Chapter 7
Hotel Organization and
Management
Introduction to the World of Hospitality
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After Reading and Studying This
Chapter, You Should Be Able to:
• Explain how a hotel is organized, distinguish
revenue and cost centres
• Briefly describe different hotel departments:
the rooms division, food & beverage division,
and other revenue centres
• Briefly describe different hotel departments:
S&M department, HR department, and other
cost centres
• Describe hotel technologies
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Hotel Departments
•Revenue Centres
•Support Centres
(Cost Centres)
• Rooms Divisions
• Food and Beverage Division
• Telecommunications
• Concessions, Rentals and Commissions
• Fitness & Recreation Facilities
• Sales and Marketing Division
• Engineering Division
• Finance (Accounting) Division
• Security Division
• Human Resources
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Rooms Division
1.
2.
3.
4.
Front Office
Housekeeping
Reservations
Uniformed Services
• Bell Service,
• Concierge,
• Transportation,
• Parking Valets
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Measuring RD Performance
•Average Daily Rate (ADR)
ADR = Rooms Revenue / Rooms Occupied
•Occupancy Percentage (OP)
OP = Rooms Occupied / Total Available Rooms x 100%
•Revenue Per Available Room (RevPAR)
RevPAR = Occupancy Percentage x Average Daily Rate
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Exercise
Last night the Sunset Diamond Resort reported the
following:
• 1,250 rooms were available for sale;
• 1,132 rooms were sold;
• Room revenue was $201,858
Calculate the resort’s ADR, OP and RevPAR.
Answers: ADR=$178.32, OP=90.56%, RevPAR=$161.49
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Food & Beverage Division
1.
2.
3.
4.
F&B Outlets
F&B Kitchens
Catering Department
Rooms Service
Questions:
• How many outlets does the hotel from the
Organizational Chart have?
• How many kitchens?
• Which division does Catering belong to?
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Meal Plans
• Full American Plan (Full Board)
• Modified American Plan (Half Board)
• Continental Plan (Breakfast Only)
• European Plan (No Meals)
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Other Revenue Centers
• Telecommunications
• Concession, Rentals & Commission
• Fitness & Recreation
Question:
Which other revenue centers can you find on
the organizational chart? Which divisions they
belong to?
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Hotel Cost Centers
• Marketing & Sales Division
• Engineering Division
• Finance (Accounting) Division
• Human Resources Division
• Security Division
Homework: Learn about cost centers and their
responsibilities (pp. 220-225)
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Hotel Technology
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Property Management System (PMS)
Point-of-Sales System (POS)
Sales and Catering System
Inventory/Purchasing System (I/P)
Accounting System
Telecommunications System
Electronic Door Lock System
Energy Management System
Internet Access
Television System
Minibar System
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Homework
• Read Chapter 7
• Learn about the responsibilities of different
hotel departments and hotel technologies
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