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4 UP FRONT November 2019 | HOTELMANAGEMENT.NET
W
e’re back again this year questions. You also are able to search EDITORIAL
with our successful HOTEL for these companies by category. 685 Third Ave., 21st Floor, New York, NY 10017
MANAGEMENT We’re sure this feature will help make
Editor-in-Chief—Stefani C. O’Connor
E-BOOK SERIES and are enjoying researching products and services for scoconnor@questex.com | (212) 895-8236
delivering another great set of six fresh your hotel much easier.
Senior Managing Editor—Elaine Yetzer Simon
e-books filled with information that September’s e-book showcased
esimon@questex.com | (212) 895-8431
will help you succeed in your business. the TOP HOTEL COMPANIES.
In doing so, the quality product we This survey ranks hotel ownership, Associate Editor—Jena Tesse Fox
jfox@questex.com | (212) 895-8287
bring to you monthly in print—and third-party management and
daily online—again this year has franchise companies by the number Associate Editor—Chuck Dobrosielski
supplement our thought-provoking respective portfolios. Like in our Art Director—Amy B. Witek
news, survey information and opinions THIRD-PARTY MANAGEMENT awitek@questex.com | (440) 540-4935
our HOUSEKEEPING & data about each company. We VP Hospitality Group—Amy B. Vaxman
helps housekeepers complete their your next deal. czucker@questex.com | (732) 845-0011 | Fax: (732) 358-0390
responsibilities quickly, efficiently and This month’s e-book is Dir. Business Development, East Coast—Jai Wallace
safely, it also explains how behind-the- our UPGRADE: SMART jwallace@questex.com | (212) 895-8409 | Fax: (212) 895-8219
scenes housekeeping and maintenance PURCHASING DECISIONS FOR Dir. Business Development—Mary Malloy
efforts can extend renovations and save 2020, which features a wealth of mmalloy@questex.com | (216) 402-9467
hotels money. We also touch base on information from our annual Voice Audience Development Manager—Carol Hatcher | chatcher@questex.com
how the industry is addressing safety of the GM Survey. We take a look at
and security for its line associates and managers. what categories or items hotels are looking to invest in next PRODUCTION
In April we shared our THIRD-PARTY year and what new products are available. This e-book is Production Director—Hal Garstein
MANAGEMENT REPORT, which includes our annual bound to help you determine the best areas for spending as hgarstein@questex.com
Third-Party Management Companies Survey, one of our we move forward into 2020.
Production Specialist—Sue Gigliotti
most popular. All Hotel Management surveys include Our final e-book in the series, A VIEW FROM THE sgigliotti@questex.com | (212) 895-8239
contact information for key leaders and relevant data about TOP: Q&A WITH TOP EXECUTIVES, will debut in
each company’s portfolio and performance. The e-book also December. As its title explains, this e-book will contain a MARKETING/MAGAZINE SERVICES
includes a look at how management companies are dealing variety of outlooks from a number of top hotel industry Marketing Director—Alexandra Aldridge
with the tight labor market and ways they can deliver leaders. We hope it gives you some insight on where the aaldridge@questex.com | (212) 895-8284
profits, among other topics. We trust this e-book will help industry stands and where it is headed. Marketing Coordinator—Angela De Palma
you select the right management company and increase your I hope you enjoy our e-book series and find it informative adepalma@questex.com | (212) 895-8445
profits. and useful in the daily operation of your business. Please
Permissions/Reprints—Wright’s Media | (877) 652-5295
August led off with WHO’S WHO IN feel free to reach out to me with any questions or feedback at
HOSPITALITY, a comprehensive list of hospitality-related avaxman@questex.com. HM Subscriptions, Customer Service, Back Issues, Single Current Copies
companies covering all aspects of the industry. The pages hotelmanagement@omeda.com | Toll Free: (866) 344-1315 | Intl: (847) 513-6024
of this e-book showcase their products, services and contact Amy Vaxman is VP of Questex Hospitality Group
information so you can reach them directly to receive EXECUTIVES
CONNECT WITH US! At Hotel Management, we are doing more and more each day to interact and engage with you—our loyal
readers. Join us on the following social-media platforms and join the discussion. EDITORIAL ADVISORY BOARD
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6 NEWS November 2019 | HOTELMANAGEMENT.NET
TRADE CLIMATE
Rather than downturn anxiety,
the trade climate with China
appears to be having the bigger
impact on hoteliers’ budgets.
