Chapter 1 The Lodging Industry

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Chapter 1The Lodging Industry
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US Lodging Industry Stats

• 49,000 Properties
• 3.8 Million Rooms
• 85.6 Billion in Sales
• 1.16 Million Employed
• 73.5 Employees /100 Occupied Rooms

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Occupancy ADR

• Average Occupancy Rate (1999)
• 63.2
• Average Daily Rate (1999)
• 81.41
• Occ. ADR
• 2000 63.9 85.06
• 2001 63.6 88.55

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Hotel Occupancy Percentages (1990 - 2000)
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Percent Change in ADR(1987 - 2000)
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U.S Hotel Industry Profits(Billions of Dollars)
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Lodging Economic Cycle
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Tourism in the U.S. (1997)

• Travel spending averages
• 1.38 billion/day
• 57.4 million each hour
• 955,800 per minute
• 15,900 per second!
• Second only to Health Services in employment
• 1 of every 17 Americans is employed in tourism

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Travel Tourism Development Spending

• Hawaii 60 Million
• Illinois 55 Million
• Florida 54.3 Million
• Pennsylvania 34.4 Million
• Texas 30.9 Million
• New York 20.8 Million
• Virginia 19.2 Million
• Iowa 17.6 Million
• Louisiana 16.8 Million
• Wisconsin 15.5 Million
• 1999/2000

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Hotel Market Segments

• Luxury (Upper Upscale)
• Four Seasons, Ritz-Carlton
• First Class (Upscale)
• Hyatt, Hilton
• Mid-scale (Full-service)
• Best Western, Holiday Inn
• Mid-scale (Limited-service)
• Fairfield Inn, Hampton Inn
• Economy - Budget
• Days Inn, Motel 6

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Average Daily Rate (1999)
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Occupancy Percentage(1999)
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Top 10 Hotel Companies

• Company Rooms Hotels
• (1) Cendant Corporation 543,685 6,187
• (2) Bass Hotels Resorts 453,552 2,751
• (3) Choice Hotels Intl 402,500 5,000
• (4) Marriott Intl 339,200 1,764
• (5) Best Western Intl 306,517 3,885
•  

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Top 10 Hotel Companies

• Company Rooms Hotels
• (6) Hilton Hotels 300,435 1,747
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• (7) Accor Economy 292,379 3,314
• (8) Starwood Hotels 213,500 716
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• (9) Carlson Hospitality 131,469 583
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• (10) Wyndham Intl 74,020 317

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Hotel Companies Brands

• Cendant - Days Inn, Howard Johnson, HoJo Express,
  Ramada Inn, Ramada Limited, Knights Inn, Super 8,
  Travelodge, Villager Lodge, Wingate Inns
• Bass Hotels - Crowne Plaza, Forum, Holiday Inn,
  HI Express, HI Select, Inter-Continental
• Marriott - Courtyard, Fairfield Inn, Marriott,
  Residence Inn, Renaissance, Ritz-Carlton
• Hilton - Hilton, Doubletree, Embassy Suites,
  Hampton Inn, Homewood Suites, Red Lion
• 9 Companies Own 66 Different Brands

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Mergers Acquisitions

• Value Acquirer Acquired
• 1 billion Marriott Renaissance
• 1.1 billion Patriot American Wyndham
• 1.57 billion Starwood Westin
• 4.7 billion Doubletree Promus
• 11 billion HFS Inc. CUC Intl
• 1.1 billion Accor Red Roof
• 3.6 billion Hilton Promus

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Age of Hotel Properties
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3 Levels of Service

• 1. World Class Service
• 5 Diamond (AAA), 5 Star (Mobile)
• Fewer than 50 in the United States
• 2. Mid-Range Service
• Largest segment
• 3. Economy/Limited Service
• Fastest growing segment

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Hotel Classifications
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Property Types
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Ownership Affiliation

• Independent Hotel
• The Hotel Del Coronado
• Chain Hotels
• 1. Management Contracts
• Marriott
• 2. Franchise
• Holiday Inn
• 3. Referral Group
• Best Western

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Room Starts vs. Occupancy Rate