Marriott celebrates its business brand

Bill Marriott, chairman and CEO of Marriott International, praised the use of space at the new Courtyard Newport News (Va.) Airport hotel, which hosted the brand’s 25th anniversary celebration. The hotel showcases the brand's new lobby and exterior design and refreshed guestroom design. Marriott said he never imagined when the first Courtyard opened that there would be 800 hotels to follow.

When asked about the timing of the redesign, Marriott said, “If you need the opportunity to drive rate, this will give it to you.”

Research found that guests would pay a $10-$15 premium for hotels with the new lobby, said Brian King, VP, global brand manager for Courtyard by Marriott. “We've seen a 27 percent lift in intent to recommend and intent to return scores from our customers."


King hopes to have 500 properties with the new lobby or elements of it by 2011. Courtyard worked closely with its franchise advisory board on the new design. “We’re not just going to throw things out there and say, ‘Do it,'” he said. “What makes this manageable is that it is a kit of parts. Regardless of footprint, we can get the concept in there.”

A new interior design package for guestrooms has a global inspiration that aims to be modern, warm and approachable. Tubs have been taken out of plans for most bathrooms in favor of glass showers. Cost per key will remain about $87,000.

Dilip Desai, senior managing partner for LTD Management Co., which owns and operates the Newport News property, said during his seven years on the Courtyard FAC, Marriott and the owners give and take. “That’s what I like about Marriott. We are the owners and they are listening to us,” he said.

Marriott International will open 30,000 rooms this year and has another 30,000 in the pipeline for 2009. The majority of them already are financed, Marriott said. “We’re good through ’09, and hopefully things [with the economy] will start to turn around by then,” he said.

For a Marriott video of the anniversary event, click here.

Join H&MM for a live chat with TripAdvisor

TripAdvisor reports that three reviews and opinions are posted to its website every minute of every day. And with nearly 20 million having been contributed so far, chances are your hotel can be found there.

As the largest online travel community, TripAdvisor has become a trusted brand for travelers who seek out information vital to helping them plan their trips. They’re not only reading reviews that very well may sway whether they book a room at your hotel, but they’re posting them, too.

I spoke to a number of hoteliers for our Nov. 3 issue about the trend of online reviews, asking them how seriously they take them, what measures are in place to monitor them and how they respond. Some operate in-house and others work with vendors, but all said they pay attention.

Executives from TripAdvisor, however, told me only a small percentage of hoteliers take advantage of the ways they can actually become involved in the site, whether that be signing up for alerts when new reviews are posted about their properties or posting updated hotel descriptions or photos.

So we here at H&MM thought it was time to have both sides sit down and talk.

Join us at 11 a.m. on Wednesday, Dec. 3 for a live online chat with TripAdvisor. Learn how reviews are posted, what steps you can take to be a part of the community and how other hoteliers are using TripAdvisor listings to their advantage.

To be alerted when registration is open, all you have to do is text 806F732 to 64842, and I’ll also keep you posted right here on HotelTalk.

Leisure travelers trading down, not out

The Travel Industry Association hosted a conference call today to present its 2009 Travel Forecast, and the news seemed surprisingly upbeat, at least compared to other forecasts we've been seeing.

Peter Yesawich, chairman and CEO of Ypartnership, reported the October results for the latest Traveler Sentiment Index, which gauges consumers’ interest in leisure travel and their perceived ability to travel. The TSI identified 60 percent of American households as travel households, and from that 60 percent, travelers rated their opinions on six measures. Three of the measures— perceived safety, quality of service and affordability—were rated highly among respondents, with affordability being up dramatically from July (39.1 to 53.1). The other three measures—perceived time to travel, interest in travel and availability of money to travel—dragged the rating down and implied the age old factors of time and money are big issues in the current lull.

The interesting aspect of the numbers is they remained largely unchanged from the TSI done earlier in July, with some numbers getting a boost, which means whatever the impact of the current economic downturn, the leisure market may have already bottomed out.

