LODGINGCategories and Types of Hotels

Classification of Lodging Properties

• Price

• Function

• Location

• Particular market segment

• Distinctiveness of style, offerings, or amenities

*It is important to remember that many types of hotels can fallinto more than one category

Types of Lodging PropertiesHotels Classified By Price

• Budget Hotels:– Room rates are the lowest for this type of lodging property. This

type of hotel typically offer guestrooms only. There is little or no public space, no meeting or function space, and very limited food and beverage facilities, if any.

• Midscale Hotels: – Room rates tend to be equal to or slightly above market area

average. These hotels offer a wider range of facilities and amenities. There will be limited public space and meeting/function space with at least one food and beverage facility.

AN AN HOTELBudget hotel

Bong SenMidscale Hotel

Types of Lodging Properties Hotels Classified By Price

• Luxury Hotels– At the top of the price category are luxury hotels– These properties offer a full array of services and

amenities, such as:• concierge service

• several food and beverage operations

• banquet facilities

• full room service

• recreational facilities

INTERCONTINENTALLuxury Hotel

Types of Lodging Properties Hotels Classified by Function

• Convention Hotels– Large hotels often with 500 or more guest rooms – They offer extensive meeting and function space– Food and beverage operations tend to be extensive:

several restaurants and lounges, banquet facilities, and room service

– Convention hotels are often in close proximity to convention centers and other convention hotels, providing facilities for citywide conventions and trade shows.

Types of Lodging Properties Hotels Classified by Function

• Commercial Hotels– These hotels cater to the business traveler– In comparison to convention hotels, there is

less public space and smaller meeting and function space, fewer food and beverage outlets, and limited recreational amenities.

– Many of these hotels tend to be located downtown or near airports to accommodate their target market segment

Types of Lodging Properties Hotels Classified by Location

• Location can also be used as a criteria for categorizing lodging properties

• Examples of hotels categorized as such include:– Downtown– Suburban– Highway/Interstate– Airport

Downtown Hotels

• Downtown (City Center)…– Public transportation available for business or

leisure– Range of accommodations and services– Typically have a signature restaurant

Suburban Highway Hotels and Motels

– Prominent in the 1950s

– Easy access to roadways

– Park outside the room entrance

– Example• Motel 6• http://www.motel6.com

Airport Hotels

– High occupancy due to location– Business, group, and leisure travelers– Full service – 200-600 rooms– Convenient location– Airport shuttle service– Economical pricing

Types of Lodging PropertiesHotels Classified by Market Segment

• Convention/Conference Centers• Resorts• Gaming/Casino Hotels • Health spa• Vacation ownership/Timeshare

Convention Hotels

– Meet the needs of large groups– 500 plus rooms– Larger public areas to accommodate greater

public demand– Banquet areas within and around the hotel– High percentage of double occupancy– Full Service oriented

Resort Hotels

• Resorts…– Originally began due to rail travel– “Captured Clientele”

– Food service is unique

– Diversified marketing mix• Children

• Groups

• Eco-tourism

Characteristics of Casinos

• Casinos…– Heavy growth segment– Low room rates– Subsidized food and beverage– Themes are popular– 500 plus guest rooms– Variety of food operations– Contains a gaming room

Major Trends in Casino Hotels

• Casino Trends…– Casino hotels are now marketing themselves as

business hotels• Amenities include business centers, travel bureaus,

and room service

– Move towards “family/friendly” hotels• This increases the average stay and money spent by

families

Time Sharing Hotels

• Time SharesA form of ownership or right to the use of a

property.

Multiple parties own rights to use the property and each is allotted a particular time (usually one or two weeks per year) to use the property.

Properties tend to be located in highly desirable resort areas with many amenities

Types of Lodging Properties Other Hotel Classifications

• All-Suite Hotels

• Bed-and-Breakfast Inns

• Boutique Hotels

• Hostels

All Suite Hotels

– Cater to guests for an extended period– Reduction in rate based on length of stay– More space than typical hotel – Examples

• Embassy Suites– http://www.embassy-suites.com

Bed and Breakfast Inns

– A home away from home– Accommodation with an owner who lives on

premises– Maintains a few rooms– Offers breakfast– Personable and quick service

Boutique Hotels

• Small hotels with a special charm

• Appeals to travelers who appreciate the unique

• Often provide special amenities to guests such as private tours or unusual decor

HOSTELSAppeal to young persons travelling on a budget. Rooms are usually shared or dormitory style. Very inexpensive.

Vertical Hotel Integration

• A trend in the hotel industry in which companies offer different levels of properties under the same development company.

• Lodging companies meeting the needs of several types of guests based on price, facilities, and amenities.

VI Hotel Companies

– Starwood Hotels– Marriott Hotels– Hilton Hotels– Choice hotels which has several chains that

meet its diverse clientele• Luxury - Clarion• Mid-scale - Quality Inn/Suites• Budget - Comfort Inn• Economy - Sleep Inn

– http://www.hotelchoice.com

Marketing Consortium

• Consortium…– Also called referral organizations– Numerous independent properties unite to

compete with the marketing power of chain operations

– Similar benefits as franchises at a lower cost– Provides incentives for clients

Hotel Room Classifications• Suite – multiple rooms (bedroom, dining,

living)

• Single – one bed sleeps one

• Double – one bed sleeps one or two

• Twin – two beds sleep two

• Triple – 2 to 3 beds sleep three

• Quad – 2 to 4 beds sleep four

What is in a name?

• Commonly used room descriptions:Standard

Superior

Deluxe

Suite

Corner Suite