Room At The Top
Two industry leaders look to reinvent the luxury segment once again.
By Karyn Strauss, Associate Editor -- HOTELS Magazine, 7/1/2005
- Room At The Top
- Dive-In Viewing
- World Watch
- New Law Helps, But Seasonal Labor Issue Looms
- 5 Minutes With: Niki Leondakis, COO Kimpton Hotels & Restaurants
- Leveraging Hollywood Hoopla
- Park Hyatt Selling High-End Art
- Choice Ponders Another New Brand
- Gostelow Report
- Hoteliers
Room At The Top
Two industry leaders look to reinvent the luxury segment
once again.
ATLANTA/HONG KONG Horst
Schulze and Robert Burns are two icons of the hotel industry
who have proven that success in this business is directly
linked to a passion for it as well. That passion today
is represented by the fact that despite entering the twilight
of their careers, both gentlemen have launched new hotel
companies with the aim of once again bringing something
new to the luxury market.
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Schulze has come back to the drawing board after his days as president and COO of Ritz-Carlton Hotel Co. with his West Paces Hotel Group, Atlanta, which aims to build two new brands for discerning travelers with different needs. For Burns, founder of luxury brand Regent International in Hong Kong, Asia once again is the backdrop he has chosen for his upcoming collection of smaller, deluxe Robert Burns Hotels.
Interestingly, both men used the analogy of a painting to describe what they are doing.
For Schulze, his reason for forming the new company is that he “wanted to paint another painting.” He adds, “I knew I wouldn’t do many more, so I thought this must be the masterpiece. It must be the very finest for all concerned—the customer, the employee, the investors and the community in which you do business.”
Burns compares his inspiration to that of an artist working on a new painting. “When you are working on a painting, you hope your vision comes out well. That it all comes together. I’ve been in this business my whole life, and when it all comes together—from a full lobby to a full restaurant—that’s what inspires me.”
While both men are busy getting ready to announce their first projects, they took some time out of their hectic schedules to talk to HOTELS about their plans and share some thoughts on the industry today.
Customer Of Tomorrow
Schulze assembled a team of former Ritz-Carlton executives
to form West Paces Hotel Group. While currently the company
is the third-party manager for a handful of upscale properties, the
core function of the group will be the launch of two new brands. The
first will be positioned “somewhere
between a Ritz-Carlton and a Westin,” Schulze explains, “not
as fancy as a Four Seasons—less marble and silk—but with
all the
service reliability of a 5-star brand.” This concept will target
individuals and meeting planners who hold several meetings
a year, “most
at a Hyatt, a couple in a Ritz-Carlton for reliability,” he says,
who are looking for consistency in service and amenities without paying
much more than they would for a typical 4-star. The second
focus will be on the luxury traveler looking for the
experience of a deluxe independent hotel but with the
reliability and consistency of a brand. Growth goals are loose at the
moment, as Schulze will not compromise on locations. These hotels all
will be in major cities and select resort destinations worldwide. A
mixed-use component, particularly condominiums, will be a strong secondary
element to offset costs.
The guiding strategy for both concepts is complete customer focus. And Schulze spent considerable time determining the wants and needs of high-end travelers. What he found is a myriad wish list of seemingly contradictory desires. “They want a lot of activity but they also want privacy; tranquility yet excitement—it’s all a paradox,” he explains. “They want us to be confident but not arrogant. They want the hotel to be distinctive but also familiar; timeless not trendy. They want to feel taken care of. Luxury to them is not having to wait. It is total reliability. Value to them is consistency and a sense of well-being. That is the customer of tomorrow.”
As he sets out to create two new brands, service execution at the highest level is what Schulze believes will differentiate his product. As a result, he’s not too concerned about competition from some of the big brands. “There are so many brands today that are inconsistent. So it’s not really a brand experience at all, it is just a name. Having a brand should be something you can rely on. You know what it is no matter where it is. A brand should be a promise that is kept at all times. And I don’t know where that exists too often today,” he says.
