Modern Hotel Innovators

The Atlantis in Dubai

Marriot Timeshare in USA

Shangri-la Hotel Dubai

MiCasa All Suite Hotel, Kuala Lumpur

Ellsworth Milton (E.M.) Statler (October 26, 1863 April 16, 1928) was an American hotel businessman born in Somerset County, Pennsylvania. Statler Hotel - being the first major hotel to have a private bath or shower and running water in every room.

Ellsworth Milton (E.M.) Statler (October 26, 1863 April 16, 1928) was an American hotel businessman born in Somerset County, Pennsylvania. Statler Hotel - being the first major hotel to have a private bath or shower and running water in every room.

Conrad Nicholson Hilton (December 25, 1887 January 3, 1979) was an American hotelier. He is well known for being the founder of the Hilton Hotels chain.

John Willard Marriott (September 17, 1900 August 13, 1985)Founder, Chairman & CEO of Marriott International is a luxury hotel chain. Found in major cities as well as vacation destinations worldwide.

Charles Kemmons Wilson (January 5, 1913 February 12, 2003) was the founder of the Holiday Inn chain of hotels.

Jay Pritzker Pavilion, also known as Pritzker Pavilion or Pritzker Music Pavilion, is a bandshell in Millennium Park in the Loop community area of Chicago in Cook County, Illinois, United States. The pavilion was named after Jay Pritzker, whose family is known for owning Hyatt Hotels.

Hyatt Hotel and Casino Manila

1588 Pedro Gil cor. M.H. Del Pilar, Manila, Philippines 1004 Tel: +63 2 245 1234 Fax: +63 2 247 1234 Email: manila.casino@hyatt.com

HILTON HOTEL

J.W. MARIOTT

10 Newport Boulevard, Newport City Complex, Pasay, Manila 1309, Philippines

HOLIDAY INN MANILA, GALLERIA

1 Asia Development Bank Ave, Pasig 1655

Lodging Management Associations

Owner-operated Owner-managed Independent Franchised Management contract What are the similarities and differences between franchising and management contract?
Figure 1-3

Shared Benefits

Brand Recognition CRS National Marketing Support Standard Operating Procedures

Lodging Management Association

Differences Greater Quality Control Higher Fee to Owners Less Owner Control Higher Employee Standards Higher Performance Expectations Less Quality Control Lower Fee to Owners Greater Owner Control Varying Levels of Employee Experience and Training

Management Contracts

Franchising
Figure 1-4

Hotel Revenue Sources

Sleeping Rooms Meeting/Function Space Outlets/Ancillary

Why is this relationship so important?

Figure 1-5

#1 Selling as many sleeping rooms as possible

Successful Hotel Equation

+
#2 Selling meeting/function space to utilize its best potential

+
#3 Maximizing the capacity of the outlets and ancillary profit centers through the selling of #1 and #2
Figure 1-6

Profit Margin

Room Cost
Room Cost Components H/L/P
Heat Light Power

Labor
Housekeeping Engineering (internal structure maintenance) Grounds Maintenance (land surrounding building).

Overhead
Debt Service of Owners Marketing (local effort) Management Costs (including applicable franchise or management contract fees) Taxes Corporate Obligations

Room Rate - Room Cost = Profit Margin

Figure 1-7

Profit Margin

Food Cost
Menu Price Food Cost $22.00 27.0% $17.95 22.0% $ 9.95 20.0%

Item Purchase Price Steak $5.95/ea. Chicken $3.95/ea. Caesar Salad $1.99/ea.

Food Cost = Purchase Price/Menu Price

Figure 1-8

Opportunity Cost

Each night, when a room goes unsold, the hotel loses the opportunity to ever sell it again. A hotel cannot regain that opportunity. The Empty Room Theory states that once a room goes unoccupied, it is gone forever. Why does opportunity cost differ in catering/outlet food and beverage sales?

Figure 1-9

Captive Audience Quotient

Applies to both outlet/ancillary sales and catering sales. A guest staying at a hotel is more likely, for convenience and other reasons, to choose at least once some outlet of the hotel (if it offer such services). Catering traffic at a hotel benefits by the captive audience quotient, also called the group catering contribution.
Figure 1-10

Chain Histories Internet Exercise

How many hotels are now in this chain? How long has this chain been in operation? What types of hotels does this chain operate? Where is the corporate office for this chain located? Has it changed locations? Has there been any mergers or acquisitions within this chain?

Figure 1-13

Hotel Web Site Home Pages

Super Clubs http://www.superclubs.com Thistle http://www.thistlehotels.com Trump Wyndham http://www.trump.com http://www.wyndham.com/default.cfm US Franchise Systems http://www.summerfieldsuites.com http://www.usfsi.com http://www.microtelinn.com http://www.hawthorn.com http://www.bestinn.com Walt Disney World Resorts http://asp.disney.go.com/disneyworld/db/seetheworld/resorts/index.asp Warwick http://www.warwickhotels.com
Figure 1-22