OUR ANNUAL TOP 50 REPORT

THE MAGAZINE FOR EXECUTIVES // JULY/AUGUST 2012 $20

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Volume 24, Number 5 // July/August 2012 Cont ents

Features

12 STANDING PROUD After a slow start, the industry’s Top 50 enjoyed a solid 2011 By Laura Pratt Scan to view our website 30 THE NEW NORMAL It’s out with the dull hotel restaurants and in with chef-driven dining destinations By Adrian Bell

38 CHIC MAGNET Hotelier magazine surveyed and suppliers to learn about the bedding, linen and drapery trends driving guestroom design By Jackie Sloat-Spencer

45 SAFE HAVENS High security means low anxiety for Canadian hoteliers By Denise Deveau

48 WI-FI OR DIE Hoteliers charging guests for Internet access could Departments be dead in the water By Larry Mogelonsky 2 EDITOR’S PAGE 3 CHECKING IN 52 HOTELIER: Andrew Torriani, ON THE COVER: The Ritz-Carlton, Montreal Westmont Hospitality’s Kenny Gibson ( left) , Four Season’s Katie Taylor (centre) and Fairmont Hotel’s Michael Glennie ( right) Illustrated by Adrian Lubbers hoteliermagazine.com JULY/AUGUST 2012 HOTELIER 1 EDITOR’S PAGE ALL ABOUT RATES peak to any hotelier and the issue that consistently surfaces is the challenge of Smoving rates to the level they need to be. Whether we’re speaking about a limited- MITCH KOSTUCH | PRESIDENT & GROUP PUBLISHER service hotel or a luxury property, hoteliers [email protected] around the world are finding it virtually im - ROSANNA CAIRA | EDITOR & PUBLISHER possible to raise hotel rates. Given the industry rcaira@ kostuchmedia.com is recovering from one of its most challenging DAVID HEATH | ART DIRECTOR recessions, the issue has become even more dheath@ kostuchmedia.com

precarious. How can you justify raising rates BRIANNE BINELLI | ASSOCIATE EDITOR when occupancy levels are mediocre at best, bbinelli@ kostuchmedia.com ADRIAN BELL | ASSOCIATE EDITOR and when consumers expect frugality at abell@ kostuchmedia.com every turn? JACKIE SLOAT-SPENCER | ASSISTANT EDITOR jsloat-spencer@ kostuchmedia.com Now, a recent study by l’Ecole Hôtelière de Lausanne (Switzerland) and MAYA TCHERNINA | WEB COMMUNICATIONS RateTiger substantiates that reality, stating rate parity is the key factor af - SPECIALIST fecting hotels’ distribution and revenue strategies today. The study suggests mtchernina@ kostuchmedia.com

hotels are neglecting the fundamentals of revenue management with an eye DEREK RAE | PRODUCTION to alternative distribution techniques. MANAGER drae@ kostuchmedia.com The study found revenue managers are using channel-management tools BRENDA JAMES | SENIOR and price-shopping reports, up to 11 times a day, on average, to drive revenue ACCOUNT MANAGER on their main channels. “However, as they struggle to maintain price consis - bjames@ kostuchmedia.com

tency,” reads the report, “they are seeking new ways to improve exposure, JIM KOSTUCH | DIRECTOR reach new markets and increase direct bookings.” jkostuch@ kostuchmedia.com According to Horatiu Tudori, senior lecturer, Revenue Management, Ecole ELSIE REDEKOPP | ACCOUNTING Hôtelière de Lausanne, “Retail sites are continuously monitoring rate parity, eredekopp@ kostuchmedia.com placing a lot of pressure on hotels to update rates on their channels.” This, in TINA DIMITROPOULOS | EXECUTIVE ASSISTANT turn, is forcing hoteliers to spend more time managing rate parity and ensuring tinadim@ kostuchmedia.com rate integrity, and consequently taking them away from defining more sophisti - ADVISORY BOARD: cated strategies to reduce the cost of distribution and increase RevPAR. David McMillan , Tracy Sherren , PACRIM Fuelling these changes is the fact that OTAs are getting bigger and in - HOSPITALITY SERVICES, Charles Suddaby , CUSHMAN & WAKEFIELD LTD., Bill Stone , creasingly influential. “We cannot fight against them, so we are trying to find CBRE, Joe Collura , HOTELEVISION CANADA some other ways of communicating our offerings and being exposed on the LTD., W. Lyle Hall, HALL HOSPITALITY web,” reads the study. ADVISORS, INC. , David Larone , PKF, Henry Wu , Rate parity and the burgeoning power of OTAs is forcing hoteliers to source METROPOLITAN HOTELS, Stephen Renard , RENARD INTERNATIONAL HOSPITALITY, new revenue and booking streams. According to the study, hoteliers are now Stephen Foster , HOTELS, focusing on direct sales by developing new corporate contracts, better promot - Michael Haywood, Anne Larcade , SEQUEL ing their own web sales and maintaining faster availability and rates on non- HOTELS & RESORTS

conventional distribution channels to stay ahead of the game. HOTELIER is published eight times a year by Kostuch Clearly it’s a pressing issue, and one that needs to be addressed quickly. As Media Ltd., 23 Lesmill Rd., Suite 101, Toronto, Ont ., John O’Neill, president and CEO of -based O’Neill Hotels and M3B 3P6, (416) 447-0888, Fax (416) 447-5333. All rights Resorts, says in this month’s Top 50 overview ( see story on p. 12 ). “Rate reserved. Subscription rates: Canada: $25 per year, single issue $4, U.S.A.: $30 one year; all other countries $40 per year. growth has not kept up with the increase in expenses, and it’s in the industry’ s Canadian Publication Mail Product Sales Agreement best interest to charge an appropriate amount for the services we provide. #40063470. Member of: Canadian Circulations Audit That will allow hotel owners a chance to re-invest in their product and keep Board, the American Business Media and the Canadian it in top condition. In that case, everyone wins ... including the guest.” Business Press. We acknowledge the financial support of the Government of Canada, through the Canadian ROSANNA CAIRA Periodical Fund (CPF) for our publishing activities. Printed in Canada on recycled stock. Editor and Publisher [email protected]

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2 JULY/AUGUST 2012 HOTELIER hoteliermagazine.com CheckingTHE LATEST INDUSTRY NEWS FOR HOTEL EXECUTIVES FROM CANADA AND AR InOUND THE WORLD

WELCOMING THE WORLD Hospitality associations hold AGMs in Toronto BY ROSANNA CAIRA

The Ripley Aquarium

t was a day to bid farewell to outgoing chairs, welcom e Dwight Duncan, finance minister, followed Mundell’s incoming ones and chart a future course for three of address, stressing the vital role tourism plays in t he Ontario IOntario’s key associations. Last month, ORHMA, the economy. The minister also broached the controversial sub - Greater Toronto Hotel Association (GTHA) and Tourism ject of casinos. “Gaming is here, and it’s here to stay,” he Toronto hosted their respective AGMs at the Metro said. “The question is how do we enhance expansion and Toronto Convention Centre. consolidation of gaming? We want to put casinos where cus - First up to bat was the GTHA, which bid farewell to tomers are,” he told a room full of hoteliers. “[But] We won’t outgoing chair Andy Loges, GM, Hilton Airport, and wel - impose anything on a community that doesn’t want it.” comed new chair Robert Houssez of the Delta Meadowvale. At ORHMA’s AGM next door, the association wel - It’s been a busy year for the association as it dealt with leg - comed incoming chair Darren Sim, of A&W Foodser - islative changes to special occasion permits and worked vices of Canada. Sim replaced David Blades of . through modernization of beverage rules as well as the in - Later that afternoon, Tourism Toronto’s AGM attracted troduction of accessibility legislation. But, most of the talk 800 industry stakeholders. Citing statistics that show at the AGMs was about tourism. In recent months the as - tourism in Toronto is rebounding, David Whittaker, presi - sociations have been working to put a mechanism in place dent and CEO, said 2011 was a banner year for tourism . For to continue the work of the Destination Marketing Fund the first time, hotels surpassed nine-million room nights sold (DMF), which was wiped out by the introduction of 13 per and visitor spending was a record $4.6 billion. The city’s oc - cent HST on guestrooms. “We need to establish a DMF to cupancy rate continues to rank in the top 10 in North sustain the long-term funding of our sales and marketing America, with record occupancy levels this past February. efforts,” said Houssez in his opening address. After years of inactivity on the infrastructure f ront, Terry Mundell, president and CEO of the GTHA, de - today there is a wealth of activity in the city. “The opening livered an impassioned plea for continued DMF. “We of four new hotels is unprecedented in North America, have $7.5 million to market Toronto, Mississauga and with the exception of New York,” said Whittaker. Other Brampton. But do we think we can survive on $7.5 mil - highlights include the completion of renovations to Union lion these days, in this market, where competition is so Station; the revitalization of Ontario Place, set for 2017; fierce? Seven and a half million doesn’t make us competi - and the opening of the Ripley’s Aquarium ( above ) at the tive, it makes us irrelevant,” said Mundell, pointing to foot of the CN Tower, slated to open in 2013. And, with events such as 9/11 and SARS, which impacted the city’s the city set to host the Pan Am Games in 2015, there’s a ability to attract guests to the GTA. feeling of renewed optimism. “Toronto is continuing to Interestingly, Toronto’s DMF was born in 2004 in an ef - emerge as a major destination to meet in; it’s not the time fort to deal with the impact of those two casualties. “The to take our foot off the pedal,” warned Whittaker. hotel industry is being asked to lead. Let’s not be afraid to In concluding the AGM, Whittaker thanked David take that step,” said Mundell. “Standing still is not an op - Ogilvie of Starwood Hotels for his efforts during his term tion,” he added, imploring the hotel industry to make the as chair before welcoming Johanne Belanger, president of decision to implement the voluntary fee. AVW Telav as incoming chair. N hoteliermagazine.com JULY/AUGUST 2012 HOTELIER 3 COMMITMENT P TO CLEAN H O T O G R A P

