HOTEL PROPERTIES MANAGEMENT -

SPEC: HOTEL BUSINESS

TRB5SE11TR-Z19
LECTURE: 2020-10-13
PREPARED BY EWA KOSSAKOWSKA
E-MAIL: E.KOSSAKOWSKA@VISTULA.EDU.PL

Vistula School of Hospitality

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HOTEL PROPERTIES MANAGEMENT
GENERAL TYPES OF THE HOTELS
 UPSCALE LUXURY HOTELS (UPSCALE FULL SERVICE HOTEL FACILITIES WITH
EXCELLENT SERVICE, PROVIDING EXCELLENT GUEST EXPERIENCE), E.G. THE RITZ
CARLTON, INTERCONTINENTAL, FOUR SEASONS
 FULL SERVICE HOTELS (FULL SERVICE ACCOMMODATION, FULL SERVICE
RESTAURANTS, ON-SITE MEETING FACILITIES, ON-SITE RECREATIONAL FACILITIES.
E.G.MARRIOTT, HILTON, SHERATON, HYATT, HOLIDAY INN
 LIMITED SERVICE HOTELS (LIMITED BREAKFAST SERVICE, LIMITED MEETING
FACILITIES, LIMITED RECREATIONAL FACILITIES). E.G. HOLIDAY INN EXPRESS
 BOUTIQUE | LIFESTYLE HOTELS (UPSCALE FACILITIES WITH FULL SERVICE
ACCOMODATION, AND UNIQUE FB OFFERING AND UNIQUE DESIGN). E.G. INDIGO,
KIMPTON
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HOTEL PROPERTIES MANAGEMENT

HOTELS’ RATINGS & CLASSIFICATION

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HOTEL PROPERTIES MANAGEMENT

 HOTELS’ STAR RATING: 1* - 5*

 STR CLASSIFICATION USE CHAIN SCALES: LUXURY-UPPER UPSCALE-
UPSCALE-UPPER MIDSCALE-MIDSCALE-ECONOMY
(FOR THE PURPOSE OF COMPARISON OF VARIOUS BRANDS, „ADR”
(AVERAGE DAILY RATE COUNTED ON GLOBAL & ANNUAL BASIS) IS THE
INDICATOR)
 PERFORMANCE IN US LODGING INDUSTRY IS EVALUATED UPON CHAIN
SCALE SEGMENT: LUXURY-UPPER UPSCALE-UPSCALE-UPPER MIDSCALE-
MIDSCALE-ECONOMY
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HOTEL PROPERTIES MANAGEMENT
HOTELS’ STAR RATING
 1* HOTELS - LIMITED SERVICES & AMENITIES
 2* HOTELS - GOOD BEDROOM WITH PRIVATE BATHROOM
 3* HOTELS - COMFORTABLE & SPACIOUS BEDROOMS, BETTER FF&E, INCL.
COLOUR TV SET, BAR & LOUNGE
 4* HOTELS - LARGER BEDROOMS, BETTER FF&E, F&B OFFERINGS INCL.
RESTAURANT AND MEETING ROOMS, FITNESS CENTER, BUSINESS CENTER
 5* HOTELS – VERY COMFORTABLE AND SPACIOUS PREMISES, OFFERING
LUXURY PRODUCT & SERVICE, SWIMMING POOLS AND WELL-BEING
CENTERS
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HOTEL PROPERTIES MANAGEMENT

 CHAIN & INDEPENDENT HOTELS, OPERATOR SEARCH

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HOTEL PROPERTIES MANAGEMENT

 WHICH INTERNATIONAL HOTEL CHAINS ARE KNOWN TO YOU?

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HOTEL PROPERTIES MANAGEMENT

TOP 5 BIGGEST HOTEL FRANCHISES:

1. MARRIOTT INTERNATIONAL
2. INTERCONTINENTAL HOTELS GROUP
3. CHOICE HOTELS
4. HILTON HOTELS & RESORTS
5. WYNDHAM HOTELS & RESORTS

