Summary Slide

Hotel Sizes Hotel Classifications Diagram Compression Product Types Diagram Service Levels Product Types Diagram Cost vs. Product Internet Exercise
Figure 2-1

Hotel Sizes
Number of Sleeping Rooms

Small Medium Large Mega

1 to 150 151 to 400 401 to 1,500 1,501 and over

Why do management salaries increase as the number of guest rooms increase?
Figure 2-2

Hotel Classifications
Location types
Downtown Resort Airport Suburban

What is a special attraction? How does seasonality affect a hotel? How does compression of demand affect a hotel?
Figure 2-3

Compression of Demand



Sold Out City Center Demand Resort
(Downtown Location Type)

Figure 2-4

Product Types
Service Level
Limited Service Mid-Market Full Service

What are some current market examples of each service level?

Figure 2-5

Service Levels
Economy Budget Mid-Market Luxury Upscale Full Service
Upscale Examples * Omni * Marriott * Hilton * Westin * Hyatt Mid-Market Examples * Courtyard * Holiday Inn * Howard Johnson * Ramada Inn Luxury Examples * Four Seasons * Intercontinental * Ritz Carlton

Limited Service
Economy Market Examples * Budgetel Inn * Fairfield Inn * Motel 6 * Red Roof Inn Budget Market Examples * Best Western * Econolodge * Knights Inn * Super 8 Motels

Figure 2-6

Product Types
Service Level
Limited Service Mid-Market Full Service

Target Market
Extended Stay All Suite What is a Hybrid Market?
Figure 2-7

Cost vs. Product

Relative Cost Per Room



Product Type Service Classifiers
Figure 2-8




Hotel Types Internet Exercise
As was the case throughout history, establishing hotels as areas of rest in relation to journey segments and junction points is practiced today e.g., roadside motels along stretches of highway, bed & breakfast inns in areas of grand nature, and high rise hotels in city centers.
Figure 2-9

Hotel Types Internet Exercise
Researching the Internet, find examples of three or more property types. Ideally, these would be local hotels that you could visit. Use these URLs to get started: Use the web site of your local convention/visitor's bureau (ex:
Figure 2-10

Hotel Types Internet Exercise
List three external factors that would affect the success and profitability of these or other types:
Road Side Motel Bed & Breakfast Inn High Rise Hotel

Did you find any factors that applied to more than one type of property? Why or why not?
Figure 2-11

Hotel Types Internet Exercise
Use the Internet to answer as many of the following questions as you can. Call the properties directly for answers not available online.
What is the rack rate for a standard room? What is included in this rate? What amenities are offered at this property? Are rates different on the weekend? Higher or lower? What other hotels are in the area?

Compare and contrast the properties you selected.
Figure 2-12

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