Best Western International H Y

has introduced its “I Care Clean” C O U

program. The program, which R T E

will be launched later this year, S Y

mandates all of the brand’s O F

hotels in North America use W Y ultraviolet light (UV) inspection N D H

Now black lights and UV sterilization A M

wands as part of the daily H

Open O in-room cleaning process. T E L Sometimes known as ultraviolet S One of the latest hotels to land in Niagara Falls, Ont. is Wynd - germicidal irradiation (UVGI), the process has been successful ham’s Garden Fallsview, Niagara Falls. The 152-room property is in hospitals to detect and destroy owned by Canop Investments and features an on-site Perkins micro-organisms not visible to Restaurant and Bakery, offering breakfast, lunch and dinner. The the naked eye. A pilot project hotel — both business and family friendly — boasts an indoor was successfully implemented at heated pool and hot tub, 24-hour fitness centre and arcade. The select hotel properties across North America, garnering high hotel offers expansive views of both the honeymoon city and the guest satisfaction scores in Niagara River. Coupled with its proximity to local tourist desti - room cleanliness. Ron Pohl, nations, the hotel should fit comfortably in the ever-expanding senior vice-president of Brand region. John Green, brand senior vice-president of Wyndham Management and Member Hotels and Resorts, says the company is “proud to bring the Services, , says the Wyndham brand to Canada — [to] a renowned North-American program is Best Western’s “way of re-engineering housekeeping destination for both business and leisure travel.” efforts to provide superior customer care to each and every one of our guests night in and night out.” ¿»Â» ÈÅÄ»ÈɼÅÈ·ƻȼ»¹Ê·ËĺÈÏŰĿɾƔ Top class results for your laundry. STEAMED ¿»Â»¿ÈÅÄ»ÈÉ·È»ÀËÉÊʾ»ÀŸ¼ÅÈ·ƻȼ»¹ÊŰĿɾƔ¿Ê¾·Í¿º»ȷĽ» EMPLOYEES ż·ÆÆ¿¹·Ê¿ÅÄɼÈÅÿÈÅĿĽÄ·ÆÁ¿ÄÉÊŸ»º¿ĻÄƑʾ»¿ÈÅÄ»ºÊ»Îʿ»É Ϳ·ÂÍ·ÏÉ÷Á»·½Åź¿ÃÆÈ»ÉÉ¿ÅÄƔ

German Engineering. German Quality. Made in Germany. The Rosseau Muskoka Hotel, a J.W. Marriott resort operated by Canadian Niagara Hotels Inc., allegedly threatened to terminate spa employees recently who refused to share tips with the hotel, according to an exclusive report by The Star . “Should continuing your employment with The Rosseau, under this new policy not be acceptable to you, your employ - ment will terminate,” reads a letter allegedly written by Tony Tamburro, the hotel’s GM, and obtained by the Star . According to the Star report, the new hotel mieleprofessional.ca policy would see half of employ - ees gratuities go to the hotel Manufacturer direct Sales + Service available: 1-888-325-3957 ·Ä¹ÅËÌ»ÈƷ·Â½·ÈÏƷºÃÅÄÊÅÄƷÅĺÅÄƷÅÈÅÄÊÅƷ¿Ä½ÉÊÅÄƷÊÊ·Í·ƷÅÄÊÈ»·ÂƷ¿ÄÄ¿Æ»½ with 8.75 per cent to the hotel and 1.25 per cent to administra - tive associates at the spa. ʛ܎¿»Â»܎¿Ã¿Êó»܎ʹʷʸʹƸ܎ʛ܎ʹʷʸʹ܎¿»Â»܎¿Ã¿Ê»º

4 JULY/AUGUST 2012 HOTELIER hoteliermagazine.com Aquanomic™ Laundry Program Because Clean Matters

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P H O T O G R A P H Y

C O U R T E S Y

O F

F A I R M O N T

H O T E L S

&

R E S O R T S Fairmont Hotels & Resorts is EASTERN catering more directly to a grow - INFLUENCES ing group of Chinese clientele, with the addition of a Chinese menu program. Now, dishes such as congee and traditional rice por - ridge will be served as breakfast options at Fairmont restaurants. And, hot and cold towels will be offered to guests before and after meals. “Personalization will and always will be a hallmark of the Fairmont experience, so, to that end, we’ve taken the proactive step of expanding our food-and-beverage programming with au - thentic touches that will help make our Chinese guests feel more comfortable and welcome,” said Jean Michel Offe, vice-president of Food and Beverage at Fairmont Hotels & Resorts. P H

MAKING O T O

A SPLASH G R A P H Y

B Y

P A U L

With a design by W A G T

Japanese firm, Super O U I

Potato Co. Ltd., Daniel C Boulud’s Maison Z Boulud opened at the famed Ritz-Carlton in Montre - al. Conveying the comfort and warmth chef Boulud is known for, the restaurant — with GM Cyril Duport at the helm — is quickly becoming known as Montreal’s hot spot for delicious food and wine. Riccardo Bertoli - no, Maison Boulud’s executive chef, lands in Quebec after successful career stops in Italy, London, Paris and Singapore. Bertolino, who says, “cooking is not a job, it’s a life,” also has four Boulud kitchens under his belt.

hoteliermagazine.com THERE’S STRENGTH S U O L

U IN NUMBERS. P O P

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Rooms: 544,000 Y S E T R U

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Y H P

A Ye a rs : 65 R G O T O

H Countries: 30+ P OLYMPIC LOSSES Potential: Unlimited

According to Britain’s Telegraph , the 2012 London Olympics aren’t having a positive impact on hotel rates in the British city. In fact, hotel prices have dipped more than 24 per cent, due to low demand. The newspaper says the average room rate dropped the equivalent of approximately $100 during the games, set to begin July 27. The newspaper, quoting the London 2012 Organizing Committee (LOCOG), reads, “as part of the bid to stage the 2012 Games, LOCOG had reached agreements with hotels to pro - vide it with more than 40,000 rooms, representing more than 600,000 room nights during the period. As part of the deal, the organizing committee promised to return any unwanted rooms back to the hotels so they could sell them in time for the games.” It turns out thousands of rooms have reportedly been returned, and as the Games draw closer, and rooms at “premium rates” aren’t selling, prices are dropping.

A BOOST FOR BOURBON

The Park hotel hosted a Beam bourbon tasting and barbe - cue recently. Joan Monfaredi, executive chef, Park Hyatt, Toronto 905.206.7316 created several dishes for the event, including Black Angus hors choicehotelsfranchise.ca d’oeuvres, a carpaccio starter and three courses using the finest aged beef available. “It’s an opportunity to have everyone taste the different choice cuts, [give] a little education and, ultimately, provide a great evening. Plus bourbon and beef just go togeth er nicely,” said Monfaredi. The main course, a Spring Creek, steroid- and antibiotic-free, 35-day aged tenderloin, was a hit with those in attendance. Beam Global’s ‘whisky ambassador,’ Matt Jones, gave a lively talk about the whisky’s history, culture and market share. “Bourbon is the fastest-growing category at the LCBO,” said Jones. “There used to be six, now there are 36 bour - ® bons at the LCBO.” CHOICE HOTELS CANADA Source: Internal data as of 9/30/10. Data reflects open and underdevelopment properties worldwide. ©2012 Choice Hotels Canada Inc. All rights reserved. hoteliermagazine.com TRACKING CEO TURNOVER InBrief

A study by British-based HVS Executive Search, says turnover of CEOs The city of Richmond, B.C., is under scrutiny amongst the world’s 50 largest hotel companies doubled in 2011. The find - to see whether the city can sustain the 15 ings show that 12 per cent of companies are being led by a new chief exec - hotel builds planned within 20 years. Currentl y utive, compared to 2009. However, the choice of CEOs is becoming more the city has 27 hotels with 5,150 rooms. conservative in the sector, with internal promotions or appointments from “Originally we were going to put a hotel in our development, but I realized that with 16 within the hotel industry becoming more commonplace. Co-authored by hotels potentially coming up in Richmond Chris Mumford and Thomas Mielke, both of HVS Executive Search, the there will be an over supply,” Fairchild Group biennial CEO monitor tracks succession rate, as well as the profiles and owner Thomas Fung told Business in Vancou - demographics of outgoing and incoming CEOs. “During the early days of ver ... The Muskoka Grandview Resort , for - the global economic meltdown we certainly witnessed shareholders and merly the Delta Grandview , is now being boards electing to either stick by their management teams and support managed by The Lodges at Blue Mountain Corporation (LBM ), complete with staff them out of recession, or make a quick change and recruit a CEO suitable restructuring. Sheldon Rosen , founder, The for the tough times ahead,” said Mumford, HVS Executive Search, presi - Lodges at Blue Mountain Corporation, told dent, Europe, Middle East and Africa, one of the study’s authors. “As we Hotelier , “new staff has been hired, [as] previ - look ahead to the next two years we anticipate changes will largely be dri - ous staff who worked for Delta were terminate d ven by economic conditions; a company with financial stability, and an in February 2012.” Rosen’s company has grow n, aggressive growth strategy requires a different leadership skill-set to one in on average, 50 per cent, per year, over the last survival mode,” he added. The study also revealed a change in the typical five years, and he says LBM’s move into Muskoka is exciting. “I’m especially looking profile of a hotel company CEO due to the influx of Chinese companies forward to working with one of the region’s moving into the top 50 largest hotel companies list. Leaders of these com - eminent and favourite resorts — one that panies tend to be younger than their Western counterparts and are typical - carries many traditions and memories for ly first-time CEOs groomed into the role by the chairman or previous CEO. generations of yearly visitors.”

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Congratulations to Marriott Hotels on your 2012 Hotelier “Greatest Dollar Increase” Award. People Chamberlain was honored to Linda Hagen is the new direc - tor of Brand Engagement for add 5 new properties Coast Hotels & Resorts . Previ - to your family ously GM of Coast & Suites , Vancouver, Hagen is this year! responsible for quality assurance and compliance for the Coast Hotels & Resorts’ 41 hotel properties in Canada and the U.S... Patrick Dault is the new Patrick Dault director of Sales and Marketing at W Montreal . He will man - age the transient, group and catering sales as well as market - ing programs for the hotel. Dault was previously the man - ager of Meeting and Conven - tion Sales for Tourisme Mon - treal , and the director of Sales and Marketing at the Derek Damon Ottawa ... Derek Damon is the new food and beverage director at the Rosewood Hotel Georgia in Vancouver. He previously worked at the Rosewood Crescent Hotel and is past owner of the Johnny Rocket franchise in Ari - zona. Qaiser Mian has joined Colliers Interna - tional Hotels as an associate based in Toronto. Mian has held various roles in the hotel real-estate industry since graduating from Ryerson ’s hotel program in 2005. He was most recently part of the Debt Asset Management team at GE Capital Real Estate . He will be working with the Colliers Canadian hotel team on mandates across the country, focusing on financial underwriting and sales assistance... Joe Dias has been appointed GM of Metropolitan Hotel Vancouver . Dias brings more than 17 years of tourism and hospitality ex - perience to his new post. Prior to joining Metro - politan Hotels , he was GM of Hotel Le Soleil in Vancouver. He has also held positions with , O’Neill Hotels and Resorts and ... Tom Brodi , is no longer executive Our team of Architects and Constructors chef of TOCA at the Ritz-Carlton, Toronto . A replacement has yet to be announced. is proud to introduce these new properties to the Marriott Canada Hotels collection: SupplySide B4Checkin , a Halifax-based revenue-maximizing ‡Courtyard, Calgary International Airport, Alberta online booking, communication and feedback soft - ‡5HVLGHQFH,QQ&DOJDU\,QWHUQDWLRQDO$LUSRUW$OEHUWD ware system provider, announced its newest client, Le Crystal Hôtel & Spa in Montreal. “With the ‡)DLUILHOG,QQDQG6XLWHV6W-RKQ·V1HZIRXQGODQG addition of this property, we have our first Canadia n ‡7RZQHSODFH6XLWHV6XGEXU\2QWDULR bilingual customer, and I feel confident others will soon follow,” said Saar Fabrikant , president and ‡&RXUW\DUG+DOLID[1RYD6FRWLD CEO of B4Checkin... Jon Lantz has joined Select Hotel Investment as the new managing director. We look forward to creating many more award winning Previously with PKF , Lantz brings experience in appraisals, valuations, site selection, construction, hotels with you in the future! and equity-funding to his new position. N

www.chamberlainIPD.com P: 905.631.7777 hoteliermagazine.com

Sta ndi ng Proud After a slow start, the industry’s Top 50 enjoyed a solid 2011

BY LAURA PRATT

Westmont Hospitality’s Kenny Gibson ( left) , Four Season’s Katie Taylor ( centre) and Fairmont Hotel’s Michael Glennie ( right)

12 JULY/AUGUST 2012 HOTELIER hoteliermagazine.com THE TOP 50

hile 2011 wasn’t the worst of times, it wasn’t the best of times, either. It was a kind of non-descript year — a clever student who performed admirably, but never quite reached his potential.

