1. Hotel Management Lecture Notes Joana Mills Quarshie M
Hotel Management Lecture Notes Joana Mills Quarshie M.Phil (Tourism Management)
24th Oct, 2017

2. Introduction

3. Introduction cont’d
Introduction of Topic – Brief History of Accommodation Services
Definition of terms:
Hotel management - refers to the professional management techniques used in the hospitality sector. This may include hotel administration (front office), accounts, sales & marketing, housekeeping, food & beverage, human resource, security and maintenance.

4. Introduction cont’d Definition of terms:
Hotel - a hotel is defined as an operation which provides accommodation and additional services to people away from home. Thus, hotels today are in the business of providing space to customers in which they can eat, drink, sleep, wash, play, relax and have business meetings (Mensah, 2009; Jones & Lockwood, 2004).

5. Introduction cont’d Order of Presentation
Brief history of accommodation services in Ghana
Characteristics of hotel services / Importance of hotels
Activities of the hotel industry
The accommodation structure
Classification of hotels
Types of hotels
Hotel Management
Key Executives in the hotel
Review / Conclusion

6. Brief History of Accommodation Services
Some of the earliest known hotels were referred to as inns, where travellers rested and slept.
During the middle ages, the churches across the world established guest offices for pilgrims and travellers.
The merchant class hotels began to emerge in the 15th century due to increase in trade.
The inns of the 16th century provided private rooms to visitors. The present day hotels started emerging from the late 18th century.

7. History of Accommodation Services in Ghana
The earliest forms of tourist accommodation in Ghana were chalets (a holiday home) owned by colonial merchants which were located along the beaches (Mensah, 2009).
Sea View Hotel was the first hotel to be established in the then Gold Coast. It was located in Accra on the High Street.
At the time of independence in 1957, six hotels had already been licensed namely:
Aams hotel – Accra Nsawam Road
Ambassador hotel – Independence Avenue, Accra
Avenida hotel – Boundary Road, Accra
Lisbon hotel – Airport, Accra
Ringway hotel – Osu
Seaview hotel – High Street, Accra

8. History of Accommodation Services in Ghana cont’d
The Ambassador Hotel was the only government owned hotel and was established in 1956, to accommodate guests who were to attend Ghana’s independence celebration in 1957 (Mensah, 2009).
The immediate post-independence era (1957 – 1976) saw a substantial increase in the number of both state – owned and private owned hotels in Ghana.

9. History of Accommodation Services in Ghana cont’d
Hotels and catering rest houses were provided in all the regional capitals. This include:
Ambassador, Continental and Star hotels in Accra
Meridian hotel in Tema,
Eridec hotel in Koforidua,
Atlantic hotel in Takoradi and
City hotel and Catering Rest House in Kumasi.

10. Characteristics of Hotel Services
Perishable: Services cannot be stored. Vacant rooms are perishable. The unsold room tonight can never be sold again.
Intangible: The hotel products cannot be seen, tasted, felt, heard or smelled before they are purchased.
Heterogeneous: The service given to one customer may differ from the service given to another customer.
Inseparable: In the hotel industry, both the service provider and the customer must be present for the transaction to occur.
Seasonal: Seasonality in hotels involves fluctuations in number of guests, occupancy rates and bed nights.

11. Importance of Hotels
Hotels play important role in most countries by providing facilities for the transaction of business, for meetings and conferences, for recreation and entertainment.
In many countries hotels are important attractions for visitors who tend to spend at a higher rate than they do when they are at home.
Hotels are important source of foreign exchange earning and also help in providing employment for the community.

12. Activities of the Hotel Industry
The main business sectors in the hotel industry are:
Accommodation – to provide accommodation (usually food and drink to people who are away from home.
Food & Beverage – to provide food and beverage to customers and tourists who visit the hotel premises.

13. Accommodation Structure

14. Classification of Hotels
Location – e.g. city centre hotels, suburban hotels, airport hotels and highway motels/hotels
Function – e.g. commercial hotels and conventional hotels
Market Segmentation – e.g. resorts, health spa and casinos rooms, more than 600 rooms
Rating (grading) – e.g. one star – five star

15. Classification of Hotels cont’d
Classification according to Star Rating indicated by (Powers & Barrows, 2002) :
5 & 4 – Star hotels – all rooms must be fully air conditioned with superior quality carpets, curtains, furniture, etc. All should be in good taste.
3 – Star hotels - at least 50% of the rooms must be air conditioned. The furniture and furnishings such as carpets, curtains, etc., should be of a very good standard and design.
2 – Star hotels – a minimum of 25% of rooms should be air-conditioned. All rooms must be properly ventilated, clean, and comfortable with all the necessary items of furniture.
1 – Star hotels - all rooms must be properly ventilated and should have clean and comfortable bed and furniture.

16. Classification of Hotels cont’d
Distinctiveness of property – e.g. all suite hotels, boutique hotels, extended stay hotels, bed and breakfast inns
Price and Staff Ratio
Size – e.g under 150 rooms, 151 – 300 rooms, 301 – 600

17. Classification of Hotels cont’d
Another classification of hotels is by their ownership, which can be:
Private – an independent hotel owned by a person, partnership or private company
Local group – hotels owned by a local company
International group – a hotel which is part of an international chain of hotels

18. Activity One
Give examples of the following with reference to hotels in Ghana:
Private Ownership
Local Group Ownership
International Group Ownership

19. Activity One cont’d
Give examples of the following with reference to hotels in Ghana:
Private Ownership – (Cape Coast Hotel, Hans Cottage)
Local Group Ownership – (Coconut Grove, Sanaa Lodge)
International Group Ownership – (Labadi Beach, Golden Tulip, Holiday Inn)

20. Classification of Hotels cont’d
In Ghana the classification of accommodation establishments are in three main categories (Mensah, 2009).
Category A - Hotels, Inns and Motels
Category B - Catering houses, lodgings or their boarding and rooming facilities
Category C – Rest houses
Hotels in Ghana are further categorized into seven groups according to Ghana Tourism Authority (GTA), namely: budget, guest house, 1star (4th class), 2star (3rd class), 3star (2nd class), 4star (1st class) and 5star (luxury).

