Hotels can avoid overselling overbooking rooms by using a

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C h a p t e r 3

rooms Division

L E A r N i N G o B J E C T i V E S

after reading and studying this chapter, you should be able to:

• Outline the duties and responsibilities of key executives and department heads.

• Draw an organizational chart of the rooms division of a hotel and identify the executive committee members.

• Describe the main functions of the rooms division departments.

• Describe property management systems and discuss yield management.

• Calculate occupancy percentages, average daily rates, and actual percentage of potential rooms revenue.

• Outline the importance of the reservations and guest services functions.

• List the complexities and challenges of the concierge, housekeeping, and security/loss prevention departments.

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134 Part i Introducing hospitality and Lodging

This chapter examines the function of a hotel and the many departments that constitute a hotel. It also helps to explain why and how the departments are interdependent in successfully running a hotel.

the Functions and Departments of a hotel the primary function of a hotel is to provide lodging accommodation. a large hotel is run by a general manager (GM) and an executive committee that consists of the key executives who head the major departments: rooms division director, food and beverage (F&B) director, marketing and sales director, human resources director, chief accountant or controller, and chief engineer or facility manager. these executives generally have a regional or corporate counterpart with whom they have a reporting relationship, al- though the general manager is their immediate superior.

a hotel is made up of several businesses or revenue centers and cost cen- ters. a few thousand products and services are sold every day. each area of specialty requires dedication and a quality commitment for each department to get little things right all the time. Furthermore, hotels need the cooperation of a large and diverse group of people to perform well. James McManemon, the GM of the elegant ritz-Carlton, Sarasota hotel, calls it “a business of details.”1

hotels are places of glamour that may be awe-inspiring. even the experi- enced hotel person is impressed by the refined dignity of a beautiful hotel like a ritz-Carlton or the artistic splendor of a hyatt. the atmosphere of a hotel is stimulating to a hospitality student. Let us step into an imaginary hotel to feel the excitement and become a part of the rush that is similar to show business, for a hotel is live theater and the GM is the director of the cast of players.

hotels, whether they are chain affiliated or independent properties, exist to serve and enrich society and at the same time make a profit for the owners. Frequently, hotels are just like pieces of property on a Mo- nopoly board. they often make or lose more money with equity appreciation or deprecia- tion than through operations. hotels have been described as “people palaces.” Some are cer- tainly palatial, and others are more functional. hotels are meant to provide all the comforts of home to those away from home.

Management Structure Management structure differs among larger, midscale, and smaller properties. the mid- scale and smaller properties are less com- plex in their management structures than are the larger ones. however, someone must be

LearnInG OBJeCtIve 1 Outline the duties and responsibilities of key executives and department heads.

The Grand Hall in the Willard InterContinental, Washington, D.C. It was at this hotel that the term lobbyist was coined when then-President Grant would retire after dinner to an armchair in the lobby. People would approach him and try to gain his support for their causes.

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responsible for each of the key result areas that make the operation suc- cessful. For example, a small property may not have a director of human resources, but each department head will have general day-to-day operating responsibilities for the human resources function. The manager has the ulti- mate responsibility for all human resources decisions. The same scenario is possible with each of the following areas: engineering and maintenance, ac- counting and finance, marketing and sales, food and beverage management, and so on.

Role of the Hotel General Manager Hotel general managers have a lot of responsibilities. They must provide owners with a reasonable return on investment, keep guests satisfied and re- turning, and keep employees happy. This may seem easy, but because there are so many interpersonal transactions and because hotels are open every day, all day, the complexities of operating become challenges that the gen- eral manager must face and overcome. The GM not only focuses on leading and operating the hotel departments but also on aspects of the infrastruc- ture, from room atmosphere to security.

Larger hotels can be more impersonal. Here, the general manager may only meet and greet a few VIPs. In the smaller property, it is easier—though no less important—for the GM to become acquainted with guests to ensure that their stay is memorable and to secure their return. One way that experi- enced GMs can meet guests, even in large hotels, is to be visible in the lobby and F&B outlets at peak times (checkout, lunch, check-in, and dinner time). Guests like to feel that the GM takes a personal interest in their well-being. Max Blouet, who was general manager of the famous Four Seasons Hotel George V, Paris for more than 30 years, was a master of this art. He was always present at the right moment to meet and greet guests during the lunch hour and at the evening check-in. Great hoteliers always remember they are hosts.