WFeeding on the glimmers of an uptick, which bility for this state of affairs. In the larger mar - the industry began to feel in the last quarter of kets, customers are resistant to the whiff of rising 2010, the dawn of 2011 was met with high rates. And there continues to be a lack of confi - hopes. The economy was rebounding, and oper - dence among operators with regard to demand - ational contractions in the latter part of the first ing higher prices. “It’s a mindset,” says Stanford. decade of the new century were being cautious - “There were concerns from the industry’s per - ly eased. In the end, 2011 was a mixed bag, spective that the demand levels weren’t going to meeting expectations on the revenue front but be in place. So even when the demand was failing to nudge rates up to a healthier level. there, [operators] were hesitant to make a move.” The continued recovery, which industry watch - RevPAR, meanwhile, climbed by just 1.5 per ers had predicted on the demand side, failed to cent last year, failing to meet expectations that materialize. And, while 2011 saw modest gains put it closer to four per cent. As this measure is in profit, the bottom-line growth rates of five purely a function of occupancy and ADR it per cent and six per cent industry analysts pre - highlighted the truth: last year’s flagging dicted, fell flat. Not surprisingly, growth was RevPAR was all about rate. minimal. In fact, according to Hotelier ’s Top 50 “The challenge of 2011 has been one of rate,” Report ( see p. 19 ) industry sales rang in at confirms Gopal Rao, vice-president of Sales and $17.0 billion, up 5.5 per cent from last year’s Marketing, IHG, Canada. As an industry, he says, $16.1 billion. this element is still very much in recovery. But he’s hopeful. “Rates always lag occupancy in our RATE CHALLENGE // “The year didn’t end as business. We know it will happen — it’s just that strong as we’d hoped it would,” says Brian Stan - we’d have liked for it to have happened sooner.” ford, director at Toronto-based PKF Consulting. The reality check was due to many factors; the TH E OCCUPY MOVEMENT // The 2011 recovery most significant being the failure of the industry story has been largely predicated on occupancy. to achieve better performance on ADR. Com - For many existing hotels, enhanced occupancy ing off a stretch artificially inflated by the was the direct result of constrained supply. In Olympics, the hotel business in the West had stronger economic times, a two-per-cent to 2.5- no option but to contract. Central and Atlantic per-cent expansion in supply is a reasonable ex - Canada, meanwhile, experienced an at-or- pectation. But the Canadian hotel scene has above inflationary impact and finished the year been relatively muted on this metric lately. And with no more than a one-per-cent rate spike. 2011 was no different, tracking just 1.5 per cent. Nationally, rates fell by about one per cent. It’s about where the economic performance of And, while demand levels are stronger today the industry sits today, says Stanford, who pre - than they were in advance of the economic dicts a one-per-cent supply hike for 2012. “With downturn, the industry has struggled to get its bottom lines not recovering, the economic via - pricing back. bility of projects is tougher, too, and so you Consumers and operators bear equal responsi - don’t see as much supply,” he says. “And banks,

ILLUSTRATION BY ADRIAN LUBBERS

hoteliermagazine.com JULY/AUGUST 2012 HOTELIER 13 MASTERING SUCCESS per cent through 2016 (largely outside of the North American market). “We saw a rebound in 2011,” says While other hotel companies struggled to survive the past year, Marriott Hotels Mike Taylor, director of Public Relations at Fairmont. of Canada was busy opening six new properties. Posting 2011 sales of $598.5 The leisure side of the market had long been healthy, he million, based on 66 units across the country, the operator of such brands as says, but business travel — a key segment for Fairmont — , Fairfield Inns and Springhill Suites, to name but a few, grew spiked 8.1 per cent in volume last year. Taylor points to its sales by $35.9 million, the highest dollar increase on this year’s Top 50 Report. particular improvements in programming to explain Fair - Among the company’s newest ventures are the Ritz-Carlton in Toronto, mont’s progress. Baby boomers and their disposable in - which opened to much hype last summer, the Spring Hill Suites in Vaughan, come means they’re able to travel and keen to sustain an Ont., the Courtyard Marriott West in Edmonton, the Fairfield Inn and Suites, active, healthy lifestyle away from home. The Fairmont Winnipeg and the Fairfield Inn and Suites in Mississauga, Ont. The company also converted a Sheraton in Niagara to the Niagara Falls Marriott. Fit program, which provides loyalty members with work - “Our growth in 2011 can be attributed to RevPAR growth with our existing prop - out garb and complimentary BMW bicycles reflects that erties and the new openings,” explains Manlio Marescotti, vice-president, Lodging trend. And, last year, the company also rolled out an ex - Development, Marriott Hotels of Canada, adding RevPAR growth at existing hotels tension of its lifestyle cuisine program, which is focused was driven primarily by increased corporate travel — both corporate and transient. on sustainable fresh ingredients and offers customized “We had a good year in 2011, no question,” echoes Scott Allison, vice-presi - menus. Guests can now modify their dining needs accord - dent, Canadian Operations for Marriott Hotels of Canada. The company entered ing to dietary and health-related considerations, such as 2011 with the strength of significant improvements. Given that an increasing veganism, gluten intolerance and macrobiotic preferences. number of corporate warriors travel with tablets, the importance of having At number three, Westmont’s sales slipped from $1.4 a wired connection in guestrooms was quickly overshadowed by the need for billion to $900 million last year, but the company shed wireless. As a result, complimentary in-room wireless service is now available several presumably non-performing properties, so the truth across the Marriott brand. Marescotti is confident growth will continue, especially now that business likely belies appearances. Meanwhile, Starwood enjoyed is bouncing back. “We will see an even greater increase to our portfolio. We’ve record growth worldwide last year, swelling from $869 mil - already opened four hotels this year: Courtyard and Residence Inn at Calgary lion to $877 million. In Canada, it added two new hotels Airport, Courtyard in Ottawa East and the Ritz-Carlton in Montreal,” which is and opened its 60th unit (Sheraton Red Deer). It finished now a mixed-use property after being closed for more than two years. The in the top five on the report for the first time, growing other three hotels are new-builds. “We expect to open at least another six by from $673 million to $698 million with 160 properties. year-end,” boasts Marescotti. — Rosanna Caira IHG, which made a choice to beef up its sales force by 25 per cent in the thick of the downturn, also had with existing hotels on the balance sheet that aren’t per - a fairly stellar year, with Canadian sales of $678 million, up forming as well as before, are more cautious [about] lend - from $673 million in 2010. Not insignificantly, it also re- ing to new development.” launched more than 3,200 Holiday Inns globally. But Stanford is less concerned about the shrinking sup - And the list goes on. Best Western unveiled its “de - ply levels. It’s where we are in the cycle, he shrugs. Lenders scriptors program,” giving it new segments to highlight; and developers are slowing down the level of new product Choice opened 17 new hotels in 2011, including five coming into the market — and that’s a good thing. “We’ve new-build properties; and Sandman Inns acquired Sutton come through some erosion in performance, so letting the Place Hotels, inviting curious onlookers to regard the fu - supply-demand balance catch up is a very positive devel - ture for the once small company, with properties at the opment.” Rao agrees the anticipated shift will spawn other lower end of the scale, now scratching out new turf in the consequences. “When demand grows and supply doesn’t mid-luxury arena. grow at the same pace, rates will eventually rise.” THE POWER OF BUSINESS TRAVEL // When it comes to tech - THE GOOD NEWS // Despite the challenges, several operators nology, many of the leaders are striving to be responsive to posted impressive numbers and introduced long lists of guests’ increased expectations. For example, Fairmont’s cor - thoughtful service improvements, thereby commanding porate website now displays multilingual content to support Hotelier ’s Top 50 Report. The Four Seasons, with 86 units growth in new markets; a newly released app allows cus - and estimated sales of $4 billion in 2011 sales — helmed tomers to check in and browse rates from their mobile de - by Katie Taylor, president and CEO — was the top per - vices; and online check-in streamlines guest service. “But former. It introduced a 15-minute room-service menu, high-speed Internet and wireless access continue to be the added a resort in Morocc o and opened new units in the top technology demand,” says Taylor. That’s why every U.S., including Baltimore. The company is poised to Fairmont destination worldwide provides guests free high- launch its highly anticipated Toronto property this fall. speed Internet in their room. The 55-storey Yorkville property, and its 259 five-star guest- IHG credits healthy business travel for a successful year. rooms (including 42 luxury suites) is highly anticipated. IHG’s Rao says the uncertain global economy notwith - Fairmont Hotels and Resorts placed second on the report, standing, there really hasn’t been a slowdown of corporate with sales estimated at $3.5 billion. In 2011, the company travel within the Americas. He dismisses naysayers who unveiled ambitious plans to increase the portfolio by 50 suggest high unemployment rates tell a different story,

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OPPORTUNITY KNOCKS runs the company along with his brother, Rob. “Combined with this, we also see a low level of new hotel supply coming into North America over the next few years.” While acquisitions will be limited to the U.S. market, the company is actively Typically Canadian hoteliers have a reputation for being cautious in their looking to grow the management side of its business in Canada. “To that end, we approach to business. Despite a shaky economy O’Neill Hotels and Resorts surged are currently working on some very interesting opportunities. However, it’s our ahead in 2011. The company grew 52.8 per cent year over year. desire to stay at a small-medium size, regionally focused, for the time being.” “In Canada, we added a resort on Vancouver Island that its bank had fore - O’Neill and his peers now have another challenge to overcome. “[There’s] lack closed on. In the U.S., we added three hotels we purchased — with our equity part - of growth in ADR, and a lack of confidence by some of my fellow hoteliers to ners Sunstone Realty Advisors — due to our perception that values had fallen dra - charge the appropriate rates to cover costs and provide a reasonable ROI for hotel matically since 2008, and that, once hotel fundamentals started improving again, owners,” he says. The hotelier believes “rate growth hasn’t kept up with the values should reach their 2007 levels once again by 2015,” says Rob O’Neill, presi - increase in expenses, and, he says, “it’s in the industry’s best interest to charge an dent and CEO of O’Neill Hotels & Resorts. appropriate amount for the services we provide.” As the affable hotelier says, Clearly, the company’s actions have been strategic in nature. “We bought at “That will allow hotel owners a chance to re-invest in their product and keep it in prices we felt had some attractive upside in the near future,” admits O’Neill, who top condition. In that case, everyone wins ... including the guest.” — Rosanna Caira pointing out that business travel wouldn’ t include the type of people who are un - employed.

