Hotel & Motel Management - March 3, 2008 - (Page 42) News H&MM March 3, 2008 | HotelMotel.com LIIC’s mission The Lodging Industry Investment Council (www.liic.ws) is the premier think tank in the hotel industry. Its members include a diverse mix of 70 influential leaders in the real-estate and finance fields. Membership is by invitation. Co-chairmen: Mike Cahill, president and founder, HREC—Hospitality Real Estate Counselors; Sean Hennessey, c.e.o., Lodging Investment Advisors, Jim Butler, partner, Jeffer Mangels Butler & Marmaro Mike Cahill LIIC panel Continued from page 1 facing the industry. A halt in large transactions because of the lack of debt available dominated the conversation and provided a preview to the theme of the investment conference. But when each member was asked to discuss the biggest challenges the industry faces, topics varied. Mike DeNicola, executive v.p. and chief investment officer, FelCor Lodging Trust: tain profits and provide good services is difficult. We need the government to let us have foreign workers. We need an industry that provides career opportunities for people, health care, enough money to live comfortably, but at the same time enough money so owners can pay the mortgage and make profit on the risks they’re taking. Employees are the biggest cost in our industry and the biggest challenge long term.” Glyn F. Aeppel, executive v.p., acquisitions and development, Loews Hotels: down market, the pressure points are different, particularly with the debt challenges and the amount of equity out there. You have to be cautious and smart with how you approach your growth.” Jim Butler, attorney, Jeffer Mangels Butler & Marmaro: “Getting quality employees into our industry, into locations, into markets where we can main- “What I worry about most is how many hotel companies can continue to grow smartly. In a “Whenever there are major changes, there are pitfalls and opportunities. It’s like the shifting of the tectonic plates—what used to be firm land will suddenly become dangerous and there will be some problems and some unusual opportunities. The challenge will be to avoid those pitfalls and find those opportunities and see if you can be in position for them. Not everybody can take advantage of Middle Eastern money coming in, not everybody can figure out how to train people for Middle Eastern hotels or Indian hotels.” Rick George, principal, HREC Investment Advisors: Jim Butler Sean Hennessey foreign money—that’s going to be a great opportunity for my side of the business, for sellers this year.” Doug Dreher, president, The Hotel Group: LIIC members MIke DeNicola, executive v.p. and chief investment officer of FelCor Lodging Trust, and Glyn Aeppel, executive v.p., acquisitions and development, Loews Hotels, discussed market changes. “I have an investment banking view. I worry about increasing transaction volume for our firm at a micro level. I hope the components will be in place in the marketplace to make sure that happens; not only buying and selling hotels for certain clients but also placing debt and equity. The trickle down from some economic issues—the soft dollar, figuring out and understanding how you use H&MM | JEFF HIGLEY “Employees in the short term and the long term—that’s a huge issue. You’ve got some markets with a 1-percent unemployment rate and it’s hard to find help at the right price. You still have cases where benefits are unaffordable. It’s difficult to afford what you really need. That transcends the bottom line—managing the bottom line during this time frame.” C.A. Anderson, executive v.p., acquisitions and development, Interstate Hotels & Resorts: “When these shifts happen, you’ve got to maintain your core strategies. If you’re in the lodging business and you’re an owner/op- erator, you have two fundamental strategies: 1) Grow your real-estate piece and know when to buy and when to sell, and 2) You have to work with your teams. It goes back to the fundamentals, the blocking and tackling, in the hotel business, [and] providing service to the customer at a profit. You have to keep both of those in alignment, whether it’s new money coming in from Abu Dhabi, whether it’s new money coming in from Europe … People come and people go, dollar goes up, dollar goes down, but keeping track of what your mission is and fulfilling that mission for both your employees and stakeholders, [and] not losing track of where you want to be during the next turn of the cycle [is what’s important].” jfreed@questex.com NYLO Continued from page 1 NYLO is a full-service brand; XP will be select-service. NYLO properties feature 160 to 200 guestrooms; XP will feature 90 to 150. To build a property, NYLO has a hard cost of about $69,000 per key; XP is expected to be $46,000 to $50,000 per key. All-in cost to build a NYLO is $125,000 per key; XP is expected to be $88,000 to $95,000. NYLO properties will have a pool; pools are optional at XP properties. Average daily rate at a NYLO is about $220; XP is expected to be $90 to $220. Russell said XP will be similar to NYLO from a design perspective. Guestrooms will resemble lofts, featuring 10-foot ceilings and exposed brick. Each property will have a wine bar. “Many times, if a guest is led blindfolded into a room and the blindfold is removed, the person has no idea what hotel he is in,” Russell said. “You stay here, and you’ll know where you are. A hotel needs to tell a story.” The NYLO in Plano opened in December, and Russell said it is off to a great start. He said he purposely opened the first property in a slow period so managers had time to train employees. A NYLO in Warwick, R.I., was expected to open in February, and three others were expected to break ground then as well. “We hope to have 50 (NYLOs and XPs combined) in the ground by the end of 2010,” Russell said. Russell understands that NYLO is unique in that a brand extension was launched with only one parent property open. “With the advent of the Internet, you can do that,” he said. “W did it. Broadmoor did it. Opryland did it. These days, you’re a brand with one hotel.” jfreed@questex.com Marriott Continued from page 1 having nine, including Paris; Madrid, Spain; Costa Rica; Miami; Washington; Los