6.3 Today’s Hotel Industry
Classifications
Hotels are classified in different ways to denote quality, amenities, size, and type of experience. Common classification methods include star ratings, diamond ratings, eco-certifications, chain scales, and industry segmentations. These help consumers select accommodations matching their needs and budgets. Team members building careers in the accommodation sector share transferable skills but cannot necessarily switch from one classification to another seamlessly. Making strategic decisions about one’s career pathway is integral to ensure barriers are not bumped up against later in one’s career.
Star Ratings
The most widely recognized ratings are star systems designating luxury levels. Many countries use 5-star scales where more stars indicate nicer amenities and service. 1-star properties offer budget basics while 5-stars are opulent. Ratings are assigned by government tourist boards or independent organizations.
Critics argue star ratings are subjective and inconsistent globally. There is no standard for the star rating system. In most regions, hoteliers can call their property any number of stars that they want. This can be leveraged as a marketing ploy to unsuspecting consumers. There are even hotels that refer to themselves as 6-star or 7-star properties. These are marketing terms, not reliable denotations.
Fact
Although the star rating system lacks a global standard, some locations have defined metrics. Paris, France, is one such major tourism destination that has guidelines for what constitutes each star in the star rating system (Paris Discovery Guide, n.d.). Paris’s star rating system is objective, not subjective.
The star rating system for hotels in Paris, France, is a standardized framework that categorizes hotels based on their quality, amenities, and level of service. This system ranges from one to five stars. The higher star ratings indicate more luxurious and comprehensive facilities and services.
France’s classification is overseen by Atout France, the French Agency for Tourism Development. A one-star hotel typically offers basic accommodations with limited amenities, suitable for budget travelers. As the stars increase, so do the quality and variety of services. This includes but is not limited to room size, decor, reception availability, and additional facilities like restaurants and spas. Five-star hotels represent the pinnacle of luxury and comfort. These properties are known to offer exquisite rooms, exceptional service, gourmet dining, and other high-end amenities. These ratings are subject to regular review and inspection to ensure that standards are consistently met. France ensures travelers have a reliable indicator of what to expect from their accommodations.
Diamond Ratings
Hospitality ratings firms such as AAA in the U.S. or CAA in Canada inspect and rate hotels using a diamond system (5 maximum). Diamonds indicate quality, physical attributes and level of service. Diamond ratings are generally regarded to be the most reliable in countries where organizations such as AAA or CAA operate because of the strict standards; see AAA’s Diamond Rating Guidelines for Lodging.
Eco-Certifications
Leadership in Energy and Environmental Design (LEED) is a voluntary certification program that provides independent verification of buildings’ sustainable design, construction, and operations. This is the most well-known eco-certification in the U.S., including beyond the confines of the hotel industry specifically. LEED certification (U.S. Green Building Council, Inc., n.d.) is sometimes obtained for new property construction and major renovations for hotels and any other type of building. This certification evaluates factors like site selection, water and energy efficiency, materials, and indoor environmental quality. It does not evaluate management, which is a primary shortcoming of LEED in a hotel context.
LEED does not evaluate ongoing operations such as management after the project is completed. Some criticize LEED as not fully applicable to hotel sustainability, since the hospitality industry is service-driven. Naysayers argue that hotel sustainability encompasses more than just eco-friendly buildings, requiring behavioral dimensions around culture, education, team member benefits such as pay, and communication. Thus, while LEED certification has value for hotels undertaking new development, it provides limited utility in benchmarking the full range of a hotel’s environmental impacts and sustainability practices after opening. More holistic environmental management systems and eco-labels may better represent hotel sustainability leadership. Yet, hotel specific and more holistic eco-certifications are not as well known or recognized.
Unlike LEED certification which focuses primarily on fixed assets like buildings, the International Standardization Organization (ISO) 14000 series provides guidance on organizational processes for environmental management. ISO 14001 specifically outlines standards for an effective environmental management system (EMS) within an organization to continuously improve sustainability performance (International Organization for Standardization, 2015). This framework for aspects like objective-setting, monitoring, corrective actions, and compliance can be applied to hotel operations and management. However, ISO 14001 certification involves time-intensive auditing which can deter adoption, especially for small hotels. Critics also argue that compliance with ISO 14001 does not guarantee improved environmental results. While the ISO 14000 framework could help hotels take a more systematic approach to sustainability, simply displaying an ISO 14001 “eco-label” may not fully reflect meaningful commitment versus comprehensive environmental programs tailored for hospitality.
