BAC 157 - Hotel Classification and Operations
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Questions and Answers

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 (correct)
  • Fixed percentage of total revenue (correct)
  • Fixed percentage of gross operating profits (correct)
  • 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.

    <p>False</p> Signup and view all the answers

    Hotels can be classified into different types based on which of the following criteria?

    <p>All of the above</p> Signup and view all the answers

    ______ hotels are located in the hills or at beaches and cater to vacationers and pleasure travelers.

    <p>Resort</p> Signup and view all the answers

    Inn hotels are typically large in size with extravagant amenities.

    <p>False</p> Signup and view all the answers

    What is the primary feature of All-Suite hotels?

    <p>Separate bedroom and living room or parlor areas</p> Signup and view all the answers

    Match the following hotel types with their descriptions:

    <p>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</p> Signup and view all the answers

    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

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    Description

    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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