lodging magazine jan 2014

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THE OFFICIAL MAGAZINE OF THE AMERICAN HOTEL + LODGING ASSOCIATION JANUARY 2014 JOHN FITZPATRICK PRESIDENT AND CEO FITZPATRICK HOTEL GROUP LODGING MAGAZINE @LODGINGMAGAZINE THE RISE OF TRIPADVISOR WHAT IT MEANS FOR HOTELS RECIPE FOR SUCCESS GET MORE FROM YOUR RESTAURANT AHEAD A LOOK PLUS INDUSTRY EXPERTS PREVIEW THE UPCOMING YEAR INCOMING AH&LA CHAIR JOHN FITZPATRICK SEES A BRIGHT FUTURE FOR LODGING

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Lodging Magazine Jan 2014

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  • THE OFFICIAL MAGAZINE OF THE AMERICAN HOTEL + LODGING ASSOCIATION JANUARY 2014

    JOHN FITZPATRICKPRESIDENT AND CEOFITZPATRICK HOTEL GROUP

    LODGING MAGAZINE @LODGINGMAGAZINE

    THE RISE OF TRIPADVISORWHAT IT MEANS FOR HOTELS

    RECIPE FOR SUCCESSGET MORE FROM YOUR RESTAURANT

    AHEADA LOOK

    PLUSINDUSTRY EXPERTS PREVIEW THE UPCOMING YEAR

    INCOMING AH&LA CHAIR JOHN FITZPATRICK SEES A BRIGHT FUTURE FOR LODGING

  • *Based on number of hotels.Offering by prospectus only. Wyndham Hotel Group, LLC., 22 Sylvan Way, Parsippany, NJ. 07054, 973-753-6600. 2014 Wyndham Hotel Group, LLC. All rights reserved. All hotels are either franchised by the company, or owned and/or managed by Wyndham Hotel Management, Inc. or one of its affiliates.

    To learn more, call 888-223-4675

    or visit www.whgdevelopment.com

    TRYP BY WYNDHAM NEW YORK CITY, NY

    WINGATE BY WYNDHAM ALPHARETTA, GA

    HAWTHORN SUITES BY WYNDHAM NAPLES, FL

    WYNDHAM HOTEL GROUPThe company to be with and stay with

    At Wyndham Hotel Group, were not content with being the worlds largest* hotel company, we also want to be the best. Our goal is to find like-minded partners who are looking to form lasting relationships, and then provide the types of revenue-generating and cost-saving services that will make them want to remain a member of our family forever.

    We invite you to join us as we continue to grow our diverse collection of 15 hotel brands across the globe.

    WYNDHAM GUAYAQUIL - GUAYAS, ECUADOR

  • WYNDHAM HOTEL GROUPThe company to be with and stay with

    SUPER 8 PETERBOROUGH - ONTARIO, CANADA

    RAMADA PLAZA ANAHEIM, CA

    MICROTEL INN & SUITES BY WYNDHAM SEARCY, AR

    DAYS INN PORT WENTWORTH, GA

  • Hyatt Place received the highest numerical score among upscale hotels in the proprietary J.D. Power 2013 North America Hotel Guest Satisfaction Index StudySM. Study based on responses from 68,787 guests measuring 11 upscale hotels and measures opinions of guests who stayed in a hotel June 2012-May 2013. Proprietary study results are based on experiences and perceptions of consumers surveyed July 2012-May 2013. Your experiences may vary. Visit jdpower.com. Posted with permission from Business Travel News Copyright 2014 Hyatt Corporation. All rights reserved.

    THOUSANDS OF LOYAL GUESTS

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  • Were not satisfied until youre satisfied. Maybe thats why

    Hyatt Place was awarded Highest in Guest Satisfaction

    Among Upscale Hotel Chains by J.D. Power in 2013.

    Hyatt Place is also ranked #1 Select-Service Brand by

    Business Travel News 2013 Hotel Chain Survey for the

    second year in a row.

    Thank you for your continued support and feedback that

    have helped make us the brand we are today and will be

    in the future.

    satisfactionYOULL KNOW IT WHEN YOU SEE IT

  • CONTENTS JANUARY 2014 | VOLUME 39 | ISSUE NO. 5

    2 LODG INGMAGAZ INE .COM JANUARY 2014

    F E AT U R E S

    34An Innkeepers StoryJohn Fitzpatrick grew up in a 20-room castle in Ireland that his parents trans-formed into a successful hotel. Today, Fitzpatrick runs the only two Irish-owned hotels in New York City: the Fitzpatrick Manhattan and the Fitzpatrick Grand Central. As the AH&LAs new chairman, he is eager to focus on advocacy, com-munication, and education. BY MEGHAN RABBITT

    40The State of LodgingFour industry experts share their thoughts on the biggest issues facing the lodging industry in 2014, from living wage initiatives and the health care act to immigration and the visa process. Other areas of concern include the threat of overdevelopment, pushing average daily rate, and the ongoing dysfunction in Washington.BY THE LODGING STAFF

    46Power TripLike it or not, TripAdvisor has redefi ned the connection between hotels and their guests. The online travel review site grew from a simple concept 13 years ago into an industry giant that attracts more than 53 million unique visitors per month and employs nearly 2,000 people. Heres how to make TripAdvisor work for you. BY ERIC RASKIN

    40 LEADERS IN LODGING(From left) Ron Vlasic, Nancy Johnson, Jim Abrahamson, and John FitzpatrickCOLIN LENTON

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  • 4 LODG INGMAGAZ INE .COM JANUARY 2014

    CONTENTS

    OW N ER S M ANUA L SUP PLY LI NEF RO N T D ESK

    WEB E XCLUS I VE

    13 Success StoriesMichael Doyle, EVP of Capital Hotel Management, exemplifi es how integral asset managers are to the owner-manager equation.

    16 Quick TakeGoogle Business Photos changes how consumers shop for hotels online.

    16 Good HousekeepingFour safe lifting techniques to prevent back injuries.

    18 Checking In Mark Carrier, president of B.F. Saul Company Hospitality Group, lives and breathes hotel operations.

    20 Washington DispatchThe patent reform victory in the House demonstrates the power of engaged hoteliers.

    Drink Up: Hotels Capitalize on Beverage TrendsAcross the country, hotels are turning their attention to bar and restaurant beverage optionsand shaking things up a bit. Bar managers are serving up region-specifi c beverages, house-brewed beers, drinks with locally sourced ingredients, and modern twists on classic cocktails. A few ho-tels are even offering do-it-yourself cocktail kits that can be used at the bar or in guestrooms. Top beverage trends include onsite barrel-aged drinks, edible cocktails, and gluten-free beer.

    23 Smart StrategyWays to make a smart restaurant strategy pay off for your hotel.

    26 Market ReportMixed messages for the meetings market in 2013.

    28 Breaking GroundLatin Americas construction pipeline reaches a new peak.

    30 StartupHealthy relationships between owners and man-agers propel growth.

    32 BackstoryHow a Residence Inn GM is helping his guests navigate insurance claims.

    53 Guest BathroomFrom showers and sinks to toilets and accessories.

    56 Source CodeManufacturers discuss the latest bathroom design trends.

    LODGING (ISSN 0360-9235) IS PUBLISHED MONTHLY BY MCNEILL GROUP, INC., 385 OXFORD VALLEY ROAD, SUITE 420, YARDLEY, PA 19067. TELEPHONE 215-321-9662. PERIODICALS POSTAGE PAID AT MORRISVILLE, PA AND ADDITIONAL MAILING OFFICES. COPYRIGHT 2013 BY THE MCNEILL GROUP INC. MATERIALS MAY NOT BE REPRODUCED WITHOUT PERMISSION. POSTMASTER: SEND ADDRESS CHANGES TO LODGING, CIRCULATION DEPARTMENT, 385 OXFORD VALLEY ROAD, SUITE 420, YARDLEY, PA 19067. TO SUBSCRIBE TO LODGING PLEASE SEND AN E-MAIL WITH YOUR NAME, TITLE, AND COMPANY TO [email protected].

    VISIT US O NL IN Elodgingmagazine.com

    LIKE U S O N FACEBOOKlodging magazine

    FOLLOW U S O N TWITTER@ lodgingmagazine

    E- MA IL T H E E DI [email protected]

    CH EC K OUT

    64 The William Hotel Guest SuitesInspired by fi ne paintings, the guestrooms here are saturated with monochro-matic color palettes.

    23

    26

    13

    64

  • 20122013 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Preferred Guest, Aloft, Element, Four Points, Le Mridien, Sheraton, St. Regis, The Luxury Collection, W, Westin and their logos are the trademarks of Starwood Hotels & Resorts Worldwide, Inc., or its affiliates.

    STRENGTH TO BUILD ONWhen you give guests a great experience, they return again and again. Our nine distinct lifestyle brands, powered by a global booking platform and the award-winning Starwood Preferred Guest loyalty program, enable us to capture the hearts and devotion of our guests like no other in the industry giving you a competitive advantage to build on.

