SPECIAL REPORT BTN U.S. CHAIN SURVEY, 2007 Marriott Dominates Buyers’ Performance Ratings BY MICHAEL B. BAKER stay and economy tiers, in which ment Advisors, said Marriott’s in the last two years,” Jannini said. Like the industry as a whole, ’s brands Marriott had no brands in the scope is a benefit in keeping its “We went outside the industry the upscale segment showed swept first-place honors for near- running, travel buyers gave their edge, with the systems and sales and hired the best innovation strength in 2006. While occupan- ly every tier in the U.S. Hotel highest scores to Marriott. In the force better able to cater to travel firms to create very new ap- cy for the tier showed only a slight Chain Survey, in a year when in- 2006 survey, midprice Courtyard buyers. Travelers also are notic- proaches to guest room design increase, revenue per available creasing revenues and rates are by Marriott and TownePlace ing adjustments recently made to and public spaces to make a much room was up 9.7 percent for the allowing to invest more in Suites—both of which were beat- the companies’ brands, said Mike more engaging hotel experience.” upscale tier and 7.5 percent for renovations and amenities. en in their tiers by other Marriott Jannini, Marriott’s executive vice The company scored a double the upper upscale tier, compared With the exception of the lux- brands this year—were the only president of global brand strategy victory in the upscale tier with its with an 8 percent increase in the ury tier, in which Marriott’s Ritz- brands to be ranked first. and innovation. JW Marriott Hotels and Marriott entire industry, according to Price- Carlton Hotels brand placed sec- Sean Hennessey, president of “We’ve made a boatload of Hotels & Resorts brands tying for waterhouseCoopers’ Lodging In- ond, and the midprice extended New York-based Lodging Invest- changes across all of our brands the top position. Westin Hotels, dustry Report and Forecast, re- Hotels and Hilton Interna- leased in December. tional—which merged with “Business travel really contin- Hilton Hotels early last year, and ued to pick up as 2006 went along, 2007 U.S. Hotel Chain Survey Methodology the two were separated by one- and all indications are that it will hundredth of a point in the sur- be another robust year in 2007,” Business Travel News’ U.S. Hotel Chain Survey is price with and without food and beverage hotels vey—completed the top five. Un- Hennessey said. “People are mak- an annual measure of corporate travel buyers’ opin- and budget and economy chains. like previous years, BTN did not ing every effort to travel.” ions of the lodging brands their companies use. Busi- Buyers rated hotels in each segment on six to 13 differentiate between upper up- With increased revenues, ho- ness Travel News sent an e-mail to 8,828 corporate attributes, including quality of food,D phyEsiLcalU ap-XsEcale and upscale brands, merg- tel companies have been more readers responsible for hotel buying decisions, ask- pearance, corporate rate programs, quality of facil- ing them into a single upscale tier. successful in convincing proper- ing them to rate hotels with which they did busi- ities and overall price-value relationship. Ratings Neither of the winners in the ty owners to implement capital- ness in the past year in six hotel segments: deluxe, are presented on a numerical scale from one to five, two categories last year, Loews intensive upgrades, Hennessey upscale, midprice, budget/economy, and upscale with the number highlighted indicating the high- Hotels and Walt Disney World said. Hoteliers said those efforts and midprice extended stay. est score for each attribute. Resorts, reached the required us- are reflected in the survey results, This year, BTN combined some categories it pre- Equation Research tabulated 690 responses. age threshold of 20 percent of sur- as several brands showed across- viously segmented, no longer making a distinction BTN reported results only for chains that vey respondents to be included the-board improvements from the between upper upscale and upscale hotels, mid- achieved a significant percentage of usage. in the 2007 results. Continued on page 17

UPSCALE

ARRANGE ARRANGE FACILITIES FACILITIES FOR CORPORATE COMMISSION QUALITY HELPFUL PHYSICAL QUALITY OF QUALITY OF QUALITY OF OVERALL OVERALL INDIVIDUAL GROUP FOR RESORT NON-RESORT RATE PAYMENT OF COURTEOUS APPEARANCE IN-ROOM IN-ROOM BUS. BUSINESS PRICE-VALUE AVERAGE RANK CHAIN TRAVEL TRAVEL MEETINGS MEETINGS PROGRAMS SYSTEMS FOOD STAFF OF HOTELS AMENITIES AMENITIES CENTER RELATIONSHIP SCORE