According to Yesawich, the increase in promotions and deals has led to the higher perception of affordability. "Value is king to the consumer, demonstrated by those saying they want to travel and are looking to do so differently. Three-fourths expect to book some inclusively priced vacation or a packaged vacation," Yesawich said. "People want to know the cost before departure. Managing a budget is important."

Six out of 10 travelers plan to comparison shop for prices, which is an all-time high in the TSI numbers. "People are defaulting to the online world to look at immediate promotional offers," Yesawich said. A growing trend is the all-inclusive trip, which travelers have been looking for more and more.

Another component in this slight increase in consumer confidence (which dropped to a 15-year low in July) is the drop in gas prices, which re-energizes the car trip and helps destinations with close proximity to large populations.

However, as always, there is a downside to this news. This increases a potential need to drop rates in order to draw the budget-conscious travelers, who often chase deals instead of destinations. Also, seven of 10 respondents plan to stay fewer nights on trips. And more remote destinations aren't helped as much by the lower gas prices.

Bottom line, leisure travelers still say they are going to travel—it just might be down the chain scale and for fewer nights.

Courtyard turns 25, unveils new lobby

The Courtyard by Marriott brand celebrated its 25th anniversary with the grand opening of its first new-build property to boast the redefined lobby. The Courtyard Newport News (Va.) Airport hotel, which is owned and operated by LTD Management Co. of Chesapeake, Va., is the first of a dozen that will have the new lobby this year. In 2009, 150-175 new-builds or renovations will showcase the new lobby design in whole or in part. The Newport News property also is the first Courtyard to feature the new exterior look and the refreshed guestroom design. Click here for video.


Dilip Desai, senior managing partner for LTD Management Co., says his company wanted to be the first new-build to roll out the lobby redesign. In fact, the hotel was already under construction when he saw the full-scale model, but he was so impressed with the plans that LTD worked with the architect, Jonathan Nehmer + Associates, to make the changes.

The design of the lobby is centered on a concept Marriott has been working on for several of its brands in the past couple of years—a lobby where guests can get out of their rooms to gather with colleagues or enjoy “public privacy.” This means a lot of different seating configurations, all of which are “laptop friendly,” according to Brian King, VP, global brand manager for Courtyard by Marriott. Instead of guests meeting by the elevator to go out to dinner, they can meet at the lobby bar and have a drink first. And that lobby bar becomes a coffee bar in the morning.

One of the centerpieces of the lobby is the GoBoard (similar to Microsoft Surface in Sheraton Hotels & Resorts), a 52-inch LCD touch screen with local information, maps, weather and news headlines. Guests can navigate using the touch screen to find a restaurant and then get directions.

Guests without a laptop have plenty of options. A business library features three computer terminals with a free printer and three separate computer stations for printing boarding passes. There also are books for guests to borrow. High-definition TVs are everywhere you look with several large screens in communal seating areas and smaller TVs with remote controls in booths. King joked that a remote is all it takes to make people happy. The “courtyard” area—in this case a patio—has cushy seating circling fire pits.


A new F&B concept replaces the Courtyard buffet with more made-to-order and ready-made options and puts F&B “in the center,” King says. “Food sends a signal about gathering, sharing, shedding the day,” King says.



This has a similar feel to Hyatt Place, where you can get something hot to eat in the lobby and work on your laptop or watch a little TV before heading to your room for the night—but the Courtyard lobby seems a lot roomier. Starwood's aloft brand also is focusing on its large lobbies with lots of seating configurations, a bar, a pool table, board games and a DJ that spins on certain nights. These options—especially for business travelers—give guests a reason to venture out of their rooms and interact, or at least feel less lonely. And that’s exactly the point. As it says on the Courtyard keycard: “The lock on your room is not meant to keep you in there.”