The GM is ultimately responsible for the performance of the hotel and the employees. The GM is the leader of the hotel. As such, she or he is held accountable for the hotel’s level of profitability by the corporation or owners.

To be successful, GMs need to have a broad range of personal quali- ties. Among those most often quoted by GMs are the following:

• Leadership

• Attention to detail

• Follow-through—getting the job done

• People skills

• Patience

• Ability to delegate effectively

A general manager discussing the “forecast” with a rooms division director.

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136 Part i Introducing hospitality and Lodging

a successful GM selects and trains the best people. a former GM of Four Seasons hotel Chicago deliberately hired division heads who knew more about the job for which they were hired than he did. the GM sets the tone— a structure of excellence—and others try to match it. Once the structure is in place, each employee works to define the hotel’s commitment to excellence. General managers need to understand, empathize, and allow for the cultures of both guests and employees. progressive general managers empower as- sociates to do anything legal to delight the guest.

Cesar Ritz was a legend in his own time; like so many of the early industry leaders, he began at the bottom and worked his way up through the ranks. In his case, it did not take long to reach the top because he quickly learned the secrets of success in the hotel business. His career began as an ap- prenticed hotel keeper at the age of 15. At 19, he was managing a Parisian restaurant. Suddenly, he quit that position to become an assistant waiter at the famous Voisin restaurant. There he learned how to pander to the rich and famous. In fact, he became so adept at taking care of the guests— remembering their likes and dislikes, even their idiosyncrasies—that a guest would ask for him and would only be served by him.

At the age of 22, Ritz became manager of the Grand Hotel National in Lucerne, Switzerland, one of the most luxurious hotels in the world. The hotel was not very successful at the time he became manager, but Ritz, with his ingenuity and panache, was able to attract the “in” crowd to complete a turnaround. After 11 seasons, he accepted a bigger challenge at The Savoy Hotel in London, which

had been open only a few months and which was not doing well. Cesar Ritz became manager of one of the most famous and luxurious hotels in the world at the age of 38.

Once again, the flair and ability of Ritz to influence society quickly made a positive impression on the hotel. To begin with, he made the hotel a cultural center for high society. Together with Escoffier as executive chef, he created a team that produced the finest cuisine in Europe in the most elegant of surroundings. He made evening dress compulsory and introduced orchestras to the restaurants. Cesar Ritz would spare no expense to create the lavish effect he sought. On one occasion, he converted a riverside restaurant into a Venetian waterway, complete with small gondolas and gondoliers singing Italian love songs.2

Both Ritz and Escoffier were dismissed from the Savoy in 1897. Ritz was implicated in the disappearance of over 3,400 pounds of wine and spirits.3 In 1898, Ritz opened the celebrated Hôtel Ritz in the Place Vendôme, Paris, France. The Hotel Ritz in Madrid, Spain, opened in 1910, inspired by King Alfonso XIII’s desire to build a luxury hotel to rival the Ritz in Paris. Ritz enjoyed a long partnership with Escoffier, the famous French chef and father of modern French cooking.4

Ritz considered the handling of people as the most important of all qualities for an hotelier. His imagination and sensitivity to people and their wants contributed to a new standard of hotel keeping. The Ritz name remains synonymous with refined, elegant hotels and service.5 However, Ritz drove himself to the point of exhaustion, and at age 52, he suffered a nervous breakdown. This is a lesson for us not to drive ourselves to the point of exhaustion.

i n t r O d u c i n g c e s a r r i t z

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chapter 3 rooms Division 137

the executive committee the general manager, using input from the executive committee (Figure 3–1), makes all the major decisions affecting the hotel. this committee, which includes the directors of human resources, food and beverage, rooms divi- sion, marketing and sales, engineering, and accounting, compile the hotel’s occupancy forecast together with all revenues and expenses to make up the budget. they generally meet once a week for one or two hours—although the ritz-Carlton has a daily lineup at 9 a.m.—and might typically cover some of the following topics:

