1. MÓDULO 1: THE HOTEL INDUSTRY THE TRADITIONAL HOTEL INDUSTRY Operaciones Hoteleras Agosto 2018

2. Historia de la Hotelería (Hospitalidad)  Un lugar donde hospedarse lejos de casa.  Fines comerciales/culturales

3. SumariaEgipto GreciaRoma

4. Caravanserai – Ruta de la Seda

6. City Hotel – New York (1794).  Primer Hotel.

7. Tremont House: Boston (1829)  Primer hotel 5 estrellas.  Tubería de agua y baño privado.  Personal altamente calificado.  Cocina francesa  Habitaciones de lujo.  Amenities: Agua y jabón en las habitaciones.  Seguridad  Botones

8. Buffalo Statler, NY. 1908  Primer “hotel moderno”.  Salidas de emergencia (incendios).  Interruptor de luz  Ubicación de chapas en la puerta.  Agua caliente y fría en habitaciones.  Espejos de cuerpo entero.  Periódico.  Servicio

9. Conrad HiltonJ. Williams Marriott Kemmons Wilson (Holiday Inn – lealtad) – “The best surprise is no surprise” Mr. Howard Johnson Ray Schultz (Limited service – Hamptom inns)

10. Industria Hotelera La cultura de servicio Ciclos económicos

11. Ciclos económicos: OCC - NY

12. Ciclos económicos: ADR - NY

13. Ciclos económicos: RevPAR - NY

15. Sistemas de medición OcupaciónADRRevPAR Empleados Punto de equilibrio

16. Fuentes de información  Censos  STR (Smith Travel Research)  American Hotel & Lodging Association  World Tourism Organization  PricewaterhouseCoopers  International Hotel and Restaurant Association

17. Características especiales PerecederoUbicaciónOferta fija Altos costos operativos Estacionalidad

18. Clasificación de hoteles TamañoClase TipoPlan

19. 1. TAMAÑO 1. Grandes: Más de 300 habitaciones 2. Medianos: 100 – 300 habitaciones 3. Pequeños: Menos de 100 habitaciones HOTEL# HABITACIONESUBICACIÓN Venetian/Palazzo7100Las Vegas MGM Grand/Mansion/Signa ture 6850Las Vegas First World Hotel6100 Granting Highlands, Malaysia Disney All star resort5500Orlando Izmailovo Gamma Delta 5000Moscú Wynn/Encore4750Las Vegas Luxor4500Las Vegas

20. 2. CLASE – En base en ADR y sistemas de valoración Clasificación$ ADR ±Ejemplos Deluxe900Four Seasons Upper Upscale750Sofitel Upscale525Le Meriden Mid-Price with restaurants175Sheraton Four Points Mid-Price wihtout restaurants140Hampton Inns Economy90La Quinta Budget75Econolodge 1. Full service vs. limited service 2. Número de empleados 3. Rating systems

21. 3. TIPO Comerciales: Estadías cortasResidenciales: Ocupación permanenteResorts

22. 4. PLAN Solamente tarifa Continental: Desayuno Europeo Habitación y tres comidas. Americano Modificado: Desayuno y cena Americano

23. Multiple Affiliations for a Single Hotel 1. Chain: Chain represents the hotel brand, which is clearly displayed to the public on the building and in all interactions with the customer. 2. Parent Company: Often the parent company will have a variety of different types of chains. A parent company may have a range of high-end, middle, and low-end chains; or they may concentrate in one area. 3. Management Company: It is a chain hotel managed and/or owned by the chain or the parent company. 4. Franchise: It is a chain hotel run by a third party where the chain receives some sort of franchise fee. 5. Independent hotels: They are not affiliated with a specific chain. They may be managed or owned by companies listed on pages to follow. 6. Owner 7. Asset Management Company:It represents the owner in the operation of a hotel. 8. Soft brands

24. Chain continued - optional Hotels have evolved but in many aspects have remained the same. The first Holiday Inn – 1952 A new Holiday Inn – 2017 Holiday Inn Nanjing Xuanwu Lake, China Holiday Inn Hotel Courts, Memphis, USA

