Paper: 07, Front Office Operations & Management

Module 37: International and National Chain

Principal Investigator Prof. S. P. Bansal Vice chancellor Indira Gandhi University, Meerpur, Rewari, Haryana

Co-Principal Investigator Dr. Prashant K. Gautam Director, UIHMT Panjab University, Chandigarh

Dr. Ankush Ambardar Paper Coordinator Assistant Professor Department of Tourism & Management Kurukshetra University, Kurukshetra

Dr. Abhishek Ghai Content Writer Assistant Professor, UIHMT, Panjab University, Chandigarh

Tel Prof. Manjula Chaudhary Content Reviewer Professor Department of Tourism & Hotel Management Kurukshetra University, Kurukshetra

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Tourism & Front Office Operations & Management Hospitality Components of Tourism

Items Description of Module

Subject Name Tourism & Hospitality

Paper Name Front Office Operations & Management

Module Title International & National Chain Hotels

Module Id Module no-37

Pre- Requisites Basic knowledge about Hotel Industry

Objectives To study the different International and National Chain

Keywords Tourism, Component, Entrepreneurship development

QUADRANT-I

Module 1: Component of Tourism 1. Learning Outcome 2. Introduction to Hotel Industry 3. International Hotel Chains 4. International Hotel Groups 5. National Hotel Chains 6. Conclusion

1. Learning Outcome  After learning this chapter the students will be able to:

 Know about the Hotel Industry

 About and Group of Hotels

 About Choice and Hilton hotels

 About Intercontinental Group and Marriott Group of hotels

 Various National Chain Hotels

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INTERNATIONAL AND NATIONAL CHAIN HOTELS

INTRODUCTION TO HOTELS The hotel sector occupied a pivotal place in the Indian service industry and has witnessed a tremendous growth during the recent decade. Hospitality operations determine as service industry are usually involved in economic activities by selling the hotel products like room, food in a restaurant and other product and services. It also determines as lodging industry which provides hospitality services to guests and has the potential to generate revenue and foreign exchange. According to George (2001), the promotes a warm and friendly experience which is helpful for the consumers and is mainly concerned with providing food, drink and accommodation. On the other hand, tourism industry refers to the activity that occurs when tourist travel.

Hotel industry is so entangled to the tourism industry that the growth of tourism industry influences the growth of Hotel Industry. In India, Hotel industry plays a pivotal role towards boosting the economy. It is one of the biggest foreign exchange breadwinners to the country and also one of the largest employers. The history of the hotel industry is as old as tourism and tourism is old as civilization. Hotel Industry is inextricably linked to the tourism industry; in fact, both are two sides of the same coin. The growth in the Indian tourism industry has fuelled the growth of Indian hotel industry. Both are complementary to each other. The hotels provide a number of services to the visitors. The present day modern concept of the hotel is not just a place to provide accommodation and food and beverage but offering to its guest every possible facility, service and convenience. The origin and development of the hospitality industry is a direct outcome of travel and tourism.

India gained independence in 1947, and the hotel industry had a period in which no hotel development took place. Upon his return from the Non-Aligned Movement Conference in 1956, Late Pundit Jawaharlal Nehru, then Prime Minister of India, recognized that tourism could be an engine for the

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country's economic growth and was inspired to build quality hotels in India for visiting foreign dignitaries. This led to the first ever government investment in the hotel industry with the building of the Ashoka Hotel in New .

The modern catering industry dates back to the inns of the biblical period, which served food to the traveler’s and was gradually built up through the ages by inns, taverns, tea and coffeehouses. The religious orders or the houses of nobility, which catered to a large number of people, influenced it. The partaking of food was a social event for entire families and their guests. The factors that affected the organizations of food services were the type of establishments, its location, personnel available and income levels. The first restaurant is said to have been established in Paris-la tour D’Argent. The word ‘restaurant’ is derived from the French verb ‘restaurer’ or ‘to restore’. Other restaurants and hotels were established in Europe and were patronized mainly by the aristocracy. In 1794 the ‘City Hotel’ was built in New York. In 1829 the first luxury hotel was built in Boston – The Tremont House and the hotel industry continued to expand. Contrary to their European counterparts, the American hotels catered to a general public. In 1889, the ‘CEASER RITZ’ developed the idea of luxury hotel chains. ‘The RITZ’ which was followed by the Savoy, the Claridges and the Caritons. YWCA started Cafeterias in 1891 at Kansas City. The 20th century with the influence of world Wars and the changing business and social patterns has made eating out more customary. The advent of more sophisticated means of transport increased tourism and hence the demand for various types of food service establishment.