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LEADING HOTEL BRANDS BY NUMBER OF PROPERTIES AS OF JUNE
2019
1. WYNDHAM HOTELS & RESORTS - 9157
2. CHOICE HOTELS - 7045
3. MARRIOTT INTERNATIONAL - 7003
4. HILTON HOTELS & RESORTS – 5872
5. INTERCONTINENTAL HOTELS GROUP – 5656
6. BEST WESTERN HOTELS & RESORTS – 4088
7. G6 HOSPITALITY – 1391
8. RADISS0N HOTEL GROUP - 1171
Source: statista.com
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HOTEL PROPERTIES MANAGEMENT
LEADING HOTEL BRANDS BY GUEST ROOMS AS OF JUNE 2019
1. MARRIOTT INTERNATIONAL – 1.332.826
2. HILTON HOTELS & RESORTS – 939.297
3. INTERCONTINENTAL HOTELS GROUP – 842.759
4. WYNDHAM HOTELS & RESORTS – 809.933
5. CHOICE HOTELS – 572.659
6. BEST WESTERN HOTELS & RESORTS – 371.871
7. HYATT HOTELS CORP. – 213.173
8. RADISS0N HOTEL GROUP – 181.185
Source: statista.com
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HOTEL PROPERTIES MANAGEMENT

LUXURY HOTELS

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HOTEL PROPERTIES MANAGEMENT
VARIOUS TYPES OF HOTELS WORLDWIDE

1. LUXURY HOTELS OFFER LUXORIOUS ACCOMMODATION SERVICES &

EXPERIENCE TO THE GUESTS. LUXURY HOTELS ARE OFTEN UP TO
200 ROOMS IN GENERAL AND OFFER UNIQUE GUEST EXPERIENCE IN
RELATION TO ACCOMMODATION, F&B SERVICES INCL. ROOM
SERVICE AND LEISURE SERVICES (INCL. SPA, SPORT CENTERS,
WELL-BEING), CONCIERGE SERVICES, BUSIENSS CENTERS,
TRANSPORT SERVICES. NORMALLY ADR IS GREATER THAN 210 US$.

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 HOTEL PROPERTIES MANAGEMENT
United States Brands by chain scale – examples of Luxury Brands
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 DESTINATION HOTEL
 DORCHESTER COLLECTION
 DOYLE COLLECTION
 FAIRMONT HERITAGE PLACE
 FOUR SEASONS
 GRAND HYATT
 INTERCONTINENTAL
 JW MARRIOTT HOTEL
 LOEWS HOTEL
 LOTTE HOTEL & RESORT
 LUXURY COLLECTION
 MANDARIN ORIENTAL
 NOBU HOTEL
 PARK HYATT
 RITZ-CARLTON
 SIX SENSES RESORT & SPA
 SOFITEL
 ST REGIS
 TAJ
 THE PENINSULA HOTEL
 TRUMP HOTEL COLLECTION
 W HOTEL
 WALDORF ASTORIA HOTEL & RESORT

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 Source:Lodging Econometrics
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HOTEL PROPERTIES MANAGEMENT

UPPER UPSCALE & UPSCALE HOTELS

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VARIOUS TYPES OF HOTELS WORLDWIDE

1. UPPER UPSCALE & UPSCALE HOTELS OFFER LUXORIOUS ACCOMMODATION

SERVICES & EXPERIENCE TO THE GUESTS. OFFER FULL RANGE OF SERVICES. IN
GENERAL THOSE PROPERTIES OFFER ABOVE 400 GUEST ROOMS.
2. SAMPLES OF DIFFERENCE BETWEEN UPPER UPSCALE HOTELS & UPSCALE
HOTELS: HIGHER QUALITY OF GUEST ROOMS & AMENTITIES – DIRECT IMPACT
ON GUEST EXPERIENCE, SPECIALLY DESIGNED ROOMS, VARIOUS TYPES OF
SERVICES OFFERED.
3. NORMALLY IN UPPER UPSCALE HOTELS ADR IS BETWEEN 145 US$ AND 210 US$
AND IN UPSCALE HOTELS ADR IS BETWEEN 110 US$ AND 145 US$.

