Hotel & Motel Management - November 19, 2007 - (Page 6)

Checking In PERSPECTIVE H&MM November 19, 2007 | HotelMotel.com Blackstone’s choice bold, but not surprising IN THE details Swift move, big change Nassetta to take charge Good for franchisees Holiday Inn’s upgrades By Jeff Higley Editorial Director N o one should be totally surprised by The Blackstone Group’s decision to hire Chris Nassetta as the new president and c.e.o. of Hilton Hotels Corp. Blackstone moved swiftly in making the announcement following the Oct. 24 close of its hefty $26-billion acquisition of Hilton—the largest lodging-speciﬁc deal in history. Within days of closing the deal, Blackstone announced that Nassetta was assuming the helm. While leading Host Hotels and Resorts (formerly Host Marriott), Nassetta earned a reputation for being able to pull the trigger on big deals, navigating the complicated real-estate investment trust waters and overseeing a staunch asset-management philosophy. Those are all important business credentials that Blackstone executives obviously found appealing. Hilton’s franchisees have to be ecstatic that a fellow hotel owner now leads the global company. Nassetta will bring an owner’s mentality to the job during a time when many hotel companies are turning to outside industries for their leaders. It’s refreshing to see a company recognize there are leaders to choose from within the lodging industry. As president and c.e.o. of Host for the past seven years, Nassetta’s learning curve will be slight. Nassetta’s hiring leaves Matt Hart out of a job, and that’s too bad. Hart, who worked hard for the last three years preparing to take over as Hilton’s leader once Steve Bollenbach retired at the end of this year, will remain on the company’s board of directors. However, the timing of his ascent turned out to be wrong as Blackstone immediately made its mark on Hilton. From the day the deal was announced in early July there were whispers that Hart’s future was in doubt. The always-direct, dry-witted Hart played a major role in the smooth transition when Hilton Hotels Corp. acquired Hilton International and helped lay a strong foundation for international growth for its Hampton, Homewood and Garden Inn brands. The hiring of Nassetta is a change of pace for Blackstone. The ﬁrm has acquired many hotel companies during the past decade and this is the ﬁrst time it has made a change in leadership immediately following the deal. Perhaps there were personality clashes, differences in philosophies or simply business relationships that determined the change. Nassetta’s history with Host, which bills itself as the largest owner of luxury and upscale hotels in the world, undoubtedly was a factor. Those are the types of hotels that Nassetta acquired from Starwood Hotels & Resorts Worldwide (for more than $2.4 billion) just before Host dropped the ‘Marriott’ from its name. That is not a coincidence. While all nine of Hilton’s brands have appeal for Blackstone, it’s the Waldorf=Astoria Collection that could be the largest beneﬁciary of the deal. As Blackstone folds many of its LXR Resortsbranded hotels into the WAC portfolio, it will become more clear that the luxury end of the business is what makes Blackstone investors happy. Holiday makeover Another interesting announcement came out of InterContinental Hotels Group’s annual convention in Dallas. The company declared that all 3,125 Holiday Inn and Holiday Inn Express properties will undergo major renovations in service and branding by 2010. Included in the program are new logos and signage for both brands. It’s a step in the comeback of Holiday Inn and a preemptive strike for the successful Holiday Inn Express brand. Holiday Inn has seen its share of strategies during the past 20 years. IHG has booted out many underperforming and obsolete properties, so establishing a clear direction is important. Once considered a brand that had seen better days, Holiday Inn continues to make its way back into the good graces of consumers and developers. Holiday Inn Express has been around for about two decades and needs refreshed to maintain its edge with current customers and to attract new ones. It’s in the competitive midscale-without-food-and-beverage segment—a sector in which keeping up with the Joneses is extremely important to retain customers. jhigley@questex.com 600 Superior Ave. East, Suite 1100, Cleveland, OH 44114 Jeff Higley, EDITORIAL DIRECTOR . . . . . . . . . jhigley@questex.com Ph: (216) 706-3728 | Fax: (216) 706-3711 Stephanie Ricca, MANAGING EDITOR . . . . . . . sricca@questex.com Ph: (216) 706-3791 | Fax: (216) 706-3711 Elaine Simon, SENIOR EDITOR . . . . . . . . . . . . esimon@questex.com Ph: (216) 706-3782 | Fax: (216) 706-3711 Stacey Mieyal Higgins, SENIOR EDITOR . . . . . .shiggins@questex.com Ph: (216) 706-3783 | Fax: (216) 706-3711 Heather Gunter, ASSOCIATE EDITOR . . . . . . . hgunter@questex.com Ph: (216) 706-3792 | Fax: (216) 706-3711 Jason Q. 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Authorization to photocopy items for internal or personal use, or the internal or personal use of speciﬁc clients, is granted by Questex Media Group, Inc. for libraries and other users registered with the Copyright Clearance Center, 222 Rosewood Dr., Danvers, MA 01923; phone: (978) 750-8400; fax (978) 7504470; call for copying beyond that permitted by Sections 107 or 108 of the U.S. Copyright Law. For those not registered with the CCC, send permission request to questexpermissions@reprintbuyer.com; phone: (800) 494-9051 Ext. 100. Hotel & Motel Management does not verify any claims or other information appearing in any of the advertisements contained in the publication, and cannot take any responsibility for any losses or other damages incurred by readers in reliance on such content. Hotel & Motel Management welcomes unsolicited articles, manuscripts, photographs, illustrations and other materials but cannot be held responsible for their safekeeping or return. Questex Media Group, Inc. provides certain customer contact data (such as customers’ names, addresses, phone numbers and e-mail addresses) to third parties who wish to promote relevant products, services and other opportunities which may be of interest to you. If you do not want Questex Media Group to make your contact information available to third parties for marketing purposes, simply call toll-free (866) 344-1315 between the hours of 8:30 a.m. and 5:00 p.m. CT and a customer service representative will assist you in removing your name from Questex Media Group’s lists. Outside the U.S., please phone (615) 377-3322. Jeff Higley Editorial Director jh 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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