Hotel & Motel Management - November 3, 2008 - (Page 4)

4 News H&MM November 3, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition The rate debate You’ve got to know when to hold, know when to fold, industry ﬁnancial experts say Red Lion Hotels Corp. reported the company received no purchase offers following a strategic review of the company. Columbia Paciﬁc, which had expressed interest before the review, has withdrawn its previous indication of interest. The numbers: 2008 and 2009 All numbers are reported as percent change, with the exception of occupancy, which is reported as percent. All numbers listed are forecasts. STR STR PKF PKF 2008 2009 2008 2009 Room supply Room demand Occupancy Average daily rate RevPAR 2.5% -0.3% 61.4% 3.8% 1% 2.4% 0 60% 3.5% 1.1% 2.6% -0.2% 61.3% 3.6% 0.8% 3.5% -1.1% 58.7% 1.3% -3.0% By Stephanie Ricca EDITOR IN CHIEF Cascade Investment, the investment ﬁrm of Microsoft co-founder Bill Gates, increased its stake in Chicago-based hotel operator Strategic Hotels & Resorts. Cascade has acquired 4.2 million shares, or 5.6 percent of shares. Real estate markets in the U.S. are expected to bottom out in 2009 and ﬂounder for much of 2010, with ongoing drops in property values, more foreclosures and delinquencies, according to the Emerging Trends in Real Estate 2009 report released by the Urban Land Institute and PricewaterhouseCoopers LLP. PHOENIX–Just one week after Lehman Brothers Holdings filed for bankruptcy on Sept. 15, kicking off the most recent chain of events in this year’s financial crisis, lodging industry investors, brokers, lawyers and corporate executives met in Phoenix to talk about how the current economic climate might affect business in the near and far future. The topic foremost on their minds: rate cutting. The fall meeting of the Lodging Industry Investment Council was held in conjunction with The Lodging Conference in late September. “This year we’re suggesting to hold rates, hold rates,” said Jan Freitag, Smith Travel Research VP of global development. “Rate growth year to date is 3.6 [percent] to 3.8 percent, roughly around the rate of inflation. You can’t really control supply, but you have some control over rate.” Supply, demand, segment and occupancy contribute to the rate debate, particularly as the U.S. faces an economic climate similar— many LIIC participants said—to post-9/11 conditions. Sources: PKF Hospitality Research, Smith Travel Research “One of the great myths of the hotel business—and it’s got a radioactive half-life of about three days—is that when you’re in a market and your competitor drops his rate 10, 15, 30 bucks, that we’re going to hold our rate,” said Steve Van, president and CEO of Prism Hotels & Resorts. “Are we going to have empty rooms? Every cycle we talk about, ‘We’re going to hold the rate. We’re going to hold the rate.’ You hold the rate! We’re dropping ours.” William Reynolds, managing director and chief acquisitions ofﬁcer of Thayer Lodging Group, See Rate cutting | page 64 Accor deﬁnes Motel 6 prototype rollout By Stephanie Ricca EDITOR IN CHIEF Accor’s Motel 6 redesign will include wood ﬂoors, ﬂat-screen TVs, glass showers, granite countertops and bright wall colors and bedding. All Motel 6 properties should be updated by 2013. The American Hotel & Lodging Assn. has decided to drop plans for creating a hotel-speciﬁc green certiﬁcation program. The association will move ahead with guidelines to help hoteliers make their properties more sustainable. New York City goverment ofﬁcials announced the opening of a new tourism and marketing ofﬁce in India, the culmination of a two-year plan to strengthen the impact of the city’s $30 billion travel and tourism industry. Travel to New York City from India generated $266 million in 2007. For updated breaking news, visit www.HotelMotel.com. ACCOR CANCUN, MEXICO–Since the Sept. 17, 2007, naming of Olivier Poirot as CEO of Accor North America, Motel 6 and Studio 6, Accor has been quietly realigning its business philosophy. With the goal to “regain our uncontested leadership in price value in the Poirot economy segment,” Poirot up- ACCOR NA dated Motel 6 and Studio 6 franchisees this September about the brands’ new corporate vision and Motel 6 prototype plans, united under the theme “Phoenix: One team, one vision.” The prototype ﬁrst was announced See Accor | page 66 Holiday Inn eyes upscale, timeshare By Jason Q. Freed SENIOR EDITOR LOS ANGELES–More than 50 years after its inception, one of the most historic hotel chains is undergoing a major transition. During the InterContinental Hotels Group 2008 America’s Investment and Leadership conference, CEO Andy Cosslett [right] and interim president of the Americas Richard Solomons discussed IHG’s asset-light business model at the IHG conference in Los Angeles. it was apparent the company is focusing the majority of its efforts on continuing to revamp the Holiday Inn brand. Relaunches of the Holiday Inn and Holiday Inn Express brands, complete with quality assurance upgrade plans, new amenities, new signage and the removal of hundreds of thousands of unsatisfactory rooms, were announced at the 2007 brand conference. This year, as the relaunch presses on, leaders announced several new initiatives: a venture into the IHG timeshare market, new leadership and a lofty goal to raise room rates and move Holiday Inn into a new competitive set. IHG opened its 2008 conference as any other, with CEO Andy Cosslett delivering the ﬁrst general session speech about the hotel company’s recent successes and future plans. But this year, the familiar face that normally would follow Cosslett was missed—Stevan Porter, president of the Americas, died in early September. See Holiday Inn | page 68 http://www.HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.HotelMotel.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - November 3, 2008

Hotel & Motel Management - November 3, 2008 Contents The Rate Debate Accor Defines Motel 6 Prototype Rollout Holiday Inn Eyes Upscale, Timeshare Perspective Economy Sets Tone at The Lodging Conference Mellow Vibe Meets Bold Design at HD Boutique Expo IH/M&RS to Focus on Going Green Legally Speaking Sales Clinic On Finance Travel Trends Cornell Insights Franchise Law HotelWorld Update Trends & Stats Energy Star Update Energy Star Update An Industry Connected People on The Move Annual GM Survey Point-of-Sale Systems IH/M&RS Product Preview Outdoor Lighting Refrigeration Marketplace Ad/Editorial Index Classifieds Checking Out

Hotel & Motel Management - November 3, 2008

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