CEE > Commercial Kitchens > Info for Members > Market Segments Program Guide > Hotels and Motels

Hotels and Motels

Hotels and motels are commercial establishments primarily engaged in providing lodging, or lodging and meals, for the general public.

The Decision Making Process

The decision making process for hotels and motels varies widely depending on the type of facility and ownership and operating structure.

The lodging industry breaks down into two basic categories: full-service and limited service hotels. Full-service hotels include resorts and luxury, upscale, mid-scale, and extended-stay hotels that have food and beverage service, such as Hilton, Embassy Suites, and Courtyard by Marriott. These are typically large facilities with 200+ guest rooms, conference centers, and multiple ballrooms. Full-service properties receive 61 percent of their revenues from rooms and another 29 percent from food and beverages. Limited-service hotels include economy, budget, and extended stay hotels without food service, such as Fairfield Inn, Motel 6, and Extended-Stay America. Limited-service hotels rely almost exclusively on room revenues (95 percent).¹

The decision making process for hotels and motels varies by size and ownership type. Smaller motels may be individually or family-owned, and in these cases capital purchases are typically requested by the general manager of an individual property to the principal owners. Capital purchases are typically constrained by a preset capital purchase budget such that the general manager allocates the budget among property upgrades and equipment replacements.

Medium and larger hotels and resorts are often corporate owned. In fact, over 70 percent of U.S. hotels are owned, managed, or operated by a corporate chain, however, it is rare for a hotel property to be owned, managed, and operated all by the same corporate entity.² Much more common is a complex structure in which a single property is owned by one firm, operated by a second, and carries the brand of a third. Accordingly, lodging corporations may operate one or more hotel brands while owning additional properties, including those operated or managed by franchisees or even competing lodging corporations.

In cases where a corporate hotel chain owns, operates, and manages a property, the corporate energy manager is typically the key decision maker. The corporate energy manager often plays an influential role in energy decisions for franchised properties as well. Motel 6, Sheraton, Hilton, and La Quinta are examples of hotel chains that own a substantial number of their properties.

Messaging

Hotels and motels respond best to messages related to improving guest comfort, good value, guest safety, and the importance of “going green.” These messages typically resonate more than discussion of energy cost savings among property owners and managers. Lifecycle costing and energy cost savings may appeal more to the financial decision makers.

Industry Stakeholders

State and Regional Innkeepers, Hotel, and Lodging Associations. Many associations publish periodic magazines for members.

Chambers of Commerce. Hotels and motels often join the local Chambers of Commerce. Supplying these organizations with program information is another way to reach end customers. Find local Chambers of Commerce through the U.S. Chamber of Commerce or in the local telephone directory. Local Chambers of Commerce often offer higher levels of assistance to members, so leveraging a program administrator’s membership can be more effective.

Small Business Associations. Much like the Chambers of Commerce, Small Business Associations are a common stop for hotels and motels. Find local associations through the U.S. Small Business Administration.

Downtown or Main Street Associations, Business Improvement Districts, and similar organizations. Many cities and towns have organizations dedicated to improving the downtown or main street area. This is another common organization type for hotels and motels to belong to, and these organizations have a strong, vested interest in helping their community members become aware of any programs, incentives, services, and offerings that reduce the cost of doing business.

Marketing Activities and Events

International Hotel, Motel, and Restaurant Show. The International Hotel, Motel, Restaurant Show in New York City each November is the premier event for hospitality owners and operators in the East Coast. Many foodservice equipment manufacturers and large distributors display their products at this show.

Western Food Service and Hospitality Expo. Annual show every August in California. Exhibitors include equipment and food companies. Attendees include manufacturers, dealers, distributors, manufacturer representatives, owners, operators, chefs, and students.

State and Regional Innkeepers, Hotel, Lodging, and Bed and Breakfast Associations. Associations typically hold annual conferences and trade shows with opportunities to attend, exhibit, and speak.

Training classes. Offering training classes for dieticians, chefs, and other foodservice related professions can provide early awareness of the role of energy and energy efficiency in running commercial foodservice facilities. Training classes can be offered in partnership with local programs and associations.

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