Special Report: Top U.S. Chain Survey Four Seasons Derails Ritz-Carlton’s Six-Year Deluxe Reign

BY DAVID EISEN contributed to an 11.9 percent bump in revenue per Hengst. “In today’s world, it’s becoming increasingly our Seasons and Resorts bested Mar- available room, highest amongst all the pricing tiers. difficult to not do mixed use. I think it’s here to stay.” riott’s Ritz-Carlton in Business Travel News’ The growth in RevPAR can be attributed to an average Four Seasons has mixed-use developments in both F annual U.S. Hotel Chain Survey, as travel buy- daily room rate that was $251 in 2005 and is expect- Miami and San Francisco. ers rewarded the luxury brand based on its service, its ed to rise $18 this year. “For the first time, in 2005 we Indicative of the hotels in the luxury tier is the high- quality amenities and aesthetic properties—attributes saw room rates in the deluxe tier increasing, not only caliber service and amenities that they offer. Above that perpetually have personified the brand and gave by virtue of the lower-priced customers moving up all else, Hengst cited that superior service as what sets it its eminent designation this year. Ritz-Carlton led the their rates, but also the highest-priced customers start- Four Seasons apart and is an explanation as to why segment for the previous six years. ed paying substantially more,” said Sean Hennessey, customers keep coming back. “Our focus as a com- Mandarin Oriental and ’s St. Regis flip- CEO of Lodging Investment Advisors. “We saw the pany has always been—first and foremost—what do flopped this year, as the former assumed the third slot top going higher for the first time. They were willing we provide for our guests on the service level, because and St. Regis fourth. Fairmont Hotels rounded out to spend top dollar.” in the end it really is what it’s all about,” he said. “You the group. can talk about technology and design ele- Four Seasons’ high ranking in the corpo- ments—in the end analysis, it really is about rate rate program category also contributed the service provided.” For nine straight years, to its wresting the top spot from Ritz-Carlton. employees of Four Seasons have named the Although its rates are noticeably higher than company one of Fortune magazine’s 100 best hotels in other tiers—perhaps even in its companies for which to work, a distinction own—travel buyers praised Four Seasons’ that Hengst said reflects the staff’s pride in price-value relationship. their work. “Yes, we are more expensive in our corpo- To Himelstein’s surprise, Ritz-Carlton’s rate rates than our competitors, but when we travelers were most concerned with how they go into negotiations we always find that the kick-started their day. “We looked at what corporate negotiators say, ‘You provide the our customers told us and the most important value to our employees and that is worth some- thing to them was in-room coffee makers— thing to us,’ ” said Wolf Hengst, president of it actually came in number one. We always worldwide hotel operations for Four Seasons. knew people wanted a good cup of coffee in “We are higher, but we give better value and the morning, we just didn’t know they want- the companies think so.” ed to make it,” Himelstein said, adding that Conversely, Ritz-Carlton tends to price ac- higher thread-count sheets, upgraded bath- cording to the market. “We enjoy a very healthy rela- “Luxury in most major cities has done tremen- room amenities, Wi-Fi and flat-panel plasma televi- tionship with our clients and that doesn’t change year dously well and I don’t see any signs on the horizon sions also ranked highly. to year, because the supply and demand doesn’t,” said that leads me to think that there is any concern there,” Because hotels in the luxury tier tend to be splen- Bruce Himelstein, senior vice president of sales and said John Fox, senior vice president of PKF Consult- didly configured, it’s often overlooked that they are marketing for Ritz-Carlton. “We’re in dialogue with ing. “There is a slight increase in supply, but we haven’t geared toward the business traveler. clients all year long. Just like rates are increasing across added rooms as much as demand has increased.” “Our bread and butter is the business traveler— almost every sector, this won’t be any different. It’s a Mixed-use development is an ulterior reason why that’s really what represents the vast majority of our matter of degrees and a matter of how much for which supply remains at such low levels, especially in the business worldwide,” said Hengst. Four Seasons’ most clients, and those are market-based, not corporate. luxury tier. Such properties as The Plaza in New York recent opening in Palo Alto, Calif.—in the heart of We price to the market, not to the brand.” City are reconstituting to become a mix of both con- Silicon Valley—is streamlined to be as business-effi- The resurgence of corporate profits has contributed dos and guest rooms. The St. Regis in New York de- cient as possible. “We gear to the businessperson not to higher demand in the luxury sector, especially as votes three floors exclusively to residences, and—more only a comfortable place, but an efficient place where guests trade up from the lower hotel tiers. According than likely—condos will be erected in the footprint of they can work,” said Hengst. Four Seasons plans to to Smith Travel Research, year-over-year demand in New York’s Drake Hotel, once it’s razed. “Mixed use open properties soon in Moscow, Istanbul, Beijing the luxury segment increased 4 percent in 2005, which has been a staple of our development for years,” said and . Loews Holds Upper Upscale Title, As Tier Reinvests