1 JW MARRIOTT HOTELS 4.28 4.08 4.17 4.15 3.85 3.90 4.08 4.15 4.19 4.13 4.04 3.94 3.84 4.07

1 MARRIOTT HOTELS & RESORTS 4.28 4.13 4.14 4.16 3.85 3.89 3.93 4.20 4.12 4.09 4.12 4.04 3.90 4.07

3 WESTIN HOTELS 4.14 4.05 3.98 4.01 3.82 3.77 3.99 4.15 4.22 4.13 4.04 3.99 3.86 4.02

4 HYATT HOTELS 4.10 4.04 4.04 4.03 3.79 3.75 3.95 4.13 4.06 3.97 3.94 3.99 3.85 3.98

5 HILTON INTERNATIONAL 4.17 3.95 3.97 4.09 3.69 3.84MID4.00PRI4.07CE 4.05 3.98 3.91 3.96 3.93 3.97

6 HILTON HOTELS 4.14 4.06 3.95 4.01 3.89 3.70 3.82 4.13 4.06 3.91 3.90 3.91 3.85 3.96

7 OMNI HOTELS 4.10 3.97 3.89 3.80 3.55 3.81 3.89 4.18 4.24 4.13 3.90 3.97 3.91 3.95

8 4.07 3.96 3.96 3.95 3.83 3.75 3.90 4.00 4.04 3.99 3.96 3.93 3.90 3.94

9 INTERCONTINENTAL HOTELS 4.07 3.76 3.80 3.79 3.68 3.86 3.78 3.92 4.04 3.94 3.82 3.80 3.84 3.86

9 4.04 3.81 3.63 3.77 3.50 3.90 3.98 4.07 4.09 3.98 3.95 3.83 3.64 3.86 9 WYNDHAM HOTELS 3.92 3.81 3.81 3.82UPS3.78CAL3.71E EX3.80TEN3.96DED4.04 STA3.94Y 3.92 3.82 3.83 3.86 12 EMBASSY SUITES HOTELS 4.07 3.84 3.53 3.73 3.69 3.67 3.46 3.94 3.83 3.82 3.82 3.74 3.80 3.77

12 3.94 3.81 3.50 3.81 3.44 3.83 3.73 4.04 4.03 3.75 3.79 3.68 3.62 3.77

14 HOTELS 3.92 3.74 3.59 3.74 3.70 3.51 3.59 3.97 3.86 3.88 3.73 3.70 3.79 3.76

15 DOUBLETREE HOTELS 4.06 3.77 3.49 3.76 3.68 3.63 3.64 3.98 3.73 3.78 3.74 3.68 3.76 3.75

16 SHERATON HOTELS 3.92 3.85 3.71 3.74 3.71 3.70 3.48 3.71 3.54 3.59 3.56 3.54 3.63 3.67

17 RADISSON 3.78 3.62 3.46 3.48 3.51 3.44 3.45 3.70 3.53 3.53 3.60 3.49 3.59 3.56 MIDPRICE EXTENDED STAY 10 Monday, March 5, 2007 www.btnonline.com Business Travel News

BUDGET/ECONOMY DELUXE

SPECIAL REPORT BTN U.S. HOTEL CHAIN SURVEY, 2007

SpringHill Jumps Atop ComUbPiSnCeAdLE Midprice Rankings BY MICHAEL B. BAKER in its tier last year, receiving high marks Uto dPistinSguCishA betLweEen the midprice with Hennessey, president of New York-based ’s three-year reign for service, amenities and value. Courtyard and without food and beverage tiers, BTN Lodging Investment Advisors. at the top of the increasingly diverse mid- was second, followed closely by Hilton this year merged them because the lines “That model has faded,” Hennessey price category ended this year as its sister Garden Inn and last year’s winner in the between the two are blurring. Midprice ho- said. “It will continue to be around, be- brand, SpringHill by Marriott, edged past midprice without food and beverage cate- tels without a full restaurant are enhanc- cause people will want a minimum level it in the U.S. Hotel Chain survey. gory, Country Inns & Suites. Hampton ing their food offerings while the idea of a of food service, but for a lot of travelers, The evolving SpringHill brand made rounded out the top five. dedicated in-house restaurant is falling out it’s not the worst inconvenience if they have the leap to the top after a fifth-place finish Although the hotel industry continues of favor with many hoteliers, said Sean Continued on page 16

MIDPRICE ARRANGE ARRANGE FACILITIES FOR CORPORATE COMMISSION QUALITY HELPFUL PHYSICAL QUALITY OF QUALITY OF OVERALL OVERALL INDIVIDUAL GROUP NON-RESORT RATE PAYMENT OF COURTEOUS APPEARANCE IN-ROOM BUSINESS PRICE-VALUE AVERAGE RANK CHAIN TRAVEL TRAVEL MEETINGS PROGRAMS SYSTEM FOOD STAFF OF HOTELS BUS. AMENITIES CENTER RELATIONSHIP SCORE

