Hotel & Motel Management - January 19, 2009 - (Page 4)

H&MM January 19, 2009 | HotelMotel.com 4 News & Analysis INDUSTRY COVERAGE “We are opportunistic and optimistic in this environment.” RAMESH GOKAL, PRESIDENT, ADVANTIS HOSPITALITY At Press time Three industry analysts see no relief from declines in key hotel numbers until 2010. PKF Hospitality Research forecasts a 7.8-percent revenue per available room decline in 2009; Steve Rushmore, CEO of HVS, said the industry is headed for “difﬁcult and challenging” times. UBS Investment Research analyst William Truelove predicted demand will be “bleak” in 2009 and remain negative in 2010. The number of hotel guestrooms in the U.S. construction pipeline that have been abandoned increased 75 percent in November 2008 over November 2007, Smith Travel Research reported. Rufﬁn Acquisition entered into an agreement to purchase Treasure Island Hotel and Casino from MGM Mirage for $775 million. The purchase price is to be paid at closing as follows: $500 million in cash and $275 million in secured notes bearing interest at 10 percent. The Taj Mahal Palace & Tower Mumbai reopened on Dec. 21, 24 days after terrorist attacks in this Indian city killed 31 people in the hotel and more around the city. The Taj launched the Taj Public Service Welfare Trust to provide relief to victims. The Travel Industry Assn. has merged with the Travel Business Roundtable to form the U.S. Travel Assn. in order to intensify the voice of America’s travel industry. For updated breaking news, visit www.HotelMotel.com. FRANCHISING Select Inn ﬁrst in Vista’s buying plans a little smaller or larger—and that faces the same growth challenges Murfreesboro, Tenn.–Advan- as the Vista Inn brand. tis Hospitality Alliance is in acqui“We’re ﬁnding companies like sition mode. The company, which Select Inn’s owners better posiowns Vista Hospitality tioned to manage rathSolutions, is acquiring MORE FRANCHISE er than also run a franSelect Inn from Select NEWS: chise,” Gokal said. America’s Best Franchising of Fargo, Franchising takes “It’s a good win-win N.D., and is looking for over Budgetel situation.” Page 46 more brands to buy. The Select Inn ac“Hopefully this is quisition opens oppornot the ﬁrst and the last one,” said tunities both in segment and marRamesh Gokal, president of Ad- ket. The economy brand, formed vantis. “We are opportunistic and in 1988, has 12 properties in the optimistic in this environment.” upper Midwest, while Vista is a The company has been look- midscale brand with 14 propering for the right acquisition of a ties in the South, Midwest and brand that can complement its California. culture, is similar in size—or even “The initial impact is to exBy Heather Gunter ASSOCIATE EDITOR This Select Inn property in Bismarck, N.D., is part of the economy brand that recently was acquired by Advantis Hospitality Alliance. pand a hub-and-spoke philosophy there,” said Kelly Harvel, EVP of operations for Advantis. “We want to bridge the gap between Nashville and there. Our property fur- thest north is in Illinois, and their southernmost property is Madison, Wis.” Harvel cited Iowa, South DaSee Select Inn | page 46 Danziger chosen for Round 2 at Wyndham brands, shifted corporate leadership roles and set new strategic goals. Parsippany, N.J.–To ﬁnd the best canIn the fall, former president and didate to lead the Wyndham Hotel CEO Steven Rudnitsky stepped Group brands through a murky ecodown [see page 44]. In early Denomic future, the company turned to cember, parent company Wyndham someone from its past. Eric Danziger, Worldwide changed its fourth quarwho took over as president and CEO ter and 2008 guidance and reporton Dec. 1, was president of Wyndham Danziger ed it expects to earn $3.7 to $4.1 bilHotels and Resorts in 1990. lion in revenue in 2009. This news WYNDHAM Now, 18 years later, Wyndham came at the same time the company Hotel Group is coming off a year in which it announced it would restructure its timeshare acquired the Microtel and Hawthorn Suites business to rely less on asset-backed securities. By Stephanie Ricca EDITOR IN CHIEF The move is expected to eliminate 4,000 jobs worldwide. On the hotel side of the business, Danziger said 2009 will be a time to make good aspects of the company better. “This is an opportunity to separate ourselves from the pack,” he said. “A brand is a promise to a consumer, employer and owner. These [Wyndham Hotel Group] brands are doing excellent, but there’s always room to do a little better, a little more. We’re going to take a great company that’s doing well and do more See Wyndham Hotel Group | page 44 AH&LA CHAIRMAN Martin promotes communication, collaboration, Cowboys in new role By Chris Crowell ASSOCIATE EDITOR Joe Martin, 2009 chairman of the American Hotel & Lodging Assn., was inaugurated to his new position in November. Stillwater, Okla.–On one of the biggest issues of our day, new American Hotel & Lodging Assn. Chairman Joe Martin seems a bit wishy-washy. “I’m kind of probably in favor of playoffs,” said Martin on whether he thinks there should be a college football playoff system. “I think the same debates would occur for who should be the last team in.” But his ﬁnal answer shows Martin’s true colors and a deﬁnitive stance. AH&LA “Whatever gets my Cowboys into it,” he said. Martin, the current owner/operator of Stillwater Hospitality LLC, is an alumnus of Oklahoma State University—a fact he proudly wears on his sleeve, or more literally, around his neck, since he normally wears an orange OSU tie. Martin’s devotion to his alma mater is a microcosm of how he lives his life: Whatever he’s involved in—sports, family, the community or his business—Martin invests himself in it. “I’m always involved in the communities we See Joe Martin | page 44 SELECT INN http://www.HotelMotel.com http://www.HotelMotel.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - January 19, 2009

Hotel & Motel Management - January 19, 2009 Contents Select Inn First in Vista's Buying Plans Danzinger Chosen for Round 2 at Wyndham Perspective Energy Star Update Legally Speaking Consultant's Corner Sales Clinic Travel Trends Franchise Law Family Business Cornell Insights HotelWorld Update Transactions Careful Marketing is Key for Timeshare Debt Market Slow for Most Transactions Trends & Stats Proper Mix of Uses Leads to Profitable Partnerships Card Check, Employee Retention Big Issues for CEOs Locking Systems Televisions Fitness Centers/Spas Mattresses Ad/Editorial Index Marketplace Checking Out

Hotel & Motel Management - January 19, 2009

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