Summary: Room Devision & Spa Operations

Read the summary and the most important questions on Room devision & Spa operations

• 1 Hotel Management

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• What if a hotel is managed by an owner or a hotel company owner?

  • OWNER: Involved in the day-to-day operations, and free to make all the decisions without any corporate policy or procedures. + financial resources. If things don't go well, the owner might face financial loss. 
    

  
  

  • COMPANY OWNER: They are responsible for managing the property. The management company provides supervision, direction, and expertise by taking over the operations of the hotel for a fee called royatties. (The hotel owner doesn't need to be involved in the day-to-day operation of running a hotel, but the hotel owner remains responsable for the financial and legal aspects of the property). 

• What is an Hotel Management Agreement (HMA)?

  Is an agreement that the owner of the hotel signs and with that transfers the rights form the owner to the hotel management company to make all the operational decisions such as hiring employs and paying expenses.

• What is a franchise contract?

  Is a commercial and legal agreement between a franchisee (Hotel owner) and a franchisor (p.ex. Mariott). It gives the franchisee the right to use the franchisor's brand and business model for a fixed period of time.

• 2 Independent and chain hotels

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• What is an independent hotel?

  • It don't belong to a group or a chain --> there is no brand associated with such establishments.
    
  • The owner makes all the decisions regarding policies, procedures, marketing and finance
  • The owner doesn't need to conform to any corporate policy or procedures 

• What are the pros of an independent hotel?

  1. Autonomy
     
  2. Freedom to make decisions, with allows for a more personalized service
  3. Creativity, original design and unique experiences
  4. Changes can happen quite quickly because there os not many hierarchical layers to go trough
  5. Adaptation, flexibility and agility

• What are the cons of an independent hotel?

  1. This hotels carry the full financial responsibility of the establishment and also the expenses for the promotions, marketing and communication 
  2. More difficult to be visible on social and booking platform 

• What is a chain hotel?

  There are 2 structures for chain hotels: 
  

  1. The chain-affiliated hotels
  2. Referral chains or groups

• What is a chain-affiliated hotel?

  • P.ex. Hotel groups, such as Marriott international or Accor, own hotel chains
  • Chain-affiliated hotels are owned by a centralized managementbelonging to the same holding company
  • The management models can vary accordingto the owners’ operational objectives and can take one of two forms:Either a management contract or a franchise contract.

• What is a referral chain or group?

  • Referral chains consist of independent hotels that come together for a common purpose.
  • Management and financial obligations remain independentbut a few commonalities are agreed upon,such as level of service for instance

• What are the pros of a chain hotel?

  • Reservations support
    
  • Training for the employees
  • Marketing compaigns
  • Guest loyalty programs
  • Brand standards
  • Consulting support
  • Quality assurance and standards to follow provide very clear guidanceon how to run daily operations,where the responsibility of managing the establishment lies solely with the chain hotel
    
  • being part of the chain opens up access to more customersand better negotiating power against major booking platforms