Another criticism Schulze has of the industry today is its “sheep” mentality. Instead of innovating, he sees the major brands simply copying each other. It’s a game of catch-up rather than create. The example he uses is the latest bed craze. “Imagine an industry that has existed for thousands of years and suddenly the marketing for the brand is the bed. What a mark of creativity that is,” he says sarcastically. “Instead of innovating they are too busy copying each other. This is supposed to be an industry of creativity and suddenly we discovered that people want good beds?” Schulze has the same problem with the brands’ new focus on what he calls “funky” design. “There is a market segment for that, but it is copied by those who have no new ideas. What the customer means by boutique hotel is a customized, personal approach. The industry sees it as a small hotel with fewer amenities.”
Modern Grandeur
While Schulze sees an overall lack of innovation (with
notable exceptions, including, he says, hotels such as
The Crillon in Paris or Las Ventanas al Paraiso in
Los Cabos), for Burns, the hotel boom in Asia signals
a new opportunity to innovate. And with more and more markets opening
up, particularly in China, Burns believes there is room for a new
type of luxury hotel. As a result, he has teamed up with his old partners
from his Regent days to create a new collection of deluxe properties.
Burns is interested in doing hotels that are smaller than the grand
hotels across Asia, somewhere in the 250-room range, with a contemporary
ambience. “Most hotels that go up in Asia
are pretty traditional, grand old hotels. These will
be much more modern. We’ll keep them relatively small, with
large guestrooms and wonderful bathrooms,” Burns explains.
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While today’s 5-star hotels offer elite guests extra pampering on club floors, Burns’ idea is to create the overall feeling of a club floor for the whole property. “It will be more intimate—everyone is in the club,” he says. Burns likens these hotels to his “pet project,” the much smaller, 21-room Villa Feltrinelli he created on Lake Garda in Gargnano, Italy. With this intimate, castle-like retreat Burns wanted to raise the bar on luxury. Now he intends to expand on those ideals. “Everything you put in your hand will be luxurious,” he says. “You can’t just get away with charm anymore. You have to have the best—the best plumbing, the best furniture, the best sheets and superior service. That is what spells luxury to people today.”
Each hotel will have its own name, connected only by the subtle tagline, “A Robert Burns Hotel.” Burns intends to keep his new collection in Asia, targeting predominantly China, Vietnam and Thailand, although he says India and maybe even Hawaii are not out of the question. He sees it growing to around seven to 10 properties and expects to announce his first project before the end of the year.
Does he think growing a collection of luxury hotels will be easier now than when he did it with Regent? Definitely: “It’s much easier now that the traveling public has become much savvier. Now with a little bit of reputation, some good press and the industry booming, it’s much easier,” Burns says. As for delivering superior service, he believes that will be easier, too. “I think hotelkeeping is getting better and better. People coming out of very good [hotel] schools are much more conscious of service today. The industry has improved a lot since I started in it.”
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This summer, family-friendly Holiday Inn SunSpree Resorts introduces “Dive-Inn Movies” inviting guests into their poolside movie theaters, complete with a 9 x 12-ft. (2.7 x 3.6-m) screen. While movies vary by property, Holiday Inn is looking to leverage its new partnership with Nickelodeon, the children’s cable television network, to show movies based on Nickelodeon TV shows, such as last year’s “The SpongeBob SquarePants Movie.” These films are free to hotel guests and another way Holiday Inn aims to position itself as the family hotel of choice. This initiative complements the KidSpree Activity Programs at all 18 SunSpree Resorts in the United States, Canada, Mexico and the Caribbean.
World
Watch
NORTH AMERICA
With DNA Of W, Starwood Introduces “Project
XYZ”
WHITE PLAINS, NEW YORK In early June Starwood Hotels & Resorts
unveiled plans for “Project XYZ,” a mid-scale
version of its contemporary, style-oriented W hotels. Like
W, XYZ also aims to target that consumer seeking a lifestyle
hotel experience, but at a more economical price point. “Democratizing
fashion” is the phrase that keeps coming up when the
company talks about the concept, which will feature urban,
loft-like guestrooms, landscaped outdoor space for socializing
and an energetic lounge scene, all with an average daily
rate between US$100 and US$125.