The definition of hotel industry is defined as a place where a bonafide traveler can take food and shelter if he is in a position to pay for it and is in a suitable condition to be received. Today’s hotels cater to all the needs and wishes of the guests which will continue into the future. In India the development in tourism combined with the het age travel, increase in population and the individual expansion, all increased the need for catering establishments, which form an important source of foreign exchange earnings. India is a land of varied culture, histories and hence cuisine’s. Cool hills of the north have warming and filling root vegetables. The heat of the south makes for cooling foods and steaming methods of cooking. The variety of spice usage, flavors and seasonings is the highest in the

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world. The admixture of these numerous seasonings makes Indian cookery unique. The impact of the Raj did not affect the local cuisine. Hence the European cuisine did not get a foothold on Indian soil, Indian cuisine adapted extremely well to the western world and is continuously increasing in its popularity.

INTERNATIONAL HOTEL CHAINS

ACCOR GROUP

The hotels Accor belongs to two friends, Paul Dubrule and Gérard Pélisson, who opened their first in 1967 at a time when no one in France yet believed in this new hotel business model. Further, through their creativity and boldness, they pushed the boundaries of what is possible ever further. Today their dream of hospitality has become Accor Hotels. The Group brings together over 4,200 hotels and almost 5, 25,000 rooms in 95 countries. Proud heirs of the co-founders' vision, everyday 240,000-talented people continue to invent the hospitality of tomorrow and bring to life their passion for the guest

1999 Went public with its IPO

2015 Accor Hotels buys Canada's FRHI, owners of Fairmont, Raffles, Swissotel

2016 Accor Hotels invests in holiday rentals to understand expectations. Accor Hotels acquires Onefinestay for $170 million. Accor Hotels buys concierge group John Paul in Airbnb response strategy

2017 Acquired Travel Keys. Accor Hotels acquires Availpro, expanding its digital services business

Their brands are

 In Luxury segment they have Legend, Sofitel, Fairmont and Raffles  In Upper upscale they have Pullman, Swissotel, M Gallery, The Sebel, Adagio Premium 5

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 In Upscale they have Grand  In Upper midscale they have Novotel suite, Novotel, adagio, Mama shelter  In Midscale they have Mercure  In budget hotels they have , Formulae 1, Access, Coralia

BEST WESTERN

This is one of the old and famous chain of hotels. In total, Best Western International, operator of the Best Western Hotels & brand, operates approximately 4,200 hotels and motels and approximately 302,000 rooms. The chain, in total operates 2,163 hotels, with its corporate headquarters in Phoenix, Arizona, in North America. M.K. Geurtin is the founder of this chain hotel who started this in 1946. The president David Kong and CEO of Best Western, and Dorothy Dowling who is the chief marketing officer of Best western chain had worked massively for the growth and development of the organization. Further, Canadian hotel owners joined the system in 1964 and Best Western then expanded to Mexico, Australia, and New Zealand in 1976. In 2002, Europe and Asia added up with the inventory of Best Western Premier which is launched by Best Western International (The other hotels in the chain were known as Best Western). In 2011 Best Western concurrently modified its slogan from "the world's largest hotel chain" to "the world's largest hotel family”. However, the chain's branding system-wide changed to a three-tiered system: Best Western, Best Western Plus, and Best Western Premier. Since it no longer operates under a single brand. The hotel industry's largest High- Speed Internet Access (HSIA) initiative had took place in 2004, by Best Western with the fastest implementation. In just eight months, the company starts free wireless or hard-wired HSIA in specific portion of the public zones and at least 15 percent of accommodations, at all of its North American properties.

In 2012, Best Western introduces advanced cleaning technologies at its North American properties, becoming the first hotel brand to empower housekeeping staff to set a new standard for guest care through the use of UV wands, black lights and clean remotes.

