The Sheraton San Diego Hotel & Marina recently unveiled a FedEx Office business center and last week the Chicago Hilton followed suit. They became FedEx's 24^th and 25^th on-site hotel locations and the company is looking to expand even more in the lodging industry.

The Renaissance Chicago was FedEx's first hotel location in 1994, and the company has added a steady stream since. The numbers jumped last year with nine new hotel locations and John Duessel, FedEx Office's managing director of hospitality operations, expects about the same this year.

Marriott-branded hotels make up more than half of FedEx's locations with 13, followed by Hilton with four and Hyatt and Sheraton with three apiece. Duessel believes FedEx Office business centers are best fit in large full-service hotels, ideally located near a convention center, but even smaller hotels are being targeted.

Duessel took some time recently to explain how FedEx Office works within a hotel.

How big of a piece is the lodging industry to FedEx Office’s business?

It is definitely a focus…A renewed focus. We’re definitely focusing on expanding in this space….2008 was a great year, ’09 should be very strong.

How does a FedEx Office business center work in a hotel?

It has the full set of capabilities as a regular store, just shrunk down to a smaller box. Typically we step in and replace the entire business center operation. We offer computer rental, computers and Internet access, copiers, fax machines. We have regular operating hours—everything you’d have in a traditional office.

How does staffing work?

It really depends location and size for staffing. It's usually anywhere from three to four and hours vary by property. And we can tailor those to meet the needs at the property, around large events. With 1,800 centers in the U.S., we can draw from those to help with extended hours if there's a big event at hotel or nearby convention center.

What types of hotels are you the best fit?

We’re in primarily full-service hotels, most are convention oriented. They don't have to be, but we prioritize those because they're the best opportunity. We've typically gone after larger hotels, but are looking at opportunities to move into smaller hotels.

How has the economy and downturn in this industry affected FedEx Office?

In the short term we've seen some economic impact, but we also see more opportunity as well. Hotels are looking to outsource non-core functions, which makes our expansion path a little easier. We've got a killer value proposition that is resonating with hotels, but we've all suffered from the economy.