Types of Lodging Facilities

Classification of hotel facilities is not based on rigid criteria. The definitions can change, depending on market forces, legal criteria, location, function, and, in some cases, personal preference, but the definitions that follow are generally accepted and are the ones intended for these classifications throughout this text.

Hotels

A hotel usually offers guests a full range of accommodations and services, which may include reservations, suites, public dining and banquet facilities, lounge and entertainment areas, room service, cable television, personal computers, meeting rooms, specialty shops, personal services valet, laundry, hair care, swimming pool and other recreational activities, gaming/casino operations, ground transportation to and from an airport, and concierge services. The size of the property can range from 20 to more than 2, 000 rooms.

Figure 1-2. Hotel industry overview.

I. Types of hotel properties

a. Hotels

b. Motels

c. All-suites

d. Limited-service hotels

e. Extended-stay hotels

II. Market orientation/location

a. Residential

i. Center-city

1. Hotels

2. All-suites

3. Limited-service

4. Extended-stay

ii. Suburban

1. All-suites

2. Limited-service

3. Extended-stay

b. Commercial

i. Center-city

1. Hotels

2. All-suites

3. Limited-service

4. Extended-stay

ii. Suburban

1. Hotels

2. Motels

3. All-suites

4. Limited-service

5. Extended-stay

iii. Airport

1. Hotels

2. Motels

3. All-suites

4. Limited-service

iv. Highway

1. Motels

2. All-suites

3. Limited-service

4. Extended-stay

III. Sales indicators

a. Occupancy

b. Average daily rate (ADR)

c. Yield percentage

d. Revenue per available room (RevPAR)

IV. Levels of service

a. Full-service

b. All-suites

c. Limited-service

d. Extended-stay

V. Affiliation

a. Chain

i. Franchise

ii. Company-owned

iii. Referral

iv. Management contract

b. Independent

Hotels are found in center-city, suburban, and airport locations. Guest stays can be overnight

or long-term, as much as several weeks in length. These properties sometimes specialize in catering to particular interests, such as conventions or gambling. Casino hotels usually take a secondary role to the casino operation, where the emphasis is on profitable gaming operations.

Motels

Motels offer guests a limited range of services, which may include reservations, vending machines, swimming pools, and cable television. The size of these properties averages from 10 to 50 units. Motels are usually in suburban highway and airport locations. Guests typically stay overnight or a few days. Motels may be located near a freestanding restaurant.

All-Suites

The all-suites concept, a new addition to the hotel industry, developed in the 1980s as a separate marketing concept, offers guests a wide range of services, which may include reservations, living room and separate bedroom, kitchenette, optional public dining room and room service, cable television, videocassette players and recorders, specialty shops, personal services valet and laundry, swimming pool, and ground transportation to and from an airport. The size of the operation can range from 50 to more than 100 units.

This type of property is usually found in center-city, suburban, and airport locations. The length of guest stay can be overnight, several days, or long-term. Although this type of hotel may seem new, many downtown, center-city hotels have offered this type of accommodation with in-room kitchenette and sitting rooms since the early 1900s. Now with mass marketing —advertising products and services through mass communications such as television, radio, and the Internet—this type of hotel is considered new.

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