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FALL 2016

THE ALBERTA HOTEL & LODGING ASSOCIATION

Inspiring Service - Growing Value

BRIGHT IDEAS

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How to manage a
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Contents
FALL

2016

12

Columns
7 Letters
9

The Lobby

Top 5 recycling tips, managing finances


in tough times, navigating a
no-tipping policy

20
26

CAF

HOTEL

DRAYTON VALLEY

Features
14

At Your Service

A new AGLC program rolls out


across the province

16

16

Managers Corner

General manager Bruce Primeau


talks about the challenges facing
hotels today

24

12

Notes from Home


and Abroad

18

AHLA and You

19

HR Files

Back of House
26

Eat, Drink, Sleep

Drayton Valley

28

Speaking Personally

David Keam, General Manager of


the Edmonton Renaissance Airport Hotel

30

Parting Shot

20 Welcome?
With Airbnb on the rise across the
country, its time to strategize

24

Featured Employee:
The Right Ingredients
Alexander Herbert combines his
culinary skills with strong
leadership at the Pomeroy Hotel

Inspiring Service - Growing Value

www.ahla.ca

28
Fall 2016

Mainstay

Over 30 Years of Excellence and Dependability


FALL 2016

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Edmonton, AB T6X 0P7
Toll-Free: 1-888-436-6112
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Chair of the Board:

Perry Batke

First Vice Chair:

Leanne Shaw

Past Chair:

Steven Watters

President & CEO:

Dave Kaiser

Vice Chairs:

Chris Barr
Tina Tobin

Directors North:


Amr Awad
Shazma Charania
Robin Cumine
Ken Mealey

Directors Central:

Karen Naylor
George Marine
Mark Perry

Directors South:

Heather Hamilton
Sandra Kanegawa

Published by:

Victoria . Vancouver . Whistler . Edmonton . Calgary . Toronto . Montreal . Quebec City

10259 105 Street


Edmonton, AB T5J 1E3
Toll-Free 1-866-227-4276
Phone (780) 990-0839
Fax (780) 425-4921
www.venturepublishing.ca

Publisher and
Editor-in-Chief:

Ruth Kelly

Managing Editor:

Kim Tannas

Art Director:

Charles Burke

Graphic Designer:

Andrew Wedman

Production Manager:

Betty Feniak

Production Technicians:

Brent Felzien,
Brandon Hoover

Vice-President, Sales:

Anita McGillis

Contributing Writers:

Robin Brunet, Julie-Anne Cleyn,


Chelsea Grainger

Contributing
Photographers and
Illustrators:

Cooper & OHara,


Courtney MacLellan,
Darryl Propp, Eugene Uhuad


PM #40020055

Mainstay is printed on

Forest Stewardship
Council certified paper
Mainstay is published four times a year for Alberta Hotel &
Lodging Association. Content copyright 2016 is held by AHLA.
Content may not be reprinted or reproduced on websites without
the express permission of AHLA.
Undeliverable mail should be returned to Venture Publishing at
10259 105 Street, Edmonton, AB T5J 1E3

The Alberta Hotel & Lodging Association

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Presidents MESSAGE

Taxing Times
BY DAVE KAISER, AHLA PRESIDENT & CEO

S PART OF ITS CLIMATE LEADERSHIP PLAN,

Albertas NDP government will introduce a new carbon


levy in January 2017. The levy will be included in the
price of all fuels that emit greenhouse gas (GHG) emissions
when combusted. What will the cost of this new tax be for
Albertas hotel and lodging sector, and how can operators mitigate this tax?
The carbon levy will be applied to fuels at a rate of $20 per
tonne in 2017 and will increase to $30 per tonne in 2018.
Based on consumption data collected through our electrical
energy and natural gas programs, the AHLA estimates the
carbon levy will increase the annual cost of these utilities by
approximately $200 per room.
For a typical 100-room property, this means additional
overhead of $20,000 per year in 2017 rising even further in
2018. The cost for full-service properties with extensive food
and beverage outlets will likely be higher. In addition, the carbon levy of $.0535 on diesel fuel and $.0449 on gasoline will
raise costs for suppliers to our industry costs that will likely
be passed on to operators.
Given Albertas current economic climate and the hotel
room supply/demand imbalance that exists in markets outside of the resort areas, it will be challenging for hotels to pass
on these costs to consumers by increasing room rates. However, the governments commitment to reinvest revenue generated by the carbon levy back in the economy may create
opportunities for hotels to reduce their costs. A total of $645
million has been earmarked for Energy Efficiency Alberta, a
new provincial agency that will support energy efficiency programs and services for homes and businesses.
The AHLA has submitted a proposal to Albertas Climate
Change Advisory Panel for an industry specific energy efficiency program that would help hotels mitigate the cost of the
carbon levy while lowering our industrys GHG emissions. Our
goal is to help our members access funds made available

Inspiring Service - Growing Value

The governments
commitment to
reinvest revenue
generated by the
carbon levy back
into the economy
may create
opportunities for
hotels to reduce
their costs.

through Energy Efficiency Alberta to support capital upgrades


and retrofits that will reduce energy consumption.
The AHLA has a number of existing assets, including our
natural gas, electrical energy, and carbon offset programs, a
legacy energy efficiency fund, and communications infrastructure that can be leveraged to support this initiative. Early discussions with our energy consultant and partners have been
very positive, and we believe an energy efficiency program led
by the AHLA would be successful. Lets hope the NDP government believes this too.
We look forward to serving you!

www.ahla.ca

Fall 2016

Mainstay

Chairmans REPORT

Stronger Together
BY PERRY BATKE, CHAIR OF THE BOARD

O
Even in the most
difficult of times, the
true spirit and
resilience of our
industry shines
through.