For Hotel Equities, DeCort
estimated that the trade war has
led to increases in construction
material costs “to the tune of 20
to 25 percent.”
Hotel Equities EVP Bryan DeCort noted that there are pockets of softening performance around Houston, but some properties, such as the SpringHill Suites by In terms of purchasing
Marriott Houston Medical Center/NRG Park, are seeing significant revenue per available room growth. specifically, Habeeb said recent
tariffs also have had a notable
BY CHUCK DOBROSIELSKI PURCHASING IMPACT said Hotel Equities’ 2020 pur- will drop, not rise, beyond 2020. impact on furniture, fixtures
@CHUCKDOBRO Bryan DeCort, EVP at Hotel chasing budgets are larger, but Arbor Lodging Manage- and equipment. “Prices have
As revenue per available room Equities, said his company he attributed that largely to ment’s CEO Sheenal Patel also generally increased in China
growth continues to slow, the doesn’t have any anxiety over portfolio growth and inflation- described his company as not and then add the tariff and now
cautious optimism of early 2019 2020 in terms of hotel perfor- caused cost creep. “We’re cer- anxious, but admitted it is pre- Chinese goods have become very
appears to be shifting toward mance. Though he said part of tainly going back to our vendor paring for a downturn to hap- expensive,” he said. “They still
just caution in many cases. At this is related to the company’s partners and our national ac- pen. “We asked all our properties are competitive with domestic,
Best Western Hotels & Resorts’ confidence in its expansion count partners and asking them [to] have plans together where, but they’re not the bargain they
North American convention this plans, he added that the com- to sharpen their pencils, but we say, if there’s a RevPAR drop of used to be and now we look to
October, for example, President/ pany also believes the economy do that all the time anyways,” 10 percent, this is what we do; markets like Vietnam, who isn’t
CEO David Kong told attend- is ripe right now. “It’s as healthy he said. Given Hotel Equities’ if there’s a RevPAR drop of 15 subject to the same tariffs and
ees he was concerned there will as it’s ever been and we continue expansion plans in the coming percent, this is what we do,” said has a much lower workforce
be a slowdown in the future. to be bullish around the future years, DeCort said the company Patel. cost, labor cost.”
Though he said he remained in the hospitality space,” he said. expects—“short of any type of Arbor Lodging is making Arbor Lodging also has
hopeful the government’s fiscal Compared to 2019, DeCort black swan event”—that costs changes to its purchasing bud- found that the trade climate
and monetary policies will keep has had a particular effect on its
the economy going, he acknowl- renovation projects, according
edged hope is not a strategy. to Patel. Whereas in the past the
“This is the time to be pre- company would buy everything
pared for a downturn,” Kong from China, it now is turning
told Hotel Management. “It’s not to other countries where costs
if it’s going to happen, it’s going may be similar, but lead times
to be a matter of time.” are longer.