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    hotels from leftW SAnTIAGo, CHILE // FouR PoInTS by SHERATon TAIzHou, yuHuAn, CHInA // SHERATon DubAI MALL oF THE EMIRATES HoTEL, unITED ARAb EMIRATES // ALoFT CuPERTIno, CALIFoRnIA, unITED STATES

  • 6 LODG INGMAGAZ INE .COM JANUARY 2014

    PUBLISHERWilliam E. Corsini

    ASSOCIATE PUBLISHERJeffrey Cohen

    EDITOR Sean Downey

    CREATIVE DIRECTORShane Hickey

    MANAGING EDITORMegan Sullivan

    ONLINE EDITORDeidre Wengen

    PRODUCTION MANAGERJohn Mass

    CIRCULATION MANAGERJessica Noll

    SENIOR GRAPHIC DESIGNERSBill Hamilton, Brian Needles, Dave Tomko

    CONTRIBUTORSMarla Cimini, Patrick JP Ford, William D. Frye, Phil Hayward, Robert Mandelbaum, Gary McDade, Meghan Rabbitt, Eric Raskin, Vanessa Sinders, Anthony Stoeckert

    SALESSOUTHEAST/MIDWEST: Jeffrey Cohen678-587-5000, fax [email protected]

    NORTHEAST: Bob JoudaninDirector of Business Development201-594-1478, fax [email protected]

    WEST: Solomon Ortasse310-526-3988, fax [email protected]

    CLASSIFIED/MARKETPLACE: Tanya Kenevich215-321-9662, ext. 62, fax [email protected]

    MCNEILL MEDIA GROUP INC.PRESIDENT: Edward J. McNeill Jr.CHIEF OPERATING OFFICER: Donald FoyCONTROLLER: Lou TaicherEDITORIAL DIRECTOR: Jessica Downey

    AMERICAN HOTEL & LODGING ASSOCIATIONCHAIR: John Fitzpatrick

    VICE CHAIR: Jim Abrahamson

    TREASURER/SECRETARY: Mark Carrier

    IMMEDIATE PAST CHAIR: Ronald L. Vlasic

    PRESIDENT/CEO: Katherine Lugar

    EXECUTIVE VICE PRESIDENT/COO: Pam Inman

    EXECUTIVE VICE PRESIDENT/CFO: Joori Jeon

    VICE PRESIDENTS: Brad Aldrich, Kimberly Miles,Kathryn Potter, Vanessa Sinders

    FOUNDING EDITORS: James A. Pearson, and Frances L. Pearson

    Published by McNeill Group, Inc., Yardley, PA. Nothing contained in this publication shall constitute an endorsement by the American Hotel & Lodging Associ-ation, nor McNeill Group. AH&LA disclaims any liability with respect to the use or reliance on any such infor-mation. The information contained in this publication is in no way to be construed as a recommendation by AH&LA of any industry standard, or as a recommen-dation of any kind to be adopted or binding upon any member of the hospitality industry.

    FROM THE EDITOR

    Labor IntensiveIT WASNT TOO LONG AGO THAT EVERY JANUARY outlook story started out with a fi ngers-crossed plea for this to be the year that the lodging industry recovers. Now the same folks who wrote those stories routinely ask if the industry has peaked yet. In businesses that have as many moving parts as hotels do, these sorts of oversimplifi cations come about from spending too much time looking at everything through the prism of RevPAR and ADR.

    When you delve into the issues behind the numbers, you discover a story thats much more nuanced than the recovery vs. peak narrative allows. So we talked to four prominent lodging industry leaders and AH&LA o cers to get their take on what lies ahead for lodging (see The State of Lodging, page 40). One of the more interesting issues that came up during our interviews had to do with the living wage initiatives that have been cropping up across the country. These are increasingly successful grassroots e orts to raise the local minimum wage above the $12 per hour rate set by the federal government.

    Given how big a role labor plays in the lodging industry, these initiatives should be on the radar of every hotel owner this year. Simply looking at the numbers, labor is the biggest expense at most hotels, says Lodging contributor Robert Mandelbaum. Five cents of every dollar spent to operate a hotel goes to salary, wages, and benefi ts. As the director of Research Information Services for PKF Hospitality Research, Mandelbaum has seen the ups and downs of industry labor trends over the past 20 years.

    Historically, hotel managers have done a pretty good job of controlling the salary and wage component as a percentage of revenue, he says. This has averaged around 35 percent of revenue. Managers and owners havent been able to exercise the same amount of control over the benefi ts component, but that has more to do with government mandated taxes and health insurance. If you start mandating minimum wages, he says, then you take another cost management tool out of the hands of hotel managers. According to PKF, employee salaries and wages rose an average of 2.9 percent in 2012, while the cost of employee benefi ts grew by 5.4 percent.

    With all the projections of a banner year ahead, understanding details such as how the min-imum wage may change can help you take advantage of the overall growth in the industry and provide some incentive to get involved with legislative issues at the national and local level. And thats much better than worrying about whether RevPAR has peaked.

  • 866-832-6574 | [email protected] | LaQuintaFranchise.comThis is not an offering. Federal laws and regulations and the laws and regulations of some states and provinces regulate the offer and sale of franchises. An offering will only be made in compliance with those laws and regulations, which may require that we provide you with a disclosure document. (MNREG#4544). La Quinta Franchising, LLC. 909 Hidden Ridge, Suite 600, Irving, TX 75038. 2014 La Quinta Worldwide, LLC. All rights reserved.

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  • 8 LODG INGMAGAZ INE .COM JANUARY 2014

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    CONTRIBUTORS

    Meghan RabbittWhen Lodging tapped Ireland-based freelance writer and editor Meghan Rabbitt to profi le John Fitzpatrick (see An Innkeepers Story), her Irish friends and family were ex-cited. Everyone in Ireland knows and loves John because of his appearance on the U.K.-based TV show Secret Millionaire, she says. Johns generosity and kind spirit really came through on that show, as it did when I had the privilege of talking to him for this piece. Rabbitt has also contributed to Womens Health, Fitness, Yahoo!, and more.

    Colin LentonColin Lenton is a commercial and editorial photographer (and proud Kimpton inTouch member) based out of Philadelphia. For this issue he photographed John Fitzpatrick in the Liam Neeson Penthouse Suite at the Fitzpatrick Grand Central in New York City. Lenton spends his downtime hanging out with his beagle, Jefferson, and traveling with his girlfriend.

    Phil HaywardPhil Hayward is a seasoned writer and editor living in Alex-andria, Va. As the former editor of Lodging, he has nearly two decades of experience interviewing hotel execs. If you want to best understand and appreciate such people of accomplishment, you need to get a feel for them in their youth and rising through the industry, he says. Knowing Mike Doyle (see Balance and the Bottom Line) aspired to be a professional hockey player and now competes in Ironman competitions says reams about his character.

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    OPENINGS

    AT FIRST

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    OPENEDSEPTEMBER

    2013

    ROOMS800

    OWNEROMNI HOTELS AND RESORTS

    10 LODG I N GMAG A Z I N E . C OM JANUARY 20 14

  • JANUARY 2014 LODG INGMAGAZ INE .COM 11

    WITH THE OPENING OF THE 1.2 MILLION-SQUARE-FOOT

    MUSIC CITY CENTER LAST MAY, Nashville has emerged as a

    hotel development hotspot. The debut of the adjacent Omni Nashville

    Hotel marks an important milestone as the city establishes itself as a major lei-

    sure and convention destination. The projects architectural and design teams,

    including HKS Hill Glazier Studio and Looney and Associates, ensured that the

    21-story, 800-room property captured the distinct culture and character of

    Nashville. Vintage Nashville heirlooms accent the hotels warm, inviting spaces

    that resemble a family residence. Hotel guests are surrounded by musical inspi-

    ration, from old microphones and musical instruments to guitar- and musical-

    note-inspired patterns, carpet design, and light fi xtures. Nashville-related art

    in the guestrooms recalls postcards, travel sketches, and designs from Hatch

    Show Print, one of the oldest working letterpress print shops in America. The

    property offers more than 80,000 square feet of fl exible meeting space and

    more than 49,000 square feet of pre-function space. In addition, it boasts

    numerous dining and leisure options, including an all-day dining restaurant, a

    steakhouse, a live music venue, a coffee house, a spa, a fourth fl oor pool deck,

    and a luxury retail venue. An internal pedestrian pathway connects the hotel

    to the expanded Country Music Hall of Fame and Museum. Omni insists that

    everything from the materials used throughout the property to the food served

    and the art displayed there is refl ective of local cultural sensibilities.

    M U S I C C I T Y

  • JANUARY 2014 LODG INGMAGAZ INE .COM 13

    NEWS, IDEAS, AND INSIGHTS

    FRONT DESK

    IF MICHAEL DOYLE HAD SCORED JUST A FEW

    MORE GOALS or blocked a few more pucks while playing hockey at Cornell University, hotel asset management might be missing one of its more notable practitioners and industry proponents. A die-hard hockey player, Doyle figured on following his fathers footsteps into banking after a stint in the NHL. When Cornell recruited him to its hockey program, the pieces almost came together. Instead, two factors derailed his plans. Doyle proved to be an

    excellent collegiate hockey player but just not NHL caliber. At the same time, came the pull from another direction in his familys past: lodging.

    Doyles paternal grandfather had operated a small hotel in Ontario in the early 1920s to the mid-1950s and the profession had always exerted a gentle tug on him. To this day he keeps a postcard on his desk of his father and grandfather standing in front of the property. In transferring to the hotel school at Cornell, Doyle was not looking

    any further up the road than a career in operations. Asset management was not yet on his radar. After all, one doesnt simply sign up as an owners representa-tive and adviser and just get on with the business. But after 22 years of operating branded and independent full-service hotels in Toronto, Houston, New York, and Boston, where he now lives and works, Doyle is now the EVP of Capital Hotel Management (CHM) and the

    outgoing president of the Hospitality Asset Managers Association.

