Lowering room rates to boost occupancy and fill beds during these troubled times undoubtedly results in lower RevPAR. Recent research by Cornell Professors Cathy Enz and Linda Canina, along with STR Global’s Mark Lomanno proved this to be the case. The subliminal message of their research seemed to be: don’t lower rates so much! Typically, everyone nods their head in agreement, understanding all too well how very long it will take to recover from today's embarrassingly low rates.

And yes, we all know this has been the mantra of every downturn, yet we also know no one listens. Owners scream at operators to fill beds and most are more than happy to oblige. What was a US$150 rate a few years ago is US$44 today.

I went to a baseball ...Read More

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Joe Goverman retired on June 9 as a bellman after 60 years at what is now known as the Capital Hilton in Washington, D.C. He was the longest serving team member Hilton ever had. That statement says it all.



People like Joe are the heart and soul of the hotel industry—the face of the business. Joe and all the others like him who truly touch guests are the people I admire and respect the most for their unending commitment to service and what I believe is their acknowledgment that taking care of people is so valuably important to leading a fulfilling life.

...Read More

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There is retail and, I think, hotel construction creating a racket just across the street from my office in Oak Brook, Illinois. It is really nice to see that each day as I come to work. It gives me hope and reassurance.

On the front page of hotelsmag.com we are featuring the new Missoni from Kurt Ritter and his team. Look through our development channel and find more deals, openings, etc. The big brands are not admitting defeat as just this week at the NYU conference they were filling everyone’s ears with boasts about pipelines and opportunity. Even smaller players like Kimpton have a war chest to source what could be great deals. Other entreprenurial hoteliers like ...Read More

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It was Tuesday just before lunchtime on the last day of this year's NYU hotel investment conference when a panel discussion finally got real. Before then, at most of the sessions I attended, I heard a lot of optimism about the bottom of the cycle either being in sight or already having been reached. There was talk about hotels starting to see longer booking windows, pent up demand for both business and leisure travel potentially leading to improved sales before the end of 2009 and financial markets showing signs of stabilization.

No doubt, at some time that hopefully is not too distant in the future, opportunity will knock again in the hotel business. Hotel real estate will start trading and better comps will emerge for operators. But the overriding sentiment I heard from hoteliers who were not on stage in front of 1,000 people is that ...Read More

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Mexico’s hotel business has been hit with a triple-whammy over the past few months: bad publicity over violence related to drug wars; the ongoing economic downturn taking a huge toll on resort business coming from the United States, especially California; and probably the most devastating yet—the swine flu scare.

Hoteliers in Mexico report business down 50% and more, especially in the luxury segment. The estimated loss of tourism revenue is somewhere around US$5 billion. Deal making has become extreme with discounts reaching 70%. One resort went as far to offer three days free for guests who catch the swine flu while staying at their property. Would you really want to stay at a resort where you contracted swine flu—even for free?

With the swine flu panic settling down for the time being and the economy maybe hitting ...Read More

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It is Memorial Day weekend here in the United States, the traditional start of summer travel season.

Research firms are predicting a decent summer travel season—as long as the economy doesn’t plunge to even further depths. I think people are ready to treat themselves after a long, hard winter and hotels should benefit, or at least see some positive movement in occupancies. All the major brands are promoting serious summer deals and I expect it will induce pent-up demand.

Gas prices have come down considerably from this time last year, so families should be hitting the highways. I expect to take my young family on regional trips by car to see family and enjoy some regional attractions.

If summer travel season goes well, perhaps it will spur recovery as traditionally leisure business leads the industry out of recession. I don'...Read More

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It was the summer of 1966. I was all of 8 years old and about 50 pounds soaking wet. I think about this moment in my life around this time every year as summer approaches.

My family used to drive about 40 miles north from our home in Skokie, Illinois, to a little town called Wauconda, Illinois, and Bangs Lake. I would anticipate these little getaways like nothing else I can remember because Bangs Lake had these gigantic slides far out in the water that would take you down a very long shoot and into the lake. From shore, these slides looked so overwhelming, and that is what made the slide down such a thrill to this scrawny 8 year old.

After an hour or so in the water, I would wander with my older brothers to a shack above the beach, usually with a dime in hand to by some “pop” and mingle around. We visited Bangs Lake often in tho...Read More

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I am so busy reporting and writing stories I have not been able to blog about some of the interesting things I am seeing. I have put down my notes and shifting to the other side of my brain to update you on things that have caught my attention as of late.

The latest interesting report came across my desk moments ago from real estate broker Michael Cahill. His annual survey about real estate trends and challenges is rather chilling: investors believe the recession will last for six to nine more months, hotel values will continue to decline, operating fundamentals will deteriorate further and debt financing will be difficult for the foreseeable future. Other than that, how did you like the play Mrs. Washington?

Okay, enough bad news. Well, one more thing that ...Read More

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Happy Friday. There are actually a few good pieces of news if you look for them hard enough.

MGM Mirage stock soared today after working out a way to complete CityCenter in Las Vegas. A lot of people will start jobs and there won’t be a sore thumb sitting in the middle of Vegas. Of course, now people have to actually start arriving in Vegas in greater numbers than late, and don’t ask me to predict the chances of that happening anytime soon.

Let me offer some more good news: Hotel companies are growing. Let’s hope that is good news, too. I just talked to Tim Kemp of Firmdale Hotels in London, who is preparing the fall opening of Crosby Street in lower Manhattan with his wife and partner Kit, whose sensibilities...Read More

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I have ranted here before about the lack of creativity and the "me-too" approach to hotel marketing programs related to special causes, ocassions and events like Earth Day.

Today, I have a bouquet for the St Julien Hotel & Spa in Boulder, Colorado. The marketing team stepped out of the box and helped build awareness in the important social media space by offering to plant a tree for every new “fan” who joined St Julien Hotel & Spa’s Facebook page on Earth Day. I love it. It is fresh, creative, viral and forward thinking.

This was a very successful campaign from St ...Read More

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This is not good news.
 
My main analyst David Loeb (you know I like all of you analysts, really) at Robert W. Baird & Co. uncovers in his newsletter that Smith Travel is reporting rates paid by negotiated groups lately have been higher than transient rates, a reversal from historical norms. That most likely will only mean further degrading of group rates in the months ahead.
 
Let's just hope the economy continues to hold its own as not to accelerate attrition and cancelations among groups.

What do you make of this historic shift? How long will it last and what should be done about it, for heaven sake!?

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I want to share what I have heard back from management about the intriguing all-inclusive Quincy hotel in the heart of Singapore. I blogged on this new opening last week because it is the first city-center, all-inclusive business hotel I can remember. I specifically asked them about the opening average room rate and how they handle food and beverage with all three meals sold as part of the all-inclusive package.

Mr. Raphael Saw, director of hospitality operations, oversees all six hotels and 11 residences within the Far East Hospitality portfolio. When the 108-room, boutique-style Quincy came along, Saw's team took the opportunity to break free of the norms and rethink what a hotel stay in the city could be. They took everything they liked about hotels and traveling and everything t...Read More

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