Marriott is betting on this redesign to increase guest satisfaction and, in terms of revenue, make the lobby do a little more to earn its keep. The company spent $2 million on research that said guests want this, and several other brands also are embracing the lobby. Will guests do likewise? Let us know what you think.

Lexus Hybrid Living Suites Q & A

Fairmont Hotels & Resorts teamed up with Lexus this summer to offer a package called the Lexus Hybrid Living Suites at two of its hotels. Guests staying in this suite will get the keys to a Lexus LS 600h L during their stay. It's an interesting partnership that could benefit both companies. Fairmont Washington, D.C., GM George Terpilowski definitely sees the deal's upside.

Q. Where did this Lexus Hybrid Suite idea come from?
A. Lexus approached Fairmont because both companies have a proven track record of leadership in terms of environmental stewardship. We share a commitment to a sustainable lifestyle and responsible operations but also to providing luxury experiences for our guests and customers. For both companies, this partnership allows us to offer new, stylish experiences that are unique tour our brands.

Q. Have you had a partnership like this before?
A.We have not had such a comprehensive partnership that reaches so many guest touch points - from in-room and in-hotel guest stays, to direct marketing vehicles as well as events where attendees experience the brands, the partnership yields rich opportunities to showcase the brands to a wide audience.

Q. How exactly is the deal with Lexus set up?
A. The partnership evolved quite naturally. We both saw an opportunity to leverage programs that we were working on independently that were an excellent fit.

Lexus' Hybrid Living initiative, a series of events and a web portal that showcases luxury products made with sustainability top-of-mind, is helping to define and inspire a new eco-luxury lifestyle by featuring furniture, fashion, art, food, architectural structures and other products that are kinder to the environment. The Lexus Hybrid Living program brings together like-minded individuals and companies, such as Fairmont.

Also, we were working on our own "signature suites," a collection of themed suites that provide a guest experience that goes beyond the room. These specialty suites are designed to reflect the destination through their décor, amenities and often activities in conjunction with local partners.

Fairmont was interested in partnering with a US luxury automotive partner. Fairmont has had a lot of success increasing brand awareness and loyalty by offering its guests access to exclusive offers and enhanced service offerings through its partnerships such as Saks Fifth Avenue and EMI Music. Lexus undoubtedly had a lot to offer Fairmont guests - who also share its commitment to living well with a conscience.

Q. Are there any rules for guests that drive the car? What are they?
A. Yes, they are clearly stated in the waiver forms provided to each guest.

Q. How is the insurance handled?
A. Fairmont and Lexus have worked this out as part of the overall corporate partnership, which also involves 16 Transportation cars.

Q. Does it cost you extra, is it something the driver signs off on, is it something Lexus deals with?
A. No. This is part of the Lexus/Fairmont corporate partnership agreement.

Q. Was there any concern about these safety issues before implementing this amenity?
A. Yes. However, Lexus has had years of experience with these programs and has provided an important safety and liability framework for Fairmont.

Q. Why is this something guests will want?
A. The typical guest who would be interested in the Lexus Hybrid Living Suite at The Fairmont Washington, D.C., is one who knows that you do not have to forgo style and comfort while making eco-friendly choices. They would also share a commitment to environmental stewardship.

The well-educated consumer is very savvy about what companies are doing. In turn, I think businesses are certainly consciously marketing their "green" attributes. The reality is it's a hot topic right now, but from our perspective…it's been something we've been committed to for over 17 years. Regardless of trends, commitment to the environment is really part of our company DNA

Q. What is the gas situation? If the guests drive it a lot, are they to inform you that they need to fill up, or is it up to the guest?
A. This is our responsibility. We check the car daily, and make sure it has gas.

Q. When does this service end?
A. The Lexus Hybrid Living Suite will be part of The Fairmont Washington, D.C. indefinitely. All packages are good through the end of the year, and then they are reviewed for revisions and updates for the following year.

