Hotel & Motel Management - April 21, 2008 - (Page 4)

4 News H&MM April 21, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Vista afﬁrms fair franchising doctrine By Heather Gunter ASSOCIATE EDITOR The Asian American Hotel Owners Assn. released a Fair Franchising progress report, in which franchise programs were measured against its 12 Points of Fair Franchising. Of the ﬁve major franchisors examined in the report, AAHOA board members said Accor franchising has been the most receptive and Choice Hotels International has been the least receptive to updates in franchise standards. AAHOA will examine other brands’ commitments to the 12 points of fair franchising in the future. Kimpton Group Holding LLC, parent company of Kimpton Hotels & Restaurants, closed its third institutional real-estate fund and raised $246 million to acquire more than $800 million worth of hotels during the next three years. Sheraton Hotels & Resorts, the largest brand of Starwood Hotels & Resorts Worldwide, announced a global expansion initiative. The plan calls for the addition of 54 hotels and 20,000 new rooms by 2009. In North America the growth will be driven by a $2billion investment in hotel openings. A multiyear strategy also includes U.S. upgrades and renovations. Murfreesboro, Tenn.–Ramesh Gokal wants to provide a new philosophy on franchising. “Franchising seems more onesided than ever,” said Gokal, president and c.o.o. of Advantis Hospitality Alliance’s Vista brand. “Franchisees are getting the short end of the stick.” Gokal came out of semi-retirement last year to lead the midscale brand because of its commitment to “change based on experience.” “We essentially sat down in the last six months and asked, ‘What would be the perfect franchise?’” Gokal said. Franchisees have little ability to leave a franchise or voice Gokal what chang- ADVANTIS es they want, he said. That is why the company created the VistaAdvantage 5 Point Program, which includes ﬂexible agreements, mutual commitment, operations support, guest approval and triumphant franchisees. A cornerstone of the brand is its ﬂexible agreements with ﬂat fees, long-term agreements with mutual Harvel annual termiADVANTIS nations with or without cause, no liquidated damage provisions and business protection through negotiated areas of protection. “If you’re unhappy, go somewhere that makes you happy,” said Kelly J. Harvel, executive director of Advantis. “If it’s not the right ﬁt, you should be able to leave.” The mutual commitment is spelled out in the Vista Fairness Doctrine with 17 promises, including: no standards changes without approval of the advisory board; no vendor exclusivity; mediation for contract dispute resolution; all company or sales personnel representations provided in writing; shared proﬁts from customer purchasing or marketing programs; and a negotiated venue arrangement for all See Franchising | page 34 HOTEC panel explores green procurement By Emily Hanna ASSOCIATE EDITOR Frisco, Texas–Towel reuse, recycling and composting all have become familiar terms to hoteliers in the quest to go green. But what does it mean to buy green? Fifty-four vendor companies and 53 buyers joined to ﬁnd out the answer at HOTEC Operations North America in March at the Westin Stonebriar Resort. Prior to two days of networking events and one-on-one meetings between vendors and senior purchasing decision-makers, eco- conscious industry leaders discussed the purchasing process, and how and why buyers and sellers must strive for green products. The seminar, moderated by Jeff Higley, director of communications/editorial director, digital media at Smith Travel Research, noted that buying and using environmentally friendly products isn’t new—it just is more prevalent. “A lot of us here were green before green was cool,” said Bill Hirsch, director of business development at the purchasing consortium BuyEfﬁcient. “Greening isn’t Richard Oakes [left], category director at Gaylord Entertainment, and Bill Hirsch from BuyEfﬁcient discuss the need for cooperation. something that’s new, but greening has gone from an individual effort to [an entire culture].” Prior to the conference, attend- ees were asked what is missing to make green work in the industry. The No. 1 response was cost, folSee Green procurement | page 34 Spa revenue drives overall proﬁtability Services are more popular, but retail and personal training round out department earnings the “Trends in the Hotel Spa Industry” report National Report–Hofrom PKF Hospitality tel spa revenue and profResearch, an afﬁliate of its have dramatically inPKF Consulting in Los creased since 2005, a Angeles. study by PKF Hospitali“By offering and ty Research shows. promoting spas to their Hotel spa depart- Woodworth guests, hotels have genment proﬁts rose 11.3 PKF erated increased interest percent from 2005 to in pampering and luxu2006, and spa department reve- rious spa experiences,” said Mark nue grew 9.7 percent from an av- Woodworth, president of PKF erage of $2,886 per available room Hospitality Research in Atlanta. in 2005 to $3,166 per available Driving the increase in revroom in 2006. enue was a 9.6-percent increase This growth exceeded the 5.9- in the sale of popular spa servicpercent gain from all other ho- es such as massages, body scrubs, See Revenue | page 30 tel departments, according to By Christine Blank CONTRIBUTING EDITOR For updated breaking news, visit www.HotelMotel.com. NATURAL SPA CONSULTING Smith Travel Research, Deloitte’s HotelBenchmark and The Bench launched STR Global, which aims to provide hotel research with regular and custom reports covering more than 36,200 hotels with nearly 5 million guestrooms worldwide. STR Global is based in London. The Spa at Wine & Roses hotel in Lodi, Calif., features the Kenesaw Retreat, a private spa suite designed for relaxing couples’ spa treatments. H&MM | EMILY HANNA http://HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.HotelMotel.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - April 21, 2008

Hotel & Motel Management - April 21, 2008 Contents Vista Affirms Fair Franchising Doctrine HOTEC Panel Explores Green Procurement Spa Revenue Drives Overall Profitability Perspective Legal FAQ Sales Clinic Travel Trends Guest Column Trends & Stats Owners and Operators Feel Pressure to Switch to HD Protect and Clean Stone Floors Coffee On Demand Fitness Equipment Experts Weigh New Builds Vs. Conversions Transactions Ad/Edit Index Marketplace Classifieds Checking Out

Hotel & Motel Management - April 21, 2008

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