Green Key Global (GKG) is another mainstream eco-certification for the lodging industry. Green Key Global began in Denmark in 1994 and has since grown into the behemoth it is today over a period of approximately 25 years. In fact, it is the world’s largest eco-certification by many metrics (Jensen, n.d.).
Green Key Global is an international eco-labeling program designed for the hospitality industry to encourage sustainable practices in hotels and other tourism establishments. Owned and managed by the Foundation for Environmental Education (FEE), a non-profit organization, it sets global standards for environmental responsibility and sustainable operation within the tourism industry.
The program assesses establishments based on a series of stringent criteria, including energy and water conservation, waste management, and environmental education. These standards ensure that certified properties adhere to essential environmental performance measurements, effectively reducing their ecological footprint. Widely adopted across the globe, Green Key Global has certified thousands of establishments in over 65 countries, demonstrating a growing commitment to environmental sustainability in the hospitality sector.
There are more than 400 global eco-certifications (Nygaard, 2023). Approximately 120 of these are based in the U.S. Few are well-known. One of the best practices in eco-certification is for the parameters to be location-specific due to localized environmental and socio-cultural concerns. This means that certification programs often have a difficult time effectively marketing themselves and being meaningful.
Chain Scales
Major hotel chains utilize branded chain scales to categorize their properties into distinct market segments. Chain scales are typically labeled with names indicating the luxury level and amenities such as Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale, Economy, and Budget. Smith Travel Research (STR), begun by Randy Smith is based in Hendersonville, TN (a suburb of Nashville). STR is the privately owned company that identifies and classifies hotels into the aforementioned labels. STR does many other things including consulting and data analysis. Their competitive analysis (comp set) is known as a STR Report. This report makes STR one of the most important organizations in the global lodging industry.
These chain scale segments clarify the positioning, guest expectations, and standards that will be delivered by each property flying the parent brand’s flag. Luxury and Upper Upscale hotels feature elegant design, upscale amenities, enhanced services, premium bedding, and prime locations. Midscale and Economy properties focus on providing essential accommodations and basics needed for a comfortable night’s stay at affordable rates. Chains carefully define standards regarding room sizes, bed types, internet access, lobby experience, fitness options, dining, meeting facilities, and leisure amenities appropriate for each chain scale segment. Maintaining these distinctions preserves the brand promise and helps travelers select the right experience level for their needs. From a management perspective, chain scales allow parent companies to set parameters and uphold quality control across a portfolio that may encompass thousands of hotels in numerous countries.
These are the generally accepted chain scales:
Luxury Hotels: Luxury hotels represent the pinnacle of hospitality, providing unparalleled service, opulent accommodations, and an array of high-end amenities. These properties cater to discerning travelers seeking an exceptional and indulgent experience. From elegant and spacious guest rooms to lavish spas, fine dining restaurants, and personalized concierge services, luxury hotels spare no expense in creating an atmosphere of luxury and exclusivity. The staff is highly trained to anticipate guests’ needs and provide personalized attention to ensure a truly memorable stay. With meticulous attention to detail, these hotels often feature exquisite decor, premium linens, state-of-the-art technology, and exclusive facilities such as private pools, upscale lounges, and even dedicated butler service.
Upper Upscale Hotels: Upper upscale hotels offer a refined and sophisticated experience, combining upscale amenities with a focus on attentive service. These properties provide a balance between luxury and practicality, appealing to both leisure and business travelers who seek a higher level of comfort and service. Guest rooms in upper upscale hotels are well-appointed, featuring modern decor and high-quality furnishings. The amenities often include fitness centers, business centers, multiple dining options, and spacious meeting and event spaces. The staff is trained to provide personalized service, ensuring guests feel valued and well-cared-for during their stay. These hotels often cater to travelers who appreciate a luxurious experience without the extravagant price tag.
Upscale Hotels: Upscale hotels offer a comfortable and elevated experience, catering to travelers who desire quality accommodations and amenities without the price tag of luxury or upper upscale properties. Guest rooms in upscale hotels are tastefully designed with modern decor and functional furnishings. Amenities typically include fitness centers, business centers, on-site dining options, and meeting spaces to accommodate business travelers and small to mid-sized events. The service is attentive, with staff trained to provide a welcoming and professional atmosphere. Upscale hotels strike a balance between affordability and offering a higher level of comfort, making them popular among both business and leisure travelers seeking a pleasant and convenient stay.