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Best Western announces new master brand logo in 2015 which pulls through the company’s current blue color, updated with a modern type and uses the unique hand drawn lettering which was created to be contemporary, friendly and impressive. Through that logo it will clearly define that Best Western is a company of hotels and resorts across the globe with brands that meet the needs of today's travelers. This chain operates many hotels globally, for example:

 In Upscale market they have Best Western Premier, VIB, BW Premier Collection

 In Upper Midscale market they operate their Best Western Plus, Executive Residency

 In Midscale market they operate Best Western, GLO

CHOICE HOTELS

Choice hotels international represents one of the largest chain hotels in the world and most of the researches prove that it is the successful lodging companies in the world, franchises more than 6,400 hotels, and it representing more than 500,000 rooms in more than 40 countries and territories. The chain Choice hotels are largest and it keeps expanding their business all over the world. In 1939, Choice's business began as a marketing cooperative formed by a group of seven Florida motor court owners. Earlier this hotel was operating under the name Quality Courts United - the nation's first hotel chain. The main motive of the owners was to establish service standards for their properties in order to better meet the needs and expectations of their guests though they use to refer business to each other's. Further, over the years, more hotels joined the Quality Courts system, which had become an influential force in the lodging industry and had established a reputation for providing value-driven, affordable lodging in convenient and popular locations. In term of innovation the company established a rich history, as it was the first in the industry to offer guarantee reservations, offer 24-hour desk service, valet parking, in-room telephones, toll-free reservations, segment brands, develop a global marketing and reservations system, offer non-smoking rooms and floors in every hotel, develop the first global hotel application for use with the iPhone, Internet-based property management system.

In 1939, Quality Courts chain was created by Seven Southern motel owners, an informal group of motels that set quality standards with respect to physical facilities and operating practices. 7

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In 1970, the average hotel industry room rate is $19.83 Quality Courts establishes a European Division Headquarters in Brussels and establishes Quality Motels of Canada. Quality Courts begins offering 24- hour, toll-free central reservations.

In 1981, Quality Inn develops the successful and innovative strategy of market segmentation and divides its lodging system into three distinctive chains: Quality Royale, a luxury brand; Quality Inn, for the moderately-priced, three-star market; and Comfort Inn, a new budget franchise aimed at the luxury budget two-star market.’ The first Comfort Inn hotel opens later that year in Atlanta.

In 2003, Choice hotels introduce its Web-based property management system by the name of Choice ADVANTAGE. Choice Hotels acquires a controlling interest in Flag Choice Hotels, a leading hotel franchisor in Australia and New Zealand. In 2004, the choice hotels change its name to Choice Hotels Australasia and begin franchising Choice brands in Australia, New Zealand, American Samoa, Fiji, New Caledonia and Papua New Guinea. However, Choice launches its partnership with Choice Hotels Japan as the master partner for that country.

In 2005, Choice launches a new select service, upscale brand, Cambria Suites. Choice opens its 5000th hotel, a Comfort Suites in Lake Geneva, Wis. Choice acquires Suburban Extended Stay Hotel, an economy extended-stay brand. Choice becomes largest franchisor in the economy extended-stay market.

In 2014, Choice Hotels celebrates its 75th anniversary and teams up with Rebuilding Together for Choice’s 75th Rebuilding project, impacting more than 86,000 people. We also launched new mobile capabilities with Connected Car, the first hands-free hotel reservations app for Ford vehicles.

In 2016, with the launch of Vacation Rentals by Choice Hotels, the company expanded its product offering outside of hotels to ensure that there are lodging options in the Choice portfolio to fit any travel occasion.

The chain operates many hotels globally, for example:

 In Upscale market they run Ascend Collection, Cambria Suites, Clarion Hotel

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 In Upper Midscale market they have Comfort Suites, Clarion Inn

 In Midscale market they operate Mainstay Suites, Quality Inn, Comfort Inn, Sleep Inn

 In Budget hotels they have , , Suburban Extended Stay Hotel

HILTON

Conrad N. Hilton opened the first hotel in 1925 by the name of Dallas Hilton, the first hotel to carry the Hilton name. He aimed to operate the best hotel in Texas. Hilton is one of the most respected brands in the world, as a result of his commitment, leadership, and innovation, today the group has over 4,700 properties and over 7, 75,000 rooms. Since air conditioning hadn't yet been invented, the elevators, laundry chutes, airshafts, and other non-customer facilities were placed on the building's west side, so that no guest rooms faced the western sun.

