The Women's Movement

Edited and written by Cherie Hensdill, -- HOTELS Magazine, 8/1/1999

WORLDWIDE By the year 2000, women business travelers

are expected to represent nearly 50% of all business

travelers in the United States. Today, that figure has

been measured at 40%, accounting for some 17.2 million

women. And industry studies suggest that sometime during

the next 10 years, women business travelers will outnumber

men.

And yet, this fast-growing segment of the industry has

been largely ignored by most hoteliers, many of who say

female guests don't want to be treated any differently

than men. But generally speaking, the needs of women

are different. And with the competition for customers

heating up, at least a few hoteliers have decided that

they are not going to take any chances on losing their

share of this burgeoning market.

Women En Masse

The industry's women's movement

was heralded this year by two large-scale studies on

the subject, one conducted by the Businesswomen's Research

Institute (BRI) and the other by Wyndham Hotels & Resorts

in conjunction with New York University (NYU). The

results from both surveys were released in June. And

although each study focuses on slightly different aspects

of the female travel experience, together they offer

a more complete picture of women business travelers

as a whole.

BRI is the research arm of MacDonald Communications

Corp., New York, which publishes Working Woman and Working

Mother magazines. The majority of the 500 women who responded

to the BRI study are affluent and hold executive positions.

As a result, they travel often and took an average of

13 trips of 100 miles or more during the past year. And

an average of eight of those trips was for business.

While traveling on business, the respondents stayed

an average of 19 nights at hotels. Sixty-four percent

say they select their own, and the brand they chose most

often: Marriott, by 35%. Likewise, Marriott was selected

as the brand these women believe best caters to the needs

of women travelers.

The top five brands, after Marriott, that respondents

believe best cater to the needs of women travelers: Ritz-Carlton,

Hilton, Hyatt Regency, Hyatt and Westin. However, the

degree to which these brands actually cater to women

might be more perception than reality.

None of brands listed actually

offer special products or services designed for women.

Ritz-Carlton hotels try to put women in rooms close

to elevators for added safety and typically offer extra

amenities in the room that are more female specific,

but the hotels offer "nothing

out of the ordinary," says public relations spokesperson

Stephanie Platt.

Kendra Walker, communications manager

at Hilton Hotels Corp., says company studies have found

that women don't want to be treated any differently

than men. And any security features the hotels have

added to help women feel safe, such as well-lit parking

lots and hallways, are equally enjoyed by men. Susan

Hodapp, brand director for Marriott hotels, resorts

and suites, says the same holds true for Marriott International.

The company focuses on serving the business traveler

first and foremost, regardless of gender, and then

offers such services as healthy and flexible F&B

items, gender-specific products for sale in its retail

shops, and added security features, all of which might

appeal more to women.

In fact, most hotel companies seem to focus predominantly

on the security concerns of women travelers, if they

focus on the group at all. However, in the BRI study,

respondents ranked safety as the third most important

reason for selecting a hotel, with convenience coming

in first and luxuries second. And the number one item

under convenience was location (see chart).

Of the 403 women who responded

to the survey conducted by Dallas-based Wyndham Hotels & Resorts

and NYU, 91% listed responsive service as the most

important reason for selecting a hotel. Location came

in second with affordable rates ranking third and brand

recognition fourth. Surprisingly, security did not

even make the top 10.

"This study makes it clear that some ideas taken

as common knowledge in the industry do not hold true," says

Dr. Lalia Rach, associate dean and director of NYU's

Center for Hospitality, Tourism and Travel Administration.

The belief that women are most concerned about safety

when traveling seems to be one of these.

Meeting The Need

But there are a few hotel companies

making use of such findings to specifically attract

women business travelers, lead mostly by the work of

individual hotels. For instance, the Meliá Barcelona in Spain announced in May

the adaptation of 18 rooms for women travelers, featuring

a vast variety of gender-specific amenities and women's

magazines. Sol Meliá is considering adapting the

program for the entire chain. And several Sheraton Moriah

Israel hotels have packaged extra services and amenities

into its Global Lady program. But the leader by far in

targeting women travelers is Wyndham.