21. Classification of Hotels cont’d
Fig (1): Movenpick Ambassador Hotel

22. Types of Hotels
City centre hotels – these hotels are located within the heart of the city. The type may vary greatly from business, residential, economy, luxury etc.
Suburban hotels – hotels located in the suburbs. They tend to have smaller properties which usually provide full service.
Airport hotels – hotels located close to the airport
Timeshares – also known as vacation or holiday ownership, where one becomes an owner of a facility only for a limited period in the year

23. Types of Hotels cont’d
Highway hotels/ motels - hotels located along major highways who target motorists
Convention hotels – are large hotels which mainly target meetings and conferences
Commercial hotels – are smaller than convention hotels. They provide short term stay to travelling guests and have less public space for meetings and functions
Resort hotels – a lodging establishment which provides facilities for healthy or recreational activities of its guests

24. Types of Hotels cont’d
Casino hotels – provides accommodation in a hotel facility with casino on the premises
All-Suite hotels – a hotel unit which separates the living room from the sleeping area
Boutique / Design hotels – provide luxurious services to guests
Extended stay hotels / Serviced apartment – provides rooms with fully equipped kitchens , entertainment etc

25. Fig (2): Boutique Hotel Room
Types of Hotels cont’d
Fig (2): Boutique Hotel Room

26. Types of Hotels Cont’d
Spa hotel – it refers to a resort or an area centred on mineral springs believed to have healing powers.
Bed and Breakfast inns (B&Bs) – a type of accommodation that usually operates out of a private residence
Guesthouses – a private home in which the owner rents spare bed rooms to transient guests
Hostels - an inexpensive lodging establishment that usually caters for students
(Mensah, 2009 ; Barrows & Powers, 2009)

27. Activity (2)
Name some of the hotels you have visited. What were some of the exciting things you noticed while you were a guest at the hotel.

28. Hotel Management
Hotels can be operated in one of the following ways according to (Akyeampong, 2007; Bardi, 2003):
Independently owned and operated – These can be independent hotels, with no affiliation, that are being managed by the owners of the property.
Management contract - refers to hotel management companies which operate properties owned by other entities. In some instances, hotel owners may arrange to run their properties through management contract with a company which specialises in managing hotels.

29. Hotel Management cont’d
The reasons for this is that the owner may not have:
The necessary expertise;
The desire to become involved in the operation of the hotel.
Benefits for the management company:
Little or no up-front financing or equity involved
Manage the property for the contract period, such as five, ten or twenty years
Receive a management fee during the contract period

30. Hotel Management cont’d
Franchising - is an operation which involves a financial and business arrangement between two parties (franchisor and franchisee). Some investors prefer to use the franchising concept to run their hotel.
The franchisor - is the central part of the organisation. He develops a product, find retail sites for that product, manufacture and distribute the product, and advertise it on a large scale.
He will then find people who are willing to put some capital into the organisation and run the outlets on strictly standardised basis.
These people are known as the franchisees and they will run a relatively small organisation, building up close contacts with their customers while giving a personal service.

31. Hotel Management cont’d
Franchising in the hospitality industry is a concept that:
Allows interested investors to use a company name and business format e.g. Holiday Inn, Best Western etc.
Is made up of properties where the franchisees agree to run the hotel in accordance with the strict guidelines set by the franchisor
Allows a company to expand more rapidly by using another company’s capital

32. Hotel Management cont’d
Benefits of a franchisee:
Obtain from the franchisor the expertise in doing business such as site selection, planning, pre-opening training, operations manuals, information management,central reservation system, field support, quality control, purchasing, advertising, marketing new products and concepts
The franchisee has complete control and responsibility over the daily operation of the property. In return, the franchisor receives a joining fee and an ongoing fee from the franchisee.

33. Key Executives of a Hotel
The key executives in the hotel are:
The General Manager (GM) -Providing leadership to the management team.
Resident Manager - Holding a major responsibility in developing and executing plans developed by the owner(s), the general manager and other members of the management team

34. Review Brief history of accommodation services in Ghana
Characteristics of hotel services
Activities of the hotel industry
The accommodation structure
Classification of hotels
Types of hotels
Hotel Management
Key Executives in the hotel

35. Conclusion
The earliest forms of tourist accommodation in Ghana were chalets owned by colonial merchants which were located along the beaches
Characteristics of hotel services – perishable, intangible, heterogeneous, inseparable and seasonal
Hotels are classified according to location, function, market segmentation, grading, size etc,
Hotels can be operated independently or through management contract

36. Suggested Reading
Jones, P., & Lockwood, A. (2004). The Management of Hotel Operations. United Kingdom: Tj International Press.
Akyeampong, O.A. (2007) Tourism in Ghana: The Accommodation Sub-Sector. Accra, Ghana: Janel Publications LTD.
Rutherford, D. G. & O’fallion, M. J. (2007). Hotel Management and Operations, John Wiley and Sons Inc., Hoboken, New Jersey, USA.
Barrows, C. W., & Powers, T. (2009). Introduction to Hospitality Management, John Wiley and Sons Inc., Hoboken, New Jersey, USA.
Mensah, I. (2009). Management of Tourism and Hospitality Services, Accra, Ghana: Woeli Publishing Services.

37. THANK YOU