1 SPRINGHILL BY MARRIOTT 4.26 3.90 3.81 3.83 3.63 3.73 4.15 4.23 3.93 3.90 4.02 3.97

2 COURTYARD BY MARRIOTT 4.27 3.97 3.78 3.78 3.79 3.62 4.09 4.14 3.90 3.86 3.97 3.94

3 4.27 3.92 3.83 3.76 3.63 3.62 4.07 4.16 3.86 3.88 3.92 3.91

4 COUNTRY INNS & SUITES 4.15 3.94 3.63 3.79 3.84 3.57 4.05 3.89 3.89 3.78 3.97 3.88 5 HAMPTON 4.27 3.92 3.64 U3.75PSCA3.75LE E3.38XTEN4.03DED 3.98STAY3.81 3.70 4.01 3.85 6 FAIRFIELD INN BY MARRIOTT 4.12 3.81 3.65 3.73 3.73 3.41 3.86 3.77 3.67 3.61 3.80 3.75

7 COMFORT SUITES 4.12 3.79 3.74 3.63 3.63 3.33 3.98 3.72 3.50 3.57 3.87 3.72

8 EXPRESS 4.09 3.79 3.57 3.68 3.62 3.17 3.94 3.77 3.62 3.62 3.79 3.71

9 4.02 3.78 3.59 3.60 3.60 3.53 3.81 3.64 3.48 3.50 3.65 3.66

10 AMERISUITES 3.90 3.63 3.42 3.70 3.46 3.29 3.73 3.56 3.64 3.55 3.70 3.63 11 HOLIDAY INN 3.94 3.80 3.60 M3.58IDPR3.71ICE E3.31XTEN3.83DED3.43 STAY3.43 3.51 3.61 3.61 12 INN 3.68 3.63 3.56 M3.33IDPR3.12ICE E3.38XTEN3.73DED3.32 STAY3.33 3.43 3.48 3.46

13 COMFORT INN 3.90 3.56 3.36 3.35 3.48 3.19 3.67 3.40 3.22 3.24 3.42 3.44

14 LA QUINTA HOTELS 3.91 3.58 3.20 3.37 3.11 3.08 3.71 3.30 3.33 3.15 3.62 3.42

15 INTERNATIONAL 3.58 3.51 3.26 3.40 3.43 3.02 3.73 3.37 3.32 3.15 3.58 3.40

16 QUALITY INN 3.75 3.41 3.09 3.23 3.05 3.00 3.56 3.30 3.42 3.24 3.54 3.34

BUDGET/ECONOMY

ARRANGE CORPORATE COMMISSION HELPFUL PHYSICAL OVERALL OVERALL INDIVIDUAL RATE PAYMENT COURTEOUS APPEARANCE PRICE-VALUE AVERAGE RANK CHAIN TRAVEL PROGRAMS SYSTEMS STAFF HOTELS RELATIONSHIP SCORE

1 3.83 3.18 3.40 3.58 3.58 3.67 3.55

2 RAMADA LIMITED 3.64 3.17 3.88 3.69 3.50 3.21 3.49

3 3.79 3.29 3.30 3.42 3.19 3.56 3.44

4 3.44 3.00 3.14 3.44 2.78 3.56 3.24

5 3.44 3.00 3.14 3.28 3.17 3.17 3.20

6 3.50 3.00 2.77 3.35 3.00 3.39 3.19

7 3.09 3.00 2.90 3.09 2.55 2.73 2.89

12 Monday, March 5, 2007 www.btnonline.com Business Travel News DELUXE

SPECIAL REPORT BTN U.S. HOTEL CHAIN SURVEY, 2007 Four Seasons Nips Ritz-Carlton To RetainDELU HotelXE Buyers’ Deluxe Crown BY MICHAEL B. BAKER This marks the second yeUar inP a SrowC inA whLichE Four “Four Seasons began as the hotel for the business trav- Four Seasons Hotels and Resorts retained its position at Seasons bested Ritz-Carlton in the U.S. Hotel Chain Sur- eler, and our staff understands the need and expectations, the top of the deluxe tier in a neck-and-neck battle with vey. Ritz-Carlton held the title for the six years prior. The and it’s about service,” said Barbara Talbott, Four Seasons’ Marriott’s Ritz-Carlton. With only three-hundredths of a two brands won first- and second-place honors in nearly executive vice president of marketing. point separating the brands’ final scores, buyer satisfac- every category with the exception of corporate rate pro- The luxury tier in 2006 led the industry in occupancy, tion with Four Seasons’ pricing and value was enough to grams, in which Fairmont Hotels & Resorts took second revenue per available room and average daily rate increas- offset Ritz-Carlton’s higher-scoring amenities and service. place over Ritz-Carlton. Continued on page 16

