A Brief History of the

Hotel Industry

Cyclical History Cyclical History of Early Hotel Industryof Early Hotel Industry

Roman Empire

(30 BC - 400 A.D)

Dark Ages

(400 - 500 )

Renaissance

(1300 - 1600)

Medieval

(500 - 1300)

History of Early Hotel History of Early Hotel IndustryIndustry

Sumerians (2500 BC) – “Houses of the go far people”

Code of Hammurabi (1792 - 1750 BC)

Hotel in Olympus for visitors to games (4th century BC)

Caravanseri (Persia 200 BC) Caravan “inn” or “Palace”

Fortified area that housed animals, goods, and travelers First true commercial “hotel”

History of Early Hotel History of Early Hotel IndustryIndustry

Roman Empire (265 BC – 400 AD) Religious & Military Travel Market Segmentation: Mansio to Taberna

China (250 BC – 100 AD) Post houses/hotels every 10 miles for nearly 300,000

miles

Monasteries (400 – 1300 AD)

Henry VIII Act of Supremacy (1534) Abolished monasteries; Inn keeping flourishes

History of Early Hotel History of Early Hotel IndustryIndustry

_______________ (1353) Guild of 235 Inn keepers

Travelers met at city gate and escorted to appropriate inn

England Ye Olde Fighting Cocks in St. Albans – Oldest Inn (800

AD)

London (1384) – Innkeepers were responsible for the behavior of their guests

Railway Hotels Built at every major terminal during the 19th century

Cyclical History of Cyclical History of Hotels in AmericaHotels in America

Early America (1600 - 1920)

Golden Age (1920’s)

Depression (1930’s)

WW II(1940’s)

Motel Age (1950’s)

Growth (1960 & 70)

Recession(1980’s)

Recovery (1990’s)WW I

(1910’s)

9-11

Firsts in AmericaFirsts in America

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

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

The Tremont House (1829) – First luxury class hotel Private rooms with locks on the door

___________________ (1908) – First modern hotel Slogan: “A room and a bath for a dollar and a half”

Early taverns were unofficial City Halls The Queens Head – Plotted the Boston Tea Party

Innovators & LeadersInnovators & Leaders

Fred Harvey (1876) • Harvey House Hotels

Ellsworth M. Statler (1908) – Buffalo Statler Hotel• Father of American Hotel Industry

Conrad Hilton (1919)• Banker’s Mentality

Kemmons Wilson (1952)• Holiday Inns

History of American HotelsHistory 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

1950’s - Growth of Motel Chains

Reasons for increased travel after WW II:1. Pent-up Demand2. Transportation Improvements

Interstate Highway Act of 19563. Desire to Travel4. _______________

1960’s - Growth of Hotel Chains Hyatt, Howard Johnsons, Marriott

History of American History of American HotelsHotels

1970’s - Growth of Franchising• Market Segmentation

1980’s - Prosperity & Recession• Product Segmentation & Over Expansion

1990’s - Recovery• Expanding Markets & Mergers

Sept. 11, 2001 - Major Decrease

Recovery began in 2004

History of American History of American HotelsHotels

Growth of hotel industry Leisure and pleasure concept Discretionary income Family size/household size Business travel

Classification of hotels On the basis of standards:

One star: a low budget hotel with limited facilities, offering accommodation and food and characterized by informal standards of service

Two stars: an economy market hotel offering moderate services along with accommodation and food

Three stars: