An Overview of the

Lodging Industry

Page 1
 What is the Hospitality Industry
all about?
 A broad category of fields within the service industry that includes:
 Lodging and Accommodations
 Restaurants and Catering Services
 Event planning
 Resorts and Theme Parks
 Transportation, Air lines and Cruise Lines
 And additional fields within the Tourism Industry
 mostly depends on the availability of leisure time and disposable
income
 consists of multiple groups such as operations groups, management,
marketing, and human resources
 covers a wide range of organizations offering food service and
accommodation and is divided into sectors / sub-industries according
to the skill-sets required for the work involved
Makati Shangri-La Manila Hotel Peninsula Manila

Dusit Thani Sofitel Philippine

Manila Mandarin Oriental
Plaza

THE HOTEL INDUSTRY

 History : Ancient Times
 Bible references
– Old Testament – Jacob and his brothers travelling to Judea and slept in an inn
 Babylon, around 2050 BC
– Then considered the center of the world
– The presence of alehouses - places providing accommodations and drinks
 Ancient Greece, around 400 BC
– Athens; Ports had INNS that provided accommodations
 Roman Era
• Abundant travelling
• Many types of accommodations were created – often meager and offered
only shelter and little food
• Military and politicians brought with them tents
 Ancient Persia
• Caravans: common form of travelling; equipped with its own tent
• Khans : very first structures built for accommodation purposes at certain
points on caravan routes
• Khans  YAMS (post houses), also referred to as TABERNAE
• MARCO POLO  yams were suitable for a King.
 History: Middle Ages
• Tabernas and couponas
– “attached inns”
• Middle Ages (around 476 AD)
– Monasteries functioned as inns
– XENODOCHEIONS (Greek for “inn or resting place”) - separate
buildings for accommodating travelers
– Charlemagne  law for Christians to “provide food and
accommodations to travelers for a maximum of 3 NIGHTS”
• 1282, Florence , Italy
– Innkeepers Guild
– Inns  owned by the city but were operated by the
innkeepers through a licensing agreement for 3 years
– By the year 1290, there were already 86 inns in Florence
 History: 16th – 19th Century
• England
– Taverns were common -- mainly for lodging and served drinks.
• Stagecoaches (1650) / Public coach service
– only way to get around England
– Inns and taverns were always located along the routes
• 17th century INNs
– were a popular meeting place for nobles, politicians, nobility,
priests and others
• 1788, HOTEL DE HENRI IV
– first European Hotel built in Nantes, Italy, costing only around
17,500 pounds
– Had 60 beds and was considered the finest in Europe
 Founders of the Hotel Industry
 Ellsworth Milton Statler (EM Statler)
 Developed the Statler chain of hotels
 Known as the Father of the Modern Commercial Hotel Industry
 Started with a hotel in Buffalo New York (1901), which he
eventually expanded into a chain of hotels before he sold his
chain to Conrad Hilton in 1954, creating the Statler – Hilton
chain
 Conrad Hilton
 Known as the King of Innkeepers
 Became successful after both World War I & II through his
acquisitions
 Founded the Hilton Hotels Corporation in 1946, and the Hilton
International Company in 1948
 After purchasing the Statler chain, created the first major chain
of American Hotels that follow standard operating procedures in
marketing, reservations, service quality, F&B operations,
housekeeping and accounting
 Founders of the Hotel Industry
 Cesar Ritz
 One of the most respected hoteliers in Europe
 Hotelier at the Grand National Hotel (Lucerne, Switzerland)

 William Waldorf Astor & John Jacob Astor IV

 Envisioned a hotel for the wealthy having the opulence of
European mansions with the homey feel of a private residence
 1893, 13-storey Waldorf Hotel @ 5th Ave. NY which was
later joined by a 17-storey Astoria Hotel (1897)  became
known as the Waldorf-Astoria
 In 1929 demolished to make way for the Empire State Building, but
was moved to its current location @ Park Avenue in 1931
 Known for it luxurious “hotel within a hotel”, the Waldorf Towers,
occupying the 28th – 42nd floors of the hotel
 Was designated a New York city landmark in January 1993
 Founders of the Hotel Industry
 Kemmons Wilson
 Started the Holiday Inn chain in the early 1950s opening
the first in Memphis, Tennessee
 Goal was to build a chain of hotels for the traveling
family, later expanding to include business travelers
 Innovated amenities and high-rise architecture

