HOTELS Editor In Chief Jeff Weinstein held multiple interviews during the NYU investment conference earlier this week. Here is a roundup of what he learned inside 36 hours of meetings:
Driftwood Hospitality Management, North Palm Beach, Florida
Its recently announced deal with resource-rich Pacrim Hospitality Services, Halifax, Nova Scotia, Canada, takes Driftwood north of the U.S. border for the first time.
Brian Quinn, Driftwood’s executive vice president of development, said the JV will build five limited- and select-service hotels, starting with three in Atlantic Canada locations representing US$100 million in real estate. Longer term, the JV will target 100- to 300-room full-service and extended-stay properties across Canada, the United States and select foreign markets.
Starwood Hotels & Resorts Worldwide, Stamford, Connecticut
Starwood Hotels & Resorts Worldwide aims to have 100 hotels under operation and development in Latin America by the end of 2013. Currently, Starwood has 73 hotels in 13 countries and a development pipeline of 20 hotels with 3,300 new rooms underway.
Vice President, Acquisition and Development for Latin America Ricardo Suarez, said top line RevPAR growth in Latin America is the best in Starwood’s system.
Saurez said there is still a great deal of opportunity in Mexico and Costa Rica, under-hoteled markets such as Brazil, top performers like Chile and Peru, and foreign investment favorites such as Colombia and Panama. “Mexico is in vogue with more capital available and REITs launching. We like secondary and business markets for our mid-market brands like Aloft,” he said.
A Sheraton hotel has opened in Salvador and Saurez said three more potential deals are being analyzed right now. He added that business hotels are coming to Costa Rica and that Starwood may franchise in Honduras, Salvador and Nicaragua.
As for Brazil, Saurez said Starwood is still working on “cracking the code,” as land prices are an issue, there is no financing and conversions are difficult due to life-safety issues. Starwood has eight hotels open and one under development in Brazil with a confident Saurez adding that number could double with a strong mid-market opportunity developing.
B Hotels & Resorts, Weston, Florida
President and CEO Ayelet Weinstein said in addition to its 394-room hotel coming near Disney World later this year in a licensing deal with Crescent Hospitality, the company is working on a deal for a b2 hotel in New York City, as well as a B Hotel in Chicago.
Weinstein said its first b2 in downtown Miami has opened strong and attributes the company’s ability to think like an owner and control construction costs as one of the reasons why, as well as the successful launch of a Jeffrey Chodorow F&B concept with urban comfort food and craft beers.
At its B Ocean in Fort Lauderdale, Florida, the first B Indulge spa has opened, complete with suites and a customizable program. Weinstein said it is a profit center for the hotel, attributing reasonable 60-minute, US$100 rates as one of the reasons why.
Red Lion Hotels, Spokane, Washington
Executive Vice President Rob Burgett said the company’s strategy has moved to growth as opposed to disposition. He said the company is financially stable and will reinvest US$20 million in its hotels over the next two years, primarily on bedding, TVs and connectivity. Red Lion has one asset on the market for sale but is more focused on adding franchises to the system.
Red Lion’s new Leo boutique brand has executed one deal in Las Vegas and Burgett said there are 10 deals in serious discussions. The second deal is coming soon in Boise, Idaho, and a third should be coming within a month.
Burgett said reservation contribution stands at 52%, up 5 points in a year and attributes the success to leveraging the Internet.
The brand is also focused on hyper-local staff training, complete with hyper-local microsites for each property.
Hilton Worldwide’s Homewood Suites and Home2 Suites
The extended-stay brands of Hilton Worldwide, McLean, Virginia, are having a record year from approvals, according to Bill Duncan, global head of brand management for Homewood Suites by Hilton and Home2 Suites by Hilton.
While the government sequestration is having an impact on business, Duncan said the brands are experiencing occupancy and rate growth.
He said Homewood’s Gen 9 prototype has shaved about 6% off construction costs and that its Take Flight brand refresh is progressing. A major lobby renovation program should be completed by 2018.
The fledgling Home2 Suites will next open by the Philadelphia convention center and the first Latin America-based hotel in Mexico is coming soon. Latin America is a target for both brands, according to Duncan, especially in Spanish speaking countries where Hilton can provide better support.
The hot ticket, said Duncan, is the dual brand concept, that might include a Hampton branded property with either a Home2 or Homewood hotel. He said 20 dual-branded hotels are in the pipeline.
LodgeNet, Santa Monica, California
New President of Hospitality Tom Storey is working hard to move the legacy entertainment solution provider from a supplier of products like video-on-demand to a consolidator of products and an enabler for guests who travel with their own technology. He expects to develop a more clear definition of the future for LodgeNet within 18 months.
Storey said LodgeNet is working hard to create broader industry standards for entertainment systems, and the former hotel executive is using his extensive hotel contacts to create a forum to address the fragmentation in suppliers, as well as find out “what is broken and how we fix it.”
LodgeNet is also fielding research with brands on guest expectations and will talk about initial results at HITEC later this month in Minneapolis.