Starwood says developer interest is very
strong, adding that it received letters of interest “from
more than a dozen developers” to build more than 100
new “XYZ” hotels
even before the companyformally announced the brand. Expect
a fast growth rate—100
hotels are planned within a couple of years, according to
Chuck Tomb,
Starwood’s senior vice president, development, with
the first to open in mid-2006. Tomb says development will
begin in big markets but adds that the concept could be a
good fit in suburban and tertiary markets, as well. Tampa
was among five cities the company identified as candidates
for the brand debut. Starwood is also planning some international
development, Tomb adds.
All will be new builds with development costs expected at approximately US$8,500 to US$9,500 per key. Target size is 90- to 180-guestrooms, all of which will include the signature W bed, oversized windows, built-in storage, and large bathrooms with walk-in showers and amenities by Starwood subsidiary Bliss Spa. Lobbies will feature a destination lounge; the “Pit Stop,” a comfortable lounging area; 24-hour kitchen area with grab-and-go food choices; and fitness center with swimming pool. The backyard will serve as a hangout to drink coffee or cocktails, and have barbecue lunch. The entire property will be wireless enabled.
Starwood cites its competitors as limited-service leaders Courtyard by Marriott and Hilton Garden Inn. However, with Hotel Indigo and Cambria Suites introduced into the market last year, clearly there is a new breed of boutique-minded, mid-market players for “XYZ” to contend with.
La Quinta Plans Mexico Expansion
DALLAS La Quinta Corp. is expanding into Mexico with the
construction this fall of a La Quinta Inn & Suites
in the city of Juarez, in the state of Chihuahua. Developing
the property is Plaza Triunfo S.A. de C.V., La Quinta’s
first Mexico-based franchisee. The 85-room property will
be in the heart of the city’s business district and
is expected to open next year.
“Expansion of the La Quinta brand into Mexico is extremely opportune at this time,” says Alan Tallis, franchising president and chief development officer. “We believe selective services hotels will be most profitable within the country.”
Additional developments are being considered in other border cities and the industrialized northern states, as well as deeper into Mexico with eventual consideration of resort locations, Tallis says.
La Quinta is looking to build to a critical mass in Mexico to serve a strong emerging middle class, Tallis adds, but at the same time growth will be opportunistic as the company establishes relationships with development partners. “A number of different qualified groups in Mexico hopefully will be in a position of having the ability, experience and capital to move us forward,” he says. “Our expectation in forming relationships is that each (partner) will do multiple locations.”
As for a timeline, “it is extremely long. Things take a long time (in Mexico),” Tallis says.
For the most part, the company plans expansion of the La Quinta Inn & Suites brand, but La Quinta Inns are possible as well, Tallis says.
As a next step, La Quinta is looking even farther south. “We believe the La Quinta experience is a fit for Mexico and into Central and South America,” Tallis says. “We want to make sure the timing is right and that infrastructure is in place. We’re not going to jump into Brazil, Chile or Costa Rica tomorrow. We’ll do it when we can do it right.”
Blackstone Buy = Healthy Wyndham?
NEW YORK The Blackstone Group’s recent
acquisition of Wyndham International Inc. for US$3.24 billion
is a good thing for the formerly troubled hotel operator,
according to R. Mark Woodworth, executive vice president,
PKF Consulting, Atlanta. “Assuming that Blackstone
elects to hold Wyndham for at least three to five years,
this transaction is clearly good news for the Wyndham brand,” he
says. “Wyndham Hotels & Resorts, along with the
Wyndham
Garden brand extension, both fit niches within the domestic
marketplace in which opportunity for growth exists.” Woodworth
thinks Wyndham brands represent viable
competition for Marriott and Hilton brands.
On the other hand, should Blackstone decide to sell Wyndham, as it did with the AmeriSuites brand after buying it as part of an acquisition of Prime Hospitality Corp., “perhaps someone like InterContinental would be a likely buyer,” Woodworth says. “The Wyndham brand would seem to go along well with their Crowne Plaza brand.” Or, if Blackstone decides to hold the brand and management, “there are a number of REITs that would be strong candidates to buy the real estate,” Woodworth says.
