• The 2009 Lodging Conference • Lessons learned from the past that should be remembered for future planning
ness, we’ve had a great upturn,” said Tom Corcoran, Chairman of FelCor Lodging Trust.
T
Here are 11 key topics that were top-of-mind for panelists:
Rate
Corcoran said rate - namely, the inability of owners to maintain rate integrity - is the single largest issue for the industry.
The Luxury Core
The return of its core base of corporate travelers is critically im-
portant to the luxury segment, said Tom Storey, President of Fair- mont Hotels & Resorts. Nowhere is that more true than in North America. Elsewhere, a lack of supply in some emerging markets has presented opportunities for international development.
Midscale Goes Global
The midscale segments provide equally viable, if not more vi-
able, vehicles for international development, said David Kong, President and CEO of Best Western International. This is particu- larly true in emerging countries like China and India, where there’s not enough supply to meet the needs of burgeoning middle classes.
Flood of Foreclosures (Or a Lack Thereof)
Despite earlier prognostications that suggested a wave of fore-
closed assets would fl ood the market, signifi cant transactions have been few and far between. Corcoran attributed this, in part, to re- lationship banking. Some 55% of owners are lending from some- one they know and trust.
Franchisee Incentives
How aggressive will certain franchisors be to get their pre- and mid-downturn prototypes off the ground? “You’re seeing it already. There are major brands that are offering discounts (to potential franchisees),” said Roger Bloss, President and CEO of Vantage Hospitality Group. He warned that offering lower fees to entice owners would have the same effect lowering rates does on hotels: It might create interest in the short-run, but it will be much harder to raise those fees in the long-term.
Dirty Words
Once a desirable qualifi er of high-end hospitality, the terms “luxury” and “resort” have adopted a far more negative
WWW.MIDWESTMEETINGS.COM
he 2009 Lodging Conference began with an optimistic eye toward the future and, more specifi cally, recovery. “Following every downturn ever in the hotel busi-
connotation. To attract government business, Corcoran said some savvy operators have simply removed the words from their government contracts. A short-term fi x, the strategy neglects a longer-term problem: the viability of luxury itself. The segment has been hit with a double whammy, he said. The rich aren’t as rich as they used to be, and businesses are far more reserved when it comes to corporate travel.
Brand Standards
Brands shouldn’t be so quick to lower their standards to accom-
modate the needs of cash-strapped owners, Kong said. “If some- one is paying to stay at a hotel, they have certain expectations,” he said. Shortchanging those expectations can destroy what the brand stands for.
The Bastardization of Boutique
The proliferation of branded boutique hotels has increased in
recent years, leaving some to question the effects on those existing stand-alone properties in the segment. “Do you think the word ‘boutique’ has been bastardized? The answer is yes,” Corcoran said. “I don’t think the consumer knows what it means anymore. I don’t think we know what it means anymore.”
The Meaning of Greening
“We have not yet seen customers that are willing to pay more
for green,” Storey said. But perhaps the most tangible benefi t is in the bottom line - and the operational cost-savings for owners.
The Talent Pool
With layoffs come more talented candidates in the job pool.
Mark Harmon, Principal & CEO of Auberge Resorts said they have tried to take advantage of that fact by hiring the best and brightest of those available. But that’s not his only focus. “You re- ally have to take care of the people that you have,” he warned. “We can’t afford to lose them.”
Hitting the Streets
Corcoran advised going on sales calls to drive revenue. By get- ting out there and beating the streets, you have a better chance to drive business, he said.
patrick@hotelnewsnow.com.
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