• Guest satisfaction

• employee satisfaction

• total quality management

• Occupancy forecasts

• Sales and marketing plans

• training

• Major items of expenditure

• renovations

• Ownership relations

• energy conservation

• recycling

• new legislation

• profitability

Some GMs rely on input from the executive committee more than others do, depending on their leadership and management style. these senior ex- ecutives determine the character of the property and decide on the missions, goals, and objectives of the hotel. For a chain hotel, this will be in harmony with the corporate mission.

In most hotels, the executive committee is involved with the decisions, but the ultimate responsibility and authority rest with the GM. One major role of the committee is that of communicator, both up and down the line of author- ity. this helps build interdepartmental cooperation. not all lodging operations will have an executive committee—obviously there is no need for one at a small motel, lodge, or a bed and breakfast (B&B).

LearnInG OBJeCtIve 2 Draw an organizational chart of the rooms division of a hotel and identify the executive committee members.

Figure 3–1 • Executive Committee Chart.

Executive Committee Chart for a 300-plus-room Full Service Hotel

General Manager

Director of Human Resources

Director of Food and Beverage

Director of Rooms Division

Director of Marketing and Sales

Director of Engineering

Director of Accounting

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138 Part i Introducing hospitality and Lodging

▶ check Your Knowledge

1. What is the role of the general manager?

2. What topics do the members of an executive committee usually address in their weekly meetings?

the Departments In larger hotels, the rooms division has several departments that all work to- gether to please guests. In midsize and smaller properties, those departments may be reduced in size and number, but they still need to serve guests.

rooms division the rooms division director is held responsible by the GM for the efficient and effective leadership and operation of all the rooms division departments. they include concerns such as the following:

• Financial responsibility for rooms division

• employee satisfaction goals

• Guest satisfaction goals

• Guest services

• Guest relations

• Security

• Gift shop

the rooms division consists of the following departments: front office, reservations, housekeeping, concierge, guest services, security, and commu- nications. Figure 3–2 shows the organizational chart for a 300-plus-room ho- tel rooms division.

the guest cycle in Figure 3–3 shows a simplified sequence of events that takes place from the moment a guest calls to make a reservation until he or she checks out.

Front Office the front-office manager’s (FOM) main duty is to enhance guest services by constantly developing services to meet guest needs. an example of how some FOMs enhance guest services is to have a guest service associate (GSa) greet guests as they arrive at the hotel, escort them to the front desk, and then personally allocate the room and take the guest and luggage to the room. this innovative way of developing guest services looks at the operation from the guest’s perspective. there is no need to have separate departments for doorperson, bellperson, front desk, and so on. each guest associate is cross- trained in all aspects of greeting and rooming the guest. this is now being

LearnInG OBJeCtIve 3 Describe the main functions of the rooms division departments.

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chapter 3 rooms Division 139

Uniforms Supervisor

Laundry Sta

Laundry Manager

Contract Cleaning

Assistant Executive

Housekeeper

Floor Housekeeper

Business Communications Front Desk

Guest Services

Door Persons

Bell Persons Accounting

Reservations Concierge Cashiers

AM/PM Swing Shifts Night Audit

Group/ Convention Individual

Front O„ce Manager

Rooms Division Manager

Executive Housekeeper

HousemenHousekeepers

Security/ Loss Prevention

Figure 3–2 • Rooms Division Organizational Chart.

Arrival Registration (room assignment,

payment)

(More Guest Charges) Checkout

Confirmation

Rooming the Guest/Post

Guest Charges

Verification Night Audit Guest IncursCharges

Reservation

Figure 3–3 • The Guest Cycle.

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140 Part i Introducing hospitality and Lodging

done in smaller and midsized properties as well as at specialty and deluxe properties. Guest service associates are responsible for the front desk, con- cierge, communications/pBX (the term pBX is still widely used; it stands for private Brand exchange), bellpersons, valet, and reservations.