The company started targeting its products and services

to women in the early 1990s. And in 1995, in an effort

to better communicate with their female guests, Wyndham

started the Women On Their Way Program. As a result of

these efforts, internal studies conducted in 1997 showed

that 29% of Wyndham's customers are women, 50% more than

its competitors, says Cary Jehl Broussard, director of

Wyndham's Women On Their Way program.

The program's first initiative was to add branded bath

amenities to the rooms, at the demand of female guests.

Today, the program has been the catalyst for a bevy of

brandwide initiatives. The company spent US$35,000 on

a Web site designed specifically for women travelers.

The Toiletries You Forgot program offers such amenities

as Q-tips and fingernail polish remover. The recently

launched Be The Brand training program helps raise employee

awareness about the needs of women travelers. Wyndham

has even established a Women's Advisory Board that meets

twice a year.

Further, The Women Á La

Carte roomservice program was launched in February,

featuring healthy roomservice items and a pre-delivery

telephone call to the room to forewarn guests that

roomservice is on its way. And the Networking Table,

which is currently being tested at the Wyndham Chicago,

gives women traveling alone the opportunity to dine

with other women travelers. Even the creation of Broussard's

position demonstrates Wyndham's dedication to women

travelers. And Wyndham is testing several other features

designed for women, like on-property manicure service,

and Broussard plans to announce additional programs

in the near future.

"The results of the NYU survey will

be the foundation for what we do next," says Broussard. "The

time is nigh. And everybody who has their eyes open will

realize this is one market that cannot be ignored."

NH

Hoteles Tackles Europe And Beyond

MADRID With the first-quarter sale of its winery for

US$125 million and the June purchase of a 20% stake in

Italy's Compagnia Italiana dei Jolly Hotels SpA for US$31.9

million, NH Hoteles S.A. has demonstrated its desire

and determination to grow its formidable hotel reputation

beyond Spain's borders. And with a strong hold in one

of Europe's fastest-growing hotel markets, NH should

be able to generate the revenues, or at least attract

the interest, it needs to display its name across the

globe.

Earnings Potential

NH currently has 78 hotels with 9,254 rooms in 35 Spanish

cities and plans to develop another 20 properties totaling

800 rooms by century's end. The company spent US$140.2

million in capital expenditures during the past four

years to bring its portfolio to a consistent level of

quality, says Director of Corporate Development Stephen

J. Matlin, which resulted in 1998 systemwide occupancies

of 71% with ADRs of US$77 and RevPARs of US$55.

This year, Matlin is looking for NH to maintain current

occupancy levels but expects to grow ADRs by US$8 and

RevPARs by US$5. Price increases combined with expansion

plans leads Matlin to anticipate a 33% increase in revenues

for 1999.

With a market capitalization of US$1.1 billion, company

profits already have doubled for the first five months

of year, versus the same time last year. And '99 revenue

projections amount to US$275 million with a net income,

before the sale of the winery, of US$45 million, totaling

a 55% increase over '98 figures. But regardless of how

good NH looks on paper, its future resides in its plans

for growth.

Full Steam Ahead

Earlier this year, NH sold its winery and changed its

name from Corporacion Financiera Reunida S.A. (CONFIR)

to NH Hoteles in an effort to focus the company's growth

strategies solely on the hotel industry, Matlin says.

Other activities so far this year include the purchase

in May of a 5% interest in Warner Bros. International's

US$420-million Madrid Movie World Theme Park, scheduled

to open in 2002, and the April acquisition of the 4-star-plus,

500-room Hotel Princesa Sofia Inter-Continental in Barcelona

for US$85 million. For the rest of this year and into

the next, the company's plans get even more aggressive.

By 2001, Matlin says, NH plans to invest US$30 million

in organic growth of its 3-/4-star brand within Spain,

targeting areas where the brand does not yet have representation.

And the company will invest another US$50 million to

launch a 2-/3-star product called Hoteles Express, with

20 hotels and 2,000 rooms currently in development.