The agreement to acquire Wyndham has Blackstone buying all of Wyndham’s outstanding common stock for US$1.15 per share, as well as the assumption of about US$1.8 billion in debt. The deal is expected to close in the fourth quarter.
New
Law Helps, But
Seasonal Labor Issue Looms
UNITED STATES As The Broadmoor
Hotel & Resort in Colorado Springs, Colorado,
gears up for the summer travel season, it is looking at a decent amount of overtime
to make up for several seasonal openings that have not been filled, says Cindy
Clark, human resources director. A check of the resort’s Web site early
last month showed some 50 positions open. But it could be worse.
 The Broadmoor |
Like many other U.S. resorts, The Broadmoor relies on seasonal workers to provide the level of service that guests expect during the busy summer season (PricewaterhouseCoopers forecasts summer occupancy of 71.4% in the U.S., the highest since 2000). A large part of this seasonal work force is made up of foreigners, especially in lower-paying manual labor positions in housekeeping, laundry and grounds maintenance. But because of problems getting visas for such workers, many resorts are short-staffed.
Since 1990, a federal law has limited the number of visas issued annually for seasonal foreign workers to 66,000. That didn’t create problems until recently: Last year, for the first time, there were so many applications that the government had to turn people away before the end of the fiscal year. Meanwhile, resorts seeking visas for summer workers were left out in the cold: most couldn’t apply for the visas before late last year or early this year, as the rules of the U.S. State Department’s H-2B program for seasonal workers require businesses to hire the workers within four months of when visas are awarded.
The Grand Hotel, Mackinac Island, Michigan, got around that by deciding to open two months earlier than usual specifically so it could apply for the foreign worker visas needed to staff the resort (more than 300). “It was a hard decision but necessary,” says John Hulett, managing director. “We would not have received approval for our foreign nationals (if we hadn’t opened early). Even by opening early, that wasn’t a guarantee. We got lucky and got approval.”
The Broadmoor was not so lucky. The resort applied for 250 visas late last year, but all 66,000 already had been given to other businesses. Luckily, the resort managed to get some unused visas from other hotels across the nation. But more meaningful for The Broadmoor and other U.S. resorts is a bill that was recently signed into law. The Save Our Small and Seasonal Businesses Act allows employers that can prove that they have tried to hire U.S. workers to fill open positions to bring in additional foreign workers who have been in good standing with the H-2B program for any one of the last three years. The legislation also reserves half of the annual allotment of H-2B visas for distribution in the second half of the fiscal year.
The Broadmoor is trying to bring in an additional 40 people who have worked at the resort in the past to fill its needs, Clark says, but even with those people, the resort is likely to use overtime hours as well. “Our business model is not to, but if that’s what it takes to serve guests—we’ll do it,” Clark says. In general, hotel managers don’t like to reduce staffing because that could have a negative impact on guest service, says R. Mark Woodworth, executive managing director of Atlanta-based PKF Hospitality Research.
But most foreign workers are more than just bodies filling positions, Hulett says. “The seasonal nature of our business as well as theirs” is what makes them so valuable, he says. “The work they do with us they do in their home countries in our off-season. They’re already experienced—they have all the basic skills; they just have to learn our way of doing things. That’s a huge plus.” Add to that the fact that in places like Mackinac Island, there are not enough locals to fill seasonal openings, and the value of foreign workers becomes clear.
Both Clark and Hulett constantly advertise open positions and actively recruit local workers and college students, and both have had internship programs, but each year they have trouble filling positions. Clark says in the 10 years she’s been working at The Broadmoor, there’s almost never been a time when the resort has had fewer than 100 openings.