25. Top 25 Chains in the World (by number of rooms) - optional ChainPropertiesRooms Holiday Inn Express Hotel2,488245,981 Hampton2,218222,746 Holiday Inn1,207222,662 Hilton567207,078 Marriott536191,481 Best Western2,327166,959 Courtyard1,097162,848 Super 82,536162,238 Sheraton Hotel446157,783 ibis Hotel1,077137,693 Days Inn1,710131,572 Quality Inn1,566124,881 Ramada851119,421 JinJiang Inns972118,066 DoubleTree486116,199 Motel 61,282114,225 Crowne Plaza410114,032 Comfort Inn1,408105,925 Best Western Plus1,142102,939 Hilton Garden Inn714102,127 7 Days Inn1,027101,385 Home Inn83095,948 Mercure Hotels74694,846 Residence Inn73489,956 Novotel Hotels45789,755

26. Top 25 Parent Companies in the World (by number of rooms) with Number of Chain Management and Franchise Properties - optional Parent CompanyChain ManagementFranchise Marriott International 1,9084,008 Hilton Worldwide 7104,146 Intercontinental Hotels Group 7494,262 Wyndham Worldwide 1067,557 Accor Company 3,284611 Choice Hotels International 36,409 Best Western Hotels & Resorts 3,591 Carlson Hospitality Company 891,052 Hyatt 349312 Jinjiang Holding 1,17511 G6 Hospitality 500887 Home Inns 182779 7 Days Inn 44983 Groupe du Louvre 541648 LQ Management LLC 318568 Red Lion Hotels Company 291,151 Huazhu Hotels Group 241361 Whitbread Hotel Company 7648 Extended Stay Hotels 629 GreenTree Inns 2693 NH Hotels Group 374 Westmont Hospitality Group 198378 Grupo Sol Melia 16610 Toyoko Inn 254 Riu Hotels & Resorts 109

27. * Note the WW numbers include the U.S. numbers on the next several slides ** Parent companies and chains provided for a general perspective Parent Companies and Chains – InterContinental Hotels Group & Hilton Worldwide – optional** Parent CompanyChainScaleU.S. PropsU.S. RoomsWW Props* WW Rooms* Intercontinental Hotels GroupInterContinentalLuxury Chains 208,35018663,387 Hotel IndigoUpper Upscale Chains44 5,720748,776 KimptonUpper Upscale Chains 5910,8376011,103 ANAUpscale Chains 3876 Crowne PlazaUpscale Chains 13337,516410114,032 EVEN HotelsUpscale Chains 61,0106 HUALUXE Hotels & ResortsUpscale Chains 3873 Staybridge SuitesUpscale Chains 21122,43423625,610 Holiday InnUpper Midscale Chains 601103,3721,207222,662 Holiday Inn Express HotelUpper Midscale Chains 1,974171,3772,488245,981 Holiday Inn Garden CourtUpper Midscale Chains 154 Holiday Inn SelectUpper Midscale Chains 11731 Candlewood SuitesMidscale Chains 35733,65636134,084 Hilton WorldwideConradLuxury Chains 41,249309,361 Waldorf AstoriaLuxury Chains 116,5652510,196 Canopy by HiltonUpper Upscale Chains 1112 Curio CollectionUpper Upscale Chains 246,082317,179 Embassy SuitesUpper Upscale Chains 22352,37023154,326 HiltonUpper Upscale Chains 242101,435567207,078 Hilton Grand VacationsUpper Upscale Chains 35633 DoubleTreeUpscale Chains 32180,087486116,199 Hilton Garden InnUpscale Chains 60483,217714102,127 Homewood SuitesUpscale Chains 40045,06441847,104 DoubleTree ClubUpper Midscale Chains 45494 HamptonUpper Midscale Chains 2,064202,4022,218222,746 Home2 Suites by HiltonUpper Midscale Chains 12613,03212913,349