BY DAVID EISEN vestors and other key players Loews’ victory is its second er,” he said. “We’re really train- rands among the upper upscale tier enjoyed hearty re- in the hotel industry. “It should consecutive in the category, ing our line employees in some- turns in 2005, allowing them to reinvest much of their flow through to the business while Westin and JW Marriott thing we call genuine personal B earnings back into their properties for facility upgrades travelers of the world, who will finished second and third last engagement: to be able to read while steadfastly adhering to the refrain that excellent service is see a substantial improvement year, respectively. Making a the business traveler and un- what keeps guests coming back. age daily rate of $140—a 6.7 in the value that they get,” he surprising move was , derstand the framework in retained its percent increase over 2004— said, adding that meetings busi- which finished at the bottom which that traveler has arrived hold atop the upper upscale cat- led to a 9.4 percent increase in ness specifically would improve of last year’s survey. Omni Ho- into our place of business.” egory in the U.S. Hotel Chain revenue per available room. as a result. tels and InterContinental JW Marriott and Westin per- Survey, staving off JW Marriott The steady rise in demand Loews continued to thrive rounded out the category. formed well in the meetings fa- in second and Starwood’s W within the upper upscale tier, as a single-brand hotelier, de- Buyers rated the brands on cilities categories. JW Marriott Hotels and Westin brands, intersecting with escalating av- spite its multi-brand competi- 13 criteria. Loews carried near- slightly bested Loews in its fa- which tied for third. erage daily rates, has produced tion. “There have been a num- ly every category, notching its cilities for non-resort meetings, The momentum gained in even more capital for hoteliers ber of hotels that have gone highest marks in ability to the only category in which the hotel industry in 2004 that who aren’t hesitant to reinvest through renovations in 2005, arrange individual travel and Loews did not finish first. spilled into 2005 was in no their profits to better their including Loews Annapolis, the physical appearance of its Meanwhile, Westin nearly drew small way predicated on the brand. “With the kind of Loews Ventana Canyon Resort hotels. Loews also shined in the even with Loews in the facili- performance of the upper up- growth in room rates leading in Tucson, Ariz., and Loews quality of its in-room and busi- ties for resort meetings catego- scale tier. According to Smith to higher profits, hotels will put Coronado Bay Resort in San ness amenities, as well as the ry. W Hotels was especially Travel Research, the upper up- more money into upgrading Diego,” said Loews Hotels pres- helpful and courteous staff cat- competitive in the categories of scale occupancy rate checked their facilities,” said Sean Hen- ident Jack Adler. “In addition, egory. Adler has looked to cul- arranging individual travel and in at 70.8 percent for 2005, nessey, CEO of Lodging In- we continue to reinvest the ap- tivate the latter. “We’ve done a corporate rate programs. highest among all the tiers. vestment Advisors, a firm that propriate amount of capital in lot of research into what is im- Unlike some upper upscale This, combined with an aver- offers counseling services to in- the balance of our hotels.” portant to the business travel- Continued on page 15

14 Monday, March 6, 2006 www.btnonline.com Business Travel News Special Report: Top U.S. Hotel Chain Survey UPPER UPSCALE CHAINS UPGRADE PROPERTIES and leisure demand is extremely strong, cornerstones of W Hotels’ entire growth we’re looking to grow our company in plan. However, W Hotels also is eyeing Continued from page 14 bathroom amenities and entertainment key cities across the country,” said Adler. international expansion of the brand. brands that can exude a highbrow feel- have been the norm. Furthermore, many hoteliers are be- “The biggest difference between 2005 ing in their models, Mike Jannini, ex- Concurrent with the return of the coming increasingly attracted to con- and what you’ll see in the long-term fu- ecutive vice president and general man- business traveler, hoteliers are looking to verting hotels over to mixed-use devel- ture for W is the global footprint,” Klein ager of brand management for Marriott, capitalize by building on a supply opments, as witnessed in the said. “We had City, and commended the JW Marriott brand for growth that only increased 1.5 percent transformation of New York’s Plaza Ho- Montreal this year and half of the delivering top-quality amenities and ser- from 2004 to 2005, according to Smith tel. W Hotels offers its W Residences in pipeline for the next three years is not in vice without the attitude. “Because it TravelIC019Paris_1=1_BTN_6.875x9.875.rg Research.C Y“The businessA demandN MA Dallas, G2/10/06E whichN 1:50T KleinA PMY said PageE is Lone1 Lof theOWthe BUnitedL States.”ACK has the Marriott name on it and built to a five-star standard, it’s got the up- 5 25 50 75 95 100 5 25 50 75 95 100 5 25 50 75 95 100 5 25 50 75 95 100 graded experience but doesn’t have the pretense, which younger people espe- cially like. There’s a market for people who want five-star luxury without the elitism,” he said. He added that busi- ness travelers love the brand for the con- ALL THINGS BEING EQUAL, sistency that Marriott offers, combined with top-notch amenities. Along with efforts to enhance existing THERE IS NO BETTER PLACE properties, hoteliers still were concerned with giving their customers the great- TO HAVE YOUR MEETING. est experience possible. W Hotels ea- gerly espouses its “whatever/whenever” mantra, which includes 24-hour busi- 1 DOLLAR = 1 EURO. ness centers with high-speed Internet, laundry services—even dog-walking ser- vices. It’s a policy that W Hotels’ presi- dent Ross Klein said leaves an indelible mark on guests and is a formula that is indoctrinated on W employees. “2005 began from a guest point of view with 6

the reevaluation and reeducation of our 0 / 6

whatever/whenever service as an op- 0 / 3

portunity to make a guest memory,” he : t r

said, “and when we say that we are full e s n

service and make dreams come true, we I

6

have to do both the sublime and also 0 / 6

the most basic.” JW Marriott also ranked 1 / 2

high in the category of staff courtesy, : e something Jannini credited to its hiring s a e practices. “We look at the character of a l e R person, not necessarily the technical s w

skills. We hire for friendliness, respon- e N

sibility and the ability to self-motivate, l e then we train the technical aspect.” v a r T

s

REINVESTING IN UPGRADES s e

n InterContinental Le Grand Hotel Paris i

While hoteliers in 2005 realized s u tremendous profits, they did not rest on B

r o

their laurels. Hoteliers were in a prime l o

position to upgrade and improve their C At I nter Continental Hotels & Resor ts in Euro pe, 1 US Dollar = 1 Euro. To take advantage o f this o ffer for your next 4 existing properties. “Businesses are ” mee ting, boo k your mee ting at any participating hotel betwee n January 1, 2006 and Marc h 31, 2007. For details, ter ms 5 spending more money on hotel stays 7

8 and co nditions, s imply co ntact your Acco unt Direc tor at your neares t Global Sales Office, c all 1.800.MEETING . 9 and group business,” Loews’ Adler said. (1.800.633.8464), e-mail [email protected] or visit www.intercontinental.com/meetings. x

“At the same time, we began to really ” 5 focus even more on creating a great 7 Amsterdam • Athens • Berchtesgaden • Berlin • Budapest •Cannes • Cologne • Cyprus 8 . guest experience.” Loews Hotels now 6 Dusseldorf • Frankfurt • Geneva • Hamburg • Istanbul • Madrid • Malta • Murcia, Spain (Opens Summer 2006) = Paris • Prague • Rome • Tel Aviv • Vienna • Warsaw • Zurich

features an Emeril Lagasse restaurant m i r

at its Miami Beach location and night- T

s i

ly performances by Michael Feinstein r a at its Regency hotel in New York. P

n Do you live an InterContinental life?