Within Europe, NH will spend an

undetermined amount on mergers and acquisitions. Matlin

has his sites set on the UK, but he's also considering

regional brands in other countries. Buying shares of

Jolly proved to be just one step in this direction. "If the relationship

with Jolly goes well," Matlin says, "it might

lead to a majority interest in the business. First we

want to see how we can work together."

Jolly seems to be a good fit for NH. The Italian chain

consists of 35 hotels, 30 of which are in Italy. And

like NH, Jolly is the leading business brand in its market.

Matlin sees great cross-marketing potential between the

companies. And it doesn't hurt that NH's Chairman and

CEO Gabriele Burgio is himself Italian.

Chris Rouse, partner at Knight

Frank ACCESS, London, says NH might have better success

in continental Europe than in the UK, where there are

more opportunities at more reasonable prices. "What NH has got to do is

decide if it's going to become part of a bigger brand

or if it's going on the acquisition trail, which would

be quite expensive at the moment," Rouse says. NH's "superb" distribution

and representation in Spain make it an attractive company

for a global partnership, he says. "Something NH

should consider closely."

Going Abroad

As for global growth, NH will spend

US$50 million on expansion into the Mercosur region

of Latin America. Matlin says the objective is to operate

1,500 rooms and cover the principal capital cities

of Buenos Aires, Argentina; Montevideo, Uruguay; Santiago,

Chile; and possibly Asunción,

Paraguay; and Sao Paulo, Brazil. NH already has acquired

properties or secured sites in seven locations.

"When we close on these properties, it will make

us the largest operator in the region," Matlin says. "We

are trying to replicate our chain growth as we've done

in Spain," trying to deliver high-quality hotels

that are consistent and more affordable than the competition.

All told, Matlin expects NH's expansion

plans to more than triple the size of the company.

Matlin's goals for NH during the next five years: to

achieve US$1 billion in revenues and US$5 billion in

market capitalization. "ADRs

in Madrid are 40% of what you get in London. So with

natural expansion and price increases, this is not an

unreasonable expectation."

UN Commission Addresses Sustainable Development

NEW YORK Strategies designed to maximize the benefits

of tourism without compromising local environments were

discussed in April at the seventh annual United Nations

Commission on Sustainable Development (UNCSD).

The Commission incorporated three

days of "Multi-Stakeholder

Dialogue Sessions" to encourage suggestions on how

to deal with ecosystem protection, waste recycling, energy

efficiency, and consumer awareness of environmental and

cultural issues. The International Hotel & Restaurant

Association (IH&RA) and the World Travel & Tourism

Council (WTTC) led an industry delegation of more than

20 hotel and tourism professionals to press for a serious

public, private and voluntary sector partnership for

the 21st century.

An Industry Voice

Ken Hine, the director general

and CEO of the IH&RA,

urged governments to commit manpower and financial resources

to consumer education, and he encouraged alliances with

non-governmental organizations, trade associations, and

local authorities. Hine and other industry representatives

advocated voluntary initiatives by the travel and tourism

industry, and Hine stressed the importance of environmental

education in schools.

"While travelers seek the best settings, they understand

too little about the fragility of the areas they visit," he

said. "We, as a community of involved interests,

have concentrated too long on selling the product without

explaining the need for respect or preservation."

Issues And Solutions

Key areas of discussion during the meeting included

the ecological vulnerability of coastal zones, the illegal

dumping of waste by cruise ships, and the chemicals employed

to maintain the environment that actually threaten wildlife

and human life. These issues were tied into the debate

between environmental esthetics and socio-economic growth.

Recommendations were made to establish regulations backed

by widespread education, and it was suggested that any

sustainable tourism efforts include ongoing dialogues

with local stakeholders.

The most well-received of the few concrete suggestions

was one to screen in-flight videos to inform and sensitize

tourists to the environmental issues affecting travel

destinations.

Contributed by Griffin Miller.

Hugh Andrews Revives Puerto Rico

SAN JUAN He's often referred to

as the gringo who saved Puerto Rico's hotel industry.

