Hotel & Motel Management - January 7, 2008 - (Page 4) 4 News H&MM January 7, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Desires charts course for expansion By Jeff Higley EDITORIAL DIRECTOR The U.S. House of Representatives passed the Terrorism Risk Insurance Revision and Extension Act of 2007 [H.R. 2761]. The Bill extends the Terrorism Risk Insurance Act of 2002 for seven years. The Senate passed the legislation in November. TRIA originally was passed in response to 9/11 and renewed in 2005. It provides federal aid in case of future terrorist attacks. PKF Hospitality Research forecasts occupancy levels to decline 0.7 percent in 2008, and average daily rate is expected to grow 5.3 percent, leading to a 4.5 percent gain in revenue per available room. PKF-HR also forecasts the addition of 115,000 new rooms in 2008, an increase of 2.6 percent. Most of the new supply is expected in the upscale and midscalewithout-food-and-beverage segments. Roman Jaworowicz was named chairman of Best Western International. He will serve a one-year term through December. He is owner of the Best Western Highland Inn and Conference Center in Midland, Ontario, and the Best Western Campbellsville (Ky.) Lodge. The board of directors also elected David Francis, coowner and operator of the Best Western in Lynchburg, Va., vice chairman. Desires executives [from left] Doug Carrillo, senior v.p. of sales & marketing and partner; Richard Millard, chairman and c.e.o.; and Raul Leal, president and partner, are planning an expansion of the company. Miami–There still is plenty of room for boutique hotels to find their niche in the increasingly crowded lifestyle-oriented segment of the lodging industry. That’s what the executives of Desires, the boutique division of Tecton Hospitality, are banking on as they partner with developers to create unique hotels. “It’s a very different process to develop boutique hotels,” said Richard Millard, chairman and c.e.o. “[Developers] have a personality that they want involved in it. They have a vision. We want to create their vision, and there’s a lot of room out there for that vision to become reality.” Desires, which was formed in 2005, manages 10 hotels comprising 1,000 guestrooms. It has seven properties in Miami Beach, Fla., one in Puerto Rico, one in New York and one in Atlanta. It has two properties in development in New York, one in Milwaukee and one in Atlanta. “Each market is different, and we’re looking for new-build opportunities in those markets that have that ability and conversion opportunities in other markets,” See Desires | page 73 Rosewood builds on value of name, brand development will give the brand name top billing. Dallas–Rosewood Ho“It’s really driven tels & Resorts’ decision based on the growth of to bring its name to the the company,” said Bouforefront of two of its logne, who joined the owned assets will benefit company as v.p. of sales consumers and employ& marketing in 2001 ees as the brand continand was promoted to Boulogne ues to build its presence ROSEWOOD c.o.o. in 2005. “When we around the globe. were six or seven hotels, it Robert Boulogne, was less relevant in terms Rosewood’s c.o.o., said the deci- of our need to cross sell. As we have sion to relaunch two of its flagship grown, it has become more imporproperties as Rosewood Mansion tant for guests to know they can on Turtle Creek (located in Dal- get the same type of experience at las) and Rosewood Little Dix Bay other properties.” (in the British Virgin Islands) does The relaunch of the two not mean that all of Rosewood’s properties is tied in with major 22 properties that are open or in See Rosewood | page 76 By Jeff Higley EDITORIAL DIRECTOR For updated breaking news, visit www.HotelMotel.com. The number of new-build Holiday Inn Express properties is expected to grow in 2008. This property is in Albany, Ore. See Construction | page 76 INTERCONTINENTAL HOTELS GROUP Morgans Hotel Group Co. appointed Fred J. Kleisner president and c.e.o. Kleisner has served as the company’s interim president and c.e.o. since September. The company owns and operates 12 properties. ROSEWOOD HOTELS & RESORTS Rosewood Hotels & Resorts renamed its property in the British Virgin Islands the Rosewood Little Dix Bay as part of the company’s efforts to build its presence. A major renovation of the property is tied into the renaming. Experienced developers still getting deals done By Dennis Blank CONTRIBUTING EDITOR National Report–Experts predict that in 2008, hospitality construction will continue to be robust despite tighter credit, continued high prices for concrete and steel, and a critical shortage of college-educated construction supervisors. In fact, because there are so many varied projects in the pipe- line, ranging from 90-room branded hotels to multimilliondollar overhauls of older properties, one analyst predicted more room openings this year than in 2007. Pat Ford, president of Lodging Econometrics in Portsmouth, N.H., estimated 1,213 new hotels with 138,000 rooms will open in 2008. 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