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

2. Hotel Sizes Small 1 to 150 Medium 151 to 400 Large 401 to 1,500
Classification Number of Sleeping Rooms
Small 1 to 150
Medium to 400
Large to 1,500
Mega 1,501 and over
Why do management salaries increase as the number of guest rooms increase?
Figure 2-2

3. 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

4. (Downtown Location Type)
Compression of Demand
Suburban
Airport
Demand
Demand
Sold Out City Center
(Downtown Location Type)
Resort
Suburban
Figure 2-4

5. Product Types Service Level
Limited Service
Mid-Market
Full Service
What are some current market examples of each service level?
Figure 2-5

6. Economy Market Examples Budget Market Examples
Service Levels
Economy Budget Mid-Market Upscale
Luxury
Upscale Examples
* Omni
* Marriott
* Hilton
* Westin
* Hyatt
Luxury Examples
* Four Seasons
* Intercontinental
* Ritz Carlton
Full Service
Economy Market Examples
* Budgetel Inn
* Fairfield Inn
* Motel 6
* Red Roof Inn
Budget Market Examples
* Best Western
* Econolodge
* Knights Inn
* Super 8 Motels
Limited Service
Mid-Market Examples
* Courtyard
* Holiday Inn
* Howard Johnson
* Ramada Inn
Figure 2-6

7. Product Types Service Level Target Market Limited Service Mid-Market
Full Service
Target Market
Extended Stay
All Suite
What is a Hybrid Market?
Figure 2-7

8. Cost vs. Product
Figure 2-8

9. 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

10. 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

11. 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

12. 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 on-line.
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