Aug 29, 07 | 1:57 am
By Colleen Clark
The sample rates are for a double room on a weekday this month.
WORLDWIDE
Barceló Hotels & Resorts
Properties: 129 properties, in 14 countries, that include the moderately priced Barceló Comfort hotels and the more stylish Barceló brand. Based in Spain. Sample rate: $161, at Barceló Valencia. barcelo.es
Domina Hotels & Resorts
Properties: 11 hotels in Europe and North Africa, often with locally influenced decor, on-demand movies, and concierges. Based in Italy. Sample rate: $136, at the Domina Inn Fiesta in Budapest. dominahotels.com
Etap Hotel
Properties: 370 low-budget locations in 11 countries--standard rooms contain a double bed, a bunk, and a bathroom. Based in France. Sample rate: $59, at the Etap Hotel Nice Palais Nikaïa in France. etaphotel.com
Husa Hoteles
Properties: More than 160 properties that run the gamut from remote resorts to inexpensive city hotels, in countries like Spain, Belgium, France, Argentina, and Egypt. Based in Spain. Sample rate: $88, at the Husa Arcipreste de Hita in Madrid. husa.es
Iberostar Hotels & Resorts
Properties: 100 properties, most located beachside with swimming pools and large gardens, in Europe, South America, the Caribbean, and North Africa. Based in Spain. Sample rate: $248, at the Iberostar Playa de Muro in Majorca. iberostar.com
Ibis Hotels
Properties: 800 mid-level hotels, with 24/7 reception and other services, in 38 countries. Based in France. Sample rate: $94, at the Ibis Warszawa Centrum in Poland. ibishotel.com
Mercure
Properties: 762 properties that are spread around the world (52 countries) and vary widely--some are stylish and chic, while others are more motel-like. Based in France. Sample rate: $145, at Mercure Sydney. mercure.com
Novotel
Properties: 397 large hotels with restaurants and lounges, in 54 countries. Based in France. Sample rate: $79, at the Novotel Xin Qiao Beijing in China. novotel.com
Pestana Hotels & Resorts
Properties: 38 properties that include beachfront high-rises and spa resorts, with a variety of room sizes and styles--many equipped with kitchens--in Portugal, Brazil, Mozambique, South Africa, Cape Verde, and São Tomé and Principe. Based in Portugal. Sample rate: $94, at the Pestana Atalaia, in Madeira, Portugal. pestana.com
Riu Hotels & Resorts
Properties: 105 locations, many all-inclusive, in resort areas of North Africa, Mexico, the Caribbean, and Europe. Based in Spain. Sample rate: $179 per person (all-inclusive), at the Hotel Riu Palace Cabo San Lucas. riu.com
Sol Meliã
Properties: 318 properties in 30 countries operating under six brands that include Sol Hotels, which are typically near a beach and have kid-friendly restaurants; Tryp Hotels, which also target families but are more likely to be in cities; and the new boutique-style ME by Meliã. Based in Spain. Sample rate: $64, at Tryp Burlada in Pamplona, Spain. solmelia.com
Tuesday, August 28, 2007
Viejas unveils plans for $800 million resort and casino project
Aug 29, 07 | 1:57 am
The Viejas Band of Kumeyaay Indians announced plans for an $800 million resort and casino project.
The Viejas resort and casino expansion plans include:
A new casino
A hotel, with a spa, retail outlets and restaurants
Resort cabana, pool area
Conference & banquet space
A movie theater
A new parking structure
A co-generation power plant
The new casino and resort are scheduled for completion in 2012 and will be located adjacent to the existing Viejas Casino, on the Viejas Reservation off of I-8 east of San Diego. Opened in 1991, the original Viejas Casino & Turf Club now boasts 2,500 slot machines, more than 80 table games, a poker room, bingo hall, lounges, six restaurants, and is considered one of the most successful tribal government casinos in California.
Viejas Tribal Chairman Bobby L. Barrett stated: “Our tribe has a gaming agreement with the state that has been in place since 2004. This agreement has worked well and has benefited our tribal members, residents of San Diego County, and state taxpayers. Under terms of this agreement, Viejas plans to enter into negotiations with San Diego County over certain local issues. Our track record – including a casino expansion in 2005 – demonstrates Viejas’ commitment to negotiating in good faith and being a good neighbor that creates local jobs and gives back to the local community. We look forward to working with County Supervisor Jacob and others as we negotiate a similar understanding for this resort and casino expansion, which will put San Diego County on that map as having one of the premier gaming and entertainment destination resorts in the country.”
Viejas plans to hold community meetings to gain public input and provide updates on further details as they develop.
Viejas Enterprises started in 1976 with only an RV park and has grown into a profitable business entity consisting of: Viejas Casino; Viejas Outlet Center; Viejas Entertainment & Production; Broadcast Companies of America, which operates three radio stations; Ma-Tar-Awa RV Park; Alpine Springs RV Park; Borrego Springs Bank, N.A.; and Three Fires, LLC and Four Fires, LLC, two tribal economic development coalitions that have developed hotels in Sacramento and Washington, D.C.
As a sovereign government recognized by the United States, Viejas Tribal Government operates a fully functional, modern government structure and has a strong government-to-government relationship with the members of the local, state and national government. Maintaining economic self-sufficiency for the members of the Viejas Tribe is the main goal of the Tribal Government. Largely through tribal government gaming revenue, Viejas Tribal Government provides its members with services including housing, health care, education and fire protection.
Source: BusinessWire
The Viejas Band of Kumeyaay Indians announced plans for an $800 million resort and casino project.
The Viejas resort and casino expansion plans include:
A new casino
A hotel, with a spa, retail outlets and restaurants
Resort cabana, pool area
Conference & banquet space
A movie theater
A new parking structure
A co-generation power plant
The new casino and resort are scheduled for completion in 2012 and will be located adjacent to the existing Viejas Casino, on the Viejas Reservation off of I-8 east of San Diego. Opened in 1991, the original Viejas Casino & Turf Club now boasts 2,500 slot machines, more than 80 table games, a poker room, bingo hall, lounges, six restaurants, and is considered one of the most successful tribal government casinos in California.
Viejas Tribal Chairman Bobby L. Barrett stated: “Our tribe has a gaming agreement with the state that has been in place since 2004. This agreement has worked well and has benefited our tribal members, residents of San Diego County, and state taxpayers. Under terms of this agreement, Viejas plans to enter into negotiations with San Diego County over certain local issues. Our track record – including a casino expansion in 2005 – demonstrates Viejas’ commitment to negotiating in good faith and being a good neighbor that creates local jobs and gives back to the local community. We look forward to working with County Supervisor Jacob and others as we negotiate a similar understanding for this resort and casino expansion, which will put San Diego County on that map as having one of the premier gaming and entertainment destination resorts in the country.”
Viejas plans to hold community meetings to gain public input and provide updates on further details as they develop.
Viejas Enterprises started in 1976 with only an RV park and has grown into a profitable business entity consisting of: Viejas Casino; Viejas Outlet Center; Viejas Entertainment & Production; Broadcast Companies of America, which operates three radio stations; Ma-Tar-Awa RV Park; Alpine Springs RV Park; Borrego Springs Bank, N.A.; and Three Fires, LLC and Four Fires, LLC, two tribal economic development coalitions that have developed hotels in Sacramento and Washington, D.C.
As a sovereign government recognized by the United States, Viejas Tribal Government operates a fully functional, modern government structure and has a strong government-to-government relationship with the members of the local, state and national government. Maintaining economic self-sufficiency for the members of the Viejas Tribe is the main goal of the Tribal Government. Largely through tribal government gaming revenue, Viejas Tribal Government provides its members with services including housing, health care, education and fire protection.
Source: BusinessWire
Barcelo hotels & resorts expands with 20 hotels in United Kingdom
Aug 29, 07 | 1:58 am
Spain-based Barcelo Hotels & Resorts has arrived at an agreement by which it will manage the prestigious Paramount Hotel chain, consisting of 20 four and five star properties throughout Great Britain.
Barcelo Hotels & Resorts today announced an agreement with Dawnay Shore Hotels PLC, the owner of the Paramount Hotel chain, to manage the company's 20 hotels throughout the United Kingdom. Beginning this September, Barcelo will be the management company of record for the chain of four and five star hotels located throughout England, Scotland and Wales. This is Barcelo's first move into the British hotel market, and could lead to further expansion throughout the UK. Barcelo presently operates hotels and resorts in 15 countries worldwide.
The hotels in the Paramount portfolio that will be managed by Barcelo include:
-- Paramount Angel Hotel, 102 rooms, Cardiff, Wales
-- Paramount Imperial Hotel, 151 rooms, Torquay, South England
-- Paramount Redworth Hall Hotel, 143 rooms, Durham, North England
-- Paramount Hotel Daventry, 155 rooms, Northamptonshire, Central England
-- Paramount Hinckley Island Hotel, 349 rooms, Birmingham, Central England
-- Coombe Grove Manor Hotel, 42 rooms, Bath, South England
-- Paramount Basingstoke Hotel, 100 rooms, Hampshire, South England
-- The Paramount Old Ship Hotel, 152 rooms, Brighton, South England
-- Paramount Palace Hotel, 122 rooms, Buxton, North England
-- Paramount Cheltenham Park Hotel, 152 rooms, Central England
-- Shrigley Hall Hotel, 150 rooms, Cheshire, North England
-- Lygon Arms Hotel, 69 rooms, Broadway, Central England
-- Paramount Walton Hall Hotel, 130 rooms, Stratford, Central England
-- Paramount Imperial Hotel, 180 rooms, Blackpool, North England
-- Paramount Majestic Hotel, 156 rooms, Harrogate, North England
-- Billesley Manor, 72 rooms, Stratford upon Avon, Central England
-- Paramount Oxford Hotel, 168 rooms, Oxford, Central England
-- Paramount Carlton Hotel, 189 rooms, Edinburgh, Scotland
-- Paramount Marine Hotel, 89 rooms, Troon, Scotland
-- Paramount Stirling Highland Hotel, 96 rooms, Stirling, Scotland
Although this is Barcelo's first move into the UK market, the Barcelo brand is well-known to UK travelers who have enjoyed staying at Barcelo Hotels and Resorts throughout Europe and Latin America. Each of the UK hotels will become part of the Barcelo Premium brand. Many of the properties are located in historic buildings and all contain contemporary amenities and services for business and leisure travelers.
The agreement with Dawnay Shore Hotels has been implemented by means of a long-term rental contract of 45 years and is part of Barcelo's strategic growth strategy throughout Europe. Barcelo intends to maintain the current structure and management team of the UK hotels.
Following this agreement, Barcelo becomes the leading Spanish-owned hotel company in Great Britain, and the UK becomes Barcelo's third largest country of operation, behind Spain and the US. With this agreement, Barcelo surpasses 150 hotels worldwide, meeting its growth objective through the end of 2007 several months early.
Spain-based Barcelo Hotels & Resorts has arrived at an agreement by which it will manage the prestigious Paramount Hotel chain, consisting of 20 four and five star properties throughout Great Britain.
Barcelo Hotels & Resorts today announced an agreement with Dawnay Shore Hotels PLC, the owner of the Paramount Hotel chain, to manage the company's 20 hotels throughout the United Kingdom. Beginning this September, Barcelo will be the management company of record for the chain of four and five star hotels located throughout England, Scotland and Wales. This is Barcelo's first move into the British hotel market, and could lead to further expansion throughout the UK. Barcelo presently operates hotels and resorts in 15 countries worldwide.
The hotels in the Paramount portfolio that will be managed by Barcelo include:
-- Paramount Angel Hotel, 102 rooms, Cardiff, Wales
-- Paramount Imperial Hotel, 151 rooms, Torquay, South England
-- Paramount Redworth Hall Hotel, 143 rooms, Durham, North England
-- Paramount Hotel Daventry, 155 rooms, Northamptonshire, Central England
-- Paramount Hinckley Island Hotel, 349 rooms, Birmingham, Central England
-- Coombe Grove Manor Hotel, 42 rooms, Bath, South England
-- Paramount Basingstoke Hotel, 100 rooms, Hampshire, South England
-- The Paramount Old Ship Hotel, 152 rooms, Brighton, South England
-- Paramount Palace Hotel, 122 rooms, Buxton, North England
-- Paramount Cheltenham Park Hotel, 152 rooms, Central England
-- Shrigley Hall Hotel, 150 rooms, Cheshire, North England
-- Lygon Arms Hotel, 69 rooms, Broadway, Central England
-- Paramount Walton Hall Hotel, 130 rooms, Stratford, Central England
-- Paramount Imperial Hotel, 180 rooms, Blackpool, North England
-- Paramount Majestic Hotel, 156 rooms, Harrogate, North England
-- Billesley Manor, 72 rooms, Stratford upon Avon, Central England
-- Paramount Oxford Hotel, 168 rooms, Oxford, Central England
-- Paramount Carlton Hotel, 189 rooms, Edinburgh, Scotland
-- Paramount Marine Hotel, 89 rooms, Troon, Scotland
-- Paramount Stirling Highland Hotel, 96 rooms, Stirling, Scotland
Although this is Barcelo's first move into the UK market, the Barcelo brand is well-known to UK travelers who have enjoyed staying at Barcelo Hotels and Resorts throughout Europe and Latin America. Each of the UK hotels will become part of the Barcelo Premium brand. Many of the properties are located in historic buildings and all contain contemporary amenities and services for business and leisure travelers.
The agreement with Dawnay Shore Hotels has been implemented by means of a long-term rental contract of 45 years and is part of Barcelo's strategic growth strategy throughout Europe. Barcelo intends to maintain the current structure and management team of the UK hotels.
Following this agreement, Barcelo becomes the leading Spanish-owned hotel company in Great Britain, and the UK becomes Barcelo's third largest country of operation, behind Spain and the US. With this agreement, Barcelo surpasses 150 hotels worldwide, meeting its growth objective through the end of 2007 several months early.
Cornell Study finds restaurants make wise use of capital
Aug 29, 07 | 1:59 am
A commonly used assessment of a company's short-term liquidity paints too pessimistic a picture of restaurants, according to a new study from the Cornell Center for Hospitality Research. The study, "Short-term Liquidity Measures for Restaurant Firms: Static Measures Don't Tell the Full Story," analyzed restaurants using an integrative measure of liquidity, which takes into account both the firm's operating and financial sources of capital. The Report, written by Linda Canina and Steven Carvell, is available at no charge from the Cornell University Center for Hospitality Research website at http://www.hotelschool.cornell.edu/research/chr/pubs/reports/2007.html. Canina and Carvell are both associate professors at the School of Hotel Administration, and Carvell is associate dean of academic affairs at the school.
Liquidity measures attempt to gauge a company's ability to cover its short-term financial obligations. The most common approach is to apply static measures, such as the current ratio or the quick ratio. But those measures assume that the company's current assets are being sold.
In contrast, the dynamic measures take into account a company's ability to generate operating capital-that is, to cover its obligations and continue to operate. "We compared restaurant and manufacturing firms using both static measures of liquidity and dynamic measures," said Canina. "The static measures imply that manufacturing companies are far more liquid than are restaurant companies, but the integrative framework told a different story."
In the dynamic test, restaurant firms were shown to be more liquid than were manufacturing firms, based on their financial and operating liquidity. "Our analysis suggests that financial analysts, creditors, and managers should evaluate both dynamic liquidity measures and static measures in assessing short-term liquidity," Canina added. "We believe that this finding that restaurants, particularly owner-operator firms, have high operating liquidity should be an argument for favorable financing terms, even though static ratios make restaurants seem like poor short-term risks."