And if his name doesn't sound familiar, the names of

the world-class hotels he has masterminded definitely

will: The Condado Plaza Hotel & Casino,

El San Juan Hotel & Casino, El Conquistador Resort,

and El Convento.

Hugh Andrews literally rescued each one of these properties

from the brink of destruction. And in so doing, he has

helped establish the infrastructure of not only Puerto

Rico's tourism industry but that of the island itself.

Visionary Tactics

Born a New Yorker, Andrews came to Puerto Rico with

Hyatt Corp. in 1976 at age 35. He was sent to the island

to reopen and manage the unprofitable Condado Holiday

Inn. Hyatt had promised Andrews equity in the hotel if

he could turn it into a viable operation. Andrews saw

the possibilities, for the both the hotel and his career,

and accepted the challenge.

Originally designed to attract

tourists, the Condado hotel had been losing money nine

months of the year when Andrews arrived. By turning

the property into a product for business travelers,

an untapped market, Andrews was able to transform the

ailing hotel into a highly successful operation. For

more than 10 years, Andrews operated what is today

known as the Condado Plaza Hotel & Casino

at more than 90% occupancy. And at the same time, he

helped turn San Juan's Condado area into one of the city's

tonier neighborhoods. This is the level of success Andrews

delivers on almost every project he undertakes.

Spreading The Wealth

At El San Juan Hotel & Casino,

which Andrews purchased at auction in 1986 for a mere

US$7 million to cover back taxes, he invested another

US$50 million and developed the hotel into an upscale

resort and casino. As a result of his visionary conceptualization,

the real estate doubled in value in just two years.

And today El San Juan reigns as the queen of the Caribbean,

the place to see and be seen.

But the project Andrews is most

proud of and the one that stands as a true testament

to his abilities, is El Conquistador in Fajardo, on

the far eastern side of Puerto Rico. The property had

been abandoned for 10 years when Andrews fell in love

with it. He purchased the hotel and surrounding land

for US$24 million in 1986, and then spent seven years

and another US$225 million turning it into the largest

incentive resort in the Caribbean. Today, El Conquistador

commands average room rates well over US$200 with annual

occupancies of 90%. "It's

the only mega-resort to be built that made money from

the first day," Andrews says.

El Convento, Andrews' boutique hotel in Old San Juan,

boasts a similar rags-to-riches story, today maintaining

occupancies in the low 90s and catering to some of the

world's most famous individuals. And it is successes

such as these, along with Andrews tireless support of

Puerto Rico's culture and natural resources, that has

spurred the development of hundreds of millions of dollars

worth of new product on the island, not to mention a

new 1.5-million-sq.-ft (140,000-sq.-m) convention center

that begins construction in 2000. And Andrews himself

has even more plans for Puerto Rico.

In 1996, he started his own hotel

company, Hospitality InternationalEnterprises. And

for the past seven years, Andrews has been involved

in the development of the upscale Martineau Bay Resort,

located off the coast of Puerto Rico on the island

of Vieques. The property is scheduled to open in January

and will be managed by Rosewood Hotels & Resorts.

Andrews also is developing an all-inclusive product for

western Puerto Rico and has plans to launch a budget

brand in San Juan.

After more than 20 years on the island, Andrews definitely

considers Puerto Rico home. Even his friends have come

to think of him as a native. And the growth and prosperity

he's brought to the island undoubtedly will be his lasting

legacy.

Hoteliers

• Bass Hotels & Resorts, Atlanta,

  appoints Gwendolyn D. Skillern vice president (VP)

  and corporate controller... US Franchise Systems,

  Atlanta, appoints Charlie Pereira II director of

  international operations and development...

• Resort Condominiums International LLC

  (RCI), Indianapolis, appoints John E. Small senior

  VP and COO...

• Starwood Hotels & Resorts

  Worldwide, White Plains, New York, names Bob Moore

  senior VP of sales and marketing, North America Division...

• Tishman Realty Corp., New York, names

  Dennis E. Mahoney executive VP...

• Suburban Lodges of

  America Inc., Atlanta, appoints Gregory Plank president...