Upper Midscale Hotels: Upper midscale hotels cater to travelers who value a comfortable and reliable experience at an affordable price. These properties focus on providing well-maintained accommodations and essential amenities for guests’ convenience. Guest rooms in upper midscale hotels are typically spacious and equipped with standard amenities, including comfortable bedding, work desks, and in-room entertainment options. The hotels often feature fitness centers, complimentary breakfast, and business centers to cater to both leisure and business travelers. The service is friendly and efficient, aiming to meet guests’ needs promptly and ensure a pleasant stay.
Midscale Hotels: Midscale hotels offer comfortable and practical accommodations at an affordable price point. These properties provide essential amenities and services for guests seeking a reliable and convenient stay. Guest rooms are designed with functionality in mind, offering comfortable bedding, workspaces, and standard amenities such as Wi-Fi access and in-room entertainment. Midscale hotels often have dining options on-site or in close proximity, as well as basic fitness facilities. The service is friendly and efficient, ensuring guests have a hassle-free experience during their stay.
Economy Hotels: Economy hotels provide budget-friendly accommodations for cost-conscious travelers seeking simple and no-frills lodging options. These properties prioritize affordability without compromising on cleanliness and comfort. Guest rooms in economy hotels are modestly furnished and offer essential amenities for a comfortable stay, such as comfortable bedding, basic toiletries, and Wi-Fi access. While the amenities and facilities may be limited, economy hotels strive to provide a clean and safe environment for guests, often offering complimentary breakfast and convenient access to transportation hubs or major attractions. The service is efficient and focused on meeting guests’ basic needs, making economy hotels a practical choice for travelers on a tight budget.
Hotels do not necessarily get to self-define themselves into categories. Organizations such as Smith Travel Research (STR) function as arbiters by identifying the scale that a hotel property fits into. For example, STR created the Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale, Economy, and Budget denotation that is widely accepted globally.
6.3.1.5 Smith Travel Research (STR) Classifications
STR Global plays a vital role in the hotel industry by providing global data benchmarking, analytics, and forecasting. STR operates the most comprehensive database of hotel performance metrics used for competitive analysis (comp set). Properties participate by submitting monthly data on metrics like occupancy, average daily rate (ADR), revenue per available room (RevPAR), and sources of demand (STR, 2022).
These massive data feeds allow hotels to assess their positioning against a competitive set of similar hotels in the market. The results inform pricing, marketing, budgeting, and other decisions. Beyond benchmarking, STR’s data feeds management contracts and incentive bonuses based on performance thresholds. STR data is powerful in part because a majority of hotel managers in the U.S. and many other countries have a bonus structure based on STR’s comp set results. How could tens of thousands of hotel manager’s bonuses be based on STR data, you ask?
Hotels voluntarily submit performance data to STR Global each month in order to benchmark themselves against competing properties. By sharing key metrics like occupancy percentage, average daily rate (ADR), revenue per available room (RevPAR), and demand breakdowns, hotels gain access to STR reports comparing their results against a competitive set of similar hotels in the market. Analyzing this benchmarking data helps hotels evaluate their positioning and pricing. Participating hotels send their latest monthly data by the 15th of the following month through STR’s secure online portal. After validation, STR incorporates the data into its extensive database to produce benchmarking reports that subscribers can access through STR’s cloud-based analytics platform. For hoteliers, the benefits of contributing data and receiving the resulting comparative analytics makes participation in STR’s system an invaluable tool for maximizing revenue.
STR is not only about hotel manager bonus structures though. STR data also drives ownership decisions. For example, STR classifies hotels within industry segments that underpin market analysis. Another example is that STR provides valuable demand forecasting and consulting services to over 80,000 subscribing hotels and organizations globally, representing approximately 10.5 in 190 countries (CoStar Group, n.c.). From informing strategies to structuring management agreements, STR data and insights empower better decision-making across the hotel industry. One of the insights STR provides is hotel market segmentation.
Summary of Classifications
STR is important to the global hotel industry. Numerous firms worldwide provide valuable services to the hospitality industry through market segmentation models, consulting, certifications, and benchmarking data. These offerings assist hotels in enhancing performance, positioning, and professional expertise.
Kalibri Labs provides detailed segmentation of the hotel market based on factors like quality, amenities, location, and demand generators. Hotels are classified into categories like luxury, upper upscale, upscale, midscale, economy and budget. Kalibri tracks over 60,000 properties worldwide, including 35,000 U.S. hotels (Kalibri Labs, n.d.), to inform these distinctions. Their segmentation allows deep analysis of competitive dynamics across chain scales within a given market.