Mainstay

NE OF THE THINGS I ENJOY MOST ABOUT BEING

part of our industry is getting to know some tremendous


hospitality people and entrepreneurs. These individuals
have shown the courage, compassion, and resilience to build
outstanding and enduring hospitality enterprises. They have
made major investments in financial and sweat equity into their
properties, and in many cases put their life savings into these
businesses. They employ and support many individuals and
families. Their hotels are the hubs of their communities, forming an important part of Albertas connective tissue.
Right now our industry is hurting as we move through the
worst recession in a generation. While tourism booms in the
mountain parks, many of our members in other areas of the
province are struggling, and their businesses are in real
jeopardy. This is not just a downturn; it is a crisis. Individuals,
families, and businesses are in turmoil as we deal with the collapse of Albertas resource sector. Add to this the number of
hotels recently opened or in the pipeline, minimum wage
increases, and the impending carbon tax, and its not hard to
see that our industry is facing unprecedented headwinds.
The AHLA and your Board of Directors understand the pain
our members are feeling. As hoteliers, many directors are
experiencing the same struggles. We are committed to serving
and supporting you during these difficult times. The AHLA
must help our members navigate the current environment and
work to strengthen Albertas tourism and hospitality industry.
Times like these prove the importance of association. We are
always stronger together.
Even in the most difficult of times, the true spirit and
resilience of our industry shines through. There is no better
example of the spirit of hospitality than the response of Alberta
hoteliers to the Fort McMurray wildfire earlier this year. The
concern for the tens of thousands of evacuees was overwhelming, and we were moved to hear of the acts of kindness and
care shown by our members and their staff. Despite our current economy, over 500 AHLA members came together to
raise more than $110,000 for a legal fund that successfully

Fall 2016

www.ahla.ca

opposed the Town of Fox Creeks four per cent business


licence fee on hotels. Unopposed, this bylaw not only threatened the financial sustainability of our Fox Creek members,
but also the viability of hotels across the province.
While no one knows what will happen on the road ahead, I
remain confident in the spirit and resilience of our members.
We greatly appreciate your trust and support and will remain
keenly focused on our mission.

The Alberta Hotel & Lodging Association

The

LOBBY
INDUSTRY TIPS & TRENDS

TIPPING POINT

BY Julie-Anne Cleyn

Should you introduce a no-tipping policy?


WITH RECENT MINIMUM WAGE INCREASES IN ALBERTA, SOME
restaurants and hotels are responding by introducing no-tipping
policies at their establishments. We asked Perry Batke, General
Manager of the Best Western Plus Denham Inn and Suites and
the Days Inn Edmonton Airport, both in Leduc, a few questions
on the subject.
WHY WOULD A HOTEL CONSIDER A NO-TIPPING POLICY?
I think its a reflection of where the industry is going. Im not
saying that everybody is going to adopt this, but with a lot of
the changes that are happening, its forcing the industry to
challenge long-standing paradigms. A lot of this conversation
is being driven by the implementation of new minimum wage
legislation with the provincial government. With the higher
minimum wages for the front-end service staff that are getting
tips, it really creates an equity issue with the back of the house
people, so its a way to bring equity to both.
Some people see it as an opportunity to provide more stable
and steadier pay for all of the employees. Theres a stream of
thinking as well that customers will know what theyre paying
upfront.
HOW WOULD A HOTEL COVER THE COST OF SERVICE?
Menu prices would go up, but that new menu price might be
equal to what the original menu price plus the tip would be.
HOW DO YOU THINK A NO-TIPPING POLICY WOULD AFFECT
BUSINESS?
There are some compelling reasons for no tipping that I mentioned, but it could be difficult for customers and staff to get
comfortable with, definitely the front-end staff. They wouldnt be
walking away with as much money.
Some guests may feel awkward about not leaving a tip.
Tipping has become such a custom that some customers may
feel that it takes away any incentive for good service.
However, were moving to more of a cashless society. From
that perspective, customers may appreciate an all-in price.

Inspiring Service - Growing Value

HOW CAN YOU APPROACH SOME OF THE CHALLENGES THAT


YOU MENTIONED?
Change is always tough, especially with something as
ingrained as tipping. For the staff, it starts with creating a
vision for the operation. Its a way to support and create
equity for the back-of-house people, which will attract great
culinary professionals to the business, which will enhance
the overall guest experience and help draw more business.
WOULD THERE BE AN IDEAL TIME TO IMPLEMENT SUCH A
CHANGE?
Thats really an individual decision for each business based
on their own situation and circumstances. However, maybe
where a lot of people started asking themselves these questions
was on October 1 of this year when the minimum wage went
up, and then in subsequent years when it goes up again. The
minimum wage increase at our one hotel represented around
$30,000 right off the bottom line.
HOW WOULD YOU COMMUNICATE A NO-TIPPING POLICY TO
CUSTOMERS?
I think its part of telling a story, and you can start communicating directly with your customers, explaining the rationale behind
it. I think that direct interaction with the customers is going to be
crucial, as well as ensuring guests continue to experience great
service and food quality.

www.ahla.ca

Fall 2016

Some guests may


feel awkward about
not leaving a tip.
Tipping has become
such a custom that
some customers may
feel that it takes
away any incentive
for good service.

Mainstay

PHOTO: DALE MACMILLAN

The LOBBY

GREAT SHOT

The Tour of Alberta is a road cycling race with an international audience, with 2016 marking its fourth year in the province.
This years race made stops in Lethbridge, Kananaskis, Olds, Rocky Mountain House, Drayton Valley and Edmonton.

socialmedia@ahla.ca
@ABHotelAssoc

Your Say...

Three things I dont care about in


hotels? Land line phones. On-demand
movies. Wake-up calls. (Things I do care
about? More power outlets!)
- Todd Hirsch, @ABeconomist

10 Mainstay

Fall 2016

Happy International Housekeeping Week.


Thank you to all #AB hospitality workers for creating welcoming spaces for our visitors #ableg
- Ricardo Miranda, @RicardoYYC

www.ahla.ca

On September 11, AHLA Member JeanMarc Guillamot spoke to Global News


about the re-opening of hotels and businesses in Fort McMurray.

The Alberta Hotel & Lodging Association

Top Five Recycling Tips

BY Julie-Anne Cleyn

Environmentally friendly
ideas for your hotel

DID YOU KNOW THAT IN 1997, WHEN THERE WERE NO RECYCLING


programs in certain Canadian cities and provinces, it
was a lodging industry group that developed them? That
group is Green Key Global, an environmental certification
body for the industry. Below, Linda Hartwell, Director
Marketing Communications and Program Management
at Green Key Global, gives us her Top 5 recycling tips for
hotels. An increasing number of travellers value hotels
that work to reduce their environmental impact, so guests
will appreciate your efforts.

1. Talk to your waste management company about what


kind of recycling programs you can expand on.

2. Only accept recyclable or reused packaging from your


suppliers, and return any excess.

