Hotel & Motel Management - March 2009 - (Page 24) H&MM March 2009 | HotelWorldNetwork.com 24 Special Report TOP MANAGEMENT COMPANIES “We haven’t seen any drop in the expectation level of our customers.” TOM CONRAN, RICHFIELD HOSPITALITY By Jason Q. Freed SENIOR EDITOR Balancing act Management companies struggle to cut costs while keeping guest satisfaction up M AH&LA At ALIS, Andrew Cosslett [left], CEO of InterContinental Hotels Group, and Gerald Lawless, CEO of Jumeirah Group, said some brands have relaxed standards to assist owners and operators in cutting costs. anagement companies are in a pickle. With a down economy leading to rapidly decreasing occupancy rates, most are forced to implement cost-cutting measures. Some brands are doing their part by relaxing brand standards and reducing centralized fees to ease the pain. Other noticeable changes have come in tighter employee schedules and cutting back on in-room amenities. But those same brands are still expecting guest satisfaction scores to remain the same. And although prices are falling, guest expectations are not. “You should certainly implement all the cost-saving strategies you can, but it has to have a better implication on guest service,” said Tom Conran, VP of business development for Richfield Hospitality. “We haven’t seen any drop in the expectation level of our customers. Whether they’ve went online and received a cheaper rate somewhere, their expectation level hasn’t gone down.” So, the challenge to management companies is to make cutbacks that the employees and guests don’t see. Lara Latture, EVP at The Hotel Group, said initial cuts shouldn’t hurt service because a smaller staff can handle less demand. “The initial cuts are based on bookings, so hopefully no one is feeling that,” she said. “There are really small things that can be done, such as picking up trays on an every-other route basis.” Cutting back Most management companies report payroll being their biggest expense, so tightening that department may be one of the first areas where costs could be cut. And it can be done without wholesale layoffs. Hours are reduced and hiring temporary or seasonal help is forgone, but most aim to trim the fat where it will have the least effect. “As the operations get a little leaner, we really do bring a tighter focus on a full team effort,” said Jon Peck, SVP of operations at White Lodging, who reported seeing simultaneous cost savings and increased guest satisfaction scores. See Cut costs | page 32 Promises honored. Superior results delivered. F O R M E R L Y M A R S H A L L M A N A G E M E N T, I N C . PROVIDING PROFITABLE SOLUTIONS FOR Doubletree Tampa Westshore Airport TODAY’S OWNERS, ASSET MANAGERS AND LENDERS • • Full Service Management Contracts Experience in Multiple Franchises and Varied Markets Construction and Renovation Revenue Management Equity Investments NEW Partnership Services for Accounting, Sales and Operations Flexible Fees and Incentive Based Fees Amalfi Hotel Chicago Embassy Suites LaQuinta • • • • Meet a global leader in hospitality management. Hostmark Hospitality Group is one of the hospitality industry’s largest independent management companies. Hostmark’s broad experience across a multitude of property types and markets has allowed the company to continue to succeed for almost four decades. to bottom, and everywhere in between. • Jerome Cataldo Executive Vice President Development jcataldo@hostmark.com (847) 517-9100 www.hostmark.com C O N TA C T: Scott McMahon VICE PRESIDENT OF DEVELOPMENT Management • Development • Transaction Support • Sales • Marketing • Information Technology Revenue • Human Resources • Food & Beverage • Purchasing • Finance • Renovations • Design 410-749-8464 smcmahon@marshallhotels.com www.marshallhotels.com CIRCLE NO. 130 CIRCLE NO. 115 http://www.HotelWorldNetwork.com http://www.marshallhotels.com http://www.hostmark.com http://www.hostmark.com http://www.marshallhotels.com
Table of Contents Feed for the Digital Edition of Hotel & Motel Management - March 2009 Hotel & Motel Management - March 2009 Contents News Perspective Green Focus Legally Speaking Franchise Law Sales Clinic Legal FAQ Trends & Stats Timeshare On Finance Management Companies Stuggle to Cut Costs While Keeping Guest Satisfaction Up Top Third-Party Management Companies Chart Hot Products Technology Marketplace Ad/Editorial Index Checking Out Hotel & Motel Management - March 2009 Hotel & Motel Management - March 2009 - Hotel & Motel Management - March 2009 (Page Cover1) Hotel & Motel Management - March 2009 - Hotel & Motel Management - March 2009 (Page Cover2) Hotel & Motel Management - March 2009 - Contents (Page 3) Hotel & Motel Management - March 2009 - News (Page 4) Hotel & Motel Management - March 2009 - News (Page 5) Hotel & Motel Management - March 2009 - Perspective (Page 6) Hotel & Motel Management - March 2009 - Perspective (Page 7) Hotel & Motel Management - March 2009 - Green Focus (Page 8) Hotel & Motel Management - March 2009 - Green Focus (Page 9) Hotel & Motel Management - March 2009 - Legally Speaking (Page 10) Hotel & Motel Management - March 2009 - Legally Speaking (Page 11) Hotel & Motel Management - March 2009 - Franchise Law (Page 12) Hotel & Motel Management - March 2009 - Franchise Law (Page 13) Hotel & Motel Management - March 2009 - Sales Clinic (Page 14) Hotel & Motel Management - March 2009 - Sales Clinic (Page 15) Hotel & Motel Management - March 2009 - Legal FAQ (Page 16) Hotel & Motel Management - March 2009 - Legal FAQ (Page 17) Hotel & Motel Management - March 2009 - Trends & Stats (Page 18) Hotel & Motel Management - March 2009 - Trends & Stats (Page 19) Hotel & Motel Management - March 2009 - Timeshare (Page 20) Hotel & Motel Management - March 2009 - Timeshare (Page 21) Hotel & Motel Management - March 2009 - On Finance (Page 22) Hotel & Motel Management - March 2009 - On Finance (Page 23) Hotel & Motel Management - March 2009 - Management Companies Stuggle to Cut Costs While Keeping Guest Satisfaction Up (Page 24) Hotel & Motel Management - March 2009 - Management Companies Stuggle to Cut Costs While Keeping Guest Satisfaction Up (Page 25) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 26) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 27) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 28) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 29) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 30) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 31) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 32) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 33) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 34) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 35) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 36) Hotel & Motel Management - March 2009 - Hot Products (Page 37) Hotel & Motel Management - March 2009 - Technology (Page 38) Hotel & Motel Management - March 2009 - Technology (Page 39) Hotel & Motel Management - March 2009 - Technology (Page 40) Hotel & Motel Management - March 2009 - Technology (Page 41) Hotel & Motel Management - March 2009 - Technology (Page 42) Hotel & Motel Management - March 2009 - Technology (Page 43) Hotel & Motel Management - March 2009 - Marketplace (Page 44) Hotel & Motel Management - March 2009 - Marketplace (Page 45) Hotel & Motel Management - March 2009 - Marketplace (Page 46) Hotel & Motel Management - March 2009 - Marketplace (Page 47) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 48) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 49) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 50) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 51) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 52) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 53) Hotel & Motel Management - March 2009 - Checking Out (Page 54) Hotel & Motel Management - March 2009 - Checking Out (Page Cover3) Hotel & Motel Management - March 2009 - Checking Out (Page Cover4)
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