Franchise Report Ahead of the Curve Double Standard

THE 2016 FRANCHISE REPORT

THE MAGAZINE FOR HOTEL EXECUTIVES/ JANUARY~FEBRUARY 2016 $20

AHEAD OF THE CURVE Capture loyalty with curated content and local recommendations DOUBLE STANDARD The dual-branded model becomes an attractive option DIGITAL DREAMERS Marketing mavens show how to optimize social- media channels Weathering the STORM The Nita Lake Lodge braves the new economic climate by catering to U.S. travellers

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Features

8 LIVING LEGENDS Memories from the 2015 Pinnacle Awards

10 FIT FOR A KING Scan to view Steeped in a 113-year history and with new owners at our website the helm, Toronto’s Omni King Edward Hotel primes itself for a new beginning By Rosanna Caira

THE 2016 FRANCHISE REPORT

13 TRICKS OF THE TRADE New tools and resources can help franchisees maximize value and spur growth, if they know where to look By Jackie Sloat-Spencer

18 FRANCHISE LISTINGS

37 DOUBLING UP As the dual-branded segment heats up, Canadian developers are taking notice of the opportunities afforded by powerful brand combos By Jennifer Febbraro

40 SWEET RETREATS The low dollar is driving tourism to the Canadian resort-and-lodge sector By Denise Deveau

45 STATUS UPDATE Hoteliers are finding new ways to engage their guests Departments using social-media marketing tools By Shane Schick 2 EDITOR’S PAGE 49 THERE’S AN APP FOR THAT 3 CHECKING IN In the ever-evolving world of mobile apps, there’s a 52 HOTELIER: Donica Wilkie- growing opportunity to build customer loyalty Morrow, Home2 Suites by By Amy Bostock Hilton West Edmonton COVER PHOTOGRAPH BY MIKE CRANE

hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 1 EDITOR’S PAGE

BUYING AND SELLING ate last year, in only a matter of weeks, the hotel landscape in ROSANNA CAIRA | EDITOR & PUBLISHER LCanada changed dramatically. [email protected] First, Marriott International, Inc. acquired MARGARET MOORE | ART DIRECTOR Starwood Hotels & Resorts Worldwide, [email protected] Inc. in a blockbuster deal that promises to AMY BOSTOCK | MANAGING EDITOR impact hotels in major cities in this country [email protected] and around the world. This announce- JACKIE SLOAT-SPENCER | ASSOCIATE EDITOR [email protected] ment came several months after Marri- DANIELLE SCHALK | EDITORIAL ASSISTANT ott acquired homegrown Delta Hotels and [email protected]

Resorts. With the acquisitions, Marriott DEREK RAE | MULTIMEDIA MANAGER will now control about 20 per cent of the [email protected] MEGAN O’BRIEN | DIGITAL CONTENT MANAGER room inventory in Canada, while in some [email protected] cities such as Halifax that number will increase to a whopping 75 per cent. COURTNEY JENKINS | GRAPHIC DESIGNER Of course, the deal still needs regulatory approval, which should follow [email protected]

in the next few months. But it will probably take a lot longer to ascertain CHERYLL SAN JUAN | ACCOUNT MANAGER the real impact of how these deals will impact the industry. Will some [email protected] MARIA FAMA VIECILI | ACCOUNT MANAGER hotel brands be eliminated? Will there be significant staff cuts? Will the [email protected] company’s corporate culture be forced to change? Will this deal allow, as STEVE HARTSIAS | ACCOUNT MANAGER [email protected] some industry analysts posit, hotels to better compete against third-party WENDY GILCHRIST | SENIOR ACCOUNT MANAGER intermediaries? Time will tell on all fronts. [email protected]

Interestingly, the ink on that deal wasn’t dry when news came down CIRCULATION | PUBLICATION PARTNERS the pipeline a few weeks later that Paris-based AccorHotels had acquired [email protected] (905) 509-3511 Canada-based FRHI Holdings Ltd., the parent company of Fairmont, Raffles and Swissôtel, in a move that many pundits speculated about for DANIELA PRICOIU | ACCOUNTING MANAGER [email protected] months.

Apart from the usual concerns that surface after a major acquisition, MITCH KOSTUCH | FOUNDER there’s another layer of complexity at play in this transaction. For many in

the hotel industry in Canada, there is perhaps a feeling of loss, with many ADVISORY BOARD

wondering what will now happen to the iconic Canadian brand that has David McMillan, AXIS HOSPITALITY INTERNATIONAL; Bill been part of our fabric for more than a century. Admittedly, the Fairmont Stone, CBRE HOTELS; David Larone, CBRE HOTELS; Anthony brand was American, but its acquisition by industry stalwart Canadian Cohen, CRESCENT HOTELS — GLOBAL EDGE INVESTMENTS; Charles Suddaby, CUSHMAN & WAKEFIELD LTD. — HOSPITAL- Pacific Hotels almost a decade ago made it an international success story ITY & GAMING GROUP; Christiane Germain, GROUPE GERMAIN with Canadian roots. Though for several years now the company has been HOSPITALITE; Michael Haywood, THE HAYWOOD GROUP; Lyle owned by the Qatar Investment Authority, Kingdom Holding Company Hall, HLT ADVISORY; Drew Coles, INNVEST REIT; Scott Allison, MARRIOTT HOTELS OF CANADA; Ryan Murray, THE PILLAR + of Saudi Arabia and Oxford Properties, because Fairmont Hotels was POST HOTEL; Geoffrey Allan, PROJECT CAPITAL MANAGEMENT headquartered in Canada and helmed by Canadians it made us feel that, at HOTELS; Stephen Renard, RENARD INTERNATIONAL HOSPITAL- its heart, the company was uniquely Canadian. ITY & SEARCH CONSULTANTS; Anne Larcade, SEQUEL HOTELS As we turn the page on a new year, with more consolidation predict- & RESORTS

ed, the effects of these acquisitions will ultimately unfold. But one HOTELIER is published eight times a year by Kostuch thing seems certain: mergers and acquisitions speak to an increasing- Media Ltd., 23 Lesmill Rd., Suite 101, Toronto, Ont ., M3B 3P6, (416) 447-0888, Fax (416) 447-5333. All rights reserved. ly competitive and global world where the big get bigger and where Subscription rates: Canada: $25 per year, single issue $4, geographic boundaries and borders no longer really truly exist. U.S.A.: $30 per year; all other countries $40 per year. Canadian Publication Mail Product Sales Agreement #40063470. Member of Canadian Circulations Audit Board, the American Business Media and Magazines Canada. We acknowledge the financial support of the Government of Canada through the Canadian Periodical Fund for our publishing activities. Printed in ROSANNA CAIRA Canada on recycled stock. Editor and Publisher [email protected]

2 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com

CTHE LATESTh INDUSTRY NEWSe FORc HOTEL EXECUTIVESk FROMin CANADA g AND AROUNDI nTHE WORLD FULL HOUSE When Marriott acquires Starwood Hotels & Resorts Worldwide this year, pending regulatory approvals, the company will grow its portfolio to 30 brands, 18 of which can be found in Canada. “While control of multiple brands is attractive and is in part what drove the transaction, 30 brands is probably just too much to differentiate from a customer perspective,” says Lyle Hall, managing director, HLT Advisory Inc. Marriott’s Canadian MAKING WAVES properties will encompass three luxury, With a merger on the horizon, Marriott is set seven upper-upscale, six upscale and to become the biggest fish in the sea two upper-midscale tiered flags. Hall predicts similarities between some of the BY DANIELLE SCHALK previously competing brands may lead to brand consolidation and properties being he imminent acquisition of Starwood Hotels & Resorts Worldwide by re-flagged. Marriott International, Inc. is bound to cause waves in the lodging T market, both in Canada and internationally, strengthening the compa- GOING STATE-SIDE ny’s influence in many spheres. Here at home, the merger will position Marriott Hotels of Canada as the largest hotel company by number of rooms, with more than 45,000 across the country (and the third largest by number of properties after Wyndham and Choice); providing the company with significant control of the room supply in several major markets. In the Ottawa/Hull downtown market, the combined forces of Marriott and Starwood will account for approximately 57 per cent of the total room supply; in the Halifax/Dartmouth market, it will account for nearly 75 per cent. The company will also control more than 38 per cent of the rooms in Greater Montreal and 34 per cent in the Greater Toronto Area. This level of concentration is bound to have effects beyond competition and consumer choice. “What influence [could Marriott have] on communities, or Canadian-made brand, Delta Hotels destination marketing organizations and hotel industry associations in specific and Resorts has officially landed in the markets?” asks Lyle Hall, managing director of Toronto-based HLT Advisory U.S. Seven months after acquiring Delta, Inc. Following this transaction, Marriott’s properties will account for about Marriott International introduced the 20 per cent of member hotels in both the Greater Toronto Hotel Association full-service hotel brand to Orlando with and the Hotel Association of Greater Montreal, based on 2015 members’ lists. the Delta Orlando Lake Buena Vista, in However, this isn’t likely the position Marriott is most interested in leveraging, December. “We are especially excited to he adds. “What people could argue is driving all of this is how it will set Marri- debut the brand in one of the country’s ott up to compete with the OTAs,” says Hall. “If you have influence over 70 to top resort and leisure destinations and 80 per cent of the hotels in the market through your central reservation system, look forward to welcoming even more how attractive is an OTA option?” guests to the Delta experience,” says Paul Assuming the transaction closes in mid-2016 as expected, Marriott will wield Cahill, global brand leader, Delta Hotels unparalleled strength, becoming nearly 50 per cent larger on a total-room basis and Resorts, and area VP of Operations, than its largest global competitor, Hilton Worldwide. “There are a number of Canada. The 241-room property features people who think there is significant value in this consolidation and an expecta- a resort-style swimming pool, kids’ activity tion that there will be more consolidation,” says Hall. room, on-site restaurant and bar. hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 3 COMING PURCHASING POWER EVENTS

Jan. 25-27: The Americas Lodging France-based AccorHotels has set its sights on Investment Summit (ALIS) 2016, JW luxe leader FRHI Holdings Ltd., the Toronto-based Marriott Hotel and Microsoft Theater, parent company of the Fairmont, Raffles and Los Angeles. Tel: 714-540-9300; email: Swissôtel brands, acquiring its portfolio of 155 [email protected]; website: alis- properties and 56,000 rooms for US$2.9 billion. conference.com As part of the agreement with Oxford Properties, the Qatar Investment Authority (QIA) and Kingdom Feb. 29-March 1: Hotel Association Holding Company (KHC) of Saudi Arabia, Accor will of Canada Conference, Hilton Toronto also issue 46.7-million new shares, subject to the Hotel. Tel: 866-887-4453; email: yalila- regulatory approvals of the antitrust authorities. [email protected]; Once completed, QIA and KHC will become major website: hacconference.ca shareholders in AccorHotels, holding a 10.5- and 5.8-per-cent stake, respectively. March 1-3: Hotel Technology Next The transaction is “a great step forward for AccorHotels,” Sébastien Bazin, chairman Generation 2016 North American and CEO of AccorHotels said in a press release. “It offers us robust and global leadership Conference, Omni Amelia Island in luxury hotels, a key segment in terms of geographic reach, growth potential and profit- Plantation Resort, Amelia Island, Fla. ability, for long-term value creation.” The deal will broaden Accor’s geographic footprint in Tel: 847-303-5560; email: events@htng. the luxury segment with 42 properties in North America, two in South America, 26 in Europe, org; website: htng.org/conferences/ 17 in Africa/Middle East and 28 in the Asia-Pacific, bringing the AccorHotels portfolio to north-american 500 units. Meanwhile, a team of FRHI and AccorHotels representatives will be appointed to manage the integration of the brands and identify synergies. Until the transaction is finalized, March 1-3: Hospitality Newfoundland FRHI and AccorHotels will continue to operate as separate companies. and Labrador’s Annual Conference and Trade Show, Delta St. John’s Hotel & Conference Centre. Tel: 800-563-0700; A NEW LENDING email: [email protected]; website: hnl.ca/ ENVIRONMENT conference

March 7-9: International Hotel Big Picture Conferences recently Investment Forum (IHIF), Hotel Inter- brought together nearly 100 Continental, Berlin, Germany. hoteliers, lawyers, lenders and Website: berlin-conference.com tax specialists to Hotel Capital Connection at the Arcadian April 17-19: AHLA Convention and Court in Toronto to learn about Tradeshow, Fairmont Chateau Lake taxation issues, legal topics and franchising. “In the past 12 months, the credit Louise, Lake Louise, Alta. Tel: 780-436- view of Canada has shifted. Our base is still good, but not as good as in the 6112; email: ahlaconvention@yahoo. past,” said Paul Scholz, managing director, Institutional Mortgage Capital in com; website: ahla.ca/convention-and- Toronto, speaking as part of a panel moderated by Bill Stone, EVP of Toronto- trade-show based CBRE Hotels. Scholz pointed to the oil situation in Western Canada as the catalyst for the shift. Ed Khediguian, SVP, Franchise Finance, GE Capital April 24-27: Rendez-vous Canada agreed. “There’s been a bit of retrenchment,” he said, noting there’s some 2016, Palais des congrès de Montreal, hesitation related not just to hotels, but across the commercial sector. Montreal. Tel: 613-238-3885; Khediguian also pointed to the regulatory environment as a factor in the email: [email protected]; shift. “GE is divesting of capital business and the banks are now big acquir- website: rendezvouscanada.travel ers. While Schedule A banks have always been in the sector, what you are seeing now is the non-banks; shadow financing is burgeoning,” he said. The April 27-29: LGBT Tourism Confer- panellists agreed that while the oil situation in Alberta impacts the indus- ence 2016, Delta Winnipeg Hotel. try, it’s the duration of the cycle that will determine how it is affected. “We Tel: 866-300-7556; website: haven’t seen powers of sales or panic,” noted Stone. Jessi Carrier, associate VP, tgc-conference.com Colliers International Hotels added, “All we’ve seen so far are good trades. People know it’s a cycle and as long as it’s not three years [it’s not cause for worry].” In the meantime, Khediguian predicts it will create a more conserva- tive lending environment. Added Scholz, “Borrowing will cost more, but in FOR MORE EVENTS, the next 12 months it won’t drive changing values.” — Rosanna Caira visit http://bit.ly/Hotelierevents

