© 2007, Educational Institute Chapter 6 Understanding the World of Hotels Hospitality Today: An Introduction Sixth Edition (103TXT or 103CIN)

© 2007, Educational Institute 1 Competencies for Understanding the World of Hotels 1.Briefly describe the dynamic hotel industry, and summarize information about important hotel guest segments. 2.Describe center-city, resort, suburban, highway, and airport hotels, including their services and facilities, and summarize their historical development. 3.Explain various ways hotels can be owned and operated, distinguish chain hotels from independent hotels, and explain how hotels can be categorized by price. (continued)

© 2007, Educational Institute 2 (continued) 4.Describe the following hotel categories: all-suite hotels, conference centers, timeshare properties, condominium hotels, and seniors housing. 5.Outline the following steps in developing and planning new hotels: site selection, the feasibility study, and financing. Competencies for Understanding the World of Hotels

© 2007, Educational Institute 3 Hotel Guest Segments Corporate individuals Corporate groups Convention and association groups Leisure travelers Long-term stay/relocation guests Airline-related guests Government and military travelers Regional getaway guests

© 2007, Educational Institute 4 Hotel Categories By Location Center-city Resort Suburban Highway Airport

© 2007, Educational Institute 5 Six Forms of Hotel Ownership/Operation 1.Independently owned and operated 2.Independently owned, leased to an operator 3.Owned by an entity or group, operated by a hotel management company 4.Owned and operated by a chain 5.Owned by an independent investor or group, operated by a chain 6.Owned by an individual or group, operated as a franchise of a chain

© 2007, Educational Institute 6 Other Hotel Categories All-suite hotels Conference centers Timeshare properties Condominium hotels Seniors housing

© 2007, Educational Institute 7 Types of Conference Centers Executive conference centers Corporate-owned conference centers Resort conference centers College and university conference centers

© 2007, Educational Institute 8 Types of Seniors Housing Independent-living units Congregate communities Assisted-living facilities Continuing-care retirement communities

© 2007, Educational Institute 9 Sections in a Typical Feasibility Study Market area characteristics Site/area evaluation Competition analysis Demand analysis Proposed facilities/services Financial estimates

© 2007, Educational Institute 10 Hotel Financing Hard costs Soft costs Permanent financing loans (take-out) Construction financing loans