Structure

1
Lodging Industry
Structure
2
Tourist Home/Guest House

• Is privately owned property
• Rents out spare rooms
• Does not serve or provide meals
• Is considered to be the early stages of the Bed
  Breakfast
• Is slowly being replaced by Bed Breakfast
  establishments

3
Guest Ranch

• Emphasizes horseback riding
• Is a smaller property of usually 100 rooms or
  fewer
• Provides various amenities and activities
• Offers a very informal atmosphere

food and beverage services
housekeeping services
seasonal recreational activities
4
Levels of Service
Levels of Service
5
Partnership

• Is similar to independent ownership
• Splits costs among partnership
• if there are two partners, every thing
  is 50/50
• if there are four partners, each is responsible
  for 25 of the business

6
Franchise

• Syndicates
• group of investors
• investors may or may not have had a relationship
  to each other
• risks and rewards spread evenly to all members of
  the syndicate

7
Quiz

• What is the primary difference between full
  service and limited service?
• (T/F) A partnership is always split 50/50.
• What does REIT stand for? Name one reason
  investors enjoy REITs.