Today's Hotelier - October 2016 - 44

Living legends: Wisdom from industry trailblazers M I t's a measure of just how important Ian Schrager is in the world of hospitality that the CEO of Marriott would say the company needed "his permission" to open a new boutique hotel brand. As the chairman and chief executive of the Ian Schrager Company, a hotel and real estate developer, he has had a long and varied career. It included founding the legendary night club Studio 54 and later the Morgans Hotel Group. These hotels - Morgans, the Royalton Hotel, the Paramount Hotel and the Hudson Hotel - delivered a high level of boutique luxury and solidified Schrager's reputation as a true hotel innovator. Schrager left the Morgans Hotel Group in 2005 to establish a hotel and real estate development firm. Schrager is often credited with pioneering and developing the boutique hotel concept. More recently he partnered with Marriott International to launch Edition and the mid-priced chain Public. Public debuted in Chicago, while Edition launched in Istanbul and London, and is being rolled out worldwide. His Public hotels are designed to appeal to millennials, as well as Gen X and Y, who care less about traditional luxury than form, function and value. Edition is more luxury focused with bigger rooms than some of the earlier boutique efforts. The hotel market these days is strong and getting stronger. Yet, he is a developer who perhaps worries a little less about what the economy will be like when he opens. The most important factor is the product, not the market. "I never do a project based upon the market," said Schrager in a New York Times interview. "I don't time the market. The best way to deal with the vagaries of an economic cycle is to have a very distinctive and unique product." The alliance with Marriott has allowed him to take a new direction in the hotel industry and go big in a way he hasn't been able to do before. 4 4  | OCTOBER 2016 | TODAYSHOTELIER.COM PHOTO: YOUTUBE.COM. uch like Mark Twain, reports of the death of Horst Schulze's remarkable career have been greatly exaggerated. Schulze revolutionized the hotel industry both as president of Ritz Carlton Hotels and then his own company, Capella Hotel Group. He altered the very nature of customer service by creating a culture of "ladies and gentlemen serving ladies and gentlemen." Yet many thought the latest act of his career was going to end badly. In fact, during 2008, Capella Hotel Group had 12 hotels under construction and eight in development, but by March of 2010, that number was down to zero, reported Forbes. At the time, some had written both him and his company off. This year, with 14 hotels open and nine more under development, the Capella Hotel Group has enjoyed a lively recovery during the Great Recession. He is a charismatic leader and entrepreneur with a laser-focused understanding of how to create loyal customers by raising expectations for service and consistently meeting them. "We were inspired by the guest; what does the guest want in a large hotel," said Schulze in an interview with Hotelier Middle East magazine. "The number-one comment from guests was 'friendly, caring people,' so we concentrated more around friendly caring people, which meant that we had to concentrate more on selecting people, we had to concentrate more on training. That was, of course, the secret: not to take it for granted that the staff know everything but to continue training. We really made an effort for continuous alignment to the company thinking, and the company thinking was aligned with the customer thinking." His success is all the more remarkable when you consider his humble beginnings. Growing up in Germany during World War II, just eating and surviving was a challenge. With little to eat, he and his family would go into the forest foraging for nuts and whatever else they could find. "At [age] 11, I insisted on working in the hotel business and nobody knows why," he said in an interview. "The assumption is I knew there must be food in there. At 14 I left school to go to work as a bus boy in a hotel." He quickly realized that those who were excellent in their jobs were recognized and rewarded. He coined the phrase "ladies and gentlemen serving ladies and gentlemen" in an essay he wrote at 15 while in hotel school. It has been his motto ever since. "There are three things every customer wants, and they all want the same thing, and you better have processes and attitudes to provide them," he said during a recent commencement speech. The most important quality that a company needs to earn is customer loyalty. This includes trust in the company and its product. You earn that trust by delivering on three very important factors, he said. These qualities, which must be delivered consistently, include: 1. The product must be defect free. 2. It must be timely. "You want it when you want it." 3. Service must be delivered in a courteous manner. "You want people to be nice to you. That's the piece that loyalty much more than any other." He also noted that customer's form relationships with people not companies. He explained that "you build an opinion based on the relationship with a human being. The caring piece drives satisfaction more than anything else. Service starts the moment they make contact with you - not three seconds later. Any time a customer asks you for something, that's an opportunity to convince them to continue dealing with you." Ladies and gentlemen serving ladies and gentlemen. - Horst Schulze http://www.YOUTUBE.COM http://www.TODAYSHOTELIER.COM