    And yet it wasnt until after a fi ve-year stint managing a collection of fi ve-star golf resorts that Doyle was ready to reassess his career path. I thought about going back to the hotel business as a general manager, he recalls. It was a comfort I had as well as a passion. But through his inter-action with CHM Co-Founder and President Chad Crandall, who was also the head of Cornells New England alumnae chapter, Doyle says he was presented with an opportunity to apply his skills toward learning the business

    Balance and the Bottom LineMICHAEL DOYLE EXEMPLIFIES HOW INTEGRAL ASSET MANAGERS ARE TO THE OWNERMANAGER EQUATION BY PHIL HAYWARD

    A good asset manager must have empathy

    for the property operations staff,

    brand managers, and his or her

    colleagues.

    BREAKAWAYMichael Doyle, EVP of Capital Hotel Management, left behind his hockey aspirations long ago to pursue a career in the lodging industry.

    S U C C E S S S T O R Y

  • 14 LODG INGMAGAZ INE .COM JANUARY 2014

    FRONT DESK

    MAJOR MARKETSCapital Hotel Managements port-folio includes the Westin Diplomat Resort and Spa in Hollywood, Fla. (left), and the Hyatt Regency Denver at Colorado Convention Center (right).

    through an owners perspective in the asset field. He joined CHM eight and a half years ago when the privately held company was four years old and still in growth mode. Today, the CHM portfolio includes 28 properties (14,463 rooms), most either urban landmark hotels, destination resorts, or convention center hotels. In 2013, CHMs portfolio of managed assets totaled $5 billion in value, making it the largest third-party manager of assets in the country.

    WHEN ASSET MANAGERS UNITEAs hotel ownership broadened beyond experienced owners in the 80s and 90s, when large portfolio investors with no lodging experience began to enter the field, third-party asset managers came into their own. By the time Doyle arrived at CHM, investors in the hotel industry included insur-ance companies, trade unions, pension funds, real estate investment trusts,

    and sovereign funds, which controlled billions of dollars in hotels and resorts. In 1992, the Hospitality Asset Managers Association launched to provide the field of third-party asset management with a collective voice as well as an educational vehicle to further the professionalism of its members. Doyle is the third executive from CHM to serve as president of HAMA and has just completed his term. He will remain on the board and return to his prior position in charge of internation-al membership. Its a critical group, because its a tremendous opportunity for those of us in the profession to network and share the experiences we all commonly face, so we can better understand

    The total value of Capital Hotel Managements portfolio of managed assets in 2013. The portfolio includes 28 properties and 14,463 rooms.

    $5 billion

  • JANUARY 2014 LODG INGMAGAZ INE .COM 15

    FRONT DESK

    Society of Hospitality Consultants and STR to update the current levels of monies recommend-ed to be set aside for the capital improvement of hotels. History is proving that its costing ownership greater amounts of money than what many of these management agreements are recommending be set aside, Doyle says. Its an area where we continue to be challenged as asset managers. Were working to be an integral part of the planning and oversight process with the brands to ensure that the monies are being spent appropriately and in a manner that brings value to the business.

    Currently, HAMA has 200 members responsible for more than 1 million rooms worldwide. It has chapters in Japan and Singapore and in 2014 will launch a Middle East and Africa chapter. We all know the brands have expanded aggressively internationally, and its no surprise were engaging with Japan and the Asia-

    Pacific region, Doyle says. They are facing many of the same issues, and so were expanding our work in sharing best practices and information. The template has been found to be very adaptable internationally.

    While Doyle may have long ago left behind his hockey aspirations, he never lost his love of athletics. Today he com-petes in Iron Man events, an all-season undertaking he trains for in any kind of weather. And, like asset management, he studies and measures his performance. In 2013, Doyle logged more than 4,100 miles. For 99.8 percent of the population, just finishing it is an accomplishment, Doyle says. Then, there is that little small per-centagemyself includedthat is always trying to do it faster.

    While demand has been slowing down, it is still growing well above the 20-year average. Supply is muted. When you have this imbalance of demand and supply, it bodes well for the overall key performance indicators.

    VAIL BROWN

    VP, Global Business Development

    and Marketing, STR

    Another year of economic growth in the range of 2 percent would typically suggest a rather sluggish recovery. But considering the sizable fiscal headwinds, the fact that the economy has sustained that growth is actually pretty good.

    WARREN MARR

    Managing Director, Hospitality &

    Leisure, PricewaterhouseCoopers

    Business investment and consumer spending correlate closely with the change in demand for luxury, upper upscale, and upscale hotels. Those segments are performing at a much higher level than the lower-priced hotels.

    MARK WOODWARD

    EVP, PKF Consulting

    AT THE HOSPITALITY LEADERSHIP FORUM, the top data-collecting agencies in hospitality dis-closed industry statistics and future projections.

    POISED FOR GROWTH GOOD ADVICE

    MICHAEL DOYLE SHARES SEVEN INGREDIENTS FOR SUCCESSFUL

    ASSET MANAGEMENT.

    Empathy. A good asset manager must have empathy for the property operations staff, brand managers, and his or her colleagues. Empathy comes with experience, which provides credibility among all parties. It enables effective assessment of a property or a brand well before the acquisition of a property. Experience. Without a sufficient level of experience you end up in an adversarial relationship. You will not understand the dynamics of why something may or may not work.Collaboration. Through collaboration you earn respect through ensuring that the teams you are working with know you are there to support them. At the end of the day, you are there to make them successful.Know the owner. Some owners will only want to hold on to an asset for one economic cycle while others prefer to hold them through multiple cycles. Knowing which allows the asset manager to better determine an approach with a new acquisition.Know the brand. Identify strategic initiatives to align the brand to those strategic initiatives. Know the property. Spend time with the property team in re-searching and understanding how the property is performing and what issues and opportunities may exist. How does the property really function and operate and whats the person-ality of each hotel?Hold the property, brand, and owner accountable. Establish objectives that not only ensure brand performance and hold-ing the property accountable but also ensure that ownership is going to do the things under its control to support those initiatives.

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    how to approach issues, Doyle says. Most issues that HAMA deals with are inherently embedded in the industry. Brands put forth standards and requirements that drive revenue to their bottom lines but not necessarily to the bottom lines of the asset owners. Thats where the hotel companies are always striving to improve the value of their brand, and they are doing so at the cost of the current owners, Doyle says. So we need to ensure the level and amount of spending is appropriate for the property we are involved with, and that it will not only bring benefits to the brands but for ownership as well.

    For example, HAMA is current-ly working with the International

  • 16 LODG INGMAGAZ INE .COM JANUARY 2014

    WHEN APPROACHED BY GOOGLE in August about getting involved with its new Business Photos platform, Dorothy Dowling, senior vice president of mar-keting and sales for Best Western International, didnt think twice about signing up. The new servicewhich uses Street View technologyo ers businesses, including hotels, the opportunity to show customers a 360-degree interac-tive tour of their properties. We knew the technology was going to be a game changer in how consumers shop for and book hotels on the Web, Dowling says.

    Best Western expects to roll out Business Photos at its 2,200 North American hotels by the end of 2014. Hilton is also following suit and will launch the platform at 96 of its hotels as part of the pilot program. We track our website, and the photo gallery is one of the most visited pages, says

    Eduardo Chapoval, general manag-er of the Hampton Inn and Suites Miami/Brickell-Downtown, one of the participating Hilton properties. Guests are looking at the pictures to make their decisions. Having that 360-degree view of an interactive tour will only help us.

    Hotels interested in taking advan-tage of Google Business Photos need to align with a photographer or agen-cy that has been trained and certifi ed to o er this type of technology. Rates vary by region, photographer, and

    project size, but there is no additional charge from Google to include the pho-tos on the search engines listing page or to embed the virtual tours on property websites. Best Western is o ering hotel owners and franchisees this service as part of a bigger digital upgrade package that will run approximately $900.

    Once hotels set up a shoot with a photographer, the process takes less than a dayoften just a few hoursto capture the whole property. There is little disruption to guests while the shoot is in progress, Dowling says. The fi nal prod-uctusually available to hotels within a few weekso ers a detailed panoramic view of guestrooms and public spaces that traditional photos cannot provide.

    More and more people are driven to the Internet to make their booking decisions, Chapoval says. The ability to have them click on the street, step into our hotel, take the elevator up to our lobby, and walk through the property like they are here is fantastic.

    A New Point of ViewGOOGLE BUSINESS PHOTOS CHANGES HOW CONSUMERS SHOP FOR HOTELS ONLINE BY DEIDRE WENGEN

    LOOK ALL AROUNDWith Business

    Photos,

    customers can

    take virtual

    hotel tours.

    Q U I C K TA K E

    Back InjuriesThe number one workplace safety challenge

    BY WILLIAM D. FRYE, PH.D., CHE

    Preventing back injuries is a major workplace safety challenge. If employees follow proper lifting techniques, the risk of on-the-job lower-back injuries can be avoided or minimized:

    Tuck your pelvis. This will tighten the stomach muscles and keep the back straight and in balance while lifting. It also shifts the weight of the employee more under the object to be lifted or carried.