A commonly used assessment of a company's short-term liquidity paints too pessimistic a picture of restaurants, according to a new study from the Cornell Center for Hospitality Research. The study, "Short-term Liquidity Measures for Restaurant Firms: Static Measures Don't Tell the Full Story," analyzed restaurants using an integrative measure of liquidity, which takes into account both the firm's operating and financial sources of capital. The Report, written by Linda Canina and Steven Carvell, is available at no charge from the Cornell University Center for Hospitality Research website at http://www.hotelschool.cornell.edu/research/chr/pubs/reports/2007.html. Canina and Carvell are both associate professors at the School of Hotel Administration, and Carvell is associate dean of academic affairs at the school.
Liquidity measures attempt to gauge a company's ability to cover its short-term financial obligations. The most common approach is to apply static measures, such as the current ratio or the quick ratio. But those measures assume that the company's current assets are being sold.
In contrast, the dynamic measures take into account a company's ability to generate operating capital-that is, to cover its obligations and continue to operate. "We compared restaurant and manufacturing firms using both static measures of liquidity and dynamic measures," said Canina. "The static measures imply that manufacturing companies are far more liquid than are restaurant companies, but the integrative framework told a different story."
In the dynamic test, restaurant firms were shown to be more liquid than were manufacturing firms, based on their financial and operating liquidity. "Our analysis suggests that financial analysts, creditors, and managers should evaluate both dynamic liquidity measures and static measures in assessing short-term liquidity," Canina added. "We believe that this finding that restaurants, particularly owner-operator firms, have high operating liquidity should be an argument for favorable financing terms, even though static ratios make restaurants seem like poor short-term risks."
Wednesday, August 22, 2007
French hotel chain Club Med eyes Indian travellers
Aug 22, 07 | 1:57 am
By Andrea Lopez
French hotel chain Club Med has announced its desire to market itself to Indian outbound travellers. Known for its global premium holidays, Club Med operates its chain of hotels, known as 'villages' in Europe, South America, Africa and Asia.
Mumtaz Moiz, its general manager (India), said, "Indian travellers have more spending power than what they did earlier and with LCCs coming into the market, travel is no longer niche. Indians are very comfortable in investing in longer holidays overseas." With the India representative office in Singapore, Club Med is looking to target the middle class affluent segment, families and group travellers as well as the MICE segment. In a unique initiative, Club Med is offering multinational companies the opportunity to rent any one of its 80 villages around the globe to organise its incentive programmes.
Club Med is already popularising itself among Indian travel agents. Says Moiz, "We have identified 300 agents in India. Based on the response generated, we will sell Club Med holidays through a network of PSAs next year." Currently Club Med is not looking at attaining any target figures. "For the first few months, we want to create brand awareness for the product and we will invest in advertising in both the B2B as well as the B2C segment," says Moiz. Starting rates for a Club Med Holiday are US$ 170 per person.
Source: Express Travel World
By Andrea Lopez
French hotel chain Club Med has announced its desire to market itself to Indian outbound travellers. Known for its global premium holidays, Club Med operates its chain of hotels, known as 'villages' in Europe, South America, Africa and Asia.
Mumtaz Moiz, its general manager (India), said, "Indian travellers have more spending power than what they did earlier and with LCCs coming into the market, travel is no longer niche. Indians are very comfortable in investing in longer holidays overseas." With the India representative office in Singapore, Club Med is looking to target the middle class affluent segment, families and group travellers as well as the MICE segment. In a unique initiative, Club Med is offering multinational companies the opportunity to rent any one of its 80 villages around the globe to organise its incentive programmes.
Club Med is already popularising itself among Indian travel agents. Says Moiz, "We have identified 300 agents in India. Based on the response generated, we will sell Club Med holidays through a network of PSAs next year." Currently Club Med is not looking at attaining any target figures. "For the first few months, we want to create brand awareness for the product and we will invest in advertising in both the B2B as well as the B2C segment," says Moiz. Starting rates for a Club Med Holiday are US$ 170 per person.
Source: Express Travel World
Ten Top Cities For Foodies
Aug 22, 07 | 1:57 am
By Shivani Vora, Forbes.com
When Helen Lee plans her vacations, she is often more focused on what she'll be eating than what she's likely to see.
"I love to eat, and the first thing I do when I'm away is to check out the food," says the 31-year-old marketing manager from New York City. "And, I'm more motivated to go somewhere if there will be great food."
Her passion for good grub explains why she has visited Paris, a city that she considers the ultimate destination for foodies, three times in the last five years. ("I literally eat my way through the city," she says.) Each trip has consisted of indulging in baguettes and pastries from boulangeries, sampling cheeses and local honeys from open-air markets like Beauvau, and checking out nonassuming bistros for steak frites and grilled fish.
There's more where that came from. The City of Light is just one of the 10 spots on our list that are the best bets for foodies.
What defines "best"?
"A foodie city has a good mix of restaurants--some with an international reputation and that are true classics, others that are excellent but that people may not have heard of," says Martin Rapp, senior vice president of leisure at Altour International, a New York and Los Angeles luxury travel consultancy. "It has food markets that sell produce as well as local products, such as oil and cheeses. It also has good artisanal bakeries."
Meals Worth Traveling For
It's these offerings experts say increasingly draw true food lovers. Such travelers aren't content with simply dining at famous or pricey restaurants; they are looking for a more authentic experience because of the increasing limelight the media, particularly the Food Network with shows like Food Finds and Giada's Weekend Getaways, has placed on discovering local foods.
"Some people collect the big name restaurants that they've been to like notches on a belt," says Richard Bruce Turen, who plans food-focused trips through Churchill & Turen, a Naperville, Ill., luxury travel consultancy. "Foodies thrive in discovering obscure restaurants and like to impress others with their discoveries."
Appetizing Big Apple
In New York City, Bubby's is such a place. The Tribeca eatery is popular among local brunch lovers and offers dishes such as sour cream pancakes with bananas and sour cherries that are large enough to share. Besides the food, this restaurant is worth a visit for the people-watching that includes celebrity regulars like Robert De Niro.
For a bazaar-like experience, visitors might explore Chelsea Market, which is a gold mine of several dozen gourmet food stores including Ronnybrook Dairy, an upstate farm that makes ice cream, shakes and creamy yogurt, and Amy's Bread for olive picholine loaf and chocolate-stuffed rolls.
Then there are the ritzy restaurants. For a three-Michelin-star meal in New York City, book a table at Per Se and sample Thomas Keller's $250 nine-course tasting menu that changes daily, based on the market availability of ingredients. Balthazar, a Keith McNally-owned casual French bistro in SoHo, has classic choices like duck confit and steak frites.
Source: Forbes.com
By Shivani Vora, Forbes.com
When Helen Lee plans her vacations, she is often more focused on what she'll be eating than what she's likely to see.
"I love to eat, and the first thing I do when I'm away is to check out the food," says the 31-year-old marketing manager from New York City. "And, I'm more motivated to go somewhere if there will be great food."
Her passion for good grub explains why she has visited Paris, a city that she considers the ultimate destination for foodies, three times in the last five years. ("I literally eat my way through the city," she says.) Each trip has consisted of indulging in baguettes and pastries from boulangeries, sampling cheeses and local honeys from open-air markets like Beauvau, and checking out nonassuming bistros for steak frites and grilled fish.
There's more where that came from. The City of Light is just one of the 10 spots on our list that are the best bets for foodies.
What defines "best"?
"A foodie city has a good mix of restaurants--some with an international reputation and that are true classics, others that are excellent but that people may not have heard of," says Martin Rapp, senior vice president of leisure at Altour International, a New York and Los Angeles luxury travel consultancy. "It has food markets that sell produce as well as local products, such as oil and cheeses. It also has good artisanal bakeries."
Meals Worth Traveling For
It's these offerings experts say increasingly draw true food lovers. Such travelers aren't content with simply dining at famous or pricey restaurants; they are looking for a more authentic experience because of the increasing limelight the media, particularly the Food Network with shows like Food Finds and Giada's Weekend Getaways, has placed on discovering local foods.
"Some people collect the big name restaurants that they've been to like notches on a belt," says Richard Bruce Turen, who plans food-focused trips through Churchill & Turen, a Naperville, Ill., luxury travel consultancy. "Foodies thrive in discovering obscure restaurants and like to impress others with their discoveries."
Appetizing Big Apple
In New York City, Bubby's is such a place. The Tribeca eatery is popular among local brunch lovers and offers dishes such as sour cream pancakes with bananas and sour cherries that are large enough to share. Besides the food, this restaurant is worth a visit for the people-watching that includes celebrity regulars like Robert De Niro.
For a bazaar-like experience, visitors might explore Chelsea Market, which is a gold mine of several dozen gourmet food stores including Ronnybrook Dairy, an upstate farm that makes ice cream, shakes and creamy yogurt, and Amy's Bread for olive picholine loaf and chocolate-stuffed rolls.
Then there are the ritzy restaurants. For a three-Michelin-star meal in New York City, book a table at Per Se and sample Thomas Keller's $250 nine-course tasting menu that changes daily, based on the market availability of ingredients. Balthazar, a Keith McNally-owned casual French bistro in SoHo, has classic choices like duck confit and steak frites.
Source: Forbes.com
A Hotel in a Box
Aug 22, 07 | 1:57 am
By Stacy Perman
Amsterdam's Qbic-a prefab hotel that makes its home inside an existing building-offers a deluxe, self-service option for budget-minded business travelers
There are hotels built on stilts in the ocean, hotels fashioned out of former royal palaces, even hotels set among jungle treetops. So why not craft a hotel that can be plugged into an existing space in any city in the world? That was the thinking behind Qbic Hotels, a low-cost, high-design concept made up of prefabricated rooms that literally come out of a box.
Launched this July in Amsterdam, Holland, the 35-room hotel is the first of what is hoped to be a global chain. But it's not just the box concept that sets the hotel apart; it's the innovative self-service aspect, too.
Budget Brainchild
Modeled after budget airways like Southwest Airlines (LUV) in the U.S. and easyJet (EJETF) in Europe, Qbic allows guests to make their reservations online, with rooms ranging from €39 to €139 (about $80 to $200) a night, based on an advanced booking system. Once at the hotel, guests receive an electronic card that's needed to check in and check out. Digital lobby kiosks offer information on local attractions and restaurants. The Grab-and-Go Corner provides food and drinks, toothbrushes, phone cards, shampoo, even condoms-all purchased through the guest's electronic card. Guests check out when they want by simply using the lobby kiosk. There is maid service on-site. During the Amsterdam location's first six months, a service manager will be available in case a problem arises that needs a human touch.
The hotel is the brainchild of hoteliers and restaurateurs Paul Rinkens, Rino Soeters, and Marcel Voermans, who are known for their high-concept hotels in the Netherlands. The trio wanted to come up with a hotel that would cater to both the business traveler and the budget-minded in urban locales. They believed there was a large, untapped market for travelers on short stays who wanted affordable, chic rooms, but who didn't necessarily want to do without the amenities of a luxury hotel. At the same time, the three wanted to tap into the increasingly popular do-it-yourself (DIY) lifestyle trend among consumers around the globe.
Posh Plug-and-Play
In order to create a hotel in big cities where real estate is often costly and space at a premium, Qbic's founders came up with a novel idea: Create a prefab, plug-and-play module called a Cubi that can be outfitted inside existing space. "There are more than 1 million square meters of empty office buildings in Holland," says Maxine Hofman, Qbic's sales and marketing manager, "and the idea was that we could build and franchise these hotels in high-trafficked cities where there are all these empty buildings." For instance, the Amsterdam Qbic is located in longtime-vacant offices in the city's World Trade Center.
The Cubi, a pre-assembled, 74-square-foot cube-shaped living area, is the focal point of each room. Despite the seemingly cramped quarters, each Cubi is both self-contained and luxuriously appointed with Swedish Hästens beds, flat-screen TVs, high-speed Internet access, and a small work station. The bathrooms boast a rain shower and Philippe Starck fixtures.
While no two rooms are designed the same-they are outfitted in images of local attractions-each room has a window view. Eschewing the generic look of most chain hotels, Qbic allows guests to change the color and theme of their room with a touch of the finger on an LED screen. "If you want a pink room or blue sky or orange, you can change the mood of the room," says Hofman. Moreover, she says, "the Cubi can be placed and hooked up within a few hours. Which means Qbic is a near-instant hotel." (See BusinessWeek.com, 2/9/07, "Pop-Up Stores: All the Rage").
According to Hofman, to date the average stay is 1.4 days, with a few guests arranging month-long visits. Qbic plans to open a second location in Maastricht at the end of the year and a third in Antwerp in 2008. Next up, the company is hoping to expand to Barcelona, Copenhagen, London, and Milan. Hofman says the company is in discussions to possibly extend Qbic to American cities as well as a franchise concept.
DIY Digs
Qbic may be a new wrinkle in what is becoming known as the "pod hotel" movement. While pod hotels are not new in some Asian countries including Japan, where such tiny hotels have been around for at least 20 years, there seem to be more of them sprouting up in large capital cities in the West. Greek shipping heir and mogul in his own right Stelios Haji-Ioannou launched easyHotel in England, part of his growing budget empire that started with the no-frills easyJet airline and has grown to include Internet cafes, rental cars, and a cruise ship line. Recently the British YO! Sushi restaurant chain opened a prototype pod hotel in Heathrow Airport called Yotel.
"What you see happening is a combination of things," says Henry Harteveldt, a travel analyst at Forrester Research in San Francisco. "There is the high cost of real estate and limited availability, and so companies are putting hotels in unconventional locations. And people are willing to forgo certain amenities and space in order to stay in a city center at a reasonable cost."
What distinguishes Qbic-at least for now-is its ability to offer both high style and low cost in a self-service environment. "Qbic is quite stylish and slick," says Harteveldt. "I think that it appeals to someone who appreciates style after being in an airplane cabin that is devoid of style." But he says that using technology as a proxy for human service works only if the instructions are clear and easy, and if customer expectations meet the hotel's promises. "We are an increasingly DIY global society, whether that means checking into a hotel or renovating a house."
Source: BusinessWeek.com
By Stacy Perman
Amsterdam's Qbic-a prefab hotel that makes its home inside an existing building-offers a deluxe, self-service option for budget-minded business travelers
There are hotels built on stilts in the ocean, hotels fashioned out of former royal palaces, even hotels set among jungle treetops. So why not craft a hotel that can be plugged into an existing space in any city in the world? That was the thinking behind Qbic Hotels, a low-cost, high-design concept made up of prefabricated rooms that literally come out of a box.
Launched this July in Amsterdam, Holland, the 35-room hotel is the first of what is hoped to be a global chain. But it's not just the box concept that sets the hotel apart; it's the innovative self-service aspect, too.
Budget Brainchild
Modeled after budget airways like Southwest Airlines (LUV) in the U.S. and easyJet (EJETF) in Europe, Qbic allows guests to make their reservations online, with rooms ranging from €39 to €139 (about $80 to $200) a night, based on an advanced booking system. Once at the hotel, guests receive an electronic card that's needed to check in and check out. Digital lobby kiosks offer information on local attractions and restaurants. The Grab-and-Go Corner provides food and drinks, toothbrushes, phone cards, shampoo, even condoms-all purchased through the guest's electronic card. Guests check out when they want by simply using the lobby kiosk. There is maid service on-site. During the Amsterdam location's first six months, a service manager will be available in case a problem arises that needs a human touch.
