Hotel & Motel Management - September 15, 2008 - (Page 1)

NEWS NEW CITY ON THE STRIP Page 4 SPECIAL REPORT IHG TOPS THIS YEAR’S LIST Page 30 NEWS THEMED ROOMS CAPTIVATE KIDS Page 80 www.HotelMotel.com News Analysis, Trends and People Since 1875 A HotelWorld Network Publication | Vol. 223, No. 16 | September 15, 2008 Wheel of misfortune Terminating a license agreement can be a painful process ﬂag change—you see a Rodeway Inn SENIOR EDITOR go to a Super 8—somebody terminated or was terminated.” National Report–Renovating. Belmonte offered three examples Reflagging. Liquidating. of how and why a contract between a These can be scary terms to a franchisee and a franchisor could end franchisee. They often are heard as a early: contract with a franchisor is coming to The franchisor can terminate the an end. And, in most cases, the contract contract because the property owner is is not simply expiring, but rather it is being Belmonte terminated by either the franchisee or the fran- HOSPITALITY SOLUTIONS underperforming, meaning he isn’t bringing in the necessary revenue. chisor. It can be a long, painful and pricey process. The franchisee can decide the Ending a contract with a franchisor is rather combrand is not generating enough business or promon, said Steve Belmonte, president and CEO of both The Lexington Collection and Hospitality Solutions, where he viding the right tools and, in order to save his business, can choose to switch ﬂags. helps negotiate contract termination fees. A franchisee can decide to sell the prop“It’s wild how often it happens; you see ﬂags changed all the time,” he said. “Every time you see a See Agreement | page 82 By Jason Q. Freed SPECIAL REPORT The economy, sustainability and real estate trends take center stage at The Lodging Conference, Sept. 23-26. Mixed-use beneﬁts, strategies Page 59 The business case for going green Page 60 Location, brand integral in turning around properties Page 62 Jump on the international bandwagon before it’s too late Page 66 INFO CONCIERGE “Next generation” travelers of all ages love to incorporate technology into their travel plans. Studies diverge on satisfaction By Jennifer Kovacs SENIOR EDITOR 71% Use the Internet to search for travel information 41% Have taken a virtual tour of a destination 38% Have built a trip itinerary online 37% Are inﬂuenced by personal comments on social networking or travel advisory websites Source: “The NEXTgen Traveler” survey, Ypartnership and PhoCusWright, March 2008 National Report–Guest satisfaction is up or down, depending on where you turn for market information. Recent findings from two leaders in industry research, which tend to agree more often than not, appear to prove the other wrong this time around. The J.D. Power and Associates’ 2008 North America Hotel Guest Satisfaction Study reports that guest satisfaction across a number of segments dropped significantly over the last year compared to 2007. However, the most recent Market Metrix Hospitality Index shows the opposite—or more precisely, near-record levels of satisfaction as of the second quarter of 2008—as See Satisfaction trends | page 86 Market Metrix Hospitality Index average segment scores* TOTAL Q2 Q1 2007 2008 2008 Luxury 85.1 Upper-upscale J.D. Power and Associates 2008 North America Hotel Guest Satisfaction Index Study average segment scores* 2006 2007 2008 Luxury 85.6 86.4 84.1 84.6 84.6 84.7 78.7 80.2 83.9 83.6 77.1 78.3 811 815 784 745 770 684 778 815 780 739 766 659 783 84.6 Upscale 83.7 Midscale w/F&B Upscale 788 Midscale full-service 746 772 690 Extended-stay 79.3 82.8 Economy Midscale limited-service Economy/budget Midscale w/o F&B 77.2 *All scores out of 100 786 *All scores out of 1,000 Source: Market Metrix Source: J.D. Power and Associates http://www.HotelMotel.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - September 15, 2008

Hotel & Motel Management - September 15, 2008 Contents Microtel, Hawthorn Settle in at Wyndham Is it Black or Red for Green Hotels? New City on the Strip When in Doubt, Purchase some Seashells Legal FAQ Consultant's Corner Sales Clinic On Finance Travel Trends Franchise Law Guest Column Events Cornell Insights HotelWorld Update Trends & Stats Top Hotel Companies Survey Awards Lending Requires Knowledge, Preparation Casegoods Minibars Historian to Keynote Leadership Forum at IH/M&RS Fitness Equipment The Lodging Conference Preview Accent Lighting Awards Vacuums Supplier News Transactions People Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - September 15, 2008

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