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NAD_185 Hotelier January New Brand.indd 1 12/15/15 2:55 PM City, Erik Lorincz from The Savoy director of Development for Calgary- InBrief in London and Tom Hogan from based Travelodge Canada…Dave Fairmont Singapore. Han is the new director of Food & Beverage at The Omni King Edward Omni Hotels & Resorts has Hotel. Han has held positions in acquired The Omni King Edward People hotels and casinos around the world Hotel in Toronto, a property it has including the Hyatt Regency, Hong been managing and operating since Kong and Park Hyatt Toronto. August 2013. With this transaction, Robert Pratt is Omni Hotels & Resorts becomes the new president the new owner, operator and hotel of ONE Hospi- SupplySide manager…Diamond Resorts Inter- tality, the operat- national, Inc. is set to acquire ing division of Intrawest Resort Club Group from O’Neill Hotels Monmouth Junction, N.J.-based Intrawest Resorts Holdings, Inc. & Resorts in Guest Supply, a wholly owned for $85 million. The transaction is Vancouver. For subsidiary of Sysco Corporation, Robert Pratt expected to close early this year and the past four has acquired Gilchrist & Soames, includes six Intrawest properties in years, Pratt served as president of an in-room toiletry provider. Guest B.C., Ontario and Quebec…The Coast Hotels in Vancouver. As for Supply will continue to operate all Aloft Montreal Airport hotel has Coast Hotels, a search is underway Gilchrist & Soames manufacturing a new look following a $1-million for a new president as of press time... and distribution facilities and sales revamp. Upgrades include new Dorothy Dowling, SVP of Marketing resources operating out of India- furniture in the lobby and meeting and Sales at Best Western Hotels napolis, Ind., and Peterborough, rooms, as well as bedding, carpet, & Resorts in Phoenix, Ariz. has England…Montreal-based Kaba wall coverings and artwork in guest- been named one of the world’s most has partnered with Orlando-based rooms…Toronto-based InnVest influential CMOs by Forbes, Scrib- Intelity to provide app-based mobile REIT has sold the 196-room Holiday bleLive and LinkedIn’s annual CMO key access to a wider market. The Inn Halifax Harbourview hotel to Influence Study. Marriott Interna- Kaba-Intelity application will allow Manga Hotels based in Mississauga, tional’s EVP and CMO Stephanie hoteliers to integrate the mobile key Ont., which increased its portfolio to Linnartz also made the list, checking platform with other hotel manage- 12 properties in Canada…Atlanta, in at number 48…Jonathan Lund is ment systems, including point-of-sale Ga.-based InterContinental Hotels InterContinental and property management systems… Group has opened a new Holiday Hotels Group’s Winston-Salem, N.C.-based commer- Inn Express and Suites in Cold new regional VP, cial warewashing systems manufac- Lake, Alta. The 129-room property Canada Franchise turer, Champion Industries has serves the surrounding military base, P e r f o r m a n c e named Scott Cherevaty the new oil corporations and Cold Lake Support, oversee- VP and GM for Moyer Diebel Ltd., Regional Airport…Toronto’s Realstar ing the chain’s which includes the Champion Moyer Hospitality has opened a new Motel 165 franchised Diebel and Bi-Line brands for the Jonathan Lund 6 in Cache Creek, B.C. The newly units in Canada. Canadian market…Toronto-based converted 20-room property boasts Lund previously worked as the direc- app developer Zonetail Inc. has the brand’s contemporary new Motel tor of Hospitality Operations at secured $2.3 million to further devel- 6 Phoenix design featuring wood- Fortis Properties in St. John’s… op its “anchored local” white-label effect flooring, pillow-top mattresses Ronen Nissenbaum is the new VP hotel app. Zonetail is a free custom- and bathrooms with black granite of Operations, Luxury Hotels-Ameri- branded mobile app and platform countertops…The Westin Trilli- cas at Hilton Worldwide in McLean, that connects guests to hotel servic- um House Blue Mountain in Blue Va…Michael Farquharson is the es and businesses in the surround- Mountains, Ont., marked its 10th new hotel manager of the Sheraton ing neighbourhood…South Korea- anniversary in November…Fairmont Centre Toronto Hotel. Farquharson based Samsung Electronics Co. Ltd. Hotels & Resorts is mixing up its previously held a number of senior is rolling out its Smart Hospital- global cocktail program with a menu leadership positions at Starwood ity Display technology at AccorHo- of classics, revived classics and neats. Hotels and Resorts…Jolene Reid is tels’ properties around the world. The new program was designed the new director of Development for Samsung’s UHD displays and Lynk with the help of mixologists Grant Canada at Carlson Rezidor Hotel Hospitality Management technol- Sceney from Fairmont Pacific Rim, Group. Reid will represent Carlson ogy will be installed at AccorHotels’ Nader Chabaane from Fairmont Rezidor’s hotel brands from an office properties including Sofitel, Pullman, Le Château Frontenac in Quebec in Halifax. She previously served as Novotel, Mercure and Ibis brands.

6 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com Fairmont Royal York, Toronto

InnVest REIT holds one of Canada’s largest hotel portfolios together with a 50% interest in Choice Hotels Inc., one of the largest franchisors of hotels in Canada. InnVest’s portfolio currently comprises of 110 hotel properties, with approximately 14,500 rooms, operated under internationally recognized franchise brands. The portfolio is well diversified across hotel accommodation categories, brands, geography and customers.

Delta, Winnipeg Hyatt Regency, Vancouver Hotel, Saskatchewan

416-607-7100 [email protected] innvestreit.com

Innvest.indd 1 2015-12-15 10:26 AM PINNACLE AWARDS

PHOTOGRAPHY BY MARGARET MULLIGAN egends are made at the Fairmont Royal York Hotel every December, when the industry comes together to celebrate Kostuch Media Ltd.’s Pinnacle Awards. Regarded as the Oscars of the foodservice and hospitality industries, the awards celebrate L excellence, toast industry leaders and their commitments to the communities around them. Winners of the 2015 Pinnacle Awards include: Marriott Hotels of Canada (Company of the Year); Easton’s Group of Hotels (Regional Company of the Year); Robert Mercure, GM of the Fairmont Le Château Frontenac (Hotelier of the Year); and Houston Construction Ltd. (Supplier of the Year). Enjoy the collage of memories from the December gala, and visit hoteliermagazine.com and Hotelier magazine’s Facebook page to view the entire album. — Jackie Sloat-Spencer

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PHOTOGRAPHY BY MARGARET MULLIGAN 107 11

12 1 Derek Rae and Jackie Sloat-Spencer, Kostuch Media Ltd. 2 Carol Johnston, Parmalat Canada 3 Rosanna Caira, Kostuch Media Ltd., Scott Duff, Starwood Hotels & Resorts, Steve Gupta and Reetu Gupta, Easton’s Group of Hotels 4 Jackie Ross, J Ross Hospitality Recruiters, Orie Berlasso, Big Picture Conferences and Carrie Russell, HVS 5 Michael Beckley and Don Cleary, Marriott Hotels of Canada 6 The Winners’ Circle from left, Tony Cohen (MC), Ken Grondin, Bill Gregson, Don Cleary, Michael Doyle, Carl Heinrich, Scott Allison, Peter D’Amato, John D’Amato, Pino Posteraro, Reetu Gupta, Steve Gupta, Rosanna Caira, Paul Higgins Jr., Paul Hollands and Robert Mercure 7 Matthew Cornell, InnVest, Rosanna Caira, Peter D’Amato and John D’Amato, Houston Construction 8 Robert Mercure, Fairmont Le Château Frontenac and Edwin Frizzell, Fairmont Royal York 9 Dianne King, Freeman Audio Visual 10 Don Cleary, Patricia Chiuppi-Silverio, PSAV and Rosanna Caira 11 Anne Larcade, Sequel Hotels and Resorts and David McMillan, AXIS Hospitality International 12 Tony Cohen and James Lockhart, Group Lockhart

hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 9 8 PROFILE

for a King FitSteeped in a 113-year history and with new owners at the helm, Toronto’s Omni King Edward Hotel primes itself for a new beginning

STORY BY ROSANNA CAIRA | PHOTOGRAPHY BY MARGARET MULLIGAN

s the oldest hotel in Toronto, the King Edward is steeped in history and tradition. Opened in 1903 at a cost of $6 million, the iconic hotel was built by George Gooderham, a developer and wealthy Torontonian. Through its storied history, it has played host to royalty, dignitaries and a mix of celebrities including Mark Twain,A Ernest Hemingway, Elvis Presley and the Beatles, not to mention, it also made headlines in 1964 as the place where Liz Taylor and Richard Burton had their romantic tryst while married to others. Through its illustrious life, the King Eddy, as it’s affec- tionately known, became the place to celebrate special moments and events, all the while becoming the hotel of choice for the luxury set. Originally designed by Chica- go architect Henry Ives Cobb and Toronto architect E.J. Lennox, the hotel was the place to be seen, featuring its popular afternoon tea and showcasing a dining room that attracted the city’s business elite. But over the last decade, spurred first by the economic downturn of 2008 and then the opening of newer luxury hotels such as the Four Seasons and the Ritz-Carlton, the grande dame lost some of her edge. “People started to cut this and cut that,” explains Christophe Le Chatton, the hotel’s As the GM of the Omni GM. “We had a bit of a void after the Chiaro’s (the hotel’s King Edward Hotel, former fine-dining restaurant) era. It was time to reposition.” Christophe Le Chatton Late last year, only two months after showcasing a multi- presides over one of million dollar renovation by then-owners, Toronto-based Toronto’s lasting legacies Skyline International Development and Texas-based Omni in hospitality Hotels & Resorts, the hotel’s management company and minority owner, Omni announced it had acquired full

10 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com King

control of the hotel. The hotel also introduced the exclusive Royal Club — 29 “Over the past few years we have seen the Omni King Edward stylish guestrooms and suites with special amenities including Hotel exemplify the exceptional service of our Omni culture,” access to the VIP Royal Club Lounge, breakfast, light bites in says Peter Strebel, SVP of Operations, Omni Hotels & Resorts. the afternoon, evening hors d’oeuvres and on-site guest services. “We have invested time into growing market share for the And each of the hotel’s three ballrooms (the Vanity Fair, hotel. As full owners we will continue to make investments that Sovereign and Windsor Ballrooms) also had a nip and tuck. further grow business and build upon our successes.” “There is a tendency to want to put a modern face on a Thanks to a $40-million renovation, the hotel now sports property when doing a full renovation. My 39 years of hospi- upgrades to its 301 guestrooms and suites as well as its meeting tality design experience has taught me that rather than and dining rooms. The team is hoping the investment will masking the character, you should embrace it; that’s where the return the storied hotel to its former glory and set the stage for interest lies,” says Moncur. its next chapter. The renovations were challenging, as the hotel remained Toronto-based Moncur Design Associates Inc. set the open throughout the entire process. The 301 rooms were tone for much of the upgrades, maintaining the classic feel completed floor by floor, starting from the top down in May of the hotel, but also imbuing it with a modern touches 2014 and completed by February 2015, leaving the meeting and upgraded amenities. “Understanding that the King space next on the agenda, followed by the lobby and the Edward hotel is Toronto’s first luxury hotel, we endeavoured restaurants. To accommodate guests, a makeshift lobby, with to immerse the guest in timeless elegance that creates a a separate entrance from Leader Lane, was created at the sense of calm but is, at the same time, dynamic,” explains east side of hotel, while the actual lobby remained closed for Robynne Moncur, principal. weeks. “It became like a boutique hotel,” quips Le Chatton.

hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 11 PROFILE

While the lobby showcases contemporary, sleek, high dedicate more time and resources to the hotel’s culinary back chairs in hues of ivory, gold and purple, and restored offerings, so executive chef Daniel Schick and his decorative plasterwork on the ceiling as well as wood- culinary team of 22 have updated the dining menus to panelled walls, not much else was upgraded. Quoting a feature more local, seasonal ingredients. The à la carte historian, Moncur describes the main lobby as “grand, Sunday brunch, priced at $53 per person, is a throwback classical in style and at the symbolic heart of the hotel.” to the classic brunch of yesteryear and features such According to the designer, the two-storey, skylight-lit standards as Beef Wellington and foie gras, but also colonnaded space inspired a sense of awe in all who carving stations featuring porchetta and roasted lamb. came through the main lobby doors. Moncur’s intent was Meanwhile, the hotel’s long-standing tradition of after- to “reinforce this ‘sense of awe’ created by the momen- noon tea continues Friday through Sunday. “There have tous interior architecture, by elaborating on the existing been some ups and downs but there is more interest these elements, while providing the guest with a space that can days and it’s making a comeback,” explains Schick. Priced be utilized as an active social hub. The introduction of at $43 per person, the tea attracts about 250 guests over giant chess pieces into the space provides a ‘wow’ factor, the weekend, the majority of whom are locals. “It’s a while simultaneously defining the ritual,” explains Le Chatton, adding seating area and creating a sense of the hotel’s tea service has become intimacy,” she says. a preferred destination for mothers As part of the renovations, the and daughters. “They even wear the hotel converted the third, fourth hats,” he says. and fifth floors of the hotel, once Given the hotel’s classic and home to a garment factory, to elegant feel, it’s always been a 145 residences at a cost of $750 to favourite destination for weddings $850 per sq. ft. With the reno now and events such as Bar Mitzvahs. complete, Le Chatton is quick to “Wedding planners love what admit there is renewed interest in the landmark. “A lot we’ve done and they’re very excited,” says Le Chatton. of our corporate business is now starting to come back. “That’s an aspect we’re really putting a lot of focus on In our comp set, we are growing and if you look at the right now. It’s not just about feeding the hotel, it’s about STR report, we are a leader in the market.” Last year’s feeding the city.” occupancy rate hovered between 75 and 78 per cent, with Interestingly, the debate regarding the future of the an average room rate of $250. “I’m very happy with the Crystal Ballroom, located on the 17th floor and empty result,” he says. “We’ve grown our rate by $22 in 2014 and since the 1970s, still rages on. Through the years, various more than $20 in 2015.” owners have tried to resurrect the stunning, historical The hotel attracts a mix of Canadian leisure and space named for its crystal chandeliers. Omni Hotels & business travellers, primarily from Quebec, B.C. and Resorts, for example, had earmarked $7 million to restore Alberta, with about 20,000 group nights sold each year. the hidden gem known in its heyday as the place to host “The King Eddy is a brand that attracts Canadians. That’s society weddings and fancy balls. The plan was to resur- our biggest driver. But with Omni we see more Americans rect it in time for New Year’s Eve 2016. “To operate it, coming into town, especially with the U.S. dollar being there’s a lot of work to be done there, from a safety stand- so strong.” As for attracting international travellers, Le point, mostly with the sprinkler system,” says Le Chatton, Chatton says the hotel’s excellent TripAdvisor ratings “and we would also have to add a kitchen.” helps fuel business from Europe. In addition, the hotel’s executive team is consider- Though Toronto is now home to a plethora of new ing opening a signature restaurant at the corner of King luxury properties, Le Chatton says his goal is not to and Victoria Streets in a space owned by the hotel. compete with Four Seasons and the Ritz-Carlton. “I don’t “The space has been empty for at least 15 years,” says Le necessarily want to be a five-diamond hotel; we want to be Chatton, pointing out that Omni Hotels would like to in between the InterContinental, the Fairmont brand and develop it possibly as a steakhouse, adding an announce- the super-luxury hotels.” ment is imminent. With a footprint that spans several continents, the While there is still work to be done and several charming Paris-born hotelier has extensive experi- decisions yet to be made, almost two years after arriving at ence in helming iconic properties including Toronto’s the Toronto landmark, with a full-scale renovation under Fairmont Royal York, the Fairmont Peace Hotel in his belt, and Omni Hotels firmly ensconced as the hotel’s Shanghai and most recently the Langdon Hall Country owner, Le Chatton and his team can now confidently turn House Hotel & Spa in Cambridge, Ont. Having begun the page on a new chapter in the long history of Toronto’s his career in food-and-beverage, Le Chatton plans to most regal hotel. u