Heightening demand within the up- g i a per upscale tier also has spurred a new p m type of business traveler. Many travel- a c

ers are not satisfied with a standard sin- o r u

gle room and are bent on enjoying the E best amenities possible. “In the upper 1

= www..com/meetings upscale tier, a lot of the demand has 1 $

been focused on shifting to getting the 9 1

0 1.800.MEETING

features a guest wants in a room,” said C I

LIA’s Hennessey. “Many hoteliers have t This offer is not valid on previously booked business and is subject to availability. Hotels participating in this program and located outside of the n Euro Zone will co nver t their loc al c urre ncy to Euros. For details o n c urre ncy co nvers ion, please co ntact I nter Continental Global Sales as s tated indicated that most corporate travelers o above. Cer tain co nditions apply. ©2006 I nter Continental Hotels Gro up. All r ights reser ved. C t want an upgrade, not a standard room.” n I Limited items have become increasing- ly standard and upgrades in bedding, R.G.M. GKVCLIENT IC019_Paris_1=1_BTN_6.875x9.875FILE NAME B,QWHU&RQWLQHQWDOSGI GRAPHICS, INC 7XHVGD\)HEUXDU\ Business Travel News www.btnonline.com Job32848 Number Colors 4/c operatornpMonday, March date2-10-06 6, 2006 15 Special Report: Top U.S. Hotel Chain Survey DELUXE

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

1 FOUR SEASONS HOTELS 4.70 4.50 4.40 4.82 4.00 4.67 4.73 4.73 4.82 4.82 4.82 4.64 4.27 4.61

2 RITZ-CARLTON HOTELS 4.39 4.32 4.38 4.28 3.62 4.14 4.48 4.50 4.64 4.50 4.44 4.33 3.89 4.30

3 MANDARIN ORIENTAL HOTELS 4.60 4.20 4.00 4.00 3.60 3.33 4.60 4.60 4.60 4.40 4.20 4.20 3.80 4.16

4 ST. REGIS/LUXURY COLLECTION 4.00 4.00 4.13 3.67 3.38 3.50 4.22 4.40 4.44 4.30 4.38 4.22 3.78 4.03

5 FAIRMONT HOTELS 3.92 3.85 4.00 4.00 3.46 3.57 3.79 4.13 4.06 4.13 4.13 4.17 3.73 3.92

UPPER UPSCALE

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

1 LOEWS HOTELS 4.30 4.00 4.00 3.89 3.92 3.86 4.07 4.21 4.46 4.23 4.17 4.00 4.08 4.09

2 JW MARRIOTT HOTELS 3.59 3.58 3.90 3.91 3.71 3.60 3.83 4.00 3.68 3.67 3.58 3.64 3.71 3.72

3 W HOTELS 4.10 3.55 3.50 3.80 3.80 3.60 3.64 3.64 3.83 3.92 3.64 3.73 3.55 3.71

3 WESTIN HOTELS 3.74 3.57 3.97 3.81 3.37 3.13 3.72 3.73 3.94 3.94 3.88 3.78 3.61 3.71

5 OMNI HOTELS 3.60 3.78 3.50 3.89 3.40 3.33 3.64 3.91 3.83 3.83 3.50 3.40 3.50 3.62

6 INTERCONTINENTAL HOTELS 3.81 3.67 3.53 3.47 3.29 3.38 3.53 3.71 3.65 3.65 3.71 3.53 3.47 3.57

UPSCALE

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

1 WALT DISNEY WORLD RESORTS 4.67 4.38 4.54 4.45 4.00 4.00 4.20 4.60 4.47 4.33 4.14 4.29 4.13 4.32

2 HILTON INTERNATIONAL 4.00 4.00 4.07 4.07 3.69 3.73 3.94 3.94 4.13 4.00 3.88 4.13 3.81 3.95

3 MARRIOTT HOTELS & RESORTS 4.07 4.05 4.11 4.03 3.64 3.65 3.81 3.99 4.00 3.87 3.85 3.72 3.81 3.89

4 HOTELS 3.85 3.91 3.90 3.96 3.67 3.71 3.79 3.98 4.00 3.94 3.72 3.69 3.67 3.83

5 EMBASSY SUITES HOTELS 3.77 3.79 3.43 3.88 3.81 3.69 3.77 4.03 4.00 3.90 3.82 3.65 3.81 3.80

6 HILTON HOTELS 3.92 3.86 3.84 3.88 3.70 3.79 3.62 3.87 3.80 3.74 3.75 3.75 3.75 3.79

7 WYNDHAM HOTELS 3.87 3.93 3.90 3.79 3.57 3.75 3.87 4.00 3.63 3.71 3.69 3.69 3.72 3.78

8 3.73 3.54 3.75 3.79 3.56 3.70 3.71 3.76 3.94 3.88 3.88 3.69 3.29 3.71

9 HOTELS 3.80 3.69 3.50 3.69 3.53 3.67 3.71 3.89 3.68 3.74 3.50 3.46 3.55 3.65

10 MILLENNIUM HOTELS 3.90 3.63 3.14 3.64 3.50 3.29 3.50 3.85 3.62 3.62 3.42 3.73 3.77 3.58

11 SHERATON HOTELS 3.57 3.48 3.56 3.68 3.50 3.64 3.33 3.67 3.51 3.66 3.64 3.59 3.46 3.56

16 Monday, March 6, 2006 www.btnonline.com Business Travel News Special Report: Top U.S. Hotel Chain Survey MIDPRICE WITH FOOD AND BEVERAGE