UDPESLCUAXLEE

ARRANGE ARRANGE FACILITIES FACILITIES FOR CORPORATE COMMISSIONMIDQUALITYPRHELPFULICE PHYSICAL QUALITY OF QUALITY OF QUALITY OF OVERALL OVERALL INDIVIDUAL GROUP FOR RESORT NON-RESORT RATE PAYMENT OF COURTEOUS APPEARANCE IN-ROOM IN-ROOM BUS. BUSINESS PRICE-VALUE AVERAGE RANK CHAIN TRAVEL TRAVEL MEETINGS MEETINGS PROGRAMS SYSTEM FOOD STAFF OF HOTELS AMENITIES AMENITIES CENTER RELATIONSHIP SCORE

1 FOUR SEASONS HOTELS 4.57 4.33 4.37 4.32 3.92 4.04 4.45 4.60 4.66 4.50 4.36 4.34 4.12 4.36

2 RITZ-CARLTON HOTELS 4.54 4.30 4.38 4.32 3.64 3.93 4.46 4.64 4.65 4.51 4.39 4.43 4.00 4.33

3 FAIRMONT HOTELS 4.38 4.16 4.16 4.16 3.71 3.81 4.15 4.44 4.35 4.14 4.00 4.05 3.89 4.12 MUIPDSPCRAILCEE UPSCALE EXTENDED STAY

ARRANGE CORPORATE COMMISSION HELPFUL PHYSICAL QUALITY OF QUALITY OF OVERALL OVERALL INDIVIDUAL RATE PAYMENT COURTEOUS APPEARANCE IN-ROOM BUSINESS PRICE-VALUE AVERAGE RANK CHAIN TRAVEL PROGRAMS SYSTEM STAFF OF HOTELS BUS AMENITIES CENTER RELATIONSHIP SCORE

1 RESIDENCE INN BY MARRIOTT 4.31 3.96 4.02 4.33 4.31 4.21 4.17 4.12 4.19

2 TOWNEPLACE SUITES BY MARRIOTT 4.41 3.94 4.00 4.17 4.12 4.00 4.06 4.06 4.10 3 HOMEWOOD SUITES BY HILTON 4.32 3.83 UP3.81SCALEM4.05 EIDXPTER4.14NICDEED 4.05STAY 4.00 4.00 4.03 4 3.91 4.00 MI3.43DPRIC4.00E EXTE3.82NDED3.82 STAY 3.91 3.91 3.87 5 4.00 3.78 3.54 4.06 3.67 3.83 3.67 3.67 3.78

6 3.86 3.57 3.80 4.00 3.79 3.38 3.38 3.71 3.69

7 3.83 3.45 2.83 3.92 3.67 3.45 3.64 3.50 3.59

MUIPDSPCRAILCEE EEXXTTEENNDDEEDD SSTTAAYY ARRANGING CORPORATE HELPFUL PHYSICAL QUALITY OF QUALITY OF OVERALL OVERALL INDIVIDUAL RATE BUDCOURGTEOUSET/EAPPEARANCECONOMIN-ROOM Y BUSINESS PRICE-VALUE AVERAGE RANK CHAIN TRAVEL PROGRAMS STAFF OF HOTELS BUS. AMENITIES CENTER RELATIONSHIP SCORE