Down but not out

Lodging Econometrics today released its anticipated Q3 2008 report on the U.S. hotel industry. The picture isn't pretty. It basically confirms what most of us have expected: hotel construction projects are down and scheduled starts are taking a nosedive. The report details the impact the lending crisis and the softening economy is having on developer sentiment, transaction volume and selling prices.

Among the report's highlights:

• The total construction pipeline for the U.S. stood at 5,652 projects/740,272 guestrooms as of the end of Q3. Pipeline counts are down, quarter-over-quarter, 4 percent and 6 percent, respectively.
• Declines were modest in the "under construction" and "early planning" stages. Declines were significant in the "scheduled starts in the next 12 months". A number of projects actually migrated backwards into "early planning".
• Construction starts in Q3 were down for the second quarter in a row, while cancellations and postponements of projects already in the pipeline increased for the third consecutive quarter.

However, all isn't doom and gloom. The report finds that leading hotel companies and brands in the U.S. have strong development pipelines. Including both new construction and conversions, Marriott, Hilton and InterContinental each have pipelines in excess of 100,000 rooms. Keep your fingers crossed they remain committed to these projects.

Russia shows promise amongst the financial angst

The Russian hotel market will not escape the current global economic crisis unharmed, but panelists here at the Russia & CIS Hotel Investment Conference felt that is was better positioned than other areas of the world.

Dr. Daniel Thorniley, SVP, The Economist Group, right, warned attendees about 2009.

“It unfortunately, is going to be the worst business and economic year globally in the last 10 years, and perhaps the last 25, and perhaps the last 50. That very much depends on inter-bank lending. … I think the best case [gross domestic product] for Russia in 2009 will be about 5.5 percent [growth], the mid-case might be about 5 percent, and the worst case—depending on the world—might be just over 4 percent.”

Thorniley said that a 4 percent GDP growth would be painful for Russia, but hoteliers needed to realize that China’s growth will plummet from 10 percent to perhaps 7.5 percent, and even those numbers will be 5 to 10 times what Western Europe and the U.S. will see. He said that the U.S.’s mid-case is zero growth, its worst case is -1 or -2 percent growth and the U.K. is looking at a very tough next 12-18 months.

Arthur de Haast, global CEO, Jones Lang LaSalle Hotels, noted that hotel transactions through September 2008 are down 70 percent from 2007, and what had been a slow and moribund market has died. But he said that 2008 will still be better than in the wake of 9/11 and the 1997 Asian economic crisis.

“We have experienced periods like this before, and we will see improvement going forth,” said de Haast.

Thorniley feels that the next 18 months in Russia will be tough, but there is a silver lining of schadenfreude.

“However tough business will be in Russia and Central Europe over the next 18 months, you can always be happier that somebody doing business in Germany or France or Spain or Japan or America or Latin America will be doing much worse,” said Thorniley.

Best Western gets aloha spirit

Even with the global economy facing historic challenges and consumer confidence taking a wipeout, “Best Western will continue to grow and prosper,” Dave Francis, chairman of the board for Best Western International, assured the 2,500 attendees at the 2008 convention at the Hawaii Convention Center in Honolulu. “Why? Because we are the owners of this company.”

With that comes responsibility for the guest impressions of over 400,000 guests every night, Francis said. He encouraged members to participate in the company’s direction by voting and attending regional meetings.

The soothing Hawaiian trade winds helped take some of the edge off, but talk during breaks kept returning to holding rates steady, especially with neighboring hotels higher on the chain scale dropping theirs.

“Learn from the past,” said David Kong, president and CEO (pictured with convention attendees during a break). “The worst thing to do is panic and cut rates.”

In the past 30 years, occupancy declined 16 times, ADR declined twice and RevPAR declined only three times, Kong said, and discounting rates indiscriminately likely will cause a RevPAR drop. “Yield management is more important than ever.”

While many hotel companies are focusing on product, BWI will focus on customer service, Kong said. The national advertising campaign features the members as what makes the hotels special.