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

1 4.27 3.86 3.36 3.78 4.19 3.41 3.92 3.74 3.66 3.55 3.87 3.78

2 3.97 3.88 3.40 3.80 3.80 3.33 3.71 3.85 3.82 3.66 3.97 3.74

3 INTERNATIONAL 4.00 3.46 2.89 3.93 3.25 3.33 3.65 3.41 3.38 3.08 3.76 3.47

4 3.64 3.13 3.20 3.46 3.29 3.17 3.46 3.38 3.71 3.50 3.46 3.40

4 3.80 3.72 3.54 3.37 3.11 3.16 3.56 3.31 3.13 3.21 3.56 3.40

6 3.40 3.17 3.40 4.00 3.50 2.67 3.60 3.40 3.00 3.00 3.60 3.34

7 QUALITY INNS 3.88 3.55 2.92 3.35 3.00 3.22 3.47 3.26 3.29 2.93 3.79 3.33

8 CLARION 3.29 3.67 2.75 3.14 3.33 3.00 3.13 3.00 3.00 3.00 3.25 3.14

9 INNS 3.50 3.00 3.25 2.83 3.00 3.00 3.00 2.83 2.67 2.60 2.67 2.94

MIDPRICE WITHOUT FOOD AND BEVERAGE

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

1 COUNTRY INNS & SUITES 4.00 4.25 3.00 3.60 4.14 4.25 4.25 3.88 3.71 3.83 3.91 2 LA QUINTA INN & SUITES 4.20 3.67 3.55 4.21 3.67 4.07 3.67 3.57 3.18 3.73 3.66 3 HAMPTON 3.91 3.46 3.38 3.88 3.79 3.83 3.65 3.67 3.57 3.84 3.64 4 WINGATE INNS INT’L 3.73 3.44 3.27 3.91 3.60 3.73 3.73 3.82 3.60 4.00 3.56 5 SPRINGHILL BY MARRIOTT 3.86 3.20 3.20 3.57 3.00 3.71 3.71 3.71 4.00 4.00 3.54 6 COMFORT INNS 3.43 2.75 3.17 3.50 3.40 3.50 3.25 3.50 3.38 3.75 3.32 7 AMERISUITES 3.50 3.60 2.86 3.50 3.33 3.45 3.45 3.00 3.00 3.36 3.28 7 COMFORT SUITES 3.50 3.29 2.80 3.50 3.50 3.56 3.33 3.33 3.14 3.22 3.28 9 3.81 3.30 3.00 3.31 3.00 3.59 3.33 3.40 3.00 3.47 3.27 10 FAIRFIELD INN BY MARRIOTT 3.62 3.33 3.00 3.39 3.30 3.55 3.32 2.91 2.71 3.30 3.17

UPPER UPSCALE EXTENDED STAY

ARRANGE CORPORATE COMMISSION QUALITY HELPFUL PHYSICAL QUALITY OF QUALITY OF OVERALL OVERALL INDIVIDUAL RATE PAYMENT OF COURTEOUS APPEARANCE IN-ROOM BUSINESS PRICE-VALUE AVERAGE Rank Chain TRAVEL PROGRAMS SYSTEMS FOOD STAFF HOTELS BUS. AMENITIESCENTER RELATIONSHIP SCORE

1 4.25 4.29 5.00 3.50 4.14 3.67 4.20 3.33 4.25 3.91

2 HOMEWOOD SUITES BY HILTON 4.16 3.82 3.80 3.71 4.00 4.18 3.97 3.79 4.00 3.86

3 RESIDENCE INN BY MARRIOTT 4.08 3.75 3.78 3.48 3.93 4.02 3.86 3.56 3.85 3.74

4 3.89 4.13 4.00 3.80 3.75 3.63 3.38 3.50 4.00 3.73

5 3.75 3.67 n/a 4.00 3.75 3.50 3.00 3.00 3.75 3.54 Methodology For BTN’s 2006 U.S. Hotel Chain Survey

usiness Travel News’ Top U.S. Hotel Chain food and beverage, economy, budget and upper up- spondents were required to have done business with Survey is an annual measure of corporate scale, upscale and midprice extended stay. Buyers rat- that chain within the past 12 months. B travel buyers’ opinions of the lodging brands ed hotels in each segment on six to 13 attributes, in- This year, BTN created a more extensive question- that their companies and clients use. cluding quality of food, physical appearance, corporate naire with sister company ACNielsen, which tabulat- Business Travel News sent an e-mail to a random rate programs, quality of facilities, and overall price- ed 322 completed responses to the online survey Dec. sample of 6,000 corporate readers responsible for ho- value relationship. Ratings are presented on a nu- 17, 2005 to Feb. 4, 2006. BTN used telemarketing firm tel buying decisions, asking them to rate hotels with merical scale from one to five, with the number high- Advanced Data-Comm to contact another 103 buyers which they do business in 10 hotel segments: deluxe, lighted indicating the highest score for each attribute. by telephone who added responses for the economy upper upscale, upscale, midprice with and without To qualify to rate a particular hotel company, re- and budget categories.

18 Monday, March 6, 2006 www.btnonline.com Business Travel News Special Report: Top U.S. Hotel Chain Survey Walt Disney World Wins Burgeoning Upscale Category