12 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com The 2016 Franchise Report

ofTRICKS the TRADE New tools and resources utdated offerings, tired amenities and a lack of concern for brand standards will sully any can help franchisees customer-service experience, especially when a maximize value guest has visited a newer or renovated location within the same brand family. and spur growth, OWhen Joe Komaric and Alnoor Nathoo took over the if they know Days Inn Cranbrook this past spring, a host of issues plagued the British Columbia-based property, from a broken-down where to look chiller to outdated tube TVs in guestrooms. An investment of $2-million helped gut and rebuild the lobby, remove the STORY BY JACKIE SLOAT-SPENCER food-and-beverage operations and add new fitness and guest laundry facilities. In guestrooms, worn linens and furniture were swapped with new case goods, drapery, bedding and 48-inch flat-screen TVs. “I’m really proud of that hotel,” says Komaric, GM, who emphasized the importance of adhering to standards set by the brand. “If you’re going to enter into an agreement with a franchisor, be compliant. They have the experience, they know what they’re doing and it’s nice for your guest to go from one property to the next in the same brand hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 13 The 2016 Franchise Report

PAINTING THE TOWN RED Economy brand Red Roof is poised to take off in Canada now that Glenn Squires, CEO of Pacrim Hospitality Services has inked a deal to develop 40 franchised units in Canada over 20 years. “Red Roof will be good for the Canadian market because we will offer new, segment-leading hotels that will provide new facilities in communities where there is old or inadequate hotel inventory,” says Squires, whose company will manage the properties when built, if mandated by the investors for each property or group of properties. “Our preference is to have owner/operators manage the hotel or sub-contract management to a regionally based management firm that could provide a hybrid asset management service.” The Canadian prototype, which is under development, will help reduce construction time and provide a significant spin-off to the Canadian manufacturing businesses, Squires adds. “We and have familiarity,” he says. anticipate rates will be in the $115 to $135 range depending on Once a property is built, however, franchisees can have the market. We have also developed a relationship with several their say in how it is marketed to consumers and make use investment firms that will participate in raising the equity for of a plethora of resources offered by the head-office team to these projects.” maximize value and profitability. Many brands have formed Red Roof’s pipeline will begin in Pacrim’s home region of franchise advisory committees, which oversee the market- Nova Scotia but future development will be largely focused in ing spend for the brand. “It gives owners the opportunity to Ontario, Quebec, Alberta and B.C. have their say in the marketing initiative for the year,” says Komaric, who serves as a member of Realstar Hospi- radio, [we’re] getting some direction from the brand and tality’s Franchise Advisory Committee and oversees the then going to these meetings and saying, ‘what’s going to Alberta, Manitoba and Saskatchewan regions for the work for our region?’ Members who attend have a vote,” he Days Inn brand. adds. Sessions also include an educational component or The committee decides how the annual $70,000 budget a special presentation, so franchisees can go back to their for the region can be spent. “So whether it’s print ads or properties ready to share the knowledge with staff.

NIP AND TUCK Everything old is new again at the Days Inn Cranbrook (pictured below), where a $2-million investment helped revamp the lobby and guestrooms

14 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com Hotelier-Ad-Dec.16.15.pdf 1 15-12-16 10:44 AM

TOOLS OF THE TRADE “We often say to our franchisees that we have a buffet of tools and resources for them to use,” says Brian Leon, managing director, Franchise Growth & Administration at Choice Hotels Canada in Mississauga, Ont. “A big opportunity for each of our franchisees is to figure out what they C can get from us that will be the most meaningful to their business,” he says, pointing to revenue-management as aM popular request, so the team at Choice has created newY tools and corporate resources. They’ve recently introducedCM a program called Choice RM, which provides a dedicated MY revenue manager to the hotel; it helps assess competitor activity, demand generators and other factors. Early thisCY year, it will be adding another resource called Smart Rates,CMY which provides daily competitive rate shopping for up toK four competitors. Hire a Bachelor “IF A FRANCHISEE IS INTERESTED IN A NEW-BUILD of Commerce Co-op HOTEL IN WESTERN CANADA, WE CAN SHOW THEM 10 MARKETS student this summer THAT COULD MAKE SENSE” Brian Leon, managing director, Franchise Growth & Administration, Choice Hotels Canada • Students available for 4 or 8 months

And whether a franchisee is a seasoned, multi-unit • No waiting for a match at Guelph - just hotelier or a single-unit franchisee, Choice Hotels Canada post, interview and HIRE offers access to Choice’s market prioritization summary, which consists of data on 400 markets nationwide, including the company’s share of rooms and occupancy rates. • Get a head start on hiring the best “We’ll also share that information with prospective franchisees, so if a franchisee is interested in a new-build hotel in recruits. Post your jobs now! Western Canada, we can show them 10 markets that could make sense for our Comfort brand. Or if they’re interested in a conversion property, we keep a list of every hotel across the country that we are aware of that’s for sale that might www.recruitguelph.ca hoteliermagazine.com [email protected] (519) 824- 4120 x52323 The 2016 Franchise Report

be a fit for one of our brands,” he adds. Franchisees can also work with a staff member who generates leads and provides support to the development team. The Choice head-office team also helps the franchisee visualize property-improvements before making the leap. “If we have a franchisee that says they’re thinking of updating their breakfast room, we have 300 breakfast rooms across the country that we can show them pictures of. That’s one of the biggest things we can do to help them — being that conduit for sharing information and sharing the experiences of what other hotels have done,” Leon explains. The Choice team also provides various design renderings to help franchisees visualize an exterior façade enhancement or a guestroom renovation, for example. The strategy seems to be working — last year, franchisees invested more than $40-million towards renovations.

THE NEW STANDARD DEMAND GENERATOR Superior Lodging Corp. is helping the IN HOSPITALITY BEDDING Travelodge brand (pictured above, and on next page) flourish coast to coast with seven signed deals The world’s largest bedding manufacturer is transforming hospitality bedding. Now you can choose from the industry’s widest range of STRATEGIES FOR GROWTH brands to create the right guest experience. Get Despite the weakened economic activity in Alberta and better service from the provider who operates Saskatchewan, the economy hotel segment is experienc- more global facilities than any competitor. And ing a development boom since Superior Lodging Corp. and depend on exceptional durability at every price Boca Raton, Fla.-based Waramaug Hospitality Canada LLC point. It all adds up to greater choice, purchased the master licence rights to Travelodge Canada farther reach and higher value. from Holloway Lodging last year. This meant the formation of a new company, Superior Lodging Development TL Corpora- tion, which will spearhead the growth of the Travelodge and Learn more about our exciting new line! Thriftlodge franchises in Canada. tempursealyhospitality.com | 866.251.6471 “After buying Travelodge, we certainly see a lot of traction and pent-up demand for the Travelodge brand. We actually signed seven deals since we took over in April, which is fairly good growth for us,” says Marc Staniloff, president and CEO. “And it’s right across the country.” Deals signed include two in Saskatchewan, two in Alberta, one in B.C. and two in the Maritimes. “Our strategy will be

hoteliermagazine.com

14-SC-0035_ad_Ad Resize - Product Line Ad for Half Page in Hotelier_v3.indd 1 11/20/14 3:34 PM WITHOUT HAPPY, “ SUCCESSFUL FRANCHISEES, WE DON’T HAVE A BUSINESS Brian Leon, managing director, Franchise” Growth & Administration, Choice Hotels Canada to grow these franchises further through acquisition, development and conversion of existing hotels. We will also be able to offer financing to existing and prospective franchisees, which is a unique opportunity for them, and hopefully provides the impetus to further our footprint in the dynamic Canadian market,” adds Scott Silver, principal, Waram- aug Hospitality Canada LLC. They’ve also hired a senior sales person with a track record of converting multiple units per year, plus an in-house salesperson to focus on the growth of both brands in Canada. At Choice, franchise growth also means looking at new initiatives from a bottom-up approach. Franchisees have their say in the future of the brand development, including a new-build Quality prototype in the works. “We worked with a franchisee who was building a new Quality and [consulted] with them on floor plans,” says Leon. “We had input from five or six franchisees and different design firms, and along with that, input from the design department at Choice Hotels International in the U.S.” It resulted in a more cost-effective prototype that speaks to evolving customer needs. Construction costs and space concerns were also top of mind in the new design. One example is temperature-controlled storage lockers which, based on some of the feedback, are a great amenity for sports teams staying at the hotels. Taking franchisee concerns into account will help hotel brands reach their development goals, says Leon. “We are a 100-per-cent franchised system and we often say this to our team — without happy, successful franchisees, we don’t have a business.” u hoteliermagazine.com

Atlific_ad_JanFeb2016.indd 1 2015-12-16 1:52 PM The 2016 Franchise Report

ACCOR

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

NOVOTEL CEO HotelServices, North, - established in 1985 in - initial franchise fee $500/room, - advertising/marketing 3470 N.W. 82nd Ave., Central Americas & Caribbean: Mississauga, Ont. $50,000 min. - design Ste.600 Christophe Alaux - seven properties in Canada - advertising fee 2% - management Doral, FL 33122 COO HotelServices, North, (six franchised); 450+ out- - distribution fee 2% - purchasing 786-364-6203 Central Americas & Caribbean: side of Canada - royalty fee 4% - site location accorhotels-group.com Dominique Colliat - staff training - supplies

BEST WESTERN HOTELS & RESORTS

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

BEST WESTERN President: David Kong - established in 1946 in Long - initial franchise fee $46,000 minimum, - advertising/marketing HOTELS & RESORTS VP, Owner Relations: Michael Morton Beach, Calif. plus $200/room for properties with - design 6557 Mississauga Rd., Unit D - 198 properties in Canada; more than 50 rooms - lease negotiation Meadowvale Ct. 1 3,869 outside of Canada - marketing fee $12.06/room/month - management Mississauga, ON L5N 1A6 - royalty fee $1.42/room/day - other 905-816-4787 - purchasing bestwestern.com - site location - staff training - supplies

CARLSON REZIDOR HOTEL GROUP

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

COUNTRY INNS & EVP: Jeffrey Freund - established in 1986 in - initial franchise fee US$50,000 - advertising/marketing SUITES BY CARLSON Chief Development Officer: Minneapolis, Minn. - total cost US$6,624,620 to $7,853,840 - design 701 Carlson Parkway, Greg O’Stean - eight properties in Canada; - royalty fee 5% - management MS8254 467 outside of Canada - advertising fee 2.5% - purchasing Minnetonka, MN 55305 - plans to open a new prop- - distribution fee 1.5% - staff training 763-212-3475 erty in Belleville, Ont. - supplies countryinns.com

PARK INN BY COO, Americas and EVP Managed - established in 1986 in - initial franchise fee US$35,000 - advertising/marketing RADISSON Hotels: Javier Rosenberg Minneapolis, Minn. - total cost US$1,717,280 to $4,790,200 - design 701 Carlson Parkway, Chief Development Officer: - three properties in Canada; - royalty fee 4.5% - management MS8254 Greg O’Stean 133 outside of Canada - advertising fee 2% - purchasing Minnetonka, MN 55305 (53 franchised) - distribution fee 1.25% - staff training 763-212-3475 - plans to open a new prop- - supplies parkinn.com erty at Calgary International Airport in 2016

RADISSON COO, Americas and EVP Managed - established in 1962 in - initial franchise fee US$75,000 - advertising/marketing 701 Carlson Parkway, Hotels: Javier Rosenberg Minneapolis, Minn. - total cost US$3,182,500 to $9,936,360 - design MS8254 Chief Development Officer: - 15 properties in Canada; - advertising fee 2% - management Minnetonka, MN 55305 Greg O’Stean 134 outside of Canada - distribution fee 2% - purchasing 763-212-3475 - no expansion planned at - royalty fee 5% - staff training radisson.com this time - supplies

18 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com The 2016 Franchise Report

CHOICE HOTELS CANADA INC.

