Hotel Planning

Hotel Planning

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Abstract

This paper intends to craft a plan for opening a new hotel. The paper examines the characteristics of hotel industry in the United States. In addition, discusses the organization chart of the hotel, as well as formulate a strategy to ensure a hotel's profitability and take account of technology in Lodging Operations Management.

Hotel Planning

Introduction

The hotel industry of United Sates is the third largest industry following food and automotive stores. The largest subset of the lodging industry is the full service hotel, generate over $80 billion revenue each year. Hyatt, Starwood, Hilton and Marriott employ 25 percent of full service hotel employees in the United States. This industry provides employment to approximately 1.3 million employees in the country. In hotels, the workforce represents the US diversity.

Discussion

Characteristics of the Hotel Industry

In US, ownership of Hotel comes in all sizes and shapes. Current ownership structures of this hotel industry are categorized into eight namely, individual ownership, partnerships (General and Limited), S Corporations (S-Corp), C-Corporations (C-Corps), Real Estate Investment Trust (REIT), and Limited Liability Company (LLC). In the US hotel investment arena, high net-worth individuals emerge as consistent players. They conventionally feature less than $20 million bracket of asset, selected for boutique-style properties. Similar, to individual ownership, partnerships (General and Limited) has been strong competitors in terms of assets provided that there are no parameters of statutory return that can otherwise restrict their ability to carry out safe transactions (Cervino & Bonache, 2005).

Over the last 6 years, the ownership structure of hotel industry has gone through drastic change across America. Activity of merger and acquisition (M&A) dominated business headlines between 1996 and 1999 across United States. More than $16 billion of portfolio dealings in the US, in addition more than £15 billion in two international transactions (Starwood and Bass) shaped the mega brands of today.

Each ownership structure of US hotel industry comprise of renowned hotels. For instance, individual ownership transacted includes the Malibu Beach Hotel (California), the Raleigh Hotel South Beach (Miami), and Club Med Huatulco (Mexico). Partnerships (General and Limited) include Strategic Hotel Capital, Oxford Capital Partners, and Tharaldson Enterprises. REIT (Real Estate Investment Trust) takes in Felcor Lodging Trust, Hospitality Properties Trust, and Host Marriott Corporation. Publicly Traded C Corporation (C-Corps) embraces Sunburst Hospitality Corporation, Lodgian, and Westmont Hospitality. Limited Liability Company (LLC) includes FFC Hospitality, Hardin Capital and Sunstone Hotel Investors.

In the United States, the hotel industry seems to be monopolistic competitive market has the subsequent characteristics such as, multiple dimensions of competition, differentiated products, many sellers and easy entry of new firms in the long term. In perfect competitive market, with the heterogeneous products exception and monopolistic competition entails a non-price competition - based on slight product differentiation. This provides the hotel a definite amount of influence over the industry; it may result in prices increase without lose of the customers, due to brand loyalty. Hotel industry of United States have comprise of different types of hotel such as ...