Transcript Document 7546347

Summary Slide
Modern Hotel Innovators
Lodging Management Associations
Hotel Revenue Sources
Profit Margin–Room Cost
Profit Margin–Food Cost
Opportunity Cost
Captive Audience Quotient
Internet Exercises
Hotel Web Sites
Figure 1-1
Modern Hotel Innovators
Ellsworth Statler
Conrad Hilton
J. W. Marriott
Kemmons Wilson
Jay Pritzker
What three innovators emerged at about
the same time in history?
Figure 1-2
Lodging Management
Associations
Owner-operated
Owner-managed
Independent
Franchised
Management contract
What are the similarities and differences
between franchising and management contract?
Figure 1-3
Shared
Benefits
Brand Recognition
CRS
National Marketing Support
Standard Operating Procedures
Lodging
Management
Association
Differences
• Greater Quality Control
• Higher Fee to Owners
• Less Owner Control
• Higher Employee Standards
• Higher Performance Expectations
Management
Contracts
• Less Quality Control
• Lower Fee to Owners
• Greater Owner Control
• Varying Levels of Employee
Experience and Training
Franchising
Figure 1-4
Hotel Revenue Sources
Sleeping Rooms
Meeting/Function Space
Outlets/Ancillary
Why is this relationship so important?
Figure 1-5
#1
Selling as many sleeping
rooms as possible
Successful Hotel Equation
+
#2
Selling meeting/function space
to utilize it’s best potential
+
#3
Maximizing the capacity of the outlets
and ancillary profit centers through the
selling of #1 and #2
Figure 1-6
Profit Margin
Room Cost
Room Cost Components
H/L/P
Labor
Overhead
Heat
Housekeeping
Debt Service of Owners
Light
Engineering (internal
structure maintenance)
Marketing (local effort)
Power
Grounds Maintenance
(land surrounding building).
Management Costs
(including applicable
franchise or management
contract fees)
Taxes
Corporate Obligations
Room Rate - Room Cost = Profit Margin
Figure 1-7
Profit Margin
Food Cost
Item
Purchase Price
Steak
$5.95/ea.
Chicken
$3.95/ea.
Caesar Salad $1.99/ea.
Menu Price Food Cost
$22.00
27.0%
$17.95
22.0%
$ 9.95
20.0%
Food Cost = Purchase Price/Menu Price
Figure 1-8
Opportunity Cost
Each night, when a room goes unsold, the
hotel loses the opportunity to ever sell it
again. A hotel cannot regain that
opportunity.
The “Empty Room Theory” states that
once a room goes unoccupied, it is gone
forever.
Why does opportunity cost differ in
catering/outlet food and beverage sales?
Figure 1-9
Captive Audience Quotient
Applies to both outlet/ancillary sales and
catering sales.
A guest staying at a hotel is more likely,
for convenience and other reasons, to
choose at least once some outlet of the
hotel (if it offer such services).
Catering traffic at a hotel benefits by the
captive audience quotient, also called the
group catering contribution.
Figure 1-10
Chain Histories Internet
Exercise
In this chapter histories of Hilton, Marriott,
Holiday Inn, and Hyatt were briefly
discussed.
Using the Internet (sample URLs are
provided following the questions), choose a
different hotel chain and obtain any printed
materials you can about their beginnings
and history. Answer the following
questions:
Figure 1-11
Chain Histories Internet
Exercise
What is the name of the hotel chain you
selected?
When was the hotel chain established?
What was the name of the first hotel in
the chain?
Where was it located?
Who was the person or persons who
started the chain?
Figure 1-12
Chain Histories Internet
Exercise
How many hotels are now in this chain?
How long has this chain been in
operation?
What types of hotels does this chain
operate?
Where is the corporate office for this
chain located? Has it changed locations?
Has there been any mergers or
acquisitions within this chain?
Figure 1-13
Chain Histories Internet
Exercise
Does this chain have more than one
brand in its repertoire?
What unique thing did you learn about
this chain that you didn’t know before?
Why did you choose this chain?
Describe the hotel in this chain that you
would most like to visit.
Would you like to work for this hotel
chain? Why or why not?
Figure 1-14
Chain Histories Internet
Exercise
Is this chain publicly traded? If so, what
is the current stock price?
What is the stock price history during the
past 12 months?
What factors have been involved in any
fluctuations over the past three years?
What is the current focus of this chain?
What percentage of this chain’s properties
are corporately owned?
