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Archicon’s Paul Sarantes provides on-sight insights from this annual event.

By Paul Sarantes

Paul Sarantes, a partner with Phoenix-based Archicon Architects and Interiors LC, attended the 17th annual Lodging Conference at the Arizona Biltmore in Phoenix. Below are some of his selected observations from that event.

Day 1: General Session
The conference kicked off with opening remarks by Morris Lasky, board chairman of the Lodging Opportunities Group, and Harry Javer, president of The Conference Bureau. At that session, it was agreed that many of the macro economic “speed bumps” impacting the hotel business have continued to decline, and the industry is experiencing an uptick in reservations and conferencing bookings. It was also noted that lots of private equity is making its way into the hotel business, and that the operators of such funds need educating about the intricacies of operating in the hospitality field.

Next, I attended a breakout session entitled “Hotel Owners Check-In.” That session was moderated by Ed Watkins, editor of Lodging Hospitality, magazine, and included the following panelists:
*CA Anderson, president, The Dow Hotel Co.
*Dave Johnson, president, Aimbridge Hospitality
*Paul Kirwin, president, Northcott Hospitality and AmericInn
*Mark Laport, president, Concord Hospitality Enterprises Co.
*Lou Plasencia, chairman and ceo, The Plasencia Group Inc.

At this session, it was noted that hotel management companies are still digging out of the hole of 2008-2009. Many have had to sell assets and narrow their portfolios. Hospitality owners currently have about 2 percent cash reserves for major changes and repairs to their properties. Still, foreign investors continue to come to the U.S. to buy hotels. Much of that investment activity is taking place on the outskirts of the country’s major cities, where supply and demand for hotels are increasing.

Hospitality owners are also up against the requirement by many major brands that they update their properties, even though many hoteliers are currently having difficulty making a profit. The panel concluded owners and brands need to “meet in the middle” when it comes to making upgrades in today’s still-challenging economic environment.

Day 2

The highlight of the conference’s second day was a session entitled “Boutique & Lifestyle Hotels- Still Hot and Getting Hotter.” That panel was moderated by Frances Kiradjian, founder of the Boutique & Lifestyle Lodging Association, and included these participants:
* Ellen Brown, executive vice president, acquisitions and development, Denihan Hospitality Group
* Michael Depatie, ceo, Kimpton Hotels and Restaurants
* Gordon Sondland, ceo, Provenance Hotels
* Christopher Tompkins, corporate vice president, branding and marketing, B Hotels & Resorts
* Lindsey Ueberroth, president, Preferred Hotel Group

This session kicked off with a discussion about defining/describing boutique and lifestyle hotels. It was generally agreed that such locales offer a distinct personality, humorous touches, are fashionable and offer a sense of “coolness.”

Overall, most guests at boutique and lifestyle hotels are looking for diversity, a new experience. For the Provenance hotels, for example, that translates into an emphasis on authenticity, with architecture and interior designs that create a story for the guest. An emphasis on local culture is of extreme importance to any boutique/lifestyle property.

One way boutique brands can really stand out is by offering unique food and beverage services. F&B is a major component to putting a hotel “on the map,” and its characteristics and theme typically follow the hotel’s style and location. In some hotels, the design of the lobby is incorporated into the bar area and restaurant in a style that is like the “great rooms” found in elegant homes. Such venues give guests an opportunity to “see and be seen,” as well.

The panel also noted that these days, social media are playing a growing role in the personalities and marketing of boutique hotels, giving such properties new and unique ways to connect with their customers—and also offering new ways of rewarding them. Boutique hotels have the capability to look at blogs and social media to see what their customers are saying, and to respond to that input on a personal level.

For all their strengths, boutique and lifestyle hotels have to deal with today’s uncertain financial times. That means many such properties are making small, targeted changes to stay fresh. Ownership groups within this sector typically have more flexibility to make such changes than the major brands.