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

ASCEND HOTEL Managing Director: Brian Leon - established in 2008 - initial franchise fee $30,000 - advertising/marketing COLLECTION in Canada - advertising fee 1.25% - design 5090 Explorer Dr., Ste. 500 - 12 properties in Canada; - royalty fee 4% - staff training Mississauga, ON L4W 4T9 140 outside of Canada (all - reservation fee 1.25% - supplies 905-206-7316 franchised) choicehotels.ca

CLARION - established in 1987 - initial franchise fee $35,000 - advertising/marketing 5090 Explorer Dr., Ste. 500 in Canada - advertising fee 1.25% - design Mississauga, ON L4W 4T9 - eight properties in Canada; - royalty fee 2.5% - staff training 905-206-7316 314 outside of Canada (all - reservation fee 1.25% - supplies choicehotels.ca franchised)

COMFORT - established in 1998 - initial franchise fee $40,000 - advertising/marketing 5090 Explorer Dr., Ste. 500 in Canada - advertising fee 1.3% - design Mississauga, ON L4W 4T9 - 146 properties in Canada; - royalty fee 5% - staff training 905-206-7316 1,723 outside of Canada (all - reservation fee 1.75% - supplies choicehotels.ca franchised)

COMFORT SUITES - established in 1998 - initial franchise fee $50,000 - advertising/marketing 5090 Explorer Dr., Ste. 500 in Canada - advertising fee 1.3% - design Mississauga, ON L4W 4T9 - four properties in Canada; - royalty fee 5% - staff training 905-206-7316 595 outside of Canada (all - reservation fee 1.75% - supplies choicehotels.ca franchised)

ECONO LODGE - established in 1993 - initial franchise fee $25,000 - advertising/marketing 5090 Explorer Dr., Ste. 500 in Canada - advertising fee 1.3% - design Mississauga, ON L4W 4T9 - 54 properties in Canada; - distribution fee 4% - staff training 905-206-7316 936 outside of Canada (all - reservation fee 1.75% - supplies choicehotels.ca franchised)

QUALITY - established in 1955 - initial franchise fee $35,000 - advertising/marketing 5090 Explorer Dr., Ste. 500 in Canada - advertising fee 1.3% - design Mississauga, ON L4W 4T9 - 84 properties in Canada; - royalty fee 4% - staff training 905-206-7316 1,658 outside of Canada (all - reservation fee 1.75% - supplies choicehotels.ca franchised)

RODEWAY INN - established in 1996 - initial franchise fee $15,000 - advertising/marketing 5090 Explorer Dr., Ste. 500 in Canada - advertising fee $10/room/month - design Mississauga, ON L4W 4T9 - four properties in Canada; - royalty fee $30/room/month, minimum - staff training 905-206-7316 485 outside of Canada (all $20,000 - supplies choicehotels.ca franchised) - reservation fee $10/room/month

SLEEP INN - established in 1989 - initial franchise fee $35,000 - advertising/marketing 5090 Explorer Dr., Ste. 500 in Canada - advertising fee 1.3% - design Mississauga, ON L4W 4T9 - three properties in Canada; - royalty fee 4% - staff training 905-206-7316 387 outside of Canada (all - reservation fee 1.75% - supplies choicehotels.ca franchised)

hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 19 The 2016 Franchise Report

CHOICE HOTELS INTERNATIONAL

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

CAMBRIA SUITES President & CEO, Choice Hotels - founded in 2007 - initial franchise fee $60,000 - advertising/marketing 1 Choice Hotels Circle, International: Stephen P. Joyce - no properties in Canada; - royalty fee 5% GRR - design Ste. 400 VP, Franchise Development: 24 outside of Canada (all - system distribution fee 4% GRR - site location Rockville, MD 20850 Mark Shalala franchised) - staff training 800-547-0007 - supplies choicehotelsfranchise.com

MAINSTAY SUITES President & CEO, Choice Hotels - founded in 1996 - initial franchise fee $30,000 - advertising/marketing 1 Choice Hotels Circle, International: Stephen P. Joyce - three properties in Canada; - royalty fee 5% GRR - design Ste. 400 Director of Franchise Development: 50 outside of Canada (all - system distribution fee 2.5% GRR - site location Rockville, MD 20850 John Slaughter franchised) - staff training 800-547-0007 - supplies choicehotelsfranchise.com

SUBURBAN President & CEO, Choice Hotels - founded in 2005 - initial franchise fee $30,000 - advertising/marketing EXTENDED International: Stephen P. Joyce - two properties in Canada; - royalty fee 5% GRR - design STAY HOTEL Director of Franchise Development: 64 outside of Canada (all - system distribution fee 2.5% GRR - site location 1 Choice Hotels Circle, John Slaughter franchised) - staff training Ste. 400 - supplies Rockville, MD 20850 800-547-0007 choicehotelsfranchise.com

COAST HOTELS

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

COAST HOTELS Executive Director, Brand - established in 1972 in Gold - initial franchise fee $100 per room, - advertising/marketing 1090 W. Georgia St., Development: Mark Hope River/Tahasis, B.C. $10,000 minimum - design Ste. 900 - 28 properties in Canada; - advertising fee 2% - lease negotiation Vancouver, BC V6E 3V7 10 outside of Canada (28 - distribution fee 1.5% - management 604-682-7982 franchised) - royalty fee 2% - purchasing coasthotels.com - continued expansion - other fees 0.5% - site location planned in Western Canada - staff training - supplies

EXECUTIVE HOTELS & RESORTS

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

EXECUTIVE HOTELS President: Salim Sayani - established in 1986 - available upon request - advertising/marketing & RESORTS in Vancouver - design 1080 Howe St., 8th Floor - 13 properties in Canada; - lease negotiation Vancouver, BC V6Z 2T1 three outside of Canada - management 604-642-5250 - purchasing executivehotels.net - site location - staff training - supplies

20 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com Open the door to more.

You’re not in the hotel business for less. You’re in it for more. So when looking for an investment opportunity that gives more of everything it takes to help you succeed — reservations, property support, marketing, technology, you name it — you’ll ﬁ nd more of what you’re looking for with Choice Hotels®.

Bigger is better, too. Whether you’re planning a new build or changing brands, you’ll beneﬁ t from the scale and distribution of one of the world’s largest hospitality companies. With more than 75 years of experience, an unﬂ agging focus on innovation and a commitment to your ROI, we provide every franchisee with the expertise, support and resources it takes to succeed. Open the door to more, today.

ChoiceHotelsDevelopment.ca

HILTON WORLDWIDE, INC.

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

DOUBLETREE President & CEO: - established in 1989 - initial franchise fee $75,000 for the - advertising/marketing BY HILTON Christopher Nassetta - eight properties in Canada first 250 rooms, plus $400 per - design 5830 Campus Rd., Ste. 200 VP & Managing Director, Franchise (all franchised); 435 outside additional room - Hilton HHonors guest- Mississauga, ON L4V 1G2 Development, N.E. USA & Canada: of Canada - royalty fee 5% monthly GRR reward program 905-678-5434 Thomas Lorenzo - management hiltonworldwide.com - purchasing - site location - staff training/supplies

EMBASSY SUITES - established in 1983 - initial franchise fee $75,000 for the - advertising/marketing BY HILTON - two properties in Canada first 250 rooms, plus $400 per - design 5830 Campus Rd., Ste. 200 (both franchised); 224 additional room - Hilton HHonors guest- Mississauga, ON L4V 1G2 outside of Canada - royalty fee 3.5% year one; 4.5% year reward program 905-678-5434 two; 5.5% year three monthly GRR - management hiltonworldwide.com - purchasing - site location - staff training/supplies

HAMPTON/HAMPTON - established in 1983 - initial franchise fee $75,000 for the - advertising/marketing INN & SUITES - 49 properties in Canada (47 first 100 rooms, plus $400 per - design BY HILTON franchised); 2,069 outside additional room - Hilton HHonors guest- 5830 Campus Rd., Ste. 200 of Canada - royalty fee 6% monthly GRR reward program Mississauga, ON L4V 1G2 - management 905-678-5434 - purchasing hiltonworldwide.com - site location - staff training/supplies

HILTON GARDEN INN - established in 1996 - initial franchise fee $75,000 for - advertising/marketing 5830 Campus Rd., Ste. 200 - 21 properties in Canada (all the first 150 rooms, plus $400 per - design Mississauga, ON L4V 1G2 franchised); 648 outside additional room - Hilton HHonors guest- 905-678-5434 of Canada - royalty fee 5.5% monthly GRR reward program hiltonworldwide.com - management - purchasing - site location - staff training/supplies

HILTON HOTELS - established in 1919 in Texas - initial franchise fee $75,000 for the first - advertising/marketing & RESORTS - 14 properties in Canada 250 rooms, plus $400 per - design 5830 Campus Rd., Ste. 200 (nine franchised); 568 additional room - Hilton HHonors guest- Mississauga, ON L4V 1G2 outside of Canada - royalty fee 5% monthly GRR reward program 905-678-5434 - management hiltonworldwide.com - purchasing - site location - staff training/supplies

HOME2 SUITES - established in 2009 - $50,000 flat franchise fee - advertising/marketing BY HILTON - one franchised property in - royalty fee 5% monthly GRR - design 5830 Campus Rd., Ste. 200 Canada; 64 outside - Hilton HHonors guest- Mississauga, ON L4V 1G2 of Canada reward program 905-678-5434 - management hiltonworldwide.com - purchasing - site location - staff training/supplies

HOMEWOOD SUITES - established in 1988 - initial franchise fee $75,000 for the - advertising/marketing BY HILTON - 16 properties in Canada (15 first 150 rooms, plus $400 per - design 5830 Campus Rd., Ste. 200 franchised); 374 outside additional room - Hilton HHonors guest- Mississauga, ON L4V 1G2 of Canada - royalty fee 3.5% year one; 4.5% year reward program 905-678-5434 two; 5.5% year three monthly GRR - management hiltonworldwide.com - purchasing - site location - staff training/supplies

22 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com The 2016 Franchise Report

INTERCONTINENTAL HOTELS GROUP (IHG)

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

CANDLEWOOD SUITES Regional Director, Midscale Franchise - established in 1995 - total investment $7,822,440 - advertising/marketing 2 Robert Speck Parkway, Sales & Development, Canada: - one franchised property in to $10,653,600 - design Ste. 600 Stuart Laurie Canada; 332 outside - combined royalty and advertising fee, - management Mississauga, ON L4Z 1H8 of Canada on average, range from 7% to 8% GRR - other 416-675-6644 - plans to add two properties - application fee $500 per guestroom, - site location ihg.com in Canada $50,000 minimum - staff training - supplies

CROWNE PLAZA - established in 1983 - total investment $28,400,100 - advertising/marketing HOTELS & RESORTS - eight franchised properties to $52,501,895 - design 2 Robert Speck Parkway, in Canada; 395 outside - royalty and marketing fees combined, - management Ste. 600 of Canada on average, range from 7% to 9% GRR - other Mississauga, ON L4Z 1H8 - plans to add one property - application fee $500/guestroom, - site location 416-675-6644 in Canada $75,000 minimum - staff training ihg.com - supplies

HOLIDAY INN - established in 1991 - total investment $7,519,348 - advertising/marketing EXPRESS - 89 franchised properties to $10,548,275 - design 2 Robert Speck Parkway, in Canada; 2,317 outside - royalty and advertising fee combined, - management Ste. 600 of Canada on average, range from 8% to - other Mississauga, ON L4Z 1H8 - plans to add 18 properties 10% GRR - site location 416-675-6644 in Canada - application fee $500 per guestroom, - staff training ihg.com $50,000 minimum - supplies

HOLIDAY INN HOTELS - established in 1952 - total investment $13,345,365 - advertising/marketing & RESORTS - 60 franchised properties in to $24,889,925 - design 2 Robert Speck Parkway, Canada; 1,136 outside - royalty and advertising fee combined, - management Ste. 600 of Canada on average, range from 8% to - other Mississauga, ON L4Z 1H8 - plans to add five properties 10% GRR - site location 416-675-6644 in Canada - application fee $500 per guestroom, - staff training ihg.com $50,000 minimum - supplies

HOTEL INDIGO - established in 2004 - total investment $15,941,508 - advertising/marketing 2 Robert Speck Parkway, - one franchised property in to $35,699,240 - design Ste. 600 Canada; 63 outside - royalty and advertising fee combined, - management Mississauga, ON L4Z 1H8 of Canada on average, range from 7% to 9% GRR - other 416-675-6644 - no plans for growth in - application fee $500/guestroom, - site location ihg.com Canada at this time $60,000 minimum - staff training - supplies

INTERCONTINENTAL - established in 1946 - total investment $67,214,690 - advertising/marketing HOTELS & RESORTS - three properties in Canada to $98,449,200 - design 2 Robert Speck Parkway, (all managed); 179 outside - royalty and marketing fees combined, - management Ste. 600 of Canada on average, range from 7% to 9% GRR - other Mississauga, ON L4Z 1H8 - application fee $500/guestroom, - site location 416-675-6644 $75,000 minimum - staff training ihg.com - supplies

STAYBRIDGE SUITES - established in 1998 - total investment $9,280,365 - advertising/marketing 2 Robert Speck Parkway, - eight properties in Canada to $12,654,100 - design Ste. 600 (seven franchised); 211 out- - royalty and advertising fee combined, - management Mississauga, ON L4Z 1H8 side of Canada on average, range from 7% to 8% GRR - other 416-675-6644 - plans to add five properties - application fee $500 per guestroom, - site selection ihg.com in Canada $50,000 minimum - staff training - supplies

hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 23 The 2016 Franchise Report

LA QUINTA FRANCHISING LLC

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

LA QUINTA INNS SVP, Franchise Development: - established in 1968 in San - initial franchise fee US$55,000 - advertising/marketing & SUITES David Wilner Antonio, Texas - advertising fee 2.5% - design 909 Hidden Ridge, Ste. 600 - two franchised properties - royalty fee 4.5% - purchasing Irving, TX 75038 in Canada; 882 outside of - staff training 214-492-6600 Canada (530 franchised) - supplies laquintafranchise.com - plans to expand in the U.S., Canada, Mexico and Latin America

MARRIOTT INTERNATIONAL, INC.

ate last year, Marriott Internation- al exercised its purchasing power to become the world’s largest hotel company, acquiring Canada’s full- service Delta Hotels and Resorts and announcing plans to acquire Starwood Hotels & Resorts in mid-2016. When the Starwood deal is finalized, pending the necessary Lapprovals, Marriott will increase its presence in the lifestyle segment with brands such as Aloft, W Hotels and Westin. Since the Delta deal was approved in April, the company has already successfully integrated Delta’s 37 properties into its reservations and loyalty systems and opened the first U.S.-based Delta in Orlando, Fla. Meanwhile, its rapidly expanding select-service and extended-stay brands are poised to flourish in 2016, with the addition of 12 Courtyard by Marriott hotels, nine TownePlace Suites and eight Fairfield Inn & Suites.

24 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com The 2016 Franchise Report

MARRIOTT INTERNATIONAL, INC.

