Hotel & Motel Management - November 19, 2007 - (Page 4)

4 News H&MM November 19, 2007 | HotelMotel.com Torrid sales pace persists By Jeff Higley EDITORIAL DIRECTOR 2007 sales statistics through August Type of Service Data Economy Number of properties Sum of selling price Average number of rooms Average price/room Luxury Number of properties Sum of selling price Average number of rooms Average price/room Total 99 $674,841,146 128 $55,298 17 $1,868,370,416 177 $413,909 58 $409,517,988 160 $46,019 50 $677,651,042 129 $79,132 107 $8,184,753,632 381 $191,216 111 $2,669,979,463 177 $134,120 442 $14,485,113,687 208 $119,267 Hilton Hotels Corp. and The Blackstone Group on Oct. 24 completed the merger of Hilton with an afﬁliate of The Blackstone Group’s real-estate and corporate private equity funds. Holders of Hilton common stock will receive $47.50 in cash without interest for each share. The U.S. lodging industry posted pretax proﬁts of $26.6 billion in 2006, up from $22.6 billion in 2005, according to the American Hotel & Lodging Assn.’s Lodging Industry Proﬁle report for 2006. The industry grossed $133.4 billion in total sales in 2006, compared with $122.7 billion in 2005. The AH&LA attributed this increase partly to the industry’s ability to raise room rates because of increases in demand from travelers. Business travel spending will continue to increase in 2008, according to the latest survey by the Association of Corporate Travel Executives. Respondents said travel budgets increased 8 percent in 2007, and 58 percent of respondents said their travel budgets would increase again in 2008. The survey also showed that most respondents reported online booking provided savings on travel costs. The Travel Business Roundtable, Travel Industry Association and Discover America Partnership will merge to form a single organization in 2009. The yet-unnamed combined group will focus on government relations, public policy research and public affairs. For updated breaking news, visit www.HotelMotel.com. PHOENIX–Members of Hotel Brokers International are expected to post record hotel sales in 2007, and the group’s president said during The Lodging Conference in September that he anticipates another record year in 2008. “We’re seeing plenty of activity, even with the temporary setback because of the subprime lending crisis,” said Charlie Fritsch, president of HBI and president of MBA Hotel Brokers. “There is a lot of interest in the hotel industry because of the success stories of the past couple years. The industry’s fundamentals are strong, and that’s convincing both existing owners and newcomers to the industry that there’s more upside left.” Fritsch said that HBI has analyzed all published sales in the U.S. and concluded that hotel sales in the country, excluding acquisitions of corporations, will increase 8 percent in 2007. He said the number of sales for HBI members through August were up 10.3 percent from 2006. Through August, 442 deals were closed in the U.S., according to HBI’s analysis of published sales. The average hotel sold had 208 guestrooms, and the average price per room was $119,267. Hotels in the upscale and upper-upscale segments led See HBI sales | page 40 Boykin takes steps to regain foothold By Jeff Higley EDITORIAL DIRECTOR Midscale w/ F&B Number of properties Sum of selling price Average number of rooms Average price/room Midscale w/o F&B Number of properties Sum of selling price Average number of rooms Average price/room UpperUpscale Number of properties Sum of selling price Average number of rooms Average price/room Number of properties Sum of selling price Average number of rooms Average price/room Upscale Total number of properties Total sum of selling price Total average number of rooms Total average of price/room Source: Hotel Brokers International PHOENIX–About a year after Boykin Lodging Co.’s sale to Braveheart Holdings LP, executives of Boykin Management Co. remain on a mission to inform the hotel industry that the company is alive and well. While Boykin Lodging, a publicly traded real-estate investment trust, no longer exists after the $416-million sale to Braveheart, Boykin Management is looking for growth. Boykin Management, which has been in business since 1958, managed the hotels in the Boykin REIT. It now has 10 hotels in its portfolio, including The Ellis, a boutique hotel that recently opened in Atlanta. “We are still open for business and we want people to understand that,” said Joe Smith, the company’s president. “We’re looking for more opportunities to grow.” The company has changed its logo but not its name. Smith said there is no intention to do that. “If we had to do it all over again, we probably would have never lent our name to the REIT,” Smith said. “The Boykin name is well thought-of in the industry. I wouldn’t change it—I wouldn’t even think about it.” Among Boykin’s properties are the Sanderling Resort & Spa on North Carolina’s Outer Banks, the Pink Shell Resort in Fort Myers Beach, Fla.; Banana Bay in Marathon Key, Fla.; the Hilton Austin (Texas); and the Hilton Scranton (Pa.). It also has its ﬁrst-ever presence in New York—a Doubletree property near John F. Kennedy Airport that it opened as part of a joint venture with Amaya Hospitality. See Boykin | page 40 Best Western sets 10-year plan 2008 goals address standards, quality management, membership By Stephanie Ricca MANAGING EDITOR MONTREAL–Best Western International is prepared to launch an aggressive 10-year plan in 2008 to increase occupancy and average daily rate across its portfolio. David Kong, BWI president and c.e.o., shared the company’s plans to meet these goals at BWI’s North American Convention, held here Oct. 14-17. “Our objective is to create a 10-year roadmap,” he David Kong announced Best Western’s roadmap at the BWI North American Convention. See Best Western | page 38 BEST WESTERN INTERNATIONAL said. The company hired the Boston Consulting Group in 2006 to develop suggestions, which BWI reviewed ﬁrst at its spring meeting. With the plan as a driving force, Kong and other BWI executives outlined several steps the brand will take to build awareness among consumers and business for its members. “Best Western exists to serve its members,” Kong http://HotelMotel.com http://www.HotelMotel.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - November 19, 2007

Hotel & Motel Management - November 19, 2007 Contents Torrid Hotel Sales Pace Persists Boykin Takes Steps to Regain Foothold Best Western Sets 10-year Plan Perspective At Your Risk HotelWorld Update Sales Clinic Events Trends & Stats Charting H&MM's Top Lodging Design Firms Fitness Equipment Supplier News PMS Software Provides One-Click Solutions High-Quality Linens Require Higher-Quality Cleaning Despite Slow Market, Condo Hotels Thrive Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - November 19, 2007

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