The hotel is the brainchild of hoteliers and restaurateurs Paul Rinkens, Rino Soeters, and Marcel Voermans, who are known for their high-concept hotels in the Netherlands. The trio wanted to come up with a hotel that would cater to both the business traveler and the budget-minded in urban locales. They believed there was a large, untapped market for travelers on short stays who wanted affordable, chic rooms, but who didn't necessarily want to do without the amenities of a luxury hotel. At the same time, the three wanted to tap into the increasingly popular do-it-yourself (DIY) lifestyle trend among consumers around the globe.
Posh Plug-and-Play
In order to create a hotel in big cities where real estate is often costly and space at a premium, Qbic's founders came up with a novel idea: Create a prefab, plug-and-play module called a Cubi that can be outfitted inside existing space. "There are more than 1 million square meters of empty office buildings in Holland," says Maxine Hofman, Qbic's sales and marketing manager, "and the idea was that we could build and franchise these hotels in high-trafficked cities where there are all these empty buildings." For instance, the Amsterdam Qbic is located in longtime-vacant offices in the city's World Trade Center.
The Cubi, a pre-assembled, 74-square-foot cube-shaped living area, is the focal point of each room. Despite the seemingly cramped quarters, each Cubi is both self-contained and luxuriously appointed with Swedish Hästens beds, flat-screen TVs, high-speed Internet access, and a small work station. The bathrooms boast a rain shower and Philippe Starck fixtures.
While no two rooms are designed the same-they are outfitted in images of local attractions-each room has a window view. Eschewing the generic look of most chain hotels, Qbic allows guests to change the color and theme of their room with a touch of the finger on an LED screen. "If you want a pink room or blue sky or orange, you can change the mood of the room," says Hofman. Moreover, she says, "the Cubi can be placed and hooked up within a few hours. Which means Qbic is a near-instant hotel." (See BusinessWeek.com, 2/9/07, "Pop-Up Stores: All the Rage").
According to Hofman, to date the average stay is 1.4 days, with a few guests arranging month-long visits. Qbic plans to open a second location in Maastricht at the end of the year and a third in Antwerp in 2008. Next up, the company is hoping to expand to Barcelona, Copenhagen, London, and Milan. Hofman says the company is in discussions to possibly extend Qbic to American cities as well as a franchise concept.
DIY Digs
Qbic may be a new wrinkle in what is becoming known as the "pod hotel" movement. While pod hotels are not new in some Asian countries including Japan, where such tiny hotels have been around for at least 20 years, there seem to be more of them sprouting up in large capital cities in the West. Greek shipping heir and mogul in his own right Stelios Haji-Ioannou launched easyHotel in England, part of his growing budget empire that started with the no-frills easyJet airline and has grown to include Internet cafes, rental cars, and a cruise ship line. Recently the British YO! Sushi restaurant chain opened a prototype pod hotel in Heathrow Airport called Yotel.
"What you see happening is a combination of things," says Henry Harteveldt, a travel analyst at Forrester Research in San Francisco. "There is the high cost of real estate and limited availability, and so companies are putting hotels in unconventional locations. And people are willing to forgo certain amenities and space in order to stay in a city center at a reasonable cost."
What distinguishes Qbic-at least for now-is its ability to offer both high style and low cost in a self-service environment. "Qbic is quite stylish and slick," says Harteveldt. "I think that it appeals to someone who appreciates style after being in an airplane cabin that is devoid of style." But he says that using technology as a proxy for human service works only if the instructions are clear and easy, and if customer expectations meet the hotel's promises. "We are an increasingly DIY global society, whether that means checking into a hotel or renovating a house."
Source: BusinessWeek.com
'Queen of mean' Leona Helmsley dies
Aug 22, 07 | 1:57 am
Leona Helmsley, the cutthroat hotel magnate whose title as the "queen of mean" was sealed during a tax evasion case in which she was quoted as snarling "only little people pay taxes," died Monday at age 87.
Helmsley died of heart failure at her summer home in Greenwich, Conn., said her publicist, Howard Rubenstein.
Already experienced in real estate before her marriage, Helmsley helped her husband Harry run a $5 billion empire that included managing the Empire State Building. She became a household name in 1989 when she was tried for tax evasion. The sensational trial included testimony from disgruntled employees who said she terrorized both the menial and the executive help at her homes and hotels.
That image of Helmsley as the "queen of mean" was sealed when a former housekeeper testified that she heard Helmsley say: "We don't pay taxes. Only the little people pay taxes."
She denied having said it, but the words followed her for the rest of her life.
Helmsley clearly enjoyed the luxury of the couple's private fortune, flying the globe in their 100-seat jet with a bedroom suite. The couple's residences included a nine-room penthouse with a swimming pool overlooking Central Park atop their own Park Lane Hotel; an $8 million estate in Connecticut; a condo in Palm Beach; and a mountaintop hideaway near Phoenix.
Leona Helmsley, the cutthroat hotel magnate whose title as the "queen of mean" was sealed during a tax evasion case in which she was quoted as snarling "only little people pay taxes," died Monday at age 87.
Helmsley died of heart failure at her summer home in Greenwich, Conn., said her publicist, Howard Rubenstein.
Already experienced in real estate before her marriage, Helmsley helped her husband Harry run a $5 billion empire that included managing the Empire State Building. She became a household name in 1989 when she was tried for tax evasion. The sensational trial included testimony from disgruntled employees who said she terrorized both the menial and the executive help at her homes and hotels.
That image of Helmsley as the "queen of mean" was sealed when a former housekeeper testified that she heard Helmsley say: "We don't pay taxes. Only the little people pay taxes."
She denied having said it, but the words followed her for the rest of her life.
Helmsley clearly enjoyed the luxury of the couple's private fortune, flying the globe in their 100-seat jet with a bedroom suite. The couple's residences included a nine-room penthouse with a swimming pool overlooking Central Park atop their own Park Lane Hotel; an $8 million estate in Connecticut; a condo in Palm Beach; and a mountaintop hideaway near Phoenix.
Once again, revenue gains overcome expense growth
Aug 22, 07 | 1:59 am
By Robert Mandelbaum
A familiar pattern repeated itself in 2006 - strong gains in hotel revenues surpassed significant expense growth, which resulted in double-digit increases in unit level hotel profits. In 2006, the average hotel manager in our Trends in the Hotel Industry survey achieved a 13.3 percent gain in operating profits , the third consecutive year of bottom-line increases in excess of ten percent. Favorable supply / demand conditions allowed these operators to enjoy an 8.2 percent jump in revenues for the year. However, management continued to struggle with burgeoning costs. Hotel operating expenses grew 6.3 percent in 2006, the third consecutive year of expense growth nearly twice the pace of inflation.
These finding are based on the 2007 edition of Trends in the Hotel Industry. To monitor lodging industry revenues, expense, and profits, PKF Consulting has collected and analyzed the operating statements of thousands of hotels in the U.S. since 1936.
ADR Drives Revenue
With most markets achieving occupancy levels at or above their long term average, it was expected that ADR growth would begin to dominate revenue growth. Such was the case in 2006.
An 8.3 percent gain in average room rates (ADR) was the main driver of the 8.2 percent increase in total revenue for the properties in the Trends survey. The 8.3 percent growth rate was the strongest annual increase in ADR observed since 1996. Concurrently, occupancy rose just 0.4 percent. The net result was an 8.8 percent gain in rooms revenue, or RevPAR.
In 2006, hotels also enjoyed the benefit of increased revenue from sources other than the rental of guest rooms. Food and beverage revenues grew 7.1 percent, while sales in other operated departments (gift shop, golf, spa, movies, parking etc...) increased 5.9 percent. On the negative side, telecommunications revenue declined (-5.5 percent) for the sixth consecutive year.
Out of Control Costs
In total, all operating costs at U.S. hotels increased 6.3 percent from 2005 to 2006. When looking beneath these data, we generally find that the costs that management has least control over exhibited the greatest year over year growth.
Measured on a percentage basis, the two expense items that increased the most from 2005 to 2006 were management fees (10.0 percent) and franchise fees (9.5 percent). Since these fees are typically charged as a percentage of revenue, the sharp increases were attributable to the strong revenue gains generated by the management company and franchise affiliation.
Utility (7.3 percent) and insurance costs (9.5 percent) are two other expense items over which management has limited control that grew significantly in 2006. While lodging properties can enact energy conservation policies, the cost of utilities is heavily influenced by the prices that are approved by the local service provider. After moderating in 2004 and 2005, insurance costs climbed back upwards in 2006 (9.5 percent) and grew more than three times the pace of inflation.
With effective training and the ability to adjust staffing schedules to meet fluctuating volumes of business, hotel managers do have some degree of control over labor costs. This is extremely important since salaries, wages, and benefits constituted 44.5 cents of every dollar spent to operate a hotel in 2006. For the year, U.S. hotel labor costs increased a relatively modest 4.8 percent. However, what continues to concern management is the fact that the growth in labor costs was driven primarily by the increase in employee benefits. A large component of employee benefits consists of government mandated employee related taxes and insurance that is out of the control of management.
Profit Growth For All
With revenue expanding at a greater pace than expenses, hotel operating profits increased 13.3 percent in 2006. Fortunately for hotel owners and operators, all property types enjoyed healthy gains on the bottom-line.
Full-service and all-suite hotels achieved the greatest gains in profits among the five property categories covered in our Trends survey. These property types enjoyed profit gains of 15.9 percent and 15.2 percent respectively. Limited-service and convention hotels saw their bottom-lines' surge by 10.8 percent, while resorts achieved a profit increase of 9.6 percent.
Unfortunately, the exuberance of long-term participants in the industry is somewhat muted because of the staggering declines in profitability absorbed during the 2001 to 2003 industry recession. In real terms, 2006 unit level hotel profits were 20.9 percent behind those achieved in 2000.
Moderation In The Future
The near-term outlook for the U.S. lodging industry remains favorable. However, it is unrealistic to expect profit growth to continue on a double-digit pace. More hotel projects are starting to move through the development pipeline and into the construction phase. In addition, we are starting to observe some degree of rate resistance among corporate travel executives, meeting planners, and gas-gouged leisure travelers. We do not foresee an industry recession anytime soon, but revenue and profits increases more in line with long-term averages is most likely.
In the July 2006 issue of Lodging magazine, PKF Hospitality Research forecast revenue growth of 7.6 percent for 2006, along with a 14.9 percent gain in profitability - pretty close to the results that were actually achieved. Looking towards the end of 2007, our forecast calls for a 4.7 percent increase in revenues and a 6.5 percent boost in profits. For reference purposes, the long-term (1960 to 2006) average annual change in revenue is 4.5 percent and 4.7 percent for profits. As history has proven, the lodging industry is cyclical and performance will eventually revert to the mean.
By Robert Mandelbaum
A familiar pattern repeated itself in 2006 - strong gains in hotel revenues surpassed significant expense growth, which resulted in double-digit increases in unit level hotel profits. In 2006, the average hotel manager in our Trends in the Hotel Industry survey achieved a 13.3 percent gain in operating profits , the third consecutive year of bottom-line increases in excess of ten percent. Favorable supply / demand conditions allowed these operators to enjoy an 8.2 percent jump in revenues for the year. However, management continued to struggle with burgeoning costs. Hotel operating expenses grew 6.3 percent in 2006, the third consecutive year of expense growth nearly twice the pace of inflation.
These finding are based on the 2007 edition of Trends in the Hotel Industry. To monitor lodging industry revenues, expense, and profits, PKF Consulting has collected and analyzed the operating statements of thousands of hotels in the U.S. since 1936.
ADR Drives Revenue
With most markets achieving occupancy levels at or above their long term average, it was expected that ADR growth would begin to dominate revenue growth. Such was the case in 2006.
An 8.3 percent gain in average room rates (ADR) was the main driver of the 8.2 percent increase in total revenue for the properties in the Trends survey. The 8.3 percent growth rate was the strongest annual increase in ADR observed since 1996. Concurrently, occupancy rose just 0.4 percent. The net result was an 8.8 percent gain in rooms revenue, or RevPAR.
In 2006, hotels also enjoyed the benefit of increased revenue from sources other than the rental of guest rooms. Food and beverage revenues grew 7.1 percent, while sales in other operated departments (gift shop, golf, spa, movies, parking etc...) increased 5.9 percent. On the negative side, telecommunications revenue declined (-5.5 percent) for the sixth consecutive year.
Out of Control Costs
In total, all operating costs at U.S. hotels increased 6.3 percent from 2005 to 2006. When looking beneath these data, we generally find that the costs that management has least control over exhibited the greatest year over year growth.
Measured on a percentage basis, the two expense items that increased the most from 2005 to 2006 were management fees (10.0 percent) and franchise fees (9.5 percent). Since these fees are typically charged as a percentage of revenue, the sharp increases were attributable to the strong revenue gains generated by the management company and franchise affiliation.
Utility (7.3 percent) and insurance costs (9.5 percent) are two other expense items over which management has limited control that grew significantly in 2006. While lodging properties can enact energy conservation policies, the cost of utilities is heavily influenced by the prices that are approved by the local service provider. After moderating in 2004 and 2005, insurance costs climbed back upwards in 2006 (9.5 percent) and grew more than three times the pace of inflation.
With effective training and the ability to adjust staffing schedules to meet fluctuating volumes of business, hotel managers do have some degree of control over labor costs. This is extremely important since salaries, wages, and benefits constituted 44.5 cents of every dollar spent to operate a hotel in 2006. For the year, U.S. hotel labor costs increased a relatively modest 4.8 percent. However, what continues to concern management is the fact that the growth in labor costs was driven primarily by the increase in employee benefits. A large component of employee benefits consists of government mandated employee related taxes and insurance that is out of the control of management.
Profit Growth For All
With revenue expanding at a greater pace than expenses, hotel operating profits increased 13.3 percent in 2006. Fortunately for hotel owners and operators, all property types enjoyed healthy gains on the bottom-line.
Full-service and all-suite hotels achieved the greatest gains in profits among the five property categories covered in our Trends survey. These property types enjoyed profit gains of 15.9 percent and 15.2 percent respectively. Limited-service and convention hotels saw their bottom-lines' surge by 10.8 percent, while resorts achieved a profit increase of 9.6 percent.
Unfortunately, the exuberance of long-term participants in the industry is somewhat muted because of the staggering declines in profitability absorbed during the 2001 to 2003 industry recession. In real terms, 2006 unit level hotel profits were 20.9 percent behind those achieved in 2000.
Moderation In The Future
The near-term outlook for the U.S. lodging industry remains favorable. However, it is unrealistic to expect profit growth to continue on a double-digit pace. More hotel projects are starting to move through the development pipeline and into the construction phase. In addition, we are starting to observe some degree of rate resistance among corporate travel executives, meeting planners, and gas-gouged leisure travelers. We do not foresee an industry recession anytime soon, but revenue and profits increases more in line with long-term averages is most likely.
In the July 2006 issue of Lodging magazine, PKF Hospitality Research forecast revenue growth of 7.6 percent for 2006, along with a 14.9 percent gain in profitability - pretty close to the results that were actually achieved. Looking towards the end of 2007, our forecast calls for a 4.7 percent increase in revenues and a 6.5 percent boost in profits. For reference purposes, the long-term (1960 to 2006) average annual change in revenue is 4.5 percent and 4.7 percent for profits. As history has proven, the lodging industry is cyclical and performance will eventually revert to the mean.