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

AC HOTELS AVP, Lodging Development, Canada: - first AC Hotel opened - initial franchise fee US$75,000 or - advertising/marketing 2425 Matheson Blvd. E., Manlio Marescotti in 1998 US$500/room, whichever is greater - design Ste. 100 AVP, Lodging Development, Canada: - no properties in Canada; - royalty fee 5.5% GRR - management Mississauga, ON L4W 5K4 Ryan McRae 82 outside of Canada - marketing fee 2.5% GRR - purchasing 905-366-5200 - plans to open four units in - staff training marriottdevelopment.com Canada by the end of 2016 - supplies

AUTOGRAPH - first Autograph opened - available upon request - advertising/marketing COLLECTION in 2010 - design 2425 Matheson Blvd. E., - two properties in Canada; - management Ste. 100 91 outside of Canada - purchasing Mississauga, ON L4W 5K4 - plans to open four units in - staff training 905-366-5200 Canada by the end of 2016 - supplies marriottdevelopment.com

COURTYARD - established in 1983 - initial franchise fee US$75,000 or - advertising/marketing BY MARRIOTT - 24 properties in Canada; US$500/room, whichever is greater - design 2425 Matheson Blvd. E., 1,005 outside of Canada - royalty fee 6% GRR - management Ste. 100 - plans to open 12 units in - marketing fee 2% GRR - purchasing Mississauga, ON L4W 5K4 Canada by the end of 2016 - staff training 905-366-5200 - supplies marriottdevelopment.com

DELTA HOTELS - acquired Delta Hotels and - available upon request - advertising/marketing AND RESORTS Resorts in 2015 - design 2425 Matheson Blvd. E., - 37 properties in Canada; one - management Ste. 100 outside of Canada - purchasing Mississauga, ON L4W 5K4 - plans to open four units in - staff training 905-366-5200 Canada by the end of 2016 - supplies marriottdevelopment.com

FAIRFIELD INN - established in 1987 - initial franchise fee US$50,000 - advertising/marketing & SUITES - 18 properties in Canada (all or US$400 per room, whichever - design 2425 Matheson Blvd. E., franchised); 742 outside is greater* - management Ste. 100 of Canada - royalty fee 5.5% GRR - purchasing Mississauga, ON L4W 5K4 - plans to open eight units in - marketing fee 2.5% GRR - staff training 905-366-5200 Canada by the end of 2016 - supplies marriottdevelopment.com *Subject to Canadian Development Incentive Program

MARRIOTT HOTELS - established in 1957 - available upon request - advertising/marketing & RESORTS - 16 properties in Canada; 572 - design (INCLUDING outside of Canada - management JW MARRIOTT) - plans to open four units in - purchasing 2425 Matheson Blvd. E., Canada by the end of 2016 - staff training Ste. 100 - supplies Mississauga, ON L4W 5K4 905-366-5200 marriottdevelopment.com

RENAISSANCE HOTELS - acquired Renaissance Hotels - available upon request - advertising/marketing 2425 Matheson Blvd. E., in 1997 - design Ste. 100 - two properties in Canada; - management Mississauga, ON L4W 5K4 156 outside of Canada - purchasing 905-366-5200 - plans to open two units in - staff training marriottdevelopment.com Canada by end of 2016 - supplies

hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 25 The 2016 Franchise Report

MARRIOTT INTERNATIONAL, INC. (Ctd.)

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

RESIDENCE INN AVP, Lodging Development, Canada: - acquired Residence Inn - initial franchise fee US$75,000 or - advertising/marketing BY MARRIOTT Manlio Marescotti in 1987 US$500 per suite, whichever is greater - design 2425 Matheson Blvd. E., AVP, Lodging Development, Canada: - 20 properties in Canada; - royalty fee 6% GRR - management Ste. 100 Ryan McRae 669 outside of Canada - marketing fee 2.5% GRR - purchasing Mississauga, ON L4W 5K4 - plans to open six properties - staff training 905-366-5200 in Canada by end of 2016 - supplies marriottdevelopment.com

SPRINGHILL SUITES - established 1998 - initial franchise fee US$50,000 - advertising/marketing BY MARRIOTT - two properties in Canada; or US$400 per room, whichever - design 2425 Matheson Blvd. E., 331 outside of Canada is greater* - management Ste. 100 - plans to open two proper- - royalty fee 5.5% GRR - purchasing Mississauga, ON L4W 5K4 ties in Canada by the end - marketing fee 2.5% GRR - staff training 905-366-5200 of 2016 - supplies marriottdevelopment.com *Subject to Canadian Development Incentive Program

TOWNEPLACE SUITES - established in 1997 - initial franchise fee US$50,000 or - advertising/marketing BY MARRIOTT - seven properties in Canada; US$400 per room, whichever is greater - design 2425 Matheson Blvd. E., 257 outside of Canada - royalty fee 5% GRR - management Ste. 100 - plans to open nine proper- - marketing fee 2% GRR - purchasing Mississauga, ON L4W 5K4 ties in Canada by the end - staff training 905-366-5200 of 2016 *Subject to Canadian Development - supplies marriottdevelopment.com Incentive Program

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MONTE CARLO HOTEL MOTEL INNTERNATIONAL

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

MONTE CARLO INNS VP of Operations: Justin Meffe - established in 1984 - initial franchise fee $30,000 or - advertising/marketing 7045 Edwards Blvd. VP, Franchise Development: - eight properties in Canada $400/room - design Mississauga, ON L5T 2H8 Danny Pedone (all franchised) - advertising fee 2% - lease negotiation 888-564-6194 - looking to expand in - royalty fee 5% - management montecarloinns.com southern Ontario - purchasing - site location - staff training - supplies

REALSTAR HOSPITALITY

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

DAYS INNS - President and COO: Irwin Prince - Days Hotel was established - initial franchise fee $350 per room, - advertising/marketing HOTELS - SUITES in 1998; Days Inn was minimum $35,000 - design Days Inns - Canada established in 1992 - royalty fee 6.5% - global reservations Master Franchisor in Canada - 109 franchised properties in - reservations fee 2.3% - national sales network Realstar Hotel Services Canada; 1,676-plus outside - operational support Corp., Division of Realstar of Canada - purchasing Hospitality - expansion planned in - site review and analysis (Wyndham Worldwide) Airdrie, Alta., Sherwood - staff training 77 Bloor St. W., Ste. 2000 Park, Alta., Prince George, - tradeshow representation Toronto, ON M5S 1M2 B.C., Moncton and Warman, 416-966-8387 Sask. daysinn.ca

MOTEL 6 - established in 1962 - initial franchise fee $40,000 - advertising/marketing Master Franchisor in Canada - 21 franchised properties in - advertising and marketing fee 1.5% - design Realstar Hospitality Corp., Canada; 1,079-plus outside - royalty fee 5% - global reservations Division of Realstar of Canada - reservations fee 2% - operational support Hospitality - expansion planned in - purchasing (G6 Hospitality LLC) Trenton, Ont. and - site review and analysis 77 Bloor St. W., Ste. 2000 Weyburn, Sask. - staff training Toronto, ON M5S 1M2 416-966-8387 motel6.com

STUDIO 6 - established in 1999 - initial franchise fee $40,000 - advertising/marketing Master Franchisor in Canada - one franchised property in - advertising and marketing fee 1.5% - design Realstar Hospitality Corp., Canada; 69-plus outside - royalty fee 5% - global reservations Division of Realstar of Canada - reservations fee 2% - operational support Hospitality - plans to open a new unit in - purchasing (G6 Hospitality LLC) Bruderheim, Alta. - site review and analysis 77 Bloor St. W., Ste. 2000 - staff training Toronto, ON M5S 1M2 416-966-8387 staystudio6.com

hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 27 The 2016 Franchise Report

RED ROOF FRANCHISING, LLC

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

RED ROOF INN President: Andrew C. Alexander - established in 1973 in - initial franchise fee $30,000 - advertising/marketing The Red Roof Building Chief Development Officer: Phil Hugh Columbus, Ohio - royalty fee 4.5% - design 605 South Front St. - no properties in Canada; - distribution fee combined with advertis- - staff training Columbus, OH 43215 425 outside of Canada (305 ing and marketing at 4% GRR 614-744-2600 franchised) redrooffranchising.com - slated to enter Canada in 2016 with four properties in the Eastern and Atlantic regions, including Grand Falls, N.L., Bay Roberts, N.L., Wolfville, N.S. and Antigonish, N.S.

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

ALOFT HOTELS Global Brand Leader: - three properties in Canada - initial franchise fee US$60,000, - advertising/marketing 123 Queen St. W. Brian McGuinness (all franchised); 97 outside plus $450 per key in excess of 150 keys - design Toronto, ON M5H 2M9 Senior Director of Development, of Canada - SPG 5% folio (4.2% blended - management 416-361-1000 Canada & Alaska: Scott T. Duff assessment) - purchasing alofthotels.com - licence fee 5.5% GRR - site location - program fee 4% GRR - site review and analysis - staff training - supplies

ELEMENT HOTELS Global Brand Leader: - two properties in Canada - initial franchise fee US$60,000, - advertising/marketing 123 Queen St. W. Brian McGuinness (both franchised), 17 outside plus $450 per key in excess of 150 keys - design Toronto, ON M5H 2M9 Senior Director of Development, of Canada - SPG 5% folio (4.2% blended - financial assistance 416-361-1000 Canada & Alaska: Scott T. Duff - properties slated to open in assessment) - lease negotiation elementhotels.com Calgary and Edmonton - licence fee 5.5% GRR - management - program fee 4% GRR - purchasing - site location - site review and analysis - staff training - supplies

FOUR POINTS Global Brand Leader: - 28 properties in Canada (all - initial franchise fee US$60,000, plus - advertising/marketing BY SHERATON Brian McGuinness franchised); 176 outside $450 per key in excess of 150 keys - design 123 Queen St. W. Senior Director of Development, of Canada - SPG 5% folio (4.2% blended - financial assistance Toronto, ON M5H 2M9 Canada & Alaska: Scott T. Duff - properties slated to open in assessment) - lease negotiation 416-361-1000 Grand Prairie, Alta., Edmonton, - licence fee 5.5% GRR - management fourpoints.com Sherwood Park, Alta., Regina, - program fee 4% GRR - purchasing Lloydminster, Sask., Estevan, - site location Sask., Vaughan, Ont. and - site review and analysis Brantford, Ont. - staff training - supplies

LE MÉRIDIEN HOTELS Global Brand Leader: Brian Povinelli - one property in Canada - initial franchise fee US$85,000, plus - advertising/marketing 123 Queen St. W. Senior Director of Development, (franchised); 101 outside $300 per key in excess of 200 rooms - design Toronto, ON M5H 2M9 Canada & Alaska: Scott T. Duff of Canada - SPG 5% folio (4.2% blended - financial assistance 416-361-1000 assessment) - lease negotiation lemeridien.com - marketing fee 1% GRR - management - reservations fee 0.8% GRR, plus - purchasing $8.65/room - site location - licence fee 5% GRR - site review and analysis - food-and-beverage fee 2% of gross - staff training F&B revenue - supplies - sales fee 0.239% GRR, plus 6% of revenue from group bookings generated by the Starwood sales organization

28 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com The 2016 Franchise Report

STARWOOD HOTELS & RESORTS WORLDWIDE, INC. (Ctd.)

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

LUXURY COLLECTION Global Brand Leader: Hoyt Harper II - no properties in Canada; - initial franchise fee US$85,000, plus - advertising/marketing 123 Queen St. W. Senior Director of Development, 100 outside of Canada $300 per key in excess of 200 rooms - design Toronto, ON M5H 2M9 Canada & Alaska: Scott T. Duff - exploring opportunities - SPG 5% folio (4.2% blended - financial assistance 416-361-1000 in Canada assessment) - lease negotiation luxurycollection.com - marketing fee 1% GRR, capped - management at $450,000 - purchasing - reservations fee 0.8% GRR, plus - site location $8.65/room/month - site review and analysis - licence fee 5% GRR - staff training - food-and-beverage fee 0 to 2% of gross - supplies F&B revenue - sales fee 0.239% GRR, plus 6% of revenue from group bookings generated by the Starwood sales organization

SHERATON HOTELS Global Brand Leader: Dave Marr - 18 properties in Canada (15 - initial franchise fee $85,000, plus $300 - advertising/marketing & RESORTS Senior Director of Development, franchised); 423 outside per key in excess of 200 rooms - design 123 Queen St. W. Canada & Alaska: Scott T. Duff of Canada - SPG 5% folio (4.1% blended - management Toronto, ON M5H 2M9 assessment) - purchasing 416-361-1000 - marketing fee 1% GRR, capped - site location sheraton.com at $450,000 - site review and analysis - reservations fee 0.8% GRR, plus - staff training $8.65/room - supplies - licence fee 6% GRR - food-and-beverage fee 2% of gross F&B revenue - sales fee 0.239% GRR, plus 6% of revenue from group bookings generated by the Starwood sales organization

TRIBUTE HOTELS Global Brand Leader: Dave Marr - no properties in Canada; two - initial franchise fee $50,000, plus $200 - advertising/marketing 123 Queen St. W. Senior Director of Development, outside of Canada per key in excess of 250 rooms - design Toronto, ON M5H 2M9 Canada & Alaska: Scott T. Duff - exploring opportunities - SPG 5% folio (4.2% blended - management 416-361-1000 in Canada assessment) - purchasing tributehotels.com - licence fee 5% GRR - site location - program fee 3.5% GRR - site review and analysis - staff training - supplies

WESTIN HOTELS Global Brand Leader: Brian Povinelli - 15 properties in Canada - initial franchise fee US$85,000, plus - advertising/marketing & RESORTS Senior Director of Development, (10 franchised); 189 outside $300 per key in excess of 200 rooms - design 123 Queen St. W. Canada & Alaska: Scott T. Duff of Canada - SPG fee 5% folio (4.1% blended - management Toronto, ON M5H 2M9 - expansion planned in assessment) - purchasing 416-361-1000 Edmonton and Calgary - marketing fee 1.325% GRR - site location westin.com airport areas - reservations fee 0.8% GRR, plus - site review and analysis $8.65/room/month - staff training - licence fee 7% GRR - supplies - food-and-beverage fee 3% of gross F&B revenue - sales fee 0.675% GRR

hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 29 The 2016 Franchise Report

SUPERIOR LODGING CORP.

