What's the next big thing in guest services? Is it bigger TVs with more available content? Free and faster Internet access? Or perhaps it's found in the bathroom in the form of plusher towels or better soaps and lotions?

Every hotel brand and individual property constantly seeks that set of amenities, facilities and services that not only meet guest expectations, but perhaps exceed them. The one-time rule of thumb in the hotel business mandated that owners equip their guestrooms with the ff&e and amenities that match, or slightly exceed, what guests have in their homes. As innovations in home electronics and personal technology appear at an ever-faster rate, it's difficult for hoteliers to keep abreast, let alone ahead, of in-home trends.

By reviewing the product offerings listed in the Guest Services Handbook and product announcements from hotel companies in all segments, it's clear that a number of guest products and amenities are now, or soon will be, standard in properties at all price points:

• Flat-screen TVs, with screen sizes of 40 inches or larger in guestrooms and even bigger in suites;

• Enhanced Internet access, often with a choice of wired or wireless, with enough capacity to allow computer use beyond e-mail, simple web surfing and office tasks;

• Improved entertainment content to match what consumers have available in their homes;

• Sound — everything from clock radios (with simple controls) and built-in MP3 players to high-quality CD players;

• In-room safes with electronic combinations;

• Plush bed linens with a wide choice of pillows;

• Refreshment centers and upgraded coffee service;

• Bathroom luxury in the form of large shower stalls, multiple showerheads, curved rods and premium personal care products;

• Self-service options, particularly self check-in and -out;

• Business services, from fully staffed business centers to self-serve modules, all with the ability, among other things, to print airline boarding passes;

• Community spaces, lobbies or f&b areas where guests can gather, socialize and order coffee, drinks and light snacks.

SPENDING PATTERNS

Last year, according to PricewaterhouseCoopers, the hotel industry spent $5.5 billion on capital upgrades, much of it for amenities, services and systems that directly or indirectly affect guest service. CapEx 2007, a study of capital expenditures in the lodging industry, provides a glimpse at how that money is spent. The report was published by the International Society of Hospitality Consultants with assists from the American Hotel & Lodging Educational Foundation and the Hospitality Asset Managers Association. It previously was done in 1995 and 2000.

On average, a typical hotel owned by a public company spends 5.5 percent of annual revenues on capital expenditures. For privately owned properties, the outlay is 4.7 percent of revenues. To put it into context, a 100-unit rooms-only hotel with 70-percent occupancy and a $100 room rate generates about $2.5 million in annual room revenues. A five-percent CapEx budget amounts to around $125,000, or $1,250 per room. That slim amount requires some sharp planning to keep guestrooms up to date, given the costs of many of the guest-pleasing amenities required in today's competitive marketplace. The study estimates that in a select-service hotel, the cost of replacing bedding, guestroom technology and TVs (with a flat-panel set) can cost about $1,700. CapEx monies must also be spent to upgrade public spaces and back-of-the-house areas, as needed.

However, hotels don't typically spend CapEx money in each year that it is budgeted. Spending on replacement and upgrading obviously is insignificant in the early years of a hotel's life. However, spikes in expenditures occur when hotels typically undergo soft or hard renovations. According to the study, for example, CapEx spending spikes at full-service and luxury hotels during the sixth or seventh year of operation (spending goes to around nine percent of revenues, reflecting a hard-goods renovation) and during years 14 and 15, when spending reaches six or seven percent.

Around years 23 or 24, on average, spending soars to nearly 25 percent. Often, this represents spending requirements associated with a sale of the property and, more likely, a product improvement plan mandated by a flag change. As study co-author Alan Benjamin of Benjamin West says, “I believe the next study (slated for 2012) will report even greater spikes as more hotels change flags, names and PIPs every few years.” And, as hotels change flags, it's nearly certain that they'll be required to add enhanced ff&e items like luxury bedding, flat panels and upgraded bathroom products and amenities.

For select-service properties, CapEx spikes are seen more frequently than in full-service hotels. For select-service, expenditures typically rise around years 7, 10, 13, 17 and 20. The first two are typically hard or soft renovations, while the latter represent flag changes and the PIPs they mandate.

How CapEx dollars are spent also differs by property segment. For all types of hotels studied, except select service, rooms and corridors consume the largest portion of CapEx expenditures. Full-service and luxury hotels spend 37 percent of these monies in this area. At extended-stay hotels, it is 50 percent, while within select-service, it is just 21 percent.

Not surprisingly, full-service hotels allocate nearly 20 percent of the budget for public spaces, including meeting rooms and f&b outlets. Much as guest needs in guestrooms change quickly, so do tastes and expectations in restaurants, lounges and lobbies. The trend toward lobby spaces that are more community-oriented and designed for multi-uses (working, socializing, eating, drinking) has been a catalyst for a lot of capital expenditure allocations in recent years.

THE HANDBOOK

This year's edition of Lodging Hospitality's Guest Services Handbook makes it easy for lodging owners and operators to find the vendors who offer an array of guest-pleasing products and services. The handbook is arranged by broad product categories — guest services, bathroom amenities, in-room amenities and in-room entertainment — and specific product types.

