I.

Theoretical questions
1. How do residential and commercial properties differ?
- Residential properties
+ Residential properties including hotels, all-suites, limited-service, and extended-
stays, offer services such as public dining, recreational facilities, social activities, and
personal services.
+ These properties are typically located in center-city and suburban areas, with
additional activities like shopping, arts, entertainment, business services, and public
transportation.
- Commerical properties
+ Commerical properties offer short-term transient guest services such as
computerized reservation systems, public dining, banquet service, lounge and
entertainment areas, personal services, and shuttle transportation to airports.
+ These hotels may be located almost anywhere.
 The gray areas between commercial lodging and residential hotels require flexibility
for owners and managers to meet market needs effectively.
2. What are the four most common locations for hotel properties? What determines
the end destination of the guest?
- The four most common locations for hotel properties:
+ City Centers
+ Resort Areas
+ Airport Hotels
+ Highway and Suburban Hotels
- Factors determining the guest’s end destination:
+ Purpose of Travel
+ Attractions and Activities
+ Budget and Preferences
3. Define sales indicators. Give working examples.
- Occupancy percentages measure marketing effectiveness, sales, and potential gross
income for hotels.
Formula:
Number of Rooms Sold x 100 / Number of Rooms Available = Single Occupancy %
- Average daily rate (ADR) impacts hotel revenues and guest expectations, with higher
rates indicating superior service.
Formula:
ADR = Total Room Sales / Number of Rooms Sold
- Yield percentage is a new concept in the hotel industry
Formula:
Yield = Revenue Realized (number of rooms sold x number actual rate) / Revenue
Potential (number of rooms available for sale x rack rate)
- RevPAR (revenue per Available Room)
Formula:
Room Revenue / Number of Available Rooms
Or
Hotel Occupancy x Average Daily Rate
4. Define four levels of service. Relate them to room rates and guest expectations.
- Full service: Offer a variety of guest conveniences, including reservations, on-premise
dining, banquet and meeting facilities, and recreational facilities.
- All suites: Offer a comfortable, mid-priced atmosphere with separate sleeping and
living areas, kitchenette, wet bars, and other amenities, appealing to business travelers
and families.
- Select service: Offers basic room accommodation with minimal public areas, free in-
room movies and local phone calls, continental breakfast, or evening cocktails.
- Extended stay: Offers a “home away from home” experience for business executives,
visitors, and families, featuring fully equipped kitchenettes, spacious bedrooms, and
living areas for work and recreation.
5. Name some of the types of properties developed by major chains to meet
demands by market segments.
- Hotels:
+ Market Segment: guest stay overnight or long-term; sometimes specializing in
catering to particular markets, such as conventions or gambling
+ Features: banquet facilities, entertainment area, swimming pool, specialty shop,
casino operations.
+ Example: Marriott’s hotels operated as Marriott Hotel & Resort
- Select-service Hotels:
+ Market Segment: business travelers and cost-conscious travelers; sometimes offer
special business technology center.
+ Features: reservation, meeting facilities, personal services, ground transportation to
and from airport.
+ Example: Holiday Inn Express operated by InterContinental Hotels
- Extended-stay Hotels:
+ Market Segment: guests needing accommodations for long stays and offer guests a
home-away-from-home atmosphere over long stays precipitated by business, leisure,
or personal necessity.
+ Features: Rooms with king-size beds, fully equipped kitchens, laundry facilities, and
spacious living areas
+ Example: Homewood Suites by Hilton cater to this segment.
6. Differentiate between franchises and company-owned properties in a chain. What
is the difference between franchises and referral groups?
- Franchise:
+ Support to the franchises
+ Owner of the land and building
+ The franchises pays fees for items such as initial startup, rental of signs and other
equipment, use of the corporation’s reservation referral system, and national
advertising.
- Company-owned Property
+ A hotel that is owned and operated by a chain organization, allows the hotel
company developer to act as an independent entrepreneur
+ The hotel company developer may set a limit on the number of franchises so a
majority of the properties remain company-owned.
- Referral Group:
+ Property is already physically developed
+ The entrepreneur may want assistance only with management, marketing and
advertising, or reservation referral
+ The fees are based on services required
7. What are the major differences between chain and independent properties?
- Independent properties:
+ An independent hotel is one not associated with a franchise. It provides a greater
sense of warmth and individuality than does a property associated with a chain.