CBRE Hotels, the hospitality division of commercial real estate firm CBRE, acquires hotel performance data to produce an annual Trends in the Hotel Industry report. Leveraging data from over 7 million hotel rooms globally, this free report (CBRE Hotels Research, 2023) offers macro-level benchmarking insights on metrics like occupancy, average daily rate (ADR), revenue per available room (RevPAR), and revenue multiples. CBRE’s hotel consulting services were previously known as PKF. PKF was a powerful force in the global hotel industry. The organization had a global presence and an enormous amount of historical data that CBRE now controls. Historical context such as CBRE controls aids forecasting for hotel professionals.
Hospitality consultancy HVS takes a nuanced approach to market analysis and appraisals through bespoke hotel classifications reflecting destinations’ unique attributes. Adjusting for factors like seasons, policies, and infrastructure provides contextual insights. HVS consultants are involved throughout the hospitality real estate lifecycle. The company’s suite of consulting services aids investment, development, marketing, and asset management decisions.
HotStats provides cloud-based analytics for benchmarking hotel performance. Data aggregation from over 120 brands and 600 markets (HotStats, n.d.) enables subscribers to analyze metrics against custom competitive sets and industry averages. The platform features drill-down tools to uncover drivers and opportunities. In many ways, HotStats is a more refined tool to view STR and similar data.
Certification bodies provide credibility to professionals. The American Hotel & Lodging Association (AH&LA) offers Certified Hotel Administrator (CHA) training to validate proficiency in hospitality management, law, finance, and leadership. The Hospitality Sales and Marketing Association International confers Certified Hospitality Marketing Executive (CHME)status for marketing skills mastery. HSMAI offers Certified Hospitality Digital Marketer (CHDM) to recognize expertise in digital marketing and analytics for the hospitality industry. The Hospitality Financial and Technology Professionals (HFTP) association administers Certified Hospitality Technology Professional (CHTP) to validate proficiency overseeing technology systems. STR offers Certified Hospitality Industry Analytics (CHIA). These certifications help validate specialized skills and knowledge.
Sustainability certifications, including Green Key as the largest global certifier of ‘greening’ in the lodging industry, benchmark hotels’ environmental and social responsibility initiatives. Assessment criteria for Green Key span operational areas like water, waste, energy, cleaning, food, and community engagement. Guest education and staff engagement are also measured. Badges signal meeting corporate social responsibility (CSR) goals. With this written, Green Key Global has been under increased pressure to remove elements of greenwashing that may exist in its metrics.
The International Standards Organisation (ISO) provides globally recognized standards for many industries, including hospitality. ISO publishes guidelines for quality management, risk management, sustainability, food safety, IT security and more that hotels can adopt to improve processes. ISO does not confer formal certifications, but third parties audit compliance.
In summary, no single framework can capture the hotel industry’s complexity. Leading global providers analyze key dimensions like quality, segment, performance metrics, staff capabilities, and operational processes through targeted models, data, certification and expertise. Together, these tools yield insights to inform strategies and growth.
Hotel Types
It is common to differentiate hotels by their purpose. There are numerous ways to differentiate hotel properties by purpose. This section on hotel types describes some of the most common hotel types.
It is important to know hotel types before entering a career pathway in the lodging industry. At times, students choose to work at hotels that they want to stay at. Working at a hotel is different than staying at a hotel though. Someone’s personality and preferences for a workplace environment should be drivers behind choosing a career trajectory and hotel to work at. Furthermore, properties can operate in a unique manner based on their location. For example, a resort property or airport property require a different set of operational understandings. Building a sustainable career pathway, beyond choosing simply the accommodation sector, can be important. It begins with choosing the types of properties you are interested in working with.
Airport: Airport hotels target airline crews and travelers with overnight layovers, offering convenient accommodations near airports. These properties prioritize easy access to airport terminals and provide free transportation services, ensuring guests can quickly reach their flights or rest during long layovers. Beyond daily rates, many airport hotels offer hourly rates, catering to travelers who require short-term stays. These properties are designed to provide comfort and convenience for guests in transit, with soundproofed rooms, 24-hour reception, and amenities such as fitness centers, restaurants, and business facilities to cater to their specific needs.
All-Inclusive: An all-inclusive hotel is a property that offers complete packages, bundling overnight accommodations with a range of value-added amenities and services. These packages often include food, beverages, activities, and gratuities, providing guests with a hassle-free experience where everything is taken care of. With an all-inclusive hotel, guests can enjoy unlimited access to dining options, entertainment, and various recreational activities without having to worry about additional costs.