Advertisers in the issue are listed in blue, and all companies have reader service numbers. Use the reader response card to receive information from any of the companies in the handbook.

GUEST SERVICES PRODUCTS

		ATM machines	Check-in, check-out kiosks	Online check-in, check-out	Onsite business centers	Public space high-speed Internet access (wired)	Public space high-speed Internet access (wireless)	Other
Applied Media Technologies	— Circle 165						•
ATM Systems	— Circle 166	•
ATM USA	— Circle 167	•
Brother International	— Circle 168				•
Business Express by USA Technologies	— Circle 169				•	•		•
Cisco	— Circle 170					•	•
Ethostream	— Circle 69					•	•	•
Fire2Wire	— Circle 171					•	•
Galaxy Hotel Systems	— Circle 172		•	•
Global Business Center, GBCblue	— Circle 63				•			•
Guest Direct	— Circle 64							•
Guest-Tek Interactive Entertainment	— Circle 65					•	•	•
Hospitality Safe Corp.	— Circle 66	•	•	•	•	•	•	•
Hotel Information Systems	— Circle 67		•
iBAHN	— Circle 68					•	•
Life Fitness	— Circle 70							•
LodgeNet Entertainment Corp.	— Circle 71					•	•	•
Minibar Systems	— Circle 72							•
nSTREAMS Technologies	— Circle 73					•	•	•
NXTV	— Circle 74					•	•
Penfield's	— Circle 78	•			•			•
Road Runner Business Class	— Circle 76					•	•	•
Roomlinx	— Circle 75					•	•	•
Saflok	— Circle 77		•
Teledex	— Circle 79					•	•
Telkonet	— Circle 80					•	•	•
USA Technologies	— Circle 81				•
Vertical System, Inc.	— Circle 82				•			•
Wayport, Inc.	— Circle 83				•	•	•

IN-ROOM ENTERTAINMENT PRODUCTS

		Basic TV programming	Folio review	High-speed Internet access (wired)	High-speed Internet access (wireless)	On-demand movies and programming	On-screen checkout	Premium TV programming	Televisions	Video games	Other
Bartech Systems	— Circle 124		•
DirecTV	— Circle 148	•						•
ESPN, Inc.	— Circle 149	•				•		•
Ethostream	— Circle 69			•	•
Extenway	— Circle 128	•	•	•		•	•	•	•	•
Fire2Wire	— Circle 171			•	•						•
Fox Cable Networks	— Circle 150	•
Guest Supply	— Circle 98							•
Guest-Tek Interactive Entertainment	— Circle 65	•	•	•	•	•	•	•			•
Home Box Office	— Circle 151					•		•
Hotel LCD TV / RoomConX	— Circle 162								•
Hospitality Safe Corp.	— Circle 66	•	•	•	•	•	•	•	•	•	•
iBAHN	— Circle 68			•	•
InfoValue Computing	— Circle 152		•	•		•	•
LG Electronics	— Circle 153								•
LodgeNet Entertainment Corp.	— Circle 71	•	•	•	•	•	•	•		•	•
Mill Distributors, Inc.	— Circle 109								•
NBG	— Circle 136								•		•
nSTREAMS Technologies	— Circle 73	•	•	•	•	•	•	•			•
NXTV, Inc.	— Circle 74	•	•	•	•	•	•	•		•	•
Panasonic's Broadcast & Television Systems	— Circle 154								•
Petters Hospitality & Entertainment Group	— Circle 155								•
Philips Business Display Solutions	— Circle 156								•
RCA	— Circle 157								•
Roomlinx	— Circle 75	•	•	•	•	•	•	•	•	•	•
Samsung	— Circle 158								•
Sharp	— Circle 159								•
Sony	— Circle 160								•
Star Linen & Hospitality Supply	— Circle 117								•
Showtime Networks	— Circle 161					•		•
Teledex	— Circle 79			•	•						•
Telkonet	— Circle 80			•	•
Wayport	— Circle 83			•	•

