PriceWaterhouseCoopers: www.pwcglobal.com

1
Lodging Research Websites

• PriceWaterhouseCoopers www.pwcglobal.com
• Country Sites Site Navigation Select From
  Industries Hospitality Leisure
• Smith Travel Research www.wwstar.com
• Hospitality Net www.hospitalitynet.org/index.html
  
• Hospitality Research Group www.pkfonline.com/hrgo
  nline/home.cfm
• Hotel Motel Management www.hotelmotel.com
• HVS International www.hvsinternational.com
• UNLV Hospitality Resource Webpage
  www.unlv.edu/Tourism/indres.html

2
Chapter 1The Lodging Industry
3
US Lodging Industry Stats

• 50,000 Properties with over 4.4 Million Rooms
• 113 Billion in Sales
• 1.8 Million People Employed
• Median wage is 8.62 per hour (US is 12.03)
• 73.5 Employees /100 Occupied Rooms

4
U.S. Lodging Forecasts

• Average Occupancy Rate (2003) 59.30
• Average Daily Rate (2003) 83.28
• Revenue per Available Room (2003) 49.39
• Year Occ. ADR RevPAR
• 2004 61.2 84.85 51.95
• 2005 61.7 87.40 53.96
• Source PricewaterhouseCoopers

5
Percent Change in ADR(1987 - 2004)
2004 Projected
6
U.S Hotel Industry Profits(Billions of Dollars)
2004 Projected
7
Lodging Economic Cycle
??
8
Profits Per-Available Room

• Year Profits
• 5,317 (Highest)
• 3,054
• 2004 3,494

Rooms make 80 profit FB outlets make 30 profit
9
Hotel Company Segments
10
Hotel Company Segments
11
Hotel Classifications
12
5 Star 5 Diamond Ratings
AAA Diamonds
Mobile Stars
Characteristics of ultimate luxury and
sophistication. First class accommodations.
Highly personalized service. Impeccable standard
of excellence.

• ? ? ? ? - Luxury
• ? ? ? - Upscale
• ? ? - Comprehensive
• ? - Modest
• ? - Basic

• ? ? ? ? - Deluxe
• ? ? ? ? - Superior
• ? ? ? - First Class
• ? ? - Moderate
• ? - Economy

Upscale in all aspects. Above average level of
service. Enhanced level of quality throughout. In
house dining available with many other services
Multifaceted and comprehensive. Usually
associated with business travelers. Upgraded
physical attributes, service, and comfort.
Aimed toward traveler looking for more than just
the basics. Usually small to medium sized hotel
chains. Limited food service.
Essential accommodations. Usually food within
walking distance. Appeal to budget minded
travelers while keeping in mind cleanliness
Sources American Automobile Association Mobil
Travel Guide
13
Average Daily Rate (2003)
14
Occupancy Percentage (2003)
15
U.S. Occupancy Rates(1928 2002)
1949 92.4
Long-term Average
1933 50.5
Source HMM Sept 1,2003
16
RevPAR (2003)
17
RevPAR Recovery
Increase from 2004 to 2005
Decrease from 2001 to 2003
18
ADR, RevPAR Occupancy Percentage (2000 2005)
Occ.
Change
64 63 62 61 60 59 58 57 56 55
Source PriceWaterhouseCoopers, Sept. 2003
19
Annual Hotel Sales Transactions(1990 2001)
20
Average Number of Rooms
21
Property Types
22
Largest Hotels in the World

• Hotel Rooms
• 1. MGM Grand (Las Vegas) 5,034
• 2. Ambassador City Jomtlen (Thailand)
  5,000
• 3. Luxor (Las Vegas) 4,476
• 4. Excalibur (Las Vegas)
  4,008
• 5. Circus Circus (Las Vegas)
  3,770
• 6. Mandalay Bay (Las Vegas)
  3,700
• 7. Flamingo Hilton (Las Vegas)
  3,642
• 8. Las Vegas Hilton (Las Vegas)
  3,174
• 9. Mirage (Las Vegas)
  3,049
• 10. Venetian (Las Vegas)
  3,036
• Las Vegas has 17 of the worlds 20 largest hotels
  (Opryland USA, Hilton Hawaiian Village)

