9 Questions
A hotel lease is normally signed for a minimum period of ____ years.
20
Which of the following are methods of calculating the amount of profit to be paid as rent in a profit-sharing lease?
Combination of fixed percentage of total revenue and fixed percentage of gross operating profits
What is a franchise agreement?
An agreement between a hotel company and an independent hotel owner allowing the owner to use the company's name and services for a fee.
Referral organizations are agreements where the independent owner must strictly adhere to the chain's policies and procedures.
False
Hotels can be classified into different types based on which of the following criteria?
All of the above
______ hotels are located in the hills or at beaches and cater to vacationers and pleasure travelers.
Resort
Inn hotels are typically large in size with extravagant amenities.
False
What is the primary feature of All-Suite hotels?
Separate bedroom and living room or parlor areas
Match the following hotel types with their descriptions:
Heritage hotels = Hotels in palaces, castles, forts, etc., preserving traditional architecture Chain hotels = Properties owned and operated by a multiple unit company Motel = Located primarily on highways and provide modest lodging facilities Casino hotels = Hotels with gambling facilities and luxury services
Study Notes
Classification of Hotels
- Hotels can be classified into different types based on:
- Location (e.g. downtown, suburban, resort, airport, motel)
- Size (e.g. small, medium, large, very large)
- Clientele (e.g. business travelers, vacationers, pleasure travelers)
- Length of stay (e.g. transient, residential, semi-residential)
- Other criteria (e.g. heritage, all-suite, time share, condominium, casino, conference/convention)
Location-Based Classification
- Downtown hotels:
- Located in the heart of the city
- Cater to business travelers
- High rates due to locational advantage
- Suburban hotels:
- Located in the suburbs
- Provide minimum necessary requirements
- Moderate to low rates
- Resort hotels:
- Located in hills or at beaches
- Provide basic facilities
- Rates often seasonal
- Airport hotels:
- Located at the airport
- Ideal for transit passengers
- Rates quoted for room only
- Motel:
- Located on highways
- Provide modest boarding and lodging facilities
- Good parking facilities
- Rates quoted for room only
Size-Based Classification
- Small hotel: up to 150 rooms
- Medium hotel: 150-300 rooms
- Large hotel: 500 or more rooms
- Very large hotel: around 1000 rooms or more
Length of Stay-Based Classification
- Transient hotels: guests stay for a short period of time
- Residential hotels: guests stay for a long period of time (7 days to a month or more)
- Semi-residential hotels: incorporate features of both transient and residential hotels
Other Classification Criteria
- Heritage hotels:
- Located in palaces/castles/forts/havelis built prior to 1950
- Must have a minimum of 5 rooms (10 beds)
- Architecture should be in keeping with traditional styles
- All-suite hotels:
- Provide guest rooms with separate bedroom and living room or parlor areas
- May have kitchenette
- Appeal to several market segments
- Time share hotels:
- Involve individuals or corporate owners who form an association
- Hire a management to operate their units as a hotel
- Buyers have the right to stay at a particular resort during a chosen period
- Condominium hotels:
- Layout resembles a suite hotel
- Guests may be considered tenants
- Residents may choose to contract for some or all services
- Casino hotels:
- Have gambling facilities
- Primarily function in a support role to the casino
- Attract guests with luxurious facilities and services
Service Level-Based Classification
- World-class service:
- Luxury hotels providing upscale facilities
- High emphasis on in-room amenities
- Clientele: top business executives, entertainment celebrities, high-ranking political figures
- Mid-range service:
- Hotels providing modest but sufficient services
- Clientele: families, groups, individual travelers
- Economy/limited service:
- Hotels providing basic services
- Clientele: budget travelers
This quiz covers the classification of hotels, including criteria for different star categories in India, application procedures, and departmental classification based on operating conditions and revenue generation.
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