 Introduced the in-house Holidex central reservation

system
 John Willard (JW) Marriott & JW Marriott Jr.
 Founded their hotel empire in 1957
 Expanded its reach by 1987 through its acquisitions and
all-suite hotel concept and limited-service hotels concept.
 Founders of the Hotel Industry
 Ernest Henderson & Robert Moore
 Started the Sheraton chain in 1937 with the acquisition of
their first hotel, the Stonehaven (Springfield, Massachusetts)
 By 1947, Sheraton was the first hotel chain to be listed on
the New York Stock Exchange
 Sheraton chain is currently owned by Starwood Hotels &
Resorts Worldwide
 Ray Schultz
 Founded the Hampton Inn hotels in the early 1980’s, a
company in the Holiday Inn Corporation
 Developed a product and service for the cost-conscious
business traveller and pleasure travellers alike, creating an
expansion of up to more than 800 properties worldwide.
 Hotel Industry Milestones
 1834, NY
 Indoor plumbing introduced by Astor
of Astor House (Hotel), to be
followed by gaslight in 1836.
 1853 – Steam elevators
 1859 – elevators
 1875, San Francisco
 The PALACE HOTEL was built with
800 rooms for USD 5 million and
was considered as the best and
biggest of the time – was destroyed
in an earthquake in 1906 but was
rebuilt
 famous meeting place of celebrities
 1878, NY
 Oldest Hotel Association was
founded
 1881 – Electric Lights
 1907, NY
 NETHERLANDS HOTEL was first
to have telephones in the rooms
 RESORTs
 1832, Homestead, Virginia
 1857, The Greenbrier, Virginia;
700 rooms
 1887, The Grand Hotel,
Michigan; 275 rooms
 SPAs
 Saratoga Springs, NY – most
famous
 Were usually mineral springs or
pools believed to be medicinal
or healthful
 Hotel Industry Milestones
 1920
 American Hotel and Motel
Association was created for
two purposes:
 Protect hotels from fraud by
guests
 Educate and train hotel
personnel
 Automobile industry
 Around the 1920’s
 Led to the creation of
MOTELS, initially, the Motor
Hotels created by
entrepreneurial farmers, and
were built along the roads
right in front of their property.
 Advent of Air travel
 Air travel became available to
masses and business was
booming
 Conventions and conferences
became part of the services
offered by hotels and
hospitality establishments
 Resort hotels started to spring
up around the world as
companies and businesses
started opening regional
branches
 Package plans and tours were
initially offered by hotels and
resorts in conjunction with
airlines.
 Hotel Industry Milestones
 1927 - in-room radio  1970s – electric cash
 1940 – air-conditioning register; POS systems and
 1950 – electric elevator keyless locks; color
 1958 – free television television standard
 1964 – Holiday Inn  1973 – free in-room
reservation system with
centralized computer movies (Sheraton hotel)
 1965 – message lights on  1980s – PMS; in-room
telephone; initial FO guest check out
computer systems
introduced followed by  1983 – in-room personal
room status capability computers; call accounting
 Hotel Industry Milestones
 1990s
 on command video (on-demand movies)
 LodgeNet Entertainment
 Interactive guest services (room shopping, visitor’s guide, fax
delivery on TV, interactive guide to hotel’s facilities and activities,
etc.)
 Internet reservations
 Introduction of legislation that monitored hotel ownership
 2000s
 Wireless technology: VIP check-in, guest “hot spot” centers / areas
in hotels
Hotels, Resorts & Lodging
Establishments
LODGING ESTABLISHMENT
• Any establishment that offers basic accommodations
for a fee

HOTEL
• From French hôtel, meaning host
• a type of establishment that provides paid lodging,
usually on a short-term basis and often provides a
number of additional guest services such as an
accommodation room’s restaurants, a swimming pool,
childcare, entertainments, services and facilities, etc.