Clark stresses that the Save Our Small and Seasonal Businesses Act is only a temporary solution to the foreign worker problem—the law sunsets in September 2006. “This is great for small businesses and hotels, but we need to find a permanent solution,” she says. To that end, the American Hotel & Lodging Association is continuing to work with Congress on the H-2B visa issue. In addition, the International Hotel & Restaurant Association (IH&RA) has a new International Worker Exchange Program designed to tackle the problem of a labor shortage in developed countries like the United States and the overabundance of labor in developing countries. The IH&RA is in discussion with other international organizations to ensure that there is both financial and administrative support for the program in order to overcome obstacles in obtaining visas, training and transportation.
5
Minutes With: Niki Leondakis,
COO Kimpton Hotels & Restaurants
With competition heating
up in the boutique hotel segment as more big chains introduce
lifestyle brands, Niki Leondakis, chief operating officer
for boutique pioneer Kimpton Hotels & Restaurants,
San Francisco, knows that it takes more than good design
to run a successful operation. Leondakis says to stay ahead
of the competition, Kimpton is focusing efforts on its differentiators—both
from a customer standpoint and an employee standpoint. “It’s
not just environmental; it’s experiential,” Leondakis
says.
Fittingly, HOTELS sat down with Leondakis at a recent Women’s Foodservice Forum luncheon where the theme “competitive edge” served as a great starting-off point for a discussion about Kimpton’s focus on diversity, promoting women in the industry and managing the impact of the rapidly growing Kimpton portfolio.
HOTELS: What does “competitive edge” mean
for Kimpton?
Leondakis: A lot of companies today are using design as their
competitive edge, so we’ve really taken a look at Kimpton
to go above and beyond that. And we’re very clear that
what is different about Kimpton is the authenticity of the
experience. It’s not just about design, it’s
an overall experience seen through a variety of programs
and services. It comes alive through things like our [nightly]
wine hours, yoga program and cooking classes. Our idea is
that travelers want to experience something new, something
that enriches their lifestyle. It’s not just about
cool design.
HOTELS: With Kimpton’s collection
of independent properties, do you view the new lifestyle
concepts by the big chains as competitors?
Leondakis: We view everyone as a competitor. But it’s
a good thing in a way as well because it has brought a lot
of attention to the boutique segment from the consumer standpoint,
and it’s helping to build more trust from the consumer
in boutique hotels. But from a lifestyle experience standpoint,
we’ve been doing this for a long time, and we have
a lot of facets to our experience, not just design.
HOTELS: How is Kimpton’s focus
on diversity a differentiator?
Leondakis: It’s all about flexibility and meeting the
needs of our diverse employees and customers. For example,
we allow our employees to use paid holidays to celebrate
whatever holiday they choose in lieu of the [set] holiday.
We also have employee councils to advise us on the needs
of our customers because they’re the ones on the front
lines, and we as a company want to serve their needs better.
We want to give that sense of belonging both for customers
and our employees.
HOTELS: As a top executive in an industry still dominated
by men, how does Kimpton promote the development of women
in the business?
Leondakis: We actively seek out women leaders. This business
has definitely changed since I entered it 25 years ago, but
we still have a ways to go because our industry is challenging
for women to maintain balance. We focus on creative solutions
to make it easier for women to balance their lifestyle needs.
It requires us to be less traditional in our perspective
of how the job gets done.
HOTELS: Any examples?
Leondakis: We had a [pregnant] female general manager who
wanted to be the opening GM of a new hotel, but her delivery
date was the date of the opening. Rather than say that
can’t be done, we got creative and put another GM
in the pre-opening role—creating a special job for
someone who wanted that opportunity—and then had
her come in as the GM post opening. We hadn’t done
that before, and it required creativity and flexibility
on our part, and it was very successful.
What we learned was that with her coming in right after opening, she was energized, excited, ready to go. It was a learning opportunity for us, and she was just thrilled that we created a special arrangement for her. And the loyalty that engendered as a result was fantastic.
HOTELS: Kimpton’s portfolio is
expanding more aggressively than ever before. What are
the biggest challenges?
Leondakis: Developing and finding the
talent. When you expand this quickly,
promoting from within as well as recruiting talent while
keeping the bench strong is a challenge.
