CHAPTER 2

SEGMENT OF LODGING
INDUSTRY
Learning Objectives

Define Identify services

accommodation offered in
/ lodging accommodation

Malaysian Describe hotel

Association of ownership
Hotels (MAH)
Accommodation / Lodging
 For people who travel and stay away from
home for more than a day for sleep, rest,
safety, shelter, luggage storage and access
to common household functions.
Hotel Proprietors Ordinance (Ch.158)

Hotel
An establishment held out by the proprietor
as offering accommodation to any person
presenting himself who appears able and
willing to pay a reasonable sum for the
services and facilities provided and who is in
fit state to be received.
Malaysian Association of Hotels
 Official website: https://www.hotels.org.my/
 Mission: As the official national network for
the hotel industry of Malaysia, MAH will act
as the voice of the industry, working as one
body to promote, protect, represent and
advance the interests of its members.
HOTEL OWNERSHIP
 Private: Independently owned
Private: Independently owned

 The owner might consist of individuals or company.

 The advantage to an independent hotel is having
autonomy in management decisions. The day-by-
day operations are up to the owner.
 The disadvantage to this setup is that the owner will
have to pay for all advertising and there is no central
purchaser of things like linens and other supplies so
they won’t have a volume discount.
Chain/ Group Hotel
 Hotel that is part of a series or of a group of
hotels operated by the same company or
owner.
 Hotel chain manages a number of hotels
having the same name but being located in
different areas.
 They can be total or partial owners of the
hotel and they manage their administration,
marketing and promotion.
 Local Group Hotel
 FRANCHISE HOTEL
 A Franchise is the right to use the brand and
the business model of a specific parent
company for a prescribed period of time.
 It is a method for expanding a business and
distributing products and services through a
licensing relationship.
 FRANCHISE HOTEL
 The parent Hotel Franchise Company
provides permission for the local owner to use
the parent company’s name (brand) and
products.
 The Franchisees can brand their hotel with a
well-known and popular brand, while the
franchise contract provides them with a
powerful set of tools as assistance for the new
business.
FRANCHISE HOTEL
Management Contract
 A management enterprise which operate
properties owned by other company.
 In some cases, the hotel owners may
arrange to run their properties through a
management contract with an enterprise that
specializes in managing hotels.
 The reason for this is that the owner may
not:
 1. Have the necessary expertise;
 2. Desire to become involved in the operation

of the hotel.