ACCOMMODATION
CHAPTER 5 SECTOR
ACCOMMODATIONS
• According to the Oxford
English Dictionary hotel is
“An establishment
providing accommodation,
meals, and other services
for travelers and
tourists.”.
• Its origin goes all the way
back to the Old French
word HOSTEL, later
transitioned into HÔTEL
and adapted by the Middle
English.
HISTORY OF THE
ACCOMMODATIONS
➢With the rise of the Christianity in the
MIDDLE AGES came the increase in the
popularity of the monasteries and
abbeys. Unlike their Roman
counterparts, they offered a bed and a
supper to all the travelers, not just the
politicians and the rich.
➢Excavations in Pompeii reveal that the
Romans had developed the concept of
inns into a trade.
HISTORY OF THE
ACCOMMODATIONS
HOUSE OF SALLUST
It is probable that after the earthquake of 62 A.D.
the House of Sallust was transformed into a
hotel.
HISTORY OF THE ACCOMMODATIONS
In 1792 the first publicly held hotel, called the
CITY HOTEL, opened in NYC.
HISTORY OF THE
ACCOMMODATIONS
HISTORY OF THE
ACCOMMODATIONS
TYPES OF
ACCOMMODATION
HOTEL
• a hotel is defined as an establishment which offers overnight
accommodation, meals and other services. They are mainly
aimed at travelers or tourists, although locals may also use
them. Hotels provide private rooms, and almost always have en-
suite bathrooms. Hotels can be a 10-room boarding house or a
building that has a thousand or more rooms.
MOTEL OR MOTOR HOTELS
Normally, offer rooms only and free
parking for guest.
➢Intended for vacation travelers
RESORT ➢Usually located near beaches and
offer more amenities, shops and
HOTELS recreation opportunities.
PENSIONS
- Found principally in Europe
- Usually family-owned
accommodation facilities
- Called “Gasthaus” in German
PARADORS
- Generally old castles, convents,
or monasteries that have been
converted into hotels
➢Often hotels with apartment instead of basic
rooms.
CONDOMINIUM
➢Generally, appeal to families because of the
HOTELS apartments.
➢Originated in Europe
BED AND ➢Provides beds for the night and
BREAKFAST breakfast the next day
➢Lodging establishments that cater
TOURIST to transients.
INN
HOTEL STAR RATINGS
ONE-STAR HOTEL is simply a place to rest your head for the night. Generally owned by a sole proprietor,
these hotels offer modest rooms with nothing more than a bed and bathroom.
TWO STAR HOTEL is a hotel that provides the bare essentials with some comfort quality. Standard (**) At
a 2 Star Hotel, in addition to the comfort and hygiene essentials, the amenities for the guest are of a
significantly higher quality and appeal than to that of a 1 Star Hotel.
THREE STAR HOTEL is a hotel that provides average amenities, higher quality service, physical
attributes and design
HOTEL STAR RATINGS
• A 4-STAR HOTEL is a hotel that provides above-average, deluxe service and
experience for the guest. 4-star hotel has a larger range of facilities, and the
design is high quality. All service standards are aimed at pleasing the guest
• A FIVE-STAR property provides flawless guest services in a state-of-the-art
facility. As a five-star property, such as premium dining options and personalized
services for its guests. With no detail being overlooked, these hotels commonly
even provide high-end, luxury toiletries for guests
HOTEL STAR RATINGS
Some of the first-class amenities that separate a SIX-STAR from a five-star
hotel include private in-room chefs and butlers, on-call chauffeurs and private
pools. These posh perks that come with a six-star hotel, of course also come
with a hefty price tag; rooms in many of these hotel's average about $1,000
per night.
7 STAR HOTELS are hotels with the highest level of luxury available in the
world.
BURJ AL ARAB
MEAL PLAN
1.AMERICAN PLAN
American plan consists of room charge +
3 meals (Breakfast + Lunch + Dinner)
2.MODIFIED AMERICAN PLAN (MAP)
This plan consists of room charge + 2
meals (Breakfast + Lunch / Dinner)
3.BED AND BREAKFAST PLAN (B & B),
CONTINENTAL PLAN (CP)
This plan consists of room charge +
Breakfast.
4.EUROPEAN PLAN (EP)
This plan consists of room charge only.
HOTEL PROFITABILITY
ROOM OCCUPANCY
- obtained by dividing the number of rooms occupied by guests
on any night by the number of rooms in hotel and by multiplying the
result by 100 to determine the occupancy percentage
- can also be determined for a week, a month, a year, or any
other period
Daily:
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑅𝑜𝑜𝑚𝑠 𝑂𝑐𝑐𝑢𝑝𝑖𝑒𝑑
x 100 = Occupancy Percentage
𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑅𝑜𝑜𝑚𝑠
𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑅𝑜𝑜𝑚𝑠 𝑂𝑐𝑐𝑢𝑝𝑖𝑒𝑑
x 100 = Occupancy Percentage
𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑅𝑜𝑜𝑚𝑠 𝑥 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑎𝑦𝑠
In general, hotels are considered profitable if they can operate an average
annual occupancy of 65% or higher.
AVERAGE RATE PER ROOM OCCUPIED
- The average rate will increase if more expensive
rooms are sold or if more rooms are double or triple
occupied.
- obtained by dividing the revenue for a period by the
number of rooms occupied during the period.
𝑹𝒆𝒗𝒆𝒏𝒖𝒆
= ARR
𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑹𝒐𝒐𝒎𝒔 𝑶𝒄𝒄𝒖𝒑𝒊𝒆𝒅
- obtained by dividing total room revenue for a period
by the total number of guests accommodated during the
period
𝑻𝒐𝒕𝒂𝒍 𝑹𝒐𝒐𝒎 𝑹𝒆𝒗𝒆𝒏𝒖𝒆
= ADRG
𝑻𝒐𝒕𝒂𝒍 𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑮𝒖𝒆𝒔𝒕 𝑨𝒄𝒄𝒐𝒎𝒎𝒐𝒅𝒂𝒕𝒆𝒅
- To maximize the revenue and increase room
occupancy, hotels try to increase the length of stay of
customers through advertising and other marketing
methods.
- obtained by dividing total room revenue for a period
by the total number of guests accommodated during the
period
𝑭𝒊𝒙𝒆𝒅 𝑪𝒐𝒔𝒕𝒔
𝑪𝒐𝒏𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 𝑴𝒂𝒓𝒈𝒊𝒏
*FIXED COSTS – those that stay the same
regardless of the volume of the business
Examples: salaries, interest, depreciation,
and rent.
*CONTRIBUTION MARGIN- defined as the
average room less the variable of having a room
occupied
*VARIABLE COSTS – those that change
according to the number of guests in a hotel.
Examples: maid wages, cost of linen, laundry,
and supplies.
