Analysis of Accommodation Services: Marriott Hotels Report - HND

This report provides an overview of accommodation services, focusing on the UK hotel market and the performance of London hotels from 2012-2016, as well as a detailed analysis of Marriott Hotels. It explores the scale and size of the accommodation services, including occupancy rates, AARR, and rooms yield. The report delves into the performance by hotel category segment, including deluxe, superior deluxe, and business class, and mid-market rooms yield growth. It further examines different forms of ownership, such as sole proprietorship and partnerships, and various purchase options, like family loans and franchises. The report also covers classification systems, essential and luxury facilities, and the organization of front office functions, including reservation, reception, and concierge services. Key roles within the front office department, such as front office manager and reservation manager, are also discussed. The report concludes that accommodation is essential to the hospitality sector, providing services that ensure customer comfort and convenience.

Managing Accommodation
Services (Part-1)

Introduction
•Accommodation services refers for providing facilities of housing on temporary
basis along with it's services like hotels, schools, banking, medical practices and
other.
•Marriott is chosen organisation in the present report which is an American
multinational diversified hospitality company that manages and franchises a broad
portfolio of hotels and related lodging facilities

The scale and size of the accommodation services
UK Hotels CAGR
2012 2013 2014 201
5
2016
Occupancy 74.4 76.5 77.6 78.4 77.8
Year-on-year growth (%) 2.80% 1.40% 1.00
%
-0.80% 1.1
AARR 89.22 88.8 91.55 95.8 97.28
Year-on-year growth (%) -0.50% 3.10% 4.60
%
1.50% 2.2
Rooms Yield 66.4 67.96 71.03 75.0
8
75.64

Continue…
In 2016, the output of daily rooms of UK
raised by 0.8% to £75.64. The marginal
growth of the hotel in the UK decreases by
0.8% to 77.8% and AARR has been
increased by 5% to £97.28.

Summary performance of London Hotels for the year
2012-2016.
London Hotels CAGR %(2012-2016)
2012 2013 2014 2015 201
6
Occupancy 81.4 82.8 82.6 82.8 81.
6
0.1
Year-on-year growth (%) 1.80% -0.20% 0.20% -
1.4
0%
AARR 89.22 88.8 91.55 149.7 151
.45
0.5
Year-on-year growth (%) -0.80% 0.90% 0.90% 1.1
0%
Rooms Yield 120.65 121.75 122.61 124 123

Continue…
In 2016, the performance level of London Hotels had remain
flat. Tenancy which was affected by the continuous influx of
new supply has been down by 1.4% to 81.6%, . AARR which
could not be raised the entire performance has the small
increase by 1.1% to £151.45, and results in the production of
rooms and the marginal growth has been down by 0.3% to
£123.58 (UK Hotel Market Statistics, 2018.)

Performance by hotel category segment
Segment (AARR) 2012 2013 2014 2015 2016
Deluxe (>£150) 4.50% 0.10% -1.80% 0.80% 1.60%
Superior deluxe (>£200) 5.90% 0.10% -3.30% -1.50% 4.10%
International deluxe (£150-200) 1.70% 0.40% 1.40% -0.80% 4.70%
First class (£100-150) 3.20% 1.90% 2.80% -2.30% 0.00%
Business class (£75-100) 1.10% 3.50% 4.10% 6.60% -14.00%
Tourist (<£75) -4.70% 1.70% 9.90% 7.50% -1.50%
Town house/boutique (>£100) 3.00% 2.00% -0.50% 4.10% 7.90%

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In 2016, the AARR growth of the hotel of all
over the UK has the positive impact as the
occupancy has also result of the inflow of new
supply, especially in London, UK.

Mid market rooms yield growth rate for regional
hotels
Rooms yield growth regional hotels
Segment(AARR) 2012 2013 2014 2015 2016
Country House
>£80 2.10% 6.00% 5.50% -0.90% 1.00%
£70-£80 0.20% 4.00% 8.40% 7.00% 4.70%
£60-£70 1.40% 3.80% 9.20% 5.90% 6.40%
£50-£60 2.20% 2.80% 10.70% 8.50% 7.70%
<£50 - 4.10% 5.00% 17.90% 14.00% 5.30%

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The market growth have drawn the positive
picture with all segments which was
experienced with the robust performance. The
mid-market segments has the highest growth
with the production of rooms by 7.7% for £50-
£60 hotels and raised by 6.4% for £60-£70
hotels.

Different Forms Of Ownership
Types of Ownership/ Purchase method Description Advantages Disadvantages
Sole Trader Sole Trader also known as sole
proprietorship, this is the one who runs
and owns the entire business. Sole
Trader are self-employed and are legally
responsible for all aspects of their
business and are personally liable for
their business finances.
Sole Traders maintain full control on
their business, without the interference
of others. They also retain all the profits
of their business.
Sole Traders often find it difficult to
raise finance to fund their business.
Also, the decision in the business are
made by the sole trader, so for the
success or failure of the business rests
only on one person.
Association A group of people having a common
purpose or interest. E.g.: a club or a
society
Associations arrange dinners and
special events for their members, giving
them chances to meet with their peers
and enjoy the company of fellow
entrepreneurs.
Members are individually and
personally responsible for any debts
incurred in the name of the association.
Partnership A formal arrangement in which two or
more parties cooperate to manage and
operate a business (Chiu and et. al.,
Two heads are better than one and the
business is easy to establish and start-up
costs are low.
In partnership, each partner is an agent
of the partnership and is liable for
actions by other partners.

Purchase Options
Purchase method Description Advantages Disadvantages
Family Loan Lending money to a family member
describes family loan.
One of the biggest advantages of
borrowing money from family is that
the one has to pay lower interest rate
than bank or credit union.
The major disadvantage of borrowing
money from family is that the one can
damage close relationships.
Bank Loan A bank loan is the most common form
of loan capital for a business, which
provides medium or long-term finance.
Some of the advantage s are predictable
monthly payments, helps to build
business credits, built a relationship of
professional banker, and have very low
and fixed interest rates.
The major disadvantages of bank loan
are lengthy paperwork, longer waiting
time, and requires strong credit.
Franchise A franchise is a business opportunity
that allows the franchisee to start the
business by legally using someone else's
(the franchisor’s) ideas, and processes.
Franchises have a higher rate of success
than start-up businesses.
Bad performances by other franchisees
may affect your franchise's reputation.