Dorothy Dowling, senior VP of marketing and sales, told attendees to not just ride the waves of change but to rock them. She said steps to face the economic headwinds will include new approaches for more leisure and corporate wins, which includes the launch of Best Western Business Plus, and loyalty program improvement, including a new name: Best Western Rewards (formerly Gold Crown Club International). The company also is spending a whopping $43 million on advertising, a move Kong called contrarian.

Ron Pohl, VP of brand quality and member services, talked about short-term initiatives that will move BW to its long-term goal of becoming the preferred brand in its tier. Improving the breakfast presentation, more training for guest satisfaction and green initiatives are on the list.

Congrats on a solid career choice

Lucky for you, you're in the right industry.

According to a featured article on Yahoo! Education, hotel management is one of the six categories of jobs with the best perks, along with marketing managers, network administrators, pharmaceutical sales reps, broadcast or sound technician and aircraft mechanic.

Why?

"If you work for a major hotel chain, expect complimentary or deeply reduced prices for lodging and tourism excursions for you and your family-and not just at the properties you represent. Job prospects are good, too, with business travel and vacationing remaining strong despite rising fuel costs and economic stagnation."

In our upcoming Nov. 3 issue, we offer H&MM's fourth annual general managers' survey, which highlights concerns, benefits and myriad other aspects of being in management. Pick up your copy in a couple of weeks—it's got plenty of interesting information, and it also let's you see how you, your wages and your vacation time stack up.
Anyway, kudos to you all for picking a solid—and perk-full—career. We trade journalists are awaiting our day.

The fine line between the hotel industry and college football

While researching my article for our "An Industry Connected" package about the Internet's role in the hotel industry (coming in the Nov. 3 issue of Hotel & Motel Management), I wanted to learn more about the relationships between hotel companies and third-party booking sites, and from what I gather, it is very similar to college football.

You see, I'm a big Ohio State football fan. I live and die with every Buckeyes game. And everyone knows our biggest rival is the Michigan Wolverines—some would say it's the biggest rivalry in sports. They don't like us; we don't like them. But the business of college football changes the dynamic of the rivalry, at least from my perspective, and draws an interesting parallel to the role online travel agents play in a hotel's online strategy.

College football success lies largely in your team's competition. If the other Big Ten (Ohio State's conference) teams lose constantly and are considered weak by the media and by fans, then Ohio State, regardless of the team's quality, is then considered weak and none of our conference wins are viewed as impressive. In other words, Ohio State needs Michigan, its fiercest and closest competition, to succeed. That's why, other than when the Wolverines play against the Buckeyes, I root for the Wolverines to win. It's in my team's best interests in the long run.

This also seems to be the relationship hotel companies have with sites like Expedia, Orbitz or Priceline.

"Initially we looked at them as competition, especially after 9/11 because rates plummeted, but now it's more of a partnership because guests will book there and we need to be there," said Karmela Gaffney, managing director of advertising and e-commerce at Best Western. "We’d much rather have them book at Best Western than say a competitor. In some respects it’s a partnership. It’s a friendlier rivalry."

"Competition or partners? Yes," said George Corbin, VP of e-commerce at Marriott International. "There's a vital role to be played with [online travel agents] ... we want to be on the shelf wherever our customers shop. They can provide us with need-time business we wouldn't normally get and access to markets [we wouldn't normally have]."

"Initially, they were [competition]. People feared them taking away from their bookings, but they are our partners, and intricate to this whole online booking medium," said Isaac Gerstenzang, director of e-commerce for Destination Hotels. "You need to develop partnerships with them. It's just another extension of your hotel. Expedia has their loyal guests and if someone goes there every time, I want them to still come to my hotel. I would prefer if they came here, but Expedia and Travelocity have created a huge brand awareness for themselves."

Ultimately, a hotel wants guests to book through its site. That's why these hotels are pumping more money and time into their websites and online research. They want guests to think of them when booking a trip. They want guests to trust their site and their brand above all else. But true success comes from working with OTAs. These third-party sites book a ton of trips, and being partners with them, and becoming visible on another channel, furthers a hotel's business.