In 1919, Conrad Hilton opened the hotel in Cisco, Texas by the name of ‘The Mobley’. Over the next few years, he buys other Texas hotels. While business is strong, Mr. Hilton has greater ambitions. Further, in 1943 with the purchase of the Roosevelt and Plaza hotels in New York City, Hilton becomes the first coast-to-coast hotel group in the United States. In 1947, Hilton comes with a new innovation in their New York City's Roosevelt Hilton hotel. The hotel becomes the first hotel in the world to install televisions in guest rooms. In 1949, Conrad Hilton purchases "The Greatest of Them All," the original Waldorf Astoria in New York, NY. Further, in 1954, Conrad N. Hilton buys Statler Hotel for $111 million dollars, which at the time was the largest real estate deal ever. In 1955, Hilton creates its first central reservation office, called HILCRON. Reservations can be made at any Hilton by telephone, telegram, or Teletype. In 1959, the airport hotel concept was opened by Hilton pioneers with their 380 room San Francisco Airport Hilton. Moreover, in 1965, the new innovation came by the launch of Lady Hilton, the first hotel concept designed exclusively for women travelers. Select hotels feature women-only floors and rooms and provide special amenities tailored to women. In 1989, Hampton Hotels is the first hotel company to promise 100% Satisfaction Guarantee. It states: Friendly service, clean rooms, comfortable surroundings, every time. If you're not satisfied, we don't expect you 9

Tourism & Front Office Operations & Management Hospitality Components of Tourism

to pay. In 2009, the expansion of Hilton Hotels to 76 countries, making it the largest full-service hotel brand in the world. Further, in 2011, Hampton Hotels is named the #1 franchise opportunity in Entrepreneur Magazine's Franchise 500® ranking.

The chain operates many hotels globally, for example:

 In Luxury segment the chain has Waldorf Astoria,

 In Upper Upscale market they run Hilton, DoubleTree, , Collection

 In Upscale segment they have

 In Upper Midscale segment they operate , Homewood Suites by Hilton, Home2 Suites

 In Midscale segment they run ,

INTERCONTINENTAL HOTELS GROUP

The Intercontinental Hotels Group shortly called as IHG has almost present in 100 countries and is one of the world’s leading hotel chain. IHG became a standalone company in 2003 but their business and broad portfolio of hotel brands have a much longer history. The story starts in 1777, when William Bass opens a brewery in Burton-on-, UK. The business later transforms from domestic brewer into global hospitality company. The first InterContinental hotel opens in Belem, Brazil in 1949. Further, in 1998, the InterContinental Hotels & Resorts brand expands to become the world’s first truly international luxury hotel brand. ‘Kemmons Wilson’ had the idea while on a family trip to Washington D.C., where he saw the need for comfortable and affordable places for families to stay and in 1952; he opens the first hotel in Memphis, Tennessee. Bass acquires the international part of the business in 1988 and the North American division in 1990. By the massive growth and development of the company, in 1960s Bass becomes one of the largest brewers and pub owners in the UK through acquisitions of well-known regional brewing companies, including Mitchells & Butlers in 1961, and a merger with Charringtons in 1967. Moreover, company expands its business in 1983, The Crowne 10

Tourism & Front Office Operations & Management Hospitality Components of Tourism

Plaza brand launches with a focus on business travelers and in 1991, Bass launches limited service brand, . IHG continuously work for innovation and modernization like Extended- stay hotel brand, , is founded and becomes the first hotel brand to offer free guest laundry. IHG acquires it in 2003.