BY DAVID EISEN president of Walt Disney Parks and Re- flag’s success in the will leven brands vied for top billing in the upscale category of Business sorts. “Truly, there had to be a way to transfer effectively across the Atlantic. Travel News’ U.S. Hotel Chain Survey, with Walt Disney World Resorts make it more thematic and continue to “Hilton continues to focus on high- E coming out ahead by offering premium meeting facilities and staff ser- tell the story of the resort. Every one of growth markets,” she said. “We are ac- vice. Strong growth performance within the category also stimulated new devel- our resorts tells a story and we extend cessing opportunities for key brands and opment of many hotel brands—both domestically and abroad. this feeling into our hotel properties and taking existing Hilton brands—like Em- Disney carried every category, re- tels and Hyatt’s rebranding of meeting spaces.” Disney’s Coronado bassy Suites—and applying them inter- ceiving high marks for its ability to AmeriSuites to Hyatt Place Hotels. Springs boasts more than 220,000 nationally. Hilton’s attraction for the arrange individual travel, its meeting fa- These new brands will offer upscale square feet of meeting space with a deal is the international opportunity for cilities and the helpfulness of its staff. amenities at a price-conscious rate and Southwestern feel. its brand range.” Hilton International’s Falling in behind Disney was Hilton In- augment a supply growth that Smith Disney offers a meetings service, con- existing portfolio includes the Conrad, ternational, which in January was Travel Research estimated at 1.4 per- ceived in 2004, to assuage some of the Hilton and Scandic, its respective lux- bought by Hilton Hotels Corp. for $5.71 cent from 2004 to 2005. burdens that meeting professionals en- ury, upscale and midprice offerings. billion, in second place. As the upscale cate- counter and to help exhibitors maxi- Hotels across the spectrum are ded- Marriott, Hyatt and gory continued to ab- mize their trade show investment by icating more resources to ensuring that Hilton brand Embassy ‘ sorb new entrants, abetting the exhibitor in anything from their guests—both business and Suites rounded out the hoteliers jockeyed for technical services to dinner reservations leisure—have memorable experiences. top five. There will be no position to ensure their for clients. “It’s an opportunity for the This service guarantee is something at The upscale seg- deterioration on the brands remained rele- exhibitor to leverage the things that Dis- the core of Disney’s model and has been ment is cluttered with vant. However, Sean ney may be able to do to help them do taught to its employees and fine-tuned many brand offerings basis of too many Hennessey, CEO of business with their customers that are over the years. “Researching and un- and has been one of Lodging Investment attending their trade shows,” Aguel said. derstanding what our guests are telling the fastest-growing cat- hotels coming in and Advisors, said growing As demand in the upscale sector con- us is something we exhaustively look egories during the past dividing the pie. The supply will not mar- tinues to surge, hotel companies are be- at,” said Aguel. five years in terms of ginalize hotel profits. coming less hesitant to populate areas While premium service is pivotal to demand. That has re- only concern is if the “There will be no dete- with their brands both domestically and Walt Disney Resorts’ success, Disney sulted in an occupan- economy slows.’ rioration in the busi- internationally. Hilton Hotels Corp.’s doesn’t neglect keeping pace with tech- cy rate that is at the top ness on the basis of too expensive buy of Hilton Group Plc was nology. It is in the process of refur- of the tiers—70.7 per- LIA’S SEAN HENNESSEY many new hotels com- done to globally grow the brand, similar bishing the Contemporary Resort, one of cent in 2005, which ex- ing in and dividing up to what Marriott and Starwood already its 22 operated hotels, with many up- ceeded 2004’s rate by 1.6 percentage the pie,” he said. “The only real concern have done. The purchase added Hilton graded features, including flat-panel points, according to Smith Travel Re- is if the economy slows.” Group’s 400 hotels to Hilton’s existing televisions in the guest rooms, high- search. The impressive growth in the Optimism has not slowed hoteliers portfolio, but also will enable Hilton to speed Internet capability and wireless segment is spurring more property de- from adding value to their brands. “At populate Europe and Asia with its do- Internet in meeting spaces. Aguel not- velopment, even spawning neo-brand Disney, we think that all the meetings mestic brands. Linda Bain, vice presi- ed that these revisions, as well as new offerings, including Starwood’s Aloft and group spaces don’t need to be util- dent of group communications for bedding and workspaces, were aimed brand—debuting in 2007—NYLO Ho- itarian,” said George Aguel, senior vice Hilton International, said that the Hilton to increase business traveler comfort. Courtyard Takes Midprice With F&B; Country Inns Without

BY DAVID EISEN sulted in an increased occupancy rate over 2004 as and room amenities that are similar throughout the orking more closely with corporate trav- well as an 8 percent increase in revenue per available brands. However, many hoteliers in the midprice tier el buyers to improve continuity in the room. This has prompted excitement from analysts are upgrading packages to make them less represen- Wroom procurement process and up- who have cited languid growth in the sector over re- tative of a midprice stay. grades in both rooms and public spaces highlighted cent years. “Very low supply growth in almost all the “We introduced a bedding package to every hotel in a robust year for the midprice with and without food sectors and the economy continued to chug along,” our system worldwide,” said Mike Jannini, Marriott ex- and beverage categories, especially in the latter tier said Sean Hennessey, CEO of Lodging Investment Ad- ecutive vice president and general manager of brand where double-digit percentage growth in rev- management. “It was a dramatic upgrade from enue per available room was reached. Industry what was typical in that moderately priced seg- analysts are predicting the tier will outpace most ment to something much more luxurious. Cus- others in 2006. tomers really reacted to that.” Courtyard also Courtyard by Marriott retained its hold atop introduced new ergonomic chairs, workstations the midprice with food and beverage group, and track lighting. “It’s very plush for the mod- edging its main competition in the class, Hilton erately priced brand,” said Jannini. Garden Inn, by scoring high in its ability to Not to be outdone, Hilton Garden Inn also arrange travel and a commission payment sys- began implementing new bedding and upgraded tem that travel buyers contended was the best amenities for its 245-plus properties. Mark No- in the class. gal, vice president of marketing for Hilton Gar- Hilton Garden Inn received high marks for den Inn, said the brand has partnered with both the physical appearance of its properties, its in- Phillips and office furniture manufacture Her- room business amenities and overall price-val- man Miller to create an even higher standard ue relationship. of in-room business amenities in a new room Best Western International made the most the brand is rolling out. Nogal is targeting an dramatic move in the category, moving up four audience that uses midprice hotels, but still slots in the survey from last year to third. Trav- banks on the idea that it will receive top-notch el buyers noted its corporate rate program as a rea- visors. “Even the midprice with food and beverage facilities and service. “We get the middle-management son for its strong bump. InterContinental’s Holiday sector has seen an improvement in demand—really types or road warriors—the ones who get most of the Inn and Starwood’s Four Points by Sheraton round- for the first time in quite a while.” work done,” he said. “They are perfect for our brand.” ed out the top five. The growing number of midmarket travelers has Hilton Garden Inn’s attention is shifting squarely on Continued dwindling supply levels within the mid- forced midprice hoteliers to redevelop and reshape the business traveler. This is readily apparent in what price with F&B sector—a decrease of 2.8 percent, year their existing products. The present-day norm con- Nogal described as “owning the goodbye,” whereby over year, according to Smith Travel Research—has re- sists of hoteliers implementing new bedding programs Continued on page 20

Business Travel News www.btnonline.com Monday, March 6, 2006 19 Special Report: Top U.S. Hotel Chain Survey UPSCALE EXTENDED STAY

