0. A Brief History of the Hotel Industry

1. Cyclical History of Early Hotel Industry
Roman Empire
(30 BC A.D)
Medieval
( )
Renaissance
( )
Dark Ages
( )

2. History of Early Hotel Industry
Sumerians (2500 BC) – “Houses of the go far people”
Code of Hammurabi ( BC)
Hotel in Olympus for visitors to games (4th century BC)
Caravanseri (Persia 200 BC)
Caravan “inn” or “Palace”
Fortified area that housed
animals, goods, and travelers
First true commercial “hotel”

3. History of Early Hotel Industry
Roman Empire (265 BC – 400 AD)
Religious & Military Travel
Market Segmentation: Mansio to Taberna
China (250 BC – 100 AD)
Post houses/hotels every 10 miles for nearly 300,000 miles
Monasteries (400 – 1300 AD)
Henry VIII Act of Supremacy (1534)
Abolished monasteries; Inn keeping flourishes

4. History of Early Hotel Industry
_______________ (1353)
Guild of 235 Inn keepers
Travelers met at city gate and escorted to appropriate inn
England
Ye Olde Fighting Cocks in St. Albans – Oldest Inn (800 AD)
London (1384) – Innkeepers were responsible for the behavior of their guests
Railway Hotels
Built at every major terminal during the 19th century

5. Cyclical History of Hotels in America
Golden Age (1920’s)
Motel Age (1950’s)
Growth (1960 & 70)
Recovery (1990’s)
WW I (1910’s)
WW II
(1940’s)
Recession
(1980’s)
9-11
Early America ( )
Depression (1930’s)

6. Firsts in America First Inn (1634) - “Coles Ordinary” - Boston, MA
First Hotel (1794) - “City Hotel” - New York City
The Tremont House (1829) – First luxury class hotel
Private rooms with locks on the door
___________________ (1908) – First modern hotel
Slogan: “A room and a bath for a dollar and a half”
Early taverns were unofficial City Halls
The Queens Head – Plotted the Boston Tea Party

7. Innovators & Leaders Fred Harvey (1876) Harvey House Hotels
Ellsworth M. Statler (1908) – Buffalo Statler Hotel
Father of American Hotel Industry
Conrad Hilton (1919)
Banker’s Mentality
Kemmons Wilson (1952)
Holiday Inns

8. History of American Hotels
1920’s - Golden Age of Hotels
Unprecedented Building and Occupancy
1930’s - Great Depression
85% of hotels in receivership or liquidation
1940’s - World War II
No materials for expansion; 93% occupancy

9. History of American Hotels
1950’s - Growth of Motel Chains
Reasons for increased travel after WW II:
1. Pent-up Demand
2. Transportation Improvements
Interstate Highway Act of 1956
3. Desire to Travel
4. _______________
1960’s - Growth of Hotel Chains
Hyatt, Howard Johnsons, Marriott

10. History of American Hotels
1970’s - Growth of Franchising
Market Segmentation
1980’s - Prosperity & Recession
Product Segmentation & Over Expansion
1990’s - Recovery
Expanding Markets & Mergers
Sept. 11, Major Decrease
Recovery began in 2004

11. Growth of hotel industry
Leisure and pleasure concept
Discretionary income
Family size/household size
Business travel

12. Classification of hotels
On the basis of standards:
One star: a low budget hotel with limited facilities, offering accommodation and food and characterized by informal standards of service
Two stars: an economy market hotel offering moderate services along with accommodation and food
Three stars: