A Brief History of the Hotel Industry

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A Brief History of the Hotel Industry
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Cyclical History of Early Hotel Industry
Roman Empire (30 BC - 400 A.D)
Medieval (500 - 1300)
Renaissance (1300 - 1600)
Dark Ages (400 - 500 )
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History of Early Hotel Industry

• Sumerians (2500 BC) Houses of the go far
  people
• Code of Hammurabi (1792 - 1750 BC)
• Hotel in Olympus for visitors to games (4th
  century BC)
• Caravanseri (Persia 200 BC)
• Caravan inn or Palace
• Fortified area that housed
• animals, goods, and travelers
• First true commercial hotel

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History of Early Hotel Industry

• Roman Empire (265 BC 400 AD)
• Religious Military Travel
• Market Segmentation Mansio to Taberna
• China (250 BC 100 AD)
• Post houses/hotels every 10 miles for nearly
  300,000 miles
• Monasteries (400 1300 AD)
• Henry VIII Act of Supremacy (1534)
• Abolished monasteries Inn keeping flourishes

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History of Early Hotel Industry

• _______________ (1353)
• Guild of 235 Inn keepers
• Travelers met at city gate and escorted to
  appropriate inn
• England
• Ye Olde Fighting Cocks in St. Albans Oldest Inn
  (800 AD)
• London (1384) Innkeepers were responsible for
  the behavior of their guests
• Railway Hotels
• Built at every major terminal during the 19th
  century

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Cyclical History of Hotels in America
Golden Age (1920s)
Motel Age (1950s)
Growth (1960 70)
Recovery (1990s)
WW I (1910s)
WW II (1940s)
Recession (1980s)
9-11
Early America (1600 - 1920)
Depression (1930s)
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Firsts in America

• First Inn (1634) - Coles Ordinary - Boston, MA
• First Hotel (1794) - City Hotel - New York City
• The Tremont House (1829) First luxury class
  hotel
• Private rooms with locks on the door
• ___________________ (1908) First modern hotel
• Slogan A room and a bath for a dollar and a
  half
• Early taverns were unofficial City Halls
• The Queens Head Plotted the Boston Tea Party

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Innovators Leaders

• Fred Harvey (1876)
• Harvey House Hotels
• Ellsworth M. Statler (1908) Buffalo Statler
  Hotel
• Father of American Hotel Industry
• Conrad Hilton (1919)
• Bankers Mentality
• Kemmons Wilson (1952)
• Holiday Inns

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History of American Hotels

• 1920s - Golden Age of Hotels
• Unprecedented Building and Occupancy
• 1930s - Great Depression
• 85 of hotels in receivership or liquidation
• 1940s - World War II
• No materials for expansion 93 occupancy

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History of American Hotels

• 1950s - Growth of Motel Chains
• Reasons for increased travel after WW II
• 1. Pent-up Demand
• 2. Transportation Improvements
• Interstate Highway Act of 1956
• 3. Desire to Travel
• 4. _______________
• 1960s - Growth of Hotel Chains
• Hyatt, Howard Johnsons, Marriott

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History of American Hotels

• 1970s - Growth of Franchising
• Market Segmentation
• 1980s - Prosperity Recession
• Product Segmentation Over Expansion
• 1990s - Recovery
• Expanding Markets Mergers
• Sept. 11, 2001 - Major Decrease
• Recovery began in 2004

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Cyclical History of Las Vegas
Howard Hughes (1967)
Mega-Resorts (1990s)
Flamingo (1946)
9-11
Glitter Gulch (1931 - 1946)
Corporate Control (1980s)
The Mob (1940s - 1970s)
Wide Open Gambling Act (1931)
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Las Vegas History

• 1931 - Wide Open Gambling Act
• 1941 - El Rancho Vegas
• Jim Cashman Tommy Hull
• 1946 - Fabulous Flamingo
• Bugsy Siegel
• 1967 - Howard Hughes
• 1980s - Corporate Control Mega Resorts
• MGM, Hilton, Mirage
• 1990-Present Boom ---- Slow ---- Boom