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Classifications of lodging properties; franchising in the lodging industry

1. What are some of the classifications of lodging properties? What are some examples of real-world lodging properties that represent these classifications? What are the differences between limited-service and full-service hotels? Why do these differences exist?

2. How does franchising work in the lodging industry? When should a hotel consider becoming a part of a franchise? Explain your answer. Is franchising a successful strategy for all hotels? Why or why not?

Solution Preview

Among the lodging classifications are hotels, resorts, suites, motels, economy motels, and inns.

Hotels are usually interior access to rooms and have different levels of guest rooms. Some have common areas with restaurants, meeting rooms and offer room service. Lobbies have employees 24 hours a day. A Marriot or Ritz would qualify as Hotels. Some hotels have limited services. They still have interior access to rooms, elevators, and lobbies.

Motels are usually outside access, have limited services and have limited common areas. There are no services for food, including room service. Motel 6 and some EconoLodges are good examples. There are seldom 24 hour manned lobbies.

Resorts are ...

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