In 2000, Bass confirms its position as Asia Pacific’s leading Hotel Company with acquisition of Southern Pacific Hotels Corporation in Australia. It buys US-based hotel Management Company, Bristol Hotels & Resorts. It further refocuses the business from domestic brewing operation to global hospitality company by selling Bass Brewers to Interbrew for £2.3 billion. In 2004, IHG launches its new boutique hotel brand, , with each property designed to reflect the local culture and history of the surrounding area. In 2012, IHG launches , the first mainstream hotel brand focused on wellness and fulfilling the demand for healthier travel. The chain operates many hotels globally, for example:

 In Luxury segment they run Intercontinental Hotels

 In Upper Upscale market they have , Kimpton Hotels & Restaurants

 In Upscale market they operate Hotel Indigo, EVEN Hotels, , Holiday Inn Select

 In Upper Midscale segment they have Holiday Inn

 In Midscale segment they run Holiday Inn Express, Candlewood Suites

MARIOTT GROUP

Marriott hotel plays a pivotal role in the growth and development of hotel industry. is a leading global lodging company. They operate more than 6,000 properties in 122 countries and territories, reporting revenues of more than $17 billion in fiscal year 2016. The company is founded by J. Willard and Alice Marriott and guided by family leadership for nearly 90 years. The

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headquarter of the company is outside of Washington, D.C. in Bethesda, Maryland. The following is the time to time history and growth of the company:

During the period 1927-1956, it all began with an A&W root beer stand. Founder J. Willard Marriott and his wife, Alice, got their young business off the ground by quenching people’s thirst during Washington D.C.’s hot, muggy summers. Good food and good service at a fair price became a guiding principle for Hot Shoppes restaurants and for Marriott International as it grew.

During 1957-1985, Marriott made a historic shift into the hotel business. In 1957, the world’s first motor hotel opened in Arlington, Virginia, under the management of J. Willard Marriott’s son, Bill. Over the next 25 years, Marriott became a diverse global enterprise, and Bill Marriott became a visionary CEO whose leadership transformed the hospitality industry.

During 1986-2011, the company came up with innovative model ‘One company, many brands’ that Marriott began building in the late 1980s. To become one the best and top hospitality company in the world Marriott International broke new ground in its quest. From pioneering the extended-stay business to launching distinctive brands geared toward the business traveler to increasing its presence overseas. Further in 2016, Marriott International acquires Hotels & Resorts, creating the world’s largest hotel company with more than 5,700 properties offering more than 1.1 million rooms across 30 brands in over 110 countries. Today Marriott’s have a diverse portfolio of hotels and operations. To give an indication of the scale of operation they are divided into various sectors which are as follows:

 In Luxury segment they have St. Regis, , The Luxury Collection, The Ritz-Carlton, Hotels and Resorts, JW Marriott, Edition

 In Upper Upscale segment they operate Westin Hotels and Resorts, Le Meridien, Sheraton, Tribute Portfolio, Hotels, , Marriott, Marriott, Marriott Executive Apartments,

 In Upscale segment they run , Element by Westin, Aloft, AC Hotels, Courtyard Marriott, Springhill Suites Marriott, Residence Inn Marriott 12

Tourism & Front Office Operations & Management Hospitality Components of Tourism

 In Upper Midscale segment they operate Moxy Hotels, Fairfield Inn and Suites Marriott, Protea Hotels Marriott, Towneplace Suites Marriott

NATIONAL HOTEL CHAINS

TAJ GROUP

Taj Group of Hotels is one of the renowned hotel chains with their hotels in Pan India and across the world. The Resorts and Palaces is recognized the world best company for delivering a unique flavor of hospitality that offers world class refinement while remaining deeply rooted in its Indian heritage. Started its very first property from , The Taj Mahal Palace is the first hotel of Taj, opened in the year 1903. Further, in 1970, the Fort Aguada Beach opened in Goa, the chains first international five star deluxe beach resort. The Taj Group moreover began its business in metropolitan hotels; chance to open the five-star deluxe hotel, in Chennai. Further in 1978, the group also started the process and work to open the Taj Mahal Hotel in Delhi. For more than a century, Taj has brought together the unique beauty and traditions from across India in an experience that highlights true Indian hospitality. To put many Indian destinations on the map, Taj hotels plays a Pivotal role. From the resorts of Goa to the upcoming business hubs of India’s Silicon Valley, an iconic Taj hotel is a mainstay of the destination. Since the 1970s, the group started converting royal palaces in India into luxury hotels. The Lake Palace in is the first palace to be converted into a Taj luxury hotel in 1971. Other examples include the Rambagh Palace in , in , Falaknuma Palace in and Nadesar Palace in . In 1980s, the Taj hotels was massively working on the expansion of their hotels globally. The Taj group opened its first hotel outside India, the Taj Sheba Hotel in Sana'a, in and in the late 1980s, acquired interests in the St. James' Court Hotel in London. Taj has 100 hotels in 62 locations across India, Taj offers guests the refined luxury of heritage combined with naturally efficient service and local expertise to create a moment to remember. In India, Taj hotels are strategically located to offer the Taj experience in business hubs, industrial towns and metropolises, as well as the most remote pilgrimage centers,