3. When your housekeepers find bottles that can be

4. If toilet paper rolls in guest rooms are not used to the end,
reuse them in public washrooms or donate them.

5. Recycle your discarded soap and plastic bottles and donate


them to Clean the World, a not-for-profit corporation that
distributes them to impoverished people.
For more information, visit cleantheworld.org.

returned for value, allocate the proceeds towards a


staff event like a holiday party.

FIXING THE FINANCES


How to manage costs in tough times
BY Julie-Anne Cleyn

DONT PANIC. THATS THE FIRST PIECE OF ADVICE ON HOW TO MANAGE YOUR
finances in tough times from Mark Moerkerk, who works in Direct Commercial
Services at Servus Credit Union. Our economy is designed to have periods of
both growth and adjustment, he says.
But what can you do to maximize your revenues and reduce your costs
during these difficult times? Moerkerk suggests you build a strong business
plan. Its the foundation for long-term business success. It helps you manage
growth at a comfortable pace, minimize exposure in tough times, and identify
options for both up and down economies.
Keep your bank or credit union updated on your performance too. If you
need to rearrange payments, tell your advisor youd like an appointment to
discuss your business plan for improving performance in the current economy. Be prepared to answer the tough questions, with data to support your
answers, says Moerkerk.
Its also essential to track your performance. If you dont forecast, your costs
can spin out of control quickly. Prepare month-to-month cash flow projections
and use them to understand your credit requirements, determine the
Inspiring Service - Growing Value

adjustments you need to make, and where to allocate excess funds.


Lastly, review your partner programs. For example, the AHLAs electrical
energy and natural gas programs can help you secure a competitive rate,
lowering operating costs and improving your propertys profitability.

www.ahla.ca

Fall 2016

Mainstay 11

The LOBBY

Notes from Home and Abroad


Ship Shape
Accommodations
Sometimes in the hotel business, you have to think
inside the box. Such is the case for a Studio 6 Extended Stay hotel recently opened in Bruderheim,
a town 50 kilometres northeast of Edmonton. This
would be the first hotel in North America thats
built entirely out of shipping containers, says Boris
Javorski, co-owner of the four-storey, 63-room hotel.
Most of the shipping containers that come to
Canada (largely from China) stay here because the
products we export grain and crude oil dont
leave in shipping containers, explains
Javorski. So we put those to use, which
is really awesome.
The hotel was constructed in Calgary
by Ladacor, a manufacturer of advanced
modular units. Eighty steel containers
were cut apart and reshaped into 40
modular units 10 for each floor and

then transported to Bruderheim, where they were interconnected and clad in a stucco finish. Looking at
it, you cant distinguish it from a regular hotel, says
Javorski. Plus, steel construction comes with added
benefits such as a longer lifespan and better protection against fire.
The hotel will provide much-needed accommodations for oil and gas workers in the Industrial Heartland region and an economic boost to Bruderheim.

BANFF PROPERTY
PURCHASE
Canalta Hotels recently completed the purchase of two
properties, adding the Banff Spruce Grove Inn and Banff
Voyager Inn to the 43 properties the company now owns
across Alberta, Saskatchewan, and Manitoba.
It will expand our footprint into a more tourist-based
market, allowing us to grow our brand and our operations
into a market that weve wanted to be in for a long time,
says Blair Christianson, who is one of the company owners
along with his dad and brother. It will also help diversify our
hotels as were predominantly in secondary resource-based
markets.
Both properties will be undergoing major renovations over
the next 12 to 18 months, he adds.
In addition to operating hotels under the Canalta hotel
brand, the Drumheller-based company also operates
Hampton Inn & Suites by Hilton in Medicine Hat and owns
the development rights for Ramada across Canada.

12 Mainstay

Fall 2016

www.ahla.ca

The Alberta Hotel & Lodging Association

BRIGHT IDEAS
Lighting tips to make your property sparkle
Property owners often put a lot of effort into the design of their spaces,
choosing quality materials and paying attention to layout and flow. But
without the correct lighting, guests wont be able to appreciate those
details, says Latif Jamani, President of Calgary Lighting Products.
Lighting is what allows people to properly see and experience that, he
says. Jamani offers some tips on how to make the most of the lighting
at your property.

PERIMETER LIGHTING: The lighting on the exterior of the building and


around the property provides a first impression to guests. Were
showcasing the image and providing a warm welcome to guests. We want
to create the right ambience and a good sense of safety and security,
especially at nighttime, says Jamani. You want it to be lit enough so that
when someone arrives, theres a sense of Im home or Im safe.
Exterior lighting can make your hotel more visible to passersby, he
explains, citing the example of a lighting project he recently completed
with the Wingate Hotel in Calgary. The hotel was set back from Macleod
Trail so people driving by couldnt really see the hotel at nighttime, so
weve put these LED floodlights that highlight the hotel and make it stand
out, says Jamani.

LOBBY AND HALLWAY: In the lobby area, you want to achieve what
Jamani calls the sparkle effect. That would be an area where we would
recommend looking at 4100K bulbs. Itll amplify the reflection around the
space to make it feel open and appear brighter. With 4100K bulbs, the
colour is more of a cool white versus a 2700K bulb, which gives off a
warm light. He also recommends lighting architectural features (such as
vaulted ceilings or special materials) or artwork on the walls to emphasize
those details.

The lobby and hallway area is a prime candidate for LED lighting, he
adds. Because its on 24 hours a day, we want to make sure that the
light being used is long-lasting and energy efficient, he says, noting
that by using LED bulbs, you can reduce your energy consumption by
over 50 per cent and make progress on your hotels sustainability
mandate.

GUEST ROOMS: Providing a sufficient quantity of light makes guests


feel comfortable and opens up the space. Typically, we recommend a
warm tone (2700K) in hotel rooms, Jamani says, which can achieve a
homey, welcoming ambience. But there are exceptions. In an older
hotel that doesnt have the infrastructure to provide adequate lighting
(table lamps with no ceiling fixtures, for example), 4100K light bulbs
can make the room feel brighter without incurring extra costs. In the
end, good lighting at your property feeds back into a positive experience
that will encourage guests to return again and again.