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

MICROTEL INN Chairman: Marc Staniloff - 13 properties in Canada - initial franchise fee $40,000 - advertising/marketing & SUITES BY COO: Eric Watson (four franchised) - advertising fee 2% - design WYNDHAM - properties under construc- - royalty fee 6% - lease negotiation MasterBuilt Hotels Ltd., tion in Fort McMurray, - management a division of Superior Alta. and Sudbury, Ont. - purchasing Lodging Corp. More than 20 in develop- - site location Master Territorial ment planning stages - staff training Developer in Canada - supplies (Wyndham Hotel Group) 1060 7th St. S.W., Ste. 200 Calgary, AB T2R 0C4 403-543-8800 masterbuilthotels.com

SUPER 8 HOTELS President & CEO: Marc Staniloff - established in 1975 - initial franchise fee $21,000 - advertising/marketing Superior Lodging Corp., VP Franchising & Development: - 132 properties in Canada - royalty fee 5% - design Master Territorial Developer Nigel Lucas - plans to add six properties - advertising fee 3% - lease negotiation in Canada in 2016 - management (Wyndham Hotel Group) - purchasing 1060 7th St. S.W., Ste. 200 - site location Calgary, AB T2R 0C4 - staff training 403-543-8800 - supplies superiorlodgingcorp.com

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SUPERIOR LODGING CORP. (Ctd.)

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

THRIFTLODGE President: Marc Staniloff - established in 1945 in the - initial franchise fee $20,000 to $25,000 - advertising/marketing Superior Lodging VP, Operations: Trevor Hagel U.S.; Canadian operations - advertising fee 3.25% - annual conference Development TL Corporation VP Franchising & Development: established in 1992 - royalty fee 3.25% - loyalty program (Wyndham Hotel Group) Nigel Lucas in Alberta - opening and training 609 14th Street N.W., - nine franchised properties support Ste. 201 in Canada - purchasing Calgary, AB T2N 2A1 - plans to increase the brand - quality assurance 800-646-2435 portfolio by more than 40 - staff training travelodge.ca per cent net growth, with a concentration on secondary and tertiary markets

TRAVELODGE, President: Marc Staniloff - established in 1945 in the - initial franchise fee $20,000 to $35,000 - advertising/marketing TRAVELODGE HOTELS VP, Operations: Trevor Hagel U.S.; Canadian operations - royalty fee 4.25% - annual conference Superior Lodging VP Franchising & Development: established in 1992 - advertising fee 4.25% - loyalty program Development TL Corporation Nigel Lucas in Alberta - opening and training (Wyndham Hotel Group) - 88 franchised properties support 609 14th Street N.W., in Canada - partnership synergies Ste. 201 - plans to increase brand - purchasing Calgary, AB T2N 2A1 portfolio by more than 15 - quality assurance 800-646-2435 per cent net growth, with a - staff training travelodge.ca concentration on secondary and tertiary markets

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32 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com

Untitled-3 1 2015-02-18 10:52 AM CNM.indd 1 2015-12-21 1:51 PM The 2016 Franchise Report

VANTAGE HOSPITALITY GROUP, INC.

antage Hospitality is voyaging into what it dubs the “upper-economy boutique” segment, with the launch of Signa- ture Inn in Canada and two additional economy brands. Since acquiring America’s Best VFranchising, Inc.’s hotel brands, including America’s Best Inns & Suites, Country Hearth Inns & Suites, Jameson Inn, Jameson Suites, Signature Inn, and 3 Palms Hotels & Resorts last year, Vantage Hospitality is set to expand its core offerings as well as launch Country Hearth Inn & Suites, a deluxe economy brand; Jameson Inn & Suites, which boasts a southern colonial feel; as well as Signature Inn in Canada. While the Vantage franchising team is busily adding up to seven units under each brand in 2016, rapid expansion is also taking place in China, India, Indonesia and South Korea.

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

CANADAS BEST CEO, President & Founder: - established in 1999 in Coral - initial franchise fee and application fee - advertising VALUE INN Roger Bloss Springs, Fla. $11,500 for up to 50 rooms; 51+ rooms: - design 3300 North University Dr., Group President, International - 34 properties in Canada (all $150 per room (one-time fee) - financial assistance Ste. 500 Development: Bill Hanley franchised); 1,000 Americas - marketing fee $15/room/month ($600 available Coral Springs, FL 33065 Best Value Inn properties monthly minimum) - lease negotiation 877-311-2378 outside Canada - monthly fees: first 50 rooms $21.50/ - management joincbvi.com - plans to open 10 to 15 room/month; 51 to 75 rooms $17.50/ - purchasing properties in Canada room/month; 76+ rooms $16.50/room/ - site location month ($860 monthly minimum) - staff training - supplies

COUNTRY HEARTH - no properties in Canada; 60 - initial franchise fee and application fee - advertising/marketing INN & SUITES outside of Canada $8,500, plus $100/room for more than - design 3300 North University Dr., - plans to open five to seven 50 rooms - financial assistance Ste. 500 properties in Canada - marketing fee $12/room/month ($480 available Coral Springs, FL 33065 monthly minimum) - lease negotiation 877-311-2378 - monthly fees: first 50 rooms $17.50/ - management joinvhg.com room/month; next 25 rooms $13.50/ - purchasing room/month; 75+ rooms $12.50/room/ - site location month ($700 monthly minimum) - staff training - supplies

JAMESON INN - no properties in Canada; - initial franchise fee and application fee - advertising/marketing & SUITES 24 outside of Canada $22,000, plus $150/room for more than - design 3300 North University Dr., - plans to open five to seven 60 rooms - financial assistance Ste. 500 properties in Canada - marketing fee $18/room/month ($1,050 available Coral Springs, FL 33065 monthly minimum) - lease negotiation 877-311-2378 - monthly fees $30/room/month - management joinvantagetoday.com or 4% GRR ($1,650 monthly minimum) - purchasing - site location - staff training - supplies

hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 33 The 2016 Franchise Report

VANTAGE HOSPITALITY GROUP, INC. (Ctd.)

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

LEXINGTON CEO, President and Founder: - established in 2007 in Coral - initial franchise fee $30,000 for up to - advertising/marketing BY VANTAGE Roger Bloss Springs, Fla. 80 rooms; $200/each additional room - design 3300 North University Dr., Group President, International - one property in Canada (one-time fee) - financial assistance Ste. 500 Development: Bill Hanley (franchised); 30 outside - marketing fee $23/room/month available Coral Springs, FL 33065 of Canada - monthly fees $35/room/month or 4% - lease negotiation 877-311-2378 - plans to open five to seven GRR ($2,800 monthly minimum) - management joinlexington.com properties in Canada - purchasing - site location - staff training - supplies

SIGNATURE INN - no properties in Canada; - initial franchise fee and application fee - advertising/marketing 3300 North University Dr., two outside of Canada $21,500, plus $125/room for more than - design Ste. 500 - plans to expand throughout 60 rooms - financial assistance Coral Springs, FL 33065 the country in 2016 with - marketing fee $16/room/month ($960 available 877-311-2378 the addition of five to monthly minimum) - lease negotiation joinvhg.com seven properties - monthly fees $23.50/room/month or - management 4% GRR ($1,410 monthly minimum) - purchasing - site location - staff training - supplies

WYNDHAM HOTEL GROUP

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

HOWARD JOHNSON Executive Vice-President and Chief - established in 1954 - initial franchise fee $35,000 or - advertising/marketing 22 Sylvan Way Development Officer: Chip Ohlsson - 48 properties in Canada $350/room - design Parsippany, NJ 07054 (all franchised); 355 outside - total investment $161,670 - financial assistance 973-753-6000 of Canada to $8,721,400 available hojo.com - marketing fee 4% GRR (includes - purchasing marketing and room sales charge) - staff training - royalty fee 4.5% GRR - supplies

KNIGHTS INN - established in 1972 - initial franchise fee $7,000 - advertising/marketing 22 Sylvan Way - 33 properties in Canada - total investment $109,000 - design Parsippany, NJ 07054 (all franchised); 350 outside to $7,406,300 - financial assistance 973-753-6000 of Canada - reservation fee $4 per room booked available knightsinn.com through the central reservation system. - purchasing Includes the chain and its loyalty pro- - staff training gram’s toll-free telephone numbers - supplies and websites - royalty fee up to 50 guestrooms $25 per guestroom per month (flat rate); more than 50 guestrooms: flat rate or 5% of gross room revenues

RAMADA - established in 1954 - initial franchise fee $35,000 - advertising/marketing 22 Sylvan Way - 76 properties in Canada (all or $350/room - design Parsippany, NJ 07054 franchised); 762 outside - total investment $195,670 - financial assistance 973-753-6000 of Canada to $6,494,277 available ramada.com - advertising fee 4% GRR (4% of gross - purchasing room revenues consists of marketing - staff training contribution of 2% of gross room rev- - supplies enues and basic reservation fee of 2% of gross room revenues) - royalty fee 4.5% GRR

34 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com The 2016 Franchise Report

WYNDHAM HOTEL GROUP (Ctd.)

BRAND NAME CONTACT HISTORY, PLANS FRANCHISE FEES SERVICES

TRYP BY WYNDHAM Executive Vice-President and Chief - established in 1975 in Spain - initial franchise fee $35,000 or - advertising/marketing 22 Sylvan Way Development Officer: Chip Ohlsson - one property in Canada $300/room - design Parsippany, NJ 07054 (franchised); 121 outside - total investment $1,284,641 - financial assistance 973-753-6000 of Canada to $22,911,446 available tryphotels.com - advertising fee 3% GRR - purchasing - royalty fee 5% GRR - staff training - supplies

WINGATE - established in 1996 - initial franchise fee $36,000 or - advertising/marketing BY WYNDHAM - 76 properties in Canada $360/room - design 22 Sylvan Way (all franchised); 762 outside - total investment $6,857,170 - financial assistance Parsippany, NJ 07054 of Canada to $10,595,500 available 973-753-6000 - advertising fee 4% GRR - purchasing wingate.com - royalty fee 4.5% GRR - staff training - supplies

WYNDHAM HOTELS - established in 1981 in Texas - initial franchise fee $300/room - advertising/marketing AND RESORTS - one property in Canada; 209 with minimum of $35,000 for - design 22 Sylvan Way outside of Canada Wyndham Garden tier; $50,000 for - financial assistance Parsippany, NJ 07054 a Wyndham Hotel available 973-753-6000 - total investment $1,060,070 to - purchasing wyndham.com $65,010,300 (Wyndham Hotel); - staff training $564,470 to $19,199,170 (Wyndham - supplies Garden Hotel) - advertising fee 3% includes global sales fee - royalty fee 5% GRR

*For Days Inns · Hotels · Suites, see Realstar Hospitality *Microtel Inn & Suites, Super 8 Hotels, Thriftlodge and Travelodge, see Superior Lodging Corp.

hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 35

TRENDS

DOUBLING

UP As the dual-branded segment heats up, Canadian developers are taking notice of the t may be difficult to imagine Hilton and Hampton Inn by Hilton opportunities afforded by the benefits of building and Halifax Downtown. It followed with powerful brand combos operating not just one, but two an additional dual-branded Hilton entirely separate concepts on complex in west Edmonton; a three- BY JENNIFER FEBBRARO a single plot of land, but Brian flag hotel is also in the development IStanford, senior managing director stage in Calgary. Superior Lodging at CBRE Hotels, says a handful of Corp. recently put the finishing innovative companies are reaping the touches on its first dual-branded benefits of the dual-branded model in December and opened hotel model, which is slowly the Courtyard by Marriott and coming of age in Canada. Residence Inn in Calgary. “It’s fair to say that three The dual-branded model can or four years ago, we weren’t attract different clientele and meet having this discussion, but the increased demand for extended- it’s looked at much more stay facilities. “The reality is, a brand frequently in the Canadian does better if it hosts two separate hospitality [sector] today,” says offerings than it would if it embraced Stanford. During the past few any singular concept,” says Stanford. years, a handful of compa- “Within the same company, you can nies have broken ground merge operating synergies to share LEADER OF THE PACK Bayview across the country. Vancouver- on costs,” he adds. That flexibility Hospitality premiered one of the industry’s based SilverBirch Hotels & Resorts can save labour costs through shared first dual-branded hotels in 2010 with introduced the first dual-branded spaces such as fitness and recreation the opening of the Homewood Suites and hotel to Atlantic Canada, with the facilities, meeting rooms and even Hampton Inn in Toronto opening of the Homewood Suites by the front-desk. While RevPAR stats

JANUARY/FEBRUARY 2016 HOTELIER 37 hoteliermagazine.com TRENDS

DREAM TEAM As Marriott International continues its brand-acquisition spree, it increases its ability to compete within the dual-branded hotel market popular south of the border. The day after announcing it acquired Starwood Hotels & Resorts Worldwide, the don’t exist for the small but growing some degree of discipline to make Marriott team announced a dual-branded market, Stanford says an extend- sure each hotel is swimming in its 18-storey AC Hotel by Marriott and a Le ed-stay hotel will run at a higher own lane,” he says. “You really have Méridien, set to open in 2017. Each brand occupancy and ADR than its select- to make sure that you are maintaining will retain separate lobbies, entrances, service counterpart. the integrity and expectations of each and food-and-beverage facilities. Both are Alnoor Gulamani, president of hotel brand. Food-and-beverage is European-inspired, design-friendly brands: the AC Hotels Denver is the first lifestyle Bayview Hospitality Group in Toron- separate, for example.” The Hampton brand of its kind opening in the city and will to, was one of the first on the scene Inn offers a complimentary break- cater to an urban demographic, while Le in 2010, launching the 254-room fast as well as a grab-and-go breakfast Méridien will provide a luxury experience Homewood Suites and Hampton Inn bag, whereas the Homewood Suites (the hotel has its own 24-hour curated Hilton dual-branded project near the features a communal dining area for soundtrack and a signature scent), as well Toronto Pearson International Airport. multiple dayparts. as more than 8,000 sq. ft. of shared guest “There’s a lot of pressure on devel- Gulamani also emphasizes the space, including several large meeting opers with the increasing cost of land importance of maintaining competi- rooms and a 5,000-sq.-ft. ballroom. in addition to opening costs,” says tive pricing. “You have to be careful Other brands are taking the phrase Gulamani. “This concept grants hotels not to offer a discount as a knee-jerk ‘mixed-use’ to a whole other level. Hilton a new way to market two separate reaction to the market,” he explains. Worldwide and Hyatt have teamed to open a dual-branded Canopy by Hilton and Hyatt concepts so they can get a maximum “A Homewood Suite price cannot Recent conversion: Days Inn - Vermilion House, both of which will be managed and yield from the site.” He estimates the ever dip below the Hampton Inn price operated by Concord Hospitality Enterprises company saved about 15 per cent in or you lose that price integrity. So Company. The 413-key property is located construction costs and continues to that challenge means always pricing at The Wharf in Washington, D.C. The com- decrease annual operating fees by 20 with the combo of brands in mind.” bined hotels will include a café-bar, 1,100-sq.- per cent by sharing staff and amenities Given the juggling act of balanc- ft. fitness centre, an outdoor pool and roof- between the facilities. ing each brand, it’s no surprise that top bar. The hotels will open in fall 2017. It hosts separate buildings, lobbies some operators are waiting and watch- and front desks but shares a number of ing the market’s reaction. Brian services, including the pool, meeting Leon, managing director at Choice rooms and fitness centre in a central Hotels Canada in Mississauga, Ont., CONVERSION SUCCESS building connecting the two towers. is keen to capitalize on the opportu- The challenge is coordinating nity. “While we don’t currently have STARTS HERE. operations between the two properties any dual-branded hotels in Canada, and training hotel employees on the there are a number of recent Sleep Ready for a change? Our Canadian-based support different brand standards. “It takes Inn/Mainstay Suites open or under team is here to help you every step of the way. 416.966.8387 38 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com [email protected]