ON THE HORIZON // With the year half over, predictions for 2012 remain cau - tiously optimistic. Certainly the first quarter has seen strong performance on a range of measures. In Western Cana - da, where growth has been better than in other parts of the country thanks to the resource sector in Saskatchewan and Alberta, rates were up three per cent by the end of April, and demand Join our Family levels are trending in excess of that. Today! And, wh ile Atlantic Canada is still “ Joining the struggling, Central Canada has seen a Full House Franchise Systems Limited is two-per-cent increase in rate and a Full House Family dedicated to the performance, quality and growth was the best of our brands. one-point surge — approximately — in Howard Johnson decision I’ve is one of the world’s most occupancy in the same period, explains recognized mid-priced hotel brands. Trusted around Stanford. He predicts demand will rise ever made.” the globe, its brand has extraordinary reach and enduring strength. by about 2.5 per cent in 2012, and is known for quality and economy Jaymin Pandit Glen Blake rates will follow at least on a national General Manager President by travellers looking for cleanliness, value and friendly Howard Johnson Inn Full House hospitality. The brand attracts value-conscious Toronto-Scarborough Franchise level, at the same pace. If the industry Tel: 416-913-7184 Systems families, seniors and mid-level business travelers Limited throughout Canada and the US. can pull that off, he says, occupancy With our brands, you receive access to our should grow by one per cent in 2012, resources and programs including: • Wyndham Rewards ® loyalty program and RevPAR will increase in the range • Rate & inventory management strategies of four per cent. The industry’s bottom • Canadian franchise support • Online & property direct training services line, Stanford forecasts, will grow by • Regional & local marketing tools about six per cent, nationally. • National marketing programs • Electronic guest satisfaction surveys Supply levels should signal the up - • Property operation reviews swing portion of the cycle, predicts Rao. • Preferred Alliance Group ’s purchasing power. “Right now, the market is awash with

Find out how you can become part of the money and is really in the mood for Full House Franchise Systems Limited finding good deals,” he says. “There’s no family by filling out an online franchise application at: question the economic chaos in Europe www.fhfsl.ca or contact: [email protected] poses a threat to our business,” says Telephone: 1 (905) 829-4002 Scott Allison, vice-president of Canadi - Toll-free: 1 (800) 249-4656 an Operations for Marriott Hotels of Canada, whose firm is on track to open six to 10 new units in 2012. “If things continue as they’ve been over the last little while, we’ll see continued growth in the hotel industry. ” N

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Visit MarriottDevelopment.com or call Michael Beckley (905-366-5230) or Manlio Marescotti (905-366-5240). M THE TOP 50 ¡ 2012 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Rank Company Units Revenue 2011 Revenue 2010 Business Operations ’12 ’11 2011 (millions) (millions)

1 1 Four Seasons Hotels 86 *‡$4,008.8 $3,892.0 A private corporation that is the world’s leading operator of and Resorts luxury hotels, with a portfolio of 86 hotels and resort properties Toronto, Ont. worldwide, including three in Canada. In 2012, the company plans to open properties in Toronto, Baku, Guangzhou, Shanghai Phdong and St. Petersburg.

2 2 Fairmont Raffles 99 *$3,500.0 $3,000.0 A private company that is the owner/operator of 99 luxury hotels Hotels International and resorts worldwide under the Fairmont Hotels & Resorts, Toronto, Ont. Raffles Hotels & Resorts and Swissôtel Hotels & Resorts brands. The company plans to open 12 new properties this year. (Totals reflect revenues under management )

3 3 Westmont Hospitality 167 $900.0 $1,400.00 A fully integrated hospitality company involved in the manage - Group ment, franchising and ownership of hotel brands, including Mississauga, Ont. Holiday Inns, Comfort Inns, Radisson, Delta, Hilton, , Homewood Suites, Quality Suites and . The compan y operates 167 hotels in Canada.

4 4 Starwood Hotels & 60 $877.0 $869.0 A publicly traded company that owns, operates and franchises 60 Resorts Worldwide, Inc. hotels in Canada under the Sheraton, Westin, Four Points by Stamford, CT. Sheraton, Le Méridien, St. Regis, The Luxury Collection, , Aloft and Element brands as well as Starwood Vacation Ownership, Inc. In 2012/2013, Starwood plans to open two new hotels in Canada, and 78 international units.

5 6 IHG 160 $698.0 $673.0 A publicly traded company with 160 hotels in Canada under the Mississauga, Ont. InterContinental Hotels & Resorts, Crowne Plaza Hotels and Resorts, hotels and hotels, , and in Canada. The company launched two new brands in 2012, including , and Hualuxe Hotels & Resorts, and plans to open 33 new units in Canada.

6 5 Wyndham Hotel 476 $694.0 $684.3 A public company with 476 hotels in Canada and 7,205 hotels Group worldwide including Days Inn, Howard Johnson, Knights Inn, Parsippany, N.J. , , Travelodge, and Wyndham Hotels and Resorts.

7 7 Marriott Hotels of Canada 66 $598.6 $562.6 A public company that operates 66 hotels across the country. In Mississauga, Ont. 2011 the company opened six hotels in Niagara Falls, Ont., Toronto, Edmonton, Winnipeg, Mississauga, Ont. and Vaughan, Ont. In the next year, Marriott plans to open more than 20 units in Canada.

8 8 Best Western 198 $558.5 $550.0 A private company that operates 198 Best Western properties International across Canada. In 2012/2013 Best Western plans to open 35 new Mississauga, Ont. hotels in Canada and 293 globally.

9 8 Delta Hotels & Resorts 42 $536.0 $550.0 Delta Hotels is a private management and franchise company that Toronto, Ont. manages 42 hotels and resorts across Canada. The company is currently undergoing extensive renovations.

10 9 , Inc. 84 $520.0 $483.2 A privately held company that operates 84 hotels across Canada McLean, Va. and 3,759 worldwide. The company plans to open 26 new Hilton branded hotels in Canada.

11 10 Choice Hotels 303 $458.0 $435.0 A private company operating 303 properties across Canada Canada Inc. including Comfort, Comfort Suites, Quality, Sleep Inns, Clarion, Mississauga, Ont. and and Ascend Collection. The company opened 17 new hotels in Canada in 2011, including five new builds. In 2012, Choice plans to open eight hotels.

* Denotes Estimate ‡ Canadian-owned company whose operations outside Canada are reflected in revenues and units hoteliermagazine.com JULY/AUGUST 2012 HOTELIER 19 M THE TOP 50 ¡ 2012 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Rank Company Units Revenue 2011 Revenue 2010 Business Operations ’12 ’11 2011 (millions) (millions)

12 - Oxford Properties 7 $333.0 — Oxford Properties is the owner and operator of seven properties Toronto, Ont. including six Fairmont Hotels & Resorts and the InterContinental Hotel, Toronto.

13 11 Atlific Hotels 49 $292.0 $280.0 A privately owned hotel-management company franchising Montreal, Que. various hotel brands with 49 units in Canada including Holiday Inn, Holiday Inn Express, Crowne Plaza, Renaissance, Marriott, Courtyard by Marriott, Residence Inn by Marriott, Ramada, Quality Inns and a collection of independent hotels and resorts. The company plans to open six hotels in 2012.

14 13 Coast Hotels & Resorts 43 $214.6 $208.3 A private company that owns, manages and franchises 43 proper - Vancouver, B.C. ties, including 31 locations in Canada and 12 worldwide. In 2011 the company opened a new property in , B.C. The company plans to add two new hotels in Canada and two international units in 2012.

15 12 SilverBirch Hotels & 21 $200.0 $235.0 A privately owned company that manages 21 independent and Resorts branded properties in Canada, including Radisson, Crowne Plaza, Vancouver, B.C. Quality, Best Western, Ramada and Hilton. The company recently signed three new franchise agreements with Marriott International.

16 16 Superior Lodging Corp. 136 $178.0 $183.0 A privately held company that owns and franchises 136 Super 8 Calgary, Alta. Canada and Wingate by Wyndham hotels in Canada. The company plans to open 25 new properties in Canada in 2012.

17 19 Fortis Properties 22 $164.2 $159.7 A private company that owns and operates 22 hotels in Canada Corporation under various brands, with 18 franchised units and four indepen - dent brands. The company recently purchased the Hilton Suites Winnipeg Airport, and began construction on Fortis Place in St. John’s, Nfld.

18 17 Sandman Hotel Group 45 $164.0 $166.0 A privately held company owned by Vancouver, B.C. Corporation with 45 hotels in Canada and two international loca - tions. Last year Sandman acquired Sutton Place Hotels in Vancouver and Edmonton. In 2012, the company plans to open 14 properties in Canada.

19 18 Pacrim Hospitality 45 $161.5 $162.0 A privately owned company that operates 45 hotels. Pacrim is the Services Inc. exclusive management company for properties owned by Bedford, N.S. Holloway Lodging REIT.

20 15 Carlson Rezidor 31 *$159.5 *$192.0 A privately owned company that operates 31 properties in Canada Hotel Group and 1,076 worldwide including , Radisson, Park Plaza, Minneapolis, Minn. Park Inn by Radisson, Country Inns & Suites By Carlson and Hotel Missoni. In 2012 the company plans to open six new hotels in Canada.

21 20 Days Inns - Canada 88 $153.1 $144.3 A private company that is a division of Realstar Hotel Services Toronto, Ont. Corp. Days Inns Canada has 88 hotels in Canada. Last year it opened units in High Prairie, Alta., Surrey, B.C., and Toronto, and plans to open hotels in Chetwynd, Golden, and Kamloops, B.C., and Calgary in 2012.

22 21 Canada Inc. 28 $114.6 $104.6 A private corporation that is a subsidiary of Accor S.A. that oper - Mississauga, Ont. ates 28 hotels in Canada under the Novotel, and Studio 6 brands. In 2011, the company opened two Motel 6 units in Brandon and Headingley, Man. In 2012, it plans to open three new proper - ties in Canada.

* Denotes Estimate ‡ Canadian-owned company whose operations outside Canada are reflected in revenues and units

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4:02 PM M THE TOP 50 ¡ 2012 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Rank Company Units Revenue 2011 Revenue 2010 Business Operations ’12 ’11 2011 (millions) (millions)

23 22 Executive Hotels 16 ‡$105.0 $87.8 A privately held company that owns eight units in Canada, and & Resorts franchises five units in Canada. Last year the company added the Vancouver, B.C. Hotel Le Soleil in Vancouver and announced development of a new hotel in New York. The company plans to add one unit in Canada next year.