All-Suite: An all-suite hotel is a property that exclusively consists of spacious guestrooms offering more space and furniture than a typical hotel room. These suites often feature a designated living area or multiple rooms, providing guests with a comfortable and home-like environment during their stay. With separate sleeping and living areas, guests have the flexibility to relax, work, or entertain without feeling cramped. All-suite hotels are popular among families, business travelers, and those seeking a higher level of comfort and convenience.
B&B/Inn: Bed and breakfast (B&B) or inn properties are independently owned and operated establishments that typically offer a cozy and personalized experience. These properties usually have 20 rooms or fewer and include breakfast in the room rates. Guests can enjoy a warm and inviting atmosphere, often with a resident/owner innkeeper who provides attentive service and insider tips about the local area. B&Bs and inns offer a more intimate setting, allowing guests to connect with the local culture and enjoy a unique and charming stay.
Boarding House: Boarding houses are similar to bed and breakfasts (B&Bs) but are intended for longer stays, typically ranging from a few nights to fewer than 30 nights. These properties offer comfortable accommodations, often in a home-like setting, and provide services such as daily housekeeping and meals. Boarding houses cater to individuals or groups who require temporary lodging for work assignments, relocation, or extended leisure stays. They offer a welcoming and inclusive environment, creating a sense of community for guests during their time away from home.
Boutique: Boutique hotels are known for their distinctive and atypical amenities and room configurations. These properties are often independent, with fewer than 200 rooms, and focus on providing a high level of service and a unique guest experience. Boutique hotels cater to travelers seeking authenticity, cultural immersion, and personalized attention. They may feature stylish and design-oriented interiors, curated artwork, and offer specialized services or themed accommodations. Boutique hotel chains such as Autograph Collection, Dream Hotel, and Kimpton Hotels are recognized for their individuality and the memorable experiences they offer.
Business: Business hotels cater to the specific needs of business travelers. These properties are typically located in downtown areas or business districts, offering convenient access to corporate offices, convention centers, and transportation hubs. Business hotels provide a range of services and amenities that meet the requirements of business travelers, such as well-equipped meeting rooms, high-speed internet access, business centers, and executive lounges. These properties prioritize efficiency, comfort, and convenience, ensuring that guests have a productive stay while attending to their work-related commitments.
Condo: Condo hotels consist of individually and wholly-owned condominium units that are included in a rental pool operated and serviced by a management company. These properties provide a combination of the comforts of home and the convenience of hotel services. Guests can enjoy the privacy and spaciousness of a condo unit along with access to amenities and services such as housekeeping, concierge, and maintenance. Condo hotels are popular choices for extended stays or for travelers who prefer a self-catering and independent lifestyle while still having access to hotel-like amenities.
Conference Center: A conference center hotel has a major focus on conference facilities and adheres to the guidelines set by the International Association of Conference Centers (IACC). These properties are designed to cater to large meetings, conferences, and corporate events.
Conference center hotels offer extensive meeting spaces, state-of-the-art technology, and dedicated services to ensure successful events. They provide a complete package for business travelers, combining comfortable accommodations with convenient on-site meeting facilities and support services.
Convention Center: Convention center hotels are properties with a minimum of 300 rooms and large meeting facilities of at least 20,000 square feet. While similar to conference center hotels, convention center hotels are not part of the Conference Center Group (CCG). These hotels are strategically located near convention centers and cater to attendees of major conventions, exhibitions, and trade shows. They provide convenient accommodations for participants and offer amenities and services tailored to the needs of convention-goers.
Destination Resort: A destination resort is a property that appeals to leisure travelers and is considered a destination in itself. These resorts are often located in popular vacation areas and offer extensive amenities and activities to keep guests entertained throughout their stay. Destination resorts typically have large and comprehensive facilities, such as multiple restaurants, pools, spas, golf courses, and recreational areas. These properties provide a complete vacation experience where guests can relax, engage in various activities, and enjoy the resort’s unique offerings without needing to leave the premises.
Extended Stay: Extended stay hotels are specifically designed to cater to guests who require accommodations for longer periods, typically quoting weekly rates. These properties offer amenities and services that cater to the needs of guests staying for extended periods, such as fully equipped kitchens or kitchenettes, on-site laundry facilities, and spacious living areas. Extended stay hotels provide a home-away-from-home experience, allowing guests to settle in comfortably and maintain their routines during longer stays, whether for business, relocation, or personal reasons.