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 HOTEL PROPERTIES MANAGEMENT
United States Brands by chain scale – examples of Upper Upscale Brands
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 AUTOGRAPH COLLECTION
 CANOPY BY HILTON
 CLUB QUARTERS
 CURIO - A COLLECTION BY HILTON
 DOLCE HOTEL
 DREAM HOTEL
 EMBASSY SUITES BY HILTON
 HARD ROCK HOTEL
 HILTON HOTEL & RESORT
 HOTEL INDIGO
 HYATT REGENCY
 KIMPTON HOTEL
 LE MERIDIEN
 MARRIOTT HOTEL
 MGALLERY HOTEL
 MILLENNIUM HOTEL
 PULLMAN HOTEL
 RADISSON BLU
 RADISSON RED
 RENAISSANCE HOTEL
 SHERATON HOTEL
 ST GILES HOTEL
 WESTIN HOTEL
 WYNDHAM GRAND
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 HOTEL PROPERTIES MANAGEMENT
United States Brands by chain scale – examples of Upscale Brands
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 AC HOTEL BY MARRIOTT
 ALOFT HOTEL
 ASTON HOTEL & RESORT
 BEST WESTERN PREMIER COLLECTION
 CLUB MED
 COURTYARD BY MARRIOTT
 CROWNE PLAZA
 DISNEY
 DOUBLETREE BY HILTON
 EUROSTARS HOTEL
 EVEN HOTEL
 FOUR POINTS HOTEL
 HILTON GARDEN INN
 HOMEWOOD SUITES BY HILTON
 HYATT PLACE
 IBEROSTAR
 MELIA
 PARK PLAZA
 RADISSON HOTEL
 RESIDENCE INN
 RIU HOTEL
 STAYBRIDGE SUITES
 WYNDHAM HOTEL Source:Lodging Econometrics

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HOTEL PROPERTIES MANAGEMENT

UPPER MIDSCALE & MIDSCALE HOTELS

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VARIOUS TYPES OF HOTELS WORLDWIDE

1. UPPER MIDSCALE HOTELS OFFER RESTAURANTS AND OTHER F&B

SERVICES, SELECTED RANGE OF BUSINESS SERVICES, LIMITED RANGE OF
RECREATIONAL FACILITIES AND TRANSPORTATION.

2. MIDSCALE HOTELS OFFER LIMITED BREAKFAST, SELECTED RANGE OF BUSINESS

SERVICES, LIMITED RANGE OF RECREATIONAL FACILITIES AND TRANSPORTATION.

3. NORMALLY IN UPPER MIDSCALE HOTELS ADR IS BETWEEN 90 US$ AND 110 US$
AND IN MIDSCALE HOTELS ADR IS BETWEEN 65 US$ AND 90 US$.

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 HOTEL PROPERTIES MANAGEMENT
20 United States Brands by chain scale – examples of Upper Midscale Brands
 BEST WESTERN EXECUTIVE RESIDENCY
 BEST WESTERN PLUS
 BEST WESTERN SIGNATURE COLLECTION
 COMFORT INN
 COMFORT SUITES
 COUNTRY INN & SUITES BY RADISSON
 HAMPTON INN & SUITES BY HILTON
 HAMPTON INN BY HILTON
 HOLIDAY INN
 HOLIDAY INN EXPRESS
 HOME2 SUITES BY HILTON
 MOXY
 MY PLACE HOTEL
 OXFORD SUITES
 PARK INN
 TRYP BY WYNDHAM
 WYNDHAM GARDEN
 YOTEL

 Source:Lodging Econometrics

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 HOTEL PROPERTIES MANAGEMENT
United States Brands by chain scale – examples of Midscale Brands
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 BEST WESTERN
 CANDLEWOOD SUITES
 CLUBHOUSE INN
 CRYSTAL INN
 FAIRBRIDGE INN
 GUESTHOUSE INN
 HAWTHORN SUITES BY WYNDHAM
 IBIS STYLES
 LA QUINTA INN
 LA QUINTA INN & SUITES
 LOYALTY INN
 MAINSTAY SUITES
 OAK TREE INN
 PALACE INN
 QUALITY INN & SUITES
 RAMADA INN
 RED LION INN & SUITES
 RODE INN
 SANDMAN HOTEL & INN
 SETTLE INN
 SLEEP INN
 TRU BY HILTON

 Source:Lodging Econometrics
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HOTEL PROPERTIES MANAGEMENT
VARIOUS TYPES OF HOTELS WORLDWIDE

ECONOMY HOTELS OFFER BASIC AMENITIES & LIMITED BREAKFAST

SERVICES. NORMALLY ADR IS LESS THAN 65 US$.