Wednesday, August 8, 2007
Professor Forte FIH to speak at 2007 BAHA annual conference and exhibition
Aug 08, 07 | 1:57 am
One of the hospitality industry's best known and most experienced independent environmental and food safety consultants - Professor John Forte FIH (see biography in ‘Notes to Editors') - is to speak on Day 2 of the 2007 British Association of Hospitality Accountants (BAHA) Annual Conference and Exhibition, which will take place on 8 and 9 November at the 5-star Radisson Edwardian Heathrow Hotel, 140 Bath Road, Hayes, Middlesex, UB3 5AW.
Entitled ‘Managing Technology for Profit', the two-day BAHA Annual Conference and Exhibition is one of the leading events on the hospitality industry calendar. On Friday, 9 November at 12.35pm, Professor John Forte FIH - an independent environmental and food safety Consultant to the hotel and catering Industry, and a principal in the management team of the Institute of Hospitality's highly acclaimed Carbon Trust-supported Hospitable Climates energy efficiency advisory programme - will be addressing BAHA delegates on one of the industry's most important current issues: ‘The Eco-Friendly Hotel - the Finance Director's Perspective'.
"In our industry," said Professor Forte, "it is the accountants who can best see the benefits of saving wasted energy; and the most positive response has always come whenever we have addressed ourselves to them!"
As announced last month, EasyGroup founder Sir Stelios Haji-Ioannou, who launched the easyHotel budget hotel group in 2005, is to be the keynote speaker at the 2007 BAHA Annual Conference and Exhibition. He will get this year's Conference off to a flying start with a presentation on ‘Using a Famous Brand to Build a New Hotel Business Model'.
The 2-day conference and exhibition will afford finance and IT professionals, from all corners of the UK, the opportunity to get an informed view from a line-up of expert speakers, making individual presentations and taking part in Panel Forums, on current key issues - such as ‘The Cost of the Environment'; and the ‘Separation of Ownership and Management: Implications for Performance Measurement' - and their impact for the future.
Individual speakers, and those taking part in the Panel Forums, will focus on:
purchasing for strategic advantage
a Review of industry trends
capital asset management strategies
customer profitability analysis
benchmarking
strategic information management
IT Systems for competitive advantage
performance measurement
the cost of the environment
"The 2007 BAHA Conference also presents an unrivalled opportunity for networking and for viewing some of the ‘best in class' products and services available to the hospitality sector at the accompanying exhibition," said Debra Adams, BAHA's Head of Administration and Education (see ‘Note to Editors' for list of exhibitors). "In addition, the event is ideal for professionals wishing to undertake continuous professional development (CPD), since they can not only benefit from the expertise and knowledge of the speakers, but also from a series of practical workshops and presentations."
The BAHA Annual Conference and Exhibition is also noted for its social aspect. On the evening of the opening day of the conference - Thursday, 8 November - there will be a Drinks Reception, sponsored by IBM, followed by a three-course Conference Dinner with guest speaker and entertainment.
The delegate packages on offer for attending the 2007 BAHA Conference and Exhibition range from the full two-day BAHA conference package - including accommodation and breakfast at the Radisson Edwardian Heathrow for the night of 8 November, and the Conference Dinner - at £289 for BAHA members and £335 for non-BAHA members, to those wishing to attend Day Two of the conference only, where the cost is £80 for BAHA members and £90 for non-members.
For full details of price packages and regularly updated details on the 2007 BAHA Conference and Exhibition, visit the BAHA website: www.baha.co.uk .
One of the hospitality industry's best known and most experienced independent environmental and food safety consultants - Professor John Forte FIH (see biography in ‘Notes to Editors') - is to speak on Day 2 of the 2007 British Association of Hospitality Accountants (BAHA) Annual Conference and Exhibition, which will take place on 8 and 9 November at the 5-star Radisson Edwardian Heathrow Hotel, 140 Bath Road, Hayes, Middlesex, UB3 5AW.
Entitled ‘Managing Technology for Profit', the two-day BAHA Annual Conference and Exhibition is one of the leading events on the hospitality industry calendar. On Friday, 9 November at 12.35pm, Professor John Forte FIH - an independent environmental and food safety Consultant to the hotel and catering Industry, and a principal in the management team of the Institute of Hospitality's highly acclaimed Carbon Trust-supported Hospitable Climates energy efficiency advisory programme - will be addressing BAHA delegates on one of the industry's most important current issues: ‘The Eco-Friendly Hotel - the Finance Director's Perspective'.
"In our industry," said Professor Forte, "it is the accountants who can best see the benefits of saving wasted energy; and the most positive response has always come whenever we have addressed ourselves to them!"
As announced last month, EasyGroup founder Sir Stelios Haji-Ioannou, who launched the easyHotel budget hotel group in 2005, is to be the keynote speaker at the 2007 BAHA Annual Conference and Exhibition. He will get this year's Conference off to a flying start with a presentation on ‘Using a Famous Brand to Build a New Hotel Business Model'.
The 2-day conference and exhibition will afford finance and IT professionals, from all corners of the UK, the opportunity to get an informed view from a line-up of expert speakers, making individual presentations and taking part in Panel Forums, on current key issues - such as ‘The Cost of the Environment'; and the ‘Separation of Ownership and Management: Implications for Performance Measurement' - and their impact for the future.
Individual speakers, and those taking part in the Panel Forums, will focus on:
purchasing for strategic advantage
a Review of industry trends
capital asset management strategies
customer profitability analysis
benchmarking
strategic information management
IT Systems for competitive advantage
performance measurement
the cost of the environment
"The 2007 BAHA Conference also presents an unrivalled opportunity for networking and for viewing some of the ‘best in class' products and services available to the hospitality sector at the accompanying exhibition," said Debra Adams, BAHA's Head of Administration and Education (see ‘Note to Editors' for list of exhibitors). "In addition, the event is ideal for professionals wishing to undertake continuous professional development (CPD), since they can not only benefit from the expertise and knowledge of the speakers, but also from a series of practical workshops and presentations."
The BAHA Annual Conference and Exhibition is also noted for its social aspect. On the evening of the opening day of the conference - Thursday, 8 November - there will be a Drinks Reception, sponsored by IBM, followed by a three-course Conference Dinner with guest speaker and entertainment.
The delegate packages on offer for attending the 2007 BAHA Conference and Exhibition range from the full two-day BAHA conference package - including accommodation and breakfast at the Radisson Edwardian Heathrow for the night of 8 November, and the Conference Dinner - at £289 for BAHA members and £335 for non-BAHA members, to those wishing to attend Day Two of the conference only, where the cost is £80 for BAHA members and £90 for non-members.
For full details of price packages and regularly updated details on the 2007 BAHA Conference and Exhibition, visit the BAHA website: www.baha.co.uk .
Kerzner enters agreement with Revolution to launch and manage a new One&Only Resort in Costa Rica
Aug 08, 07 | 1:57 am
Kerzner International Holdings Limited (the "Company"), through its subsidiaries, a leading international developer and operator of destination resorts, casinos and luxury resorts, has entered into an agreement with Revolution Places Development ("Revolution Places"), to operate a new One&Only resort in Cacique, Costa Rica, within the Guanacaste province. With 120 spacious, villa-style rooms, the luxury resort, along with the first phase of development of Cacique, Costa Rica, is anticipated to be completed in 2010.
Revolution Places owns the 650-acre site, known as Cacique, Costa Rica, on which the One&Only resort will be located. Cacique offers varying topography and stunning views of the Pacific Ocean, of which the new resort design will take full advantage. One&Only Cacique, Costa Rica will also incorporate a 12,000 square foot spa, its own exclusive beach club, three restaurants and bars, and meeting space, including a dedicated boardroom. Designed by California-based HKS Hill Glazier Studio, the resort will be environmentally sensitive with an emphasis on privacy while evoking a ‘sense of place' with the choice of materials showcasing the natural elements of Costa Rica. Furthermore, as with all One&Only properties, the resort will be family friendly with a KidsClub and will offer many sporting and entertainment facilities and activities.
One&Only Cacique, Costa Rica will be a primary feature of the soon to be developed integrated destination resort community that will include a professional Agassi/Graf Tennis and Fitness Center, a mixed-use commercial and residential village with a number of for-sale residences, a Tom Doak 18-hole golf course, an equestrian center and other services and amenities to be introduced by Revolution Places, the company created by AOL co-founder Steve Case.
"We have been looking to develop another One&Only resort in Latin America following the success of One&Only Palmilla in Los Cabos, Mexico. When we saw the site in Costa Rica, we knew that we found a magnificent location ideally suited for creating the One&Only experience in Central America. We are confident the resort will be well received by our many loyal One&Only guests and new guests alike," said Sol Kerzner, Chairman and Chief Executive Officer of the Company.
Philippe Bourguignon, Vice Chairman of Revolution Places Group and Chief Executive Officer of Revolution Places Development, added, "We could not envision a finer luxury resort partner than One&Only to deliver experience, sense of place, service and hospitality to guests at Cacique, Costa Rica. We looked at many resort developers and operators and found in Sol Kerzner and his team the ultimate partners."
Revolution Places will also develop, market and sell the approximately 300 residential villas to be developed at Cacique, Costa Rica. The Company and Revolution Places have entered into an agreement whereby One&Only will provide services to residential owners. Revolution Places and the Company will also partner to create a limited membership One&Only Club available to a select number of real estate owners.
Kerzner International Holdings Limited (the "Company"), through its subsidiaries, a leading international developer and operator of destination resorts, casinos and luxury resorts, has entered into an agreement with Revolution Places Development ("Revolution Places"), to operate a new One&Only resort in Cacique, Costa Rica, within the Guanacaste province. With 120 spacious, villa-style rooms, the luxury resort, along with the first phase of development of Cacique, Costa Rica, is anticipated to be completed in 2010.
Revolution Places owns the 650-acre site, known as Cacique, Costa Rica, on which the One&Only resort will be located. Cacique offers varying topography and stunning views of the Pacific Ocean, of which the new resort design will take full advantage. One&Only Cacique, Costa Rica will also incorporate a 12,000 square foot spa, its own exclusive beach club, three restaurants and bars, and meeting space, including a dedicated boardroom. Designed by California-based HKS Hill Glazier Studio, the resort will be environmentally sensitive with an emphasis on privacy while evoking a ‘sense of place' with the choice of materials showcasing the natural elements of Costa Rica. Furthermore, as with all One&Only properties, the resort will be family friendly with a KidsClub and will offer many sporting and entertainment facilities and activities.
One&Only Cacique, Costa Rica will be a primary feature of the soon to be developed integrated destination resort community that will include a professional Agassi/Graf Tennis and Fitness Center, a mixed-use commercial and residential village with a number of for-sale residences, a Tom Doak 18-hole golf course, an equestrian center and other services and amenities to be introduced by Revolution Places, the company created by AOL co-founder Steve Case.
"We have been looking to develop another One&Only resort in Latin America following the success of One&Only Palmilla in Los Cabos, Mexico. When we saw the site in Costa Rica, we knew that we found a magnificent location ideally suited for creating the One&Only experience in Central America. We are confident the resort will be well received by our many loyal One&Only guests and new guests alike," said Sol Kerzner, Chairman and Chief Executive Officer of the Company.
Philippe Bourguignon, Vice Chairman of Revolution Places Group and Chief Executive Officer of Revolution Places Development, added, "We could not envision a finer luxury resort partner than One&Only to deliver experience, sense of place, service and hospitality to guests at Cacique, Costa Rica. We looked at many resort developers and operators and found in Sol Kerzner and his team the ultimate partners."
Revolution Places will also develop, market and sell the approximately 300 residential villas to be developed at Cacique, Costa Rica. The Company and Revolution Places have entered into an agreement whereby One&Only will provide services to residential owners. Revolution Places and the Company will also partner to create a limited membership One&Only Club available to a select number of real estate owners.
Monday, August 6, 2007
Shaza Hotels recognized for ‘Eco-Friendly' design
Aug 07, 07 | 1:57 am
Shaza Hotels, the regional lifestyle hotel brand, has announced that all of its upcoming hotel developments will be certified to Leadership in Energy and Environmental Design (LEED) standards - the internationally accepted benchmark for the design, construction, and operation of eco-friendly buildings.
The certification - the first of its kind across an entire hotel brand in the region - demonstrates the hotelier's commitment to environmentally sustainable projects that embody a ‘green' lifestyle and embrace the values and traditions of its discerning clientele.
The progressive move will ensure that Shaza's first seven properties - Dubai, Doha, Muscat, Cairo, Bahrain, Jeddah and Marrakech - are designed to follow the internationally-recognized guidelines of LEED.
"There is a great synergy between the cultural traditions of the region and a deep respect for the environment. Shaza has therefore taken the initiative to obtain this globally-respected certification, as part of a conscientious shift towards environmentally sustainable hotels," said Christopher Hartley, CEO, Shaza Hotels.
The international rating system takes into account five key human and environmental health criteria when evaluating the design of a project: sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality.
"As part of our commitment that each hotel will be LEED certified, Shaza will be merging environmental sustainability with contemporary architecture and modern design. This approach further differentiates this unique regional brand and will ensure that our product meets the expectations of our clientele as a modern, forward-thinking luxury hotel," concluded Hartley.
Launched last year, Shaza is the product of a partnership between Kempinski, the world's oldest luxury hotel brand, and international financial firm, Guidance Financial Group.
The hotel group will own and operate properties in gateway cities around the region, with its first opening in Dubai in early 2009.
About Shaza Hotels
Launched in 2006, Shaza Hotels, a product of partnership between Kempinski Hotels and Guidance Financial Group, is a new lifestyle hotel brand that celebrates the spirit, traditions and art of living of the Middle East and North Africa region in a contemporary, design-led environment. For more information on Shaza Hotels visit www.shazahotels.com
Shaza Hotels, the regional lifestyle hotel brand, has announced that all of its upcoming hotel developments will be certified to Leadership in Energy and Environmental Design (LEED) standards - the internationally accepted benchmark for the design, construction, and operation of eco-friendly buildings.
The certification - the first of its kind across an entire hotel brand in the region - demonstrates the hotelier's commitment to environmentally sustainable projects that embody a ‘green' lifestyle and embrace the values and traditions of its discerning clientele.
The progressive move will ensure that Shaza's first seven properties - Dubai, Doha, Muscat, Cairo, Bahrain, Jeddah and Marrakech - are designed to follow the internationally-recognized guidelines of LEED.
"There is a great synergy between the cultural traditions of the region and a deep respect for the environment. Shaza has therefore taken the initiative to obtain this globally-respected certification, as part of a conscientious shift towards environmentally sustainable hotels," said Christopher Hartley, CEO, Shaza Hotels.
The international rating system takes into account five key human and environmental health criteria when evaluating the design of a project: sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality.
"As part of our commitment that each hotel will be LEED certified, Shaza will be merging environmental sustainability with contemporary architecture and modern design. This approach further differentiates this unique regional brand and will ensure that our product meets the expectations of our clientele as a modern, forward-thinking luxury hotel," concluded Hartley.
Launched last year, Shaza is the product of a partnership between Kempinski, the world's oldest luxury hotel brand, and international financial firm, Guidance Financial Group.
The hotel group will own and operate properties in gateway cities around the region, with its first opening in Dubai in early 2009.
About Shaza Hotels
Launched in 2006, Shaza Hotels, a product of partnership between Kempinski Hotels and Guidance Financial Group, is a new lifestyle hotel brand that celebrates the spirit, traditions and art of living of the Middle East and North Africa region in a contemporary, design-led environment. For more information on Shaza Hotels visit www.shazahotels.com
Smoking ban is breath of fresh air for Classic British Hotels
Aug 07, 07 | 1:57 am
The month-old smoking ban is having a positive effect on business at many hotels, according to Classic British Hotels, the consortium of independent hotels.