Angeles; and Scottsdale, Ariz. The two parties are in advanced discussions involving 20 more hotels with as many as 30 agreements in prime locations expected by the end of 2008. The Paris Edition will be the first to open, and plans call for it to be unveiled in 2010. The South Beach Edition in Miami is scheduled to be the first U.S. property to open, in late 2010 or early 2011. Marriott said he likes the name because each property can be identified by its city or specific location. Schrager said the name reinforces the individual experience of each guest. Each Edition will have between 150 and 200 guestrooms. Schrager is leading the effort on concept, design, marketing, branding and food and beverage for Edition, while Marriott International is H&MM | JEFF HIGLEY overseeing the development process and will operate the properties. The partnership has flourished since it was announced last summer, Schrager told the crowd. “A lot of people thought it would be the partnership from hell,” he said. “Nothing could be farther from the truth.” Schrager said he would like to do 500 Edition hotels to make the brand globally accessible; however, the venture previously announced it would concentrate on having about 100 hotels. “We will approach each as a new project and have a different creative team for each,” Schrager said. Marriott said no average development costs have been established. The 75-year-old Marriott used his sense of humor, saying he hadn’t been to a party this hip since high school. “It proves opposites attract,” Marriott said. jhigley@questex.com Ian Schrager will oversee concept, design, marketing, branding and F&B for the new Edition brand he launched with Marriott. http://www.liic.ws http://HotelMotel.com http://www.liic.ws
Table of Contents Feed for the Digital Edition of Hotel & Motel Management - March 3, 2008 Hotel & Motel Management - March 3, 2008 Contents Embassy Suites Refreshes Look, Service F&B Concept Set to Take Off Conference Promises Perspective Letter to the Editor Legally Speaking Guest Column HSMAI Consultant's Corner On Finance Travel Trends Energy Star Update Trends & Stats Transactions Property Management Systems Carpet: Mixed Media Planting Greener Greens Transportation Vacation-Ownership Update Ad/Editorial Index Marketplace Classifieds Checking Out Hotel & Motel Management - March 3, 2008 Hotel & Motel Management - March 3, 2008 - Hotel & Motel Management - March 3, 2008 (Page 1) Hotel & Motel Management - March 3, 2008 - Hotel & Motel Management - March 3, 2008 (Page 2) Hotel & Motel Management - March 3, 2008 - Contents (Page 3) Hotel & Motel Management - March 3, 2008 - Conference Promises (Page 4) Hotel & Motel Management - March 3, 2008 - Conference Promises (Page 5) Hotel & Motel Management - March 3, 2008 - Letter to the Editor (Page 6) Hotel & Motel Management - March 3, 2008 - Letter to the Editor (Page 7) Hotel & Motel Management - March 3, 2008 - Guest Column (Page 8) Hotel & Motel Management - March 3, 2008 - Guest Column (Page 9) Hotel & Motel Management - March 3, 2008 - HSMAI (Page 10) Hotel & Motel Management - March 3, 2008 - HSMAI (Page 11) Hotel & Motel Management - March 3, 2008 - Consultant's Corner (Page 12) Hotel & Motel Management - March 3, 2008 - Consultant's Corner (Page 13) Hotel & Motel Management - March 3, 2008 - On Finance (Page 14) Hotel & Motel Management - March 3, 2008 - On Finance (Page 15) Hotel & Motel Management - March 3, 2008 - Travel Trends (Page 16) Hotel & Motel Management - March 3, 2008 - Travel Trends (Page 17) Hotel & Motel Management - March 3, 2008 - Energy Star Update (Page 18) Hotel & Motel Management - March 3, 2008 - Energy Star Update (Page 19) Hotel & Motel Management - March 3, 2008 - Trends & Stats (Page 20) Hotel & Motel Management - March 3, 2008 - Trends & Stats (Page 21) Hotel & Motel Management - March 3, 2008 - Trends & Stats (Page 22) Hotel & Motel Management - March 3, 2008 - Trends & Stats (Page 23) Hotel & Motel Management - March 3, 2008 - Trends & Stats (Page 24) Hotel & Motel Management - March 3, 2008 - Transactions (Page 25) Hotel & Motel Management - March 3, 2008 - Transactions (Page 26) Hotel & Motel Management - March 3, 2008 - Transactions (Page 27) Hotel & Motel Management - March 3, 2008 - Property Management Systems (Page 28) Hotel & Motel Management - March 3, 2008 - Property Management Systems (Page 29) Hotel & Motel Management - March 3, 2008 - Property Management Systems (Page 30) Hotel & Motel Management - March 3, 2008 - Property Management Systems (Page 31) Hotel & Motel Management - March 3, 2008 - Carpet: Mixed Media (Page 32) Hotel & Motel Management - March 3, 2008 - Carpet: Mixed Media (Page 33) Hotel & Motel Management - March 3, 2008 - Planting Greener Greens (Page 34) Hotel & Motel Management - March 3, 2008 - Planting Greener Greens (Page 35) Hotel & Motel Management - March 3, 2008 - Transportation (Page 36) Hotel & Motel Management - March 3, 2008 - Transportation (Page 37) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 38) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 39) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 40) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 41) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 42) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 43) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 44) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 45) Hotel & Motel Management - March 3, 2008 - Ad/Editorial Index (Page 46) Hotel & Motel Management - March 3, 2008 - Ad/Editorial Index (Page 47) Hotel & Motel Management - March 3, 2008 - Marketplace (Page 48) Hotel & Motel Management - March 3, 2008 - Classifieds (Page 49) Hotel & Motel Management - March 3, 2008 - Classifieds (Page 50) Hotel & Motel Management - March 3, 2008 - Classifieds (Page 51) Hotel & Motel Management - March 3, 2008 - Classifieds (Page 52) Hotel & Motel Management - March 3, 2008 - Classifieds (Page 53) Hotel & Motel Management - March 3, 2008 - Checking Out (Page 54) Hotel & Motel Management - March 3, 2008 - Checking Out (Page 55) Hotel & Motel Management - March 3, 2008 - Checking Out (Page 56)
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