    Bend your knees. By bending at the knees instead of the waist, the back remains straight and achieves a sense of balance. The strongest muscles in a humans body are the leg muscles and the strongest bone is the femur or upper leg bone. Therefore, let the legs do the lifting.

    Hug the load. Keep the object being lifted as close to the body as possible while straightening the legs to a standing position. Loads carried at arms length from the torso place excessive and unneeded strain on multiple parts of the body.

    Avoid twisting. Never twist at the waist or shouldersthis can overload the spine and lead to serious injury. Move the load as a single unit in conjunction with the entire body. Always keep the feet, knees, and torso pointed in the same direction when lifting.

    William D. Frye is coauthor of AH&LEIs textbook Managing Housekeeping Operations.

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  • 18 LODG INGMAGAZ INE .COM JANUARY 2014

    FRONT DESK

    AS PRESIDENT OF THE B.F. SAUL COMPANY HOSPI-

    TALITY GROUP, Mark Carrier lives and breathes hotel operations. The former IHG Owners Association chair relishes the opportunity to represent owners interests and address the big issues that impact the industry. In 2013, Carriers leadership as an advocate on Capitol Hill garnered him the Kemmons Wilson Service Award. Past recipients have included indus-try icons Mike Levin, John Q. Hammons, and Tom Corcoran. Now, as the new secretary and treasurer of AH&LAs board of directors, Carrier looks forward to making an even bigger impact on the industry.

    LODGING: How did you get into the lodging industry?

    CARRIER: I always had a food and beverage related job to pay the bills. I joined B.F. Saul after I graduated from Cornell because the company gave me a fast track to become a food and beverage director. I started out as a management trainee at a Hilton hotel we owned and worked my way up to food and beverage director, then regional director, and then I managed the companys development efforts. For the past 15 years, Ive been running the hotel side of the company.

    LODGING: What is your companys growth strategy?

    CARRIER: We have at least one new project on the drawing board right now. But our base of properties is largely in the Washington, D.C., region, so were a bit conservative these days around new development. The federal budget disruptions and the sequester have been dampening the demand in our region, so were being very careful about our future plans here in reaction to the fact that, unlike the majority of the country, were going through a pretty challenging period right now.

    LODGING: Have you been busy with renovations?

    CARRIER: Yes, we have had a significant renovation pro-gram across all of the brands we work with. Weve been focusing on a broad range of issueseverything from our guestrooms to repositioning our food and beverage outlets to renovating lobbies and installing new tech-nologies. Were maintaining the quality of the asset and keeping up with our guests changing demands.

    LODGING: Revenue management is one of your fo-

    cus areas. Why do you find the topic interesting?

    CARRIER: The way distribution has changed over the last decade has dramatically altered how we sell hotel rooms. To me its a seminal subject for our entire industry thats playing in the relationships of owners, brands, and third parties. So many things are in a bit of flux because were all dealing with what is a disruptive timeframe in the industry.

    LODGING: What are you looking forward to as

    AH&LA secretary and treasurer?

    CARRIER: I think we have a very exciting time ahead of us at the AH&LA. The new structure of the organiza-tion really brings together the interests of the major brands, owners, management companies, independent hotels, partner state associations, and allied members around a combined vision for the future of the hotel industry. Im just so pleased to see the tremendous progress the organization is making and very proud to be selected to be a part of that effort going forward.

    LODGING: What issues are you passionate about?

    CARRIER: Issues around government travel have both a broader industry policy perspective and a specific personal impact, so Ive been very involved in that. There is a whole range of issues AH&LA is focused on that impact my properties that we have concerns about, everything from things that are happening at the National Labor Relations Board, minimum wage, and how the Americans with Disabilities Act applies to hotels, to distribution and taxation fairness.

    Checking in

    Mark Carrier

    The number of hotels B.F. Saul Company Hospitality Group owns and operates. Its business class hotels are primarily affiliated with InterContinental Hotels Group, Marriott, and Hilton, as well as the storied Hay-Adams Hotel. 20

    BOTTOM LINE

    Title: President, B.F.

    Saul Company

    Hospitality Group

    Years with

    company: 30+

    First hotel job:

    Management trainee

    Hometown:

    Dennis, Cape Cod,

    Mass.

    Hotel must-haves:

    Great exercise room,

    fast and reliable WiFi,

    and healthy and

    diverse F&B options

    Best advice he

    ever got: Do it now.

    FAST FACTS

    JOEL KIMMEL

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  • FRONT DESKFRONT DESK

    The Trouble with TrollsTHE PATENT REFORM VICTORY IN THE HOUSE DEMONSTRATES THE POWER OF ENGAGED HOTELIERS BY VANESSA SINDERS

    WA S H I N G T O N D I S PAT C H

    WHEN THE HOUSE OF REPRESENTATIVES PASSED

    VIRGINIA CONGRESSMAN BOB GOODLATTES

    PATENT REFORM BILL on Dec. 5, it was a victory on many levels. These patent assertion entities (PAEs), also known as patent trolls, have had a big impact on the U.S. economy over the past decade. In most in-stances, these groups file frivolous, predatory lawsuits against small end users of technology who cant afford to wage expensive legal battles. This often results in financial settlements rather than court fights, and these suits cost the economy $80 billion each year.

    Members of Congress may disagree a lot, but they cant dispute the financial impact of these patent trolls which, according to a Boston University report published last year, cost the U.S. economy $29 billion a year in direct costs. The strong bipartisan vote of 32591 was a victory for Republican and Democrat leadership and reflected an understanding that this is

    20 LODG INGMAGAZ INE .COM JANUARY 2014

    something that cannot be allowed to continue.For one day at least, Congress set aside their partisan differences in order to protect the health and sustained growth of the U.S. economy.

    The successful passage of the patent bill also came as a result of a well-coordinated effort between AH&LA and its coalition partners in Washington. The level of sup-port shown on behalf of hotels and countless other small businesses across the country demonstrated the considerable impact of these lawsuits on end users.

    More important, the victory would not have been possible without an energetic grassroots effort by AH&LA members. Through a variety of tools, you have played a crucial role in relat-ing the importance of patent reform to the rest of our industry. Hoteliers across the country sent emails and letters to their members of Congress, urging them to support the bill.Our team received numerous calls and messages from state association executives, general managers, and many others asking, What can I do to help? Texas Hotel and Lodging Association (THLA) General Counsel Justin Bragiel was invited to testify at a congressional hearing on the impacts of patent trolls on his states hoteliers.And 32 of our partner states signed a letter sent to all 435 mem-bers of the House, reiterating the damage being caused by patent trolls.

    We also successfully used our media outreach capabilities to get our message out in many public

    A THREAT TO SMALL BUSINESSES In the case of the lodging

    industry, nearly 55 percent

    of our operators are

    small businesses, with

    facilities offering 75 rooms

    or less. These smaller

    mom-and-pop properties

    do not have the financial

    resources to fight [patent

    infringement] lawsuits in

    the courts, and in most

    instances find it necessary

    to simply pay the settle-

    ment amount to the alleged

    patent holder and put an

    end to the legal action. Here

    in Texas, more than 100

    hotels have been targeted

    by patent trolls in just the

    past year, and that number

    is growing.

    There also are significant

    repercussions of patent

    troll activity on the national

    economy. Since 2011, the

    number of these lawsuits

    has tripled for all types of

    smaller businesses. The

    cost to our economy is $80

    billion each yearequal to

    more than 40 percent of the

    entire Texas state budget

    for 2014-2015.

    excerpt from Scott

    Josloves Dec. 5, 2013,

    op-ed in The Hill

    Members of Congress may disagree a lot, but they cant dispute the financial impact of these patent trolls which, according to a Boston University report published last year, cost the U.S. economy $29 billion a year in direct costs.

  • JANUARY 2014 LODG INGMAGAZ INE .COM 21

    FRONT DESKFRONT DESK

    After months of planning and hard work, AH&LAs new membership model is in place. Moving forward, we are focusing our work around advocacy, communications, and education. From a policy standpoint, these are challenging times for our industry. Despite key victories by hoteliers in 2013, the challenges this year will be even greater.

    This month, we will unveil our new lodging agenda, highlighting our policy priorities and geared toward continued industry growth. AH&LAs advocacy is focused in three key areas. Workforce: More is happening in this space that can impact your bottom line than ever before. Whether its House passage of immigration reform, implementation of the health care law, or the introduction of harmful new labor regulations, its important to ensure that hoteliers continue to have access to a strong workforce. Travel and Tourism: We will work collaboratively with our travel and tourism partners to ensure policies are put in place to increase foreign travel to the United States and to demonstrate the value of balancing the continuation of government conferences and travel with responsible stewardship of federal funds. Distribution, Tax, and Finance: Its imperative that hoteliers be on a level playing eld with our friends in the online travel agencies. While they are an important part of the distribution system, our obligations to collect and remit sales tax should be the same. There will be many other issues in the tax debate in Washington that will impact your bottom line. And, of course, we will continue our work in others areas, such as extension of the terrorism risk insurance program and patent reform.