Fears of a downturn in conference and bar turnover has proved unfounded, and hoteliers are crediting the ban with helping them to deliver not only a greener and more healthy product, but also a more profitable one as the lifespan of bed linen and decor is extended.
Customer response in Classic British's 50 3, 4 & 5 star hotels has been overwhelmingly good. Matfen Hall, near Hexham in Northumberland went non-smoking in January in anticipation of the nationwide ban. General Manager David Hunter reports that: "The hotel is much cleaner and fresher for both staff and customers and is really a much better place for it. I can honestly say that there has been no negative effect to our business at all."
It's the same story to the west of the Pennines. Smoking was banned at Lancaster House, near Lancaster, back in 2005, and owner Tim Bell believes that the cleaner atmosphere has helped sales. "The ban was very popular with families and bar meal sales went up by 40% over the 2 years. We've made all our bedrooms non-smoking as the problem of a non-smoking guest smelling smoke in a bedroom has been amplified by the ban".
Lancaster House has no plans to make any special concessions to any remaining smokers either. "Heavy investment in furniture and shelters would be pointless as the percentage of smokers inevitably decreases" Bell explains.
At Chilworth Manor, just outside Southampton, a little caution is being exercised, as Director Gavin Elliott explains. "For several years it has been the norm for guests not to smoke in meeting rooms and very few request smoking bedrooms. However I'm still holding onto my four designated smoking rooms because many hotels in Ireland saw a big increase in requests for smoking rooms when the ban was first introduced there".
Classic British CEO Len Louis believes that the ban has been a major boost to all hotels. "Not only does our guests health benefit, but companies' duty of care to their employees is also being met. However there's one downside for our hoteliers - the fag ends outside our various entrances are a real pain!"
The month-old smoking ban is having a positive effect on business at many hotels, according to Classic British Hotels, the consortium of independent hotels.
Fears of a downturn in conference and bar turnover has proved unfounded, and hoteliers are crediting the ban with helping them to deliver not only a greener and more healthy product, but also a more profitable one as the lifespan of bed linen and decor is extended.
Customer response in Classic British's 50 3, 4 & 5 star hotels has been overwhelmingly good. Matfen Hall, near Hexham in Northumberland went non-smoking in January in anticipation of the nationwide ban. General Manager David Hunter reports that: "The hotel is much cleaner and fresher for both staff and customers and is really a much better place for it. I can honestly say that there has been no negative effect to our business at all."
It's the same story to the west of the Pennines. Smoking was banned at Lancaster House, near Lancaster, back in 2005, and owner Tim Bell believes that the cleaner atmosphere has helped sales. "The ban was very popular with families and bar meal sales went up by 40% over the 2 years. We've made all our bedrooms non-smoking as the problem of a non-smoking guest smelling smoke in a bedroom has been amplified by the ban".
Lancaster House has no plans to make any special concessions to any remaining smokers either. "Heavy investment in furniture and shelters would be pointless as the percentage of smokers inevitably decreases" Bell explains.
At Chilworth Manor, just outside Southampton, a little caution is being exercised, as Director Gavin Elliott explains. "For several years it has been the norm for guests not to smoke in meeting rooms and very few request smoking bedrooms. However I'm still holding onto my four designated smoking rooms because many hotels in Ireland saw a big increase in requests for smoking rooms when the ban was first introduced there".
Classic British CEO Len Louis believes that the ban has been a major boost to all hotels. "Not only does our guests health benefit, but companies' duty of care to their employees is also being met. However there's one downside for our hoteliers - the fag ends outside our various entrances are a real pain!"
The Ten Hot Management Agreement Issues in Asia
Aug 07, 07 | 1:58 am
By Graeme Dickson, Global Practice Leader Baker & McKenzie
In our view the ten hot issues are:
1. Sign Them Up: There is frenetic activity by many operators in many jurisdictions to sign up management agreements.
2. No Leases Thanks: Operators like management agreements and dislike leases.
3. In For The Long Haul: It's getting harder to prematurely terminate an operator without cause.
4. No Termination: It's also getting harder to terminate an under performing operator.
5. Not For Sale: Owner sale provisions are getting tighter and are subject to increasing operator discretion.
6. Let's Bind Financiers: Operators are increasingly keen to bind financiers.
7. The Retail Market: Developers are moving heavily into the retail market (eg Condo Hotels) with enhanced risk.
8. Brand Leverage: Savvy operators are leveraging brand value (eg branded residences and brand partners).
9. Brand Standards: The Brand Standard is increasingly becoming the benchmark for CAPEX spending.
10. Agency Out: Operators are moving away from "agency" relationship with owners to minimise complications (eg obligation to disclose "secret" profits).
Contact: Graeme Dickson
Global Practice Leader
Baker & McKenzie
+61 2 8922 5228
Email: graeme.dickson@bakernet.com
Source: Baker & McKenzie
By Graeme Dickson, Global Practice Leader Baker & McKenzie
In our view the ten hot issues are:
1. Sign Them Up: There is frenetic activity by many operators in many jurisdictions to sign up management agreements.
2. No Leases Thanks: Operators like management agreements and dislike leases.
3. In For The Long Haul: It's getting harder to prematurely terminate an operator without cause.
4. No Termination: It's also getting harder to terminate an under performing operator.
5. Not For Sale: Owner sale provisions are getting tighter and are subject to increasing operator discretion.
6. Let's Bind Financiers: Operators are increasingly keen to bind financiers.
7. The Retail Market: Developers are moving heavily into the retail market (eg Condo Hotels) with enhanced risk.
8. Brand Leverage: Savvy operators are leveraging brand value (eg branded residences and brand partners).
9. Brand Standards: The Brand Standard is increasingly becoming the benchmark for CAPEX spending.
10. Agency Out: Operators are moving away from "agency" relationship with owners to minimise complications (eg obligation to disclose "secret" profits).
Contact: Graeme Dickson
Global Practice Leader
Baker & McKenzie
+61 2 8922 5228
Email: graeme.dickson@bakernet.com
Source: Baker & McKenzie
Major hotel chains report 6.9 percent increase in electronic bookings for Q1 2007
Aug 07, 07 | 1:59 am
The hotel industry maintains steady growth as consumers continue an upward trend of shopping for hotels online and booking electronically, according to TravelCLICK's 2007 first quarter eTRAK results, released today. The data shows the total Central Reservation System (CRS) reservations for major hotel brands increased 6.9 percent in Q1 2007, reaching more than 21 million bookings.
The Internet contributed 41.2 percent, or 8,796,245 reservations, of the total CRS reservations at major hotel brands, a 21.9 percent increase compared to the same period in 2006. The data also highlights the low growth, but continuing importance of GDS e-commerce, with 35.7 percent of total electronic CRS reservations. Voice reservations represent the remaining 23.1 percent of CRS reservations, posting a decline of 4.8 percent over the same period last year.
In the first quarter of 2007, brand websites grew again and continued to gain share compared to third-party merchant and opaque websites, which remain an important component of hotels' online strategy to ensure visibility to a global consumer audience. According to eTRAK, brand websites were the source of 82.3 percent of the brands' centrally-booked Internet reservations.
eTRAK is a quarterly benchmarking report that enables individual hotels to track booking trends on the Internet and GDS through CRS performance. The consolidated results provide industry indications based on performance trends for 28 major hotel brands and chains.
Observations for the market based on this latest data include:
Electronic bookings show no signs of slowing down, making an actionable electronic distribution strategy a crucial part of any hotel’s business plan for growth.
Hotel websites have become the center of the industry’s sales and marketing efforts. As consumer choice continues to broaden, hotel companies are increasing their focus on Web-direct bookings to ensure the consumer sees Web-direct as a viable option.
The voice channel is benefiting from synergies with the Web, as call volume continues to decrease while conversion rates increase due to more educated customers.
"Hotels are getting better at ensuring that rate parity exists and that the hotel's website lives up to its best rate guarantee," said Jeff Bzdawka, Chief Operating Officer at TravelCLICK. "In conjunction with more aggressive Internet marketing, the industry also continues to drive business direct, increasing overall profitability."
The eTRAK report covers all Central Reservation System booking results, including Internet, GDS and voice bookings. The report allows subscribers to compare their own performance to that of their direct competitors and the industry in general. The unique information contained in eTRAK is intended to help hotel companies determine e-commerce priorities, such as where to invest Internet advertising dollars and which sites create the best returns. For more information about TravelCLICK's eTRAK report, email etrak@travelclick.net.
Results from this study may differ from overall hospitality industry trends on the Internet and GDS because eTRAK reflects only the performance of 28 major brands. The conclusions, however, are directional for the industry as a whole.
About TravelCLICK
TravelCLICK (http://www.travelclick.net/) is the leading provider of emarketing solutions that help hotels sell rooms smarter and drive long-term profitability. TravelCLICK helps hotels maximize asset ROI by combining innovative market analysis and proven industry best practices with advanced technology to develop and implement high-return strategies. The company offers a full set of solutions including reservations and distribution management, market intelligence-based decision support, and marketing services. Serving the hospitality industry since 1996 and headquartered in the Chicago area, TravelCLICK has more than 12,000 customers in 140 countries.
(1) Brand Website: Website where distribution is operated and managed by the brand (e.g. http://www.marriott.com/).
(2) Retail Website: Third-party distributor where the hotel lists inventory at the same price that it is sold to the consumer and hotel pays distributor agreed upon commission (e.g. HRS, Bookings, Venere in Europe).
(3) Merchant Website: Third-party distributor where the hotel provides inventory to the site at a net rate. The merchant marks up the rate by an agreed upon percentage. The consumer pays the merchant at the gross rate and the merchant site pays the hotel the net rate (e.g. Expedia/Hotels.com, Travelocity and Orbitz).
(4) Opaque Website: Third-party distributor that enables customers to choose a fare or rate without knowing the brand of the supplier until after the item is purchased (e.g. Priceline).
SOURCE: TravelCLICK
The hotel industry maintains steady growth as consumers continue an upward trend of shopping for hotels online and booking electronically, according to TravelCLICK's 2007 first quarter eTRAK results, released today. The data shows the total Central Reservation System (CRS) reservations for major hotel brands increased 6.9 percent in Q1 2007, reaching more than 21 million bookings.
The Internet contributed 41.2 percent, or 8,796,245 reservations, of the total CRS reservations at major hotel brands, a 21.9 percent increase compared to the same period in 2006. The data also highlights the low growth, but continuing importance of GDS e-commerce, with 35.7 percent of total electronic CRS reservations. Voice reservations represent the remaining 23.1 percent of CRS reservations, posting a decline of 4.8 percent over the same period last year.
In the first quarter of 2007, brand websites grew again and continued to gain share compared to third-party merchant and opaque websites, which remain an important component of hotels' online strategy to ensure visibility to a global consumer audience. According to eTRAK, brand websites were the source of 82.3 percent of the brands' centrally-booked Internet reservations.
eTRAK is a quarterly benchmarking report that enables individual hotels to track booking trends on the Internet and GDS through CRS performance. The consolidated results provide industry indications based on performance trends for 28 major hotel brands and chains.
Observations for the market based on this latest data include:
Electronic bookings show no signs of slowing down, making an actionable electronic distribution strategy a crucial part of any hotel’s business plan for growth.
Hotel websites have become the center of the industry’s sales and marketing efforts. As consumer choice continues to broaden, hotel companies are increasing their focus on Web-direct bookings to ensure the consumer sees Web-direct as a viable option.
The voice channel is benefiting from synergies with the Web, as call volume continues to decrease while conversion rates increase due to more educated customers.
"Hotels are getting better at ensuring that rate parity exists and that the hotel's website lives up to its best rate guarantee," said Jeff Bzdawka, Chief Operating Officer at TravelCLICK. "In conjunction with more aggressive Internet marketing, the industry also continues to drive business direct, increasing overall profitability."
The eTRAK report covers all Central Reservation System booking results, including Internet, GDS and voice bookings. The report allows subscribers to compare their own performance to that of their direct competitors and the industry in general. The unique information contained in eTRAK is intended to help hotel companies determine e-commerce priorities, such as where to invest Internet advertising dollars and which sites create the best returns. For more information about TravelCLICK's eTRAK report, email etrak@travelclick.net.
Results from this study may differ from overall hospitality industry trends on the Internet and GDS because eTRAK reflects only the performance of 28 major brands. The conclusions, however, are directional for the industry as a whole.
About TravelCLICK
TravelCLICK (http://www.travelclick.net/) is the leading provider of emarketing solutions that help hotels sell rooms smarter and drive long-term profitability. TravelCLICK helps hotels maximize asset ROI by combining innovative market analysis and proven industry best practices with advanced technology to develop and implement high-return strategies. The company offers a full set of solutions including reservations and distribution management, market intelligence-based decision support, and marketing services. Serving the hospitality industry since 1996 and headquartered in the Chicago area, TravelCLICK has more than 12,000 customers in 140 countries.
(1) Brand Website: Website where distribution is operated and managed by the brand (e.g. http://www.marriott.com/).
(2) Retail Website: Third-party distributor where the hotel lists inventory at the same price that it is sold to the consumer and hotel pays distributor agreed upon commission (e.g. HRS, Bookings, Venere in Europe).
(3) Merchant Website: Third-party distributor where the hotel provides inventory to the site at a net rate. The merchant marks up the rate by an agreed upon percentage. The consumer pays the merchant at the gross rate and the merchant site pays the hotel the net rate (e.g. Expedia/Hotels.com, Travelocity and Orbitz).
(4) Opaque Website: Third-party distributor that enables customers to choose a fare or rate without knowing the brand of the supplier until after the item is purchased (e.g. Priceline).
SOURCE: TravelCLICK
Friday, August 3, 2007
The winds of environmental change continue to blow at Fairmont Hotels & Resorts
Aug 03, 07 | 1:57 am
A firm advocate of sustainable energy, Fairmont Hotels & Resorts is pleased to announce its continued involvement with the Pembina Institute, a leading non-profit environmental organization that actively promotes sustainable energy solutions. As part of this ongoing commitment, Fairmont is pleased to be expanding the program in 2007 to include all of its corporate office computers across North America.
Since 2006, Fairmont has purchased an equivalent of 390 MwH of wind power to offset the greenhouse gas emissions generated by all of its front desk check-in computers. Made possible by purchasing Eco-Logo certified wind power, Fairmont will now have a total of 837 computers involved in the program resulting in a greenhouse gas reduction of approximately 160 tonnes for 2006 and 2007 combined.
Commending Fairmont on its increased role in the program is Nancy Hammer, Director of Development at the Pembina Institute. "Fairmont continues to lead by example with renewable energy solutions that are forward thinking, practical and cost efficient. In my opinion, Fairmont continues to raise the bar for environmental action in the hospitality industry".
Complementing its relationship with the Pembina Institute, Fairmont has undertaken a multitude of sustainable energy initiatives. Through its award- winning environmental program, Fairmont's Green Partnership, properties across the Fairmont chain have incorporated clean energy solutions into their daily operations. These include:
Wind Power: In Alberta, The Fairmont Chateau Lake Louise has been purchasing green power since 1999 through an agreement with the Canadian Eco-Logo certified Canadian Hydro Developers. Presently 40 percent of the property's electricity needs are met by a blend of wind and run-of-river electricity generation. Green power, derived from sources including wind, run-of-river hydro, and biomass, has minimal impacts on the environment and produces minimal greenhouse gas emissions compared to traditional generation methods. In the United States, The Fairmont Washington, D.C., has partnered with Pepco Energy Services to supply the 415-room hotel with over 3 million kilowatt hours (kWh) of electricity generated from renewable resources, 10% of which will be derived from wind farms located in the Mid-Atlantic region.
