Opinions
How to Factor Generational Mindsets Into Hotel Sales
As hotel sales directors, do you take into account generational differences when planning a meeting or incentive? How much thought do you give to generational mix when selling a concept to a group? Here is a new method, with proven case histories, that can increase group business at your property by showing meeting planners how they can have a successful event at your hotel by creating generational functions....
Brace Yourself For Hotel Merger Mania
One sure sign an industry is trending upward is an increase in mergers and acquisitions activity. Given the lodging industry’s stellar performance over the last 18 months, it’s no surprise, then, that merger mania is about to break out in the hotel business....
Another Key to Developing a Successful Short-Stay Destination
Of my three keys to developing a successful short-stay destination, the first is no surprise: location. In this case, the ideal spot is an established destination near a metropolitan area but accessible via quiet roads that transport travelers to a more tranquil or low-key environment. The second key is concept. Developing a unique design concept for a short-stay getaway is critical to its short- and long-term success....
New Appraisal Method Could Limit Lending
If you‘re not a real estate appraiser, you’re probably unaware of a major catastrophe looming that could effectively eliminate all types of hotel financing, making it all but impossible to either build or sell a hotel. Under potential new governmental lending regulations, hotel appraisers will be forced to utilize an appraisal methodology that will lower their hotel valuations by as much as 40%, forcing borrowers to finance significantly less of their acquisition prices at greatly inflated interest rates. While this topic is somewhat technical, I will attempt to describe the issues in simple terminology....
How Social Media Levels the Playing Field
Marketing intelligence can be gleaned from social media, a fact well documented. From recommendations to general opinions shared online, hotels gain great insight into the relevance and effectiveness of their marketing messages. ...
Keys to Developing a Successful Short-Stay Destination
Management company executive John Logan is joining LHonline as a regular contributor. His stories will focus on a wide range of hotel development operations issues, Today, he launches a three-part series on the keys to developing a short-stay destination. First up is the role of location....
The SEO Obsession
Many GMs, revenue managers and marketing directors at independent hotels are obsessed with search engine optimization (SEO) and in my opinion it’s almost entirely a waste of money and time. There’s a myth, perpetuated by digital agencies that make a lot of money ...
The Changing Landscape of Hotel Management Agreements
Just when the hospitality industry economy is starting to improve, there is a new threat to the business model: owners are literally throwing operators out—whether or not they have the contractual right to do so....
How to Estimate Hotel Mortgage Interest Rates
In today’s low mortgage interest rate environment, hotel investors need to constantly monitor the cost of financing to ensure they lock-in the lowest possible rate. Generally, a hotel investment consists of a large amount of mortgage money (55%-75% of the total investment) and a smaller amount of equity capital (25%-45%). Thus 55% to 75% of a hotel project's cost of capital ...
Increasing Efficiency in Hotel Laundries
A hotel’s laundry room may not be thought of as the most advanced, efficient operation within the building—but why not? Laundry managers have more options today to improve this necessary function of a hotel....
Different Ways to Restructure a Hotel Loan
After four years of negative and negligible growth, the U.S. economy is finally showing signs of recovery. Despite this, global events including financial challenges throughout Europe and political turmoil in the Middle East may contribute to tipping our economy back into a recession. ...
Locals Help Drive Iron Horse’s Success
Most developers who venture into hospitality view the independent boutique hotel as their baby — the most draining, hand wringing and rewarding property in their portfolio. For the Iron Horse Hotel, it has been a particular labor of love because our hotel opened simultaneously with the worst credit crunch in U.S. history. That meant opening $7 million short, with no working capital and in a secondary market. ...
First Impressions Start at Parking Garages
Imagine driving through the exciting new environs of the vacation getaway you have planned on for months, fresh off a six-hour flight. Eager with anticipation, you pull up to the all-inclusive resort where you will be spending the next week in sensory bliss. As you reach the property’s gates ...
Reviewing Social Media Sites Critical
Last April, I wrote a column about how online travel agency websites (like Expedia and Priceline) affect hotel values. I received quite a bit of mail about that article—a lot of people have been wrestling with how to control this new and increasingly important technology. One of the key messages...
Taxes: What You Don’t Know May Cost You
A capital gain occurs when an asset increases in value. Under most circumstances, this event is taxable only when the asset is sold and the gain (or loss) is realized. In general, capital gains taxation in the U.S. has been at 15% for several years. What you may or may not be aware of is starting in January, that rate will increase to 20% above the first $250,000. ...
The Impact of Politics on the Hotel Business
As always seems to happen when politics enters the conversation, discussions and debates about the role of government and regulatory impact on the hotel industry tend to become polarized depending on your political affiliations....
Be Sure Your Political Voice Is Heard
The Marriott brothers Bill and Richard are in for $1.5 million. And Omni Hotels owner Robert Rowling has kicked in a million bucks. How much money will you be donating to political candidates for this fall’s presidential and other elections? I doubt if it will be anything close to what these super-rich hotel guys can afford and have so far donated to various Super PACs, but it’s just as important you participate in the process this year and every year. ...
Anticipate Good Returns with Hotel Real Estate
The value of a hotel, or of any type of real estate, is always based on the concept of anticipation. Anticipation is the expected utility that will come to the real estate owner in the future. For example, when you estimate the price you would be willing to pay for a ...
The Time Has Come for Amenity Dispensers
One of my favorite authors is Malcolm Gladwell, who among other books wrote The Tipping Point: How Little Things Can Make a Big Difference. As Malcolm adeptly put it, the “tipping point” is that magical moment when an idea, trend or social behavior crosses a threshold, tips, and spreads like wildfire. Another definition of tipping point is “the point at which the buildup of minor incidents reaches a level that causes most to do something they had formerly resisted.” ...
Plenty of Opportunities Ahead in 2012
The U.S. lodging market experienced strong demand recovery throughout 2011. However, despite the recovery brought on by a resurgence of corporate travel, average rates in 2011 recovered at a more moderate pace when compared with occupancy. The lodging sector appears coordinated in its efforts to improve average rate as occupancy trends continue to stabilize....
ALIS Raises the Curtain on 2012
Strangely perhaps, curtains played a big part in last month’s Americas Lodging Investors Summit in mostly sunny Los Angeles. Of course, curtains were used to cordon off the public spaces in the JW Marriott at LA Live to keep non-payers from crashing the party. Beyond that distraction was a curtain of doubt that seemed to spread across conference attendees and speakers as the event progressed. ...
Is It Time to Change Hotel Management?
Change can be daunting. But for hotel owners and operators who suspect they’re not getting the most out of their property or properties, change can also be essential. Changing hotel management companies can have a potentially dramatic impact on your day-to-day operations, your long-term prospects and your bottom line. The big question, of course, is whether or not to make a change in the first place. ...
Controlling Costs & Liabilities Related to Housekeeper Injuries
Hotels continue to deliver increasingly higher levels of luxury for their guests, including now providing luxurious guestroom beds that have more than doubled in weight and thickness in just the last 10 years. Unfortunately the increase in weight has led to a dramatic increase in housekeeper injuries and associated ...
The Dangers of Third-hand Smoke in Hotels
Most of us have heard the term “second-hand smoke.” This is the smoke that comes from the end of a lighted cigarette or is exhaled by a smoker. It’s airborne and noticeable because it has a distinct odor. Some studies indicate that frequent inhaling of second-hand smoke can be as dangerous—if not more so—to the nonsmoker as it is to people who do smoke. Now a new term has emerged: “third-hand smoke.” ...
