Hotel & Motel Management - October 6, 2008 - (Page 20)

20 Special Report INDEPENDENT HOTELS H&MM October 6, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Strong performance adds to boutique owner appeal By Allie Johnson CONTRIBUTING EDITOR B outique hotels run the gamut from old-world charm in a renovated historic building to ultra-modern sleek in a new-build property. They’re popular with guests because each one provides a unique, personalized lodging experience. And, despite the fact that boutique hotel performance can be more volatile than that of hotels overall, they’re popular with owners and developers, too. “It can be a bit of a rollercoaster ride, but if you have the stomach to tolerate swings in perfor- mance, then a boutique hotel will not upset you,” said Robert Mandelbaum, director of research information services for PKF Consulting and author of a report titled “Boutique Hotels: Good for the Good Times.” That’s because despite ups and downs, boutique hotels still tend to do better overall. “What’s key to point out is that while declines during slower periods are more dramatic than in the industry at large, the net result is still occupancy and market rates above averages,” Mandelbaum said. In fact, PKF research shows that from 2000 to 2006 (the most recent year for which data is available) boutique hotels studied had higher occupancy, average daily rate and revenue per available room than the overall hotel population studied. In 2006, the boutique hotels studied had an average size of 166 rooms with an average occupancy rate of 77.3 percent and an ADR of about $223.23. Compare that with PKF’s overall numbers: 244 rooms, 71.8 percent occupancy and an ADR of $140.84. Independent advantages One advantage of owning an independent boutique hotel is not having to comply with brand standards. “By not being constricted by a brand, we can bring maxi- Holtze mum creativ- MAGNOLIA HOTELS ity and individuality from one project to the next,” said Steve Holtze, owner of The Magnolia Hotel Denver and CEO of Denver-based Magnolia Hotels, which started with one hotel and has grown to four in Denver, Dallas, Houston and Omaha. Holtze said Magnolia Hotels keeps service levels and amenities consistent while still tailoring each hotel to the individual market. Not being branded can help boutique hotels achieve a higher level of proﬁtability, according to some owners. For one, not having to meet brand design standards can Marvin allow for more LEGACY PROPERTY flexibility in construction or refurbishing the building, which can save money, according to David Marvin, president and founder of Legacy Property Group LLC, which in 2006 opened The Glenn Hotel, Atlanta’s ﬁrst independent boutique hotel. Legacy also owns three branded hotels. See Boutique | page 52 CIRCLE NO. 103 “We work with many of the largest ATM deployers in the country and have found that in terms of service levels, operational controls, and integrity of the operators that ATM Systems is in the very upper echelon of all of the ATM companies in the country.” --Cash Connect, a division of WSFS Bank John Clatworthy, VP of Sales & Marketing “I am a loyal client as a result of your professionalism and reaction time to my needs. Your decision to replace the old ATM was much appreciated. The new ATM is perfect.” --Radisson Hotel Sacramento George LaPointe, Director of Operations “Our front desk employees continually share with me the positive feedback they have received from our guests. Based on these comments, it’s clear that the ATM is fulfilling a guest service need at our hotel and has proven to be a real convenience for our guests.” --Radisson Hotel Boston Jack Eagan, Controller ATM Systems http://www.HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.atmsystems.com http://www.atmsystems.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - October 6, 2008

Hotel & Motel Management - October 6, 2008 Contents NYLO Brands Mix Up Lifestyle Segment La Quinta Eyes Mexico, Canada for Growth Perspective Legally Speaking Marketing Matters Satisfaction Trends Maintenance Doctor HotelWorld Update Trends & Stats Independent Hotels Top Hotel Multiunit Owners and Developers Survey Cleaning & Maintenance Music Wallcoverings Supplier News Transactions Softgoods: Bedding & Linens People Events Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - October 6, 2008

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