    The continued success of the U.S. lodging industry relies on the strong involvement of hoteliers from across the country. Whether youre an independent mom-and-pop establishment or a 300-room franchisee, theres a seat for everyone at the table in Washington. Our upcoming Legislative Action Summit, April 12 in Washington, is a great opportunity for you to engage directly with your congressmen and senators and emphasize lodgings importance to the economy. We look forward to working with each of you to make AH&LA a visible, vibrant, and e ective presence in our nations capital. Happy New Year!

    KATHERINE LUGARPresident and CEO, AH&[email protected]

    INSIDE AH&LAforums.By publishing our releases and statements in national outlets, from D.C.-based publications like Politico to wire services like Reuters, we made sure your voice was carried straight to the hometowns of many members of Congress who rely on your input.Social media was also very active, as a large number of the nearly 7,500 followers of our @AHLA and @AHLA_GovA airs Twitter feeds shared the information we posted on this bill and its importance to our industry.

    In an op-ed that ran in Washingtons The Hill news-paper (see A Threat to Small Businesses), THLA President and CEO Scott Joslove said the success of Rep. Goodlattes bill is of great concern to hotels and other businesses that purchase and use wireless technology, and the fi nancial security of all businesses and relief from unreasonable predatory lawsuits is at stake. His comments were widely seen by members of the House and their sta s, providing further strong rationale for them to vote for passage.

    Your efforts werent only reflected in the success-ful House vote, but also in the appreciation shown by Congress. AH&LAs governmental affairs team heard from several members of House leadership, Rep. Goodlattes staff, and the offices of other key congressmen responsible for crafting the final bill to express their thanks for all the association had done to achieve this success.Each email and phone call we received with the message great work wasnt just for the team here in Washingtonit was for every one of you who sent an email, wrote a letter, or picked up the phone.

    Work on patent reform still remains. A com-panion bill introduced by Vermont Sen. Pat Leahy is working its way through the committee process toward consid-eration in the Senate. But if our victories on the Goodlatte patent bill, passage of the Senate immigration bill, and an increase of the federal per diem rates are any in-dication, the influence of the U.S. lodging industry will only continue to grow in the halls of Congress and around the country. And we have our members to thank.

    Vanessa Sinders is AH&LAs senior vice president and department head of governmental a airs; ahla.com.

    The amount that patent troll law-suits cost the U.S. economy annually in lost revenues and productivity

    $80billion

  • JANUARY 2014 LODG INGMAGAZ INE .COM 23

    OWNERS MANUAL

    Made to OrderFOR HOTEL RESTAURANTS AND BARS, IT PAYS TO BE ADAPTABLE BY SEAN DOWNEY

    IN 2009, HOSTMARK HOSPITALITY renovated the lounge of a DoubleTree property it owned near the Tampa International Airport in preparation for the Super Bowl coming to town, converting it into a sports bar that featured 14 high-def fl atscreens and a menu stocked with Black Angus burgers, prime rib sliders, and chicken pesto paninis. Months later the company found that the hotel restaurant wasnt getting as much tra c as it had before the lounges renovation. For many guests, the restaurant couldnt compete with the sports bar, even though it featured an equally impressive menu. The restaurant was often empty because we had this new lounge experience and the guests wanted to be in there, says Hostmark CEO Jerry Cataldo. It was

    THE BUSINESS OF HOSPITALITY

    more social and a more relaxed environment. Hotel restaurants and bars arent as simple as assembling the right menu items, he says, you have to really understand what your guests are looking for if you want to turn a profi t. At the end of the day, our F&B bottom line went up because we were delivering what our guests want.

    When it comes to hotel F&B, it pays to be adaptable. In the case of the DoubleTree Tampa, says Cataldo, he didnt care where the guests were eating, just as long as he was capturing more of their business inside the hotel. You want to avoid a situation where your guests come to the hotel to do their business and then go out to restaurants in the area to meet friends and hang out, he says. Or if theyre staying in, then they dont really want

    S M A R T S T R AT E G Y

  • 24 LODG INGMAGAZ INE .COM JANUARY 2014

    OWNERS MANUAL OWNERS MANUAL

    to sit in a traditional restaurant environ-mentthey need something more lively.

    While it worked for the DoubleTree Tampa to serve up lunches and dinners in a sports bar environment, this obviously isnt a one-size-fits-all F&B solution. Each property needs to understand the specific value drivers of the guests it serves, says restaurant consultant Arlene Spiegel. For some hotels a grab-and-go option in the lobby is a better choice than a white glove full-service restaurant. Speigel says the key to success in any F&B offering is to be relevant and in that respect, traditional F&B concepts often dont hit the mark for guests anymore. Does the customer really need white tablecloth dining anymorenot really, adds Cataldo.

    Speigel says theres also a larger trend at work with many hotel brands looking at F&B differ-ently to figure out what customers want. New brand F&B concepts are being conceived to broad-en both the capabilities and the flexibility of the restaurant to incorporate more grab-and-go products or late night comfort food. This gives hotels more tools to capture revenue and to reinforce a propertys personality.

    But it isnt as simple as rolling out a new F&B concept and hoping it sticks. With the proliferation of lifestyle and boutique hotels over the last 10 to 15 years, hoteliers have learned how to use F&B to establish an awareness and identity for their hotels, says Cataldo. Traditionally hotel operators looked at these areas so separately that the F&B staff didnt work together with the rest of the staff at all. Now, he says, in many recently opened hotels, the F&B offer-

    ings set the tone for and are integral to what the entire hotel experience will be.

    For example, when Hostmark added the Ravello Lounge to the Amalfi Hotel in Chicago, the company concepted the bar around the Amalfi Coast in Italy, both in look and menu items inspired by region. The extra concepting work paid off when Hostmark eventually sold the property because the hotel had been able to make this limited-service operation feel like a full-service experience for guests.

    Theres more data available to us regarding what our customers want than there ever was before, says Cataldo. For instance, I can look at my compe-tition and find out the one thing guests love about a particular hotel is its large

    beer selection. This makes me more aware of what my poten-tial guests might be interested in. If hoteliers arent taking these things into consideration when designing new products then theyre going to miss the mark.

    It isnt going to get any easier either. I watched a child at a restau-rant playing with an iPad in his high chair and wondered what were going to deliver to that kid in 20 years, says Cataldo. What his generation will be looking for is going to be completely different than what my generation or my childrens generation expects.

    CheckMate, a new service focused on innovative hotel check-in and other hospitality services, recently announced the beta launch of its platform to help hotels and online travel agencies improve and enhance the guest check-in process. The white-labeled technology allows hotels and distributors to provide a better experience for hotel guests through mobile services. Travelers can request room preferences, communicate arrival times, receive last-minute upgrade offers, submit loyalty numbers, and receive room status alerts and other direct communication from the hotel in advance of arrival. Hotels can even use CheckMate to streamline check-in and allow guests to bypass the lines and wait at the front desk.

    FRESH INC

    F&B ConceptThe overall theme or impression that a

    restaurant, bar, or lounge is intended to

    convey. A well-designed F&B concept is

    reinforced by the architecture, the furni-

    ture and decorations, the menu items, and

    by the staff. As such, concepts are more

    than just cookie cutter approaches to

    hotel F&B, they are identity reinforcing

    features. Hotel brands are now

    considering F&B concepts at

    the earliest stages of develop-

    ment, says restaurant, retail,

    and foodservice consultant

    Arlene Spiegel. No longer

    is F&B an afterthought

    whereby architects reserve

    space for a restaurant and

    figure it out later in the design

    process. The restaurateur is now

    brought to the table from ideation to

    execution. This collaboration creates a

    mutually beneficial partnership where

    its in everyones interest to do the right

    thing. Speigel points to this relationship

    as what governs the menu, services,

    style, marketing and branding decisions

    for the life of the operations. Sean Downey

    E X P L A I N E R

    With the proliferation of lifestyle and boutique hotels, hoteliers have learned how to use F&B to establish an identity for their hotels. Jerry Cataldo, CEO, HOstmark HOspitality

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  • 26 LODG INGMAGAZ INE .COM JANUARY 2014

    THE U.S. MEETINGS MARKET has lagged in its recovery from the depths of the recession. While transient demand started to grow during the latter part of 2009, it wasnt until 2011 that significant gains were seen in group room nights. After two years of steady growth in the number of group events hosted by hotels, PKF Hospitality Research (PKF-HR) has observed some recent volatility in the volume of meetings being planned. According to the firms annual poll of meeting planners, the percentage of event organizers reporting an increase in the number of meetings they are respon-sible for rose from 2012 to 2013, but so did the number of planners reporting a decline in events.

    This is one of several mixed messages found when reviewing the results of PKFs 2013 survey of meeting planners. In October of 2013, a total of 66 planners located across the country answered questions about the events they were organizing for the year. While the sur-vey focused on events held in the southeast region of the nation, the meeting planners were located throughout the country. The findings cast some light on all the rea-sons why 2013 was fickle for the U.S. meetings market, as well as what planners see in the future.

    In addition to the mixed message regarding the change in number of events planned from 2012 to 2013, attendance levels improved for some planners but de-clined for others. More than half the planners surveyed (54 percent) indicated that the number of delegates at their meetings was up from 2012 levels. Roughly one quarter of these fortunate planners said their atten-dance increased greatly. Conversely, 18 percent of the respondents saw attendance at their meetings decline. However, it should be noted that none of the respon-dents indicated that attendance decreased greatly.