The second challenge is to continue and grow our corporate culture as we expand geographically. One of the risks with expanding so rapidly is losing the various things that make us Kimpton in the first place. Our corporate culture is very strong; there’s a direct correlation between how our employees feel about our culture and their work environment and the experience and care our guests receive. The personalization of the employee experience is critical to the personalization of the guest experience. So maintaining and growing that culture as we expand is a big focus for me.
Leveraging
Hollywood Hoopla
Miami Over
the past couple years, South Florida has become a hot
spot for filming and promoting movies, much to the benefit
of the hotel industry. From boosting off-season occupancies
to hosting press junkets and creating movie-related packages,
smart hoteliers are learning how to leverage this influx
of Tinseltown visitors and the numerous revenue opportunities
they bring to the market.
 Doubletree Grand, Miami |
One hotel benefiting significantly from the onset of film crews is Miami’s Doubletree Grand. While the hotel takes advantage of corporate parent Hilton Hotels Corp.’s relationship with a number of Hollywood studios, the hotel shows its own commitment to capturing this business with a dedicated sales manager who only handles the entertainment industry. “We’ve had a dedicated sales aspect for the last couple of years,” says Jeff Spaccio, director of sales and marketing. “We also advertise in location publications to look for leads on what crews are coming here. And we attend industry trade shows.”
The hotel is well positioned to capture long-term crew business (they often stay weeks or months at a time) because it is a mixed-use property with 152 guestrooms and 50 one- and two-bedroom condominiums with full access to all hotel services and amenities. Currently, the production crew for the new film version of the hit television series Miami Vice is occupying about 30 of the condos, yielding about US$500,000 in revenue in a season where it would be common for those units to sit empty. Also helping to attract this business is the hotel’s central location and the fact that it has four restaurants, a grocery store and deli, dry cleaner, hair salon and bank all on the premises.
“We call it good, clean business. It’s not very high maintenance because they are away from the hotel much of the time,” Spaccio says. “The only special thing we offered them [to win the business] is additional housekeeping services. Usually it’s once or twice a week in the condos, and we’re giving them an extra day.”
Despite how easy this business may seem, Spaccio says when negotiating the terms of the deal, it is crucial that a hotel understand and can meet this type of customers’ particular needs. For example, he says, time is a huge issue because they work odd hours. That means, for example, that the hotel must be able to accommodate late-night meals or maid service.
Dealing with the crew, however, is different than handling the talent. The Mandarin Oriental Miami has become the site of choice for press junkets for both local and national clients. “The last two years have been phenomenal. Miami has become such a hot destination. We do 12 to 15 press junkets a year; a lot of them in the summer,” says Alexandra Wensley, director of communications. One to two of those is a big national junket where clients are booking luxury suites for talent and hospitality suites for press. “The revenue that brings in is phenomenal when you realize that on average those suites go for US$1,500 a night,” she says. While local junkets only book rooms for a couple of nights, the big national junkets can last a couple weeks. The hotel will only accommodate this business in the summer months when occupancy is typically low. Another reason to limit them to summer is that these groups also like to conduct interviews throughout the hotel, and Mandarin does not want to disturb its other guests, Wensley adds.
The key to retaining this business, she says, is all about execution. “We attribute our success in this segment to our highly personalized service. The hotel has to be very knowledgeable about how [to orchestrate] it. It’s all about privacy, service, efficiency. By now our staff knows how to work with different entertainment groups to go above and beyond what’s needed to get them coming back.”
While Wensley would not divulge if the hotel was hosting the stars of the Miami Vice movie, filming has created quite a buzz around town. With that, the new Bentley Beach Hotel in South Beach is hoping to capitalize on that buzz with its“Modern Miami Vice” package. “The purpose of the package is we want guests to live the Miami Vice experience,” explains Maria Suarez, assistant sales manager for the deluxe hotel.
The package comes with a high price tag—US$18,000—for a three-day/two-night stay that includes accommodations in the 3,500-sq. ft. (325-sq. m) penthouse with 1,500-sq. ft. (139-sq. m) rooftop terrace; half-day power boat rental with driver; three-day Ferrari 360 Modena Spider rental; US$200 gift certificate at Armani Exchange; VIP service at Prive, a trendy South Beach restaurant; men’s haircut by top stylist; and a DVD set of Miami Vice’s first season.