+ Independent hotel characteristics include an owner who functions as a manager, and
rooms decorated in different styles.
+ Entrepreneur operates his or her business without the advantages of consultations
and assistance.
- Chain properties
+ Chain properties that are owned and operated by a chain organization
+ Refer to hotels that follow standard operating procedures such as marketing,
reservations, quality of service, food and beverage, housekeeping and accounting.
+ Chain properties aim to provide a consistent guest experience across all their
locations.
+ Franchisees can get support to operate and develop hotels from a corporation.
II. CHAPTER 1: INTRODUCTION TO HOTEL MANAGEMENT
1. Overview of the hospitality industry: Its significance and role
- The hospitality industry is a vital part of the global economy, providing
accommodations, services, and memorable experiences to travelers for business and
leisure. The industry encompasses a wide range of establishments, including hotels,
resorts, motels, and other forms of lodging, as well as related services such as food
and beverage operations, event planning, and entertainment.
- Significance of the hospitality industry:
+ Provides employment to millions of people worldwide.
+ Play a crucial role in tourism, contributing significantly to GDP.
+ Supports economic development by attracting both domestic and international
travelers.
+ Enhances the global exchange of culture and fosters connectivity between regions.
- Role of the hospitality industry:
+ Focuses on guest satification and comfort.
+ Helps in creating positive travel experiences that encourage repeat visits and
customer loyalty.
+ Provides opportunities for career growth in various fields such as hotel management,
tourism, event planning, and culinary arts.
2. Key functions of a hotel
2.1. Accommodations:
- Hotels offer a range of accommodations, from luxury suites to budget-friendly rooms.
The goal is to provide guest with a comfortable and secure place to stay during their
travels.
- Accommodations include a variety of services such as room cleaning, laundry, and
concierge services, all aimed at enhancing the guest’s experience.
2.2. Guest Services:
- Guest services are the hallmark of the hospitality industry, ensuring that all aspects of
a guest’s stay are handled efficiently and professionally.
- This includes check-in and check-out processes, room service, special requests (e.g.,
wake-up calls, extra amenities), and dealing with guest inquiries and complaints.
- Premium guest services include valet, spa treatments, business centers, and recreation
facilities.
2.3. Communication:
- Communication is vital for hotel operations to run smoothly. This includes
communication between the front desk, housekeeping, food services, maintenance,
and other departments.
- Communication with guest is crucial, ensuring that their needs are understood and met
promptly. Providing clear and courteous responses to inquires enhances guest
satisfaction.
- Hotels also facilitate extrernal communications for guest, such as handing
reservations, wake-up calls, and transmitting messages.
2.4. Management:
- Hotel management involves overseeing the day-to-day operations of the hotel to
ensure smooth functioning and a seamless guest experience.
- This includes staff management, financial control, ensuring compliance with safety
and health regulations, inventory management, and strategic planning for growth and
development.
- Effective management ensures that guest receive high-quality service, and that the
hotel runs efficiently and profitably.
3. The importance of the front office as the “nerve center” of hotel operations:
- The front office is often referred to as the “nerve center” of a hotel because it is the
main point of contact between the hotel and its guests.
- Functions of the Front Office:
+ Guest interaction: the front office staff handles guest check-ins, check-outs, and
reservations, and provides information regarding the hotel and its surrounding.
+ Record keeping: The front office manages guest records, billing, and reservations,
ensuring that financial transactions are accurate and up-to-date.
+ Coordination with other departments: The front office communicates guest requests
and preferences to housekeeping, maintenance, and food and beverage services,
ensuring seamless delivery of services.
- Importance:
+ The front office sets the tone for the guest’s overall experience. A well-managed
front office can significantly enhance guest satisfaction, while an inefficient one can
lead to complaints and dissatisfaction.
+ It is responsible for managing reservations, coordinating guest services, maintaining
communication with other hotel departments, and solving issues that arise during the
guest’s stay.
+ The front office also plays a key role in security, ensuring guest privacy, verifying
identities, and handing emergencies effectively.
4. History of the founders of the hotel industry
4.1. Early 1900s: Emergence of the Modern Hotel Industry: Ellsworth M.
Statler (1863-1928)
- 1901: Opened his first major hotel for the Pan-American Exposition in Buffalo, New
York.
