leisure and Recreation Budget Special – such as Govt. workers & military