OM in the News: The New Hotel Layout

We open Chapter 9, Layout Strategies, with the Global Profile on how McDonald’s around the globe are starting to look more like coffee shops than burger joints. According to The Wall Street Journal (June 10, 2011), hotel lobbies are being redesigned en mass to look like Starbucks outlets as well.  Hilton’s Garden Inn chain remodeling plan, for example, includes what employees call a “Starbuckian area” with communal seating  for the laptop set.

Likewise, Intercontinental’s Holiday Inn  chain is opening a new lobby concept called the “social hub”, with built-in TVs, high tables for laptop plug-in, and an area for food and coffee. Marriott is refitting 100’s of lobbies with touch screens so customers can check weather and flight information. More than 300 Courtyard’s have lobby bistros, with a full breakfast and other food options. And Hyatt lobbies now have a central counter where guest can order drinks, coffee, or food. The same employees who check guests in can even serve the lattes or burgers.

Research shows that younger guests would rather spend time in lobbies than in their rooms. “They want to be alone, but not lonely”, according to a Hilton VP. The new layouts represent a way for hotels, hard hit during the recession, to boost  revenues without taking the risk of raising room rates.

Discussion questions:

1. Why are hotels renovating lobbies instead of rooms?

2. What are the strategic issues of hotel layout?