BATHROOM AMENITIES PRODUCTS

		Bathrobes	Curved shower rods	Hairdryer (mounted)	Hairdryer (standalone)	Nightlights	Personal bathroom mirrors	Personal care products	Premium bath linens	Premium showerheads	Scales	Slippers	TVs	Other
A-1 Textiles	— Circle 84								•
Amerisafe Industries	— Circle 85	•	•	•	•	•	•	•	•	•	•	•	•
Andis Co.	— Circle 86			•	•
Baci by Remcraft	— Circle 87						•
Classic Coffee Concepts	— Circle 88			•
Colgate-Palmolive Co.	— Circle 89							•
Courtesy Products	— Circle 90			•	•			•			•	•		•
Cypress Hotel & Spa	— Circle 91	•							•			•		•
The Dial Corp.	— Circle 92							•
Erwyn Products	— Circle 93	•	•	•	•		•	•			•	•
Essential Amenities	— Circle 94	•						•	•			•
ETL	— Circle 95									•
The French Reflection, Inc.	— Circle 96			•	•		•
Green Suites International	— Circle 97							•		•
Guest Supply, Inc.	— Circle 98	•	•	•	•	•	•	•	•	•	•	•	•	•
Hamilton Beach	— Circle 99			•	•
Harbor Linen	— Circle 100	•		•	•				•			•
Hospitality Safe Corp.	— Circle 66	•	•	•	•	•	•	•	•	•	•	•	•	•
Hotel Amenities Resource	— Circle 101							•
Hotel Technologies	— Circle 102	•				•			•
Jarden Consumer Solutions	— Circle 103			•	•		•			•
Jerdon Products	— Circle 104			•	•		•
Kimball & Young, Inc.	— Circle 105													•
Lather, Inc.	— Circle 106							•
Lissadel by Aquarelle Towels	— Circle 107	•							•
Lodging Technology Corp.	— Circle 108					•
Mill Distributors, Inc.	— Circle 109	•	•	•	•		•		•	•		•	•
Pineapple Hospitality	— Circle 110	•					•	•	•	•		•		•
The RobeWorks	— Circle 111	•
Room ConX	— Circle 112												•
Room Service Amenities	— Circle 113							•				•		•
The Sharper Image	— Circle 114				•		•			•	•
Springs Industries	— Circle 115								•
STA Elements	— Circle 116	•		•	•			•	•			•		•
Star Linen & Hospitality Supply	— Circle 117	•	•	•	•	•	•	•	•	•	•	•	•
Sunbeam Hospitality	— Circle 118			•			•			•
Symmons Industries	— Circle 119									•
Wessco International	— Circle 120							•				•		•
Westpoint Home	— Circle 121								•

IN-ROOM AMENITY PRODUCTS

		CD players	Clock radios	Coffeemaker/coffee systems	Cordless/corded telephones	Daily newspaper	Electronic locks	Fax machines	High-end sound systems	Ice buckets/glasses/trays	In-room computer systems	In-room fitness equipment	Irons/ironing boards/systems	Pens/pencils/writing supplies	Premium bed linens	Refreshment centers (minibar)	Refrigerators	Safes	Turndown amenities	Other
Andis Co.	— Circle 86			•									•
Bar-Maid Corp.	— Circle 123															•	•
Bartech Systems	— Circle 124															•
BIC Graphic USA	— Circle 125													•						•
Bittel USA, Inc.	— Circle 122				•
Boyd Coffee Co.	— Circle 126			•
Brother International	— Circle 168							•
Classic Coffee Concepts	— Circle 88		•	•									•
Courtesy Products	— Circle 90	•	•	•						•			•
Cypress Hotel & Spa	— Circle 91														•
Dometic Corp.	— Circle 127															•
Energy Eye, Inc.	— Circle 163																			•
Erwyn Products	— Circle 93	•	•	•						•			•	•
Extenway	— Circle 128								•		•									•
FSR, Inc.	— Circle 129								•
Global Business Center, GBCblue	— Circle 63										•
Godiva Chocolatier	— Circle 130																		•
Green Suites International	— Circle 131														•
Guest Supply, Inc.	— Circle 98	•	•	•	•					•		•	•	•	•			•		•
Hamilton Beach	— Circle 99		•	•									•
Harbor Linen	— Circle 100			•						•			•		•
Hospitality Safe Corp.	— Circle 66	•	•	•	•	•	•	•	•	•	•	•	•	•	•	•	•	•	•	•
Hotel Technologies	— Circle 102	•	•						•
Inn-Phone	— Circle 132				•
Jarden Consumer Solutions	— Circle 103		•	•									•
Jerdon Products	— Circle 104			•									•
John Corby Limited	— Circle 139												•
Lancaster Colony Commercial	— Circle 133									•
LOC International	— Circle 134																	•
MicroFridge	— Circle 135															•	•	•
Mill Distributors, Inc.	— Circle 109		•	•						•			•		•	•	•	•
MiniBar Systems	— Circle 72															•	•	•
NBG	— Circle 136								•											•
Onity	— Circle 137						•											•
Pineapple Hospitality	— Circle 110	•	•	•										•	•					•
Phone Suite	— Circle 164				•
RoomConX	— Circle 112										•
Roomlinx	— Circle 75	•									•									•
Safemark Systems	— Circle 138																	•
Saflok	— Circle 77						•											•
Scheibe	— Circle 140																			•
S&D Coffee, Inc.	— Circle 141			•
The Sharper Image	— Circle 114	•	•		•				•			•				•
Starbucks Coffee Co.	— Circle 142			•
Star Linen & Hospitality Supply	— Circle 117	•	•	•						•			•	•	•		•
Sunbeam Hospitality	— Circle 118		•	•									•							•
Teledex	— Circle 79				•															•
TeleMatrix	— Circle 143				•															•
True Fitness	— Circle 144											•
USA Today	— Circle 145					•
VingCard Elsafe	— Circle 146						•											•
Vertical Systems, Inc.	— Circle 147										•
Westpoint Home	— Circle 121														•