During an average day in a hotel—if there is such a thing—the front- office manager and his or her associates perform the following duties:

• Check night clerk report.

• review previous night’s occupancy.

• review previous night’s average rate.

• Look over market mix and determine what rooms to sell at what price.

• handle checkouts and check-ins.

• Check complimentary rooms.

• verify group rooms to be picked up for the next 30 days.

• review arrivals and departures for the day.

• politely and efficiently attend to guest inquiries.

• review the vIp list and prepare preregistration.

• Organize any room changes guests may request and follow up.

• arrange preregistrations for all arrivals.

• attend rooms divisions and operations meeting.

• advise housekeeping and room service of flowers/fruit for vIps.

• review arrivals and departures for the next day.

• Make staffing adjustments needed for arrivals and departures.

• note any important things in the log book.

• Check issuing and control of keys.

• review scheduling (done weekly).

• Meet with lead GSas (done daily).

In some hotels, the reservations manager and associates report to the di- rector of sales. these positions report to the chief accountant: night auditor, night audit associates, and cashiers.

the front office has been described as the hub or nerve center of the ho- tel. It is the department that makes a first impression on the guest and one that the guest relies on throughout his or her stay for information and ser- vice. positive first impressions are critical to the successful guest experience. Many guests arrive at the hotel after long, tiring trips. they want to be met by someone with a warm smile and a genuine greeting. If a guest should have a negative experience when checking into a hotel, he or she will be on guard in encounters with each of the other departments. the position description for a guest service agent details the work performed. position descriptions for the three main functions of the front office are as follows:

1. To sell rooms. the hotel departments’ personnel work like a team in a relay race. Sales or reservations staff make up room sales until the eve- ning before the guest’s arrival. at 6:00 p.m., when the reservations office

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closes, all the expected arrivals and available rooms are then handed over to the front desk p.m. shift. reservations calls after 6:00 p.m. may either be taken by the front-desk staff or the 1-800 number. the front-desk team will try to sell out (achieve 100 percent occu- pancy) by selling the remaining rooms to call-in or walk-in guests—and of course the frantic calls from preferred guests who need a favor!

Upselling occurs when the guest service agent/front-desk clerk sug- gestively sells the features of a larger room, a higher floor, or perhaps a bet- ter view. Yield management originated in the airline industry where demand also fluctuates. Basically, a percent- age of guests who book and send in a deposit in advance will be able to secure a room at a more reasonable price than can someone booking a room with just three days’ notice. the price will be even higher for the booking at three days’ notice if demand is good.

Many other factors influence the hotel’s ability to sell out. Chief among these are demand—the number of people needing rooms—and supply—the number of available rooms. a good example is the Interna- tional hotel, Motel + restaurant Show. this event takes place in a city that has a high demand for hotel rooms in proportion to its inventory (number of available rooms). Because there is a fairly constant demand for rooms in new York, special events tend to increase demand to a point that forces up room rates. (See Figure 3–4.) another example comes from the airline industry, which always seems to raise prices at the peak travel times (thanksgiving, Christmas, easter, and the summer vacation times). they only offer special fares when school is in session. revenue management is explained in more detail later in this chapter.

2. To maintain balanced guest accounts. this begins with advance depos- its, opening the guest folio (account), and posting all charges from the various departments. Most hotels have property management systems (PMS) (property management systems are explained in more detail later in this chapter) and point-of-sale (pOS) terminals, which are online to the front office.

this means that guest charges from the various outlets are directly debited to the guest’s folio. payment is either received on guest check- out or transferred to the city ledger (a special account for a company that has established credit with the hotel). this means that the account will be sent and paid within a specified time period.

3. To offer services such as handling mail, faxes, messages, and local and hotel information. people constantly approach the front desk with questions. Front-desk employees need to be knowledgeable about the

A front-office manager taking care of a guest request.

