Celebrating Forty Years of HOTELS Magazine: 1980s

By Staff -- Hotels, 8/1/2006

Era Of Glitz, Greed, Globalization

In the 1980s the hotel market was maturing, bringing new opportunities to diversify product offerings. This decade can be most easily classified as the era of segmentation as the big chains introduced new brands and new price categories—limited service, suite hotels, extended stay—to capture the growing market of travelers. In 1985 Holiday Inn changed its name to Holiday Corp. to reflect its family of brands, which included Holiday Inn, Embassy Suites, Hampton Inn, Crowne Plaza, Residence Inn and Harrah’s. Marriott also diversified with the launch of Courtyard, and later, Fairfield Inns. Accor added the Formula 1 budget brand to its portfolio, which already included Sofitel, Novotel, Mercure and Ibis. On the opposite end of the spectrum, Hilton opened its first luxury Conrad hotel and casino in Australia.

After opening up to foreign visitors in the late 1970s, China saw a hotel development boom in the ’80s with 50 major hotels under construction, of which Sheraton was the first U.S. brand to plant its flag. This China development is an example of the growing global nature of the hotel business, as more and more chains from Spain’s Sol hotels to Hong Kong’s Mandarin Oriental Hotels Group looked to grow beyond their domestic borders. At this time, management contracts also became the main means of expansion for publicly held hotel companies.

The desire to introduce new brands and growth internationally came about in large part because of consumer trends of the 1980s— affluent baby boomers, two-income families and more leisure time. People also were marrying later, creating a new marketing opportunity around the single traveler. In many ways the baby boomers in the 1980s were viewed as the Gen Xers of today—hotels were working hard to create concepts that spoke to their lifestyles.

In hotel design, the ’80s era of conspicuous consumption gave the luxury market ample opportunity to impress. Ornate public spaces focused on oversized furnishings, gilded accents, floral patterns and lacquered finishes. Guestroom design, led mostly by the all-suites hotels and extended-stay brands, became more residential. As Hotels & Restaurants International reported in June 1983, “Luxury international chains have not entered the all-suite market, but they are concentrating on making guestrooms look more like home, albeit a luxurious one.” Representing a different approach, Bill Kimpton opened his first property, the Clarion Bedford Hotel, in San Francisco in 1981, pioneering the boutique hotel concept in the United States.

On the technology front, the electronic key card and electronic in-room safe were becoming mainstream, and the first personal computers were making their way into homes and even guestrooms. Food and beverage offerings were going more healthful, thanks to the trendiness of exercise, due in part to Jane Fonda’s famous workout video, and the popularization of what was pegged “California cuisine,”—light and healthy fare with a focus on fresh ingredients. Chefs around the world were working with dietitians to devise nutritionally sound menus. New low-sodium, low-cholesterol and low-sugar options made their way into customers’ plates.

While these trends were developing, by the end of the 1980s supply and demand issues would once again be challenged as the hotel industry faced more overbuild situations, particularly in the U.S. market. At the end of the decade demand was still strong, but a recession seemed imminent, and indeed that was the environment in which hoteliers found themselves shortly thereafter.

1980: The Grand Hyatt and Park Hyatt brands are introduced

1980: Western International celebrates 50th anniversary and changes its name to Westin Hotels & Resorts

1980: MGM Grand in Las Vegas catches fire, second deadliest fire in U.S. history—leads to changes in building codes

1981: Frank Sinatra is invited to perform at Sun City, which brings the mega-resort to national attention; leads to a 60 Minutes profile of Sun City

1981: Kimpton Hotels& Restaurants opens first property: Clarion Bedford Hotel in San Francisco; first hotel to feature complimentary wine hour for guests

1981: Gordon “Butch” Stewart purchases run-down Bay Roc hotel in Montego Bay, Jamaica; renovates it to become Sandals Montego Bay, the first resort for this new couples-only, all-inclusive brand

1981: Grand Metropolitan, London, buys InterContinental Hotels from ailing Pan Am

1982: Marriott celebrates 25th anniversary, hits US$1 billion in room sales and opens 100th hotel, Marriott Maui

1983: Accor created via merger of Novotel SIEH Group and Jacques Borel International

1983: First Courtyard by Marriott opens near Atlanta

1983: Westin becomes first major hotel company to offer reservations and check-out using major credit cards

1983: Marriott launches Marriott Honored Guest, its first frequent-stay program

1983: Four Seasons creates “Alternative Cuisine,” healthful menus that are lower in calories, cholesterol and sodium

1983: Trump Tower is completed in New York City

1984: Famed Studio 54 creators Ian Schrager and Steve Rubell open Morgans, starting the boutique hotel trend in New York City

1984: Choice Hotels offers non-smoking rooms

1984: Holiday Corp. introduces Embassy Suites Hotels, the first all-suite hotel chain in the United States, in Overland Park, Kansas

1984: Marriott enters timeshare market with acquisition of American Resorts Group

1985: Sol hotels opens first international property, the Bali Sol

1985: Accor debuts Formula 1 budget brand

1985: Sandals unveils its signature swim-up pool bar

1985: Sheraton becomes the first international hotel chain to operate a hotel in China with the Great Wall Sheraton Hotel Beijing

1985: Mandarin International Hotels Limited changes its name to Mandarin Oriental Hotel Group reflecting operation of its two flagship hotels: Mandarin Hotel Hong Kong and The Oriental, Bangkok

1985: The first Conrad hotel, Conrad Jupiters Gold Coast hotel and casino opens in Australia

1986: Days Inn provides interactive reservations capability connecting all hotels

1987: Sol acquires Melia Hotels from Luxembourg-based Interpol Group. Adds 22 hotels to the chain

1987: Carlson introduces Country Inns & Suites by Carlson brand

1987: Marriott acquires Residence Inn Co. from Holiday Corp.; same year opens first Fairfield Inn in Atlanta

1987: Hilton HHonors frequent stay program launches

1987: Hilton Hotels Corp. begins installing minibars chain-wide

1988: Best Western introduces its frequent guest program, Gold Crown Club International

1988: Holiday Corp. debuts Homewood Suites extendedstay concept

1988: Schrager relaunches the Royalton in New York City—the first hotel designed by Philippe Starck

1988: UK’s Bass acquires assets in 140 Holiday Inns International, (followed by the acquisition of the remaining North American business of Holiday Inn in 1990)

1988: Ladbroke acquires Hilton International from Allegis (United Airlines); Allegis sells its other hotel company, Westin Hotels & Resorts, to Japan’s Aoki Corp.

1989: Kimpton partners with Celebrity Chef Wolfgang Puck, who opens Postrio Restaurant in the Prescott Hotel, San Francisco

1989: Hampton Inns is first chain to offer 100% satisfaction guarantee

1989: Shangri-La Hotels and Resorts launches sister brand, Traders Hotels

1989: Grand Metropolitan sells InterContinental Hotels Corp. to Saison Group, Tokyo, which in turn sells 40% of the company to SAS