Picture Years May 2014$4 the Canadian Hotel
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THE MAGAZINE FOR HOTEL EXECUTIVES/ MAY 2014 $4 THE HOTEL INVESTMENT PICTURE CANADIAN PUBLICATION MAIL PRODUCT SALES AGREEMENT #40063470 MAIL PRODUCT SALES AGREEMENT #40063470 CANADIAN PUBLICATION hoteliermagazine.com YEARS THE CANADIAN HOTEL INVESTMENT ISSUE STAYING AGILE IS CRITICAL. FORTUNATELY, OPENING MORE THAN , NEW* HOTELS HAS KEPT US IN SHAPE. In the past six years, Hilton Worldwide has opened more than , 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 hotels under construction and over fully approved 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, Senior Director of Development + , je [email protected]. STAY AHEAD hiltonworldwide.com *From January to December Hilton Worldwide HIL13010_Hotelier_Ad_Canada.indd 1 12/17/13 2:00 PM • FILE PATH: Hilton:01_HILTON:HIL13010_HotelierCanadaAd:HIL13010_01STUDIO:_RELEASED:HIL13010_Hotelier_Ad_Canada.indd • KEYLINES DO NOT PRINT 1 HIL13010 HIL13010_Hotelier_Ad_Canada.indd App/Vers. InDesign CS5.5 7.5.3 Printed at 12-17-2013 1:56 PM Saved at 12-17-2013 1:56 PM from Dennis Swiec by Dennis Swiec / Lauren Kleiman Printed At None Job info Notes Colors / Fonts / Links Client Hilton None Inks: Cyan, Magenta, Yellow, Black Live 7.625” w x 10.375” h Fonts: Fedra Sans Alt Pro (Book, Medium) Trim 8.125” w x 10.875” h Links: c160471_A_Comp_v2_1.psd (CMYK; Bleed 8.625” w x 11.375” h 509 ppi; 58.83%), Bb_Single_Horiz_rev_CS3. Keywords eps (79.79%), HiltonWW HORIZ Bevel 4C Description Hotelier AD Logo KO type_CS3.eps (44.95%) None COLLATERAL Approvals AE CW AD PP GP PRF VP VP 350 N. Orleans, 5th Floor, Chicago, IL 60654 • 312.943.0900 Volume 26, Number 3| May 2014 Contents Features 10 THE INVESTMENT LOW-DOWN The teams at Hotelier magazine and Starwood Hotels and Resorts partner for the fourth-annual investment roundtable Interview by Rosanna Caira Scan to view our website 17 THE NUMBERS GAME Cushman & Wakefield offers an analysis of the relationship between office space and hotel rooms sold in 11 cities across North America By Cushman & Wakefield’s Hospitality & Gaming Group 25 A GOOD YEAR Last year was a memorable one for hotel investments, Departments and 2014 looks strong By Mark Sparrow & Deborah Borotsik, CBRE Hotels 2 EDITOR’S PAGE 3 CHECKING IN 29 HERE WE GROW 48 HOTELIER: Christophe The future looks bright as the hotel real-estate Le Chatton, Langdon Hall, market flourishesBy Robin McLuskie, Colliers Cambridge, Ont. International Hotels 33 TAKE YOUR PICK Canada’s West overtakes the East in the minds of many ON THE COVER investors, but both have opportunities for growth (standing, l to r) Philippe Gadbois, By Laura Pratt Atlific Hotels and Resorts; Sukhi Rai, PHI Hotel Group; Allison Reid, Starwood Hotels & Resorts (sitting, 39 DO YOUR HOMEWORK l to r) Bill Stone, CBRE Hotels; Understanding everything from finances to design is Barbara Mech, Roynat Capital; integral to a successful hotel purchase By Rebecca Harris Scott Duff, Starwood Hotels & Resorts; Brian Stanford, PKF 43 THE REAL-ESTATE GAME Consulting; and Paresh Raja, Selecting the best site for a hotel is contingent on a Brock Hotels. Photographed at the host of issues By Laura Pratt Element Vaughan Southwest COVER PHOTOGRAPH BY ALEX LUKEY hoteliermagazine.com MAY 2014 HOTELIER 1 EDITOR’S PAGE PRIME TIME or almost 15 years, Hotelier has dedicated its May issue to the Ftopic of investment (see Investment Roundtable and stories, starting on p. 10). MITCH KOSTUCH | PRESIDENT & Clearly, investors are the lifeblood of the GROUP PUBLISHER [email protected] industry. They demonstrate confidence in ROSANNA CAIRA | EDITOR & PUBLISHER business, allow developers to create new [email protected] hotel entities and motivate operators to MARGARET MOORE | ART DIRECTOR upgrade their properties through renova- [email protected] tions, refurbishment and expansion. But, BRIANNE BINELLI | MANAGING EDITOR as each downturn teaches us, it’s hard to [email protected] JACKIE SLOAT-SPENCER | ASSISTANT EDITOR generate investment without strong travel [email protected] patterns and solid growth. DEREK RAE | MULTIMEDIA MANAGER It’s therefore reassuring for hoteliers to learn that global demand genera- [email protected] tors show consumer confidence and strength is on the upswing. For COURTNEY JENKINS | GRAPHIC DESIGN INTERN example, according to a recent global travel trends survey by global BRENDA JAMES | SALES & MARKETING MANAGER forecaster Oxford Economics, “The global travel