Solar Power: Solar systems have now been installed in 9 chalets at Fairmont Kenuak, a collection of 13 cabins located in one of North America's largest private reserves encompassing 65,000 acres of majestic forests, abundant wildlife and over 70 lakes. Detached from the area's electrical grid, the chalets currently draw 50% of their power from solar means. This energy is then used to power well water pumps, some kitchen and furnace fans, dishwashers, supplementary lighting, and emergency radios, as well as providing limited power for corporate groups to use for audio-visual presentations.
Cogeneration: In 2006, the Fairmont St Andrews, Scotland installed a combined heat and power system that uses a gas fired engine to drive generators and produce electricity. The waste heat and energy from the exhaust, cooling water and lubricating oil is recovered and converted to power the resort's space heating and domestic hot water requirements. The new system is estimated to reduce over 3000 tonnes of carbon dioxide annually.
Heat Recovery: The innovative engineering team at The Fairmont Waterfront installed a heat-recovery system at that captures condensate, steam that has been condensed back into water, from domestic hot-water tanks, and then uses it to preheat incoming city water. This process saves an estimated 305,380 kilowatt-hours (1,100 GJ) per year, roughly the same amount of energy it would take to power approximately 7 average-sized homes.
Retrofits: In 2006, The Fairmont Sonoma Mission Inn & Spa completed an extensive lighting retrofit, replacing 4,440 incandescent bulbs with energy-efficient fluorescent lighting. As a result, the hotel now saves over 203,000 kilowatt-hours of energy annually representing a cost savings of $61,000.
About Fairmont Hotels & Resorts
Fairmont Hotels & Resorts is a leader in sustainable tourism and was the first major hotel chain in North America to embrace environmental stewardship in its daily operations through the implementation of its own Green Partnership Program. The program focuses on improvements in the areas of waste management, energy and water conservation, as well as a strong element of community outreach through local groups and partnerships. Featuring a collection of fabled castles, secluded lodges, storied meeting places and modern retreats, Fairmont Hotels & Resorts opens the doors to some of the world's most celebrated addresses. With locations throughout twelve countries, our 51 distinctive hotels - including The Fairmont San Francisco, The Fairmont Banff Springs and London's Savoy - promise travelers rich experiences and lasting memories in unparalleled settings. For more information visit www.fairmont.com.
A firm advocate of sustainable energy, Fairmont Hotels & Resorts is pleased to announce its continued involvement with the Pembina Institute, a leading non-profit environmental organization that actively promotes sustainable energy solutions. As part of this ongoing commitment, Fairmont is pleased to be expanding the program in 2007 to include all of its corporate office computers across North America.
Since 2006, Fairmont has purchased an equivalent of 390 MwH of wind power to offset the greenhouse gas emissions generated by all of its front desk check-in computers. Made possible by purchasing Eco-Logo certified wind power, Fairmont will now have a total of 837 computers involved in the program resulting in a greenhouse gas reduction of approximately 160 tonnes for 2006 and 2007 combined.
Commending Fairmont on its increased role in the program is Nancy Hammer, Director of Development at the Pembina Institute. "Fairmont continues to lead by example with renewable energy solutions that are forward thinking, practical and cost efficient. In my opinion, Fairmont continues to raise the bar for environmental action in the hospitality industry".
Complementing its relationship with the Pembina Institute, Fairmont has undertaken a multitude of sustainable energy initiatives. Through its award- winning environmental program, Fairmont's Green Partnership, properties across the Fairmont chain have incorporated clean energy solutions into their daily operations. These include:
Wind Power: In Alberta, The Fairmont Chateau Lake Louise has been purchasing green power since 1999 through an agreement with the Canadian Eco-Logo certified Canadian Hydro Developers. Presently 40 percent of the property's electricity needs are met by a blend of wind and run-of-river electricity generation. Green power, derived from sources including wind, run-of-river hydro, and biomass, has minimal impacts on the environment and produces minimal greenhouse gas emissions compared to traditional generation methods. In the United States, The Fairmont Washington, D.C., has partnered with Pepco Energy Services to supply the 415-room hotel with over 3 million kilowatt hours (kWh) of electricity generated from renewable resources, 10% of which will be derived from wind farms located in the Mid-Atlantic region.
Solar Power: Solar systems have now been installed in 9 chalets at Fairmont Kenuak, a collection of 13 cabins located in one of North America's largest private reserves encompassing 65,000 acres of majestic forests, abundant wildlife and over 70 lakes. Detached from the area's electrical grid, the chalets currently draw 50% of their power from solar means. This energy is then used to power well water pumps, some kitchen and furnace fans, dishwashers, supplementary lighting, and emergency radios, as well as providing limited power for corporate groups to use for audio-visual presentations.
Cogeneration: In 2006, the Fairmont St Andrews, Scotland installed a combined heat and power system that uses a gas fired engine to drive generators and produce electricity. The waste heat and energy from the exhaust, cooling water and lubricating oil is recovered and converted to power the resort's space heating and domestic hot water requirements. The new system is estimated to reduce over 3000 tonnes of carbon dioxide annually.
Heat Recovery: The innovative engineering team at The Fairmont Waterfront installed a heat-recovery system at that captures condensate, steam that has been condensed back into water, from domestic hot-water tanks, and then uses it to preheat incoming city water. This process saves an estimated 305,380 kilowatt-hours (1,100 GJ) per year, roughly the same amount of energy it would take to power approximately 7 average-sized homes.
Retrofits: In 2006, The Fairmont Sonoma Mission Inn & Spa completed an extensive lighting retrofit, replacing 4,440 incandescent bulbs with energy-efficient fluorescent lighting. As a result, the hotel now saves over 203,000 kilowatt-hours of energy annually representing a cost savings of $61,000.
About Fairmont Hotels & Resorts
Fairmont Hotels & Resorts is a leader in sustainable tourism and was the first major hotel chain in North America to embrace environmental stewardship in its daily operations through the implementation of its own Green Partnership Program. The program focuses on improvements in the areas of waste management, energy and water conservation, as well as a strong element of community outreach through local groups and partnerships. Featuring a collection of fabled castles, secluded lodges, storied meeting places and modern retreats, Fairmont Hotels & Resorts opens the doors to some of the world's most celebrated addresses. With locations throughout twelve countries, our 51 distinctive hotels - including The Fairmont San Francisco, The Fairmont Banff Springs and London's Savoy - promise travelers rich experiences and lasting memories in unparalleled settings. For more information visit www.fairmont.com.
Tourism sector strengthens defences against Avian Flu
Aug 03, 07 | 2:00 am
The second UNWTO regional Avian and Human Influenza Simulation (AHI) was actively supported by the government of Indonesia and the Association of Southeast Asian Nations (ASEAN). It attracted 70 participants from more than 15 countries and several UN Agencies. The group modelled the impact of an evolving pandemic in the Asia Pacific region, replicating the roles of government departments, the tourism industry, international bodies and other stakeholders, including tourists themselves. It followed a similar exercise held in Paris in March, which focused on Europe, the Middle East and Africa.
In opening the event, the Secretary-General of the Indonesian Ministry of Culture and Tourism, Sapta Nirwandar, and the Executive Chairman of the Indonesian National Coordination Committee on Avian Flu, Bayu Khrisnamurti, stressed the value of international cooperation and its help in increasing the integration of Tourism issues in national coordination programmes.
With an estimated 10 million people travelling abroad at any given time and many more within their own countries, UNWTO keeps a close watch on health risks generally and AHI specifically. While there has been no change in the level of AHI alerts issued by the World Health Organization, the Tourism sector is already taking action to be fully aware of the potential dangers and to prepare effectively.
The simulation helped to identify possible gaps in response systems and to understand the pressures and dynamics in a real-world situation. It underscored the need for:
good planning,
clear communications,
a fully prepared and trained work force, and
unambiguous procedures for customer and workplace safety.
UNWTO Assistant Secretary-General Geoffrey Lipman said "The Avian Flu threat does not diminish and like other sectors of the economy Tourism needs to strengthen its defences. Every time we hold an awareness-building exercise of this nature we increase preparedness and strengthen our coordination mechanisms. It is particularly important for integrating the widespread use of our response portal www.sos.travel as a robust component of the global response system".
After conducting its next simulation exercise in Mexico from 19-20 September 2007 for the Americas, UNWTO will have trained together with governments and international agencies around the world. This will provide a solid base for intensified national simulations in 2008. For more information visit www.unwto.org
Source: UNWTO
The second UNWTO regional Avian and Human Influenza Simulation (AHI) was actively supported by the government of Indonesia and the Association of Southeast Asian Nations (ASEAN). It attracted 70 participants from more than 15 countries and several UN Agencies. The group modelled the impact of an evolving pandemic in the Asia Pacific region, replicating the roles of government departments, the tourism industry, international bodies and other stakeholders, including tourists themselves. It followed a similar exercise held in Paris in March, which focused on Europe, the Middle East and Africa.
In opening the event, the Secretary-General of the Indonesian Ministry of Culture and Tourism, Sapta Nirwandar, and the Executive Chairman of the Indonesian National Coordination Committee on Avian Flu, Bayu Khrisnamurti, stressed the value of international cooperation and its help in increasing the integration of Tourism issues in national coordination programmes.
With an estimated 10 million people travelling abroad at any given time and many more within their own countries, UNWTO keeps a close watch on health risks generally and AHI specifically. While there has been no change in the level of AHI alerts issued by the World Health Organization, the Tourism sector is already taking action to be fully aware of the potential dangers and to prepare effectively.
The simulation helped to identify possible gaps in response systems and to understand the pressures and dynamics in a real-world situation. It underscored the need for:
good planning,
clear communications,
a fully prepared and trained work force, and
unambiguous procedures for customer and workplace safety.
UNWTO Assistant Secretary-General Geoffrey Lipman said "The Avian Flu threat does not diminish and like other sectors of the economy Tourism needs to strengthen its defences. Every time we hold an awareness-building exercise of this nature we increase preparedness and strengthen our coordination mechanisms. It is particularly important for integrating the widespread use of our response portal www.sos.travel as a robust component of the global response system".
After conducting its next simulation exercise in Mexico from 19-20 September 2007 for the Americas, UNWTO will have trained together with governments and international agencies around the world. This will provide a solid base for intensified national simulations in 2008. For more information visit www.unwto.org
Source: UNWTO
JV adds 1,000 rooms to portfolio with six-hotel acquisition
Aug 03, 07 | 1:57 am
By Barbra Murray, CPN
GoldenTree InSite Partners has teamed up with Aimbridge Hospitality and JF Capital Advisors on the acquisition of six Doubletree and Wyndham Garden Hotels properties located predominantly in key suburban markets in the Midwest. The purchase was made as part of the strategic alliance the three entities formed in January of this year for the purpose of acquiring $500 million in hotel assets over a two-year period.
The team relied on debt financing from Lehman Brothers to facilitate the transaction. Two of the hotels are located in the suburban Chicago market, and three more sit just outside of Schaumburg, Ill., Overland Park, Kans., and Novi, Mich. The remaining hotel is in the Charlotte, N.C., area. Each of the properties is in growth mode, yet they are value-add assets and the partnership will invest several million of dollars in additional upgrades. Aimbridge already has a connection to the properties, having made its debut in the hotel management industry in 2003 by securing franchise agreements for the six properties and two additional hotels from Crow Holdings, which had just acquired the eight-hotel portfolio. GoldenTree, Aimbridge and JF Capital worked together before, prior to their $500 million acquisition quest. In August 2006, the partners joined forces to buy and renovate the 300-room Doubletree Hotel Dallas-Campbell Centre and the 248-room Doubletree Hotel Denver-Southeast in Aurora, Colo.
Across the country, the hospitality market is picking up--and in some cases, thriving--partially due to a boost in corporate travel, according to Ernst & Young's 2007 U.S. Lodging Report. Continued positive growth is anticipated for this year, with RevPAR and the average daily room rate on target to increase further.
GoldenTree, based in New York City, is an international real estate investment firm that commits capital to residential, retail, industrial, office, hotel and mixed-use projects. Carrollton, Tex.-headquartered Ambridge is a hotel real estate and management firm that operates properties carrying the Doubletree, Wyndham and Hilton Garden Inn flags. New York City's JF Capital is a hospitality investment and advisory firm that has completed approximately $12 billion in mergers and acquisitions and capital market transaction in the hospitality sector.
Source: Commercial Property News
By Barbra Murray, CPN
GoldenTree InSite Partners has teamed up with Aimbridge Hospitality and JF Capital Advisors on the acquisition of six Doubletree and Wyndham Garden Hotels properties located predominantly in key suburban markets in the Midwest. The purchase was made as part of the strategic alliance the three entities formed in January of this year for the purpose of acquiring $500 million in hotel assets over a two-year period.
The team relied on debt financing from Lehman Brothers to facilitate the transaction. Two of the hotels are located in the suburban Chicago market, and three more sit just outside of Schaumburg, Ill., Overland Park, Kans., and Novi, Mich. The remaining hotel is in the Charlotte, N.C., area. Each of the properties is in growth mode, yet they are value-add assets and the partnership will invest several million of dollars in additional upgrades. Aimbridge already has a connection to the properties, having made its debut in the hotel management industry in 2003 by securing franchise agreements for the six properties and two additional hotels from Crow Holdings, which had just acquired the eight-hotel portfolio. GoldenTree, Aimbridge and JF Capital worked together before, prior to their $500 million acquisition quest. In August 2006, the partners joined forces to buy and renovate the 300-room Doubletree Hotel Dallas-Campbell Centre and the 248-room Doubletree Hotel Denver-Southeast in Aurora, Colo.
Across the country, the hospitality market is picking up--and in some cases, thriving--partially due to a boost in corporate travel, according to Ernst & Young's 2007 U.S. Lodging Report. Continued positive growth is anticipated for this year, with RevPAR and the average daily room rate on target to increase further.
GoldenTree, based in New York City, is an international real estate investment firm that commits capital to residential, retail, industrial, office, hotel and mixed-use projects. Carrollton, Tex.-headquartered Ambridge is a hotel real estate and management firm that operates properties carrying the Doubletree, Wyndham and Hilton Garden Inn flags. New York City's JF Capital is a hospitality investment and advisory firm that has completed approximately $12 billion in mergers and acquisitions and capital market transaction in the hospitality sector.
Source: Commercial Property News
Developers selling hotels upon completion
Aug 03, 07 | 1:57 am
In New York's booming hotel market, it pays to build and then get out of the way.
With about 10,000 rooms in the pipeline, watch for more "forward sales," in which a developer builds the hotel, and another entity -- either a hotel operating company or investment group -- commits to buying the finished product.
Jeffrey Davis, an executive vice president in the hotels division of Jones Lang LaSalle, said the number of forward sales is growing because developers -- some of whom have no experience as hoteliers and may fear owning a specialized piece of real estate -- recognize the potential profit in hotels.
"Developers who don't necessarily know anything about hotels are seeing this as a good time in the market to develop the highest and best use out of their land," Davis said.
Some name-brand hotel chains operating in New York now use developers who build the hotel with established investment groups financing the construction or buying the completed building. Once a project is finished, operators such as Marriott and Hilton run them.
This sort of division of labor has increased in New York City in recent years, primarily thanks to Sam Chang, the most prolific hotel builder in the city.
