Hotel & Motel Management - February 4, 2008 - (Page 4)

4 News H&MM February 4, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Murray, Keltner to keynote Atlanta event A ﬁre that broke out on the top ﬂoors of the Monte Carlo Resort and Casino in Las Vegas on Jan. 25 was fully contained within hours, with no major injuries reported, according to CNN. At presstime, the property still was closed for business. The 32-ﬂoor, 3,000-guestroom property is a subsidiary of MGM Mirage and employs about 3,000 people. 2008’s construction pipeline stood at 5,438 projects and 718,387 guestrooms at the end of the fourth quarter of 2007, according to Lodging Econometrics’ “2008 Outlook for the Lodging Industry.” This is the ﬁrst time the number of guestrooms is projected to exceed 700,000. Revenue per available room and average daily rate growth will ﬂatten in 2008, according to PricewaterhouseCoopers’ “2007 U.S. Lodging Industry Report and Forecast.” The report forecasted ADR will increase by 5.6 percent and RevPAR will increase 5.1 percent. The company projected occupancy will drop to 62.9 percent. ATLANTA–The Hotel Investment Conference unveiled a timely theme for its upcoming meeting, one that acknowledges the complexities of the current economic environment: “The Money & The Marketplace: Hotel Investing in Today’s Financial Climate.” In addition, ofﬁcials announced the Hunter HUNTER REALTY keynote speakers for the event to be held March 9-11 at the Atlanta Marriott Marquis Hotel. The Hotel Investment Confer- ence is designed speciﬁcally for hotel owners and investors. The event will feature 106 speakers from 24 states, seven main event sessions, 16 breakout sessions and 15 roundtables. John Murray, president and c.o.o. of Hospitality Properties Trust, who oversees one of Keltner the largest hosHILTON pitality portfolios in the nation, valued at more than $6 billion, will be the keynote speaker on March 10. Tom Keltner, c.e.o. Americas & global brands, Hilton Hotels Corp., will keynote the March 11 luncheon. “With the subprime crisis and a difﬁcult-to-read economy, ﬁnancing has become one of the most important issues facing hotel owners in the coming year,” said Bob Hunter, Hotel Investment Conference chairman and president of Hunter Realty Associates. “We have a strong emphasis on hotel ﬁnancing: 20 speakers who are hotel ﬁnancing and equity experts; six ﬁnance roundtables and See Atlanta | page 47 What: 20th annual Hotel Investment ConferenceAtlanta Where: Marriott Marquis, downtown Atlanta When: March 9-11 Focus: Owners of fullservice and limitedservice hotels between 80 and 400 guestrooms Theme: “The Money & The Marketplace” More information: www. hotelinvestmentconference. com, (404) 355-0880 or nancy@hunterhotels.net ABVI approves per-room fee hike By Jeff Higley EDITORIAL DIRECTOR LAS VEGAS–In a city where losing happens a lot more than winning, Vantage Hospitality’s Americas Best Value Inn came out on top more often than not during its annual conference and trade show. While members voted against implementing stiffer quality assurance scores, they voted in favor of most other items on the con- ference’s agenda, including adding incentives to encourage members to participate in the brand’s marketing checklist reward system, approving a new logo amenity program and raising additional Internet marketing money to enhance the brand’s position on search engines. But it was the discussion to raise the brand’s fee structure that was the showstopper at the Monte Growth, guest loyalty on Lexington’s plate By Jeff Higley EDITORIAL DIRECTOR The sale of the Resorts East Chicago Hotel & Casino for an estimated sales price of $6.75 million was the largest singleasset hotel trade greater than $10 million not part of a portfolio transaction in 2007, according to the CB Richard Ellis “2007 Select Major U.S. Hotel Sales Survey.” Resort Holdings (Colony Capital) sold the 291-room property in East Chicago, Ind., to Ameristar Casinos. For updated breaking news, visit www.HotelMotel.com. LAS VEGAS–The Lexington Collection has solidiﬁed its spot as a viable brand, and Steve Belmonte, president and c.e.o., used its ﬁrst conference to further establish its platform. With about 60 attendees, the conference was held at the Monte Carlo Casino & Resort before the conference for Americas Best Value Inn. Both brands are owned by Vantage Hospitality. “The overall message is, ‘We’re a brand, and we have traction now,’” Belmonte said. During its ﬁrst year, Lexington opened 16 properties and signed deals for seven more that Belmonte are under construction. LEXINGTON “There are a lot of brands emerging, but not a lot of them can say they have 23 hotels in their ﬁrst year,” Belmonte said. “Between our international growth and domestic growth, See Lexington | page 46 Carlo Casino & Resort. An initial vote to raise the fee $1 per room per month for three consecutive years beginning in 2010 failed to get the necessary two-thirds vote for approval. A subsequent 50 cents per room per month increase was narrowly voted down (65 percent of the members voted yes) and a 75 All ABVI members should begin implementing cents per room per green-hotel programs at their properties, month hike also was according to member Fred Roberts. defeated. After a 35-minocratic process works. ute debate, including a plea from “We believe in letting our c.f.o. and c.o.o. Bernie Moyle that members determine the success the brand needed some sort of in- of the company,” he said. “In the crease to plan for rising budgets, a end, they knew they had to fund second vote for 50 cents per room the brand in order to continue imwas passed with 87 percent of the proving it and growing it.” members approving the increase. The failed vote on stiffening Moyle said the 50-cent fee the QA program raised eyebrows per room per month increase from the executive team. Under beginning in 2010 was not a the proposed new scoring system, disappointment. 159 properties that earned an A “We knew to get the discussion score in 2007 would drop to a B going, we had to put something up score; 92 would have gone from a there,” he said. “We believe $1 is B to a C; 38 from a C to a D and reasonable, and we believe 50 cents 37 from a D to an F. Fifty-six peris reasonable. We’ll still do what we cent of the members voted for the need to do. More important than measure. Under Roberts Rules of whether it was 50 cents or $1 was Order, a motion to revote was inthat the membership hashed it out troduced but failed. for a long period of time and was Bloss said he was surprised at able to build a consensus.” the outcome of the vote, but he Roger Bloss, c.e.o., said the predicted it will be revisited duroutcome proves that ABVI’s demSee ABVI | page 46 H&MM | JEFF HIGLEY http://www.HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.HotelMotel.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - February 4, 2008

Hotel & Motel Management - February 4, 2008 Contents Murray, Keltner to Keynote Atlanta Event ABVI Approves Per-room Fee Hike Growth, Guest Loyalty on Lexington’s Plate Perspective Legally Speaking AAHOA Update Marketing Matters Consultant’s Corner On Finance Training Trends HotelWorld Update Trends & Stats Outdoor Furniture Limited-service-hotel-chain Report Energy-management System Provides Link to Savings Upgraded Bedding Program Cost Comes Due Less Hot Water Equals Less-costly Bills Events Learn to Take Advantage of Lower Insurance Costs Brokers Will Remain Unscathed in 2008 Transactions Ad/Edit Index Marketplace Classifieds Checking Out

Hotel & Motel Management - February 4, 2008

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