24 14 Royal Host Inc. 31 $89.6 $92.3 A publicly traded company, which owns, franchises and operates Halifax, N.S. 31 units across Canada, under the Travelodge, Super 8, Holiday Inn, Hilton, and Country Inns & Suites brands. The company also has the Travelodge Canada franchise business, currently com - prised of more than 90 hotels.

25 23 Lakeview Management Inc. 42 ‡$88.2 $85.6 A private company that manages 41 properties in Canada and one Winnipeg, Man. international property under the brands Lakeview Inns and Suites, with 22 units in total, 14 of which are owned by Lakeview Hotel REIT, seven of which are owned by LMI and one owned by an inde - pendent operator. The company has one hotel under construction at the Winnipeg International Airport.

26 24 Holloway Lodging REIT 17 ‡$78.3 $73.4 A Real Estate Investment Trust company that operates 17 proper - Bedford, N.S. ties in Canada and one U.S. property. Brands include Best Western, Holiday Inn, Radisson, Super 8 and Pomeroy.

27 27 Easton’s Group 15 $78.3 $60.2 A privately owned company that owns and operates 15 hotels of Hotels Inc. under the Quality Inn, Courtyard by Marriott, Hilton Garden Inn, Markham, Ont. Residence Inn by Marriott, Townplace Suites and Fairfield Inn & Suites brands.

28 26 Crescent Hotels 13 $73.0 $70.0 A privately owned company that owns, operates and manages 13 & Resorts units in Canada under various brands affiliated with Marriott, IHG, Toronto, Ont. Hyatt, Hilton, Starwood and Wyndham Worldwide.

29 34 O’Neill Hotels & Resorts 7 ‡$69.6 $45.7 A privately held company that manages four properties across Vancouver, B.C. Canada and three outside of Canada under the Westin and Coast brands. The company is undergoing renovation of three properties.

30 25 Skyline Hotels & Resorts 6 $57.7 $71.3 A privately owned company that owns and operates five units in Toronto, Ont. Canada, including Horseshoe Resort, Deerhurst Resort, King Edward Hotel, Cosmopolitan Hotel and Pantages Hotel, with one unit in the U.S.

31 28 Gouverneur Inc. 11 $57.0 $57.0 A privately owned corporation that owns, manages, and is the Montreal, Que. franchisor of 11 hotels, including Gouverneur and Auberge Gouverneur.

32 30 Full House Franchise 91 $56.3 $52.0 A privately owned company that is a subsidiary of Wyndham Systems Limited Worldwide Hotel Group that operates 91 hotels in Canada under Oakville, Ont. the Howard Johnson Canada and Knights Inn brands. The com- pany plans to add four to six units under each brand per year.

33 37 Groupe Germain Inc. 7 $54.9 $39.6 A privately owned company that owns seven properties in Quebec City, Que. Canada, with plans to open one hotel in 2012.

34 32 Genesis Hospitality Inc. 10 $54.0 $50.0 A privately owned company that owns 10 hotels in Canada. Brandon, Man. Recently the company acquired four hotels in the Greater Toronto Area, including the Marriott Courtyard Hamilton, Ont., the Marriott Courtyard Creekbank in Mississauga, Ont., the Residence Inn in Vaughan, Ont., and Residence Inn Creekbank in Mississauga, Ont. The company plans to open one hotel in 2012.

* Denotes Estimate ‡ Canadian-owned company whose operations outside Canada are reflected in revenues and units

22 JULY/AUGUST 2012 HOTELIER hoteliermagazine.com -XVWRQHUHDVRQZK\6HUWDLV

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      M THE TOP 50 ¡ 2012 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Rank Company Units Revenue 2011 Revenue 2010 Business Operations ’12 ’11 2011 (millions) (millions)

35 — Airline Hotels, 7 $52.9 — A privately owned company that owns seven properties in Saskatchewan, Sask. Canada. The company recently purchased three Country Inn & Suites properties in Regina, Sask. and Winnipeg, and plans to open one hotel in 2012.

36 29 Concord Hospitality 11 $52.4 $54.9 A privately owned company that develops, owns, manages and Enterprises Company franchises 11 hotels in Canada. Raleigh, N.C.

37 — Pomeroy Inn & Suites Inc., 13 $50.0 — A privately owned company that owns and manages 13 properties Grand Prairie, Alta. in Canada, and one franchised property. In 2012, the company plans to open three new hotels.

38 35 Northampton Group Inc. 16 $49.8 $45.1 A publicly owned hotel management company, Northampton oper - Mississauga, Ont. ates 15 hotels in Canada and one international location. In 2012, the company plans to add one unit in Canada.

39 36 Stagewest Hospitality 8 $48.5 $46.9 A family owned company that is a subsidiary of Mayfield Calgary, Alta. Investments Inc. and owns eight properties in Canada. In the past year, the company completed a 112-room hotel in Camrose, Alta.

* Denotes Estimate ‡ Canadian-owned company whose operations outside Canada are reflected in revenues and units

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©2012 InterContinental Hotels Group. All rights reserved. Most hotels are independently owned and operated.

3:44 PM M THE TOP 50 ¡ 2012 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Rank Company Units Revenue 2011 Revenue 2010 Business Operations ’12 ’11 2011 (millions) (millions)

40 31 Rosdev Hospitality 7 $48.3 $50.5 A private company which is a subsidiary of Rosdev Group, which Montreal, Que. owns, develops, and manages seven properties worldwide, includ - ing four properties in Canada. Recently the company upgraded one hotel to a Crowne Plaza.

41 — Sawridge Inns & 5 $46.0 — A privately held company that owns five properties in Canada. The Conference Centres, company has recently completed renovations in Peace River, Fort Edmonton, Alta. McMurray and Edmonton, Alta.

42 38 Urgo Hotels LP 7 $40.2 $38.4 A privately owned company that owns, operates and/or manages Bethesda, Md. 28 hotels worldwide, including seven in Canada. Urgo Hotels plans to add an additional six units to its portfolio, including one unit in Canada .

43 39 New Castle Hotels 6 $39.1 $38.2 A privately owned company that owns, develops, and manages six & Resorts properties in Canada, and 18 worldwide under the Marriott, Hilton, Shelton, Conn. Westin and Sheraton brands as well as independent properties. The company recently acquired the in St. Andrews, N.B., which it plans to renovate and convert to a Marriott Autograph collection hotel. In 2012, the company plans to open eight new properties including two in Canada.

* Denotes Estimate ‡ Canadian-owned company whose operations outside Canada are reflected in revenues and units

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Grande PrairieGrimshawVegreville Dawson Creek Fort St. John Chetwynd M THE TOP 50 ¡ 2012 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Rank Company Units Revenue 2011 Revenue 2010 Business Operations ’12 ’11 2011 (millions) (millions)

44 — Manga Hotels Group, 8 ‡$35.0 — A privately owned company that owns and develops seven proper - Mississauga, Ont. ties in Canada, and one outside of Canada. In 2012, the company plans to add one unit in Canada and one international unit.

45 — KSD Enterprises Ltd., 2 $34.3 $19.3 A privately owned hotel company incorporated in Canada and Toronto, Ont. owned by publicly listed companies in Malaysia and Hong Kong. The company currently has two units in Canada, including one owned by an associated company (Sheraton Ottawa).

46 — , 2 $33.6 $34.2 A subsidiary of Loews Corporation, Loews Hotels owns two units New York, N.Y. in Canada, and 16 international locations. Currently many units are undergoing renovations with plans to develop new properties.

46 40 Liverton Hotels 2 $33.6 $35.0 A privately owned company that owns and operates two luxury International Inc. Metropolitan Hotel properties in Toronto and Vancouver. Toronto, Ont.

47 — Palm Holdings, 9 ‡$32.0 — A privately owned company that owns or franchises three units Toronto, Ont. in Canada and six international units. In 2012 the company is looking to grow its Ontario portfolio and open three new proper - ties in Canada.

* Denotes Estimate ‡ Canadian-owned company whose operations outside Canada are reflected in revenues and units

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Do you have Nice Rooms and Great People? As one of Canada’s largest hotel franchisors, we provide unmatched support for your hotel. We offer unique business drivers like Canadian based Sales and Marketing departments, and dedicated Canadian Operations & Support staff who work with you personally, to drive room nights and increase your bottom line. Let Travelodge make this your best year ever. 1-800-646-2435

Executive Suite, Travelodge Parksville travelodge.ca M THE TOP 50 ¡ 2012 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Rank Company Units Revenue 2011 Revenue 2010 Business Operations ’12 ’11 2011 (millions) (millions)

48 48 One King West Hotel 1 $22.8 $14.7 A privately owned company that operates One King West Hotel Toronto, Ont. and Residences, a mixed-use hotel development project featuring 575 extended-stay suites.

49 44 Brookstreet Hotel 1 $20.5 $18.1 A division of the Wesley Clover International Corporation with one Corporation hotel in Canada and two international locations. The company Ottawa, Ont. plans to expand by adding one hotel in Canada and two interna - tional locations within the next year.

50 47 Realstar 15 $18.5 $15.5 A privately owned company that is the franchisor of Motel 6 and Toronto, Ont. Studio 6 properties in Canada. Currently, Realstar Hospitality Corp. has 15 properties in Canada. It plan to open two new Motel 6 properties in Saskatchewan in 2012.

* Denotes Estimate ‡ Canadian-owned company whose operations outside Canada are reflected in revenues and units

We Know Hospitality.

When you want your hotel managed right, turn to the experts: Crescent Hotels & Resorts. As a North American recognized, top 10 hotel management rm built by operators, we passionately embody the spirit of service in everything we do. Crescent operates hotels and resorts throughout Canada, the U.S., and the Caribbean and we’re approved to manage full-service premier brands by Marriott, Hilton, Intercontinental,

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Tony Cohen, SVP of Business Development 416.913.4626 Gerry Tissenbaum, Director of Business Development 416.925.4649 STAYING AGILE IS CRITICAL. FORTUNATELY, OPENING , NEW* HOTELS HAS KEPT US IN SHAPE.