ARRANGE CORPORATE COMMISSION HELPFUL PHYSICAL QUALITY QUALITY OVERALL OVERALL INDIVIDUAL RATE PAYMENT COURTEOUS APPEARANCE BUSINESS IN-ROOM PRICE-VALUE AVERAGE Rank Chain TRAVEL PROGRAMS SYSTEMS STAFF HOTELS CENTER BUS. AMENITIES RELATIONSHIP SCORE

1 TOWNEPLACE SUITES BY MARRIOTT 4.15 3.77 3.71 3.79 4.00 3.50 3.93 3.71 3.65

2 4.18 4.20 3.67 4.10 3.91 3.25 3.64 4.00 3.37

MIDPRICE EXTENDED STAY

ARRANGE CORPORATE HELPFUL PHYSICAL QUALITY QUALITY OVERALL OVERALL INDIVIDUAL RATE COURTEOUS APPEARANCE IN-ROOM IN-ROOM PRICE-VALUE AVERAGE Rank Chain TRAVEL PROGRAMS STAFF HOTELS AMENITIES BUS. AMENITIES RELATIONSHIP SCORE

1 HOMESTEAD STUDIO SUITES 3.83 3.80 3.60 3.80 3.60 3.50 3.83 3.56

2 3.67 3.67 3.00 3.00 3.67 3.00 3.67 3.15

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 RED ROOF INNS 3.56 3.41 3.00 4.14 3.79 3.86 3.64

2 3.66 3.50 3.03 3.89 3.53 3.85 3.58

3 RAMADA LIMITED 3.82 3.13 2.91 4.00 3.71 3.70 3.54

4 3.61 3.36 3.08 3.75 3.46 3.71 3.50

5 3.43 3.28 2.91 3.79 3.46 3.68 3.42

BUDGET

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 MICROTEL INNS 4.13 4.00 3.25 4.67 4.33 4.67 4.18

2 3.74 3.30 3.00 3.80 3.63 3.80 3.54

3 3.53 3.29 3.03 3.80 3.71 3.80 3.53

COURTYARD TOPS MIDPRICE W/F&B ceipts and recording things.” were pretty, but latent. We have ling, the midprice without F&B Courtyard also reconstitut- created a seamless indoor/out- tier is encountering perhaps the Continued from page 19 as possible. ed its public spaces, which it door oasis experience. Travel- biggest resurgence of any tier travelers are contacted by staff “One of the big things we did said struck a chord with busi- ers will feel like they are in an in the hotel industry. The tier the evening before departure to in 2005 was our best-rate guar- ness travelers. The Courtyard oasis in the middle of a busi- had the smallest declines in garner feedback and ensure antee that we extend to the trav- name evokes an enclosed gar- ness trip.” RevPAR of any other tier dur- that their stay was pleasant. el professionals so there would- den area—something Court- Hotels in the tier also have ing the industry downturn of “Our business traveler is our n’t be a third-party Internet yard tried to build upon by begun to introduce new food 2001 and—according to Smith key constituency and we want company that would undercut what Marriott’s Jannini called items, especially for breakfast, Travel Research—had an 11.5 to know that their stay was us,” said Kurre. Added Hilton’s “activating the oasis.” as many business travelers in- percent increase in RevPAR in good,” said Adrian Kurre, se- Nogal: “We are working with “Courtyard has reinvented sist on a certain diet. This usu- 2005 over the year before. The nior vice president of brand our business travel sales team its model because it launched ally consists of food selections one force dimming the tier’s management for Hilton Garden to really get to the folks who are 23 years ago and business trav- high in protein. “That is a big growth is emerging supply as Inn. Recognizing this has setting up the arrangements for el is different now than it was deal for business travelers— the tier continues to absorb prompted Hilton Garden Inn to the corporate traveler. We are then,” Jannini said. “We’ve most of them are Atkins or foundering midprice with F&B improve the structure of its cor- bundling our services so that opened up the great room con- South Beach,” said Jannini. brands that convert to non- porate rate program to make travelers don’t need to worry cept, with an upscale sophisti- Sustaining an even higher F&B. Lodging Econometrics, the entire process as seamless about things like keeping re- cated lobby. The courtyards degree of success than its sib- Continued on page 21

20 Monday, March 6, 2006 www.btnonline.com Business Travel News Special Report: Top U.S. Hotel Chain Survey COUNTRY INNS WINS MIDPRICE W/O F&B TITLE clean after every checkout. “These are economic swings,” he said, “and for that small things that are collectively pow- reason it is becoming a more dominant Continued from page 20 offerings as a grab-and-go breakfast, erful to make customers feel wel- force in the industry. It appeals to the an industry authority on hotel real es- complimentary high-speed Internet comed,” added Cordell. needs of many travelers today who are tate, detailed this growth: Pipeline pro- access and a user-friendly alarm clock. The midprice categories continue to seeking value. They don’t care as much ject counts increased 36 percent year Hampton Inn is in the second phase outshine many of the other tiers be- about a restaurant or bar because they over year in 2005, the highest of any tier. of its endeavor, which calls for up- cause, as Cordell points out, the tier is are going to go someplace else for that Despite the supply growth, it’s expect- grades in bedding that will be stan- much less affected by downward eco- anyway. The midscale category has been ed that the tier will continue to profit as dard in every Hampton guest room by nomic trends. “The midscale category and will continue to be a dominant seg- the occupancy rate is expected to in- June. The duvet and cover are washed is much more resilientLIVE: 6.875" to changes and ment in our industry.” crease two percentage points in 2006, coupled with an average room rate an- ticipated to increase 5.5 percent to $80, according to Smith Travel Research. Travel buyers selected Carlson’s Country Inn and Suites as their top mid- price without F&B selection, followed by La Quinta Hotels, Hilton’s Hampton Inn, Wingate Inns International and SpringHill by Marriott. Country Inn and Suites carried six of 11 categories, ex- Stay 2 times, celling in its ability to arrange travel, the physical appearance of its hotels and earn a free night. staff friendliness. Similar to many of the Yourclientscanusetheir brands in the midprice with F&B tier, hoteliers rolled out new bedding pro- free night at more than grams and services. 1,000 Choice hotels. “In 2005, we looked to upgrade the Choice Privileges® standards of the brand,” said Nancy With the rewards program, Johnson, executive vice president of when your clients stay just two separate times Country Inns and Suites. “We launched at any Comfort Inn®, Comfort Suites®, Quality®, a new bedding program and modified our breakfast offering—what used to be Sleep Inn®, Clarion® or MainStay Suites® hotel in a continental breakfast is now really an the U.S., , Mexico or Caribbean, they’ll expanded light breakfast.” The latter earn enough points for a free night on a future ‘ stay at more than 1,000 hotels. The more times they stay between February 1ST and April 15TH, he midscale category T the more free nights they’ll earn. is more resilient to changes and economic swings, and so • No blackout dates for free nights. " 5