Full-Service Hotel: Full-service hotels are typically upscale, upper upscale, or luxury properties that offer a wide range of onsite amenities and services. These hotels go beyond the basics and provide guests with a comprehensive experience, including multiple dining options, well-equipped fitness centers, spa facilities, concierge services, and extensive meeting spaces. Full-service hotels strive to meet the needs and preferences of various guest segments, offering convenience, comfort, and a high level of service for both leisure and business travelers.
Casino (Gaming): Gaming hotels have a major focus on casino operations. These properties typically offer a wide range of casino games including slot machines, table games, and poker rooms, alongside accommodations, dining options, and entertainment venues. Casino hotels cater to guests who enjoy gambling activities and seek a vibrant and lively atmosphere where they can try their luck and indulge in entertainment offerings.
Golf: Golf hotels are properties that feature an onsite golf course as part of their operations. These properties provide golf enthusiasts with convenient access to well-maintained courses and related amenities. Golf hotels often offer golf packages, practice facilities, golf pro shops, and services tailored to golfers’ needs. They are popular among individuals and groups seeking a golf-focused vacation or those looking to combine their love for the sport with leisure and relaxation.
Hostel: Hostels are establishments that provide the cheapest possible accommodations, usually in shared spaces and rooms with bunk beds. These budget-friendly accommodations cater to backpackers, solo travelers, and those seeking a social and communal travel experience. Hostels offer dormitory-style rooms, communal kitchens, and common areas where guests can interact, share experiences, and forge new friendships. They often organize social activities and events, creating a vibrant and lively atmosphere for travelers on a tight budget.
Inns: Inns are establishments that provide accommodations and food, with a focus on catering to clientele who are staying short-term. These cozy and inviting properties offer a warm and welcoming atmosphere, often located in charming countryside or historic settings. Inns traditionally offer comfortable rooms and a restaurant or pub onsite, where guests can enjoy delicious meals and drinks. They provide a personalized and intimate experience, with attentive innkeepers who go the extra mile to ensure guests have a pleasant stay.
Limited Service: Limited-service hotels are properties that offer limited facilities and amenities, often without a full-service restaurant. These hotels are commonly found in the economy, midscale, or upper midscale segments. While they may offer fewer on-site amenities compared to full-service hotels, limited-service properties still provide comfortable accommodations, complimentary breakfast, Wi-Fi, and other essential services. They are popular among budget-conscious travelers or those seeking a straightforward and convenient stay without extensive additional features.
Lifestyle Brand: Lifestyle brand hotels are a group of properties operating under the same brand that adapt to reflect current trends. These brands aim to provide a unique and trendy experience that aligns with the preferences of contemporary travelers. Lifestyle brand hotels often feature modern designs, vibrant atmospheres, and social spaces where guests can connect and engage. They offer amenities and services that cater to the lifestyle and interests of their target audience, providing a distinct and memorable stay. Examples of lifestyle brand hotels include AC Hotels by Marriott International, Aloft by Starwood Hotels & Resorts Worldwide, and Radisson Red by Carlson.
Lodge: Lodges are small establishments that specialize in providing recreational and leisure activities for their guests. These properties are often nestled in scenic locations, such as mountains, forests, or national parks, offering guests a unique opportunity to connect with nature and enjoy outdoor adventures. Lodges typically feature comfortable accommodations, common areas for socializing, and a range of outdoor facilities and amenities. Guests can participate in activities like hiking, fishing, skiing, or wildlife watching, immersing themselves in the natural beauty and tranquility of their surroundings.
Motels: Motels are also unique properties. Understandings of motels are different in many areas of the world. In the United States, motels are generally differentiated from other types of accommodations by having doors that open to the outdoors, normally a parking lot, in lieu of an interior corridor. Motels have historically served motorists, been 3 floors or less, and focused on the economy sector of the lodging industry. In recent years, many motels have been renovated to become higher-end properties though. For example, the Hotel Valley Ho in Scottsdale, Arizona, is a higher-end hotel located in Scottsdale’s prestigious Fashion Square neighborhood. This property can be defined as a motel as the doors open to exterior locations rather than interior corridors.
New Build: New build properties refer to hotels that are built from the ground up, rather than being conversions or buildings that were not previously hotels. These properties are newly constructed and often showcase modern design, state-of-the-art facilities, and the latest technology. New build hotels provide guests with a fresh and contemporary experience, incorporating the latest industry standards and trends in their design, amenities, and services.
Resorts: Resorts are hotel properties that feature entertainment or recreational activities as core tenets of operations. These properties are hotels that require unique approaches to operations and management. For example, the 405-acre Hyatt Regency Lost Pines features horseback riding, a long lazy river, an 18-hole golf course, fire pits, and more.