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142 Part i Introducing hospitality and Lodging

F O c u s O n r O O m s d i v i s i O n

rooms Division with Charlie adams

From the early days of primitive inns to our modern super hotels, like the Izmailovo Hotel with 7,500 rooms in Moscow, employees are the crucial ingredient to hotel or motel success. Even with extraordinary advances in technology and the globalization of lodging in the twenty-first century, lodging remains fundamentally a people business and it is the employees who are responsible for the appearance, image, and reputation of a lodging facility.

The rooms division is considered the “center” of hotel activity because it is accountable for rev- enue, customer service, and departmental forecasting. Room sales are the primary source of income for most hotels and almost 100 percent of the revenue for many select service or budget hotels. The rooms division has the most guest contacts because it is comprised of reservations, front office, housekeeping, and uniformed services. The reservations department provides the needed accurate information for other departments to use to forecast for upcoming events and guest needs along with scheduling the proper staffing levels in the hotel.

Starting your career in the rooms division of a hotel is an exciting, demanding, and rewarding experience. You will be part of a team whose overall responsibility is the well-being of guests and ensuring that their expecta- tions are met and that they have a memorable experience. As a rooms division employee you will be part of several interconnected functions that include: front desk, housekeeping, reservations, concierge, guest services, security, and communications. The following are some important tips for success in fulfilling the company’s promise to each guest:

Front Desk Here is where the first and last impressions are always made! At the front desk it is important to be personable, confident, and patient because your guests will vary in temperament, needs, and expectations. Always remember a friendly, calm, and positive attitude are your best tools even in trying situations. Multitask- ing becomes an art form at the front desk, calling upon all of your communication, typing, and computer skills.

Housekeeping Perception is reality and cleanliness is always at the top of a guest’s expectations. In house- keeping it is the attention to details, the eye for the out of place, the worn or frayed that keeps it real for guests. It is a demanding work area with much physical labor that is essential to guest satisfaction. Your work is done mostly behind the curtain, out of guest view, but noticed and appreciated when they enter to fresh towels, a made bed, and a flawlessly clean room. This is where you should start your lodging management career because it is the most demanding and least popular department among new hospitality graduates, and yet it is the best training ground for early lodging management success!

Reservations How do you convey a smile over the phone? You must do so as you begin the process of the guest cycle. Reservations calls for total command of the keyboard, awareness of hotel revenue goals, upcoming events, room availability, but above all listen, truly listen, to the guest so you can match their requests with the hotel’s services. The promise begins with you and you must never write a check that the front desk can’t cash at check-in.

Concierge A job that calls for diplomacy, ability to wheel-n-deal, and just a touch of magic. Your role is to accommodate the guest needs during their stay. It calls for an encyclopedic memory of restaurants, theater offerings, key points of interest, and current city events. The ability to develop a vast network of connections throughout the hospitality community in your area is essential to serve your guests and see to their every wish. Your reward as a successful concierge is that no two days are ever the same and there are always new and dif- ferent challenges, opportunities, and rewards.

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chapter 3 rooms Division 143

various activities in the hotel. the size, layout, and staffing of the front desk will vary with the size of the hotel. the front-desk staff size of a busy 800-room city center property will naturally differ from that of a country inn. the front desk is staffed throughout the 24 hours by three shifts. the evening shift duties include the following:

• Check the log book for special items. (the log book is kept by guest contact; associates at the front office note specific and important guest requests and occurrences such as requests for room switches or baby cribs.)

• Check on the room status, number of expected checkouts still to leave, and arrivals by double-checking registration cards and the computer so that they can update the forecast of the night’s

Guest Services Also referred to as uniformed services; consists of valet, doorperson, and bellperson positions. All jobs essential to first and last impressions set the tone for the quality of service. A congenial disposition that projects a true spirit of helpfulness will disarm any initial guest trepidation. It also calls for thorough comprehen- sion of the hotel, its layout, rooms, and amenities. It is work that demands immaculate grooming (especially the uniform), standing for long hours, and physical activity. In uniform, you are the hotel to the guest.