1 HOMESTEAD STUDIO SUITES 4.00 3.56 3.85 3.68 3.63 3.53 3.71 3.71

2 3.43 3.38 3.52 3.32 3.18 3.14 3.30 3.33

Residence Inn, HomesteadBUDG EPaceT/ECO BouyantNOMY Ext. Stay BY MICHAEL B. BAKER the upscale extendeMd stIayD tiePr, wRhicIhCElas t yEeaXr’s uTppEerN upsDcaleE wDinne r,S HyTatAt’s Ythe high score for every criterion. Extend- Extended stay brands, running at record merged the upscale and upper upscale ex- Summerfield Suites, and InterContinental ed Stay America, a sister brand to Home- occupancy levels in 2006, showed almost tended stay tiers used in previous years’ Hotels Group’s Staybridge Suites. IHG’s stead Studio Suites, finished second. across-the-board improvement in buyer surveys. Marriott’s other extended stay Candlewood Suites and Hawthorn Suites Upscale extended stay properties satisfaction in the U.S. Hotel Chain Survey, brand, TownePlace Suites—ranked first in rounded out the category. reached record occupancy levels last year with nearly all brands improving their the upscale extended stay tier in the 2006 In the midprice extended stay tier, Ex- and all extended stay properties continued score compared with last year’s survey. survey—placed second. Third place went tended Stay Hotels’ Homestead Studio to operate at more than 10 percentage Marriott’s Residence Inn placed first in to Hilton’s Homewood Suites, followed by Suites repeated its 2006 victory, obtaining Continued on page 18

14 Monday, March 5, 2007 www.btnonline.com Business Travel News BUDGET/ECONOMY SPECIAL REPORT BTN U.S. HOTEL CHAIN SURVEY, 2007

cial areas and better use of light, she said. “Our growth SpringHill Leads Evolving Midprice has been tremendous, with 155 hotels for us and 110 in the pipeline,” she said. “It’s our next power brand.” Continued from page 12 rate growth of 6 percent and RevPAR growth of 8.3 per- Courtyard scored highest in arranging group travel to go to the T.G.I. Friday’s around the corner.” cent for hotels with F&B. and was part of a three-way tie with Hilton Garden Inn As a further indication, SpringHill garnered the top Several brands have ambitious development plans, in- and Hampton for arranging individual travel. Bates said score in food quality despite being classified in the with- cluding the seven-year-old SpringHill brand, now in the the brand especially benefited from Marriott’s new bed- out F&B category last year, and Country Inns & Suites’ course of a major repositioning, Scarbrough said. As the ding program, and Courtyard will be introducing a new food quality also scored well. Although SpringHill’s break- brand grows, it will incorporate spa-like bathrooms and room décor package this year. fast remains continental in nature, it was upgraded to pro- multifunctional lobbies with Internet connections and so- Continued on page 19 vide seasonally appropriate food and at- tendants to help guests, said Marsha Scarbrough, Marriott’s vice president of high-demand amenities—upgraded show- brand strategy. Choice Hotels’ Comfort Four Seasons Rings Deluxe Bell er heads, flat-screen televisions and coffee Suites, which increased its score in every makers—are in every room. Acoffee mak- criterion from last year, also rolled out a Continued from page 14 While Four Seasons is not known for er might sound like a basic addition, but hot breakfast, said Kimberly Shells, the es, according to PricewaterhouseCoopers. its low rates, it outscored its competition Ritz-Carlton put a lot of effort into develop- brand’s senior director of strategy. Estimates for the tier had occupancy up 1.3 both in its corporate rate programs and in ing a specific presentation, making it sub- “Expectations have really gone up in percent, RevPAR up 11.1 percent and aver- the overall relationship of price and value. tle enough to fit in the room, Harper said. terms of what a complimentary continen- age daily rates up 9 percent, and those “We have a more consistent quality for all “It took us a while to get the right prod- tal breakfast means,” said Rita Santelli, sen- numbers are expected to remain strong. of the chains,” Talbott said. “It’s a funda- uct for them, but we have a neat coffee ior director of brand strategy for Choice Ho- “The luxury segment of the business mental need for the business traveler.” maker presentation,” he said. “Little things tels’ Comfort Inn. “When we rolled out a has really been strong this year,” said Sean Four Seasons also received top scores like that make a difference.” Ritz-Carlton new breakfast—waffles, fresh fruit and ce- Hennessey, president of New York-based in the appearance of its properties and ar- also has improved its business services, real, toast and muffins—our guest satisfac- Lodging Investment Advisors. “Room rate ranging group and individual travel. It and Harper said. For example, it now gives cus- tion went up two percentage points, which growth should be on the order of 8 percent Ritz-Carlton tied in facilities for non-resort tomers on the club floor e-mail addresses represents more than 300,000 guests.” for the next two years.” meetings. Ritz-Carlton scored better in the to which they can forward attachments on Performance-wise, the tiers remain dis- Mixed-use development continues to amenities categories, ranking highest in re- the road and have them printed and ready tinct, with midprice with F&B showing feature heavily in new deluxe properties sort meetings facilities, food, staff, business for their arrival to the room, he said. daily rate and revenue per available room and will help keep supply tight. Of all lux- center and in-room amenities both of the Four Seasons’ business services and growth a little softer than midprice without ury projects under development, 26 per- business and non-business variety. such personal services as in-room dining F&B. PricewaterhouseCoopers estimated cent contain residential components, much John Harper, vice president of interna- and laundry are now 24-hour services, Tal- 2006 annual average daily rate growth of higher than any other tier. “With little new tional sales offices for Ritz-Carlton, said the bott said. The brand also has introduced 8.4 percent and RevPAR growth of 10 per- supply, it’s going to give those hotels real- brand, which has doubled from 30 to 60 room service that can be ordered on the cent for midprice without F&B hotels and ly strong pricing power,” Hennessey said. hotels since 1999, makes sure the most way to the hotel.