    Both of the percentages of planners reporting increas-es or decreases in attendance are greater than what was reported in the prior years survey, indicating volatility, not stability, in the meeting attendance figures. With event volume and attendance vacillating, it is not sur-prising that 46 percent of the planners surveyed report-ed an increase in their meeting expenditures during the year, but 41 percent said their expenditures remained the same. Rising event costs (venues, food, beverage, hotel rooms, travel) were cited as the main reason for any growth in expenditures, as opposed to a deliberate increase in the investment for meetings.

    Fickle ForecastMIXED MESSAGES FOR MEETINGS MARKET IN 2013 BY ROBERT MANDELBAUM AND GARY MCDADE

    Given the lack of intentional increases in expendi-tures, its interesting to note that food and beverage was ranked as the number one rising cost. This is in sharp contrast to last years poll that cited food and beverage expenditures as an area that planners were cutting back on. Part of the reason for this change in food and beverage spending trends may be attributable to the attitudes of hotel operators. The planners in our survey indicated that hotel managers were most willing to make price concessions for Internet access and meeting space. However, food and beverage and meeting services were much further down the list. Other items not frequently up for negotiation were cancellation fees and resorts fees.

    A change in the perceptions of meeting planners toward hotel room prices and availability is yet another indicator of the changing environment for meetings. In 2013, hotel room rates were ranked as the most im-portant criteria planners contemplate when deciding on a meeting venue. This is an increase from the No. 4 ranking this criterion received in 2012.

    One reason for the increased sensitivity toward room rates is a decline in perceived value. While 47 percent of the planners believed hotel rooms were fairly priced, 42 percent felt they were too high. Another reason is an

    MIXING AND MINGLINGAttendance levels improved

    for some meeting planners but

    declined for others.

    M A R K E T R E P O R T

    OWNERS MANUAL

    The percent of planners who in-dicated their number of meeting attendees was up from 2012 levelsPKF HOSPITALITY RESEARCH

    MEETING PLANNER SURVEY54%

  • acknowledgment by planners that market conditions, and therefore negotiating leverage, have turned in favor of the hotel sales managers. The percentage of planners fi nding it more di cult to locate available hotel rooms for 2014 than it was in 2013 went up from 18 percent to 23 percent. Conversely, the percentage of planners fi nding it easier to book rooms declined from 35 percent to 28 percent for the same period of time.

    Despite the acknowledgment that hotel rooms are be-coming scarcer, we see additional mixed messages when looking at planner expectations regarding the length of advanced time required to book a meeting. As expected, the percentage of planners indicating an increase in the length of the booking window rose from the 2012 to the 2013 survey. However, we also saw a rise in the number of planners reporting a decline in the booking window.

    One historical issue that appears to have subsided is the incidence of attendees booking their hotel rooms outside of the o ce group block. Only 10 percent of the survey participants cited this as a signifi cant problem. A majority of planners did indicate that they encourage hotels to limit the availability of alternative discounted rates. This is a solution that potentially benefi ts both the meeting planners and the hotel sales manager.

    We believe the volatility shown in 2013 is just a reac-tion by meeting planners to the inevitable stability that will occur in the market-place as the lodging industry approaches the top of the recovery curve. Of course, while at the top, market conditions will favor hoteliers. This could explain why a growing number of planners believe the overall health of the meetings industry will be worse in 2014 than it was in 2013.

    PKF-HRs September 2013 Hotel Horizons forecasts call for occupancy levels in excess of 70 percent in the luxury, upper-upscale, and upscale lodging categories. These are the chain scales in which most meeting hotels operate. Accordingly, we expect sales managers will continue to become more aggressive with their group-room rate pricing and less compelled to o er other price and service concessions.

    If meeting planners were mixed in their attitudes in 2013, they are becoming unifi ed in their frustration toward hotels in 2014 and beyond.

    Robert Mandelbaum is director of research informa-tion services and Gary McDade is a research associ-ate for PKF Hospitality Research (www.pkfc.com). Special thanks to Marlane Bundock, managing editor of ConventionSouth, for sponsoring the survey.

    A growing number of planners believe the overall health of the meetings industry will be worse in 2014 than it was in 2013.

    2012 to 2013 2013 to 2014

    JANUARY 2014 LODG INGMAGAZ INE .COM 27

    S U R V E Y O F M E E T I N G P L A N N E R S

    OWNERS MANUAL

    CONVENTIONSOUTH, P

    KF HOSPITA

    LITY RESEARCH LLC

    60%

    40%

    20%

    0%

    Better Worse Same

    2013vs. 2012

    2014vs. 2013

    2012 vs. 2011

    2011 vs. 2010

    2010 vs. 2009

    2010 2010 2010 2010 2011 2011 2011 2011 2011 2011 2012 2012 2012 2012 2012 2012 20132013201320132013 20142014201420142014

    44% 44% 43% 43%

    33%

    59%

    46% 49%

    5%9%

    42%49%

    7%

    15%13%

    PULSE CHECKA look at the overall health of meetings industry.

    SHORTER

    SAME

    LONGER

    0% 20% 40% 60%

    ADVANCE NOTICEPlanners send mixed signals regarding the length of the booking window.

    16%22%

    16%16%22%

    16%

    72%59%

    72%59%59%

    12%19%

    12%12%19%

    12%

    Majority of hotel room rates are still a great value

    Majority of hotel room rates are fair priced

    Majority of hotel room rates are too high

    0% 20% 40% 60%

    QUESTION OF VALUEResults show an increased sensitivity toward 2013 hotel room rates.

    11%

    47%

    42%

    11%

    47%

    42%

    60%

    40%

    20%

    0%

    Increased Decreased Stayed the Same

    Meetings from 2012 to 2013Meetings from 2011 to 2012Meetings from 2011 to 2012Meetings from 2011 to 2012Meetings from 2011 to 2012Meetings from 2011 to 2012Meetings from 2011 to 2012 Meetings from 2012 to 2013

    32%

    13%

    55%

    38%

    SPEAKING VOLUMESThe change in number of events indicates some recent volatility.

    Meetings from 2012 to 2013Meetings from 2012 to 2013Meetings from 2012 to 2013Meetings from 2012 to 2013

    14%

    48%

  • 28 LODG INGMAGAZ INE .COM JANUARY 2014

    OWNERS MANUAL

    AT 735 PROJECTS AND 121,163 ROOMS, the Latin America construc-tion pipeline reached a new peak at the end of the third quarter. Its a year-over-year (YOY) increase of 10 percent by projects and 11 percent by rooms. The total pipeline has been growing consistently since the recessionary bottom in early 2010 and now exceeds the pre-recessionary peaks established in 2008.

    Projects and rooms under construction, now at 345 projects and 56,961 rooms, are close to pre-recessionary levels with new project announcements driving the pipeline numbers up. These numbers have been at near peak for six quarters. However, new signs point to a potential economic slowdown throughout the region. With the excep-tion of Brazil and some recent improvements in Mexico, economic growth during the recovery years has only been modest and incremental if at all. The availability of fi -nancing, high interest rates, and a lack of cross-boarder investors have been the main restraints to Latin American hotel development. Potential cutbacks in bond buying by the U.S. Federal Reserve Bank are looming large for the future. E ects of a decline in stimulus could ripple through the region, further dampening economic growth and slowing both hotel operating statistics and new hotel development. As the worlds seventh largest economy, Brazil is the primary driver of pipeline growth in the region. The country has 56 percent of the total pipeline of rooms in the Latin America region and 78 percent of all pipeline rooms in South America. It also has a record high 401 projects and 67,787 rooms in the pipeline. Two world-class events, the 2014 World Cup and the 2016 Summer Olympic Games, have propelled development forward to accommodate a record fl ow of incoming tourists. Under construction counts have reached a new high in preparation of these events. At 175 projects and 29,797 rooms, the under construction stage for Brazil is 50 percent higher than its pre-recessionary peak.

    The pipeline in the remaining countries in South America stands at a total of 111

    The Latin BoomTHE CONSTRUCTION PIPELINES IN CENTRAL AND SOUTH AMERICA REACH NEW PEAKS BY PATRICK JP FORD

    BY THE NUMBERS

    Construction Pipeline by Region Latin America Q3 2013

    PROJECTS ROOMS (+/- Variance from Q3 2012)

    LAND OF OPPORTUNITYHome2 Suites by Hilton

    enters Latin America with

    its fi rst hotel in Mexico.

    B R E A K I N G G R O U N D

    40167,787B

    RAZIL

    +22%

    +20%

    11115,019OT

    HER SA

    COUNTRIES -13%

    -11%

    10616,059M

    EXICO +20%

    +41%

    7514,593

    THE

    CARIBBEAN -4%

    -4%

    427,705CE

    NTRAL

    AMERICA -14%

    -14%

    735121,163

    TOTA

    L LATIN

    AMERICA +10%

    +11%

    56,961The total number of rooms under construction in Latin America

  • JANUARY 2014 LODG INGMAGAZ INE .COM 29

    OWNERS MANUAL

    projects and 15,019 rooms, which is a YOY decline of 13 percent and 11 percent respectively. Under construction totals at 71 projects and 9,832 rooms are still in a bottoming formation. Far distant from Brazils totals, Argentina has the next largest pipeline in South America with 37 projects and 3,952 rooms, followed closely by Colombia with 30 projects and 5,336 rooms.