For example, Chang, CEO of McSam Hotel, is selling his hotel at 20 Maiden Lane under an agreement reached last year. It will be a Wyndham Garden with 110 rooms opening in 2008.
However, Chang himself has started to buck the trend he created.
"Ever since the end of last year, we have been changing our strategy," Chang said. "We've stopped selling any of our hotels. Right now, we are a keeper [of hotels]."
But more forward sales overall are likely because hotel operating companies from around the country and world are itching to get into the New York City market and willing to pay, or find a hotel investment group to pay, exorbitant prices to purchase hotels from a developer, he said.
For instance, Marriott International Inc. and Ian Schrager recently announced they will be opening as many as 100 boutique hotels in cities around the country, including New York, many of which will be conversions or renovations.
"Given the fact that it's very hard to find deals in New York today, it's a very easy way for hotel operating companies to get a flag in Manhattan and not have to go through the brain damage of site selection and development," said Davis. He is assisting several companies in underwriting deals involving forward sales, typically of limited-service hotels, in the city and other markets in the country. Details were not yet available as the sales had not been completed.
"If the operator wants to have a presence in New York really badly, they will generally put up the money to do it," he continued. "But what we see more often is the operators partnering with the capital sources out there."
Most hotel operators recognized as national brands by consumers began shedding their hotel real estate as far back as the 1980s, including Hilton Hotels, to focus on operations, hotels brokers said. Some -- such as InterContinental Hotels Group and Starwood Hotels and Resorts Worldwide -- have been doing so more recently.
That left the field wide open for other investors to step in and purchase the hotels. Sources of investment capital these days are less often public funds and real estate investment trusts, though Hersha Hospitality Trust is prevalent in the city, Davis said. More often they are private-equity funds, opportunity funds or pension funds.
"Private-equity money has been the single-largest owner or acquirer of lodging real estate assets," said Amit Kapoor, a research analyst who covers the international gaming and lodging industries for Gabelli & Co., based in Rye, N.Y.
"As an example, not including [their recent purchase of] Hilton Hotels, over the last 15 years, Blackstone's real estate funds have acquired over 1,400 hotels with approximately 200,000 rooms, and reflecting a value of approximately $28 billion," he said. That includes such hotels in New York as the Saratoga and the London NYC.
In New York City, John Lam, the chairman and CEO of the Lam Group and a former partner of Chang's (they developed about 10 hotels together), has also profited by selling a handful of the 20 hotels he has built or has under development. Unlike Chang, though, Lam has a hotel management division in his firm, but he said he has no intention of turning his back on potential hotel buyers.
Source: The Real Deal
In New York's booming hotel market, it pays to build and then get out of the way.
With about 10,000 rooms in the pipeline, watch for more "forward sales," in which a developer builds the hotel, and another entity -- either a hotel operating company or investment group -- commits to buying the finished product.
Jeffrey Davis, an executive vice president in the hotels division of Jones Lang LaSalle, said the number of forward sales is growing because developers -- some of whom have no experience as hoteliers and may fear owning a specialized piece of real estate -- recognize the potential profit in hotels.
"Developers who don't necessarily know anything about hotels are seeing this as a good time in the market to develop the highest and best use out of their land," Davis said.
Some name-brand hotel chains operating in New York now use developers who build the hotel with established investment groups financing the construction or buying the completed building. Once a project is finished, operators such as Marriott and Hilton run them.
This sort of division of labor has increased in New York City in recent years, primarily thanks to Sam Chang, the most prolific hotel builder in the city.
For example, Chang, CEO of McSam Hotel, is selling his hotel at 20 Maiden Lane under an agreement reached last year. It will be a Wyndham Garden with 110 rooms opening in 2008.
However, Chang himself has started to buck the trend he created.
"Ever since the end of last year, we have been changing our strategy," Chang said. "We've stopped selling any of our hotels. Right now, we are a keeper [of hotels]."
But more forward sales overall are likely because hotel operating companies from around the country and world are itching to get into the New York City market and willing to pay, or find a hotel investment group to pay, exorbitant prices to purchase hotels from a developer, he said.
For instance, Marriott International Inc. and Ian Schrager recently announced they will be opening as many as 100 boutique hotels in cities around the country, including New York, many of which will be conversions or renovations.
"Given the fact that it's very hard to find deals in New York today, it's a very easy way for hotel operating companies to get a flag in Manhattan and not have to go through the brain damage of site selection and development," said Davis. He is assisting several companies in underwriting deals involving forward sales, typically of limited-service hotels, in the city and other markets in the country. Details were not yet available as the sales had not been completed.
"If the operator wants to have a presence in New York really badly, they will generally put up the money to do it," he continued. "But what we see more often is the operators partnering with the capital sources out there."
Most hotel operators recognized as national brands by consumers began shedding their hotel real estate as far back as the 1980s, including Hilton Hotels, to focus on operations, hotels brokers said. Some -- such as InterContinental Hotels Group and Starwood Hotels and Resorts Worldwide -- have been doing so more recently.
That left the field wide open for other investors to step in and purchase the hotels. Sources of investment capital these days are less often public funds and real estate investment trusts, though Hersha Hospitality Trust is prevalent in the city, Davis said. More often they are private-equity funds, opportunity funds or pension funds.
"Private-equity money has been the single-largest owner or acquirer of lodging real estate assets," said Amit Kapoor, a research analyst who covers the international gaming and lodging industries for Gabelli & Co., based in Rye, N.Y.
"As an example, not including [their recent purchase of] Hilton Hotels, over the last 15 years, Blackstone's real estate funds have acquired over 1,400 hotels with approximately 200,000 rooms, and reflecting a value of approximately $28 billion," he said. That includes such hotels in New York as the Saratoga and the London NYC.
In New York City, John Lam, the chairman and CEO of the Lam Group and a former partner of Chang's (they developed about 10 hotels together), has also profited by selling a handful of the 20 hotels he has built or has under development. Unlike Chang, though, Lam has a hotel management division in his firm, but he said he has no intention of turning his back on potential hotel buyers.
Source: The Real Deal
Top Ten Global Issues & Challenges in the Hospitality Industry
The International Society of Hospitality Consultants (ISHC) announces the Top Ten Global Issues & Challenges in the Hospitality Industry for 2006. At the recent ISHC Annual Conference held in San Diego, California, ISHC Members participated in a series of roundtable discussions to identify the ISHC Top Ten Global Issues and Challenges in the Hospitality Industry. While there were many issues discussed, in the final voting the membership identified the following top ten issues as the ones that can be expected to potentially have the greatest impact on the industry:
1. Changing Labor Conditions : The hospitality industry faces labour and human resource challenges including the compression or shrinking of the labor force, union issues and escalating health care and benefit costs among others. Compression of Labor force - the traditional labor force is shrinking as a result of changing demographics. Slowing population growth rates, an aging population, and fewer persons in the working-age group, have all contributed to the shrinking labor supply.
2. Escalating Operating Costs : There is concern that operating expenses will escalate at a greater rate than income, potentially eroding the bottom line. Operators need to monitor the following:
a. Energy Costs: Global increases in demand and the natural disasters in the Gulf States have stretched energy supplies. Prices increased in 2005 and the forecast is for higher prices in 2006. Energy management/conservation programs and employee awareness are essential to mitigate exposure to dramatically escalating energy costs. Higher insurance costs are a concern, particularly due to escalating premium on account of natural disasters and terrorism.
b. Labour Costs: These are rising globally due to shortages of good skilled manpower and competitive forces in luring and retaining staff.
c. Cost of maintaining brand standards: Many brands are changing brand standards, and "raising the bar" via increased services and/or amenities in an attempt to gain a competitive edge in the marketplace which has resulted in increases in operating costs for many hotels.
3. Impact of Rising Energy Costs on Consumer Travel & Hotel Demand : A decline in all types of consumer travel may be possible as higher energy costs take a bigger bite out of personal and corporate budgets, with travel expenditures typically one of the first discretionary items to be reduced or eliminated. On a positive note, energy's continuing threat to the industry will undoubtedly force industry execs to be more creative, or at least more conservative, in its use and consumption. Participants at all industry levels will need to be more efficient with limited/dwindling supplies, and/or find alternative ways of delivering similar service to their guests without impacting their quality of stay. "Greening" of hotel operations may actually become the norm as opposed to a discretionary program as both consumers and hotels of necessity become more focused on energy conservation.
4. Escalating Renovation and Construction Costs : Increases in renovation and construction costs are resulting in escalating capital reinvestment exposure for many existing hotels and increased capital requirements for new construction. Many branded companies are increasingly demanding improvements and upgrades in the physical condition of hotels and more stringent adherence to brand standards to remain competitive, resulting in escalating capital reinvestment exposure for their hotels. With improved market conditions, developers continue to look for additional opportunities to build hotels. Yet higher costs for construction will be one mitigating factor to new development. There are several factors that will impact the financial feasibility of new construction including: 1) rapid escalation in the price of building materials; 2) higher energy costs and 3) rising interest costs. Most major hotel brands are taking a hard line on improving brand standards and are requiring more costly hotel furnishings and materials. As a result, the cost to build hotels is expected to increase at a pace that is greater then anticipated revenue increases. (In India the escalating cost of land for hotels in some cities will be a major factor in 2006). The good news is that as higher costs hamper new development, the existing inventory of hotels can benefit by increasing their tariffs.
5. Havoc from Recent Natural Disasters : Whether a long-term trend from global warming or part of a long-term cycle, natural disasters appear to have become more frequent in recent years. The implications are profound, especially since many affected areas are heavily reliant on tourism for economic vitality. The potential threat of avian flu could have much broader impact than SARS had. New virus strains and other diseases resistant to antibiotics may be on the horizon. Travelers are increasingly choosing destinations in part on the perceived level of risk. Some locations will be winners, while others may need to diversify their economies to supplement tourism. A secondary effect is the post-event consequences of natural disasters. Some destinations will not be able to accommodate travelers for years to come. Resources that go into rebuilding local infrastructure drain funds that might otherwise go toward economic growth.
6. Growing Global Uncertainly About Safety and Security : There is broad concern among travelers about protecting their own safety. These concerns range from the healthfulness of airplane ventilation to vulnerability to terrorism. Governments are increasingly trying to manage risks, sometimes impacting a country's tourism infrastructure, such as when restrictive visitation policies are enacted. The ongoing turmoil in the Middle East, the coordinated bus bombings in London, and various other events around the world has caused travelers to rethink traditional assumptions regarding leisure travel. Some remote and non-traditional destinations may find tourism increasing as a result of those places having the right mix of attributes currently in demand by tourists.
7. Evolving Customer Expectations : The ability to satisfy and anticipate evolving customer needs continues to be a significant priority. Specifically, customers are increasingly sophisticated in their use of technology to research, select and purchase lodging. Furthermore, customers are resisting a "chain mentality" and there is true opportunity in creating unique and customized experiences, while minding the "bottom line". As a result, marketing approaches will need to be adapted and updated to effectively reach the customer. In addition, true differentiation is increasingly difficult to achieve in the luxury market as it has become "mainstream".
8. Condo-hotels Growing Rapidly : The recent surge in condo-hotels and alternative ownership has brought on a whole new set of risks and challenges for developers, lenders, unit owners and management. Alternative ownership has presented opportunities for developers, in particular by substantially reducing their financial exposure in developing projects. There are, however, looming issues from developer representations in connection with the sale of units to product/unit warranties and/or latent defects that represent potential liability and exposure for developers down the road. From the customer perspective it remains to be seen whether individual unit owner expectations will be met over time.
9. Accelerating Change and Merging of Technologies : Hospitality systems and their interfaces are rapidly moving to Internet-based technology, which allows dramatically easier and more flexible integration and hence more complete guest/operational data. Many hotel operators are moving to take full advantage of this opportunity to streamline their operations, but adoption is frequently hampered by older systems and outdated infrastructure. The investment required to upgrade is significant, but the full benefits of this change cannot be realized without it. This highlights the industry's continuing need for education, both of management companies in how to recognize and quantify the business benefits of properly integrated technology, and of the end users in using their systems most efficiently. Most current systems are under-utilized, a situation not helped by the industry's reluctance to invest in regular refresher training for the users. Full optimization of the operation requires effective systems integration and adoption of the new technology.
10. Increasing Consolidation of Hotel Brands / Companies : As brands consolidate and proliferate in their market reach owners are finding it more difficult to select a brand that is not already represented in their marketplace or one that is not influenced by territorial encroachment issues. As this trend evolves owners and management companies are finding a shift in the negotiation power toward the brands that may impact deal structures. Major brand companies continue to isolate consumer segments and strengthen and/or create specific brand niches to address micro-markets while at the same time making it more difficult for the consumer to truly understand the 'inter' and 'intra' brand difference. What makes sense to the hotel developer or the brand becomes confusing to the customer thus impacting both consumer pricing and commoditizing hotel products. Public hotel companies in search of shareholder value are poised to create conditions for additional consolidation, not unlike the online world where 90% of online hotel inventory is managed by only a handful of companies.
Courtesy : ISHC - www.ishc.com
1. Changing Labor Conditions : The hospitality industry faces labour and human resource challenges including the compression or shrinking of the labor force, union issues and escalating health care and benefit costs among others. Compression of Labor force - the traditional labor force is shrinking as a result of changing demographics. Slowing population growth rates, an aging population, and fewer persons in the working-age group, have all contributed to the shrinking labor supply.
2. Escalating Operating Costs : There is concern that operating expenses will escalate at a greater rate than income, potentially eroding the bottom line. Operators need to monitor the following:
a. Energy Costs: Global increases in demand and the natural disasters in the Gulf States have stretched energy supplies. Prices increased in 2005 and the forecast is for higher prices in 2006. Energy management/conservation programs and employee awareness are essential to mitigate exposure to dramatically escalating energy costs. Higher insurance costs are a concern, particularly due to escalating premium on account of natural disasters and terrorism.
b. Labour Costs: These are rising globally due to shortages of good skilled manpower and competitive forces in luring and retaining staff.
c. Cost of maintaining brand standards: Many brands are changing brand standards, and "raising the bar" via increased services and/or amenities in an attempt to gain a competitive edge in the marketplace which has resulted in increases in operating costs for many hotels.
3. Impact of Rising Energy Costs on Consumer Travel & Hotel Demand : A decline in all types of consumer travel may be possible as higher energy costs take a bigger bite out of personal and corporate budgets, with travel expenditures typically one of the first discretionary items to be reduced or eliminated. On a positive note, energy's continuing threat to the industry will undoubtedly force industry execs to be more creative, or at least more conservative, in its use and consumption. Participants at all industry levels will need to be more efficient with limited/dwindling supplies, and/or find alternative ways of delivering similar service to their guests without impacting their quality of stay. "Greening" of hotel operations may actually become the norm as opposed to a discretionary program as both consumers and hotels of necessity become more focused on energy conservation.
4. Escalating Renovation and Construction Costs : Increases in renovation and construction costs are resulting in escalating capital reinvestment exposure for many existing hotels and increased capital requirements for new construction. Many branded companies are increasingly demanding improvements and upgrades in the physical condition of hotels and more stringent adherence to brand standards to remain competitive, resulting in escalating capital reinvestment exposure for their hotels. With improved market conditions, developers continue to look for additional opportunities to build hotels. Yet higher costs for construction will be one mitigating factor to new development. There are several factors that will impact the financial feasibility of new construction including: 1) rapid escalation in the price of building materials; 2) higher energy costs and 3) rising interest costs. Most major hotel brands are taking a hard line on improving brand standards and are requiring more costly hotel furnishings and materials. As a result, the cost to build hotels is expected to increase at a pace that is greater then anticipated revenue increases. (In India the escalating cost of land for hotels in some cities will be a major factor in 2006). The good news is that as higher costs hamper new development, the existing inventory of hotels can benefit by increasing their tariffs.