16 Monday, March 5, 2007 www.btnonline.com Business Travel News SPECIAL BTN U.S. HOTEL CHAIN SURVEY, 2007 REPORT

wars are here to stay in the upscale seg- Also, Omni overhauled its minibars to Two Marriott Brands Top Upscale ment,” Omni’s Hackett said. “Beyond that, provide such high-end offerings as euca- it becomes what you can do to find that lyptus bath salt and gourmet chocolates, Continued from page 10 three-way tie for the best quality of in-room point of differentiation.” Hackett said. Westin, meanwhile, devel- 2006 survey. The improvements also echo amenities. All three recently have upgrad- Hackett said part of Omni’s rank un- oped a recovery kits for guests suffering hoteliers’ internal metrics, they said. ed their bedding, a major competitive point doubtedly came for the brand’s free high- travel ailments like jet lag and stomach One such brand was Hyatt, which has among hoteliers, but all also pointed to oth- speed Internet offering, which still is a rar- aches, said senior vice president Sue Brush. invested more than $600 million in its er amenity upgrades. “The bed and bath ity among upscale brands (BTN, Feb. 5). Continued on page 18 North American hotels during the past year, including $60 million in the Grand Hyatt New York, said Tom O’Toole, sen- ior vice president of strategy and systems for Global Hyatt Corp. The company also invested in such technology upgrades as checkin through personal digital assistants. “Hyatt’s improvement in every catego- ry is the result, without hyperbole, of the most intensive and multifaceted effort in the company’s history to upgrade our brand in every manifestation,” O’Toole said. Higher tiers continue to be the primary focus of hotels rolling out new brands. Sev- en of nine new brands introduced in 2006 were in either the upscale or luxury tiers. In 2005, 12 out of 15 of the new brands intro- duced were in those tiers. Meanwhile, hotels have focused on pro- moting amenities. “Upscale and luxury are most definitely pouring more resources into comfort-type amenities, like flat-screen TVs and premium upgraded mattresses,” said Priscilla Campbell, practice leader of hotel advisory services for American Ex- press Business Travel. Hoteliers said they are reaping the rewards with improved guest satisfaction numbers. That said, buyers have faced a difficult Triple the rewards. Infi nite possibilities. fight in keeping rates down, and that is not likely to change anytime soon. Average daily rates for the tier in 2006 increased year over year more than the overall industry estimated increase of 6.8 percent. Upper upscale rates increased by 7.1 percent and upscale rates were up by 8.9 percent, and upper upscale rates should continue to rise at a pace above the indus- try average for at least the next two years, according to PricewaterhouseCoopers. Travel buyers ranked Hilton Hotels as the brand with the best corporate rate pro- grams, and Hilton International was ranked as having the best overall price-val- ue relationship. The two Marriott brands carried most of This spring, your clients can earn triple the rewards the rest of the top spots for the upscale cri- starting with their second stay. teria. Both tied for the best in arranging in- dividual travel. Marriott Hotels & Resorts Your clients can choose triple Choice Privileges® points or triple Airline Rewards with our 11 airline partners was rated highest in arranging group trav- starting with their second stay between February 1ST and April 30T. H There’s no limit to how many rewards they el, facilities for non-resort meetings, staff, in- room business amenities and business cen- can earn at any Comfort Inn®, Comfort Suites®, Quality Inn®, Sleep Inn®, Clarion®, Cambria SuitesTM or MainStay Suites® ter. JW Marriott was either number one or hotel in the U.S., , Caribbean or . Remember, the Choice Privileges rewards program is tied for the top spot in the remainder of easy, fast and free to join. Call 800.228.5050 or visit choicehotels.com and click on Travel Professionals. the categories, with the exception of the hotels’ physical appearance, for which 800.228.5050 • choicehotels.com • Click on Travel Professionals Omni Hotels was the top ranked. John Hackett, corporate director of sales and business travel for Omni, said that dis- tinction could be attributed to the relative- ly short turnaround time for renovations. Since it is not as massive as Marriott, Hy- att or Hilton, Omni can complete brand- CI COMFORT INN CZ COMFORT SUITES QI QUALITY INN SZ SLEEP INN CC CLARION CR CLARION GALILEO EZ CAMBRIA SUITES MZ MAINSTAY SUITES EC EXCLUSIVELY CHOICE wide renovations in a matter of years rather Guests earn triple Choice Privileges points or triple Airline Rewards for qualifying stays beginning with their second stay with arrival between February 1 and April 30, 2007. A stay is defi ned as any number of consecutive nights at one hotel regardless of check-ins or check-outs. Guests must notify the front desk at time of check-in whether they choose to earn than a seven- or 12-year cycle, he said. points or Airline Rewards. See choicehotels.com for information on posting of points or Airline Rewards and other details. Omni joined JW Marriott and ©2007 Choice Hotels International, Inc. All rights reserved. Hotels and Resorts’ Westin brand in a

