Turism

1. The U.S. Hotel Industry:
Nature & Evolution
From 1900 to 2000:
A Century of Innovation & Change
Dr. Oscar Aguer

2. Areas of Focus
• The numbers
• The benchmarks
• The players
• The consolidation
• The conclusions
• The conclusion (of the conclusions)

3. Rate and Occupancy
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10
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30
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50
60
70
80
90
2000 1990 1980 1970 1960 1950 1940 1930 1920
Occupancy
Rate

4. Room Inventory Impact
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20
30
40
50
60
70
2000 1990 1980 1970 1960
Occupancy
Rate
# Rooms

5. Hotel Traveler Expenditure: 2000
0
10
20
30
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50
60
70
80
Leisure Business
Travel
Room
Food
Entertain
Misc

6. The 1900’s
• 1900 - The Lenox Hotel offered “fireproof lodging,
unexcelled cuisine, a shower bath, and roof garden”, all for
$2.00.
• 1904 – New York City’s St. Regis provides individually
controlled heating and cooling units in each guestrooms.
• 1908 – Gideons International places their first Bible in the
Superior Hotel in Montana
• 1908 – The Hotel Statler chain begins in Buffalo. All
rooms have private baths, full-lenght mirrors, phones,
built-in radios: The model for the next 40 years.

8. The 1910’s
• 1910 – The industry consists entirely of hotels located in
urban centers and few resorts near the principal vacation
destinations.
• 1912 – Electricity is being installed in new hotels for
cooking purposes. Most hotels still place candles and
matchboxes in every rooms.
• 1919 – A Mr. Conrad Hilton purchases his first hotel, The
Mobley in Cisco, Texas.
• During that decade, the number of hotels is 10,000 and the
average size is 60-75 rooms.

10. The 1920’s
• 1920 – Prohibition begins. Occupancy reaches 85%
• 1922 – The first management contract is signed by the
Treadway Company on small college inns.
• 1925 – The first roadside “motel” opens in San Luis
Obispo, Calif, for $2.50 a night.
• 1929 – Western Hotels, now Westin, starts with 17 hotels
in the Pacific Northwest and establishes the first hotel
management company.
• During that decade the hotel construction reaches an all-
time peak, fueled by the state and federal highway
program, and the developing automobile industry.

12. The 1930’s
• 1930 – Four out of five hotels go into bankrupcy.
• 1933 – Due to the Great Depression, hotels post the lowest
occupancy ever: 51%. Construction stops.

14. The 1940’s
• 1940 – Air conditionning becomes prevalent
• 1945 – Sheraton becomes the first chain listed on the
NYSE. Travelodge is the first economy concept.
• 1946 – Westin introduces the the first guest credit card.
Occupancy reaches all-time high of 93%. First casino
hotel opens: The Flamingo in Las Vegas. The first Loews
hotel comes to the market: Laurel-in-the-Pines, N.J.
• 1947 - Westin introduces the first hotel reservation system.
The Roosevelt installs TVs in every rooms.
• 1949 - Hilton becomes the first international chain with
the Caribe Hilton in San Juan.

16. The 1950’s
• 1952 – A Mr. Kemmons Wilson opens his first Holliday
Inn in Memphis, Tenn, named after a Bing Crosby movie.
• 1954 – A Mr. Howard Dearing Johnson initiates the first
lodging franchise, a motor lodge in Savannah, Georgia.
Conrad Hilton buys the Statler for $111 M, the largest
hotel transaction to that date.
• 1957 – J.W. Marriott opens his first hotel, The Twin
Bridges Marriott Motor Hotel in Arlington, VA, and Jay
Pritzker buys his first hotel, The Hyatt House, near the
L.A. airport. Hilton offers direct-dial phone service.
• 1958 – First electronic reservation system by Sheraton.

18. The 1960’s
• 1960 – First mini bar in guestrooms at the Siegas chain.
• 1962 - Motel 6, forerunner of the budget brand opens in
Santa Barbara, Calif.
• 1964 – Travelodge offer wheelchair-accessible rooms.
• 1967 – The Atlanta Hyatt Regency opens, featuring a 21-
story atrium and changing the course of upscale hotel
design.
• 1968 – Westin introduces the first 24-hour room service
concept in all its hotels.

20. The 1970’s
• 1973 – The Sheraton Anaheim is the first to offer free in-
room movies
• 1974 – The energy crisis hits the industry. Hotels ask
guests to save electricity and cut heat to unoccupied rooms.
• 1975 – Four Seasons is the first chain to offer brand name
bathroom amenities. Hyatt introduces its Regency Club,
the first concierge level proposing ultimate VIP service.