It's like rooting for Penn State to be undefeated UNTIL this coming Saturday—it's just good business.

(Go Bucks!)

Boost Web presence for free

By now, we are aware that reading online reviews is an important part of booking a hotel stay. Both positive and negative comments can have an impact on a potential guest. One company has taken this concept a step further and provided an opportunity to not only read about the hotel, but to view all it has to offer before even stepping foot in the lobby.
TVtrip allows travelers to watch a video of what a hotel looks like, inside and out, before booking.
"It's certainly a big step in the way that people are shopping for hotels," said Steve Stollerman, VP, North America.
In the same respect that TVtrip can benefit the traveler, it can also help hoteliers boost their online presence for free by allowing a professional photographer to shoot video of the property and post it online.
Founders of TVtrip come from the Internet travel industry, many from Expedia, and they were able to identify a missing niche. While there is an increasing amount of user-generated hotel footage on the Web, Stollerman said TVtrip provides professionally edited, consistent content.
"We shoot the video in a very unbiased and transparent way," he said.
Hoteliers do have veto rights if they don't like the video results. In many cases, TVtrip will return to the property and re-shoot.
TVtrip works with freelance cameramen all over the world. Since leaving their beta site in 2007, they have gathered and uploaded video from nearly 2,000 hotels, mostly in Europe. Now they are actively shooting in Asia and U.S. and will launch a Chinese version of their website soon. Nearly 200 U.S. hotels have been filmed and plans for 1,500 more are in the works.
"There are hotels all over the world that we would love to get to," Stollerman said. "Hoteliers love the fact that we film their site for free, especially in this economy. That's not an offer that's going to last forever."
TVtrip operates on an affiliation business model. This allows them to shoot and produce video at no cost to the hotelier. Instead, they generate revenue by charging commission if a guest books a room through a third-party or brand booking engine after being referred from TVtrip.com. They also host advertising on the site.
If you are interested in partnering with TVtrip to have your hotel filmed and hosted on TVtrip.com, fill out this form or e-mail Steve Stollerman at steve@tvtrip.com.

Soviet splendor

I had the pleasure of touring the newly opened Hilton Moscow Leningradskaya today with the hotel's marketing and public relations manager, Svetlana Kislova. This incredible renovation project has been open less than two months.

Originally built as one of the Stalinist "Seven Sisters" skyscrapers, the former Leningradskaya Hotel opened in 1954, and was a three-star property with Soviet-style furnishings and rooms until it closed for a complete renovation in 2006. Now, the 273-room property combines the best of historical and modern, with a luxurious feel. Interesting details abound, from the German lion statues in the lobby to the world's longest chandelier to the lovely gym/spa/pool area that was constructed out of the building's former bomb shelter. Photos follow.

HICAP update

The Hotel Investment Conference Asia Pacific (HICAP) has just wrapped at the InterContinental Hotel in Hong Kong. Following are some photos courtesy of our Hong Kong office, showing activity at the event.

When business goes social

When we started putting together a package for our upcoming Nov. 3 issue on the effects of the Internet on the hotel industry, I immediately knew what section I wanted to tackle: social networking. I have been known to master my way through Facebook with unsurpassed skill—if anyone has a question about someone's interests, activities or work information, I can find it. It actually became a game between my friends in college—"OK, her favorite movies are 'Clueless,' 'Waiting for Guffman' and 'Harry Potter and the Goblet of Fire.' Name that girl." Not kidding, we did that (that girl would have been me).

Obviously, the site has expanded well past its original intent of connecting college students around the country. The site has gone global and now links people of all ages, races and backgrounds with each other. I'm a firm believer in Facebook as a social network, not a business network. But nowadays, I feel we just-past-college-aged kids are having to succumb our fun, revealing profiles for boring, professional pages. It's a sad state for those of us who knew Facebook way back when, but the times, they are a-changin'.