23
Luxury Hotels

• Burj Al Arab Hotel
• http//www.jumeirahinternational.com
• The worlds tallest hotel (1,070 feet)
• The most luxurious hotel in the world
• 7 Stars 202 duplex suites

• Preferred Hotels
• http//www.preferredhotels.com/

24
Top 10 Hotel Companies

• Company Rooms Hotels
• (1) Utell
  762,000 4,411 (Membership
  Organization)
• (2) Cendant Corporation 528,437
  6,472 (Franchise)
• (3) Marriott Intl 471,275 2,589
  (Management, Franchise)
• (4) Choice Hotels Intl 383,592
  4,743 (Franchise)
• (5) Hilton Hotels 341,051 2,119
  (Ownership, Management, Franchise)
•  

25
Top 10 Hotel Companies

• Company Rooms Hotels
• (6) InterContinental Hotels 330,000
  3,300 (Ownership, Management, Franchise)
• (7) Best Western Intl 310,561 4,074
  (Membership Organization)
• (8) Starwood Hotels 228,215 745
  (Ownership, Management, Franchise)
• (9) VIP International 207,740
  1,598  (Consortium)
• (10) Carlson Hospitality 148,046 885
  (Ownership, Management, Franchise)

26
Hotel Companies Brands

• Cendant Brands
• Brand Properties
• Super 8 2,056
• Days Inn 1,939
• Ramada 974
• Travelodge 590
• Howard Johnson 509
• Knights Inn 224
• Villager 114
• Wingate Inn 114
• AmeriHost Inn 90
• Total 6,610

• InterContinental Brands
• Brand Properties
• Holiday Inn 1,544
• Holiday Inn Express 1,395
• Crowne Plaza 195
• InterContinental 133
• Staybridge Suites 52
• Total 3,319

27
Hotel Companies Brands

• Choice Hotels - Comfort Inn, Quality Inn, Econo
  Lodge, Flag, Comfort Suites, Sleep Inn, Clarion,
  Rodeway Inn, Mainstay Suites
• Marriott - Courtyard, Fairfield Inn, Marriott,
  Residence Inn, Renaissance, Ritz-Carlton
• Hilton - Hilton, Doubletree, Embassy Suites,
  Hampton Inn, Homewood Suites, Red Lion
• Carlson Regent, Radisson, Country Inn Suites,
  Park Inn, Park Plaza

28
Top 10 Hotel Brands

• Brand Rooms Hotels
• (1) Best Western Intl 313,683 4,122
• (2) Holiday Inn 288,417 1,538
• (3) Marriott Hotels 173,021 469
• (4) Days Inn 157,477 1,890
• (5) Comfort Inns Suites 146,741 1,979
•  

29
Top 10 Hotel Brands

• Brand Rooms Hotels
• (6) Sheraton Hotels 134,021 394
• (7) Super 8 Motels 127,027 2,092
• (8) Hampton Inns/Suites 124,133 1,228
• (9) Holiday Inn Express 118,286 1,439
•  
• (10) Ramada Inns 108,692 925

30
Hotel Company Segments
31
Customer Satisfaction Top Brands
32
Ownership Affiliation

• Independent Hotel
• Chain Hotels
• 1. Management Contracts
• Marriott
• 2. Franchise Holiday Inn
• hvs.hotelmotel.com/intro.asp
• 3. Referral Group - Best Western
• www.bestwestern.com

33
Tourism in the U.S.

• Travel spending averages
• 1.6 billion/day
• 67 million each hour
• 1.1 million per minute
• 18,500 per second!
• Second only to Health Services in employment
• 1 of every 14 Americans is employed in tourism

34
Most Visited
STATES Florida 6.1 Million California 5.9
Million NY 5.3 Million Hawaii 2.7
Million Nevada 1.9 Million 8. Texas 1.1
Million (By overseas travelers)

• COUNTRIES
• France 73 Million
• Spain 52 Million
• US 49 Million
• Italy 36 Million
• China 27 Million