“We’re trying to position the hotel as trend-setting. We saw this as an opportunity to differentiate ourselves and let customers know we’re the new luxury hotel on South Beach,” adds Adam Leon, area director of sales and marketing. “It invites guests to live like a celebrity. Although the price of the package is high, if guests were to put all aspects of it together individually, the cost would be much higher. So it is a definite value.” For those whose pockets may not be as deep, the hotel offers the same package with accommodations in its two-bedroom, 1,000-sq. ft. (93-sq m) suite for US$10,000.
Park
Hyatt Selling High-End Art
CHICAGO Hyatt
Hotel Corp.’s Park Hyatt brand has
a new twist on hotel retailing: selling high-end limited
edition art without making any money on it—at least
not directly.
 Gary Benfield serigraph |
Through the Fine Art By Hyatt program, guests now are able to purchase signed and numbered reproductions of neoclassical pieces by contemporary artists via an in-room television channel and the new fineartbyhyatt.com Web site. Complimentary coffee-table art books and DVDs in guestrooms also preview what is for sale, and guests can contact collection curators through a toll-free number.
There is even the opportunity to purchase original works at a “celebration of art,” a sort of traveling show in which two selected artists’ creations are showcased along with other works in the Fine Art By Hyatt collection. The company’s goal is to host one such event every two months in a different Park Hyatt, featuring different artists at each hotel. “This is an amenity that no other hotel company offers,” says Scott Mason, director of special projects for Fine Art By Hyatt.
The program is a partnership with Destiny Fine Art, a Sedona, Arizona-based company that selects and sells the art. Hyatt Hotels Corp. gets only “a small percentage” of any sales intended to cover the cost of hosting on-site galleries at each Park Hyatt, according to Mason. Destiny covers all other expenses, including those associated with the complimentary books and DVDs in guestrooms.
The real purpose of the program, Mason says, is to establish a competitive advantage. “This was an opportunity to do something unique,” he says. “It’s about having a niche that no one else has that might increase market share for us.”
Unlike most products sold by hotels, the works in the Fine Art By Hyatt collection are not part of the furnishings found in the 22 Park Hyatt properties. Rather, they were chosen to fit the “more intimate settings” of private homes. The 60 initial offerings come from a group of 20 internationally recognized artists. Prices range from US$350 for a Gary Benfield serigraph to US$14,800 for an original bronze sculpture by the Vietnamese artist Tuan (a US$16,800 Tuan sculpture recently sold at the first“celebration of art” in Chicago). Selections will be updated quarterly.
If art turns out to be popular with Park Hyatt guests, it could be offered at other Hyatt properties in the future. “We want to see what type of interest in-house guests as well as top clients have,” Mason says.
Choice
Ponders Another New Brand
SILVER SPRING,
MARYLAND Executives at Choice
Hotels International are encouraged by the economic opportunity
of the extended-stay segment and have developed a concept
and prototype for possible entry into the economy extended-stay
market.
 Prototype of new Choice economy extended stay brand. |
Showcased to franchisees for feedback at the company’s annual convention in Las Vegas in May, Choice is looking to distinguish the concept on a rich interior design and high quality finish. To do so cost-effectively (Choice is aiming for US$27,000 to US$29,000 per key in construction costs for owners), the company is considering sacrificing space—concept rooms are just 225 sq. ft. (21 sq. m) and feature one double bed, open closets and shower-only baths. But all rooms still would contain a kitchen with a small table and two chairs.
Choice already has one extended-stay brand in MainStay Suites, which saw slower growth for a while but has started to take off following changes to training programs, franchise services and local sales support. Encouraged by MainStay’s growth (15 to 20 currently in the pipeline, according to Dave Goldberg, senior vice president, brand strategy) and the segment in general, Choice looks to be headed toward rollout of the new concept. Though not definite at this point, stage-wise the concept looks as though it could be ready for a 2006 debut. There is one big step still to come, however: a name.