Get Global Ready


Travel Alberta is offering free online training to help tourism
businesses in the province take advantage of the growth in
visitors from China. According to Travel Alberta, Chinese visitation to Alberta is growing fast and will continue to expand in
the years ahead. China is now the worlds second-largest economy and also one of the fastest growing outbound markets.
A new Hainan Airlines non-stop flight between Beijing and
Calgary, launched in June, is expected to bring more Chinese
tourists to the province, increasing hotel room nights and
growing Albertas visitor economy.
Working with BRIC Marketing Group, Travel Alberta is offering free China-focused training programs to help managers,

Inspiring Service - Growing Value

customer service and frontline staff to prepare for this growth.


Available sessions include:
Cultural Awareness: Information on Chinese travellers,
culture, and more
H
 otel Ready: Information to help hotels anticipate
Chinese travellers hotel needs and wants
R
 estaurant Ready: Information on Chinese food culture,
Chinese dining, and etiquette
For more information on the Global Ready China Sessions,
visit industry.travelalberta.com/resources/industry-
development/global-ready-china

www.ahla.ca

Fall 2016

Mainstay

13

AT YOUR

Service

Smart Drinking Starts With DrinkSense

N ITS CONTINUED EFFORTS TO ENCOURAGE ALBERTANS TO

drink responsibly, the Alberta Gaming and Liquor Commission


(AGLC) recently launched DrinkSense.
A provincial awareness campaign kicked off on September 9
which included a new website (DrinkSenseAB.ca), videos playing at
movie theatres, online advertisements and other promotional materials.
DrinkSense was also promoted to staff at licensed venues in the hospitality industry including 130 Best Bar None venues across Alberta.
The program will tie into ProServe,
an AGLC responsible liquor service
program, which provides mandatory
training for anyone who serves alcohol in the province.
Modelled on the successful
GameSense program which supports
responsible gaming, DrinkSense will
unify all of AGLCs liquor campaigns under a common look and feel.
DrinkSense represents the AGLCs ongoing commitment to social
responsibility and promotion of healthy alcohol consumption, says
Bill Robinson, President and CEO of the AGLC. One of its priorities is to
promote Canadas Low-Risk Drinking Guidelines, which is a resource
for Albertans that provides daily and weekly recommended limits for
alcohol consumption.
If an establishment supports responsible drinking and the patrons
are starting to get the messages, then were moving forward towards a
culture of moderation, and thats really what were trying to do,

explains Eric Baich, Manager, Social Responsibility-Liquor, AGLC.


Baich adds, The reality is its unrealistic to think that one message
might make a difference, but an accumulation of messages might start
planting seeds that lead people to have discussions and changes in attitudes and behaviours where people commit to making safer choices.
Statistics show that more than 85 per cent of Albertans drink responsibly, but for those that dont, there are significant risks that come with
excessive alcohol use. Its awesome when people go out with family
and friends and have a few drinks.
Our message is to help ensure they
know their limits and know that
overconsumption can lead to many
harms, he says.
The DrinkSense launch coincided
with a new DrinkSense-branded
Fetal Alcohol Spectrum Disorder
(FASD) campaign to help create awareness of the risks associated with
drinking during pregnancy. Its estimated that nine out of every 1,000
babies are affected by FASD in the province. As part of the campaign,
a new FASD poster appears in licensed venues across Alberta. Theres
just no safe amount of alcohol to drink during any stage of pregnancy,
says Baich. Its better to be safe than sorry because its a lifetime for
those who suffer from FASD.

DrinkSense represents the AGLCs


ongoing commitment to social
responsibility and promotion of
healthy alcohol consumption.

14 Mainstay

Fall 2016

For more information, visit DrinkSenseAB.ca

www.ahla.ca

The Alberta Hotel & Lodging Association

Managers CORNER

16 Mainstay

Fall 2016

www.ahla.ca

The Alberta Hotel & Lodging Association

Q&A
The industry may have its share of challenges, but good
advice is only a phone call away
BY KIM TANNAS / PHOTOGRAPH BY COOPER + OHARA

RUCE PRIMEAU IS THE MANAGING PARTNER AT THE

WHAT OTHER ISSUES ARE AFFECTING YOU?

Best Western Plus Service Inn and Suites in Lethbridge.


We caught up with him to chat about some of the
challenges properties are facing in the province today
and how hes managing to stay on top of things.

With the new minimum wage standards increasing, thats $34,000


off my bottom line this year and then another next year. Then
youve got the carbon tax coming in January with AHLA saying that
youre looking at $200 a room as the net effect.

CAN YOU TELL US A BIT ABOUT YOURSELF AND YOUR BACKGROUND?

HOW DO YOU STAY POSITIVE AND GET THROUGH THE CHALLENGES?

Im married with three children aged 15, 18, and 20 and I have 15
years of experience in the hospitality industry. I also have property
management experience I opened the Lethbridge soccer centre
and ran that for 10 years.

I am a natural hospitality guy. Its what I do. Every day is


something different is what we say in the hotel industry its
never the same day twice. I have friends all over the world now. I get
calls for advice from different people and Im not afraid to pick up
the phone and call someone.
Do you need to be positive every day? Absolutely. You can drown
quite easily, but theres lots of go-tos within this industry. Ive made
some great friends here people Im proud to call friends, and as I
said, Im not afraid to call somebody and ask questions. I always
love to hear input from others.

HOW WOULD YOU DESCRIBE THE BEST WESTERN PLUS SERVICE INN
AND SUITES IN LETHBRIDGE?
Were a 113-room limited service hotel currently sitting as the
number one hotel on TripAdvisor in Lethbridge and a two-time
AHLA Housekeeping Award-winning property.

HOW IS THE CURRENT ECONOMIC


ENVIRONMENT AFFECTING YOU?
In Lethbridge, we dont see the
same peaks and valleys that
everywhere else in the province
does. And we cant get into
anything specific with our hotel
but, as a whole, PKF says the
province is down. Is every hotel
feeling it? Absolutely.

Every day is something different is what


we say in the hotel industry its never
the same day twice. I have friends all over
the world now. I get calls for advice from
different people and Im not afraid to pick
up the phone and call someone.

WHAT ARE SOME OF THE OTHER CHALLENGES HOTELS ARE FACING TODAY?
One of the major problems that we have in this province is the
influx of the number of hotel rooms. People started building when
times were good. Now times are bad, and youve got 2,000 rooms
opening up. Does it affect me? No, but when hotels across the board
are offering $99 rates, that becomes a major issue for everyone. The
issue is when a full-service hotel or a three-star limited service hotel
is dropping rates to match what a motel would be charging. Things
like that are a major issue when youre trying to maximize or
properly manage your revenues.