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 HOTEL PROPERTIES MANAGEMENT
United States Brands by chain scale – examples of Economy Brands
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 AFFORDABLE SUITES OF AMERICA
 AMERICA'S BEST INN
 BUDGET HOST
 BUDGET SUITES OF AMERICA
 DAYS INN
 EXTENDED STAY DELUXE
 FAMILY INN OF AMERICA
 GOOD NITE INN
 GREAT WESTERN
 GREENTREE INN
 HOME-TOWNE SUITES
 HOWARD JOHNSON
 INTOWN SUITES
 JAMESON INN
 KEY WEST INN
 KNIGHTS INN
 MOTEL 6
 NATIONAL 9
 PASSPORT INN
 RED CARPET INN
 RED ROOF INN
 RED ROOF PLUS+
 TRAVELODGE

Vistula School of Hospitality  Source:Lodging Econometrics

University of global opportunities
 HOTEL PROPERTIES MANAGEMENT
United States Brands by chain scale – examples of Unbranded
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 1 HOTEL
 HAVEN HOTEL
 MARGARITAVILLE HOTEL
 MOTTO BY HILTON
 NH HOTEL
 PREFERRED HOTEL & RESORT
 PROPER HOTEL
 RELAIS & CHATEAUX
 REVERB BY HARD ROCK
 STAY EXPRESS INN
 STERLING HOTEL
 THE ORIGINALS
 UNSCRIPTED HOTEL
 VIRGIN HOTEL COLLECTION
 WATERWALK HOTEL
 XANTERRA PARK & RESORT

 Source:Lodging Econometrics

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HOTEL PROPERTIES MANAGEMENT
HOW TO MANAGE HOTEL?
 OWN MANAGEMENT OF THE HOTEL BY OWNER
 HOTEL MANAGEMENT COMPANY (HMC) – OPERATES THE
HOTEL ON BEHALF OF THE OWNER
 HMC FEES CONSIST OF PERCENTAGE OF TOTAL REVENUE &
INCENTIVE RELATED TO GAINED PROFIT
 MANAGEMENTS CONTRACTS FOR NON-BRANDED HOTELS
(AVERAGE 3-10 years)
 MANAGEMENTS CONTRACTS FOR BRANDED HOTELS (AVERAGE
20-30 years)
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HOTEL PROPERTIES MANAGEMENT
HOW TO MANAGE HOTEL?

 BRANDS MANAGING THEIR OWN HOTELS

 BRANDS MANAGING HOTELS ON BEHALF OF THIRD-PARTY
OWNERS
 BRANDS FRANCHISES HOTELS TO INDEPENDENT FRANCHISEES
(AVERAGE ROYALTY FEE 4.5% - 6% ON REVENUES) PLUS
ADDITIONAL FEE AS RESERVATION FEE, MARKETING FEE ETC.

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GLOSSARY:
 OCCUPANCY (%) – PROPORTION OF THE ROOMS AVAILABLE DURING THE
PERIOD VS ROOMS OCCUPIED DURING THE PERIOD.
 AVERAGE ROOM RATE (ARR) – TOTAL ROOM REVENUE FOR THE PERIOD
DIVIDED BY THE TOTAL ROOMS OCCUPIED DURING THE PERIOD.
 ROOM REVPAR (REVPAR) – TOTAL ROOM REVENUE FOR THE PERIOD
DIVIDED BY THE TOTAL AVAILABLE ROOMS DURING THE PERIOD.
 TOTAL REVPAR (TREVPAR) – COMBINED TOTAL OF ALL HOTEL REVENUES
DIVIDED BY THE TOTAL AVAILABLE ROOMS DURING THE PERIOD.
 PAYROLL % – PAYROLL FOR THE HOTEL SHOWN AS A PERCENTAGE OF
TOTAL REVENUE.
 GOP PAR – TOTAL GROSS OPERATING PROFIT FOR THE PERIOD DIVIDED BY
THE TOTAL AVAILABLE ROOMS DURING THE PERIOD.
Source: HotStats.com
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HOTEL PROPERTIES MANAGEMENT

PROFIT & LOSS KEY PERFORMANCE INDICATORS – PRAGUE (EUR) - HOTELS

KPI AUGUST 2019 V. AUGUST 2018

 REVPAR +7.3% to €86.63
 TREVPAR +8.4% to €124.10
 PAYROLL +10.1% to €31.04
 GOPPAR +10.4% to €52.69

Source: HotStats.com

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HOTEL PROPERTIES MANAGEMENT

PROFIT & LOSS KEY PERFORMANCE INDICATORS – DUBLIN (EUR)