RESORT
• Designed for relaxation and vacationing guests as
they target the leisure market
HOTEL
• a building, edifice or premises, or a completely
independent part thereof, which is used for the regular
reception, accommodation or lodging of travelers
and tourists and the provision of services incidental
thereto for a fee

RESORT
• any place or places with pleasant environment and
atmosphere conducive to comfort, healthful relaxation
and rest, offering food, sleeping accommodation and
recreational facilities to the public for a fee or
remuneration
Several Common classification
classifications terms frequently used
according to: in the industry:
 Commercial Hotels
 Property types
 Airport Hotels
 Market
 Resorts
orientation
 Bed and Breakfast
 Location Hotels
 Levels of  Suite Hotels
Service  Extended Stay Hotels
 Affiliation  Convention Hotels
 Casino Hotels
 Hotel
 Usually offers a full range of accommodations and services
 Size ranges from 20 – 2,000 rooms
 Motel
 Offers a limited range of services, located along major roads and
highways or airports
 Size ranges from 10 – 50 units
 All – Suites
 Offers a wide range of services for a high-end market
 Size ranges from 50 to more than 100 units
 Limited-Service Hotels
 Limited ranges of services, but cater to a more “expensive” market
 Can range from 100 to more than 200 rooms
 Extended –stay Hotels
 Offer guests their home-away-from-home atmosphere
 Services may include a fully-equipped kitchen
 Residential Hotels
 Provide guest accommodations for the long term
 this is an apartment house with full hotel services
and are usually the official residence of a guest
rather than a home away from home; also requires
a leasing agreement between the guest and the
establishment
Ex: apartele, extended-stay hotels, condotels
 Commercial Hotels
 Provide short-term accommodations
 Also referred to as Transient Hotels
 one that caters to people while they are
temporarily away from home, whether a day, week,
or month, on business or pleasure
 City Hotels (Small or Large Cities)
 main purpose: accommodate the guest who have a business to
transact, is travelling for pleasure, or is just passing through; usually
has a coffee shop while most have other catering services
 Large citiy hotels have commercial, industrial, financial, cultural
centers, and usually has about 100 to thousands of rooms
 Downtown hotels
 located at the centre of the city in busy commercial and shopping
district.
 Suburban hotels
 located on the outskirt of the city where land is cheaper
 Motels / Hi-way / interstate hotels
 Resort hotels
 hotels within resorts, usually located near the sea, beaches, etc.
 Airport hotels
 cater to the passengers of airlines with delayed flights, or stop overs;
usually have coffee shops and a main dining area; located at the
precincts of the airport
 Camp
 located on trekking routes or camp sites
 Luxury or upscale
 usually cater to the rich and famous and have
luxury items and services at every corner; all-
suite hotels
 Full-service
 offer a wide range of services, facilities and
amenities
 Mid-price facilities
 between full-service and economy sectors
 Budget / economy
 also limited service; offer guest rooms only
 Chain operations
 Hotel groups following a certain standard of operation
 Referral Property
 Hotels which operate as an independent in association with a
certain chain
 Management assistance, etc.
 Company-owned Property
 Hotel owned and operated by a chain organization, but
allows the company developer to act as an independent
entrepreneur
 Management Contract
 Hotel operated by a consulting company that provides
operational and marketing expertise and a professional staff
 Brands / Branding
 Independent Property
 One that is not associated with any franchise
 Commercial Hotels
 Largest group that primarily caters to business
travellers
 Airport Hotels
 Usually located near or within airports or any major
travel center
 Typical target markets include:
 Business travelers
 Airline passengers
 Airline personnel
 Resorts
 Designed for relaxation and vacationing guests as
they target the leisure market
 Location may be on mountains, islands, or some
other exotic location away from crowded
residential areas
 Bed and Breakfast Hotels
 Converted houses or historical buildings that offer
rentable rooms to guests
 Number of rooms range from 20-30, offering limited
facilities, but good f & b services
 Suite Hotels
 Feature luxury rooms, as well as several amenities and
butler service
 Extended Stay Hotels
 Designed for travelers who intend to stay for more
than 5 days and require reduced hotel rates
 Convention Hotels
 Primarily cater to conventions and meetings of small
to large groups
 Casino Hotels
 Highlight gaming as one of its main entertainment
venues for guests
 Beach Resort
 Along the seashore
 Inland Resort
 Within the town proper or city
 Island Resort
 In a natural or man-made island within the internal
waters of the Philippine Archipelago
 Lakeside or Riverside Resort
 Along or near the bank of a lake or river
 Mountain Resort
 At or near a mountain or hill
 Theme Parks
Philippine Hotels & Resorts
Accreditation Standards
Rating
System
Hotel Rating System
 Philippine Hotel Classification