Untitled-1 1 2015-12-18 8:26 AM TOGETHER WE’RE BETTER Easton’s Group of Hotels and Superior Lodging Corp. have identified several opportunities for dual-branded hotels in markets such as Markham, Ont. and Calgary

development in the U.S. It’s an area where there was a huge demand for Other savings are found in shared of interest to us in Canada, both as extended-stay,” says Gupta. “But that laundry services, since luxury bedding a way to broaden guest appeal and to includes extra costs for the developer: is provided by both individual brands. create synergies from a standpoint of the suites are not only bigger, but you But, when it comes to food-and- construction and operational costs.” have the cost of a fridge running all beverage, Gupta agrees it was wise Leon says Choice Hotels is still the time and appliances. It’s almost to keep the brands separate. “Each figuring out which brands will work like running a home in a single has its own kitchen and eating area,” best together within the Canadian room.” explains Gupta. “It’s just much easier market. “We’ve got a huge range of What makes the concept unique for staff. But also, each brand has its brands within our system, so from our is both brands exist within a single own dining plan.” TownePlace Suites standpoint, it’s on our radar, but we vertical tower. Gupta says it took also offers kitchens, though he notes still need to find the right locations years to convince Marriott to allow “98 per cent of people don’t cook.” and the right brand combo. It’s hard it. “This is something that I have The advantage to the dual-brand- to pass up the cost benefits, so it’s just been working on for 20 years,” laughs ed model is that the extended-stay a matter of time.” Gupta, who notes Marriott’s concerns component elevates occupancy rates. Then there is hospitality magnate focused on the idea of one reception “A transition bed can vary a lot, with Steve Gupta, owner of Easton’s area. The other components of the occupancy rates dipping or dropping, Group of Hotels and the newly property, aside from food-and-bever- especially on Sundays. But when you launched Gupta Group. Last January, age, are shared, from the pool, fitness add an extended-stay brand, your the company opened a Courtyard by centre and lobby. By insisting on one occupancy increases because people Marriott and TownePlace Suites at a reception desk, Gupta says he saved are staying over a long stretch of time. former, underperforming Holiday Inn the hotels hundreds of thousands of This balances out the bigger cost of site. “I noticed a shift in the market dollars in labour. building a fully equipped suite.” u

Recent conversion: Days Inn - Vermilion

CONVERSION SUCCESS STARTS HERE.

Ready for a change? Our Canadian-based support team is here to help you every step of the way. 416.966.8387 [email protected]

Untitled-1 1 2015-12-18 8:26 AM SEGMENT REPORT SWEET RETREATS THE LOW DOLLAR IS DRIVING TOURISM TO THE CANADIAN RESORT-AND-LODGE SECTOR

Theresa Ginter, GM, Nita Lake Lodge, Whistler

40 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com SWEET RETREATSSTORY BY DENISE DEVEAU THE LOW DOLLAR IS DRIVING TOURISM TO THE CANADIAN RESORT-AND-LODGE SECTOR

hatever the competitive in 2015, compared to a relatively steady landscape, resorts and 64-per-cent rate across all segments. lodges continue to hold Stanford believes occupancy could their own as a go-to reach the low 60-per-cent range in option for corporate 2016. “That’s probably as healthy as it Wand group events, as well as coveted can be.” retreats for tourists seeking a full- On the plus side, visitors are spend- service, one-of-a-kind experience. ing more. ADR has increased from “The nature of the business is that $192 to $210 over the past three it has a very strong leisure focus and years, a stronger rate of growth than seasonality,” says Brian Stanford, the overall market, whose ADR senior managing director at CBRE increased from $133 to $143 during Hotels in Toronto. But, the sector only the same period. accounts for 30,000 of the 400,000 Resorts in Western Canada have available rooms in Canada. “There shown the most significant growth are more rooms in Toronto alone than from both an occupancy and rate all the resorts in Canada combined,” standpoint, Stanford notes. “This year, he adds. higher-end destinations like Banff and Occupancy tends to skew lower than Lake Louise have experienced one of the overall average, largely because their best years over the past decade.” of the seasonality of the industry. For The drop in the Canadian dollar example, resort occupancy has grown has attracted international travel- from 54 per cent in 2013 to 59 per cent lers to the resort-and-lodge sector, as

FULL HOUSE It’s not just amenities such as basalt gas fireplaces and bathrooms with soaker tubs driving record-breaking occupancy at the Nita Lake Lodge (pictured), it’s also the low loonie and increased expo-

PHOTOGRAPH OF THERESA GINTER BY MIKE CRANE, IMAGES OF NITA LAKE LODGE COURTESY OF THE RESORT PHOTOGRAPH OF THERESA GINTER BY MIKE CRANE, IMAGES NITA sure in U.S. markets

hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 41 SEGMENT REPORT

well as Canadian tourists looking Since opening in 2008 it has IN FOR THE LONG HAUL to get more value for their dollar. garnered many accolades, including “Because most currencies are tied to being ranked the number-1 resort the U.S. dollar, it’s opening up a lot in Canada by Condé Nast Traveler’s of new markets for resorts, includ- Readers’ Choice Awards. Ameni- ing Asia for west-coast properties,” ties include wellness retreats, on-site Stanford says. yoga, a fitness facility, organic spa, The 77-suite Nita Lake Lodge in nature trail and three restaurants; Whistler recently posted its busiest as well as a range of water and snow summer on record, with occupancy activities from canoeing and kayak- rates reaching as high as 91 per cent ing to snowshoeing. in July, 96 per cent in August and Meanwhile, the growth in mixed- between 80 and 90 per cent from late use development, in which consum- Resorts may not be a high priority on the December through March. Even the ers own a fraction or entire share of new-development front, but that didn’t stop shoulder season rates are a respect- a unit, is a key trend in the resort- Ron Joyce, co-founder of Tim Hortons, from able 50 to 63 per cent. ADR ranges and-lodge segment. “Overall, we’re building Fox Harb’r Resorts in Wallace, N.S. from $220 to $357 during the winter, not seeing a lot of resort properties in 2000. “Ron developed the resort to give and $196 to $270 during the summer. being built. A resort with a decent back to the community,” says Kevin Toth, “We have seen an increase in golf course, spa and amenities would president. “He was from Tatamagouche, visitors from the U.S., mainly from cost $400,000 to $500,000 a room to which is about 20 miles from here. So when Washington State and California,” build. An urban property is less than he retired, he wanted to create economic says Theresa Ginter, GM of the a third of that. With occupancy rates opportunities for the community by building a high-end resort.” lakeside facility. “It is hard to say at 59 per cent this year, it’s impos- Toth says the resort sector is finally see- what exactly made them choose Nita sible to develop a resort, finance it ing some rebound back to pre-recession Lake or why there is an increase, but and generate an ROI based on cash days. “It’s been a long haul in general. I don’t I would confidently say the strong flow. That’s why we’re seeing mixed- think the sector has fully recovered, but U.S. dollar and increased aware- use development,” says Stanford. over the last two years we are seeing some ness through some of the interna- But, while there isn’t a develop- growth on the occupancy and rate side, tional awards we received this year, ment boom, that doesn’t mean which is encouraging for everyone,” he says. along with our consistent TripAdvi- ownership groups aren’t investing in “As one of a very few luxury resorts in sor rating are certainly factors. Our the upkeep of their property. Case the Maritimes, we’re a niche player in a very biggest market to the lodge remains in point: since acquiring Huntsville, big market so we make sure that our facili- the Canadian markets, specifically Ont.’s Deerhurst Resort in 2011, ties and amenities are somewhat unique,” visitors from B.C. that live within a Skyline International has invested Toth says. The 1,100 acre, 87-room property three-hour drive from Whistler.” in significant upgrades. (Of the 430 spans five kilometres of waterfront along the Northumberland Strait and features one of the best golf courses in the country. Other activities include clay-sport shooting, fly and MASTER OF ocean fishing and boating. A high-end spa, CEREMONY wellness facilities and upscale dining add to The Oceanstone Seaside the luxury experience. “We really focused on Resort in Indian Harbour, incentive and high-end corporate groups,” N.S. taps into the events he explains. The strategy is working, given business by executing a that 2015 has been one of the strongest turnkey approach to years for Fox Harb’r. In high season (May to weddings October) the resort runs at about 55-per- cent occupancy with an ADR in the $350- plus range. “We’re certainly seeing demand for a more seamless experience. Customers want us to take care of a lot of activities and amenities,” says Toth. Personalization is also key. “More groups demand healthy dining and accommodation for dietary restrictions. They appreciate resorts that respect and understand that.”

42 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com

SEGMENT REPORT

rooms, Skyline owns 100, and the balance is owned by a third party as part of a rental program.) Recently, the Skyline team announced a $500-million mixed- use community and a new Deerhurst Village Centre, which will add 150 hotel rooms, 45,000 sq. ft. of retail and multiple boutique mixed-use buildings. This is in addition to an investment of $10 million to renovate the Deerhurst Resort with significant upgrades earmarked for its Legacy Hall, Compass Lobby Bar, Pavilion guestrooms, Maple Pub and VISION OF THE FUTURE Skyline International plans to transform Deerhurst Resort in Huntsville, fitness centre, as well as improve- Ont. into a multi-faceted development with expanded hotel capacity and mixed-use buildings ments to the lakeside waterfront. A majority of the development is expected to be completed by 2017. Other niche players don’t neces- The key is executing a turnkey “The village experience is a trend sarily have to go big to create an approach to weddings and tailoring of the future,” says Michael Sneyd, award-winning experience. Susan services to guests. “Now we’re expand- CEO of Skyline International Devel- Wilson, president and partner ing into focusing on groups, retreats opment Inc. in Toronto. “Destina- with Oceanstone Seaside Resort in and small corporate meetings, as well tions like Whistler, Tremblant and Indian Harbour near Halifax says as getaways,” she adds. Blue Mountain are all doing well on the property has garnered a number The hotel operates at about that front. We want to bring that to of industry awards as a destination 55-per-cent occupancy for the year Deerhurst. The truth is, if you’re not of choice for weddings, groups and with summer and fall being the busiest a niche resort, you either have to go leisure travellers. “It’s not a huge seasons. “City-centre occupancy rates big or go out of business.” property. We have 12 units ranging run around 85 per cent,” Wilson The Skyline team is focused on from cottages to inn-style rooms. notes. “That’s who we see as our growing market share, adds Sneyd. But we make connections with the competitors in terms of corporate “There’s a real opportunity to do that people who come. By the time guests groups. The difference, however, is we now given where the Canadian dollar leave, most of them rebook.” Rates can create turnkey experiences with a has gone, because we can promote range from $480 a night in the high high level of service, comfortable beds

M6_FranAds_Hotelier.pdfMuskoka and Deerhurst 1 2015-12-18 to the U.S., 8:28 AMseason for a cottage to $145 for an and a clean environment while guests Europe and around the world.” inn-style room. are surrounded by nature.” u

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Untitled-1 1 2015-12-18 8:29 AM OPERATIONS

STATUS UPDATE

Hoteliers are finding new ways to engage their guests using social-media marketing tools

BY SHANE SCHICK

n many cases, all you need to Below the Drake Hotel Properties’ know about a hotel’s approach marketing communications manager’s to social media can be learned signature are the symbols of nearly through a careful look at its half a dozen popular channels, employees’ email signatures. ranging from Twitter to Instagram. ITake Rachel Yeager as an example. The Drake’s website URL doesn’t even appear until the very end. This positioning speaks volumes about the emphasis on these channels. “It’s a great way to interact with guests, whether accessed social networks last year, they’re dining, staying at with 18.5 million using Facebook and the hotel or coming to an 6.8 million using Twitter. With that event,” Yeager says. “They kind of volume, it’s more important share their experiences with than ever for hotels to consider which us and we can comment channels to use, how they should use on their photos. They can them and the best ways to measure provide feedback and we see the results. what’s popular and trending. CIRCLE OF INFLUENCE It really allows a level of personalization THE SELFIE FACTOR (clockwise from image on far right) Jessica from a marketing perspective.” In an increasingly digital world, Rodrigues, PR manager and Rachel Yeager, It’s also a way to find and interact travellers are conducting online marketing manager at Drake Hotel Properties; Tammy Lucas, managing director of with prospective guests. According to research before they book, and social Advertising at Best Western Hotels & Resorts a study produced by Forum Research media services are one of the many last year, 20 million Canadian users tools that help inform their final hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 45 OPERATIONS

decisions. “The hotel experience, until somebody actually lands at a hotel, is a virtual one,” explains Sarah Kirby-Yung, executive director of Marketing and Communications at Vancouver-based Coast Hotels. “It’s also important from a customer reach perspective, because you need to build new customers and appeal to different demographics.” Unfortunately, traditional advertising may not always be GOING VIRAL Sarah the best way to engage new customers. Customers want to Kirby-Yung, executive consume information that’s less about a brand and more director of Marketing and focused on their own interests. This is what’s become Communications at Coast known as content marketing, and social media is a natural Hotels is behind content- marketing campaigns such as place for it. In fact, Coast Hotels used social media as part the #GreatCoastRoadTrip of a recent content marketing campaign called The Great Coast Road Trip, which invited social-media influencers to embark on a road trip and blog about their experience The same thinking drove a recent YouTube campaign by visiting 21 hotels in 35 days. Coast teamed with influencers Best Western Hotels & Resorts called “Travel Hacks” that such as travel writer Shaun Robertson (15,000 followers on offered advice on everything from storing cash safely during Twitter) and Montreal travel writer Mayssam Samaha (5,200 a trip to preventing dirty shoes from messing up luggage. Twitter followers) to document the month-long endeav- “It’s aligning our brand with what our customers want to or, supplemented by daily blog posts and tweets with the see,” says Tammy Lucas, managing director of Advertising at hashtag #GreatCoastRoadTrip. It also coincided with a the Pheonix-based company. “I believe the social channels, social-media contest whereby readers were challenged to especially with videos, really help shape the personality of a spot the Coast-branded Smartcar, snap a picture and post it brand.” on Facebook, Twitter or Instagram. The Coast team nabbed a 2014 Platinum HSMAI Adrian Award for the campaign. STAMP OF APPROVAL A common social-media challenge is the lack of time to post, coupled with an uncertainty about what to say. Daniel Hebert has a potential solu- WE HAVE THE HOSPITALITY tion for both issues. Hebert is the co-founder of PostBeyond, a social-media company SOLUTIONS YOU NEED Clifton Blake Capital Corp, FSCO: 12649 based in Toronto whose product lets a company provide approved MOREMORE THANTHAN Whether it’s maintenance tasks, content to its employees so they can easily share it on social-media repairs and renovations, or daily platforms. 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And while the use of some social-media Salim Gulamani 647.523.4949 | [email protected] tools doesn’t cost anything (other than employees’ time), Steve Hedington 905.447.7959 | [email protected] Yeager says the Drake has devoted funds to paid campaigns on Facebook in order to target posts to specific types of travellers with laser-sharp precision. “Even a $30 boosted post will see your message travel a lot further than if it’s not boosted,” she says of the strategy that pushes a post higher on a news feed and tracks the number of views. Call 1-800-782-0557 or visit hdsupplysolutions.ca to request your free, full-line catalogue today! 46 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com © 2015 HDS IP Holding, LLC. All Rights Reserved. ADV 14-10758

