Hotel & Motel Management - September 1, 2008 - (Page 10) 10 AAHOA Update IN THE details Money woes disrail plans Small businesses affected Hoteliers can’t get loans Alternative lending options H&MM September 1, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Credit crunch may disrupt renovation plans ecently, there has been a significant amount of media attention on the credit crunch, namely on how it has impacted corporate conglomerates. But smaller businesses also are affected because of their reliance on outside sources of financing. And use of personal credit to maintain their day-to-day operations greatly ex- R By Ashwin ‘Ash’ Patel H&MM Columnist ceeds that of larger businesses. According to a recent survey conducted by the National Small Business Assn., when businesses cannot obtain financing, 40 percent of them will decide against expansion-related expenses. Entrepreneurs are now forced to rethink their spending, and many of the planned expansions, renovations, upgrades and relocations of their businesses are being postponed. Most hotels generally conduct some form of renovation every five to seven years. Doing so ensures the facilities will satisfy the franchisor’s brand standards. However, in these economic times, hotel owners PSYCHOLOGICAL COMFORT PHYSICAL COMFORT Carrier helps make everyone comfortable with our new quiet and energy efficient PerformanceTM Series e PTAC unit. Our unmatched expertise gives you flexible choices that will help you save money while keeping are expressing two important concerns about compliance with brand standards because they need funding to renovate their properties. The first concern arises because many owners with good credit are experiencing difficulties obtaining necessary loan approvals. The second concern is that many hotel owners planned to renovate their hotels upon receiving the necessary loan approvals, but discovered at the last minute that lenders changed their minds and refused to fund the loans. What is a franchise hotel owner to do in either situation? First, the franchisee should consider finding alternate sources of capital, such as the U.S. Small Business Administration’s 504 Loan Program. This is principally suited for business owners who plan to renovate their facilities. Some advantages of the SBA loan program are low interest rates, low down payments and fixed rates that will not change during the term of the loan. Another option to consider is private lending services that enable business owners to borrow competitively from an individual lender. Second, the franchisee should strive to develop a close working relationship with the franchisor to evaluate temporary solutions. Franchisors should not demand that the franchisees spend unnecessary money or jeopardize their financial stability to comply with a renovation deadline that can be postponed until the economy improves. For renovations requiring immediate attention, franchisees should research ways to save on renovation expenses by defining the entire scope of the project, seeking input from other hotel operators who managed a similar project and selecting general contractors who offer the necessary experience and reasonable rates to complete the project. hmm@questex.com Ashwin “Ash” Patel is 2008 chairman of the Asian American Hotel Owners Assn. Contact him at (404) 816-5759 or visit www. aahoa.com w w w.carrier.com 1-800-827-7435 © CARRIER CORPORATION 2007. A member of the United Technologies Corporation family. Stock symbol UTX. your rooms comfortable and quiet. And eliminating problems with your air conditioners will help ensure your guests enjoy a comfortable and happy stay. CIRCLE NO. 105 http://HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.carrier.com http://www.carrier.com http://www.aahoa.com http://www.aahoa.com
Table of Contents Feed for the Digital Edition of Hotel & Motel Management - September 1, 2008 Hotel & Motel Management - September 1, 2008 Contents Element LEEDs Brand-wide Promise NABHOOD Speakers: Hold Rates Perspective Letters to the Editor Legally Speaking Satisfaction Trends AAHOA Update Energy Star Update Marketing Matters Events HotelWorld Update Trends & Stats Coffee Services Business Equipment Ad/Editorial Index Marketplace Classifieds Checking Out Hotel & Motel Management - September 1, 2008 Hotel & Motel Management - September 1, 2008 - Hotel & Motel Management - September 1, 2008 (Page 1) Hotel & Motel Management - September 1, 2008 - Hotel & Motel Management - September 1, 2008 (Page 2) Hotel & Motel Management - September 1, 2008 - Contents (Page 3) Hotel & Motel Management - September 1, 2008 - NABHOOD Speakers: Hold Rates (Page 4) Hotel & Motel Management - September 1, 2008 - NABHOOD Speakers: Hold Rates (Page 5) Hotel & Motel Management - September 1, 2008 - Letters to the Editor (Page 6) Hotel & Motel Management - September 1, 2008 - Letters to the Editor (Page 7) Hotel & Motel Management - September 1, 2008 - Satisfaction Trends (Page 8) Hotel & Motel Management - September 1, 2008 - Satisfaction Trends (Page 9) Hotel & Motel Management - September 1, 2008 - AAHOA Update (Page 10) Hotel & Motel Management - September 1, 2008 - AAHOA Update (Page 11) Hotel & Motel Management - September 1, 2008 - Energy Star Update (Page 12) Hotel & Motel Management - September 1, 2008 - Energy Star Update (Page 13) Hotel & Motel Management - September 1, 2008 - Marketing Matters (Page 14) Hotel & Motel Management - September 1, 2008 - Marketing Matters (Page 15) Hotel & Motel Management - September 1, 2008 - Events (Page 16) Hotel & Motel Management - September 1, 2008 - HotelWorld Update (Page 17) Hotel & Motel Management - September 1, 2008 - Trends & Stats (Page 18) Hotel & Motel Management - September 1, 2008 - Trends & Stats (Page 19) Hotel & Motel Management - September 1, 2008 - Trends & Stats (Page 20) Hotel & Motel Management - September 1, 2008 - Trends & Stats (Page 21) Hotel & Motel Management - September 1, 2008 - Coffee Services (Page 22) Hotel & Motel Management - September 1, 2008 - Coffee Services (Page 23) Hotel & Motel Management - September 1, 2008 - Coffee Services (Page 24) Hotel & Motel Management - September 1, 2008 - Coffee Services (Page 25) Hotel & Motel Management - September 1, 2008 - Business Equipment (Page 26) Hotel & Motel Management - September 1, 2008 - Business Equipment (Page 27) Hotel & Motel Management - September 1, 2008 - Business Equipment (Page 28) Hotel & Motel Management - September 1, 2008 - Business Equipment (Page 29) Hotel & Motel Management - September 1, 2008 - Ad/Editorial Index (Page 30) Hotel & Motel Management - September 1, 2008 - Ad/Editorial Index (Page 31) Hotel & Motel Management - September 1, 2008 - Marketplace (Page 32) Hotel & Motel Management - September 1, 2008 - Classifieds (Page 33) Hotel & Motel Management - September 1, 2008 - Classifieds (Page 34) Hotel & Motel Management - September 1, 2008 - Classifieds (Page 35) Hotel & Motel Management - September 1, 2008 - Classifieds (Page 36) Hotel & Motel Management - September 1, 2008 - Classifieds (Page 37) Hotel & Motel Management - September 1, 2008 - Checking Out (Page 38) Hotel & Motel Management - September 1, 2008 - Checking Out (Page 39) Hotel & Motel Management - September 1, 2008 - Checking Out (Page 40)
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