5. Havoc from Recent Natural Disasters : Whether a long-term trend from global warming or part of a long-term cycle, natural disasters appear to have become more frequent in recent years. The implications are profound, especially since many affected areas are heavily reliant on tourism for economic vitality. The potential threat of avian flu could have much broader impact than SARS had. New virus strains and other diseases resistant to antibiotics may be on the horizon. Travelers are increasingly choosing destinations in part on the perceived level of risk. Some locations will be winners, while others may need to diversify their economies to supplement tourism. A secondary effect is the post-event consequences of natural disasters. Some destinations will not be able to accommodate travelers for years to come. Resources that go into rebuilding local infrastructure drain funds that might otherwise go toward economic growth.
6. Growing Global Uncertainly About Safety and Security : There is broad concern among travelers about protecting their own safety. These concerns range from the healthfulness of airplane ventilation to vulnerability to terrorism. Governments are increasingly trying to manage risks, sometimes impacting a country's tourism infrastructure, such as when restrictive visitation policies are enacted. The ongoing turmoil in the Middle East, the coordinated bus bombings in London, and various other events around the world has caused travelers to rethink traditional assumptions regarding leisure travel. Some remote and non-traditional destinations may find tourism increasing as a result of those places having the right mix of attributes currently in demand by tourists.
7. Evolving Customer Expectations : The ability to satisfy and anticipate evolving customer needs continues to be a significant priority. Specifically, customers are increasingly sophisticated in their use of technology to research, select and purchase lodging. Furthermore, customers are resisting a "chain mentality" and there is true opportunity in creating unique and customized experiences, while minding the "bottom line". As a result, marketing approaches will need to be adapted and updated to effectively reach the customer. In addition, true differentiation is increasingly difficult to achieve in the luxury market as it has become "mainstream".
8. Condo-hotels Growing Rapidly : The recent surge in condo-hotels and alternative ownership has brought on a whole new set of risks and challenges for developers, lenders, unit owners and management. Alternative ownership has presented opportunities for developers, in particular by substantially reducing their financial exposure in developing projects. There are, however, looming issues from developer representations in connection with the sale of units to product/unit warranties and/or latent defects that represent potential liability and exposure for developers down the road. From the customer perspective it remains to be seen whether individual unit owner expectations will be met over time.
9. Accelerating Change and Merging of Technologies : Hospitality systems and their interfaces are rapidly moving to Internet-based technology, which allows dramatically easier and more flexible integration and hence more complete guest/operational data. Many hotel operators are moving to take full advantage of this opportunity to streamline their operations, but adoption is frequently hampered by older systems and outdated infrastructure. The investment required to upgrade is significant, but the full benefits of this change cannot be realized without it. This highlights the industry's continuing need for education, both of management companies in how to recognize and quantify the business benefits of properly integrated technology, and of the end users in using their systems most efficiently. Most current systems are under-utilized, a situation not helped by the industry's reluctance to invest in regular refresher training for the users. Full optimization of the operation requires effective systems integration and adoption of the new technology.
10. Increasing Consolidation of Hotel Brands / Companies : As brands consolidate and proliferate in their market reach owners are finding it more difficult to select a brand that is not already represented in their marketplace or one that is not influenced by territorial encroachment issues. As this trend evolves owners and management companies are finding a shift in the negotiation power toward the brands that may impact deal structures. Major brand companies continue to isolate consumer segments and strengthen and/or create specific brand niches to address micro-markets while at the same time making it more difficult for the consumer to truly understand the 'inter' and 'intra' brand difference. What makes sense to the hotel developer or the brand becomes confusing to the customer thus impacting both consumer pricing and commoditizing hotel products. Public hotel companies in search of shareholder value are poised to create conditions for additional consolidation, not unlike the online world where 90% of online hotel inventory is managed by only a handful of companies.
Courtesy : ISHC - www.ishc.com
Wednesday, August 1, 2007
Women and wine put beer sales off in UK
The rise in the number of female drinkers has put the tradition of downing a few beers in the pub under threat, according to a new report from market analyst Datamonitor. It reckons that beer is losing out to wine in sales, and has forecast that wine sales will grow by more than 15% over the next four years to £7b, while beer sales will fall by 3% over the same period.
Datamonitor's report found that annual British wine consumption had increased from 14 litres a head in 1998 to almost 17 litres last year, and will reach 19.3 litres per head by 2008. But the British Beer & Pub Association (BBPA) slammed Datamonitor's findings, saying they do not match its own figures. A BBPA spokeswoman said: "There is no denying that wine sales and consumption have increased in the past decade. However, beer is still the drink of choice with UK consumers, with consumption per head increasing from 120.2 litres in 2000 to 124.3 litres in 2003." Some pub companies and brewers are nonetheless preparing for a downturn in beer sales. Earlier this year Greene King launched Beer to Dine For, which comes in a wine-style bottle, in a bid to make beer more attractive to women and to bring it back to the dining table.
Courtesy: Caterer & Hotelkeeper
Datamonitor's report found that annual British wine consumption had increased from 14 litres a head in 1998 to almost 17 litres last year, and will reach 19.3 litres per head by 2008. But the British Beer & Pub Association (BBPA) slammed Datamonitor's findings, saying they do not match its own figures. A BBPA spokeswoman said: "There is no denying that wine sales and consumption have increased in the past decade. However, beer is still the drink of choice with UK consumers, with consumption per head increasing from 120.2 litres in 2000 to 124.3 litres in 2003." Some pub companies and brewers are nonetheless preparing for a downturn in beer sales. Earlier this year Greene King launched Beer to Dine For, which comes in a wine-style bottle, in a bid to make beer more attractive to women and to bring it back to the dining table.
Courtesy: Caterer & Hotelkeeper
Do’s and Don’ts of Hotel Technology
As a continuation of the 32 do’s and don’ts about the Hospitality Industry given in the previous issue of the magazine, we are giving the next 32 below.
Do cut cables instead or leaving long trailing or curled up wires in rooms.
Do place a rechargeable flashlight by the bed that automatically illuminates during an emergency or power failure.
Do not place a PC in each of your guestrooms. It's a waste of money.
Do think about placing a full size keyboard inside the desk drawer for guest use. But at the same time, consider how to keep it clean.
Do remember that if you plan to place a glass surface desk in a guestroom, it's almost impossible to use a mouse, unless you place a mouse mat.
Do understand that technology will fail and most likely at the worst possible time - like the Friday afternoon of a long weekend. Be prepared!
Do not overcharge for services in the Business Center - like printing a singe A4 page - especially if your room rates are already high.
Do not believe that just by deploying technology in your hotel service levels will increase. This is a people business.
Do make the lighting levels in your guestrooms dimmable - from very bright to a nice warm and cozy mood.
Do place a shaving mirror close to the shaver socket.
Do try and place the in-room safe at a reasonable height and not one where you have to get down on all fours to try and enter the PIN.
Do be conscious that if you put labels on switches that are next to the bed, remember that the guest may be reading them upside down - and without spectacles.
Do have a switch which has a small glowing light that the guest can easily find when waking up in a darkened room, often disoriented by jet lag and unfamiliar surroundings.
Do understand that the guest may only stay in your hotel for one day, and cannot spend time working their way through complex remote control devices, often labeled in a language that is unfamiliar to them.
Don't place a speaker volume control in the bathroom, unless it works.
Do remember that guests trust their mobile phones as alarms more than they do your call center to wake them up.
Do have excellent bathroom lighting - consult with a woman to tell you if it's the right level.
Do have the Room Attendant pay attention to the noise level of the room fan coil, and report it to engineering (for immediate remedial action) if it's noisy.
Do stock the most popular type mobile phone battery chargers in your Business Center.
Do have DVD players available for Guest use.
Don't just have PC's in your Internet corners, have a MAC as well.
Do print your Instant Messenger address on your Business card.
Do insist that your staff use a spell checker on all documents before sending them out.
Do make sure that all software used in your business is legal.
Do use the freely available technologies like RSS, Google Earth and Pod casting to help promote your business.
Do put an internet browsing station in your staff canteen or recreation area. Encourage your staff to check email during breaks and get familiar with the technology.
Do get your technology vendors to update you twice a year on what is happening with their products.
Don't just look at the hospitality industry when thinking about technology - look everywhere.
Do consider making information about your property downloadable into a PDA for easy reference by your guests.
Do not change any configuration or settings on a guest's computer unless you have their written approval on a liability waiver form.
Do perform regular system backups, and keep your data backup off-site.
Do make sure that the staff who escort a guest to a room informs them that your hotel has in-room HSIA installed, and offers to help make the connection.
This whole list which has been carried for the two issues of the magazine has been compiled by
Mr Kamal Sharma,
Secretary General FHRAI
Former Managing Director
of Hotel Corporation of India
We welcome the idea of growing the list, and contributions can be sent to
e-mail : kamalsharma@fhrai.com
Do cut cables instead or leaving long trailing or curled up wires in rooms.
Do place a rechargeable flashlight by the bed that automatically illuminates during an emergency or power failure.
Do not place a PC in each of your guestrooms. It's a waste of money.
Do think about placing a full size keyboard inside the desk drawer for guest use. But at the same time, consider how to keep it clean.
Do remember that if you plan to place a glass surface desk in a guestroom, it's almost impossible to use a mouse, unless you place a mouse mat.
Do understand that technology will fail and most likely at the worst possible time - like the Friday afternoon of a long weekend. Be prepared!
Do not overcharge for services in the Business Center - like printing a singe A4 page - especially if your room rates are already high.
Do not believe that just by deploying technology in your hotel service levels will increase. This is a people business.
Do make the lighting levels in your guestrooms dimmable - from very bright to a nice warm and cozy mood.
Do place a shaving mirror close to the shaver socket.
Do try and place the in-room safe at a reasonable height and not one where you have to get down on all fours to try and enter the PIN.
Do be conscious that if you put labels on switches that are next to the bed, remember that the guest may be reading them upside down - and without spectacles.
Do have a switch which has a small glowing light that the guest can easily find when waking up in a darkened room, often disoriented by jet lag and unfamiliar surroundings.
Do understand that the guest may only stay in your hotel for one day, and cannot spend time working their way through complex remote control devices, often labeled in a language that is unfamiliar to them.
Don't place a speaker volume control in the bathroom, unless it works.
Do remember that guests trust their mobile phones as alarms more than they do your call center to wake them up.
Do have excellent bathroom lighting - consult with a woman to tell you if it's the right level.
Do have the Room Attendant pay attention to the noise level of the room fan coil, and report it to engineering (for immediate remedial action) if it's noisy.
Do stock the most popular type mobile phone battery chargers in your Business Center.
Do have DVD players available for Guest use.
Don't just have PC's in your Internet corners, have a MAC as well.
Do print your Instant Messenger address on your Business card.
Do insist that your staff use a spell checker on all documents before sending them out.
Do make sure that all software used in your business is legal.
Do use the freely available technologies like RSS, Google Earth and Pod casting to help promote your business.
Do put an internet browsing station in your staff canteen or recreation area. Encourage your staff to check email during breaks and get familiar with the technology.
Do get your technology vendors to update you twice a year on what is happening with their products.
Don't just look at the hospitality industry when thinking about technology - look everywhere.
Do consider making information about your property downloadable into a PDA for easy reference by your guests.
Do not change any configuration or settings on a guest's computer unless you have their written approval on a liability waiver form.
Do perform regular system backups, and keep your data backup off-site.
Do make sure that the staff who escort a guest to a room informs them that your hotel has in-room HSIA installed, and offers to help make the connection.
This whole list which has been carried for the two issues of the magazine has been compiled by
Mr Kamal Sharma,
Secretary General FHRAI
Former Managing Director
of Hotel Corporation of India
We welcome the idea of growing the list, and contributions can be sent to
e-mail : kamalsharma@fhrai.com
Food & Beverage - Food Storage Rules
Schedule the purchases carefully and avoid excessive buys. Spoilage of highly perishable items should be kept to an absolute minimum. Make sure the coolers are well organized and always rotate stock after a delivery.
Store items with a high risk of theft in very visible locations. Too often, I see small, high cost portions of premium meats and seafood left in storage areas far from management's view. Certain operations stock 5 ounce tenderloin portions and jumbo shrimp in storage areas well away from the office. It's much better to move these items close to your field of vision.
If you like video surveillance systems, make sure one of the cameras is pointed at the location used to store high risk items. If you use pull sheets, keep the sheets for these coolers in your office and in plain view.
You should know how many portions are available for sale to customers at the start of each shift. On a rotation basis, you should subtract the meal period POS menu item counts from the opening quantity and check the inventory. At a minimum, count these high risk items daily.
Make your freezers easy to count. Keep everything in the exact same location at all times. Messy freezers are a problem which should be solved ASAP. If items are improperly stored in the frigid environment, it's very likely you will order more when they are in stock. Once the staff see the new delivery, theft is easier and unlikely to be detected.
Walkin coolers should follow the same rules as the freezer. If you need some space for rotation of special items, try to set aside a separate cooler or a defined section of your larger cooler. Most items should be stored in the exact same location at all times. Orderly freezers and coolers make ordering more efficient and help prevent unwanted losses due to theft and spoilage.
Finally, dry storage areas are typically the best maintained of all inventory locations. Make sure super expensive items like saffron and truffle oil is in a place where theft is completely impossible. Keep the storage rooms dry and cool and watch expiration dates. Try to reorder dry items using a par stock system.
Determining par levels may be difficult for event caterers but most operations should find two or three par levels sufficient. For busy periods, build the stock to the high par level.
Drop the par when business is slow. Maintain the status quo at other times.
Courtesy: hotelnewsresource.com
Store items with a high risk of theft in very visible locations. Too often, I see small, high cost portions of premium meats and seafood left in storage areas far from management's view. Certain operations stock 5 ounce tenderloin portions and jumbo shrimp in storage areas well away from the office. It's much better to move these items close to your field of vision.
If you like video surveillance systems, make sure one of the cameras is pointed at the location used to store high risk items. If you use pull sheets, keep the sheets for these coolers in your office and in plain view.
You should know how many portions are available for sale to customers at the start of each shift. On a rotation basis, you should subtract the meal period POS menu item counts from the opening quantity and check the inventory. At a minimum, count these high risk items daily.
Make your freezers easy to count. Keep everything in the exact same location at all times. Messy freezers are a problem which should be solved ASAP. If items are improperly stored in the frigid environment, it's very likely you will order more when they are in stock. Once the staff see the new delivery, theft is easier and unlikely to be detected.
Walkin coolers should follow the same rules as the freezer. If you need some space for rotation of special items, try to set aside a separate cooler or a defined section of your larger cooler. Most items should be stored in the exact same location at all times. Orderly freezers and coolers make ordering more efficient and help prevent unwanted losses due to theft and spoilage.
Finally, dry storage areas are typically the best maintained of all inventory locations. Make sure super expensive items like saffron and truffle oil is in a place where theft is completely impossible. Keep the storage rooms dry and cool and watch expiration dates. Try to reorder dry items using a par stock system.
Determining par levels may be difficult for event caterers but most operations should find two or three par levels sufficient. For busy periods, build the stock to the high par level.
Drop the par when business is slow. Maintain the status quo at other times.
Courtesy: hotelnewsresource.com
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