• Fairmont Hotel Management LP, San Francisco,

  appoints Martin J. Lawrence senior VP of operations...

• Michael Gehrisch appointed executive

  VP of the American Hotel & Motel

  Association (AH&MA), Washington, D.C...

• Jorge Gonzales

  named general manager (GM) of the 325-room Mandarin

  Oriental Brickell Key, Miami...

• Hans R. Hauri appointed GM of

  the 516-room Hotel Istana Kuala Lumpur, Malaysia,

  a Meritus Hotel...

• David Feder named senior VP

  and managing director of the 730-room Arizona Biltmore

  Resort & Spa,

  Phoenix...

• Andreas Obrist named GM of the 910-room

  Forum Hotel London.

Amenities

NEW HORIZONS.In an effort to target the fastest growing

segment in vacation ownership, Marriott Vacation Club

International (MCVI) announced in May plans to launch

a mid-tier vacation ownership brand called Horizons by

Marriott Vacation Club.

The first Horizons resort will be built in Central Florida,

with completion scheduled for early 2001. Ownerships

will be deeded, and initial prices will range from US$9,000

to $13,000 per week.

"The moderate-tier audience represents 55% of the

vacation ownership market," says Edward Kinney,

senior director of brand advertising and communications. "That's

double the market we're currently operating in."

MCVI launched its premier vacation ownership product

in 1984, targeting an upscale market with weekly rates

that average between US$17,500 to US$49,000. The company

currently offers 41 such resorts in 21 destinations.

MCVI hopes to exceed this success with its Horizons brand.

The first phase of construction on the Florida property

will include 128 2-bedroom units, and the resort will

be expanded to as many as 900 units based on sales. MCVI

plans to develop the brand in the Southeastern and Southwestern

United States. Kinney says MCVI will announce an upscale

Ritz-Carlton Club brand sometime this summer.

MINI WESTINS. With the mid-August

debut of the 205-room Westin Portland in Oregon, Starwood

Hotels & Resorts

Worldwide of White Plains, New York, launches its Westin

200 concept, the first of a new scaled-down version of

its Westin brand.

The concept behind the new brand

calls for hotels about half the size of typical Westins,

says Ray Sylvester, Starwood's area managing director

of new projects. Westin 200 hotels will feature 10,000

sq. ft. (929 sq. m) of space, an average of 200 rooms,

limited meetings space and third-party F&B operations.

The size of the rooms, however, will remain unchanged.

Construction costs for the new brand are expected to

fall about 20% less per room than a standard Westin.

However, Sylvester anticipates a higher ADR of US$155,

versus the US$135 rate garnered at a full-size property.

He expects the higher rate to make up for the fewer number

of rooms and the fact that the new hotels won't be able

to support large volumes of group business.

Westin 200 is designed for development

in "condensed

urban areas and high-demand bedroom communities where

land is precious," Sylvester says. Other areas under

consideration for future development include Northern

California, La Jolla and San Diego.

INDUSTRY INSPIRATIONS. In one of the more innovative

marketing moves to hit the industry of late, global real

estate giant Jones Lang LaSalle Hotels, headquartered

in Brisbane, Australia, released in May a compilation

music CD of hoteliers' most preferred and inspirational

songs.

Titled "Moving To A Brand New Beat," each

of the CD's 16 tracks was selected as a personal favorite

by one of 16 hoteliers worldwide. For instance, Isadore

Sharp, chairman and CEO of Four Seasons Hotels & Resorts,

says he's encouraged to never give up on his dreams when

he hears "I'm Always Chasing Rainbows," by

Judy Garland. And Kwek Leng Beng, chairman of CDL Hotels

International,says his spirits have been lifted throughout

the Asia crisis by Dinah Washington's "What A Difference

A Day Makes." The song reminds him that "a

new day brings with it new opportunities."

The CD was created to commemorate the merger between

Jones Lang Wotton's hotel divisions, which incorporates

JLW TransAct in Asia Pacific, and LaSalle Partners of

the United States. It was distributed to 3,000 industry

professionals.