Operators, though they As for as how long hoteliers
recognize the possibility of a can expect this to continue,
decline in the future, expressed Habeeb said he’d be willing to
little apprehension—at least for bet there will be a deal on tariffs
the next year. “I would say there in the next 12 months: “I actu-
is a storm out there,” said Bob ally assume that at some point,
Habeeb, founder/CEO of Mav- this government will play its
erick Hotels and Restaurants. hand out to get the deal it wants
“I don’t know if it’s a Category with tariffs and if it doesn’t get
4 and I don’t know that I [can] the deal it wants closer to the
predict when it will make land- To boost revenue but save on costs, Arbor Lodging Management is putting together a plan to provide roomservice election, it will probably take a
fall, but my guess would be we’re to guests at the Hampton Inn by Hilton/Homewood Suites by Hilton Chicago Downtown Magnificent Mile through a different deal and claim it was
still a couple years away.” third-party caterer. the deal it wanted.” HM
H OTELM A N AG EM EN T.NE T | Nove mb e r 2019 NEWS 7
SETTING PRIORITIES
Effective property bandwidth
management also has been
proven to increase guest satis-
faction, said Nomadix CEO
Ted Helvey. “Guest bandwidth
usage has continued to increase
as new applications are adopted,
changing the patterns of internet
usage,” he said. “The onsite gate-
JW MARRIOTT MIAMI TURNBERRY RESORT & SPA ways can prioritize bandwidth
across an entire property accord-
HOTEC Design
ing to levels of priority between,
for example, conference spaces
and free users in the lobby. The
ability to prioritize a high-paying
06/28/20 – 06/30/20
conference group over free users
is critical, as is the need to ensure
the free users still have adequate
An Elite Event Crafted Specifically For bandwidth.”
Depending on the age of the
Hospitality Professionals. current network, hotels may
want to consider upgrading their
ONE-TO-ONE MEETINGS | RELAXED NETWORKING | INNOVATIVE INSIGHTS
cable runs, said Shaun Gardner,
technical sales engineer for Elev-
HOTEC Design brings designers, hoteliers, architects, management companies, purchasing firms and more
en. This includes fiber runs from
face-to-face with innovative suppliers for three days of one-to-one meetings and creative exchange. the main distribution frame to
each intermediate distribution
Whether you are a buyer or supplier, we invite you frame, as well as copper runs to
each room because networking
to discover the value of HOTEC Design. best practices recommend using
in-room access points versus
placing access points in common
areas such as the hallways. Gard-
ner advised that there is always
the option to upgrade switches to
full gigabit or multigig ports as
well as the latest 802.11ac/ax ac-
cess points, as well as install more
modern wireless controllers.
“Granted, there are a lot
of variables that would help
determine which switches and
APs would be necessary and I
always recommend having a
site survey and audit take place
during the bidding process,”
Gardner said. “Once the net-
HOTECDESIGN.COM
NEWS 9
19 %
Network infrastructure up-
grades often are designed to be
fully scalable, allowing hoteliers
to implement additional fea-
» of Hotel Management’s 2019 Voice of the
GM survey respondents upgraded their
tures and capabilities as needed, wireless infrastructure in 2019 and 16% plan
Helvey said. “This ensures that
hotels can support bandwidth on upgrading it next year.
levels and capabilities that match
their current needs and budgets are a direct investment for the important amenities for hotel IoT, a hotel can increase their
while being able to upgrade net- property to help drive guest satis- guests. “By implementing a con- [return on investment] by pro-
work abilities as needs or guest faction. The reliability and speed verged network that can handle viding their guests with a great
demands change,” he said. of the Wi-Fi network is continu- the growing number of network connected experience at a lower
Any upgrades to the network ously ranked as one of the most endpoints from IPTV, voice and cost,” Weinholtz said. HM
COST FACTORS
Any infrastructure upgrade is
going to require financial invest-
ment. Some integrators seek to
help hotels by offering an opera-
tional expenditure model, which
allows the upgrade costs to be
spread across years, said Trevor
Dowswell, chief technology of-
ficer at Hotel Internet Services.
“If a full upgrade budget is not
available, there are methods of
approaching these upgrades
modularly,” he continued. “If
any form of remodeling or
retrofitting takes place, take
advantage of walls being opened
to run copper Ethernet or fiber
cables in a far more cost-effective
fashion than during operating
periods.”