Inspiring Service - Growing Value

HOW IS SOCIAL MEDIA AFFECTING


BUSINESS?
Some of our competitors
spend $100 million to $200
million on social media
campaigns. The social media
aspect of running hotels its
massive and its worldwide.
My partner and his ownership
group both started by
advertising on billboards

outside of town.
Nowadays people have already researched you on TripAdvisor;
theyre Google reviewing you, theyre on Yelp. Everything matters.
My iPhone is my best friend because I get up-to-the-minute
instant updates about a review or something that needs attention.
Youve got people checking into your hotel and already posting
on Facebook. In the Best Western world, we have people that
specifically focus on certain social media platforms to make sure
that were up-to-date and on top of things. Staying on top of the
industry is paramount to success nowadays.

www.ahla.ca

Fall 2016

Mainstay

17

AHLA AND

You

Fuelling a Partnership
Gas Alberta offers AHLA members innovative buying
strategies to manage costs in a dynamic market
GAS ALBERTA ENERGY (GAE) WAS ESTABLISHED
in 2003 as an independent advisory service
providing unbiased market representation for
the purchase of natural gas. As an industry
leader in energy procurement and price probability risk managed solutions, GAE assists
customers in maintaining operational efficiency
and budget certainty related to natural gas
supply and consumption.
In 2006 GAE partnered with the AHLA to
develop a Natural Gas Program designed to meet
the unique needs of AHLA members to offer
buying strategies tailored to meet individual risk
tolerance and cost management initiatives. GAE
helps AHLA members navigate the dynamic
market to better manage natural gas costs.
With the implementation of Albertas newly
enacted carbon tax January 1, 2017, the monitoring of energy consumption and subsequent
emissions is vital to managing some of the fiscal
impacts of the tax while remaining committed to
environmental sustainability.

Although the impending tax increase is


inevitable for all Albertans, it has presented
an opportunity for businesses to scrutinize
operational budgets, largely related to energy
procurement. Though there is no way to mitigate
the carbon tax, businesses can effectively reduce
the financial impact by employing natural gas
buying strategies that offer:
Protection from price increases during high
demand periods with an opportunity to participate in the market when prices are low.
Maximum value for energy dollars. Current
market conditions have forced businesses to
reduce operational and capital expenditures by
eliminating intermediaries, instead paying only
for essential services.
GAEs fundamental purchasing philosophy
is to adapt to volatile market conditions through
hedging strategies intended to realize a price as
close to daily index as possible while providing
customers with cost certainty, price transparency, and protection for budget adherence.

Furthermore, GAE has adapted buying strategies


to provide assistance in managing the costs
associated with the new carbon tax, as done previously with the Alberta Rebate Program.
GAE is committed to providing AHLA members with innovative buying strategies and risk
management policies. We offer the expertise,
support, and objective advice that empowers our
partners to make informed decisions. We take
great pride in our heritage and are dedicated
to providing Albertans with competitive market
prices and industry leading customer service.
For more information please contact:
Ashley Hargrave
Manager, Client Services
Gas Alberta Energy
Direct: 403-516-6258
Mobile: -587-223-5227
Fax: 403-509-2611
Email: ahargrave@gasalberta.com

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18 Mainstay

Fall 2016

www.ahla.ca

The Alberta Hotel & Lodging Association

HR

Files

The Whole Package


How to create a compensation package
that will attract and motivate employees
BY ROBIN BRUNET

TOTAL COMPENSATION

package can be one of your most valuable tools in recruiting and retaining
employees. Staff who feel they are well looked
after will not only be less inclined to look for
work elsewhere, but they will also be more productive in their output.
In addition to a fixed wage, a compensation
package includes things such as bonuses, gratuities, benefits and on-site amenities. And
while a fair wage is a primary component, the
other items can be especially attractive to millennials and young employees.
Millennials are changing the way compensation is structured, and first and foremost what they want is fair and competitive
wages because they, more than any other
generation, share lots of information, and as
such they will very quickly identify disparities, says Janet Salopek, president of Salopek &
Associates, a Calgary-based human resources
and strategic planning firm.
After that, employers should get creative.
Millennials seek things other than money,
says Salopek. They want flexibility in work
hours, as well as flexible starting and finishing
times. In other words, if they complete their
daily tasks early, they want to go home early.
Salopek concedes that catering to these
demands within the confines of a rigidly
controlled hotel may be difficult, but any
deviation from the norm will be attractive.
And while it may seem strange to consider
offering people who are just entering the workforce retirement plans, according to Adecco, its
never too early to start putting money aside for
retirement. Many employers recognize the
value in giving their employees the opportunity
to get a head start on retirement savings
through c
ompany-sponsored pension and
Inspiring Service - Growing Value

RRSP plans, notes the company.


Providing a wide variety of smaller perks
demonstrates that the hotelier is taking a
holistic approach to staff care. Less tangible
forms of compensation may include education reimbursement programs, referral
bonuses, gym discounts, daycare, competitive
time-off policies, and flexible work schedules.
Health-care benefits are another important
consideration. Although the Canadian government provides 70 per cent of all healthcare expenses, the remaining gap is still a
major concern for employees. Extended
health-care plan options should be selected
based on a companys overall compensation
objectives and employee needs, but be aware
that vision care could raise a hoteliers costs
by anywhere from 20 to 40 per cent because
the sheer number of Canadians requiring
care is so great.
As for dental care, a good plan is one in
www.ahla.ca

which costs to employees for basic preventive care and repair are minimized, says the
HR Council, an online resource that provides HR management advice.
When it comes to cash compensation, the
salary ranges must be consistent and in line
with the market from an internal equity perspective. Variable pay structures should be
designed so they reward employees based on
the performance expectations of their roles
within the hotel.
Although developing a compensation
package takes time and effort, many tools are
at the hoteliers disposal; for example, salary
surveys can help determine if wages are in
line with the marketplace. A keen awareness
of a hotels financial goals, external and internal equity issues, and the local market in
which the hotel operates will result in a package that is competitive and attractive to a wide
range of people.
Fall 2016

Mainstay 19

Cover STORY

20 Mainstay

Fall 2016

www.ahla.ca

The Alberta Hotel & Lodging Association

Airbnb is on the rise across the country,


and its time for the industry to take notice
BY ROBIN BRUNET

Inspiring Service - Growing Value

www.ahla.ca

Fall 2016

Mainstay 21

Cover STORY

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ghall@sertanational.com
2016, Serta Canada, a division of SSH Bedding Canada Co.