industry is poised for a [email protected] period of sustained growth over the next decade, driven in part by China’s JIM KOSTUCH | DIRECTOR share of global outbound travel, reaching as much as 20 per cent by 2023.” [email protected] Oxford Economic’s survey, “Shaping the Future of Travel: Macro trends CIRCULATION PUBLICATION PARTNERS driving industry growth over the next decade,” predicts an optimistic [email protected] (905) 509-3511 macro-economic outlook for global travel in the next decade. “The survey ELSIE REDEKOPP | ACCOUNTING shows the [travel] industry is projected to outstrip global GDP by approxi- [email protected] mately two per cent, growing 5.4 per cent per annum,” states the report. TINA ALEXANDROU | OFFICE MANAGER Perhaps not surprisingly, “China’s growth in outbound travel, which as [email protected] recently as 2005 was just one per cent, is expected to overtake the U.S. to become the world’s largest outbound travel market this year, with the number of Chinese households able to afford overseas travel set to more ADVISORY BOARD: than double in the next 10 years to reach 220 million. China will also David McMillan, AXIS HOSPITALITY INTERNATIONAL; Bill Stone, CBRE; Anthony Cohen, CRESCENT HOTELS — become the biggest domestic travel market by 2017, driven largely by GLOBAL EDGE INVESTMENTS; Christiane Germain, GROUPE rapidly increasing GDP, rising employment levels and higher consumer GERMAIN HOSPITALITÉ; Lyle Hall, HLT ADVISORY; Charles Suddaby, CUSHMAN & WAKEFIELD LTD. — HOSPITALITY spending,” says the report. & GAMING GROUP; Scott Allison, MARRIOTT HOTELS But China isn’t the only nation expected to grow outbound travel. CANADA; Ryan Murray, HARBOUR HOUSE HOTEL — NIAGARA’S FINEST INNS; Drew Coles, OXFORD According to the report, forecasts show other large emerging markets such PROPERTIES; David Larone, PKF CONSULTING; Geoffrey Allan, as Russia, Brazil, India, Indonesia and Turkey will each average more than PROJECT CAPITAL MANAGEMENT HOTELS; Stephen Renard, RENARD INTERNATIONAL HOSPITALITY & SEARCH five-per-cent annual growth over the next 10 years, driven largely by rising CONSULTANTS; Anne Larcade, SEQUEL HOTELS wealth and changing consumer habits. & RESORTS; Michael Haywood, THE HAYWOOD GROUP; David Mounteer, THE THOMPSON HOTEL, TORONTO; Despite recent economic troubles in the Eurozone, Europe is expected to David Whitaker, TOURISM TORONTO retain the lion’s share of tourism flows, but, perhaps not surprisingly Asia is HOTELIER is published eight times a year by Kostuch Media the fastest-growing region for travel. Ltd., 23 Lesmill Rd., Suite 101, Toronto, Ont., M3B 3P6, As for Canada, with such significant global growth predicted, isn’t it (416) 447-0888, Fax (416) 447-5333. All rights reserved. Subscription rates: Canada: $25 per year, single issue $4, U.S.A.: prime time we improved our marketing efforts to tap into this growing $30 one year; all other countries $40 per year. Canadian body of travellers? Publication Mail Product Sales Agreement #40063470. Member of: Canadian Circulations Audit Board, the American Business Media and the Canadian Business Press. We acknowledge the financial support of the Government of Canada, through the Canadian Periodical Fund (CPF) for our publishing activities. Printed in Canada on recycled stock. ROSANNA CAIRA Editor and Publisher [email protected] FOLLOW US: For daily news and announcements: @hoteliermag on Twitter and Hotelier magazine on Facebook. 2 MAY 2014 HOTELIER hoteliermagazine.com CTHE LATESTh INDUSTRY eNEWS FORc HOTELk EXECUTIVESi FROMn CANADA g AND AROUNDI nTHE WORLD CERTIFIED SUSTAINABLE The new Wingate by Wyndham prototype announced last month will make it easier for every owner to pursue LEED certifica- tion. “As a brand, we are committed to reducing our impact on the environment BUILDING UP and that includes offering hotel owners New hotel prototypes with smaller footprints and flexible design options and resources that allow them to are coming to market BY JACKIE SLOAT-SPENCER operate in more sustainable ways. This is why we designed the new prototype to be n a new hospitality world that’s focused on minimizing investment risk, LEED-certifiable,” says Bill Hall, brand SVP, while creating a luxurious stay for guests, it’s fitting that a slew of economi- Wingate by Wyndham. Some of the hotel’s Ical new-build prototypes have been introduced recently, offering efficient features include LED lighting, low-flow use of space, flexible design and social-inspired guest amenities. fixtures