Table of Contents for the Digital Edition of Today's Hotelier - October 2016

Letter From the Chairman
Letter From the President & CEO
News Bytes
AAHOA Spotlight
Best Western’s New Frontier
Government Affairs
The Uneven Playing Field: Hotels & Airbnb
Finding Opportunity in the Old
Development & Renovation
Living Legends: Wisdom From Industry Trailblazers
Finance Q&A
The Latest Tech Tools for Hospitality
Guest Experience
AAHOA Events
AAHOA Founding Members
AAHOA Vendor Partners
Classifieds
Advertiser Index
Today's Hotelier - October 2016 - cover1
Today's Hotelier - October 2016 - cover2
Today's Hotelier - October 2016 - 3
Today's Hotelier - October 2016 - 4
Today's Hotelier - October 2016 - 5
Today's Hotelier - October 2016 - 6
Today's Hotelier - October 2016 - 7
Today's Hotelier - October 2016 - Letter From the Chairman
Today's Hotelier - October 2016 - 9
Today's Hotelier - October 2016 - Letter From the President & CEO
Today's Hotelier - October 2016 - 11
Today's Hotelier - October 2016 - News Bytes
Today's Hotelier - October 2016 - 13
Today's Hotelier - October 2016 - AAHOA Spotlight
Today's Hotelier - October 2016 - 15
Today's Hotelier - October 2016 - 16
Today's Hotelier - October 2016 - 17
Today's Hotelier - October 2016 - Best Western’s New Frontier
Today's Hotelier - October 2016 - 19
Today's Hotelier - October 2016 - 20
Today's Hotelier - October 2016 - 21
Today's Hotelier - October 2016 - 22
Today's Hotelier - October 2016 - 23
Today's Hotelier - October 2016 - Government Affairs
Today's Hotelier - October 2016 - 25
Today's Hotelier - October 2016 - 26
Today's Hotelier - October 2016 - 27
Today's Hotelier - October 2016 - 28
Today's Hotelier - October 2016 - 29
Today's Hotelier - October 2016 - The Uneven Playing Field: Hotels & Airbnb
Today's Hotelier - October 2016 - 31
Today's Hotelier - October 2016 - 32
Today's Hotelier - October 2016 - 33
Today's Hotelier - October 2016 - 34
Today's Hotelier - October 2016 - 35
Today's Hotelier - October 2016 - Development & Renovation
Today's Hotelier - October 2016 - 37
Today's Hotelier - October 2016 - 38
Today's Hotelier - October 2016 - 39
Today's Hotelier - October 2016 - 40
Today's Hotelier - October 2016 - 41
Today's Hotelier - October 2016 - Living Legends: Wisdom From Industry Trailblazers
Today's Hotelier - October 2016 - 43
Today's Hotelier - October 2016 - 44
Today's Hotelier - October 2016 - 45
Today's Hotelier - October 2016 - 46
Today's Hotelier - October 2016 - 47
Today's Hotelier - October 2016 - 48
Today's Hotelier - October 2016 - 49
Today's Hotelier - October 2016 - Finance Q&A
Today's Hotelier - October 2016 - 51
Today's Hotelier - October 2016 - 52
Today's Hotelier - October 2016 - 53
Today's Hotelier - October 2016 - The Latest Tech Tools for Hospitality
Today's Hotelier - October 2016 - 55
Today's Hotelier - October 2016 - 56
Today's Hotelier - October 2016 - 57
Today's Hotelier - October 2016 - Guest Experience
Today's Hotelier - October 2016 - 59
Today's Hotelier - October 2016 - 60
Today's Hotelier - October 2016 - 61
Today's Hotelier - October 2016 - AAHOA Events
Today's Hotelier - October 2016 - 63
Today's Hotelier - October 2016 - AAHOA Founding Members
Today's Hotelier - October 2016 - 65
Today's Hotelier - October 2016 - AAHOA Vendor Partners
Today's Hotelier - October 2016 - 67
Today's Hotelier - October 2016 - 68
Today's Hotelier - October 2016 - 69
Today's Hotelier - October 2016 - 70
Today's Hotelier - October 2016 - 71
Today's Hotelier - October 2016 - 72
Today's Hotelier - October 2016 - 73
Today's Hotelier - October 2016 - 74
Today's Hotelier - October 2016 - 75
Today's Hotelier - October 2016 - 76
Today's Hotelier - October 2016 - Classifieds
Today's Hotelier - October 2016 - 78
Today's Hotelier - October 2016 - 79
Today's Hotelier - October 2016 - 80
Today's Hotelier - October 2016 - 81
Today's Hotelier - October 2016 - 82
Today's Hotelier - October 2016 - 83
Today's Hotelier - October 2016 - 84
Today's Hotelier - October 2016 - 85
Today's Hotelier - October 2016 - Advertiser Index
Today's Hotelier - October 2016 - cover3
Today's Hotelier - October 2016 - cover4
Today's Hotelier - October 2016 - outsert1
Today's Hotelier - October 2016 - outsert2
Today's Hotelier - October 2016 - 91
Today's Hotelier - October 2016 - 92
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