I learned of these changing times when I started researching for our An Industry Connected series (check out the magazine and www.hotelmotel.com on Nov. 3 for the print features as well as online exclusives). In fact, as an experiment, Hotel & Motel Management and Hotel Design launched their own Facebook pages (join us!). As I started to delve into hotel-related groups and fan pages, I realized people are using these to share anything and everything—they're posting job listings, sharing guest horror stories and giving and receiving advice on issues facing the hotel industry. Here are some of the astonishing numbers (as of Oct. 16):

Hoteliers on Facebook—20,215 members, and growing by the minute
Sheraton Hotels & Resorts—14,034 fans
Leading Hotels of the World—3,912 members
Hilton Hotels—2,877 fans
Starwood Hotels & Resorts Worldwide—2,231 fans
Riviera Hotel & Resort—2,121 members
Four Seasons Riyadh—2,000 members

So while I may long for the good ole days of the untainted Facebook, I do see the benefit and the sweeping effect it's having on the industry. People are connecting more than ever and faster than ever, and they're not looking back to their pre-Facebook days.

Hopefully this will result in hotels (and many other businesses—including magazines) improving by gaining advice from different properties around the world. If not, I might have a chip on my shoulder for all you business people who ruined my social network.

Russian Investment Conference coming up fast

It's hard to believe that the Russia & CIS Hotel Investment Conference is less than a week away; I'm looking forward to learning a lot more about this fast-growing part of the world. Keep an eye on HotelTalk for updates from the conference, as we keep you apprised of what panelists and attendees have to say.

Russia seems to be hurting right now, a marked difference from even a couple of months back. As of last week, the Russian stock market had lost some 60 percent, a much deeper fall than in the U.S. and in Western Europe. What's more, the Moscow Times reported today that investors there have missed out on the global gains made elsewhere in world markets over the past day or two.

This hurt seems to be a result of three factors: the global economic woes that have been affecting everyone, the falling prices of oil, and the skirmish with Georgia. Russia is one of the world's largest exporters of petroleum, and it was riding high earlier this year when prices topped $140/barrel. Now with oil down to levels around $80/barrel, Moscow seems to be feeling the pinch. And some investors may be more cautious in funneling cash into Russian development projects after the country's aggressive military actions in August. Long-term real estate deals happen more easily in politically stable regions, and some investors may be looking for a reason to pull out of deals.

This uncertainty will certainly make for some interesting conversations in Moscow next week. Please watch this space for updates.

The value of video

We had a conversation here in our editorial office last week about the value of video as a news source. Personally, I'm on the fence about it. I admit that sometimes when I scan my Yahoo! News headlines and see the video camera icon next to a headline, I avoid that story. I want my news quickly; I don't want to wait for a video clip to load, run through the commercials, then get to what I want to hear about.

On the other hand, video news that covers stories as they happen (TV news-style) holds so much more value for me as a news consumer. Also, informational video clips that supplement the headlines I'm reading can do wonders to make me feel a more personal link to the story. If they're short. And dynamic.

Last week, at the same time RockBridge Capital announced the promotion of Jim Merkel to president (read the announcement here), the company showcased its new corporate video. Take a look: The company focuses its message on its link to the community in this piece, and that's not lost on me. It goes back to that idea that the video works for me personally if it can make me feel more connected to the subject or company I'm reading about.

I'd like to know what your thoughts are on the video-as-news debate. Do you watch? Do you skip over?

Where is the money?

Attendees at the HHOA’s Hotel Investment, Development & Management Conference, which ends today in Miami, don’t seem to be in the mood to buy or sell hotels anytime soon. Yesterday, when asked for a show of hands of who was planning a deal within the next six months, only four or five hands went up from the more than 200 attendees.

Panelists this morning were asked, “Where is the money?” and the answers were an illuminating insight into where our industry is headed for the coming months, and certainly into 2009.