In the past fi ve years, Hilton Worldwide has opened , new hotels around the world, bringing us to more than , hotels in  countries today.* In Canada, we have  hotels open from coast to coast with a growing pipeline of over  signed projects. Impressive growth, made possible by our ability to adapt to the world’s increasingly complex business environments. As a result, we’ve developed a wealth of experience creating and operating the most awardwinning portfolio of hotels in the industry. Not a bad workout for a yearold. For development opportunities in Canada, please contact Tom Lorenzo, Vice President and Managing Director of Development +, [email protected], and Je Cury, Director of Development +, je [email protected]. STAY AHEAD hiltonworldwide.com

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         Maison Boulud’s dining room at the Ritz- Carlton Hotel, Montreal (left ); Executive chef Tyler Shedden (with sauce pan), Boulud’s new hire at Café Boulud and Bar, The Four Seasons Hotel, Toronto P H O T O G R A P H Y

B Y

P A U L

W A G T O U I C Z

Hawksworth Restaurant, with Rodney Graham art - work, at Vancouver’s Rosewood Hotel Georgia ( above ); Ritz-Carlton, Montreal (right ); chef David Hawksworth plating at the pass

30 JULY/AUGUST 2012 HOTELIER hoteliermagazine.com TRENDS THE NEW NORMAL It’s out with the dull hotel restaurants and in with chef-driven dining destinations BY ADRIAN BELL

The scene is different today with hotels hosting savvy cus - PICTURE IT. tomers who like cutting-edge design augmented by approach - A massive dining room able food. Now it’s restaurateurs rather than hotel GMs mak - ing decisions and creating destination dining. “Hotels are no with rows of banquet longer places to go and sleep and then go out in the city,” ex - tables, each one identical plains Rob Gentile, executive chef of Toronto’s Buca Osteria and Enoteca, who’s launching a second Buca adjacent to the to the next — a sea of Four Seasons Hotel, in Toronto. “People want to come to a white tablecloths before hotel and be entertained in the hotel, eat in the hotel, drink in the hotel. It’s become more of an entertainment complex.” you, ornate chandeliers It’s a delicate business, but these days, it’s about keeping guests on your premises and giving them a top-notch culinary experi - dangling from the ceiling ence. Hotelier talked with four restaurant operators to learn perfectly positioned over about the world of hotel restaurants.

every table, cutlery placed Café Boulud and Bar, Four Seasons Hotel, Toronto exactly straight. This is “There’s nothing more terrible than a hotel restaurant,” begins Daniel Boulud of the N.Y.-based Dinex Group. “Some of them where symmetry was in - do have charm, as long as the food is still exciting and the vented. Along comes the clientele is renewed — because there is nothing worse than to see a hotel that’s 60 years old and the clientele is 90 years old.” waiter, he looks like some - Boulud knows about successful restaurants; he has several around the world and just unwrapped Maison Boulud at the one out of a Coen brothers famed Ritz-Carlton, Montreal. It borrows style, decor and am - movie; slicked-back hair, biance from the chef’s American restos. “It’s a restaurant in a hotel run and managed by a chef like me. We are in partner - pencil moustache, black ship to fully manage our brand — the employees are employees bow tie, jacket with of the hotel, of course,” the chef explains. Boulud believes today’s guests are looking for a hotel restau - epaulettes, glossy black, rant with something different, yet classical. “They want a brogues and tight-fitting, restaurant with a DNA — doesn’t matter if it’s Italian, Japan - ese, French, American or Canadian, the DNA today comes white, cotton gloves. from the chef, from the cuisine, from a style of cooking and a Cradling a stainless steel style of service — an expectation,” says Boulud, whose culi - nary genes are evident in his classy, modern French food. The cloche, he reveals your new 200-seat Café Boulud and Bar at the Four Seasons will fea - ture the chef’s four signature menus: la tradition , classic French order. A slice of pâté en - cuisine; la saison , seasonal delicacies; le potager , the vegetable cased in aspic. It wobbles garden menu, and le voyage , named after various world cuisines . The business deal with Four Seasons — set to open in like jelly at a children’s Toronto’s Yorkville neighbourhood in October — is a hybrid party as he slides the plate arrangement, with the hotel providing financial backing. “We are in business with the hotel and the hotel is the investor and in front of you. the operator on a day-to-day [basis],” Boulud explains. “And

hoteliermagazine.com JULY/AUGUST 2012 HOTELIER 31 today.” And, that’s something Boulud can deliver. La Coupole, in Montreal, bases La Coupole Restaurant, Le Crystal Hôtel and Spa, Montreal it menu style on the “The concept is [said] to be the only one in North America,” deluxe brasseries says Gino Mourin of his resto inside Le Crystal Hôtel & of Paris Spa, Montreal, which is based on the deluxe brasseries found in Paris, France . Fusing Italian and French, the Coupole menu is light. “There’s not too much butter and bacon — it’s more olive oil refined with different spices and flavours,” Mourin says. The restaurant features a prix-fixe, discovery menu ($40), with dishes such as balsamic-caramelized Cornish hen with vegetables and Israeli couscous as well as shred - we are co-managing with them. We are lending manage - ded duck with leeks, grapes, spinach and parsnip with a ment as well, and we are making sure the staff is trained black cherry sauce. “[Introducing] discovery, becoming by us, supervised by us, but at the same time we work to - more humble ... that brought success,” he says, of the gether with the hotel to make sure we provide the service restaurant that’s pulling in $500,000 per month in sales. the hotel needs.” The grassroots marketer, who calls himself a “peddler,” says Carrying on with tradition in a contemporary way is 95 per cent of his business is walk-ins. “That’s the average. Boulud’s secret to success. “It’s not casual-dining, but it’s I’m outperforming say, 30 per cent of some restaurants, but not fine-dining. It’s in between … it’s fun dining,” he I’m outperformed by big restaurants,” he adds, referring to his says. “That’s how the hotel approaches their brand. They neighbour The Queue de Cheval Steak House and Bar. “He want to show vitality and that it’s really with its time,” he is doing $9 million a year. That’s enormous. But, according to says. The entrepreneur is confident the relationship will my pricing, I’m doing very well. According to his pricing, be prosperous. “[It’s] a seamless fit, they want excellence four times my average check, he’s doing basically the same.” in ser vi ce, in fi ne-dining an d they w a nt t o make s ure t he That success is clear to see at the 155-seat, 6,700-square- service is appropriate to what [guests] expect at a hotel Continued on page 36

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1 12-06-29 10:59 AM we have a great relationship.” The property leases space to BUCA EXPANDS IN TORONTO the entrepreneur, and business is conducted as a combined effort. Together they attract corporate Montrealers, luring Chef Rob Gentile’s schedule 10 per cent of hotel guests daily and 25 per cent on week - is about to intensify. The chef ends, but there’s more to it than that. “The property is a and co-owner of Toronto- condo-hotel, so it’s owned by condo [owners]. The building based Buca, is preparing to belongs to the condo, and we became renters of the hotel open a second location next space and the restaurant,” Mourin explains. The hotel pro - to Toronto’s new Four Seasons motes me “because I do an event every month, like a wine - Hotel. “We’re creating a foun - maker’s dinner.” dation to extend the brand. The osteria will be just like The relationship hasn’t diluted Mourin’s mission. “I’m the one we have, but nothing is set in stone,” he says, of the 3,500-square-foot making my own decisions, but the hotel will participate in restaurant set to open in October. He’s keen to let the new restaurant grow the marketing. It’s a joint effort to promote, but they let me organically. “When it starts to develop its own soul, that’s when it comes [direct] my concept. It’s a very happy and peaceful harmony.” together nicely.” he says. The design steers the chef’s cuisine. “You don’t cre - ate a menu and then build the space,” he says. What he does know is he will Hawksworth Restaurant, Rosewood Hotel Georgia, Vancouver cook authentic Italian food. “We’ll be serving all our signature dishes. All our David Hawksworth dreamed of Hawksworth Restaurant pastas will be made from scratch and all the bread, too — it’s all going to be fresh, original food.” While Daniel Boulud’s Café Boulud and Bar will be inside years before he thought of opening in Vancouver’s Rosewood the new Four Seasons Hotel, Gentile’s 70-seat boîte, with chef de cuisine Ryan Hotel Georgia. “I was here before the hotel, and it just funni - Campbell at the helm, will be freestanding. “There’s two separate buildings on ly worked out that way,” says the 42-year-old chef of the the property; we’re going to be in the resident’s building. We’re a completely 7,200-square-foot business. “The world went in a weird direc - separate entity. We don’t have any access to room service or interactive lob - tion, and we did the deal to put my restaurant in the hotel.” bies,” clarifies Gentile. While there was no mandate from the hotel management in terms of how to work together, the chef had his own foot, two-storey restaurant, which usually sits one-and-half ideas. “I wanted to build a restaurant where people would seatings at lunch and one at night. Such an accomplish - feel comfortable coming a couple times a week, [where] the ment is partly due to the partnerhsip with Le Crystal man - prices weren’t outrageous,” he says, of the 80-seat eatery . agement. “Wh e n they h elp m e, t h ey’re quite amazing … Working under a separate lease, but within the confines of the hotel, Hawksworth’s cuisine is unique. “It’s modern contemporary Canadian cuisine,” says the European- trained chef. “It’s an ever-evolving menu; it’s very seasonal. Right now we have the 48-hour short-rib, with compressed melon and black-pepper jam ($17); the roasted sablefish with a tom yum broth and crispy rice ($26, lunch; $34, dinner); and, at lunchtime, we have a great little spaghetti with jalapeños, arugula and Dungeness crab ($19, appetiz - er/$26 entrée).” Partnering with Rosewood Hotel Georgia has proven suc - cessful with guests coming from across the city. “It’s all over the map; we have lots of people who used to come to the hotel 50 years ago and want to have a look.” Strategically lo - cated in the epicentre of the business district, Hawksworth Restaurant attracts suited execs and hockey fans. “Whatever business gets done in Vancouver is [within] a 15-minute ra - dius of here,” says the chef. The restaurant and bar’s casual yet upscale atmosphere — featuring artwork by Damien Hirst and Rodney Graham — suits the hotel and marries well with the chef’s artistic food. “Our bar is very unique. It’s really cocktail-orientated, there’s no coffee machine, there’s no draft beer or anything like that — it’s primarily focused on phenomenal cocktails. So we have people who come and only eat in the bar, and have never sat in the restaurant, and they’ve been here maybe 50 times.” Whether running a standalone restaurant or a hotel- restaurant, it’s clear change is a key driver of success. “Hav - ing a great-looking restaurant is really important, otherwise you’re done, it’s not going work,” says Hawksworth. N

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DESIGN Ch ic

Mag CnetOMPILED BY JACKIE SLOAT-SPENCER Hotelier magazine surveyed hotels and suppliers to learn about the bedding, linen and drapery trends driving guestroom design

The guestroom is an oasis where hoteliers strive to create a home away from home. They aim to please guests with top-notch bedding, high-thread count Riegel Bedding’s ( above ) linens, and nature- 300-thread count stripe duvet and shams are made inspired drapery. With from 60-per-cent a range of innovative cotton and 40-per-cent guestroom designs, polyester; ( right ) Wear and it’s easy to get carried tear is top of mind when choosing hotel linens, and away with trends, but Johnston, S.C.-based Riegel one thing is certain: Linen’s 300-thread count when it comes to matt weave sheets — supplied to Vintage Hotels bedding, linen and in Niagara-on-the-Lake, drapery, classic Ont., and Caledon, Ont. — sophistication, are designed with durability in mind. Made from 60-per - complemented by cent cotton and 40-per- outdoor elements cent polyester blend, the and bold accents, is linen boasts a cotton-rich blend, can withstand fre - the recipe for success quent laundering and is in the new age of still soft to the touch. hotel design. 38 TJULY/AUGUST 2012 HOTELIER hoteliermagazine.com (right ) Nothing is more durable and classic than understated bright white textiles. Garnier- (left ) Montreal’s Hotel Nelligan Thiebaut Inc. (GT Linens) an exudes a boutique feel with a Arlington, Va.-based textile duvet by Marie l’Oie, a St- supplier, says its bed-and-bath Jerome, Que.-based textile linens are popular with its specialist. Its beds are outfit - Toronto-based hotel clients. Its ted in Canadian supreme Houston bed linen contains a white goose down, with 325- 300-thread count, Egyptian thread count sheets that con - cotton and plain satin weave. tain a 100 per cent white cot - ton shell. And, given the rising rate of allergen-conscious guests, its bed set is also available in synthetic, hypo- allergenic material.