Major hotel chains o�er a number of di�erent room rates, including the following:

The rack rate is the rate that is used as a benchmark quotation of a hotel’s room rate. Let us assume that the Hotel California had a rack rate of $135. Any discounted rate may be o�ered at a percentage deduction from the rack rate. An example would be a corporate rate of $110, an association rate of $105, and AARP rate of $95—certain restrictions may apply. Group rates may range from $95 to $125 according to how much the hotel needs the business.

rack rate corporate association rate government encore cititravel entertainment cards AAA AARP (American Association of Retired Persons) wholesale group rates promotional special

AP/American Plan—room and three meals a day MAP/Modified American Plan—room plus two meals EP/European Plan—room only, meals extra

Throughout the world there are three main plans on which room rates are based:

Figure 3–4 • The Types of Room Rates Offered by Hotels.

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144 Part i Introducing hospitality and Lodging

occupancy. this will determine the number of rooms left to sell. nowadays, this is all part of the capability of the pMS.

• handle guest check-ins. this means notifying the appropriate staff of any special requests guests may have made (e.g., nonsmoking room or a long bed for an extra-tall guest).

• take reservations for that evening and future reservations after the reservations staff have left for the day.

night auditor a hotel is one of the few businesses that balances its accounts at the end of each business day. Because a hotel is open 24 hours every day, it is difficult to stop transactions at any given moment. the night auditor and his or her team wait until the hotel quiets down at about 1:00 a.m., and then begins the task of balancing the guests’ accounts receivable. the process of night audit- ing is as follows:

1. the night audit team runs a preliminary reconciliation report that shows the total revenue generated from room and tax, banquets and catering, food and beverage outlets, and other incidentals (phone, gift shop, etc.).

2. all errors on the report are investigated.

3. all changes are posted and balanced with the preliminary charges.

4. a comparison of charges is carried out, matching preliminary with actual charges.

5. totals for credit card charges, rooms operations, food and beverages, and incidentals are verified.

6. the team “rolls the date”—they go forward to the next day.

7. post any charges that the evening shift was not able to post.

8. pass discrepancies to shift managers in the morning. the room and tax charges are then posted to each folio and a new balance shown.

9. run backup reports so that if the computer system fails, the hotel will have up-to-date information to operate a manual system.

10. reconcile point-of-sale and pMS to guest accounts. If this does not bal- ance, the auditor must balance it by investigating errors or omissions. this is done by checking that every departmental charge shows up on guest folios.

11. Complete and distribute the daily report. this report details the previous day’s activities and includes vital information about the performance of the hotel.

12. Determine areas of the hotel where theft could potentially occur.

Larger hotels may have more than one night auditor, but in smaller properties these duties may be combined with night manager, desk, or night watchperson duties.

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c O r P O r a t e P r O F i L e

hyatt hotels

When Nicholas Pritzker emigrated with his family from the Ukraine to the United States, he began his career by opening a small law firm. His outstand- ing management skills led to the expansion of the law firm, turning it into a management company. Pritzker purchased the Hyatt House motel next to the Los Angeles International Airport in 1957.

Today, Hyatt is an international brand of hotels within the Hyatt Hotels Cor- poration, a multibillion-dollar hotel management and development company. It is among the leading chains in the hotel industry, with close to eight percent of the market share.6 Hyatt has earned worldwide fame as the leader in provid- ing luxury accommodations and high-quality service, targeting especially the business traveler, but strategically differentiating its properties and services to identify and market to a very diverse clientele. This differentiation has resulted in the following types of hotels:

1. Grand Hyatt features distinctive luxury hotels in major gateway cities. 2. The Hyatt Regency hotels represent the company’s core product. They

are usually located in business city centers and are often regarded as four- and five-star hotels.

3. Hyatt Resorts are vacation retreats. They are located in the world’s most desirable leisure destinations, offering the “ultimate escape from every- day stresses.”

4. The Park Hyatt hotels are smaller, European-style, luxury hotels. They target the individual traveler who prefers the privacy, personalized ser- vice, and discreet elegance of a small European hotel.

5. Hyatt Place locations are lifestyle 125- to 200-room properties located in urban, airport, and suburban areas. Signature features include The Gallery, which offers a coffee and wine bar and a 24/7 kitchen where travelers can find freshly prepared food.