22. The 1980’s
• 1983 – Westin accepts reservation and express check out
with major credit cards. Vingcard is invented: the first
optical electronic keycard
• 1984 – Choice hotels offers non-smoking rooms. Holliday
Inn starts the first nationwide all-suite hotel chain.
• 1988 – The extended stay concept is introduced by
Marriott with Residence Inns, and Holliday Corp with
Homewood Suites.
• 1989 – Hyatt introduces the first kids program “Camp
Hyatt”, and Hampton Inns offers “100% guaranteed
satisfaction, or your money back!”.

24. The 1990’s
• 1990 – Loews “Good Neighbors” policy becomes the first
comprehensive community program.
• 1991 – Westin is first to offer voice mail in all guestrooms.
Industry looses a record 61.8% of revenue. (recession and
overbuilding).
• 1992 – Industry breaks even after 6 years of consecutive
losses. Radisson began offering the first “business class”
rooms.
• 1994 – Hyatt and Promus are the first chains to establish a
web site on the Internet.
• 1995 – Choice and Holliday Inn offer online reservations.
• 1999 – Starwood creates the “W” boutique brand.

26. ...and in the 2000’s
• 2000 – Hilton Hotels announces plans for the first
hotel in space.
• 2002 – Precisely on January 1st, at 9:04 AM, in Barcelona, Catalonia,
Spain, (waking up E.B, O.A, and J.C.P from their New Year’s Eve parties),
Jacques M. Bourgeois joins forces with THR (or vice-versa!?) to develop the
newly created “Advanced Hotel & Resorts Management” Division.....OK! on to the next
slide!!

27. The Big Players...then: Fifty two
Days Inns . Ramada . Super 8 Motels. Howard Johnson. Travelodge.
Knights Inns. Wingates Inns. Villager Inns. AmeriHost. Holiday Inn.
Holiday Inn Express. Crowne Plaza. Inter-Continental. Holiday
Select. Holiday Garden Court. Holiday Sunspree. Forum Hotels.
Staybridge Suites. Marriott hotels, resorts, suites. Ritz Carlton.
Courtyard. Renaissance. Stouffer. Fairfields. Residence Inns.
Townplace Inns. Spring Hills Suites. Comfort Inns. Quality Inns.
Econolodge. Clarion Hotels. Flag hotels. Sleep Inns. Rodeway Inns.
MainStay Suites. Friendship Inns. Royal Inns. Hampton Inns. Hilton
Hotels. Doubletree. Embassy Suites. Garden Inns. Homewood Inns.
Red Lion. Conrad Intl. Sheraton. Westin. Four Points Hotels. St.
Regis Collection. W Hotels. Hyatt Hotels & resorts Intl. Four
Seasons.

28. The Big Players...now: Eight
Days Inns . Ramada . Super 8 Motels. Howard Johnson. Travelodge.
Knights Inns. Wingates Inns. Villager Inns. AmeriHost. Holiday Inn.
Holiday Inn Express. Crowne Plaza. Inter-Continental. Holiday
Select. Holiday Garden Court. Holiday Sunspree. Forum Hotels.
Staybridge Suites. Marriott hotels, resorts, suites. Ritz Carlton.
Courtyard. Renaissance. Stouffer. Fairfields. Residence Inns.
Townplace Inns. Spring Hills Suites. Comfort Inns. Quality Inns.
Econolodge. Clarion Hotels. Flag hotels. Sleep Inns. Rodeway Inns.
MainStay Suites. Friendship Inns. Royal Inns. Hampton Inns. Hilton
Hotels. Doubletree. Embassy Suites. Garden Inns. Homewood Inns.
Red Lion. Conrad Intl. Sheraton. Westin. Four Points Hotels. St.
Regis Collection. W Hotels. Hyatt Hotels & resorts Intl. Four
Seasons.

29. The Consolidation
Cendant
6,540 hotels
555,000 rm
6Continents
3,030 hotels
481,482 rm
Marriott
2,084 hotels
384,010 rm
Choice
4,219 hotels
337,226 rm
Hilton
1,910 hotels
333,110 rm
Starwood
713 hotels
217,651 rm
Hyatt
190 hotels
87,234 rm
4 Seasons
53 hotels
15,048 rm

30. The conclusions
Individual Group Chain Flag Brand
Local Regional National International Global
Homy Hospitality Convenience Experience Commodity
Reality New reality Newer reality Newest reality Brandnew real

31. The Conclusion
(...of the conclusions)
and so, ...
THE ONLY CONSTANT IS CHANGE
my THR friends