HILE INDUSTRY ISSUES

differ from province to province, one concern unites hoteliers across the country: home
sharing, as personified by Airbnb.
Airbnb is an online marketplace connecting people looking to share space in their
homes with those who are looking for accommodations. For the hotel sector, this translates into travellers going online to secure
lodgings offered by private property owners
rather than a business run by a hotelier.
Valued at $25.5 billion, Airbnb is growing
at an unprecedented rate: the United States
makes up 16 per cent of its total listings. In
Europe, Airbnb hosts made nearly $3 billion
last year, according to Co-founder Nathan
Blecharczyk; and in traditional vacation
rental markets, the company has spent considerable time and effort taking market
share away from
rental sites such
as HomeAway
and VRBO.
Although regulators are
closely monitoring Airbnbs
activities, one of the reasons for the companys unbridled growth is that regulators
never anticipated this type of business.
In Europe, Airbnb collects taxes on
behalf of 30 cities, including Paris and
Amsterdam; the European Commission has
stated that implementing bans on sharing-economy services like Airbnb should
only be a measure of last resort.
Canada is one of Airbnbs largest global
markets: nearly one million Canadians
have used Airbnb, and about 650,000 visitors to Canada took advantage last year.
This will presumably contribute to Airbnbs
stated goal of achieving $10 billion in revenue by 2020, which will likely come from
various categories, including vacation rentals and business travel.
Dave Kaiser, President and CEO of the
Alberta Hotel and Lodging Association
(AHLA), notes somewhat grimly that Airbnbs appeal covers all demographics and
type of travellers. Moreover, its appealing
to homeowners who have either lost their
jobs or are simply trying to make their
mortgage payments.

Kaiser notes a particularly worrisome


trend in development: that of increasing
revenue coming from people renting their
homes year-round, not just on a short-term
basis. Also, multi-unit operators who are
renting their apartments and condos on a
full-time basis put further pressure on the
hotel industry and wreak havoc with affordable housing initiatives.
Kaiser goes on to cite the explosion of
Airbnb accommodations in this country.
There were 30,000 as of a year ago, 9,000 in
Montreal alone.
However, the good news for Alberta hoteliers is that the home-sharing craze has so far
not taken off in provinces where business
travel predominates. Calgary has 306 listings, Edmonton 261, says Kaiser, citing a
recent search on the Airbnb site. Canmore
has 82, Banff 78, and Jasper only 16. This is a
concern, of
course, but I
would characterize it as more of a
looming issue
that must be dealt
with.
But even if we
have some lead time, how can this problem
be combated effectively? Quebec has led
other provinces in making an attempt: a
new law, which came into effect in April,
requires owners who frequently rent out
their properties to obtain the same provincial certification as hotel and bed-andbreakfast operators, and charge travellers
lodging taxes of up to 3.5 per cent; violators
face fines between $500 and $50,000.
The provincial governments tourism
branch, which was responsible for developing and implementing the law, reports that
requests for certification have more than
doubled.
Meanwhile, Kelowna, B.C., is considering
options like enforcement and licensing, as
well as potentially restricting the proximity
of one vacation rental to another (mainly
because the city receives dozens of complaints yearly about noise and parking
issues related to short-term rentals). Many
other municipalities, along with key Canadian cities, are also in the midst of developing strategies to protect their hotel trade.
In Alberta, Kaiser and his colleagues are

Now is the time to educate and


inform and demonstrate the
impact home sharing has had in
other jurisdictions.

www.ahla.ca

The Alberta Hotel & Lodging Association

Hospitality Services
Cleaning for

Guest Retention

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experts today to develop a customized
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Front of house cleaning services
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them a new lease on life.

taking the time to consider a comprehensive


approach. The main trouble with cracking
down on renters is enforcement, he says.
How can any municipality afford the
resources to effectively police the laws that
are put into place? The task is enormous.
Kaiser prefers a two-pronged strategy.
Yes, regulations at a local level are important, perhaps in the form of zoning that is
linked to the Condominium Property Act,
for example. But these regulations have to
be accompanied by levies at a platform level.
Otherwise, were not addressing the problem at the source.
But first, the AHLA must draw attention
to the seriousness of the issue for the benefit of policy-makers in different levels of
government. We have a bit of breathing
room, so now is the time to educate and
inform and demonstrate the impact home
sharing has had in other jurisdictions,
says Kaiser. Were in the early stages of
doing so, and so far the feedback were getting is encouraging.
Concern over home sharing is presumably stoked by reports such as one compiled
by the Ted Rogers School of Management at
Ryerson University, presented at the Canadian Hotel Investment Conference earlier
this year, which reveals that with a 140 per
cent growth in Canada since early 2015,
Inspiring Service - Growing Value

Airbnb has upended the hotel industry.


The report found that Airbnb accounts
for slightly more than five per cent of the
total accommodation demand in Vancouver
and nearly the same amount (4.7 per cent) in
the Toronto market. Ottawa follows with 2.6
per cent and Calgary sits at 1.5 per cent.
Combined, Airbnb represents an average of
4.3 per cent of total accommodations
booked by travellers from July to December
2015 in these four cities.
In addition, three-quarters of Airbnbs
revenue is generated from hosts who rent
their entire home (as opposed to just renting
a room within the home). People who manage two or more listings also represent half
of the online accommodation companys
revenues.
Lyle Hall, Managing Director of HLT
Advisory and co-author of the report,
warned, If Airbnb continues to grow at its
recent pace and becomes more accepted by
business and convention travellers, it will
have a significant impact on the broader
hotel business in Canada.
Hotel owners need to start tracking their
share of market and develop strategies to react
to this disruptive competitor. Municipal and
provincial governments will also have to
carefully consider regulatory and licensing
issues related to Airbnb, said Hall.
www.ahla.ca

403.259.0044

info@janiking.ab.ca

Featured EMPLOYEE

Alexander Herbert combines his culinary skills with strong


leadership as the Executive Chef at the Pomeroy Hotel
BY CHELSEA GRAINGER / PHOTOGRAPH BY COURTNEY MACLELLAN