28. Parent Companies and Chains – Marriott International - optional Parent CompanyChainScaleU.S. Props WW Props*WW Rooms* Marriott InternationalBulgari HotelsLuxury Chains 3205 EditionLuxury Chains2 56741,252 JW MarriottLuxury Chains 2513,9628034,956 Luxury CollectionLuxury Chains 144,1579118,237 Ritz-CarltonLuxury Chains 4011,8819927,731 St RegisLuxury Chains 91,873378,028 W HotelLuxury Chains 258,0865114,211 African PrideUpper Upscale Chains 8783 Autograph CollectionUpper Upscale Chains 6213,75811224,813 Delta HotelsUpper Upscale Chains 1241369,565 Gaylord EntertainmentUpper Upscale Chains 58,1125 Le MeridienUpper Upscale Chains 174,12110528,480 MarriottUpper Upscale Chains 319127,209536191,481 Marriott Conference CenterUpper Upscale Chains 92,7049 Marriott Executive ApartmentsUpper Upscale Chains 263,410 RenaissanceUpper Upscale Chains 8027,12516251,628 Sheraton HotelUpper Upscale Chains 17866,388446157,783 Tribute PortfolioUpper Upscale Chains 83,177184,215 WestinUpper Upscale Chains 10946,16221581,256 AC Hotels by MarriottUpscale Chains 101,6939412,539 aloft HotelsUpscale Chains 7911,90111720,050 CourtyardUpscale Chains 933130,3951,097162,848 elementUpscale Chains 182,672233,474 Four Points by SheratonUpscale Chains 10215,99622539,910 Residence InnUpscale Chains 70485,91473489,956 Springhill SuitesUpscale Chains 35742,21035942,509 Fairfield InnUpper Midscale Chains 80773,84084078,131 MOXYUpper Midscale Chains 229471,294 Protea HotelUpper Midscale Chains 918,766 TownePlace SuitesUpper Midscale Chains291 29,00830130,187

29. Parent Companies and Chains – Wyndham Worldwide & Best Western Hotels & Resorts – optional Parent CompanyChainScaleU.S. PropsU.S. RoomsWW Props*WW Rooms* Wyndham WorldwideDolce Hotels & ResortsUpper Upscale Chains9 2,650153,946 Wyndham Grand HotelsUpper Upscale Chains11 3,0243711,352 Wyndham HotelsUpper Upscale Chains 3711,06710025,258 Days HotelsUpper Midscale Chains7511,546 Howard Johnson ChinaUpper Midscale Chains 5118,303 Tryp by WyndhamUpper Midscale Chains 224411416,247 Wyndham Garden HotelUpper Midscale Chains 6711,35510416,367 Baymont Inn & SuitesMidscale Chains 43334,17343534,524 Hawthorn Suites by WyndhamMidscale Chains 10410,18111010,836 RamadaMidscale Chains 37846,137851119,421 Wingate by WyndhamMidscale Chains 14212,89614913,697 Days InnEconomy Chains 1,520115,4351,710131,572 Howard JohnsonEconomy Chains 22318,16331224,269 Knights InnEconomy Chains 34721,96637723,103 Microtel Inn & Suites by Wyndham Economy Chains 30421,52833624,225 Super 8Economy Chains 1,62498,0172,536162,238 ThriftlodgeEconomy Chains 7349 TravelodgeEconomy Chains30320,60130320,601 Best Western Hotels & Resorts Best Western PremierUpscale Chains23 2,60513916,537 BW Premier CollectionUpscale Chains 122,030485,082 Best Western PlusUpper Midscale Chains 70762,1431,142102,939 Best WesternMidscale Chains1,078 81,0812,327166,959 SureStay PlusMidscale Chains 1521