• Redeem points for a free night or miles/credits 7 8 .

is becoming a more dominant 9

with participating airlines anytime in the : E V force in the industry.’ I next two years. L

HAMPTON INN’S PHIL CORDELL The Choice Privileges rewards program. It’s portrays how the line may slowly be blurring between what a midprice brand easy, fast and free to join. For reservations without F&B is and is not. or more information, visit choicehotels.com or Country Inns and Suites also aimed call 800.228.5050. 6 to increase its rapport with travel buyers 0 / 3 2 /

and increase fluidity in the room-book- 1 ing process. “We want to make it easy 0 for the business traveler to book a stay 800.228.5050 with us,” Johnson said. “We have lis-

J choicehotels.com N

tened to the travel agents who say: ‘OurT B _ 5

customers are your customers.’ So when7 D 8 . H 9 R they book you into the hotel, they wantx Click on Travel Professionals 5 7 8 . to make sure that we are delivering on6 _ 2 4 the promise they made.” Carlson Hotels2 5 P T K N

is one of the only companies that main-I Y I M H C tains a loyalty program in which bothC travel buyers and agents receive loyal- Choice Hotels is a proud broadcast advertiser on NBC’s telecast of the 2006 Torino Olympic Winter Games. D L ty award points. 2 O 1 N 7 R 2 3 Hampton Inn’s strong RevPARA growth—it never has had a year of negative performance—validated the C N I

strength of the tier. Phil Cordell, se- , S C

nior vice president of Hampton brand I H . P management, said much of HamptonM . A

G COMFORT INN COMFORT SUITES QUALITY SLEEP INN CLARION CLARION GALILEO MAINSTAY SUITES EXCLUSIVELY CHOICE R CI CZ QI SZ CC CR MZ EC Inn’s success is predicated on its. R G The free night is based on an 8,000 point Choice Privileges award night hotel. A free night may require more points at certain hotels. Members earn points for stays when paying eligible rates. “Make it Hampton” initiative of 127 A stay is defined as any number of consecutive nights at one hotel regardless of check-ins or check-outs. Bonus points will be added to points earned from every two qualifying stays, with arrival between February 1, 2006 and April 15, 2006, to reach the 8,000 point award level. Allow a minimum of 15 days from check-out for points to post to your account. For program details changes and improvements that was and point redemption rules, visit choiceprivileges.com. rolled out in 2004 and still is in ©2006 Choice Hotels International, Inc. All rights reserved. progress. The campaign includes such

Business Travel News www.btnonline.com Monday, March 6, 2006 21

PUB: Bus Travel News Jr. PUBDATE: Feb 6, 06 AS Approval 1: AS Approval 2:

JOB#: CHIINTP5242 PUBLICATION: Bus Travel News Jr. AD: Greg C TRAFFIC: Holly PROD: Margie OPERATOR: Martha M BLEED: n/a TRIM: n/a LIVE: 6.875 x 9.875 REVISED: 1/23/06 - 1:02 PM PRINT SCALE: 100% PAGE NUMBER: 1 Y IMAGES: nbclogo.stkd [Converted].eps @ 18.9%, 6(noEL,RI)_.375h_®_4C.eps @ 100%, WSYT_100%< K Arrow_CHI_®_4C.eps @ 52.1%*, 2004PromoIllus_11/24_FPO.tif @ 36% FONTS: Helvetica 56 Italic, Helvetica Neue, I Garamond LightItalic, SonGothic-Black, SonGothic-Bold, SonGothic-Book Special Report: Top U.S. Hotel Chain Survey Homewood, TownePlace, ESH Top Extended Stay Tiers