Patrick J. Feltes, senior VP of GE Capital Solutions, said, “Money is very expensive today, and it’s going to stay expensive.”

Mark Naddler, FVP and senior Commercial Real Estate Relationship Manager, HSBC Bank USA, said that there is plenty of liquidity, but he emphasized that relationships were critical.

“The smart developers usually try to develop relationships with lenders. Unfortunately, they may have relationships with some lenders that aren’t around anymore,” said Naddler.

Naddler told audience members that if they didn’t have relationships with a major, very strong bank, they needed to start working on building some.

“Funds are out there, but for the right developer and the right project,” he said.

Jose Alvarez, managing director with Molinero Kroger, said that the bankruptcy of Lehman Brothers was especially bad news for the lodging industry. Alvarez commented that the firm was one of the most prolific capital providers in the real-estate sector not only for debt, but also for equity. He also pointed out that lodging industry stocks have been taking a beating.
“Some of them are at a 75 percent discount from what they were a few months ago … what’s really happening is a huge re-pricing of our assets. … The fact is cap rates are way up, transaction volume is way down,” said Alvarez.

HHOA Conference

Attendance is great at the first national conference for HHOA, the Hispanic Hotel Owners Association—it was well above 200 as of this morning. Called the "Hotel Investment, Development & Management Conference," it is being held through tomorrow. The Doral Resort here in Miami is a perfect location.

Today's lunch included a fun idea: Four chefs cooked complete meals for a panel of judges while the attendees ate their own lunch.

Chefs were Aaron Chavarria, executive chef at the Hyatt Sarasota; Yeni Chacon, professional chef at the Sofitel Victoria Regia; Paula DaSilva, sous chef at the Marriott Harbor Beach Resort & Spa (pictured, explaining her creations); and Mauricio Lopez, executive chef at the Hilton Los Cabos. Winner of this "Culinary Masters" competition will be announced at this evening's Estrella Awards.

New look for the Pere Marquette

I've been in New Orleans this week, and I decided to stop by the Renaissance Pere Marquette hotel, located just a couple of blocks from the city's renowned French Quarter. We're currently working on a feature story on this property for Hotel Design magazine, so I thought it would be interesting to see it in person.

This hotel, which has been open less than a decade, was hit hard by Hurricane Katrina in 2005, with the basement flooding and the lobby level seeing several feet of water, as well, according to current general manager Frank Zumbo.

"This hotel sustained some pretty substantial flood damage … we’re talking about two or three feet of standing water in the lobby for three or four weeks, so the entire first floor was completely gutted. All the laundry downstairs, the engineering, the electrical had to be rebuilt.”

The first-floor restaurant was also completely destroyed. As a result, they stayed closed until December 2005, when they reopened with a temporary front desk upstairs. The current bar area served as a temporary restaurant location. About a year after reopening, the process for the redesign started.

The redesigned first floor has three zones: the social business zone, the individual zone, and the delighted-to-serve zone, which includes the front desk and the concierge.

“Lobby space in hotels, we’re seeing it start to change in the industry. It’s more than a lobby, it’s potentially a revenue center. It’s important to design the space for how customers use it,” said Zumbo.

And the feedback from the new design, which debuted this past New Year's Eve?

“Feedback from guests on the design has been fantastic. They believe it is very imaginative, very cutting-edge. There’s probably not a day that goes by that people don’t stop and take a picture of this focal point [the red bubbles suspended above the bar]. … They really like the space because it’s so unique.”

According to Zumbo, that's something unique to Renaissance.

"Our customers, while they’re seasoned travelers, they’re traveling for business, but they might as well have fun … they want to discover things in the cities that they’re in and even the hotels that they’re in," he said.

From a revenue standpoint, the redesign is a clear winner, he says.

“It’s actually given us more capacity to hire people. … We’re generating revenue in a space where we didn’t generate revenue before, whether it’s food sales, coffee sales, beverage sales,” Zumbo said.

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