30. Parent Companies and Chains – Choice Hotels International, Carlson Rezidor Hotel Group & Hyatt Hotels Corporation – optio nal Parent CompanyChainScaleU.S. PropsU.S. RoomWW Props*WW Rooms* Choice Hotels InternationalAscend CollectionUpscale Chains1189,75716814,963 Cambria hotel & suitesUpscale Chains273,503273,503 Clarion CollectionUpscale Chains494,924 ClarionUpper Midscale Chains16622,97724937,304 ComfortUpper Midscale Chains21122,751 Comfort InnUpper Midscale Chains1,10685,8671,408105,925 Comfort SuitesUpper Midscale Chains56343,27758746,454 QualityUpper Midscale Chains20925,262 Quality Hotel & ResortUpper Midscale Chains6863 MainStay SuitesMidscale Chains564,108584,309 Quality InnMidscale Chains1,436114,0201,566124,881 Sleep InnMidscale Chains37927,05639128,323 Econo LodgeEconomy Chains84552,12292355,607 Rodeway InnEconomy Chains55231,98655632.211 Suburban Extended Stay HotelsEconomy Chains586,464616,779 Carlson Rezidor Hotel GroupQuorvus CollectionUpper Upscale Chains3542 Radisson BluUpper Upscale Chains31,19429467,990 Radisson REDUpper Upscale Chains11642313 art'otelUpscale Chains6925 Park PlazaUpscale Chains1209388,704 RadissonUpscale Chains9722,55817536,524 Country Inn & SuitesUpper Midscale Chains44736,15448138,999 Park InnUpper Midscale Chains132,46514626,492 Hyatt Hotels CorporationAndazLuxury Chains81,628163,455 Grand HyattLuxury Chains118,2484725,164 Hyatt ZilaraLuxury Chains2541 Hyatt ZivaLuxury Chains41,860 Park HyattLuxury Chains51,141397,565 HyattUpper Upscale Chains163,642255,862 Hyatt CentricUpper Upscale Chains91,774101,952 Hyatt RegencyUpper Upscale Chains9250,24717277,797 Hyatt HouseUpscale Chains7010,0657210,303 Hyatt PlaceUpscale Chains23932,65127037,686

31. Parent Companies and Chains – ACCOR and Home Inns – optional Parent CompanyChainScaleU.S. Props U.S. RoomsWW Props*WW Rooms* Accor CompanyQuayLuxury Chains 3244 Sofitel Luxury HotelsLuxury Chains5 1,65111930,084 Caesar Park HotelsUpper Upscale Chains 61,314 MGallery by SofitelUpper Upscale Chains 788,093 PullmanUpper Upscale Chains 270211735,449 The SebelUpper Upscale Chains 261,796 Grand MercureUpscale Chains 4710,052 Novotel HotelsUpscale Chains1 48045789,755 Novotel SuitesUpscale Chains 334,085 Aparthotel AdagioUpper Midscale Chains 506,452 Mercure HotelsUpper Midscale Chains 74694,846 all seasonsHotelsMidscale Chains 3433 Aparthotel Adagio AccessMidscale Chains 485,052 ibis HotelMidscale Chains 1,077137,693 ibis StylesMidscale Chains 31431,705 LibertelMidscale Chains 5294 Etap HotelEconomy Chains 1146 Hotel F1Economy Chains 23817,898 Hotel Formule 1Economy Chains 161,767 ibis budgetEconomy Chains 51351,368 Home InnsYotel QQMidscale Chains 5913 Home InnEconomy Chains 83095,948 Motel 168Economy Chains 11622,799 Motel 268Economy Chains 102,240