BY DAVID EISEN brand. DeLapp said that 100 more prop- ment system, for which it received a per- xtended stay brand hoteliers shifted their focus by introducing down- erties will be converted within the next fect score. “The hotels are very dedicat- town properties and implementing service upgrades in an effort to cap- 18 months. ed and committed to the travel agent E italize on the ever-changing needs of the business traveler, as evidenced Global Hyatt Corp. acquired Sum- and consortia community, just like Hy- in research for Business Travel News’ annual U.S. Hotel Chain Survey. merfield Suites’ 21 hotels on Jan. 5 as att, so this is a good match for our ac- Homewood Suites by Hilton contin- of its rooms in 2006 and Summerfield part of the vertical integration of its port- quisition,” said Abrahamson. “Hyatt will ued its reign at the head of the upper will introduce the Hyatt Grand Bed as folio and soon after announced it would continue to be dedicated to this high per- upscale extended stay category, but one of its new signature items. rebrand it as Hyatt Summerfield Suites. formance level.” TownePlace was tops shared the distinction with last year’s Extended stay brands increasingly Hyatt’s move is part of an aggressive in categories including the the physical third-place finisher and Hyatt’s newly are making services like in-room high- buying pattern that started in 2005 with appearance of hotels and its commis- acquired brand, Summerfield Suites, speed Internet complimentary, a service its acquisition of AmeriSuites from the sion payment system, while Candlewood which leapfrogged runners-up Resi- that is indispensable to bested TownePlace in dence Inn by Marriott and InterConti- business travelers. Both categories including its nental Hotels’ Staybridge Suites. Homewood and Sum- ability to arrange indi- Hawthorn Suites, in which Hyatt owns merfield give their cus- vidual travel. a majority stake, rounded out the group. tomers Internet free of “We build the expe- The race for the top spot in the up- charge. “Adding tech- rience around being scale extended stay category mimicked nology upgrades has able to provide local last year, as TownePlace Suites by Mar- been very important, knowledge,” said Lau- riott outpaced IHG’s Candlewood Suites, particularly high-speed ra Bates, senior vice albeit by a closer margin. Internet access,” said president of extended The midprice extended stay division Jim Abrahamson, Hy- stay brand manage- was a win-win for Extended Stay Ho- att’s senior vice presi- ment for TownePlace tels, as its offerings finished one and two. dent of acquisitions and Suites. “Travelers want Homestead Suites took the top prize, development. to get to know the area. with Extended Stay America following Extended Stay Hotels They often have new- up. The Blackstone Group bought the in the midprice catego- found time and want to brands, previously separately owned, in ry is ramping up efforts know where the best 2004 and consolidated them under the to introduce wireless pizza joint is or cheap- Extended Stay Hotels umbrella. Web capability in all its est gas station.” Extended stay companies are seek- hotels. “Our big initiative that speaks to Blackstone Group, which will be re- For the extended stay category as a ing to develop more properties to keep the corporate business travelers is the branded as Hyatt Place Hotels in 2006. whole, “the increases in demand are at up with burgeoning demand. Primarily implementation of Wi-Fi at all our ho- Buyers using upper upscale extend- a rate faster than the increases in sup- for the traveler staying more than five tels last year,” ESH’s DeLapp said. ESH ed stay chains ranked Summerfield as ply,” said Fox. “We’ll probably hit equi- nights, only 5 percent to 6 percent of has most recently made a foray into the the leader in eight of the 12 categories, librium within a year or two, because U.S. hotel rooms are categorized as ex- upscale extended stay category with its while Homewood carried only one but there is a lot on the drawing board. tended stay. Sean Hennessey, CEO of Extended Stay Deluxe brand offering. was competitive throughout. Summer- There are cycles and we happen to be Lodging Investment Advisors, high- The brand’s 63 properties provide more field excelled in its ability to arrange in- riding a period that is close to the crest. lighted the extended stay tier as an up- guest amenities and bigger suites and dividual and group travel, its corporate It will come down in the near term, but start in the hotel industry that will con- are conversions of ESH’s Studio Plus rate program and its commission pay- is by no means near a trough.” tinue to gain prominence. “Analysts continually indicate that the amount of demand that will continue to grow at Red Roof, Microtel Top Lower Segments extended stay will make it one of the darlings of the industry and supply will BY DAVID EISEN crotel swept every category in the budget portion of the sur- continue to grow, but occupancies will ncreased demand and hearty profits in the hotel in- vey and scored extremely high in both the physical appear- remain strong and the high value rela- dustry seeped down into the economy and budget sec- ance of its properties and price-value relationship. “Our prices tionship will continue to make it an at- I tors, as hoteliers looked to upgrade their properties with increased in 2005, maybe 6 or 7 percent,” Leven said, “but in tractive option,” he said. new amenities and services, while still maintaining a consis- the budget tier that translates to only two or three dollars.” What was once a product that ser- tent price-value relationship. Travel buyers singled out Microtel as having the best com- viced suburban areas almost exclusive- This year, Red Roof Inns edged Super 8 Motels for the mission payment system in the budget sector. “2005 was the ly now is entering downtown destina- top position in the economy sector, with last year’s winner Ra- first year that we essentially had the travel agent centralized tions. “Extended stay is moving into mada Limited, Days Inn and Travelodge falling in behind. pay commission program,” said Leven. “That and our cor- some of the urban locales—the Resi- U.S. Franchise Systems’ Microtel Inns dominated the budget porate rate program were a big deal.” dence Inn in Manhattan that opened in class, beating out Motel 6 and Econo Lodge. “We have a state-of-the-art reservation system, which in- late fall 2005 is an example,” said John “There’s always been demand for an economy product for cludes our Click 6 Internet rates, and a national salesforce,” Fox, senior vice president of PKF Con- business travelers who want to be provided with quality said Jim Amorosia, COO of Motel 6. “We go after corporate sulting. Homewood, too, offers a flexi- amenities,” said Joe Wheeling, COO of Red Roof Inns and accounts, trucking firms and believe that we have a very good ble prototype that can by implemented executive vice president of North America. Red Roof position for secondary and tertiary businesses.” Super 8 also into urban areas. Developers also are Inns is in the midst of a massive renovation process that be- launched in 2005 what it calls its “refresh” program, which building Homewood Suites adjacent to gan in 2004 and will give the brand a more contemporary will infuse rooms with new designs. Amorosia said the entire such other Hilton offerings as Hilton feel and look. system will be completed by year-end 2008. Garden Inn and Embassy Suites to de- “One of the reasons travelers come to us is because they Although economy and budget hotels are known to charge rive efficiencies. Gary DeLapp, presi- know what the are going to get. The same amenities in each rates that can be 30 percent below midprice hotels, the sec- dent and CEO of Extended Stay Hotels, room with the same continental breakfast in each proper- tor amassed a RevPAR growth of 6.9 percent in 2005 over noted that this progression to urban ty,” said John Valetta, president of Cendant’s Super 8 Mo- 2004, according to Smith Travel Research. The segment also builds is indicative of the changing tels. Super 8 will implement free high-speed Internet in all of had a modest increase in average daily room rate—3.5 per- needs of the business traveler, adding its properties by August and new televisions with free cable, cent over 2004—which translated into an ADR of $50. that ESH just opened an Extended Stay including such premium channels as HBO. “The industry is having a tremendous resurgence from Deluxe in downtown Ottawa. “We are keeping the economy product where it is, but im- what was the worst recession, from 2001 through the middle Both Homewood and Summerfield proving our amenities like bedding and continental break- of 2003,” said Amorosia. “But we didn’t sit on our hands—we are rolling out new bed models. Home- fast,” said Mike Leven, CEO of U.S. Franchise Systems, adding saw the opportunity to invest because we knew it would come wood will integrate its Serta Sweet that Microtel is the only economy chain to offer free local back. It’s very cyclical and the strong demand will remain Dreams bedding package in 50 percent and long distance calling and free high-speed Internet. Mi- and keep in line with supply.”

22 Monday, March 6, 2006 www.btnonline.com Business Travel News