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Chapter 10. Hotel and Lodging Operations. LODGING OPERATIONS. This module will focus on the function and operation of hotels. Although hotels range in size from under 100 rooms to over 5,000 rooms, functions remain essentially the same
Chapter 10

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Chapter 10Slide 1

Chapter 10

Hotel and Lodging Operations

Lodging operationsSlide 2


  • This module will focus on the function and operation of hotels. Although hotels range in size from under 100 rooms to over 5,000 rooms, functions remain essentially the same

  • Size does affect how responsibilities are separated however (and staffing)

  • Hotels are generally divided into three major functional areas

Hotel operationsSlide 3


  • Rooms Division

    • Includes Front Desk, Reservations, Uniform Services (Security, etc.), and Housekeeping

  • Food and Beverage department

    • Includes Restaurants, Bars, Banquets and Room Service

  • Staff and support departments

    • Includes Accounting, Engineering, Marketing, Human Resources and Contracted areas

Rooms divisionSlide 4


  • The Rooms Division is the heart of the hotel

  • It is the main business of the hotel and the main source of revenue

  • Rooms can contribute 70 percent or more to overall revenue and even more to profit

Rooms division1Slide 5


  • The Rooms Division is overseen by the Resident Manager (or Assistant General Manager) and various department heads

Rooms division2Slide 6


  • The center of activity in the Rooms Division is the Front Office

  • The Front Office is responsible for checking guests in, checking them out, securing payment, listening to complaints, communicating with other departments, determining room availability, and selling additional rooms, among other responsibilities

Rooms division3Slide 7


  • The Reservations department is responsible for taking reservations. Reservations can be made by the guest via other methods but many requests are still made through the hotel’s reservation department

  • Reservations must maintain contact with other departments as well as other reservations channels to be able to forecast available rooms

Rooms division4Slide 8


  • The Reservations department attempts to maximize (1) room rate and (2) occupancy rate

  • This is known as Yield Management – maximizing these two at any given time

  • Reservations departments must consider city wide events, competition, minimum stays, etc.

HousekeepingSlide 9


  • The essential requirement that guests have is to be able to check into a clean room

  • The Housekeeping Department is responsible for cleaning of guest rooms, stocking essential supplies and amenities, laundry (sometimes) and maintenance of public areas

  • Housekeeping is one of the largest departments in the hotel (up to 50 % of all employees)

Housekeeping1Slide 10


  • The Executive Housekeeper is the head of the department

  • He or she must be adept at scheduling, coordinating, managing people, etc. A primary responsibility is overseeing room attendants

  • Room Attendants are responsible for cleaning of individual guest rooms

  • Housekeepers work from a Rooms Report which provides them with the status of all guest rooms from which they can prioritize their work

Housekeeping2Slide 11


  • The Housekeeping Department must know at any given time, the occupancy of the hotel, the number of guests checking in, the number of guests checking out, the number of guests staying over, late check-outs, etc.

  • Rooms can take as little as 20 minutes or as much as 1 hour to clean and prepare for the next guest

  • Check-in and Check-out times are based in large part on the time it takes to clean a room

Uniformed servicesSlide 12


  • The Uniformed Services Department is another important department in the Rooms Division of a hotel

  • It consists of the Bell Staff, Valet, Security and Concierge

  • The bell staff assists with luggage, acts as an escort and answers questions

  • The valet assists with parking

Uniformed services1Slide 13


  • The Concierge is the resident expert in activities, events, restaurants and attractions

  • The position of Concierge is becoming more important as hotels try to offer a higher level of guest services

  • There is an international association for concierges (Les Chefs d’Or)

  • Sometimes this responsibility falls to the bell staff or the front desk clerks in smaller hotels

SecuritySlide 14


  • This department as well is becoming more important

  • Crime is increasing in many areas, particularly downtown areas

  • Hotels are required to provide “reasonable care” of their guests which includes general security, locks and lighting and security of guest belongings

Security1Slide 15


  • New security measures that have been introduced in recent years include:

    • In-room safes

    • Keyless locks (with magstrips)

    • Tighter security at the front desk

    • Redesigned hotels where guests (and others) must pass through the lobby

Food and beverageSlide 16


  • The Food and Beverage department can contribute 15 to 20 percent of overall revenue

  • It should be a profit center but does not always make money for the hotel

  • This department is headed up by a Food and Beverage Manager who oversees both Front-of-the-House and Back-of-the-House functions

Food and beverage1Slide 17


  • Banquets – are often profitable for hotels. Can support meetings and conferences or outside functions

  • Restaurants – hotels are changing their views of their restaurants. Some are limiting what they offer and others are outsourcing

  • Bars, room service, food production, stewarding are other areas

Staff and support departmentsSlide 18


  • Sales and Marketing

    • Responsible for “creating customers”

    • Largely revolves around selling “blocks” of rooms

    • Can be a large department in convention hotels specialized by market

  • Accounting

    • Role is moving beyond just bookkeeping

    • Includes overseeing the “house ledger” and the “city ledger”

    • Also, includes the night audit

Staff and support departments1Slide 19


  • Human Resources

    • Labor intensive industry requires progressive H/R

    • Responsibilities include supporting line departments in all H/R related activities (hiring and recruiting, training, staffing, etc.)

  • Engineering

    • Oversees Heating, Cooling, Water, Lighting, Telecommunications, Energy Management, Electric, other

Financial managementSlide 20


  • Income and Expenses

  • Revenue and profit

  • Changes in income and expenses over time

  • Outsourcing as a strategy to cut costs

  • Cost of maintaining a hotel

Key operating ratiosSlide 21


  • Occupancy percentage =

    Rooms sold ÷ Total rooms available

    • Example: 500 room hotel sells 300 rooms

  • Average rate =

    Dollar sales ÷ Number of rooms sold

    • Example: $18,000 in sales

Key operating ratios1Slide 22


  • Number of guests per occupied room = Number of guests ÷ Number of occupied rooms

  • Revpar – revenue per available room = Rooms revenue ÷ Available rooms or Paid occupancy percentage * ADR (Average Daily Rate)

  • Average rooms cleaned per room attendant day = Number of rooms occupied ÷ Number of eight-hour shifts

Career entry pointsSlide 23


  • Front office

  • Accounting

  • Sales and marketing

  • Food and beverage

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