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A Brief History of the Hotel Industry. Cyclical History of Early Hotel Industry. Roman Empire (30 BC - 400 A.D). Medieval (500 - 1300). Renaissance (1300 - 1600). Dark Ages (400 - 500 ). History of Early Hotel Industry. Code of Hammurabi (1800 BC)

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Cyclical History of Early Hotel Industry

Roman Empire

(30 BC - 400 A.D)

Medieval

(500 - 1300)

Renaissance

(1300 - 1600)

Dark Ages

(400 - 500 )


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History of Early Hotel Industry

  • Code of Hammurabi (1800 BC)

  • Roman Empire - Religious & Military Travel

  • Dark Ages - Fall of Roman Empire

  • Medieval - Churches

  • Renaissance - Henry VIII abolished monasteries, Innkeeping flourished


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Growth

(1960 - 1970)

Golden Age

(1920’s)

Motel Age

(1950’s)

WW I

(1910’s)

Recovery

(1990’s)

WW II

(1940’s)

Recession

(1980’s)

Early America

(1600 - 1920)

Depression

(1930’s)

Cyclical History of Hotels in America


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History of American Hotels

1634 - First Inn - “Coles Ordinary” - Boston, MA

1794 - First Hotel - “City Hotel” - New York City

Innovations:

  • The Tremont House (1829)

  • The Country Club (1882)

  • Buffalo Statler (1908)


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Innovators & Leaders

Fred Harvey (1876)

  • Harvey House Hotels

    Ellsworth M. Statler (1908)

  • Father of American Hotel Industry

    Conrad Hilton (1919)

  • Banker’s Mentality

    Kemmons Wilson (1952)

  • Holiday Inns


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History of American Hotels

1920’s - Golden Age of Hotels

  • Unprecedented Building and Occupancy

    1930’s - Great Depression

  • 85% of hotels in receivership or liquidation

    1940’s - World War II

  • No materials for expansion; 93% occupancy


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History of American Hotels

1950’s - Growth of Motel Chains

Reasons for increased travel after WW II:

1. Pent-up Demand

2. Transportation Improvements

  • Interstate Highway Act of 1956

    3. Desire to Travel

    4. Two-income Family

    1960’s - Growth of Hotel Chains

  • Hyatt, Howard Johnsons, Marriott


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    History of American Hotels

    1970’s - Growth of Franchising

    • Market Segmentation

      1980’s - Prosperity & Recession

    • Product Segmentation & Over Expansion

      1990’s - Recovery

    • Expanding Markets

      2000 - New Opportunities


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    Cyclical History of Las Vegas

    Howard Hughes

    (1967)

    Mega-Resorts

    (1990’s)

    Flamingo

    (1946)

    Glitter Gulch

    (1931 - 1946)

    The Mob

    (1940’s - 1970’s)

    Corporate Control

    (1980’s)

    Wide Open

    Gambling Act

    (1931)


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    Las Vegas History

    1931 - Wide Open Gambling Act

    1941 - El Rancho Vegas

    • Jim Cashman & Tommy Hull

      1946 - Fabulous Flamingo

    • Bugsy Siegel

      1967 - Howard Hughes

      1980’s - Corporate Control

    • MGM, Hilton, Mirage

      1990’s - Mega-Resorts


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    Leaders in Las Vegas

    Bugsy Segal – Flamingo

    • Dangerous, ruthless, wild, psychopathic

      Benny Binion – Horseshoe

    • Loud, coarse, rude

    • “Even in a dean of thieves & murderers, he lacked class”

      Steve Wynn – Mirage

    • Erupts in anger & verbally accosts subordinates

    • “Thousand watt smile that oozes charm”