Business Travel News www.btnonline.com Monday, March 5, 2007 17 SPECIAL REPORT BTN U.S. HOTEL CHAIN SURVEY, 2007

based Lodging Investment Advisors. “The 10 percent of the supply. Even though most Extended Stay Occupancy Explodes segment is differentiated enough in terms brands have ambitious expansion plans of facilities from other hotels that you won’t that include many untapped urban mar- Continued from page 14 coming years. Analysts said the tier can do see cannibalization of demand.” kets, it’s a balance that will continue to points higher than the industry as a whole. so without driving away demand. Laura Bates, senior vice president of ex- work in the hoteliers’ favor. With such high occupancy, hoteliers have “There’s not a substantial risk that tended stay for Marriott International, said Residence Inn topped nearly every cri- said that room rates will be the primary you’re going to see it deteriorating,” said she estimated extended stay demand to be terion in the tier, scoring highest for its com- method of achieving revenue growth in Sean Hennessey, president of New York- about one-third of the market but less than mission payment systems, staff, physical appearance, amenities, business center and overall value. “We have the highest rev- enue per available room index of any brand in the industry, and guest satisfaction is in the 80s,” Bates said. “That’s phenomenal for a brand that’s 30 years old.” The brand’s ratings reflect its enhanced Business Luxury amenities, including free high-speed Inter- net access, a new hot breakfast and new BUSINESS COMES FIRST. Experience classic elegance in bedding incorporated across all Marriott THAT’S OUR MOTTO, TOO. the heart of the city. Luxurious brands, she said. The brand will renovate rooms, sophisticated dining, lobbies and better optimize outdoor space graceful service. Eligible corporate with such amenities as fire pits and grills. preferred guests receive double TownePlace Suites scored highest in ar- American Airlines miles.** ranging individual travel. Peggy Fang Roe, Marriott’s senior director for extended stay brand management, said the brand is repo- sitioning itself and focusing on providing local knowledge to guests through staff ex- $ * pertise and floor-to-ceiling town maps in all RATES FROM 169 lobbies. In addition, rooms are being re- RESERVATIONS designed to offer more workspace, she said. 1-800-245-8673 “Seventy percent of the brand is sched- thebiltmore.com uled to be renovated this year, and we’ll be completely done by 2009,” Roe said. “It’s unique for a brand to have that high of a percentage renovating at one time.” On the midprice side, Extended Stay Ho- tels president Gary DeLapp said his com- pany’s Homestead Studio Suites was the first to offer wireless Internet access in all rooms and also has updated room design. ESH is working to bring that same stan- dard of consistency to the Extended Stay America brand, which is about three times the size of Homestead, he said. ESH has focused more on acquisitions and improv- ing existing properties rather than new builds. “When we bought the company, the previous ownership focused on being developers,” DeLapp said. “We’re focus- ing on how we operate the business, and it’s a much bigger challenge.” Upscale Upgrades

Continued from page 17 The key, Brush said, is keeping track of amenities guests want rather than trying to emulate other brands. For example, Westin has abandoned in-room fax ma- chines in exchange for flat-screen televi- sions and high-speed Internet access. “You can’t keep adding costs to the economic models,” she said. “Sometimes we have to take things out in order to justify the cost of new things.” In the Financial and Cultural Heart Expanding on the Marriott brands’ top of Downtown ANCHORAGE • BOSTON • BOULDER • BUFFALO • CHICAGO • CINCINNATI • DURHAM scores in facilities, Jannini said renovations LOS ANGELES • MINNEAPOLIS • NASHVILLE • NEW YORK • ST. LOUIS • SCOTTSDALE have configured lobbies with social busi- ness zones, with better lighting, music and More than 100 hotels worldwide. *Valid through 5/31/07, subject to availability. aromatherapy adding to the atmosphere. Visit millenniumhotels.com/onview to find out how your business Excludes tax. Some restrictions apply. Similarly, Westin has spruced up its hap- at Millennium Hotels and Resorts supports the arts. **AA mileage promotion valid through 6/30/07. py hour with local customs and foods, making it a more social event, Brush said.