Philippine Categories
• Deluxe (5-star) • Standard (3 - star)
• First class (4-star) • Economy (2-star)

DOT categories of hotels

• Location • Recreational amenities
• Physical Structure • Entertainment
• Bedroom Facilities and • Engineering
Furnishings • Public areas
• Front office service • Overall service
Philippine Resort Classification

• Class AAA
• Class AA
• Class A
• Special Interest Resort
Resort Accreditation Standard
 According to rentable rooms offered
According to number of properties
owned
According to number of hotels
managed

Top Hotels in the World

Top Hotels
According to Total Number of Rentable Rooms

Rank/ Brand Name Rooms

1. Best Western 308, 636
2. Holiday Inn Hotels and Resorts 256, 699
3. Marioot Hotels and Resorts 188, 544
4. Hilton 176, 541
5. Holiday Inn Express 156, 531
6. Days Inn 1153, 333
7. Comfort Inn 149, 991
8. Hampton Inn 147,326
9. Sheraton 138, 878
10. Super 8 128, 587
Top Hotels
According to Number of Properties Owned

Rank/ Company Hotels

1. Hotel Group 6,544
2. Choice Hotels International 5,570
3. Best western International 4, 035
4. IHG 3, 949
5. Accor 3, 871
6. Hilton Hotels Corp. 3, 000
7. Mariott International 2, 999
8. Carlson Hotels Worldwide 969
9. Golden Tulip Hospitality Group 944
10. Starwoods Hotels and Resorts 897
Top Hotels
According to Number of Properties Owned

Rank/ Company Hotels

1. Mariott International 962
2. Extended Stay Hotels 686
3. IHG 539
4. Accor 535
5. Starwoods Hotels and Resorts 489
6. Tharaldson Lodging 372
7. Hilton Hotels Corp. 346
8.Interstate Hotels & Resorts 191
9. The Redizor Hotel Group 176
10. Hyatt Hotels and Resorts 172
Accredited Philippine Hotels
 De Luxe Hotels
1. Century Park Hotel 10. Mandarin Oriental
2. Crowne Plaza Galleria Manila
Manila 11. Pan Pacific Hotel
3. Diamond Hotel 12. Renaissance Makati
4. Dusit Hotel Nikko Hotel
5. EDSA Shangri-La Hotel 13. Sofitel Philippine Plaza
6. Holiday Inn Galeria Manila
Manila 14. The Bellevue Manila
7. Hotel Intercontinental 15. The Manila Hotel
Manila 16. Heritage Hotel Manila
8. Hyatt Hotel and Casino 17. The Peninsula Manila
9. Makati Shangri-La Hotel 18. Vivere Suites
 First Class Hotels
1. CSB International Conference Center
2. Discovery Suites
3. Great Eastern Hotel
4. Manila Pavilion Hotel
5. The Linden Suites Hotel
6. The Pearl Manila Hotel
7. The Richmonde Hotel
8. Traders Hotel Manila
 Standard Hotels
1. Aloha Hotel 17. New Hotel Miramar
2. Bayview Park Hotel 18. Orchid Garden Suites Manila
3. Best Western Hotel 19. Oxford Suites Manila
4. Camelot Hotel 20. Palm Plaza Hotel
5. CEO Suites 21. Paragon Tower Hotel
6. Cherry Blossom Hotel 22. Pearl Garden Hotel
7. City Garden Suites 23. Richville Hotel
8. City State Tower Hotel 24. Rothman Hotel
9. Garden Plaza Hotel 25. Royal Bellagio Hotel
10. Hotel Las Palmas 26. Taft Tower Hotel
11. Hotel Rembrandt 27. The Executive Plaza Hotel
12. Imperial Palace Suites 28. The Legend Villas
13. Kabayan Hotel 29. The Mabuhay Manor
14. Lotus Garden Hotel 30. Tiara Oriental Hotel
15. Networld Hotel 31. Tri-Place Hotel & Apartelle
16. New Horizon Hotel
 Economy Hotels
1. Corporate Inn Hotel
2. DG Grami Hotel
3. Jade Vine Executive Inn
4. Kabayan Hotel Cubao
5. Manila Airport Hotel 128
6. Park Hotel
7. Robelle Mansion
8. Rosas Garden Hotel
9. Shogun Hotel
10. Stone House Apartelle Hotel
11. Swagman Hotel
12. The Contemporary Hotel