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historic and natural destinations. The group has extended its international presence with 15 hotels in the Maldives, Malaysia, the UK, USA, Bhutan, Sri Lanka, Africa and the Middle East. This chain has many properties worldwide under the various segments:

 In Luxury segment they run Taj Hotels

 In Upper Upscale segment they operate by Taj

 In Upscale hotels they run Gateway Hotels

 In Budget segment they have

THE OBEROI GROUP

Reputed hotels such as the Taj, the Oberoi, and the Ambassador were well established when; India became independent. After independence; the hospitality industry grew at a faster rate. As economic activities augmented, numerous eateries and hotels of different styles and sizes were established, which catered to the requirements of the travellers and the general public. Oberoi group is one of the chain hotels in India founded in 1934, and operates 31 hotels al around which include Nile Cruisers and a Motor Vessel in the backwaters of Kerala. The group expanded very massively with the motive to provide quality service and to establish standards which helps in customer satisfaction and loyalty. Under the brand of Luxury 'Oberoi' and five-star 'Trident' the group has presence in six countries. Moreover, the Group is also engaged in flight catering, airport restaurants, travel and tour services, car rentals, project management and corporate air charters. Oberoi Hotels & Resorts is synonymous the world over with providing the right blend of service, luxury and quiet efficiency. Internationally acclaimed for all-round excellence and unparalleled levels of service, Oberoi Hotels & Resorts have received innumerable awards and accolades. A unique feature of The Group's hotels is their highly motivated and well trained staff that provides exceptionally attentive, personalized and warm service. The Group's luxury hotels have established a reputation for redefining the paradigm of luxury and excellence in service amongst leisure hotels around the world.

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ITC

ITC hotels are one of the largest and growing chain hotels in the country with around 100 hotels across 70 destinations. ITC has jumped into the Hotels business to support the national priority of developing new avenues of foreign exchange earnings and boosting tourism. In 1975, ITC started its hotels with the Sheraton Chola, Chennai, ITC’s journey in this business has redefined the face of Indian hospitality. ITC Hotels integrated India’s fine tradition of hospitality with globally benchmarked services and symbolized by its distinctive ‘Namaste’ logo.

ITC has played a pivotal role in Indian hospitality industry. The term sustainability is well proved by the efforts of ITC chain hotels. ITC Hotels is an example in sustainable hospitality with all its premium hotels being LEED Platinum certified. The hotel pioneered the concepts of branded accommodation, branded cuisine, environment and guest safety. The chain also participate in social activities and contribute to a society, as it is one of India’s premier corporations, ITC Hotels seeks to fulfill a larger role by enlarging its contribution. The chain has many properties worldwide under the various segments:

 In Luxury segment they operate ITC Luxury Collection

 In Upper Upscale segment they have Welcom Hotels, Welcom Heritage

 In Upper Midscale segment they run by the name of Fortune

Apart from the above famous chains, there are a number of other chains which also dot the landscape, among them are

ITDC 8 properties

LEELA 9 properties

LEMON TREE 40 properties,

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UPSCALE Lemon Tree Premier

MIDSCALE Lemon Tree

BUDGET Red Fox Hotels

ROYAL ORCHID 38 properties

THE PARK 8 properties

CONCLUSION

Reputed hotels such as The Taj, The Oberoi, and the Ambassador were well established when; India became independent. After independence, the hospitality industry grew at a faster rate. As economic activities augmented, numerous eateries and hotels of different styles and sizes were established, which catered to the requirements of the travellers and the general public. A hotel or group or a part of a series which is operated by the same company or owner is known as Chain hotel. Opposite of an independent hotel it is a ‘chain-affiliated’ hotel. A chain hotel is usually called an administration company that too located in different areas or regions by the same name. They can be total or partial owners of the hotel and they manage their administration, marketing and promotion. Hospitality operations determine as service industry are usually involved in economic activities by selling the hotel products like room, food in a restaurant and other product and services.

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