24 Mainstay

Fall 2016

www.ahla.ca

The Alberta Hotel & Lodging Association

LEXANDER HERBERTS CULINARY CAREER HAS TAKEN

him across the country, from Montreal to Lake Louise to


Cape Breton. Most recently, hes been spending his days
at the helm of two dining outlets as the Executive Chef
at Grande Prairies Pomeroy Hotel and Conference Centre. At The
Office, the hotels casual upscale restaurant, he showcases comfort
foods with a modern flair, while also ensuring everything runs
smoothly at the hotels Skylark Lounge.
His is not a typical 9-to-5 job. He is on hand for at least 10 hours a
day, preparing dishes, encouraging staff, and refining menus. You
want to be there for all three meals, he says, Every day is different.
Herbert is passionate about what he does, adding that the everchanging, fast-paced environment keeps him motivated. I like the
physical and mental challenge; youre always on your feet, and I like
that its not easy.
Being a recognized chef was never Herberts plan. He fell into the
culinary world shortly after graduating from high school when he
took up a dishwashing job in Montreal 24 years ago, putting his
original plan of attending business school in his home province
of Prince Edward Island on hold.

Every day is different. I like the physical


and mental challenge.
He went on to apprentice with a three-star Michelin Chef at Opus
II in Montreal before working his way up the ranks. He served as a
sous chef at the Fairmont Chateau Lake Louise and Executive Chef at
the Keltic Lodge Resort and Spa in Cape Breton, among other positions, before making the move to the Pomeroy Hotel in 2012.
His menus are diverse, ranging from pan-seared pacific halibut
topped with a pesto lemon beurre blanc and smoked tomato pico, to
honey sesame glazed calamari. But he believes simple fare can be just
as top-notch as gourmet eats. If you own it and make it the best food
in the world, it can be just as good as high-end food, he says.
When it comes to food, Herbert cant nail down a favourite.
However, he describes his own cooking style as French-inspired,
noting his flavours are often very rich.
Along with being skilled in the kitchen, Herbert puts on his managers hat to guide a staff of 25 food and beverage associates every day.
He does what he can to help his staff succeed and pass on the culinary lessons hes learned throughout his career.
One of those lessons is the importance of remaining humble.
Get rid of the ego. It serves no purpose, he says, adding that he does
his best to surround himself with positive people who keep him
motivated. Thats the key to longevity in this business.
His care for his staff hasnt gone unnoticed. This year, Herbert
was named the Pomeroys Core Value Leader of the year due to his
tireless efforts in the kitchen and hotel. He was nominated by his
staff for the award. That was a big honour in my opinion, to be
nominated by your peers, he says.

Inspiring Service - Growing Value

GLAMPING?
COMFORT
CAMPING?
STAYCATIONS?
Whatever You Call it,
It Works!

CREEKSIDE CABINS
PLUG & PLAY

READY TO RENT
RICK BELLAMY
(403) 652-0423
rickbellamy@experthome.ca
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Eat, DRINK, SLEEP

CAF

HOTEL

DRAYTON VALLEY

Into the Valley


With its proximity to a provincial parks system,
tourism is ramping up in this oil and gas town
BY KIM TANNAS

HEN THE TOUR OF ALBERTA ROLLED THROUGH


Drayton Valley in early September, millions of viewers
worldwide were treated to stunning aerial views of the
landscape surrounding this small central Alberta town. Located
on the Cowboy Trail (Highway 22), approximately 130 kilometres
southwest of Edmonton, Drayton Valley is set on high land overlooking the picturesque North Saskatchewan River, and recreational opportunities abound.
The town of approximately 7,000 came into being as a
result of the 1953 Pembina oilfield boom and it still relies
heavily on the oil and gas industry today. The forestry and
agriculture industries are not far behind, providing the necessary diversity to maintain the areas economy. The Bio-Mile
industrial cluster and its recently opened Clean Energy &
Technology Centre are advancing sustainability efforts in the
area. Plus, with its close proximity to vast amounts of Crown
land, opportunities in Drayton Valleys tourism industry are
quickly emerging.

26 Mainstay

Fall 2016

www.ahla.ca

FUEL UP
For home-cooked comfort food in a
1950s diner style restaurant, head to the
WHITE BULL CAF in the heart of
downtown Drayton Valley. Boasting the
best burgers in town and a popular allday breakfast, this place fills up quickly
over the weekday lunch hour. Head there on a Friday night for
the $5 cheeseburger and fries or try the Eggs Benny or stuffed
French toast at their Saturday brunch. The caf also offers an
extensive gluten-free menu.
Another popular option is the THREE KNIGHTS STEAK
HOUSE, which is renowned not surprisingly for its steaks.
Theyre cut from high quality AAA Angus beef, fully aged for a
minimum of 21 days. Pizza, burgers, pasta, and seafood options
are also available.
For lighter fare and specialty coffees, head to the COBBLESTONE CAF for breakfast or lunch. Try the soup of the day

The Alberta Hotel & Lodging Association

dill pickle is a favourite or one of their fresh salads. You can also take home one of their bottled vinaigrettes, although itll be hard to decide between maple cider, lemon thyme, and strawberry mint.
GET OUT
Just a short drive from Drayton Valley, the Eagle Point Blue Rapids parks system offers visitors a chance to explore endless trails of lush boreal forest along
the North Saskatchewan River Valley. EAGLE POINT PROVINCIAL PARK
offers more than 19.6 square kilometres of protected lands north of the highway 22 bridge over the North Saskatchewan River while the BLUE RAPIDS
PROVINCIAL RECREATION AREA provides more than 36.4 square kilometres
south of the highway 22 bridge. There are ample opportunities for recreational activities such as
canoeing, fishing, cross-country skiing, hiking, camping, archery, horseback riding, and more.
If golf is more your thing, head to the DRAYTON VALLEY GOLF CLUB, a par 71, 18-hole course
consisting of broad fairways and bentgrass greens. Or if youre feeling extra adventurous, get soaring
with the AIR ADVENTURE FLIGHT SCHOOL: try out a paraglider or an ultralight hang glider trike for
an experience youre unlikely to forget.

