Hotel & Motel Management - February 4, 2008 - (Page 44)

44 News H&MM February 4, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Franchise contracts Continued from page 1 “We want to continue to grow, and we need to make sure what we do is fair and that people are comfortable signing our franchise agreements,” he said. Gerald Chase, president and c.o.o., New Castle Hotels & Resorts, which owns and manages 31 hotels with more than 4,000 guestrooms, agreed that the balance between interests is important. “Is it a fair agreement?” he said. “Is it good for both sides? The agreements will continue to evolve, and we’ll continue to see them reﬂect the importance of the industry.” Platt and Chase are members of a panel titled “Sign Here: Dealing with the Current Franchising Agreement,” which will be held during the Hotel- Chase NEW CASTLE World Expo & Conference. The event is scheduled for Feb. 25-27 in Las Vegas, and it is presented by HOTEL & MOTEL MANAGEMENT, HOTEL DESIGN and LUXURY HOTELIER magazines. “There is less room for interpretation, so there are fewer disagreements about what’s expected,” he said. “That’s a good thing in many respects.” HotelWorld highlights HotelWorld will offer hotel owners, operators and managers from around the world a conference program segmented to meet their needs, an exhibit show ﬂoor ﬁlled with the latest trends and products in the industry and the HotelWorld Global Hospitality and Design award ceremony. Opt outs Platt said the majority of Choice’s brands offer 20-year agreements with opt-out windows at ﬁve, 10 and 15 years. The Rodeway brand, however, recently changed its franchise agreement to feature annual outs. He said the annual windows give franchisees ﬂexibility. “If it performs for you, keep it. If not, try something else,” he said. “Retention has been high. It’s been very successful.” Platt said the company sold fewer than 20 Rodeway franchises four years ago, but it sold close to 100 last year with the adoption of the new optout policy. The company also lowered the brand’s fee structure. More than 100 speakers will participate in 32 panels during HotelWorld. Committed conference speakers include: Terry Lanni, chairman and c.e.o. of MGM Mirage; Chip Conley, founder and c.e.o. of Joie de Vivre Hotels; Don Peebles, c.e.o. of The Peebles Corp.; Nicholas Clayton, president of Kor Hotel Group; and Mark Van Hartesvelt, president of Gemstone Resorts International. HotelWorld is part of International Hospitality Week, comprising “The Show,” which serves the beverage, bar and nightclub industry, and the International Las Vegas Restaurant Show, which serves the restaurant industry. International Hospitality Week will take place Feb. 24-27 at the Las Vegas Convention Center. HotelWorld will focus on hotel and resort design, development and operations and offer conference programming split into three segments: luxury/boutique, fullservice and limited/select-service. Attendees will have the option to choose one track or sample a mixture of each based on their speciﬁc needs and goals at the show. For information about the event and awards program, visit www.hotelworldexpo.com or www. HotelMotel.com. esimon@questex.com INTERNATIONAL HOSPITALITY WEEK HotelWorld has teamed up to co-locate with three other hospitality events – the International Restaurant Show-Las Vegas, Nightclub & Bar Convention and Trade Show and the International Las Vegas Coffee & Tea Expo – to create the inaugural International Hospitality Week. Attendees can walk the HotelWorld exhibit ﬂoor along with the show ﬂoors of each event. International Hospitality Week features: More than 2,000 booths Four exhibit halls Three days of general sessions, conferences and special events More than 30,000 attendees Keynote speaker highlights: TERRY LANNI, chairman and c.e.o. of MGM Mirage CHIP CONLEY, founder & c.e.o. of Joie de Vivre Hospitality HAMISH DODDS, president/c.e.o., Hard Rock Café Worldwide PAUL DALY, assistant v.p. of F&B, Hyatt Hotels & Resorts, North America RICHARD RIVERA, chairman of the board, National Restaurant Association Evolution of agreements Platt said the biggest change to franchise agreements during the past 10 years has been an effort by franchisors to make agreements more franchisee-friendly by clearing up the language. “They’ve gone from legal [language] to plain English,” he said. “People can understand what they’re reading before they bring it to their lawyer. It’s important for franchisees to understand these are really one-sided, and that’s why they’re written the way they are. But we’re doing that for a reason.” Chase said that while contracts are longer and more difﬁcult than they were two years ago, there is clearer language about standards. “Franchisors have more control over product standards than they used to, which is good for their brand equity,” he said. “The same is true for the owners and franchisees. If you are going to agree to a franchisor, you want the brand equity to be strong. You want consistency in the marketplace. That control beneﬁts both sides.” The clearer language can prevent misunderstandings down the road, according to Chase. Note: Food & Beverage attendees also have an exclusive opportunity to register for an attendee package that combines seminars from HotelWorld along with more than 60 seminars from the International Restaurant Show, the International Las Vegas Coffee & Tea Expo and the Nightclub & Bar Convention and Trade Show for a discounted price! Visit www. internationalrestaurantshow.com for more information. For more information and other details go to www.hotelworldexpo.com or www.internationalhospitalityweek.com http://www.HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.internationalrestaurantshow.com http://www.internationalrestaurantshow.com http://www.hotelworldexpo.com http://www.internationalhospitalityweek.com http://www.HotelMotel.com http://www.hotelworldexpo.com 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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