6. Hyatt Zilara and Hyatt Ziva are all-inclusive luxury resorts that provide guests with unique experiences and entertainment options. Additionally, Hyatt Zilara offers guests adult-only lodgings for a relaxing kids-free getaway.

7. Hyatt House is an extended-stay brand of 125- to 200-room all-suite properties that provide the feel of a residency. Hyatt House offers a casual hospitality experience, and features complimentary break- fast with a build-your-own omelette station. Locations are urban, airport, and suburban.

8. Andaz is a casual, stylish, boutique-style hotel; each hotel reflects the unique cultural scene and spirit of the surrounding neighborhood.

9. Hyatt Residence Club offers vacation ownership, vacation rentals, and mini vacations in sensational destinations throughout the United States.

The Hyatt Hotels Corporation is characterized by a decentralized management approach, which gives the individual general manager a great deal of decision-making power, as well as the opportunity to use personal creativity and, therefore, stimulate differentiation and innovation. The development of novel concepts and products is perhaps the

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146 Part i Introducing hospitality and Lodging

the daily report contains key operating ratios such as room occupancy percentage (ROP), which is the number of rooms occupied divided by the number of rooms available:

thus, if a hotel has 850 rooms and 622 are occupied, the occupancy percentage is 622 ∙ 850 = 73 percent.

the average daily rate (ADR) is calculated by dividing the rooms rev- enue by the number of rooms sold:

If the rooms revenue is $75,884 and the number of rooms sold is 662, then the aDr is $114.63. the aDr is, together with the occupancy percentage, one of the key operating ratios that indicates the hotel’s performance. See Figure 3–5 for an example of a daily report.

Room occupancy percentage (ROP):

If total available rooms are 850

and total rooms occupied are 622

then:

Occupancy percentage = (622/850) × 100 = 73% Average daily rate:

If rooms revenue is $75,884

and total number of rooms sold is 622

then:

rooms Occupied

rooms available

Average daily rate = 75,884

662 = $114.63

key to Hyatt’s outstanding success. For example, the opening of the Hyatt Regency Atlanta with its atrium lobby gave the company instant recognition throughout the world. The property’s innovative architecture, designed by John Port- man, revolutionized the common standards of design and spacing, thus changing the course of the lodging industry.

A further positive aspect of the decentralized management structure is the fact that the individual manager is able to be extremely guest responsive by developing a thorough knowledge of the guests’ needs and thereby providing personalized service—fundamental to achieving customer satisfaction. This is, in fact, the ultimate innkeeping purpose, which Hyatt attains at high levels.

The other side of Hyatt’s success is the emphasis on human resources management. Employee satisfaction, in fact, is considered to be a prerequisite to external satisfaction. Hyatt devotes enormous attention to employee training and selection. What is most significant, however, is the interaction among top managers and operating employees.

The company operates 554 hotels and resorts in 47 countries worldwide.

c O r P O r a t e P r O F i L e (Continued)

rooms revenue

rooms Sold

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chapter 3 rooms Division 147

