HADM 1350 Lecture Notes - Lecture 3: Real Estate Investment Trust, Management System, Host Hotels & Resorts

• School: Cornell University
• Department: Hotel Administration
• Course: HADM 1350
• Professor: Reneta Mc Carthy

Document Summary

Departments of the hotel: front desk, public brand exchange (pbx telephone operator, housekeeping, human resources, controller, sales, f & b outlet, banquets. Types of guest: (business, leisure, group)/ (transient, contract, group) Pms and rm help to forecast and avoid overbooking. There are 52000 hotels in the us = 163 billion in sales: chain vs independent outside of the us is 30:70, in us, it"s 70:30. 57% of total room supply is by the top nine companies. 3 ways to earn revenue: ownership (highest capital rist with greatest reward), management (less capital intensive, more brand distribution, franchises (more brand distribution, less control of operation) 3 main elements of hotels real estate, brand, management. Reit (real estatement investment trust) publicly traded company, leases its owned hotel"s assets, exempt from corporate infcome tax. Host marriot converted from c-corp to reit, changed its name to host. Payroll is the largest expense of hotel.