“By the time we launch the brand we’ll have a name,” Goldberg says. “There’s not a huge need to have one before that point.”
Although there are several players in the extended-stay arena, Goldberg sees only one or two companies as big players and feels nobody is dominating the market. “I think that’s part of the opportunity,” he says. “In terms of franchised hotels, there’s not a dominant extended-stay franchise company out there. And we don’t compete against (non-franchise brands) for developers and franchisees.”
Gostelow
Report
Grupo Istmo CEO Alan Kelso is
the visionary leading the 14-year
plan to develop no more than
30% of the 2,250 acres (911 ha)
of the Papagayo Peninsula in
Costa Rica. Already, as well
as a Four Seasons resort, residences
and Arnold Palmer golf course, Kelso plans two more golf
courses, a 350-berth marina with surrounding village
and a further six luxury resorts. So far only two concepts
are being considered in conjunction with Ronald Zurcher,
environmentally talented architect of the armadillo-like
Four Seasons buildings. One may well be a second Four
Seasons, with about 60 rooms and aimed exclusively at
privacy-seeking adults. Another is rumored to be St.
Regis. The other six
developments so far appear to be open to bidding companies
in the luxury sector.
About 1,200 acres (485 ha) of Canouan Island in St. Vincent and the Grenadines are being developed by Canouan Resorts Development Ltd., led by Chairman Antonio Saladino of Lugano, Switzerland-based Banca Gesfid. His on-island CEO and fellow investor in the island is entrepreneurial lawyer Achille Pastor Ris. Canouan Resorts Development Ltd. has already given Canouan an airport, brought in essential utilities and built a golf course, casino and resort. In 2003, it brought in two significant international partners. First, Donald Trump has taken over management of the casino and Jim Fazio-designed golf course, and he is handling sales and marketing for 80, three-acre residential lots plus already-built residential villas. In addition, Raffles International, the hotel management arm of CapitaLand Ltd., Singapore, has given its name to the resort, which it has managed since re-opening July 2004. Now, says Pastor Ris, there is room to think about an additional hotel, perhaps an eco-friendly or boutique property.
Didier Primat, CEO of Curacao-registered Primwest Holding NV, wants to create the ultimate destination in the Irish countryside. His company owns the old Guinness family home of Luttrellstown Castle covering 600 acres (243 ha) under half an hour’s drive from central Dublin. What is now a 14-room hotel will be expanded to give a further 100 rooms with a golf course and a spa to create world attention.
Ali Al-Hamdy, managing director of Nesco Egypt for Tourism Investments, Sharm el Sheikh, Egypt, has many projects under way. In Syria, Nesco is negotiating with the government to establish historic and business properties in the capital, Damascus. In the Egyptian capital, Cairo, Nesco plans a 5-star hotel in a mixed-use development on the bank of the River Nile next to the World Trade Center. In its home base city of Sharm el Sheikh, Nesco plans a 220-room hotel for which it still needs a management company. In addition it has a further plot for a luxury spa hotel.
In Latvia, Nesco owns the already-open 150-room Kemeri Kempinski Palace Hotel in Jurmala, near the original Kemeri Sacred Springs where it is turning a two-centuries-old sanatorium into a modern 180-room sanatorium and 40-bed plastic surgery clinic. It is looking for a partner for the spa side of this property. In Morocco, there are two projects: Kempinski Hotels, Resorts and Palaces, Geneva, will operate the 253-room Royal Palace Agadir, and an operator is still sought for a 250-room project in the Agudel Gardens area of Marrakech.
In Dubai, Ritz-Carlton Area Vice President Marc Dardenne is looking forward to his second project, the 330-room Ritz-Carlton Dubai International Financial Centre.The Ritz-Carlton Hotel Company is on the lookout for sites in Beirut and Cairo. Ed Fuller, president and managing director, Marriott International, says he, too, is looking for partners in Lebanon. He is also keen on all the Emirates, especially Abu Dhabi, and he would like an entry into the Sultanate of Oman.
Mary Gostelow,
Contributing Editor
Send your news via e-mail to: mary.gostelow@wowtraveler.net
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