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ADV-14-10758_Canada_Hotelier_Ad.indd 1 12/16/14 11:41 AM OPERATIONS

“We generally boost posts for events, but we’ve also used BEYOND ‘LIKES’ boosted Facebook posts for hotel promotions, such as March As with any other marketing channel, Break at Drake Devonshire, where we targeted the posts to though, operators wouldn’t be devoting families in the Toronto-Montreal corridor.” effort or time into social media without The other consideration, of course, is how many social seeing some kind of payback. While media services a hotel should be managing at once. Yeager none of the hoteliers interviewed would takes a one-at-a-time approach with specific services but share hard numbers, the metrics can be proactively looks for opportunities to create new content or as varied as the number of potential channels. experiences using emerging social-media platforms. Recent- “If there’s a particular campaign going on we’ll be track- ly, the company set up an account on Snapchat, an image- ing links, the engagement and how that translates into and video-sharing service in which the images disappear bookings,” Kirby-Yung says. after a short time. “Snapchat is an opportunity for a little Lucas suggests the benefits might be tied to the quality of more casual interaction,” she explains. “If we’re having a relationships hotels can build through social media. “Views guest chef dinner, we can offer some behind-the-scenes are important, but it’s more about how they interact with photos. Or we can offer a really quick and fun contest on us,” Lucas says. “We have found a lot of customers are talking Snapchat. It’s a little bit more playful. Each medium has its to us through these channels, where before a lot of people own sort of purpose.” would have picked up the phone.” Of course, not all employees will immediately under- Yeager agrees, attributing its popularity to the speed at stand how to use social tools, which is why Kirby-Yung which hotels can respond to a guest complaint shared on says the tools are managed at the corporate level at Coast Facebook or Twitter. “If someone posts something negative Hotels. Best Western, on the other hand, is pursuing a social- on TripAdvisor, for example, their experience is already in media certification program with social-media management the past, and there may not be a lot you can do about it,” company Hootsuite to arm staff and property owners she says. “It’s great to nip it in the bud right there in real with best practices. time instead.” u

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THERE’S AN APP FOR THAT In the ever-evolving world of mobile apps, there’s a growing opportunity to build customer loyalty

BY AMY BOSTOCK

obile has become an essential part of the Mtravel experience, but as the battle for customer loyalty intensifies, it’s become even more critical to develop a robust, meaningful mobile experience. Beyond reserving a room and co-founder of Toronto-based Loyalty and Co. But it’s or checking in, today’s apps take the customer service important to recognize that business and leisure travellers experience a step further, from highlighting local attrac- have different needs, he adds. “[Choosing a hotel] comes tions and restaurants, to providing service to the customer down to three things: for business travellers it’s corporate before they even step foot inside the property. policy, proximity to clients and whatever loyalty program “If a company makes my life easier, my loyalty is going they’re a part of. For leisure travellers it’s generally price to be inherently stronger,” says Steven Allmen, president and then loyalty.” Therefore, hoteliers need to cater app development to their target market. “If you’re targeting 55+ leisure travellers, a complex app may not be where you need to spend your money.”

STAYING AHEAD OF THE CURVE As technology advances and users’ expectations shift, apps need to constantly evolve. The Four Seasons app is continually updating its offerings based on insights from guests and employees from the brand’s properties around the world. “We are evolving the app using feedback, learnings and trends amongst guest usage,” says Scott Taber, SVP of Rooms at the Toronto-based Four Seasons Hotels and Resorts. “We’re looking to further enhance the platform to offer more personalized service, expanded functionality and additional key languages.” For example, MOBILE CONCIERGE Hotel apps, such as the Starwood Preferred Guest a new dedicated app in simplified Chinese was launched (above) and Four Seasons (top) extend the customer-service experience at the end of November 2015, offering access to hotel beyond the hotel’s borders services and concierge recommendations, with a cultur- hoteliermagazine.com JANUARY/FEBRUARY 2016 HOTELIER 49 EQUIPMENT

ally intuitive look and interface tailored to Chinese guests. includes directions in the customer’s native language. “We Users can access hotel services throughout China and at a believe the seamless integration of service delivery through select number of international hotels. the app will create loyalty and further entrench our brand But keeping ahead of the curve is no easy feat. Lack of promise. These may or may not be incremental revenues, access to technology, shrinking budgets and a knowledge- but it gives us the opportunity to put more of our services gap when it comes to using the data collected by the apps in front of our guests to give them a better suite of choices,” are barriers to the app evolution. “It’s such a fast-changing says Taber. [technology]. If you don’t have all the plumbing connected, The Starwood Preferred Guest (SPG) app is Starwood’s an app’s not going to work. If you do and something breaks fastest-growing digital channel. Since its launch in 2012, down, the app may not work. So I think hotels, like every- usage has increased 90 per cent year-over-year. The state- one else, are really trying to see where the evolution of apps aware SPG app adjusts the app’s look, feel and content is heading. Instead of throwing everything at it all at one depending on whether the user is at the trip-planning stage, time, they are really trying to step their way through it,” says en route or already checked in. It serves as an extension of Allmen. A wise approach, he says, considering how many Starwood’s concierge service, shifting to “Stay” mode when things can go wrong. “In the hotel world, if you have a great members are on-property and serving up local recommen- app experience but walk into the hotel and have a lousy dations about where to eat, drink and visit. “[The app] is experience, I don’t care how good the app was, you’re not an area where we continually look at ways to incorporate going back.” sources of recommendations, both traditional and from guests who have stayed at the hotel before,” says Alyssa GETTING AROUND Waxenberg, VP of Mobile for Starwood Hotels & Resorts. Aside from the ability to book a room, Allmen says discov- ering nearby attractions tops the list of desirable app KEEPING TRACK features. The Four Seasons app offers a “Four Seasons GPS and push notifications are an increasingly popular app Recommends” feature curated by the hotel. Using geoloca- feature and are being utilized in ways ranging from tradition technology, the app pinpoints nearby attractions and tional marketing to traveller safety.

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50 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com EQUIPMENT

THE PRICE OF SUCCESS The Starwood development team dedicated a great deal of Developing, launching and updating hotel time to deciding how and when to deploy push notifications. apps takes time and money, but accord- “We focus on providing alerts with meaningful content that ing to Alyssa Waxenberg, VP of Mobile for is relevant to guests’ travel plans or their loyalty to the SPG Starwood Hotels & Resorts, the ever-grow- program,” says Waxenberg. “For example, guests who have ing importance of mobile applications makes opted-in for push notifications will be sent an invitation to it a crucial investment. When it comes to determining a budget for check-in using SPG Keyless (Starwood’s mobile check-in app development, Steven Allmen, president feature) the day before their stay. We keep them updated as and co-founder of Loyalty and Co., says cost to when they have been checked in and when their room is is dependent on whether operators want a ready. For a guest who we know enjoys spa treatments, we standalone app or to be part of an OTA model may have an offer for a discounted massage at the hotel’s such as hotels.com or Expedia. “The complex- wellness centre.” ity is going to be dependent on whether a More complex apps include information and resources hotel is building it themself or having someone do it for them.” pertaining to traveller safety, such as directions to local hospi- For Arc The Hotel, an Ottawa-based boutique property, limited tals or the Canadian Embassy for those travelling abroad. marketing dollars meant app development took a backseat to other, Allmen says the ability to build in this type of information is more cost-effective initiatives. That is, until U.K.-based Guest Services what will differentiate brands’ apps and create loyalty. Worldwide (GSW) approached director of Sales and Marketing Dean Lake with an offer he couldn’t refuse. GSW would sell advertising Hotel apps are a Mecca for data scientists but is the infor- space on the app to Arc’s preferred partners and like-minded hotel mation being utilized to its full potential? “I think it’s always companies to cover the cost of development. The Arc app, which took a work in progress,” says Allmen. eight months to develop and launched last year, features hotel infor- At Four Seasons, the data collected from the app is used mation as well as the ability to book a room. “We’re trying to meet the to determine enhancements and updates. “The guiding consumer where they’re going, so as many avenues as we can have principle for us is to ensure, as we add features, that they be to get the customer and to provide ease of booking our hotel, the bet- relevant and useful for guests,” says Taber. “It’s not adding ter,” says Lake. features for the sake of it.” u

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HOME SUITE HOME As GM of Edmonton’s Home2 Suites by Hilton, Donica Wilkie-Morrow aims to make guests feel at home

BY ROSANNA CAIRA

s a child growing up in her family’s hotel business in Nova Scotia, Donica AWilkie-Morrow always believed the hotel industry was her natural path. A gradu- ate of the Nova Scotia Community College in Dartmouth, Wilkie-Morrow got her professional start at the historic Digby Pines Resort in Digby, N.S., where she tended bar for three years. “I enjoyed the atmosphere of working at the resort. Everyone was there to enjoy themselves and relax. It was fun and exciting meeting guests from all over the world,” she says. Today, as GM of the Home2 Suites by Hilton in as inside the province for a family getaway.” west Edmonton, Wilkie-Morrow oversees a team of Not surprisingly, guests treat the hotel as their home 22 associates who take care of away from home. “Whether it’s for two nights or eight QUICK QUIPS: 127 rooms (115 studio and 12 months, guests enjoy the ‘Free-to-be-You’ atmosphere and one-bedroom suites). Though culture,” says Wilkie-Morrow. “We get to know our guests Personal Status: Married, and proud owner of two dogs. the hotel flies the Hilton flag, on a personal level and enjoy interacting with them; Hobbies: Golf. “It’s a great her employer is Vancouver-based celebrating birthdays and anniversaries. They become stress reliever when I have a SilverBirch Hotels & Resorts, the part of our Home2 family during their stay.” The hotel great drive. I also like travelling hotel’s management company, is also pet friendly. “Guests who travel with their pets home to visit friends and family. with whom she has worked since are so appreciative of having a place to bring their four- It takes me back to my roots.” 2011. “I’ve been through three legged family members with them when they travel.” Future goal: “Move back to hotel openings for the company, The team is constantly looking to give back to the Nova Scotia to be close to prior to opening Home2,” which community and innovate. In addition to raising more family, and travel more.” opened in July 2014. “It’s the than $10,000 for the local Humane Society, the hotel first Home2 Suites by Hilton in also launched the “I am Sales” program in March to Canada,” explains the hotelier. “It’s a true extended-stay drive business leads. “The results have been impres- property, with a full fridge, microwave, dishwasher and sive for such a new program. Our front desk team has PHOTOGRAPHY BY STEPHANIE CRAGG induction units for guests to cook in their studios.” The produced over 99 leads since starting the program and hotel also offers amenities such as a saline pool, BBQ the conversion rate has been over 41 per cent with patio and front patio with a fire bowl where guests can future extended-stay business.” sit, relax and socialize. Wilkie-Morrow says it’s important to differentiate The hotel’s clientele includes those who have relocat- yourself from the rest of the pack. “It’s about service ed to new jobs and are looking for housing; clients on and making sure you’re ready and capable of meeting training or project work; and guests who travel into the guest needs. It’s about making things right for guests city on a monthly basis. “They come from all over, as when they’re having a bad day, even if it may have far away as the U.K., Australia and the U.S., to as close nothing to do with your hotel. u

52 JANUARY/FEBRUARY 2016 HOTELIER hoteliermagazine.com WHY I CHOOSE WYNDHAM HOTEL GROUP TO BE MY PARTNER

“My relationship with Wyndham Hotel Group began in 1992 with a single Super 8 in Calgary. Since then we have opened more than 150 Super 8 hotels and have recently added Microtel to our portfolio. We worked together to develop a prototype that was good for Canada, and Wyndham Hotel Group was very receptive to our input. Throughout this partnership they have been consistent, supportive and understanding of our goals. With plans to open 75 more Microtels in Canada over the next 25 years, our future is ﬁrmly with Wyndham Hotel Group.”

Marc Stanilo President and CEO Superior Lodging Corp. Calgary, Canada

For further information call (888) 223-4680 or visit us at www.whgdevelopment.com

This is not an oer. Federal and certain state laws regulate the oer and sale of franchises. An oer will only be made in compliance with those laws and regulations, which may require we provide you with a Franchise Disclosure Document, a copy of which can be obtained by contacting Wyndham Hotel Group at 22 Sylvan Way, Parsippany, NJ 07054. All hotels are independently owned and operated with the exception of certain hotels managed or owned by an aliate of the company. © 2016 Wyndham Hotel Group, LLC. All rights reserved. Element Hotels BUILD BETTER

With a rapidly expanding portfolio, Element Hotels is transforming the select service segment. Sustainable modern design and an innovative guest experience resonate with today’s traveler and help deliver strong returns for owners. With updated room types and new flexible options for conversion and adaptive reuse, as well as a reduced cost to build, the time to build is now.