32. Parent Companies and Chains – G6 Hospitality, 7 Days Group, Jinjiang Holding, Groupe du Louvre, Extended Stay Hotels, Red Lion Hotels Parent CompanyChainScaleU.S. PropsU.S RoomsWW Props*WW Rooms* G6 HospitalityMotel 6Economy Chains1,256 112,1831,282114,225 Studio 6Economy Chains 10910,52911210,794 7 Days Inn Economy Chains 1,027101,385 Jinjiang HoldingJin Jiang HotelUpscale Chains 5214,866 Magnolia HotelsMidscale Chains 7729 Metropolo JinJiang HotelsMidscale Chains 375,548 Bestay Hotel ExpressEconomy Chains 745,381 Goldmet InnEconomy Chains 393,940 JinJiang Inn Style AFEconomy Chains 81,145 JinJiang InnsEconomy Chains 972118,066 Groupe du LouvreConcorde HotelsLuxury Chains 4692 Royal Tulip HotelsUpscale Chains 215,338 Golden TulipUpper Midscale Chains 19225,973 Kyriad PrestigeUpper Midscale Chains 151,327 Campanile HotelMidscale Chains 38125,123 KyriadMidscale Chains 23013,531 Tulip Inn HotelMidscale Chains 878,482 Hotel Premiere ClasseEconomy Chains 26018,530 Extended Stay HotelsExtended Stay AmericaEconomy Chains626 68,87362969,373 Red Lion Hotels CompanyLexingtonUpper Midscale Chains27 2,618302,866 Red Lion HotelUpper Midscale Chains 397,895397,895 3 Palms Hotels & ResortsMidscale Chains 44064 Canadas Best Value InnMidscale Chains 301,493 Red Lion Inn & SuitesMidscale Chains 292,943303,039 Settle InnMidscale Chains 32223 America`s Best InnsEconomy Chains 462,720472,823 Americas Best Value InnEconomy Chains 88151,01088351,134 Country Hearth InnEconomy Chains 533,133533,133 GuestHouse InnsEconomy Chains 362,724362,724 Jameson InnEconomy Chains 201,367211,413

33. Parent Companies and Chains – NH Hotels, Whitbread, Grupo Sol Melia, Riu Hotels, Fairmont Hotels, Westmont Hosp., Shangri-La Parent CompanyChainScaleU.S. PropsU.S. RoomsWW Props*WW Rooms* NH Hotels GroupNH CollectionUpper Upscale Chains 568,117 NHOWUpper Upscale Chains 3828 Hesperia HotelesUpscale Chains 355,400 NH HotelsUpscale Chains 28241,608 Whitbread Hotel CompanyPremier Inn ME&AMidscale Chains 163,300 hub by Premier InnEconomy Chains 5722 Premier InnEconomy Chains 75166,069 Grupo Sol MeliaGran MeliaLuxury Chains 134,119 MELuxury Chains1 12961,200 Paradisus ResortsLuxury Chains 115,015 Melia BoutiqueUpper Upscale Chains 6364 Innside by MeliaUpscale Chains 1313182,728 MeliaUpscale Chains 12859029,728 SolMidscale Chains 3310,441 Riu Hotels & ResortsLuca Hotels & ResortsUpper Upscale Chains 4696 RIU HotelUpscale Chains2 93110542,750 FRHI Hotels & ResortsFairmontLuxury Chains 187,6327228,425 RafflesLuxury Chains 121,945 SwissotelUpper Upscale Chains 16613111,993 Westmont Hospitality GroupBilderbergUpscale Chains 171,696 Crossland Economy StudiosEconomy Chains52 6,500526,500 Red Roof InnEconomy Chains 50346,50747,167 Shangri-La HotelsShangri-La HotelLuxury Chains 8635,016 Hotel JenUpscale Chains 83,000 Traders HotelUpscale Chains 62,377

34. © 2017 STR. All Rights Reserved. Chain Hotels versus Independents - U.S. vs. Non-U.S. Percentages based on Number of Rooms WW percentage (53/47) is based on hotels in STR database, much harder to find WW independents, probably closer to 40/60

35. Management companies with 10,000 rooms or more; no chain managed Top Global Management Companies (by number of rooms) - optional Management CompanyCensus PropsCensus RoomsChain PropsChain RoomsIndep. PropsIndep. Rooms MGM Resorts1946,033001946,033 Caesars Entertainment3339,49812943239,204 Huazhu Hotels Group24433,75724033,0764681 Interstate Hotels12333,0939727,405265,688 Aimbridge Hospitality18432,61417931,39851,216 Nordic Choice Hotels18432,01818432,018 White Lodging16327,49716327,497 Merrylin Holding Ltd12925,86012825,6101250 Crossroads18223,08617722,6235463 Louvre Hotels33022,81733022,817 Vienna Hotel Group13122,30013122,300 Jin Jiang Int'l Hotels Mgmt Co. Ltd.7122,0014713,556248,445 Island Hospitality Management16320,87616320,876 New Century Hotel Mgmt Group6519,2726118,6324640 Pyramid Advisors, LLC7319,2265615,519173,707 HEI Hotels and Resorts6419,1615617,61681,545 Highgate Hotels4917,329237,715269,614 BTG-Jianguo Hotels & Resorts6017,2495917,0671182 Remington Hotels8616,9297515,196111,733 Pillar Hotels & Resorts18016,63717916,4881149 Crescent Hotels & Resorts7315,8946614,11671,778 Crestline Hotels & Resorts, Inc.10515,6659914,41361,252 Two Roads Hospitality7215,4757215,475 Minor International10415,33110015,0544277 Hersha Hospitality Management11215,2359713,855151,380