(above ) Earth tones, complemented by bold add-ons create a balance between nature and city chic at the Opus Vancouver. “Our guests want and expect a complete expe - rience that involves creative design elements, combined with a feeling of warmth and, most importantly, comfort,” said Nicholas Gandossi, GM, Opus Vancouver; ( left ) The 152- room W Montreal is designed for a free-spirit. Its “Cozy-” themed guestroom features a dream bed with 350-thread count Egyptian cotton sheets, a pillow-top mattress, feath - erbed, goose-feather duvet and down-filled pillows. Rich blue curtains add depth to the room and a natural, airy element, while a large drape that can be drawn for privacy replaces the traditional wall. » hoteliermagazine.com JULY/AUGUST 2012 HOTELIER 39 (Clockwise from top left ) Northern Feather’s Hospitality Zen Deluxe Pillows are hypoallergenic, anti-bacterial and anti-microbial, with a 240-thread count; local sourcing is paramount, and the Vancouver-based Opus Vancouver hotel covers its beds with 300-thread count linens from Willowest Linens Inc., a local manufacturer. The sheer curtains, which are unlined and ripple-folded, by Vancouver- based Westport Manufacturing Co. Ltd. offer the illusion of an open, airy space that beckons the Vancouver landscape; “The new trend is image-print - ed top sheets and pillows in order to create a fresh looking bed and yet blend in with the decor of a boutique hotel,” said Ragnar Pedersen, GM of the Toronto-based Pantages Hotel Toronto Centre. KBro_QV_Layout 1 12-06-28 10:53 AM Page 1

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GuestSupplyAd3_Textiles.indd 1 8/11/09 4:16:40 PM (above ) GT Linens’ Mistral Bath Towels are made from 100-per-cent combed cotton and have a 680-grams-per-square-metre lockstitch; (right ) Traditional reigns supreme at the Hilton (above ) Resiliency is an Lac-Leamy, located in Gatineau-Ottawa, Que., important consideration with guestrooms swathed in a classic design when choosing fabrics for scheme complemented by warm, understated Toronto’s Pantages Hotel, colours. Nothing is more important than a which outfits its beds in a good night’s sleep, so each bed boasts a cotton/polyester blend from Hilton Serenity bed by Serta. Its quilt design Standard Textile, which with - and plush top mattress improves circulation stands frequent laundering. and reduces nighttime restlessness, creating home-inspired comfort.

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File Name Trim Size (File) Trim Size (Final) Usage BEL1459_HM 8.125" x 10.875" 0" x 0" Hotelier Colours Live Area (File) Live Area (Final) 4C 7.625" x10.375" 0" x 0" Art Director / Designer Bleed Size (Final) Bleed Size (Final) Andrea 8.625" x 11.375" 0" x 0" Proof Size File Size Visual Opening (File) Visual Opening (Final) Notes 100% of fi nal size 100% of fi nal size 0" x 0" 0" x 0"

Creative Assoc. Art Direc- Copy- Account Copy Layout Director Cr. Dir. tor Writer Designer Person Client Approvals: Client Revisions: 00 OPERATIONS

SAFE HAVENS High security means low anxiety for Canadian hoteliers BY DENISE DEVEAU

alk to any experienced risk people. It’s difficult to wel - type of threat.” consultant serving the come someone if you’re frisk - However, all hotels are global hotel industry, and ing them like a bouncer in a vulnerable. “Wayward live - undoubtedly they’ll tell you nightclub,” Mathers jokes. stock could be a threat for stories that would make Geography plays a huge a hotel located in the coun - any manager nervous. role in security planning, try; in a city it could be “In regions where there says Sean Ahrens, practice drug dealing, robbery or are wars, it’s pretty much leader for Chicago-based theft. If your hotel is locat - an iron camp,” says crime Aon Risk Solutions, a secu - ed next to an embassy, you and risk consultant Chris rity consulting and design have much bigger threats T Mathers of Toronto-based, service. “North American and exposure. Put that Chris Mathers Inc. “Every operations don’t have the hotel near a casino, and you piece of baggage is x-rayed same type of security con - have to start thinking about — metal detectors, armed cerns you might see in drunken people getting into soldiers and bomb dogs are Africa. They don’t have a fights,” says Ahrens. everywhere.” 500-member Al Qaeda The security story on While these sites may use group just down the street,” North American grounds security technologies and says Ahrens. “Or loose bor - is about maintaining guest/ practices to the nth degree, der controls that facilitate employee safety in terms of that won’t cut it in Canada the transfer of weapons. fire, theft and assault pre - and the U.S. “Innkeepers are We don’t have the compo - vention, Mathers says. supposed to be welcoming nents that equate to that “The technology used is

CHECKING IN JAMES BOND STYLE

Room keys have come a long way since the first pre-punched key cards came on the hotel scene in the 1970s. In recent months, developments in near-field communications have moved the guestroom key to guest’s smartphones. Soon mobile will reach an entirely new level. BMW is partnering with VingCard Elsafe in Dallas, Texas on a technology that will soon let drivers of the luxury brand reserve their rooms through the car’s onboard computer system. Once the reservation is made, the system sends a wireless access code so the car keys can serve as your guestroom lock — no check-in required. hoteliermagazine.com JULY/AUGUST 2012 HOTELIER 45 THE COST OF FAILURE , GM, of Le such as alarm and sprinkler Château Frontenac in Que - systems, require non-stop Hoteliers know a security breach will cost. But unless they’ve gone through bec City. “In this world, no upgrades,” Mercure says. the drill, few operators understand the far-reaching costs. According to Sean news is good news. When “We also work extensively Ahrens of the Chicago-based Aon Risk Solutions Security Consulting, the fall - nothing happens, that’s with auditing firms to re - out from a publicized incident — poor word of mouth — can paint a pretty ugly when you know things are view systems and everyday picture. “There are, of course, direct costs to consider, such as reimbursing going well.” procedures as well as con - guests for belongings and implementing controls to prevent a [breach in The biggest challenge is duct drills several times a security] from occurring.” However, this expense can be dwarfed by the soft making security as seamless year. And you can never re - costs associated with litigation and/or damage to your brand, especially when and unobtrusive as possible. peat emergency procedures the media gets involved. “In some cases those numbers can be incalculable in “People want it, but when and safety training enough. terms of the damage to your reputation and lost revenues,” says Ahrens. “If they see it they get spooke d; It’s part of the orientation it’s a chain operation, you might as well take that number and multiply it by but because they don’t see for new hires as well as on - thousands, because all of a sudden it’s not affecting just one hotel.” it, people don’t understand going departmental train - that it’s a big capital cost ing,” he says. Additionally, and requires ongoing in - the Emergency Prepared - pretty much the standard saults and workplace vio - vestment,” says Mercure. ness Committee, comprised stuff: CCTVs, panic alarms, lence, Ahrens notes. The At the Frontenac, hun - of representatives from dif - locking systems, room safes, key is learning how to con - dreds of thousands of dol - ferent departments, meets sprinkler systems, not trol the largest number of lars are spent annually on regularly to review feedback things like facial recogni - threats that pose the great - everything from audits and from staff and guests. tion and IRIS and finger - est risk, thereby eliminat - emergency preparedness to Systems maintenance is print readers, which can be ing vulnerabilities. upgrading systems and staff absolutely critical in any very intrusive.” The big The tricky part about training, Mercure reports. security plan, asserts Math - threats to North-American justifying a security invest - “Security is constantly ers. “They don’t have to be operations are incidents ment is there’s no measure evolving; systems are always state of the art. They just such as rapes, thefts, as - of success, says Robert being tested, and equipment have to work. If you’re not

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WI-FI OR DIE Hoteliers charging guests for Internet access could be dead in the water BY LARRY MOGELONSKY

t may be hard to fath - expected wherever you go. member there’s strong de - om, but when it comes Remarkably, many hotelie rs mand for free wireless access Ito technology there are in the marketplace are still — not the wired, antiquated pockets of obstinacy in the charging guests to access kind of connection. hotel business. Even these the Internet. Hotel opera - The job of a good hotelie r days, many hoteliers are re - tors who don’t offer free is to make guests feel as luctant to offer guests free wireless need to ask them - comfortable as possible. To Wi-Fi or wireless fidelity, as selves whether it would be borrow a catchphrase from it’s known by its proper fair to charge guests a sur - Marriott, the hotel you’ve name. It’s easy to spot ob - plus for heating, air condi - chosen should be your stinacy, but it’s often diffi - tioning and water usage. home away from home. cult to change, yet there Surely, the answer is a Now, imagine having a are plenty of reasons hot- resounding, no. So, why friend stay at your home eliers should provide free would you ask a customer who wants to surf the In - Wi-Fi to customers. to pay for Internet access? ternet on their smart - Firstly, the world is mov - “Wi-Fi is essential technol - phone. While they could ing at warp speed. Already ogy,” says Renato Alesiani, use their own data plan, we’re midway through president of Encinitas, purchased from their carri - 2012. The Internet is virtu - Calif.-based Wave Crest er, they instead ask you for ally inescapable and many Resorts. “Charging for the household’s Wi-Fi pass - of us can’t live without it. Internet access is pure word. How awkward would Sure, providing free web exploitation of your guest.” it be if you said, “Sure, service in a hotel was once Today’s smartphones and that’ll be $10.” considered a luxury item — tablets can only access the Hotel marketers grow a chargeable amenity. But web by using a wireless business for their clients in recent years the technol - Local Area Network. The with slogans such as “Feel ogy that allows data to be beauty of wireless connec - right at home” and “Let us exchanged wirelessly has tivity allows work or plea - cater to your every need.” become a staple. It’s an sure surfing without pesky Charging a guest an extra essential service, which is wires. It’s important to re - fee for an essential service

