Courtyard turns 25, unveils new lobby

The Courtyard by Marriott brand celebrated its 25th anniversary with the grand opening of its first new-build property to boast the redefined lobby. The Courtyard Newport News (Va.) Airport hotel, which is owned and operated by LTD Management Co. of Chesapeake, Va., is the first of a dozen that will have the new lobby this year. In 2009, 150-175 new-builds or renovations will showcase the new lobby design in whole or in part. The Newport News property also is the first Courtyard to feature the new exterior look and the refreshed guestroom design. Click here for video.


Dilip Desai, senior managing partner for LTD Management Co., says his company wanted to be the first new-build to roll out the lobby redesign. In fact, the hotel was already under construction when he saw the full-scale model, but he was so impressed with the plans that LTD worked with the architect, Jonathan Nehmer + Associates, to make the changes.

The design of the lobby is centered on a concept Marriott has been working on for several of its brands in the past couple of years—a lobby where guests can get out of their rooms to gather with colleagues or enjoy “public privacy.” This means a lot of different seating configurations, all of which are “laptop friendly,” according to Brian King, VP, global brand manager for Courtyard by Marriott. Instead of guests meeting by the elevator to go out to dinner, they can meet at the lobby bar and have a drink first. And that lobby bar becomes a coffee bar in the morning.

One of the centerpieces of the lobby is the GoBoard (similar to Microsoft Surface in Sheraton Hotels & Resorts), a 52-inch LCD touch screen with local information, maps, weather and news headlines. Guests can navigate using the touch screen to find a restaurant and then get directions.

Guests without a laptop have plenty of options. A business library features three computer terminals with a free printer and three separate computer stations for printing boarding passes. There also are books for guests to borrow. High-definition TVs are everywhere you look with several large screens in communal seating areas and smaller TVs with remote controls in booths. King joked that a remote is all it takes to make people happy. The “courtyard” area—in this case a patio—has cushy seating circling fire pits.


A new F&B concept replaces the Courtyard buffet with more made-to-order and ready-made options and puts F&B “in the center,” King says. “Food sends a signal about gathering, sharing, shedding the day,” King says.



This has a similar feel to Hyatt Place, where you can get something hot to eat in the lobby and work on your laptop or watch a little TV before heading to your room for the night—but the Courtyard lobby seems a lot roomier. Starwood's aloft brand also is focusing on its large lobbies with lots of seating configurations, a bar, a pool table, board games and a DJ that spins on certain nights. These options—especially for business travelers—give guests a reason to venture out of their rooms and interact, or at least feel less lonely. And that’s exactly the point. As it says on the Courtyard keycard: “The lock on your room is not meant to keep you in there.”

Marriott is betting on this redesign to increase guest satisfaction and, in terms of revenue, make the lobby do a little more to earn its keep. The company spent $2 million on research that said guests want this, and several other brands also are embracing the lobby. Will guests do likewise? Let us know what you think.

Lexus Hybrid Living Suites Q & A

Fairmont Hotels & Resorts teamed up with Lexus this summer to offer a package called the Lexus Hybrid Living Suites at two of its hotels. Guests staying in this suite will get the keys to a Lexus LS 600h L during their stay. It's an interesting partnership that could benefit both companies. Fairmont Washington, D.C., GM George Terpilowski definitely sees the deal's upside.

Q. Where did this Lexus Hybrid Suite idea come from?
A. Lexus approached Fairmont because both companies have a proven track record of leadership in terms of environmental stewardship. We share a commitment to a sustainable lifestyle and responsible operations but also to providing luxury experiences for our guests and customers. For both companies, this partnership allows us to offer new, stylish experiences that are unique tour our brands.

Q. Have you had a partnership like this before?
A.We have not had such a comprehensive partnership that reaches so many guest touch points - from in-room and in-hotel guest stays, to direct marketing vehicles as well as events where attendees experience the brands, the partnership yields rich opportunities to showcase the brands to a wide audience.

Q. How exactly is the deal with Lexus set up?
A. The partnership evolved quite naturally. We both saw an opportunity to leverage programs that we were working on independently that were an excellent fit.

Lexus' Hybrid Living initiative, a series of events and a web portal that showcases luxury products made with sustainability top-of-mind, is helping to define and inspire a new eco-luxury lifestyle by featuring furniture, fashion, art, food, architectural structures and other products that are kinder to the environment. The Lexus Hybrid Living program brings together like-minded individuals and companies, such as Fairmont.

Also, we were working on our own "signature suites," a collection of themed suites that provide a guest experience that goes beyond the room. These specialty suites are designed to reflect the destination through their décor, amenities and often activities in conjunction with local partners.

Fairmont was interested in partnering with a US luxury automotive partner. Fairmont has had a lot of success increasing brand awareness and loyalty by offering its guests access to exclusive offers and enhanced service offerings through its partnerships such as Saks Fifth Avenue and EMI Music. Lexus undoubtedly had a lot to offer Fairmont guests - who also share its commitment to living well with a conscience.