Figure 1-15
Hotel Web Site Home Pages
For this case study, try one of the following web sites:
Accor
Adam's Mark
http://www.accorhotel.com
http://www.adamsmark.com
http://www.sofitel.com
Amerisuites
http://www.novotel.com
http://www.amerisuites.com
ANA
http://www.mercure.com
http://www.ananet.or.jp/anahotels/e/
http://www.ibishotel.com
Aston
http://www.etaphotel.com
http://www.aston-hotels.com
http://www.hotelformule1.com
Best Western
http://www.motel6.com
http://www.bestwestern.com
http://www.redroof.com
http://www.coralia.com/coralia/gb/index.htm
Figure 1-16
Hotel Web Site Home Pages
Cendant
http://www.cendant.com
http://www.super8.com/ctg/cgi-bin/Super8#
http://www.knightsinn.com/ctg/cgi-bin/KnightsInn
http://www.hojo.com/ctg/cgi-bin/HowardJohnson
http://www.villager.com/ctg/cgi-bin/Villager
http://www.ramada.com/ctg/cgi-bin/Ramada
http://www.travelodge.com/ctg/cgi-bin/Travelodge
Choice
http://www.choicehotels.com
Dorint
http://www.dorinthotels.com
Drury
http://www.druryinn.com
Elegant Resorts
http://www.elegantresorts.com
Fairmont
http://www.fairmont.com
http://www.cphotels.com/cp.asp?loc=corp
Figure 1-17
Hotel Web Site Home Pages
Fiesta Americana
Hyatt
http://www.fiestaamericana.com
http://www.hyatt.com
Four Seasons
Jameson
http://www.fourseasons.com/index.html http://www.jamesoninns.com
Golden Tulip
http://www.signature-inns.com/index.htm
http://www.goldentulip.com
Loews
Harrah's
http://www.loewshotels.com
http://www.harrahs.com/home/home.html
Hilton
http://www.hilton.com
http://www.hilton.com/doubletree/index.html
http://www.hilton.com/conradinternational/index.html
http://www.embassy-suites.com
http://www.homewood-suites.com
http://www.hampton-inn.com
www.redlion.com
http://www.hilton.com/hiltongardeninn/index.html
Figure 1-18
Hotel Web Site Home Pages
Le Meridian
http://www.lemeridien-hotels.com
http://www.forte-hotels.com
http://www.heritage-hotels.com
http://www.posthouse-hotels.com
Mandarin Oriental
Metropolitan
http://www.mandarin-oriental.com/ http://www.methotels.com
Manhattan East Suite Hotels
Nikko
http://www.mesuite.com
http://www.nikkohotels.com
Marriott
Noble House
http://www.marriott.com
http://www.noblehousehotels.com
http://www.renaissancehotels.com
http://www.courtyard.com
http://www.residenceinn.com
http://www.fairfieldinn.com
http://www.towneplacesuites.com/js/Default.asp
http://www.springhillsuites.com/js/Default.asp
Figure 1-19
Hotel Web Site Home Pages
Omega
http://www.omegaresorts.com/omega_info/index.html
Omni
http://www.omnihotels.com
Outrigger
Rosewood
http://www.outrigger.com
http://www.rosewoodhotels.com
Park Place
Royal
http://www.parkplace.com
http://www.royalhotels.com
Radisson
http://www.radisson.com/RAD/RadissonHome/0,2509,,00.html
Red Carnation
Sierra Suites
http://www.redcarnationhotels.com
http://www.sierrasuites.com
Regal
Sholodge
http://www.regalhotel.com/main.html
http://www.shoneysinn.com
http://www.millennium-hotels.com
Ritz Carlton
http://www.ritzcarlton.com]
Figure 1-20
Hotel Web Site Home Pages
Sonesta
http://www.sonesta.com/sonesta/sonweb2.nsf
Station
http://www.stationcasinos.com/home/default.asp
Starwood
http://www.starwoodhotels.com/
SRS
http://www.srs-worldhotels.com
http://www.westin.com/main.taf
Summit
http://www.sheraton.com/main.taf
http://www.summithotels.com
http://www.fourpoints.com/main.taf
http://www.stregis.com/
http://www.luxurycollection.com/main.taf
http://www.whotels.com
Swissotel
http://www.swissotel.com/index.html
Figure 1-21
Hotel Web Site Home Pages
Super Clubs
http://www.superclubs.com
Thistle
http://www.thistlehotels.com
Trump
Wyndham
http://www.trump.com
http://www.wyndham.com/default.cfm
US Franchise Systems
http://www.summerfieldsuites.com
http://www.usfsi.com
http://www.microtelinn.com
http://www.hawthorn.com
http://www.bestinn.com
Walt Disney World Resorts
http://asp.disney.go.com/disneyworld/db/seetheworld/resorts/index.asp
Warwick
http://www.warwickhotels.com
Figure 1-22