Rebecca Jones, RD Jones & Associates; Jordan Pilzner, Northwest Carpets; Randy Coker, Northwest Carpets; Leslie Temples, L. Temples & Co.; Robert Brown, RBF/Beverly Furniture

Back to Basics

by Michael Schneider Email this blog to a colleague

T he theme of the 15th Annual Phoenix Lodging Conference was “getting back to basics." It seemed fitting, as hoteliers struggle with maintaining optimism without being unrealistic.

In the kickoff general session, the top dogs from Vantage Hospitality Group, FelCor Lodging, Auberge Resorts, Best Western and Fairmont all agreed that the pulse of the industry was improving, but still challenging. Some even likened the situation to a daily street fight.

In the stark face of adversity some advice and questions were offered:
"Down cycles present opportunities. How will you get back in the game?"
"These are the times to be super creative. How can we do things better?"
"History dictates the future."
"Strength is in numbers, who will lead the pack?"

The overall consensus was that even though construction costs are low, it is tough to build new hotels because the lending is not there and neither is the increase in room rates. However, a bright spot is most certainly in renovations and global opportunities. Fairmont said that 80 percent of its proposed pipeline will be international.

Some ongoing themes continued such as not succumbing to price pressure because rate increases will be hard to come by in the future. Speakers also explained that luxury hotel properties are taking the biggest hits but are still viable as long as they provide the same value customers expect while simultaneously cutting costs.

Being the publisher of boutique DESIGN, I was particularly interested in the comments on the boutique/lifestyle segment. One of the observations from the panel was the decreasing trend of "I don’t belong," making people feel like "outsiders" as a means of creating an exclusive allure in boutique hotels. This device is now dead as properties have begun to welcome all travelers with open arms.

"[When it comes to design] hotels are finally getting it," said Rob Haiman, Senior VP of Development for Remington Hotels. "There is a tradition of innovation when it comes to boutique or lifestyle brands."

All the panelists agreed that boutique/lifestyle properties have the highest rate of return for investors (with exception to extended stay hotels) because development costs are less, ability to get financing is easier and they are less costly to build and operate. They went on to say that these kinds of properties also make a point to get to know the customer on a more personal level.

It was also interesting to note what boutique/lifestyle means to different brands. Janis Cannon, VP Global Brand Management with InterContinental’s Indigo brand doesn’t believe a boutique has to be new - Cannon says it’s solely about a "sense of place." This is in line with the company's 40 percent new property, 40 percent conversion and 20 percent adaptive reuse projections.

David Pepper on the other hand, Senior VP, Franchise Development President, Upscale and Extended Stay Brands Choice Hotels International, believes that a boutique/lifestyle is all about being new.

(Speaking of David and that long title, how the heck does he fit that on his business card?)

While the conference was half the size of last year, opportunities and optimism abounded. People are still eager to support the industry and look forward to a brighter future.