Q. Are there any rules for guests that drive the car? What are they?
A. Yes, they are clearly stated in the waiver forms provided to each guest.

Q. How is the insurance handled?
A. Fairmont and Lexus have worked this out as part of the overall corporate partnership, which also involves 16 Transportation cars.

Q. Does it cost you extra, is it something the driver signs off on, is it something Lexus deals with?
A. No. This is part of the Lexus/Fairmont corporate partnership agreement.

Q. Was there any concern about these safety issues before implementing this amenity?
A. Yes. However, Lexus has had years of experience with these programs and has provided an important safety and liability framework for Fairmont.

Q. Why is this something guests will want?
A. The typical guest who would be interested in the Lexus Hybrid Living Suite at The Fairmont Washington, D.C., is one who knows that you do not have to forgo style and comfort while making eco-friendly choices. They would also share a commitment to environmental stewardship.

The well-educated consumer is very savvy about what companies are doing. In turn, I think businesses are certainly consciously marketing their "green" attributes. The reality is it's a hot topic right now, but from our perspective…it's been something we've been committed to for over 17 years. Regardless of trends, commitment to the environment is really part of our company DNA

Q. What is the gas situation? If the guests drive it a lot, are they to inform you that they need to fill up, or is it up to the guest?
A. This is our responsibility. We check the car daily, and make sure it has gas.

Q. When does this service end?
A. The Lexus Hybrid Living Suite will be part of The Fairmont Washington, D.C. indefinitely. All packages are good through the end of the year, and then they are reviewed for revisions and updates for the following year.

Down but not out

Lodging Econometrics today released its anticipated Q3 2008 report on the U.S. hotel industry. The picture isn't pretty. It basically confirms what most of us have expected: hotel construction projects are down and scheduled starts are taking a nosedive. The report details the impact the lending crisis and the softening economy is having on developer sentiment, transaction volume and selling prices.

Among the report's highlights:

• The total construction pipeline for the U.S. stood at 5,652 projects/740,272 guestrooms as of the end of Q3. Pipeline counts are down, quarter-over-quarter, 4 percent and 6 percent, respectively.
• Declines were modest in the "under construction" and "early planning" stages. Declines were significant in the "scheduled starts in the next 12 months". A number of projects actually migrated backwards into "early planning".
• Construction starts in Q3 were down for the second quarter in a row, while cancellations and postponements of projects already in the pipeline increased for the third consecutive quarter.

However, all isn't doom and gloom. The report finds that leading hotel companies and brands in the U.S. have strong development pipelines. Including both new construction and conversions, Marriott, Hilton and InterContinental each have pipelines in excess of 100,000 rooms. Keep your fingers crossed they remain committed to these projects.

Russia shows promise amongst the financial angst

The Russian hotel market will not escape the current global economic crisis unharmed, but panelists here at the Russia & CIS Hotel Investment Conference felt that is was better positioned than other areas of the world.

Dr. Daniel Thorniley, SVP, The Economist Group, right, warned attendees about 2009.

“It unfortunately, is going to be the worst business and economic year globally in the last 10 years, and perhaps the last 25, and perhaps the last 50. That very much depends on inter-bank lending. … I think the best case [gross domestic product] for Russia in 2009 will be about 5.5 percent [growth], the mid-case might be about 5 percent, and the worst case—depending on the world—might be just over 4 percent.”

Thorniley said that a 4 percent GDP growth would be painful for Russia, but hoteliers needed to realize that China’s growth will plummet from 10 percent to perhaps 7.5 percent, and even those numbers will be 5 to 10 times what Western Europe and the U.S. will see. He said that the U.S.’s mid-case is zero growth, its worst case is -1 or -2 percent growth and the U.K. is looking at a very tough next 12-18 months.

Arthur de Haast, global CEO, Jones Lang LaSalle Hotels, noted that hotel transactions through September 2008 are down 70 percent from 2007, and what had been a slow and moribund market has died. But he said that 2008 will still be better than in the wake of 9/11 and the 1997 Asian economic crisis.

“We have experienced periods like this before, and we will see improvement going forth,” said de Haast.

Thorniley feels that the next 18 months in Russia will be tough, but there is a silver lining of schadenfreude.

“However tough business will be in Russia and Central Europe over the next 18 months, you can always be happier that somebody doing business in Germany or France or Spain or Japan or America or Latin America will be doing much worse,” said Thorniley.

Best Western gets aloha spirit

Even with the global economy facing historic challenges and consumer confidence taking a wipeout, “Best Western will continue to grow and prosper,” Dave Francis, chairman of the board for Best Western International, assured the 2,500 attendees at the 2008 convention at the Hawaii Convention Center in Honolulu. “Why? Because we are the owners of this company.”

With that comes responsibility for the guest impressions of over 400,000 guests every night, Francis said. He encouraged members to participate in the company’s direction by voting and attending regional meetings.

