Hotel & Motel Management - December 29, 2008 - (Page 12)

Seeing green Continued from page 10 Brachfeld said. “And even then, there’s going to be a small amount of capital loaned out for hospitality projects. None of my projects have been canceled, but every single one of them has been put on hold until 2009. There will be delays not necessarily in getting projects done, but in getting them started.” He added that “in 2009, vendors will be scrambling for business. Part of their operations will require them to get very aggressive in their cost structures. I think in 2009 the cost per key might actually be lower.” “We’ve seen these cycles before,” Benjamin said. “The hotel industry is pretty resilient. People will always travel, whether it’s for life events such as weddings or funerals, business meetings, or high school reunions. “And for hoteliers who have money right now, this is a great time,” Benja“Certain things will continue min added. “Furniture, ﬁxtures to get done. Hotel owners and hoand equipment, transportation tel companies are going to continue and labor costs will be lower. And to make prudent investments in upif you’re renovating, it’s not difﬁgrading their product, their rooms cult to take two ﬂoors out of serand hotels. Because of the tight vice. … You’re not losing room revcredit and soft business, there’s goenue because the revenue might not ing to be a sharper eye on expendibe there if you have a drop in occu- Benjamin tures,” Baker said. pancy. If you have the money, get it BENJAMIN WEST Avendra also is looking at its done now, don’t start the project in suppliers and asking them to bring 2011 or 2012.” ideas to the table. “We’re asking for new “We are seeing already where people are products, new ways of delivering and packlooking to us for help,” Baker said. “We’re aging products,” Baker said. “Typically evhelping clients think about new opportuni- erybody wins because suppliers can pass on ties, look for new ways to maximize proﬁt- cost savings from the efﬁciencies to customability, cost savings, efﬁciencies and new ers as well. ideas in terms of products. We expect to do “I think we’re going to enter a cycle of a lot of value engineering. For example, we partial renovations,” Benjamin said. There might recommend a product that reduc- will be an emphasis on softgoods renovaes operating labor. It may not have been a tion, while hard goods such as wood furniproduct you wanted before, but you may ture may get reﬁnished instead of replaced. See Seeing green | page 17 have fewer guests now, and it is important. http://www.beyerbrown.com http://www.beyerbrown.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - December 29, 2008

Hotel & Management - December 29, 2008 Contents Viewpoint Outlook Purchasing Companies See Green and Save Purchasing Chart Designers Target Lifestyle, Lobbies and LEED Design Chart Construction Chart Construction Outlook Bleak Lending Chart Lenders Tighten Standards in Uncertain Market 2009 Requires Changes Across the Board Brokers Chart Brands Chart Building, Developing a Brand Tight Management Will Be Key in Downturn Management Chart Year of the Turtle: Slow, Steady Will Win Race Owners Chart Consumer Trends

Hotel & Motel Management - December 29, 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.