    Total pipeline rooms in Mexico have rebounded 50 percent in the last three quarters, though they are far from pre-recessionary peaks. Supported by an eight-quarter uptick in new project announcements, the countrys total pipeline currently stands at 106 projects and 16,059 rooms. An unusually high 83 percent of all pipeline projects are in the upscale and midscale chain scales. The number of hotels under construction has also bounced back and currently stands at 40 projects and 6,105 rooms.

    The Caribbean pipeline bottomed out in the fi rst quarter of 2011 and now stands at 75 projects and 14,593 rooms, which is a 4 percent decline YOY. Since the bottoming, project counts in the pipeline have varied from a low of 65 to a high of 82. New product announcements have been fl at for an extended period of time as have been projects

    under construction. As larger economies such as North America and Europe have recovered, so too has travel to the Caribbean. Hotel operating statis-tics in the Caribbean should exceed pre-recessionary peaks in 20142015 and begin to spark developer interest shortly thereafter.

    In Central America, the recovery for hotel oper-ating statistics is stalled as the region has experi-enced YOY declines in both 2012 and 2013. Early last decade there was a surge in development in the region precipitated by the expansion of the Panama

    Canal and the development of a number of new resort projects. Since then the region has been focused on the absorption of that new supply, which is proving to be di cult. The Central America pipeline stands at 42 projects and 7,705 rooms with Panama accounting for 62 percent of the project count. New product announcements in the region have been weak for seven quarters. At 21 projects and 4,249 rooms, the number of hotels under construction remains near area lows.

    Patrick JP Ford is an SVP of Lodging Econometrics; [email protected].

    51282,806

    TOTAL SOUTH

    AMERICA +12%

    +13%

    Rooms Currently

    Under Construction

    BRAZIL

    10 11 12 13

    3 4 1 2 3 4 1 2 3 4 1 2 3

    11,434

    29,797

  • 30 LODG INGMAGAZ INE .COM JANUARY 2014

    OWNERS MANUAL OWNERS MANUAL

    Win-WinHEALTHY RELATIONSHIPS BETWEEN OWNERS AND MANAGERS PROPEL GROWTH BY MARLA CIMINI

    WHEN A HOTEL OWNER PUTS A PROPERTY IN THE

    HANDS OF AN OPERATOR, cultivating a positive working relationship is vital to the performance and long-term success of the asset. But it isnt always easy to achieve a balance thats equitable for everyone involved. For David Duncan, president of Denihan Hospitality Group, his companys success largely depends on cultivating long-standing relationships with property owners. The fact that Denihan has own-ership in 60 percent of the 14 properties it currently manages helps foster these solid business partnerships.

    Denihan has grown from six to 14 upscale properties since 2006. Its client base of hotel owners ranges from publicly traded companies to private equity funds, and they provide a wealth of valuable information, such as benchmarking data and current industry observations. We use this as a mirror every day regarding how we are operating our hotels, Duncan says.

    As part of Denihans business model, the family-run management company deems it essential to have its own capital, specifically allocating funds to fuel growth and further solidify its alliance with the property own-ers. Having our own capital is a key to our success, Duncan points out. If we invest alongside of our owners, then our relationship is successful because we truly are partners. We work closely together, and together we determine the right allocation of capital and resources to maximize the real estate value of the hotels over time.

    In addition, Denihans ownership base is comprised of seasoned hotel industry pros who are tech-savvy, forward-thinking, and committed to continually enhancing the companys initiatives. The interesting part about our business is that our Internet presence is not only important to the guests but to the owners as well, Duncan notes. They can go on their iPads, lap-tops, or smartphones in the middle of the night and see how their property looks to the world, validating their confidence in our companys ability to properly market and position our hotels.

    Currently, siblings and co-CEOs Patrick Denihan and Brooke Denihan Barrett are at the helm, and they are committed to the companys philosophy and views about key management-owner rela-tionships. Today, Denihans portfolio of boutique lifestyle hotels features 11 New York City properties, including The James, The Benjamin, The Surrey,

    BUSINESS PLATFORMThe James Royal Palm in Miami -

    South Beach is owned by private

    equity firm KSL Capital Partners

    and managed by Denihan.

    STARTUP

    If we invest alongside of our owners, then our relationship is successful because we truly are partners. DaviD Duncan, PresiDent, Denihan hosPitality GrouP

    and several Affinia locations, as well as The James Chicago, The James Royal Palm in Miami, and the Liaison Capitol Hill in Washington, D.C.

    Duncan says the company is committed to doubling its size in the next five years. Growth plans involve a major U.S. expansion to the West Coast, where Denihan opened an office in 2011. The company is pursuing between 200 to 500 key urban core, conversion, and repositioning opportunities in major destinations such as Seattle, San Francisco, Los Angeles, San Diego, and Portland. We will be adding new propertiesbut only if they are the optimal partner, location, or extension of our brand, Duncan says.

    Having an ongoing, quality relationship with an owner is just one element that bolsters a management companys success. There are also the guest rela-tionships. We spend an incredible amount of time educating our 2,500 employees to respect our guests, and we make sure we spend the same amount of effort to ensure that our management team respects the owners, Duncan says. We listen to our employees and owners, and respond to their needs accordingly. Its been proven that the value of those relationships will help propel our growth.

  • 2014 AAHOA AnnualConvention & Trade Show

    March 19 - 22, 2014 Pennsylvania Convention Center & Philadelphia Marriott Downtown

    At the Annual Convention and Trade Show, AAHOA will excite and engage you with must-hear keynote speakers, general sessions, educational

    workshops and more!

    Dont Miss a Minute!

    Daymond John Founder & CEO of

    FUBU and TV Personality

    Featured speakers during the Convention will include:

    Mike WalshLeading authority on building business for

    the 21st century

    Fred ThompsonUnited States Senator

    from Tennessee, 1994-2002

    Robert GibbsFormer White House

    Press Secretary,2009 - 2011

    Register Today! Visit www.AAHOA.com/Convention

    7000 Peachtree Dunwoody Rd. NE, Building 7Atlanta, Georgia 30328 | (404) 816-5759

    An informative and robust debate featuring:

  • 32 LODG INGMAGAZ INE .COM JANUARY 2014

    OWNERS MANUAL

    Call to ActionHOTEL GM HELPS GUESTS NAVIGATE INSURANCE CLAIMS BY ANTHONY STOECKERT

    IN HIS JOB AS GENER-

    AL MANAGER of the Residence Inn Scripps Poway in San Diego, Calif., Trent Selbrede noticed that many of his customers had some-thing in commonthey had been displaced from their homes. Though not the result of natural disasters, guests were booking hotel stays due to house fi res and fl ooding. And attempting to put their lives and homes back together after experiencing such devastation often proved di cult. As I walked

    around and talked to our guests, I saw many extended-stay guests kind of dealing with the same issues over and over of trying to navigate their way through the insurance claim process with their homes, Selbrede says.

    B A C K S T O R Y

    At the time, Selbrede was enrolled at the San Diego State University L. Robert Payne School of Hospitality and Tourism Management. Part of his coursework included a capstone project where he was tasked with making an impact on the organization he worked for, ideally in regard to e ciency or revenue. Initially, he came up with ideas that he says were generic. But Selbrede was soon challenged by the programs director, former Burger King CEO J. Je rey Campbell, to come up with a plan that was bigger. Selbredes thoughts turned to those displaced guests.

    I thought, if I could find a way to serve them better and help them understand some of the lessons from previous guests or direct from a number of sources, it would help them navigate their way through the process, Selbrede says.

    Trent Selbrede did a terrific job in our program from start to finish, and his capstone project was an example of his powerful drive to succeed and his deep knowledge of his industry, says Campbell, who prides himself in the highly personal and interac-tive nature of the masters program.

    Selbrede called his project a Thrival Resource Guide and made it available to guests at the Residence Inn Scripps Poway. He says he started working on the guide about a year ago, and now its being used in his hotel as well as the Residence Inn located in Carlsbad, Calif. Plans are underway to get the guide into all Residence Inns within San Diego County.

    According to Selbrede, the guide provides information about water damage and restoration, along with questions to ask contrac-tors and insurance adjusters. It addresses questions such as: If I had an inch of water in my house, why do I have to take out 4 feet of drywall all around the house? People really dont understand how damaging it is, he says.

    The guide does not offer specific advice about issues but is de-signed to get people on the path to solving their issues. Its strictly questions and prompts that might help you get through your proj-ect maybe a little bit quicker and maybe with less of a headache.

    Selbrede makes it clear that hes not giving legal advice. He says he received feedback from about 25 guests about problems they had with insurance companies. As he heard similar stories, he started collecting ideas. I collected information from in-house guests, about 25 of them, and a few restoration companies that actually restore homes after a disaster, as well as insurance agents who were very customer-service oriented, he says. I used all of them as a resource to put together a collection of information for our guests.

    The guides first format was a trifold brochure of basic informa-tion, and now its a three-ring binder. Guests who check in through their insurance or restoration company are told about the guide.

    The program has helped the Residence Inn Scripps Poway bring in business, particularly through restoration companies that have referred customers to the franchise. The restoration companies are what we envision as our best referrers, Selbrede says. Just interviewing three restoration companies, we got another $25,000 bookings out of one of them.

    I saw many extended-stay guests kind of

    dealing with the same issues over and over of trying to navigate

    their way through the insurance claim process

    with their homes.

