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

• Code of Hammurabi (1800 BC)
• Roman Empire - Religious Military Travel
• Dark Ages - Fall of Roman Empire
• Medieval - Churches
• Renaissance - Henry VIII abolished monasteries,
  Innkeeping flourished

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Cyclical History of Hotels in America
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History of American Hotels

• 1634 - First Inn - Coles Ordinary - Boston, MA
• 1794 - First Hotel - City Hotel - New York City
• Innovations
• The Tremont House (1829)
• The Country Club (1882)
• Buffalo Statler (1908)

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Innovators Leaders

• Fred Harvey (1876)
• Harvey House Hotels
• Ellsworth M. Statler (1908)
• 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. Two-income Family
• 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
• 2000 - New Opportunities

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Cyclical History of Las Vegas
Howard Hughes (1967)
Mega-Resorts (1990s)
Flamingo (1946)
Glitter Gulch (1931 - 1946)
The Mob (1940s - 1970s)
Corporate Control (1980s)
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
• MGM, Hilton, Mirage
• 1990s - Mega-Resorts

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Leaders in Las Vegas

• Bugsy Segal Flamingo
• Dangerous, ruthless, wild, psychopathic
• Benny Binion Horseshoe
• Loud, coarse, rude
• Even in a dean of thieves murderers, he lacked
  class
• Steve Wynn Mirage
• Erupts in anger verbally accosts subordinates
• Thousand watt smile that oozes charm