18 Monday, March 5, 2007 www.btnonline.com Business Travel News SPECIAL BTN U.S. HOTEL CHAIN SURVEY, 2007 REPORT

cluding reducing Ramada Limited prop- a group, but we’re starting to see some Midprice Brands Build On Breakfast erties from about 350 to 250, Young said. more growth in the pipeline,” Hennessey Hennessey said the development pic- said. “It will keep room rate growth down Continued from page 16 nificant reservation revenue growth.” ture for economy properties could be a win because of supply but also will provide a Hampton, part of Hilton Hotels Corp., Ramada has been on the same path for in the long run for brands looking to se- better product for corporate travelers. The also scored high on its price-value relation- several years, having pared to about 600 cure more corporate travel. quality might be as such that they might ship. The brand, with more than 1,400 ho- hotels from about 1,000 hotels in 2000, in- “It tended to be more older and tired as get a stronger look from corporations.” tels, is adding hot breakfasts and new bed- ding and bath amenities, said Judy Christa-Cathey, vice president of brand marketing for Hampton Hotels. “Our breakfast and Internet are built into the cost. Corporations are looking at providing a quality stay and maximizing value, and that’s why we yield some of the most-traveled premiums,” she said. Country Inns & Suites, part of Carlson FLEXIBLE, MULTITASKING, Hotels Worldwide, had the highest-rated commission payment system and also re- INNOVATIVE — AND THAT’S ceived high marks for its staff and overall value. Steven Mogck, Carlson’s executive JUST THE CHEF. vice president of select service hotels, said one of the brand’s most recent initiatives has been to develop a method to receive immediate feedback from guests. “It al- lows us to adjust things quickly and turn Wait Until You See Our lemons into lemonade,” Mogck said. New Space “We’ve seen some wonderful results.” Featuring a top-to-bottom renovation of meeting space and TRAVELODGE’S TURNAROUND guest rooms, an award-winning In the economy tier—this year incorpo- new chef and the beautifully rating both the economy and budget tiers restored landmark Hudson Theatre. of years past—Wyndham Worldwide IACC-accredited conference center, brands dominated. Its Travelodge brand, dynamic Midtown location. which was at the bottom of the economy tier in the 2006 survey, surged to the top TO BOOK A MEETING slot this year, boosted by high scores in ar- 1-212-789-7546 ranging individual travel, appearance and millenniumbroadway.com overall value. Wyndham’s Ramada Lim- ited brand was second with high scores for staff and its commission payment system, followed by Wyndham’s Days Inn, rated best for corporate rate programs. Last year’s economy tier winner, Red Roof Inn, fell to fifth place, and 2006 budg- et winner Microtel Inns did not show enough respondent usage to be included. Travelodge has focused on breakfast and high-speed Internet access and was the first in the tier to mandate in-room safes in every property, said Ken Greene, presi- dent of Days Inn and group president of Travelodge and Howard Johnson. Ramada has focused on bed and bath improve- ments, and Mark Young, senior vice pres- ident for the Ramada brand, said its high staff rating could be attributed to improved training for franchisees and sharing best practices among managers. While the economy level has been the weakest performer industrywide for a number of years, according to LIA’s Hen- nessey, Travelodge is a good example of breathing new life into the tier, Greene said. The brand jettisoned more than 120 hotels it deemed of poor quality, representing On W. 44th Street in the Heart about one-third of domestic properties, and of Times Square is replacing them with higher-quality prop- ANCHORAGE • BOSTON • BOULDER • BUFFALO • CHICAGO • CINCINNATI • DURHAM erties. Similarly, Howard Johnson did so LOS ANGELES • MINNEAPOLIS • NASHVILLE • NEW YORK • ST. LOUIS • SCOTTSDALE with about 40 percent of its system, he said. “We’ve brought the system up over the More than 100 hotels worldwide. last three years, and we’re just now starting Visit millenniumhotels.com/onview to find out how your business Earn incentives. to see the impact,” Greene said. “There’s at Millennium Hotels and Resorts supports the arts. Call 1-800-920-WLMP. been double-digit RevPAR growth and sig-

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