48 JULY/AUGUST 2012 HOTELIER hoteliermagazine.com doesn’t make a guest feel towards your property. And a loyalty program if your rate, much like you already right at home. You would - your guests will wander off hotel hasn’t made a good do with the room’s utilities. n’t expect a fee at a friend’s your premises to scoop a impression with essential Or, read through the origi - house, so why would you free Wi-Fi signal from a services? Is heating and air nal agreement you have expect it at a hotel? nearby restaurant. Now, conditioning a part of your and find a buyout option. Undeniably, many of us you’ve created a F&B prob - loyalty program, too? Pay it and move on. The are now hooked on the lem. Instead of spending Guests won’t sign on to one-time fee, in addition web. And we expect free money in your hotel, your your loyalty program only to the installation charge Wi-Fi. Restaurant chains guest is spending money to negate inflated connec - for wireless hubs and re - such as McDonald’s and elsewhere. By making them tivity fees. They’ll buy in peaters, is nothing com - Starbucks offer complimen - pay for wireless, you’ve because they’re impressed pared to the revenue losses tary Internet access, and encouraged them to leave by your core services and from unhappy guests. their clientele don’t spend their rooms, decreasing amenities, which should al - Free Wi-Fi is the best so - nearly as much as guests do potential revenues. Don’t ready include free Wi-Fi. lution, but, below are three on a hotel room. Don’t let Internet obstinacy get So let’s consider some so - ways to create a win-win start off the relationship in the way of sales. lutions. Even after weigh - situation: with guests on the wrong As a tool, free Wi-Fi ing the pros and cons, • Package Deal : Offer free foot. Free Wi-Fi is an easy keeps guests spending many hoteliers are reluc - access as part of a larger guest expectation to meet. money at your hotel, but it’s tant to change due to lega - amenity bundle. Get cre - Surprisingly, some hot- not a make-or-break fea - cy contracts. But don’t let ative. Think of it as a eliers have the audacity to ture. It’s true, some discern - these contracts be your ex - “lifestyle package” show - charge $20 per day for In - ing consumers might not cuse for transferring addi - casing an array of fea - ternet connectivity. It’s choose your hotel specifi - tional fees to your cus - tures that make your a fee more in keeping with cally for that reason, but tomers. Guests don’t care brand exceptional. 1999 than 2012 and they’re in the minority. In about legacy contracts. If • Tiered Plan: Only offer viewed by many guests as most cases, Wi-Fi fees are a these contracts hold you free Wi-Fi in premium insulting — an instant small and entirely avoidable back, bury the Internet sur - rooms or suites. The turnoff. With the preval- grievance that may con - charge into your nightly waived fee becomes an ence of smartphones, guests tribute to a guest leaving may choose to access the your property unsatisfied. Internet using their 3G Mediocre online reviews network and accrue their and poor word of mouth are own charges rather than also part of the fallout. accept a hotel’s exorbitant Charging customers Wi- Internet fees. Fi fees could cause resent - Many hotels have a ment, so why risk it? Com - tiered system of Internet plimentary services make access. They’ll offer a basic your guests feel good — connection free of charge they amplify positive feel - then ask for a sizeable pay - ings and make good busi - ment, ranging from $15 to ness sense. In the grand $20, for the high-speed edi - scheme of things, free Wi-Fi tion. With the multi-level is an inexpensive endorse - program, most guests will ment to buy, especially try to jump on the Internet when compared to refur - at the lower, free connec - nishing rooms or upgrading tion level. However, the facilities. Remember, when low-speed connection the Internet is served on a comes with terrible band - silver platter, it’s an open width; a task as simple as invitation for guests to sing REMEMBER, WHEN THE INTERNET IS downloading emails be - your praises online . SERVED ON A SILVER PLATTER, IT’S AN comes mind-numbing. It’s also worth noting OPEN INVITATION FOR GUESTS TO SING Inevitably, guests will pur - that hotels often include YOUR PRAISES ONLINE chase the upgraded version free in-room Internet ac - for peace of mind. cess as a feature to help sell “ But these excessive fees loyalty memberships. But generate negative feelings why would a new guest join hoteliermagazine.com JULY/AUGUS”T 2012 HOTELIER 49 should also be linked to the of the bigger picture. Keep - major OTAs and Twitter. ing an open mind to the The real solution, however, rapidly shifting consumer is a fundamental change in mindset is now more im - SAD AS IT MAY SEEM, BABY BOOMERS a hotelier’s mindset. Resis - portant than ever. As NO LONGER HAVE COMPLETE COMMAND tance towards free Wi-Fi Adele Gutman, VP of Mar - OF THE NORTH-AMERICAN MARKET. translates to an unwilling - keting, the TO SCORES OF TEENS AND YOUNG ness to adapt to the times. Collection in New York ADULTS, INTERNET USAGE FEES It’s not written in stone says, “People want to stay “ that you must maintain an connected with their busi - ARE AN ASSAULT AGAINST THEIR online presence, but it will ness and their loved ones. CORE BELIEFS AND WILL NOT surely hamper your business That makes them happy. BUILD LOYALTY not to conform. Treat free Free Wi-Fi is the conduit to Wi-Fi the same way. that connection. As hote - Sad as it may seem, baby liers, our goal is ultimate added perk, validating companies are known to boomers no longer have guest happiness.” N the more expensive pur - handle the Wi-Fi net - complete command of the chase and giving regular work installation and North American market. Larry Mogelon- guests another incentive upkeep costs, satisfying To scores of teens and sky is president to upgrade. guests with free access young adults, Internet and founder • Enhanced Web Portals: in excha”nge for pop-up usage fees are an assault of the Toronto- In addition to being a banner advertisements. against their core beliefs based LMA web gateway, these sys - Complimentary Internet and will not build loyalty. Communications Inc., an tems can integrate service is now a part of You have to lay the seeds award-winning, full-service amenities such as laun - business, in much the same with the tech-savvy gener - communications agency dry, dry cleaning and way your property should ation to ensure long-term focused on the hospitality room service. Portal have a Facebook page; you survival. Free Wi-Fi is part industry.

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WELCOME HOME (from left to right): The Calla chair at Alt Hotel Quartier DIX30 Montreal; Moda Hotel Vancouver’s warm guestroom colour scheme creates a relaxed vibe; the Sheraton Gateway Hotel in Toronto International Airport lobby; The Hotel at River Rock in Richmond, B.C. T O

P to our app edition!

R I Always innovating and constantly G H T

Living, Breathing Lobbies: Gone are the days comes fully equipped with Internet connectivity where changing, this year’s design trends motivate P H

of lifeless lobbies, stagnant vestibule areas guests can check email and print their boarding passes. O T

the newest and hottest hotel styles popping O

ignored by guests headed to their rooms. Hote- Additionally, The Hotel at River Rock in Richmond, G R

up in the Canadian marketplace. Hotelier A

1 liers now believe these areas are perfect for B.C., features a living lobby that is four-storeys high. P H

magazine surveyed the country’s leading Y showcasing the style and mood of a hotel. As such, Guests can chill out in the open-air space while enjoy- B Y

design teams to come up with our list of they’re equipping lobbies with innovative kiosks and ing the soothing sound of a waterfall and indoor pond. S S

In D

creative check-in areas, and, in the process, creating a G

10 trends influencing hotel design (in no I fun, social atmosphere with pizzazz. The common Spa-Like Bathrooms: Designing a bathroom N T particular order). The distinguished panel E R

spaces now serve as an oasis where guests can sit and space with spa-like elements is a great way I O

includes Mavis Truscott, hospitality design R relax. A central café lounge with multimedia stations to ensure guests have a relaxing stay. A slow I N lead at Calgary-based Sizeland Evans C are the norm. “Lobbies abound with opportunity — 2down and chill-out design invites guests to .

A

JACKIE SLOAT-SPENCER Tapping into give your guests the opportunity to use them for casual spend luxurious hours ensconced in their suites. Old N BY Interior Design; George Yabu and Glenn D

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Style10 design trends meetings, socializing and as a gathering space,” says showers are out, body jet and rain showers are in, H Pushelberg, partners at Yabu Pushelberg, O It’s as simple as downloading it from the app store for that create hotels Julie Campbell of Vancouver-based SSDG Interiors with oversized bathtubs oozing luxury. And, these T O

Toronto; Robynne Moncur, principal de- G

with flair Inc. For example, the Sheraton Gateway Hotel at days, top-of-the-line textiles are the norm with terry- R A

signer at Moncur Design in Toronto and P

Pearson International Airport recently underwent a cloth robes, towels sporting high-thread counts and H Y

Julie Campbell, principal, SSDG Interiors $3-million renovation with an upgraded lobby that luxurious beauty items available in the bathroom. At B Y

E Inc., Vancouver. comes alive. The hotel’s Link@Sheraton lounge the W Montreal hotel, a Starwood property, M A

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Andrew Torriani GM & President, Ritz-Carlton Montreal BY ROSANNA CAIRA

ndrew Torriani got a taste of the hotel busi - A ness as a child working at a collection of hotels owned by his father. In fact, at the age of 11 he was running the film projector on Saturday nights as a service to guests. Eventually, he and his three brothers moved on to more important tasks within the hotel network, holding a se - ries of jobs, including porter and night bellman — mixed-use development which also features 45 “all the jobs that others didn’t want to do,” quips condo units. “The residences are operated indepen - the 50-year-old hotelier. dently,” explains Torriani. While he’s always had a passion for hotels, after With the exception of the heritage rooms, the moving to Canada and eventually graduating from hotel was gutted and guestrooms were refashioned to McGill University in Montreal, Torriani landed at compete with the best hotels in the world. “We didn’t Air Canada as senior director of Human Re sources. want to lose the character that really was the Ritz- It wasn’t until a few years later he and hi s father Carlton. Our designers found a way to mix contempo - formed their own hotel-management company called rary with modern. It’s a call back to older times.” Monaco Luxury Hotels Management, which now Not surprisingly, there’s great fanfare surrounding controls a majority stake in the Ritz-Carlton. the restaurant, given it’s operated by star chef Daniel These days, the Holland native does double duty, Boulud. Boasting a modern vibe, the 160-seat Mai - serving as GM and president of Montreal’s ‘Grande son Boulud has been full since we opened,” boasts Dame,’ — officially known as the Ritz-Carlton the hotelier. “The food is delicious. It’s local and Montreal — which reopened earlier this spring after fresh and relates to our surroundings. The whole a three-year, $200-million renovation. He’s happy to Boulud organization has a great training system.” be back in business after a three-year hiatus. “The Now that he’s back in business, Torriani and his renovation took a bit longer than anticipated,” ex - team of 300 want to create a luxurious haven for plains the father of three. “At the end of the day guests looking for the ultimate in service. “My

the product represents what we wanted it to be.” biggest challenge is meeting customer expectations. P H O

Opened on New Year’s Eve in 1912, the iconic We want to appeal to everybody who enjoys fine T O

hotel has a storied history. It was the first Ritz- hotels.” And, with increasing competition, and a G R A

Carlton ever built by César Ritz, and through the $450 price tag, Torriani says it’s important “to al - P H Y

years it has hosted dignitaries and celebrities. In ways remain relevant.” B Y

fact, it’s where Elizabeth Taylor and Richard Bur - At the end of the day, it’s about satisfying the W I L L

ton first married in 1964. guest. “We have to be able to anticipate anything a L E Today, the 129-room luxury hotel is part of a customer needs before they even realize it.” N W

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