- Notable Contribution: Statler pioneered the concept of standardized service and
created one of the first major hotel chains in the U.S., including hotels in cities like
Boston, Cleveland, and New York City.
- Legacy: Statler Hotels became known for their operational efficiency and set the
standard for future hotel chains. In 1954, Statler’s chain was sold to Hilton.
4.2. Post-World War I: Expansion of Chain Hotels: Conrad Hilton (1887-
1979)
- 1919: Purchased his first hotel, the Mobley Hotel in Cisco, Texas, during the Texas oil
boom.
- 1925: Built the first Hilton Hotel in Dallas, Texas.
- 1946: Established Hilton Hotels Corporation, and by 1948, he expanded
internationally by forming Hilton International.
- 1954: Acquired the Statler chain, making Hilton Hotels the first major modern
American hotel chain.
- Legacy: Hilton Hotels grew into a global brand, known for consistency in service and
luxury accommodations across the world.
4.3. Late 1800s – Early 1900s: Luxury Hotels and Innovation: Cesar Ritz
(1850-1918)
- Management of Grand National Hotel: Managed the Grand National Hotel in Lucerne,
Switzerland.
- Late 1800s: Managed luxury hotels across Europe, including the Savoy Hotel in
London.
- Legacy: Founded the Ritz-Carlton brand, synonymous with luxury and world-class
service. His management style earned him the title “King of hoteliers and hotelier to
kings”.
4.4. Late 19th Century: The Birth of Landmark Hotels: William Waldorf Astor
(1848-1919) and John Jacob Astor IV (1864-1912)
- 1893: William Waldorf Astor opened the Waldorf Hotel in New York City.
- 1897: John Jacob Astor IV opened the adjacent Astoria Hotel, connected to the
Waldorf, forming the Waldorf = Astoria.
- Legacy: The Waldorf = Astoria became a symbol of luxury and sophistication, hosting
celebrities, dignitaries, and world leaders. It set a precedent for combining opulence
with large-scale event hosting in hotels.
4.5. 1950s: Family-Focused and Business Travel Innovations: Kemmons
Wilson (1913-2003)
- 1952: Founded the first Holiday Inn in Memphis, Tennessee.
- Innovation: Wilson aimed to provide affordable, comfortable accommodations for
families and business travelers, emphasizing consistency across locations.
- Legacy: Holiday Inn became one of the largest hotel chains in the world, pioneering
the concept of family-oriented, highway-based hotels that catered to middle-class
travelers.
4.6. 1950s-1980s: Expansion into Modern Hotel Chains: J. Willard Marriott
(1900-1985)
- 1957: Opened the first Marriott Hotel, the Twin Bridges Marriott Motor Hotel, in
Virginia.
- 1980s: Under the leadership of J.W. Marriott Jr., the company expanded into luxury
and extended-stay markets with brands like Courtyard by Marriott and Residence Inn.
- Legacy: Marriott Hotels became one of the most successful and recognized hotel
brands globally, offering a wide variety of accommodations from economy to luxury.
4.7. 1930s-1960s: Growth of Global Hotel Chains: Ernest Henderson and
Robert Moore (Sheraton Hotels)
- 1937: Founded the Sheraton Hotel chain with their first acquisition in Massachusetts.
- 1968: Sheraton was acquired by ITT Corporation, expanding into a global network.
- Legacy: Sheraton was the first hotel chain to be listed on the New York Stock
Exchange and became a leader in modermizing hotel services across the globe.
4.8. 1980s: Targeting Business Travelers and the Mid-Price Market: Ray
Schultz (Hampton Inn)
- 1984: Founded the Hampton Inn hotel chain, aimed at offering affordable, limited-
service hotels for business and leisure travelers.
- Innovation: Schultz focused on providing value-added services like free breakfast and
local calls, which became standards in the mid-priced hotel market.
- Legacy: Hampton Inn became the gold standard for limited-service hotels, catering to
cost-conscious travelers without sacrificing quality.
 These hotel industry pioneers laid the foundation for what is now a global
network of hotel brands that cater to every segment of the travel market, from
luxury accommodations to budget-friendly options. Their innovations in service,
management, and marketing have shaped the modern hospitality industry,
creating a lasting legacy that continutes to influence hotel operations worldwide.