REST
After a long day, rest your head at some of
AHLAs member properties in Drayton Valley:
Drayton Valley Hotel
5028 52 Ave
p: 780-542-5351
Lakeview Inns & Suites Drayton Valley
4302 50 St
p: 780-542-3200
Holiday Inn Express & Suites Drayton Valley
5001 Brougham Dr
p: 780-515-9888

Dispensing Systems Inc. understands the importance of lowering costs while ensuring
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DSI helps to improve profitability by delivering steady pour quality from the keg to
the glass. A metering system monitors the numbers of pours per shift. This system
not only reduces spillage, it also encourages accountability in staff for the number
of pours to sales.
When it comes to liquor dispensing, we provide unbeatable accuracy and reliability.

At DSI, we offer both liquor consoles as well as gun systems to deliver simple, fast
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Speaking PERSONALLY

The Power of Potential


David Keam, the General Manager of the Edmonton
Renaissance Airport hotel, believes in a strong company
culture that develops leadership from within
PHOTOGRAPH BY EUGENE UHUAD

28 Mainstay

Fall 2016

www.ahla.ca

The Alberta Hotel & Lodging Association

N 1997, I WAS TAKING COMPUTER

science at the University of Regina and


also working part time at a casino
restaurant. One morning I had to spend
a few hours in the computer lab at the university working on an assignment, and
while I was there I realized I was fantasizing about going to work at the casino later
in the day. It was all I could think about.
At that moment, something changed in
my mind.

Inspiring Service - Growing Value

I realized that I didnt want to spend my


life sitting behind a computer. I enjoyed
working with people, I liked being in an
exciting environment, and I knew I wanted
to pursue a career in the hospitality industry. The next day, I quit university.
I was already a manager at the casino
and it wasnt long before I had an opportunity to join my first hotel, which was then
the Canadian Pacific Hotel in Lake Louise (now the Fairmont Chateau Lake
Louise). I started out as the Staff Pub
Manager and eventually became Chief
Steward and Director of Banquets.
After a brief stint at the Fairmont Chateau Whistler as the Assistant Director
of Food and Beverage, I was back to the
Fairmont Chateau Lake Louise as the
Director of Conference Services.
In 2007, I was appointed the Director
of Food and Beverage at the Delta Lodge at
Kananaskis and then in 2011 moved to
Edmonton to serve as the General Manager
of the Sawridge Inn Edmonton South and
then the Courtyard by Marriott Edmonton
West. Two years ago I was hired as General
Manager of the Renaissance Edmonton
Airport, and I have to say working here is
the highlight of my career so far.
Right now were a multi-award-winning
hotel. We are number one in our brand, we
are the first Renaissance hotel ever to be
attached to an airport, and honestly things
couldnt be better. A lot of hotels are going
through a tough time right now, but were
actually growing. This hotel which is part
of the Marriott brand and owned by Platinum Investments is an absolute gem with
the level of design and finish thats been
put into it.
One of the things that has stood out for
me working for this hotel is its dedication
to developing people within the company.
We have a program called the Black Coat
program and weve had a lot of success by
actively developing our employees.
Being part of a smaller company, we have
to follow Marriott standards but we also
have freedom to set our own agenda and

www.ahla.ca

develop our own culture. Part of our culture is this belief in what we call potential
over experience, so we look to see if somebody has the potential to do well and if we
believe in them, we give them the experience. We get these people who are super
engaged and dynamic and all we have to do
is focus them, channel them, train them,
and great things happen.

We instill our culture in


people with potential and
we develop them to be our
leaders and its really paid
off for us.
Today everyone is trying to do more with
less, and a lot of the long-term programs in
development and training that used to exist,
have gone by the wayside. At Platinum/
Renaissance Ive seen the hotels really
embrace the development of the employees
to benefit itself in the future. We instill our
culture in people with potential and we
develop them to be our leaders and its
really paid off for us. Along with the design
of this hotel, thats why were number one
in our brand.
Part of the reason this idea is so near and
dear to me is because Im not just somebody
who is standing at the head of the hotel saying we need to look for potential in other
people. Im somebody who Platinum looked
at and recognized the potential in. When
this hotel had just opened and they needed
to replace the General Manager, they took a
gamble on me because they felt I had lots of
potential. Im so proud of everything weve
accomplished at this hotel in the past couple of years. Thats one of the reasons I say
the highlight of my career is being the
General Manager here because it proves
something that I believe in and the c
ompany
believes in the power of working with
people to develop their potential.

Fall 2016

Mainstay 29

PHOTO : DARRYL PROPP

Parting SHOT

Alberta Icon

THE HOODOOS CONTINUE TO ATTRACT


INTERNATIONAL VISITORS TO DRUMHELLER

Earth pyramids, fairy chimneys, tent rocks: most Albertans probably know
them better as hoodoos. These internationally recognizable geological formations caused by the effects of erosion from water, wind, and frost c ontinue
to attract thousands of visitors to the Badlands every year. The protected
Hoodoos recreation area, located approximately 15 minutes east of Drumheller
on Highway 10, is a guaranteed location to view them but smaller versions of
these striking sandstone pillars can be spotted all over the Badlands.

30 Mainstay

Fall 2016

www.ahla.ca

Do you have a fantastic photo youd like published


in the next issue of Mainstay?
Submit it to nbarber@ahla.ca or mail it to:
2707 Ellwood Drive SW
Edmonton AB
T6X 0P7

The Alberta Hotel & Lodging Association

Your insurance program


designed for your industry

Commercial Insurance
Thom Proch
1-800-665-8990 ext. 7313
thom.proch@westernfgis.ca

Employee Benefits
Nolan Friesen
1-800-665-8990 ext. 7215
nolan.friesen@westernfgis.ca

201-600 Empress St
Winnipeg, MB R3G 0R5

Find out how you can benefit from the


Hospitality Insurance Program
Rate Stability of pooling your coverage with
more than 1000 participating hotels
Industry Best Coverage
Reduced Costs

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Electrolux Smart Washers and Dryers


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Electrolux developed AWS, a UNIQUE feature that
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size. Combine that with Smart Dosing which adjusts
laundry chemicals to water ratio, and you will see
immediate savings and superior wash results
every time, automatically.

Experience the Electrolux difference.


Lease Options available.

Special financing available. Call today to learn more.

(403) 273-4040 (800) 661-1530


www.albertalaundry.com

Your Authorized Electrolux Professional Laundry Distributor

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