KPI AUGUST 2019 V. AUGUST 2018

REVPAR -6.2% TO €172.18
TREVPAR -7.0% TO €237.34
PAYROLL -2.6% TO €65.35
GOPPAR -11.4% TO €104.27

SOURCE: HOTSTATS.COM

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HOTEL PROPERTIES MANAGEMENT

 FF&E (FURNITURE, FIXTURES & EQUIPMENT) IN HOTEL

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HOTEL PROPERTIES MANAGEMENT
 FF&E (FURNITURE, FIXTURES & EQUIPMENT – MOVABLE
TANGIBLE ITEMS,WHICH DEPRECIATE OVER THEIR USEFUL
LIFETIMES IN HOTEL OPERATION.
 FF&E INCLUDES FOR EXAMPLE: INTERNAL DESIGN, WALLS
COVERING, CARPETS, FURNISHING, LIGHTING, DECORATIONS,
EQUIPMENT & TECHNOLOGY FOR: GUEST ROOMS, BATHROOMS,
RESTAURANTS, KITCHEN, CONFERENCE ROOMS, FRONT DESK,
SPA & WELLNESS, LEISURE FACILITIES, PUBLIC AREAS, BACK-
HOUSE AREAS, TECHNICAL INSTALLATIONS (EG.LIFTS), CARS,
MINIBUSES OWNED BY HOTEL (EG.FOR TRANSFERS).
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HOTEL PROPERTIES MANAGEMENT
 FF&E BUDGET IN PRE-OPENING PHASE HAS TO BE PREPARED BY
PROFESSIONALS
 FF&E PROCUREMENT VERY CRUCIAL FOR REALIZATION OF FF&E
BUDGET
 FF&E AVERAGE INVESTMENT BETWEEN 12% AND 16% OF TOTAL
HOTEL INVESTMENT DEPENDING ON HOTEL CATEGORY, BRAND &
INFRASTRUCTURE
 2* HOTELS – AVERAGE INVESTMENT €5K/PER GUEST ROOM
 3* HOTELS – AVERAGE INVESTMENT €10K/PER GUEST ROOM
 4* HOTELS - AVERAGE INVESTMENT €18K/PER GUEST ROOM
 5* HOTELS – FROM €30K/PER GUEST ROOM
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HOTEL PROPERTIES MANAGEMENT
ACCOUNTING FOR FF&E
 FF&E – TANGIBLE ASSETS IN LONG-TERM
 EXPECTED USEFUL LIFE OF FF&E ITEMS – AT LEAST 3 YEARS
 FF&E RESERVE FOR OPERATING HOTELS (AVERAGE 3%-5% OF
TOTAL GROSS REVENUES SHOULD BE KEPT IN FF&E RESERVE),
FOR NEW HOTELS DURING FIRST 3 YEARS FF&E RESERVE CAN
BE LOWER, BUT IT IS WORTH TO KEEP HIGHER FF&E RESERVE
FOR FUTURE REPLACEMENTS & RENOVATIONS, OR
UNEXPECTED REPLACEMENTS IN CURRENT OPERATIONS

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HOTEL PROPERTIES MANAGEMENT

 SAFETY SYSTEMS & CLEAN PROCEDURES IN HOTEL

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FIRE, LIFE & SAFETY (FLS) REQUIREMENTS

 VALID OPERATING LICENSE.

 VALID FIRE CERTIFICATE (CONSTRUCTION OF THE BUILDING,
ANY EQUIPMENT & MATERIALS USED IN HOTEL HAVE TO BE 60-
120 MINUTES FIRE RESISTANT DEPENDING ON STRUCTURE
REQUIREMENT).
 PROPERLY DESIGNED ESCAPE STAIRCASES, EXIT ROUTES.
 FIRE ALARM PANEL, SMOKE/HEAT DETECTORS, SPRINKLERS,
EMERGENCY LIGHTING, FIRE FIGHTING SYSTEMS.

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HOTEL PROPERTIES MANAGEMENT
REQUIRED DOCUMENTS TO OPERATE HOTEL

 FIRE SAFETY SYSTEMS MUST BE TESTED AND MAINTAINED

REGULARLY DEPENDING ON LOCAL AND BRAND REQUIREMENTS.
 SAFETY & SECURITY PROCEDURES IMPLEMENTED INCL. KEY
CONTROL
 STAFF TRAINED IN FL&S INCL. FIRE EVACUATION TEST (EVERY 3
MONTHS), FIRE EVACUATION TEST WITH GUESTS AT LEAST 1/PER
YEAR.

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 THANK YOU!

Ewa Kossakowska
E-mail: e.kossakowska@vistula.edu.pl

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