    TRENT SELBREDE, GENERAL MANAGER, RESIDENCE

    INN SCRIPPS POWAY

  • April 24, 2014SOUTHERN CALIFORNIA REGION

    Wyndham Orange County | Costa Mesa, CA

    Early Bird Rate (until Feb. 19, 2014): $149Full Rate (after Feb. 19, 2014): $298

    May 22, 2014SOUTHEAST REGION

    Orlando, FL (Call for hotel information)

    Early Bird Rate (until March 27, 2014): $149Full Rate (after March 27, 2014): $298

    June 19, 2014SOUTHWEST REGIONOmni Dallas | Dallas, TX

    Early Bird Rate (until April 24, 2014): $149Full Rate (after April 24, 2014): $298

    July 17, 2014MID-ATLANTIC REGION

    Wyndham Philadelphia | Mount Laurel, NJ

    Early Bird Rate (until May 29, 2014): $149Full Rate (after May 29, 2014): $298

    Current Schedule of LODGING Regional Events and Early Bird Rates: (All registration fees include breakfast, lunch, refreshment breaks and evening reception.

    Attendee rates shown below are for qualifi ed non-suppliers. Supplier attendees pay a fl at rate of $595.)

    The LODGING REGIONAL INVESTMENT & DEVELOPMENT CONFERENCES are designed with a focus on selected hotel markets identifi ed as active for investment and future development. These ONE-DAY regional conferences will run the gamut from the ABCs of hotel ownership, franchise law and hotel fi nancing to operations management, site selection and regional economic information for that area. There will be a two-hour session for speed meetings prior to the evening networking reception. Network and share best practices with regional hotel owners, commercial property owners/investors, franchisees from other industries, hotel brand executives and market consultants. If you are interested in hotel ownership and development, you cannot afford to miss the event in your region!

    SEE LODGINGEVENTS.COM FOR ADDITIONAL DETAILS AND TO REGISTER AS AN ATTENDEE. SUPPLIERS MAY CALL PUBLISHER BILL CORSINI AT 215-321-9662 EXTENSION 41 TO INQUIRE ABOUT SPONSORSHIP OPPORTUNITIES.

    SAVEBIG

    Register today!

    2014 LODGING EVENTS

    PRODUCED BY LODGING MEDIApublisher of Lodging magazine

    2014

    PRODUCED BY LODGING MEDIAPRODUCED BY LODGING MEDIA

    C O N F E R E N C E S

    WHO SHOULD ATTEND?Hotel owners and investors | Commercial property owners | Non-hotel franchise owners looking for hotel ownership opportunities | Commercial real estate brokers | Commercial lending institutions

    Property management companies | Professional service providers (law fi rms, fi nance and accounting firms, title companies, architects, general contractors, etc.)

  • John Fitzpatrick is the consummate hotelier, and hes taking his expertise to a whole new level as the 2014 AH&LA chair

    INNKEEPERSSTORY

    AN

    34 LODG I NGMAG A Z I N E . C OM JANUARY 2014

    B Y M E G H A N R A B B I T T

    2014 AH&LA CHAIR

    COLIN LENTON

  • JANUARY 2014 LODG INGMAGAZ INE .COM 35

    Fitzpatrick enjoys a properly poured Guinness from the Wheeltapper Pub at the Fitzpatrick Grand Central.

  • 36 LODG INGMAGAZ INE .COM JANUARY 2014

    While they spent their free time at local playgrounds building sand castles, Fitzpatrick played in an actual cas-tle. He practiced hurling, a Gaelic game most Irish kids play, on the castles sprawling green lawn. He dodged the chef after grabbing a few sausages or a piece of chocolate cake o a plate while he ran through the massive kitchen.

    Fitzpatrick wasnt royalty. His parents, Paddy and Eithne, owned Killiney Castle, a property they bought as a small guesthouse and turned into a 20-room hotel when Fitzpatrick and his three siblings were growing up. Some of my earliest memories are running around

    that hotel, says Fitzpatrick. While other kids my age were hanging around play-grounds, Id be up in the corridors with my dad, watching walls come down for an expansion. The hotel was a big play-ground for me. My whole life has been the business, really, and I knew from an early age this is what I wanted to do.

    And so even before Fitzpatrick was old enough to work, he was doing what he could to help his parents around the castle. He cleaned. He mowed the lawns. At 16,

    he landed his fi rst real job in the kitchen, peeling potatoes, washing dishes, and causing the same kind of trouble he did as a 7-year-old. John was just like all kids whod rob the sweets shop; you had to keep a close eye on the food once he started working in the kitchen, says Sean Dempsey, who was a junior chef when Fitzpatrick worked in the kitchen and whos still with the hotel (now called Fitzpatrick Castle) to this day, as exec-utive chef. And while a sausage or two mightve gone missing when Fitzpatrick was working, he was a great help, says Dempsey. In the evenings, John would

    IN THE EARLY 1970S IN KILLINEY, IRELANDA TOWN JUST SOUTH OF DUBLIN AND NEAR THE IRISH SEA

    YOUNG JOHN FITZPATRICK WASNT LIKE MOST OF HIS GRADE SCHOOL FRIENDS.

    2014 AH&LA CHAIR

    From a very early age,

    my father said to me,

    Remember, no matter how

    big you get or how many

    hotels you own, youre still an

    innkeeper. If you remember

    that, youll never go wrong.

    JOHN FITZPATRICK, PRESIDENT AND CEO, FITZPATRICK HOTEL GROUP

    work at the hotel after school. I think he worked every job there was.

    Fitzpatrick was carrying on a family tradition. His father worked in hotels all his life, taking his fi rst job at the Gresham hotel in Dublin when he was 17 and climbing the ranks quickly. After managing hotels in County Clare and in Wexford, he headed back to Dublin, where he managed the Doyle group of hotels. My father started his career in the hotel industry from the ground up and insisted the rest of the family do the same, says Fitzpatrick. Dad always told us, You cant ask someone to do a job you

    havent done yourself. The advice Fitzpatricks father gave him as a boy growing up in a hotel has helped John in his current role, running the only two Irish-owned hotels in New York City: the Fitzpatrick Manhattan and the Fitzpatrick Grand Central. These are hotels in which everyone from Irish dignitaries to Irish rock stars have stayed. Theyre hotels where the Irish in New York Citywhether visiting or living thereknow they can get a decent pint of Guinness, real sausages, and brown bread, which Fitzpatrick ships over from Ireland because, he says, the U.S. versions just dont taste the same.

    Perhaps thats why in the aftermath of 9/11, the Fitzpatrick hotels became a refuge for stranded Irish travelers and even the Irish looking to locate relatives living in New York City. In the days after the attacks on the World Trade Center, calls from Ireland poured in to the Fitzpatrick hotels from Irish parents with children working in New York. When they couldnt get in touch with their kids because cell phone service

    IN THE EARLY 1970S IN KILLINEY, IRELANDA TOWN JUST SOUTH OF DUBLIN AND NEAR THE IRISH SEA

    YOUNG JOHN FITZPATRICK WASNT LIKE

    IRELANDA TOWN JUST SOUTH OF

    YOUNG JOHN FITZPATRICK WASNT LIKE

    IN THE EARLY 1970S IN KILLINEY, IRELANDA TOWN JUST SOUTH OF DUBLIN AND NEAR THE IRISH SEA DUBLIN AND NEAR THE IRISH SEA

  • JANUARY 2014 LODG INGMAGAZ INE .COM 37

  • 38 LODG INGMAGAZ INE .COM JANUARY 2014

    was out, they knew they could call the place where their kids would go for a drink or two after work. Likewise, regulars rushed to the Fitzpatrick hotel bars, asking Fitzpatrick to take their names because they knew their worried families would

    call. Fitzpatrick then worked with the Irish embassy, exchanging lists of people who were accounted for and helping to put many Irish mothers minds at ease.

    Its something Fitzpatrick says his father wouldve done. From a very early age, my father said to me, Remem-ber, no matter how big you get or how many hotels you

    own, youre still an innkeeper. If you remember that, youll never go wrong. Fitzpatrick says he owes much of his success to the infl uence of his father, though hes quick to add that his mother Eithne was also an important role model and driving

    force in the growth of Fitzpatrick hotels. My dad wouldnt have been the success he was without her, says Fitzpatrick. Dad would bring her into the fi nal deal at the last minute and shed clinch it. When his mother died in 1994, Fitzpatrick founded the Eithne Fitzpatrick Memorial Fund in her honor, with the mission of making a signifi cant impact on the lives of those in need. When his dad died in 2001, the fund became the Eithne and Paddy Fitzpatrick Memorial Fund. I didnt want my parents to be forgotten.

    Fitzpatrick says hell always admire the guts it took for his parents to build their fi rst hotel. After my father had a row with his boss at the Doyle hotel group, my parents decided to branch out on their own, says Fitzpatrick. They mortgaged everything to buy the castle guesthouse that my father turned into the Killiney Castle.

    When Fitzpatrick fi nished secondary school, he worked as a junior manager at Killiney Castle. But his father decided John needed more schooling, so he sent him to the prestigious hotel management course at UNLV in Las Vegas. I think it was really just an excuse for him to visit me, because my father

    caption

    I call [John Fitzpatrick] the energizing bunny.