Weather

Daily Revenue Report Monday, March 17, 2014

Stormy

Sales # Rooms Avg

Sold Rate

Covers Avg Check

Covers Avg Check

Covers Avg Check

PER OCC RM

Outlet I

Room Service

BANQUET

BREAKFAST

LUNCH

DINNER

LITE FARE / OTHER

Total Food

LIQUOR

BEER

WINE

Total Beverage

TOTAL REST SALES

415.26

0.00

375.80

0.00

791.06

168.50

60.00

66.00

294.50

1,085.56

$8.65

$0.00

$13.42

$0.00

$10.41

$14.28

48

0

28

0

76

76

BREAKFAST

LUNCH

DINNER

LITE FARE / OTHER

Total Food

LIQUOR

BEER

WINE

Total Beverage

TOTAL REST II SALES

0.00

0.00

96.95

0.00

96.95

0.00

0.00

0.00

0.00

96.95

0

0

5

0

5

5

$0.00

$0.00

$19.39

$0.00

$19.39

$19.39

BREAKFAST

LUNCH

DINNER

BREAKS

RECEPTION

OTHER

Total Food Sales

LIQUOR

BEER

WINE

Total Beverage

TOTAL BANQUET

190.00

0.00

0.00

0.00

0.00

0.00

190.00

0.00

0.00

0.00

0.00

190.00

$10.00

$0.00

$0.00

$0.00

$0.00

$0.00

$10.00

$10.00

19

0

0

0

0

0

19

19

TOTAL FOOD SALES

TOTAL BEVERAGE SALES

MEETING ROOM SALES

BANQUET MlSC SALES

BANQUET GRATUITY CHARGE

RACK

CONSORTIUM

NATIONAL CORPORATE

LOCAL CORPORATE

GOVERNMENT/MILITARY

DISCOUNTS

PACKAGE

WHOLESALE

CONTRACT/OTHER

TOTAL TRANSIENT ROOM SALE

GROUP CORPORATE

GROUP ASSOCIATION

GROUP GOVT/MILITARY

GROUP SMERF

GROUP TOUR/TRAVEL

GROUP CONTRACT/OTHER

TOTAL GROUP ROOM SALES

COMPLIMENTARY ROOM

OUT OF ORDER ROOM

TOTAL ROOM SALES

3,357.00

2,298.00

1,059.00

4,116.30

1,262.00

5,033.17

(315.48)

141.75

-

16,951.74

-

-

-

-

-

-

-

16,951.74

$167.85

$191.50

$132.38

$158.32

$157.75

$162.36

($105.16)

$141.75

$0.00

$155.52

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$155.52

20

12

8

26

8

31

3

1

0

109

0

0

0

0

0

0

0

0

0

109

REVENUE OCC %∕ TOTAL OCC%

ROOM SALES

TODAY

TOTAL F & B REVENUE

1,078.00

294.50

400.00

0.00

38.00

1,810.51

TELEPHONE

GTD NO SHOW/ATTRICION

ATTRICION - FOOD

PARKING

ROOF/STORE RENTALS

MOVIES

OTHER INCOME

TOTAL OTHER INCOME

86.74

0.00

0.00

0.00

84.15

93.86

40.36

305.11

$0.80

$0.00

$0.00

$0.00

$0.77

$0.86

$0.37

$2.80

OTHER INCOME

TOTAL PROPERTY

Cash Receipts Credit Card Receipts

Guest Ledger City Ledger Advance Deposit Total

Today MTD Change 33,895.69 49,345.65

(11,379.39) 71,861.95

4,011.62 (22,742.07)

1,184.22 (17,546.23)

791.38 19,850.05

19,067.36

94.8% ∕ 94.8%

Sales # Rooms Avg

Sold Rate

Covers Avg Check

Covers Avg Check

Covers Avg Check

PER OCC RM

5,652.29

361.45

3,764.02

0.00

9,777.76

3,191.75

1,134.00

1,441.00

5,766.75

15,544.51

$9.95

$0.00

$11.95

$0.00

$11.07

$17.60

568

0

315

0

883

883

0.00

0.00

887.93

0.00

887.93

0.00

0.00

0.00

0.00

887.93

0

0

53

0

53

53

$0.00

$0.00

$16.75

$0.00

$16.75

$16.75

430.00

905.70

521.70

50.00

0.00

0.00

1,907.40

0.00

0.00

0.00

0.00

1,907.40

$11.03

$21.56

$23.71

$3.13

$0.00

$0.00

$16.03

$16.03

39

42

22

16

0

0

119

119

81,659.16

17,349.00

22,330.06

38,526.50

10,457.00

102,276.26

23,470.14

283.50

-

296,351.62

3,490.50

-

-

28,631.27

-

773.83

32,895.60

329,247.22

$211.01

$204.11

$146.91

$147.05

$153.78

$164.17

$181.94

$141.75

$0.00

$173.51

$268.50

$0.00

$0.00

$161.76

$0.00

$85.98

$165.30

$0.00

$0.00

$172.65