The soothing Hawaiian trade winds helped take some of the edge off, but talk during breaks kept returning to holding rates steady, especially with neighboring hotels higher on the chain scale dropping theirs.

“Learn from the past,” said David Kong, president and CEO (pictured with convention attendees during a break). “The worst thing to do is panic and cut rates.”

In the past 30 years, occupancy declined 16 times, ADR declined twice and RevPAR declined only three times, Kong said, and discounting rates indiscriminately likely will cause a RevPAR drop. “Yield management is more important than ever.”

While many hotel companies are focusing on product, BWI will focus on customer service, Kong said. The national advertising campaign features the members as what makes the hotels special.

Dorothy Dowling, senior VP of marketing and sales, told attendees to not just ride the waves of change but to rock them. She said steps to face the economic headwinds will include new approaches for more leisure and corporate wins, which includes the launch of Best Western Business Plus, and loyalty program improvement, including a new name: Best Western Rewards (formerly Gold Crown Club International). The company also is spending a whopping $43 million on advertising, a move Kong called contrarian.

Ron Pohl, VP of brand quality and member services, talked about short-term initiatives that will move BW to its long-term goal of becoming the preferred brand in its tier. Improving the breakfast presentation, more training for guest satisfaction and green initiatives are on the list.

Congrats on a solid career choice

Lucky for you, you're in the right industry.

According to a featured article on Yahoo! Education, hotel management is one of the six categories of jobs with the best perks, along with marketing managers, network administrators, pharmaceutical sales reps, broadcast or sound technician and aircraft mechanic.

Why?

"If you work for a major hotel chain, expect complimentary or deeply reduced prices for lodging and tourism excursions for you and your family-and not just at the properties you represent. Job prospects are good, too, with business travel and vacationing remaining strong despite rising fuel costs and economic stagnation."

In our upcoming Nov. 3 issue, we offer H&MM's fourth annual general managers' survey, which highlights concerns, benefits and myriad other aspects of being in management. Pick up your copy in a couple of weeks—it's got plenty of interesting information, and it also let's you see how you, your wages and your vacation time stack up.
Anyway, kudos to you all for picking a solid—and perk-full—career. We trade journalists are awaiting our day.

The fine line between the hotel industry and college football

While researching my article for our "An Industry Connected" package about the Internet's role in the hotel industry (coming in the Nov. 3 issue of Hotel & Motel Management), I wanted to learn more about the relationships between hotel companies and third-party booking sites, and from what I gather, it is very similar to college football.

You see, I'm a big Ohio State football fan. I live and die with every Buckeyes game. And everyone knows our biggest rival is the Michigan Wolverines—some would say it's the biggest rivalry in sports. They don't like us; we don't like them. But the business of college football changes the dynamic of the rivalry, at least from my perspective, and draws an interesting parallel to the role online travel agents play in a hotel's online strategy.

College football success lies largely in your team's competition. If the other Big Ten (Ohio State's conference) teams lose constantly and are considered weak by the media and by fans, then Ohio State, regardless of the team's quality, is then considered weak and none of our conference wins are viewed as impressive. In other words, Ohio State needs Michigan, its fiercest and closest competition, to succeed. That's why, other than when the Wolverines play against the Buckeyes, I root for the Wolverines to win. It's in my team's best interests in the long run.

This also seems to be the relationship hotel companies have with sites like Expedia, Orbitz or Priceline.

"Initially we looked at them as competition, especially after 9/11 because rates plummeted, but now it's more of a partnership because guests will book there and we need to be there," said Karmela Gaffney, managing director of advertising and e-commerce at Best Western. "We’d much rather have them book at Best Western than say a competitor. In some respects it’s a partnership. It’s a friendlier rivalry."

"Competition or partners? Yes," said George Corbin, VP of e-commerce at Marriott International. "There's a vital role to be played with [online travel agents] ... we want to be on the shelf wherever our customers shop. They can provide us with need-time business we wouldn't normally get and access to markets [we wouldn't normally have]."

"Initially, they were [competition]. People feared them taking away from their bookings, but they are our partners, and intricate to this whole online booking medium," said Isaac Gerstenzang, director of e-commerce for Destination Hotels. "You need to develop partnerships with them. It's just another extension of your hotel. Expedia has their loyal guests and if someone goes there every time, I want them to still come to my hotel. I would prefer if they came here, but Expedia and Travelocity have created a huge brand awareness for themselves."

Ultimately, a hotel wants guests to book through its site. That's why these hotels are pumping more money and time into their websites and online research. They want guests to think of them when booking a trip. They want guests to trust their site and their brand above all else. But true success comes from working with OTAs. These third-party sites book a ton of trips, and being partners with them, and becoming visible on another channel, furthers a hotel's business.

It's like rooting for Penn State to be undefeated UNTIL this coming Saturday—it's just good business.

(Go Bucks!)