36. Owned by Felcor and Managed by Aimbridge Hospitality Hilton Worldwide owned and managed Owned and managed by Archon Hospitality

38. Scale  The Scale category is one of the most popular ways the industry looks at different hotels.  There are seven Scale categories, six for chain hotels ranging from Luxury to Economy, and one Scale category for all Independent hotels.  Check the average ADRs of the different scale groups on the next two slides. Note that in the U.S. and the world, they will range from Luxury (with an average close to $300) down to Economy (with an average close to $50).  The average ADR of the Independent Scale group (independent hotels) in the U.S. and world is close to $110.

39. Occ, ADR & Room Revenue - 12 Month Ending December 2016 *Similar ADRs as US, this data is available for any area of the world Global Scales ScalePropertiesRoomsOccupancyADR* Room Revenue Luxury Chains1,965531,29167.4%$266.21$34.3B Upper Upscale Chains5,2741,439,51170.4%$161.30$58.6B Upscale Chains11,1681,892,26470.7%$122.58$59.1B Upper Midscale Chains16,2371,886,78667.0%$99.53$45.2B Midscale Chains11,9481,179,05163.3%$76.02$20.7B Economy Chains20,3101,761,28163.0%$56.21$22.7B Independents105,1967,543,95663.7%$126.91$224.4B

40. Class The Class category is similar to Scale. The names of the categories are the same, but there is no “Independent” Class group. So there are only 6 Class categories, instead of the 7 Scale groups. Independent hotels are slotted into the Scale categories (Luxury through Economy) at similar ADR levels. Chain hotels are always in the same Class as Scale. So the Ritz-Carlton from before will always be in the Luxury Class group since it is in the Luxury Scale group. Class is used globally, but is especially popular outside of North America where there are more independent hotels.

41. © 2017 STR. All Rights Reserved. Example – Slotting independent hotels into Classes Acme Hotel 2016 Annual ADR $123.50 Luxury Chains Annual 2016 ADR Range $150-$220 Upper Upscale Chains Annual 2016 ADR Range $120-$150 Upscale Chains Annual 2016 ADR Range $100-$120 Upper Midscale Chains Annual 2016 ADR Range $85-$100 Midscale Chains Annual 2016 ADR Range $70-$85 Economy Chains Annual 2016 ADR Range $55-$70 Market Because the hotels rate falls within the Upper Upscale rate range of $120-$150, they are slotted as Upper Upscale Class Independent Hotel

42. Occ, ADR and Room Revenue – 12 Month Ending December 2016 Global Hotels by Class ClassPropertiesRoomsOccupancyADR*Room Revenue Luxury Class 7,0401,050,078 67.3%$268.03$68.6B Upper Upscale Class 14,7902,377,452 70.0%$162.46$98.3B Upscale Class 28,2513,359,564 69.9%$123.13$105.1B Upper Midscale Class 34,2633,467,725 66.8%$100.76$84.7B Midscale Class 33,4462,621,529 63.0%$80.99$49.0B Economy Class 54,3083,357,792 61.7%$64.06$48.6B *Similar to the average ADRs by Scale

43. THE MODERN HOTEL INDUSTRY

44. SegmentationBrand Image

45. Brand Customer recognition Brand equity 1.Instant identification 2.Broad distribution 3.Consistent quality 4.Assured level of service