Ski: Ski hotels are properties that offer onsite access to ski slopes or are located in proximity to ski resorts. These properties cater to skiers and winter sports enthusiasts, providing convenient access to ski lifts, equipment rentals, and related amenities. Ski hotels often offer services such as ski storage, après-ski facilities, and transportation to and from the slopes. They provide a cozy and convenient base for guests to enjoy their skiing adventures and the surrounding mountainous landscapes.
Soft Brand: Soft brand hotels are collections of properties that allow owners and operators to affiliate with a major hotel chain while retaining their unique name, design, and orientation. Soft brand hotels offer the benefits and support of a major chain, such as reservation systems and loyalty programs, while preserving their distinct identity and character. These hotels cater to guests seeking a more personalized and individualized experience while enjoying the advantages of a recognized brand. Examples of soft brand hotels include Ascend Hotel Collection by Choice Hotels International, Autograph Collection by Marriott International, and The Luxury Collection by Starwood Hotels & Resorts Worldwide.
Spa: Spa hotels are properties that have an onsite spa facility and a dedicated full-time staff offering a range of spa treatments and wellness services. These properties focus on providing a serene and rejuvenating environment where guests can relax, unwind, and pamper themselves. Spa hotels often offer a variety of treatments, including massages, facials, body wraps, and hydrotherapy, complemented by amenities such as saunas, steam rooms, and fitness centers. They provide an oasis of tranquility and wellness, allowing guests to escape the stresses of daily life and indulge in rejuvenating experiences.
Timeshare: Timeshare properties typically consist of resort condominium units, in which multiple parties hold property use rights for specific periods. Each timeshare owner is allotted a designated period of time when they can use the property, often on a recurring annual basis. Timeshare properties offer the advantages of owning a vacation home without the full financial commitment and responsibilities. Guests can enjoy the comfort and amenities of a resort-style accommodation during their allotted time, providing a home away from home for their vacations.
Waterpark: Waterpark hotels are establishments that combine lodging with an aquatic facility. These properties typically have a minimum of 10,000 square feet of waterpark space, including features such as slides, tubes, and a variety of water play elements. Waterpark hotels provide families and guests of all ages with a fun and exciting experience, offering access to thrilling water slides, lazy rivers, wave pools, and other water attractions. They often provide additional amenities such as game rooms, restaurants, and entertainment options to create an immersive and enjoyable waterpark resort experience.
Attributions
- Figure 6.3: CAES by Idaho National Laboratory is released under CC BY 2.0
- Figure 6.4: image released under the Pexels License
- Figure 6.5: The pyramid of corporate social responsibility by Michel Awkal is released under CC BY-SA 4.0
- Figure 6.6: Welcoming Warmth by CL Photographs is released under CC BY-ND 2.0
- Figure 6.7: Convention Center by Sean Munson is released under CC BY-NC-ND 2.0
- Figure 6.8: Anker Hostel Room by Oriol Salvador is released under CC BY-NC-ND 2.0
- Figure 6.9: Pool at Sandos Playacar by Jack Kennard is released under CC BY-NC-ND 2.0
- Figure 6.10: Hotel-Spa Resguard dels Vents by EscapadaRural is released under CC BY 2.0
Please look for related terms in the Glossary.
Certifications or labels awarded to tourism and hospitality establishments that demonstrate environmentally friendly and sustainable practices, such as energy conservation, waste reduction, and eco-friendly operations.
A classification system used to categorize hotel chains or brands based on factors such as size, price, target market, and level of service, providing a framework for comparing and analyzing hotel portfolios.
An international standard for environmental management systems (EMS), providing guidelines and requirements for organizations to establish, implement, and continually improve their environmental performance and sustainability efforts.
A framework or system implemented by organizations to manage and reduce their environmental impact, incorporating policies, procedures, and practices for sustainability and compliance with environmental regulations.
A global sustainability certification and recognition program for hotels and lodging establishments, promoting environmentally friendly practices and responsible tourism initiatives.
A leading provider of data, analytics, and benchmarking insights for the hospitality industry, specializing in hotel performance metrics, market trends, and competitive analysis.
A hotel segment offering luxury accommodations, amenities, and services targeting affluent travelers and corporate clients, positioned above upscale and luxury segments in terms of price and quality.
A hotel segment offering mid-range accommodations, amenities, and services targeting value-conscious travelers and families, positioned above midscale and economy segments in terms of price and quality.