Adding new wiring generally
is one of the most costly aspects
when upgrading networks, but
this will future-proof the hotel
for later upgrades and allow
higher density AP placement,
Gardner said. This improvement
equates to higher signal strength
and higher throughput, which
helps to deliver a more depend-
able and faster Wi-Fi experience
for guests. Adding a wired run to
each room also gives the hotelier
the option to upgrade to more
modern internet protocol TVs
and IP phones later on.
“Wiring upgrades can be
costly but cutting corners in
the short term can create more
expensive remediation issues in
the future,” he continued.
10 NEWS November 2019 | HOTELMANAGEMENT.NET
1 GO BEYOND
AESTHETICS
Yes, hotel bedding has to look
said Michelle Wildenhaus,
principal/director of marketing
for textile firm Studio Twist,
especially when deadlines are
looming. Procurement experts
need to work carefully with ven-
Group’s interior design firm for
select-service hotels, for example,
is working on a Hyatt Place in
them to keep the project on
track.”
PIPs can be a bit less stressful
nice, but guests won’t be happy wool has “a level of luxury that dors and hoteliers to make sure Salt Lake City and faced a lead but being aware of the timeline
with uncomfortable sheets and is unmatched.” For any knitted the right material is available at time of 10 to 12 weeks for some is no less important. “For key
owners won’t be happy if they product, she added, synthetic the right time. bedding pieces. This didn’t work items, brands will set a compli-
have to constantly replace dam- yarns are best for hotels, “in large “When you’re talking with the project’s schedule—but ance date and hotels then can
aged or soiled textiles. For Brian part due to life-cycle costing ad- softgood renovations, a lot of the procurement team was able pick the best time to purchase,
McGuinness, SVP of global vantages.” your lead times are going to be to get alternative options from typically based on a desire to
guest experience at IHG, the key dependent on fabrics,” Hiter the vendors and bring them to be an early adopter within a
factors when choosing bedding
and softgoods are durability,
the supply chain and looking
2 DEVELOP
RELATIONSHIPS
Knowing the right vendors can
cautioned, noting all the differ-
ent parts of a guestroom that will
need different types of textiles
the designers. “Here’s something
similar that meets the same
requirements [in terms of] color,
brand, their inventory levels of
the earlier product, their budget
cycle and availability, renovation
at forward-thinking trends like make all the difference when for different purposes. To meet treatments [and] durability and schedule and occupancy levels,”
sustainability. While price is it comes to selecting the right deadlines, teams need to work it’s within budget and has a said McGuinness. HM
important, McGuinness empha- materials for a guestroom. “I
» 48 %
sized that hoteliers and designers constantly cultivate relationships
should look beyond the sticker with the representatives of vari-
of Hotel Management’s 2019 Voice of the
price. “The product may not wear ous manufacturers and vendors,” GM survey respondents said they plan to
well or be acceptable to what a said Philippe Brenot, senior
guest expects from a hotel ex- director, retail procurement for spend significantly more on bedding and
perience,” he said. “Guests have Miraval Group. “I also leverage
more lodging options now than our Hyatt Corporate Purchasing
softgoods in 2020.
ever, so hoteliers should strive for division at Rosemont with their
updated, relevant looks.” large database of vendors ... as
Residential bedding is not the well as the power of contracts
same as hotel bedding and can- negotiation through Avendra,
not be chosen in the same way. the group purchasing organiza-
“It’s important when specifying tion we are part of.”
and procuring to make sure the IHG, McGuinness said, will
fabrics inherently include (or push for vendors that provide
separately get treated) to provide both high-quality products
the proper soil and stain release, for guests to use and good cus-
durability [and] flame require- tomer service to the company’s
ments and are washable, depend- hotels, and also have “the right
ing where in the guestroom the manufacturing and distribution
fabric is being used,” said Anne capabilities and locations.”
Hiter, procurement director for
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