Classification of Hotels by Star Ratings

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30 Questions

In what year was the first hotel, Boston's Tremont House, established?


Which hotel is credited as the first to have an atrium?

Brown Palace in Denver

During which period did the Great Depression result in 85 percent of hotels going bankrupt?


What type of accommodations mainly saw development after the end of WWII?


What has been a focus for companies to better target specific segments in recent decades?

Adding new brands of properties

Under what term are accommodations grouped, including many forms of transportation?

'Umbrella term lodging'

What star rating does a hotel typically have if it falls within the range of 851 to 1000 points?


Which of the following is NOT a classification of hotels based on location or market segment according to the text?

Casino Hotel

What type of hotel is described as 'enjoying the great outdoors'?

Campgrounds and RV parks

Which type of hotel is characterized by 'same time, same place' in the text?

Time-share condominiums

In the classification of hotels based on points, which range would a 2-star hotel fall into according to the text?

401 to 550 points

What type of hotel is known for 'living, learning, and leisure'?

Conference centers

What is the role of a general manager (GM) in a hotel?

Ultimate responsibility and essential role in hotel success

What is the front office often referred to as in lodging properties?

Nerve center

Which function works closely with the front office to ensure cleanliness and property maintenance?

Housekeeping department

What is key to a hotel's profitability according to the text?

Exceeding break-even occupancy rates

In larger and more complex properties, what kind of personnel are often required for functions like marketing, accounting, and security?

Middle managers

Why are profit margins in the hotel industry typically thin?

Because of high capital and labor intensity

What is a common ownership/management type in the lodging industry where small independent properties are managed by their owners?

Doing it alone

Which of the following lodging industry terms refers to properties managed under a common brand and centralized management?

Chain operations

What is a common method of expanding in the lodging industry involving licensing the use of a brand for a fee?


Which of the following is NOT one of the largest hotel companies mentioned in the text?

Hilton Hotels

In the lodging industry, what do referral associations offer to independent properties?

Marketing and reservation networks

What does 'Lodging Lexicon' refer to in the context of the text provided?

A list of hotel terminology definitions

What is the purpose of standardized classifications in the hotel industry?

To help clients understand a hotel's amenities and services

What do hotel stars represent in the context of the text?

A grading system evaluating a hotel's amenities and services

Who benefits from standardized classifications in the hotel industry?

Both consumers and hotel companies

How are hotels rated in the Philippine Hotel Rating System?

Depending on the condition and quality of specific facilities

What criteria are used to assign star points to hotels in the Philippine Hotel Rating System?

Inventory, availability, condition, quality, usability, and service of facilities

In the hotel industry, what do standardized classifications aim to provide?

Clear expectations on amenities and services

Study Notes

Brief History of Hotel Development

  • The first hotel, Tremont House, was established in Boston in 1829
  • The Brown Palace in Denver, built in 1892, was the first hotel with an atrium
  • The Buffalo Statler Hotel, built in 1908, added many services and amenities to the hotel industry
  • The Great Depression, which began in 1929, resulted in 85% of hotels going bankrupt
  • The end of World War II led to a rise in new hotel development, mainly in the form of motels
  • Recent decades have seen a period of growth and high profits in the hotel industry
  • Companies continue to add new brands of properties to target specific segments, such as extended-stay travelers

Classification of Hotels

  • Hotels can be classified according to their location and market segment
  • Examples of classifications include downtown, suburban, resort, motel, and boutique hotels
  • Hotels can also be classified according to their services and amenities, such as bed and breakfasts, casino hotels, and time-share condominiums
  • The Philippine Hotel Rating System uses a star grading system to evaluate hotels, with 5-star hotels having 851-1000 points, 4-star hotels having 701-850 points, and so on

Operating Structures

  • There are five types of ownership/management structures in the hotel industry: independent properties, franchising, management contracts, chain operations, and referral associations
  • Examples of large hotel companies include Jin Jiang International, Wyndham Hotels and Resorts, and Marriott International
  • Jin Jiang International has 11,959 hotels, Wyndham Hotels and Resorts has 9,280 hotels, and Marriott International has 8,484 hotels

Organizing for Success

  • A general manager (GM) is the top manager with ultimate responsibility for a hotel's success
  • Larger properties have many middle managers in charge of functional areas
  • Larger and more complex properties often require personnel devoted to cost center functions such as marketing, accounting, human resource, maintenance, purchasing, and security
  • The front office is the "heart" of lodging properties, acting as the first and last contact point and nerve/information center
  • Housekeeping is a critical support function, working closely with the front office to assure cleanliness and maintenance of the property

Achieving Profitable Operations

  • Occupancy rates and average daily rates are key to profitability
  • Break-even occupancy must be exceeded to make a profit
  • Profit margins tend to be thin due to capital and labor intensity

This quiz covers the classification of hotels based on star ratings, ranging from 1-star to 5-star. It also discusses the characteristics and features of hotels based on their location and market segment.

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