A hotel segment offering moderate-priced accommodations, amenities, and services targeting budget-conscious travelers and families, positioned between economy and upscale segments in terms of price and quality.
A hotel segment offering budget-friendly accommodations, amenities, and services targeting cost-conscious travelers and value-oriented guests, characterized by affordable rates and basic amenities.
The process of comparing and measuring performance metrics, practices, and standards against industry peers, competitors, or best practices to identify opportunities for improvement and achieve strategic goals.
The systematic analysis and interpretation of data, statistics, and metrics to gain insights, make informed decisions, and optimize performance in various aspects of hospitality and tourism operations.
The process of predicting or estimating future trends, demand, or outcomes based on historical data, statistical models, and market analysis, used to inform planning, resource allocation, and decision-making
A key performance metric in the hospitality industry measuring the percentage of available rooms or units occupied by guests during a specific period, indicating utilization and revenue performance.
A key performance metric in the hospitality industry representing the average revenue earned per occupied room or unit for a specific period, calculated by dividing total room revenue by the number of occupied rooms.
A key performance metric in the hospitality industry representing the average revenue earned per available room or unit for a specific period, calculated by multiplying occupancy rate by average daily rate.
A global commercial real estate services and investment firm, providing advisory, brokerage, and property management services to clients in the hospitality industry and other sectors.
A consulting and advisory firm specializing in hospitality research, benchmarking, and advisory services, providing insights and analysis on hotel industry trends, performance metrics, and investment opportunities.
A consulting and valuation firm specializing in hospitality, providing advisory, appraisal, and feasibility services to clients in the hotel, resort, and tourism sectors worldwide.
A provider of hotel performance data, benchmarking, and analysis services, offering insights into revenue, expenses, and profitability metrics for hospitality properties worldwide.
A professional certification program offered by the American Hotel & Lodging Educational Institute (AHLEI) focusing on hospitality marketing strategies, tactics, and best practices
A professional certification program offered by the American Hotel & Lodging Educational Institute (AHLEI) focusing on digital marketing strategies, tools, and techniques for the hospitality industry.
A global nonprofit association serving hospitality finance and technology professionals, providing education, certification, and networking opportunities.
A professional certification program offered by Hospitality Financial and Technology Professionals (HFTP) focusing on hospitality technology systems, solutions, and management.
A business approach that integrates social and environmental concerns into company operations and strategies, encompassing sustainability, philanthropy, community engagement, and ethical practices.
A deceptive marketing practice where a company exaggerates or misrepresents its environmental or sustainability efforts to appear more environmentally friendly or responsible than it actually is.
An international organization that develops and publishes standards for various industries and sectors, including tourism, hospitality, and environmental management.
Lodging properties catering primarily to business travelers, offering amenities and services tailored to the needs of corporate guests, such as meeting facilities, business centers, and high-speed internet access.
Lodging establishments offering a wide range of amenities, services, and facilities, including accommodations, dining, recreational activities, and event spaces, providing a comprehensive guest experience.
Lodging properties featuring casinos or gaming facilities as a primary attraction, offering accommodations, entertainment, and gaming amenities for leisure travelers and casino enthusiasts.
Resorts or lodging properties located near golf courses or golf resorts, offering accommodations, amenities, and packages tailored to golfers and golfing enthusiasts.
Lodging establishments offering basic accommodations and limited amenities and services, catering to budget-conscious travelers seeking value-oriented lodging options.
supplementary features, services, or facilities provided to enhance the comfort, convenience, and enjoyment of guests or customers, including in accommodations, transportation, and leisure venues.
Hotel brands or properties embodying a distinct lifestyle or ethos, targeting specific demographic or psychographic segments with unique design, amenities, and experiences.
Accommodation facilities located in natural or remote settings, often near national parks, wildlife reserves, or outdoor recreation areas, offering rustic or cozy accommodations for nature-oriented travelers.
Newly constructed or developed hotel properties, often featuring modern design, amenities, and technology to appeal to contemporary travelers and meet evolving market demands.
Lodging properties located near ski resorts or mountain destinations, offering accommodations, amenities, and services tailored to skiers, snowboarders, and winter sports enthusiasts.
Hotel collections or affiliations allowing independent properties to retain their unique identity and branding while benefiting from the marketing, distribution, and support of a larger brand or network.
Lodging establishments featuring spa facilities and wellness amenities as a primary focus, offering guests relaxation, rejuvenation, and therapeutic treatments during their stay.
Lodging properties featuring waterpark attractions, pools, and slides as a primary amenity, offering family-friendly accommodations and entertainment for guests of all ages.