Dennis Nessler - 10 Minutes News for Hoteliers - Page 2

2 min

Soft Brand Conversions: Using PIPs to reposition traditionally branded hotels

📌 The hospitality industry sees a trend of traditionally branded hotels converting to soft brands, driven by their ability to enhance bottom-line performance. Ashley Ewing Parrott, principal of AEP Consulting, observes that upscale and luxury independent and soft-branded hotels are outearning conventional brands. This shift offers owners flexibility and an easier transition due to pre-existing elements like social media presence and established branding. Charles Oswald, president/CEO of Aperture Hotels, notes the particular impact on historic properties, with soft brands facilitating inventory expansion for major brands due to less stringent standards.

3 min

Renovating Behind the Scenes: Back of House should be a major focus for owners conducting PIPs

🏠 Charles Oswald, CEO of Aperture Hotels, managed $19 million in property improvement plans (PIPs) last year. Aperture oversees 25 properties, focusing on data-driven back-of-house improvements. Tracking guest issues and equipment lifespans is critical for CapEx planning. Ashley Ewing Parrot, principal of AEP Consulting, highlights importance of back-of-house investments, suggesting cost-effective strategies. OTO Hotels & Resorts' president emphasizes cost control by working with trusted designers for brand-mandated PIPs. The Wayback, Pigeon Forge, a renovated hotel, exemplifies successful repositioning. Investing in back-of-house can potentially improve employee retention.

3 min

Choice Hits 500th Extended Stay Hotel Milestone With Everhome Suites Opening in Glendale, Arizona

🏠 Choice Hotels International celebrated the opening of its 500th extended-stay hotel, the Everhome Suites in Glendale, Arizona, marking a milestone for the brand developed in 2020. By the end of Q2 2024, Choice had nearly 400 hotels in the pipeline across its extended-stay brands, leading in the economy new construction category per August 2024 STR Pipeline Data. The Everhome Suites Glendale has 122 rooms and has experienced a sellout within four weeks of opening. Furthermore, Choice anticipates the WoodSpring Suites brand will reach 300 hotels in 12-18 months, with a forecast of 25 openings by year-end. Additionally, between January 1 and September 2024, 13 new MainStay Suites and Suburban Studios opened in various U.S. markets.

7 min

Fighting Back: Hotel Companies Leverage Technology, Advanced Training to Combat Cybercrime

🔒 Leading hospitality figures Paul Bushman (Crescent Hotels & Resorts), Keryn McNamara (Aimbridge Hospitality), and Jason Stead (Choice Hotels International) emphasize the heightened risk of cyberattacks in the hotel industry, citing social engineering and AI advancements as major concerns. Reports suggest up to 98% of cyberattacks involve social engineering, and 90% of data breaches target individuals for access to sensitive data. Companies are combating these threats through annual cybersecurity training, investment in tools like Managed Detection and Response systems, and maintaining compliance with PCI DSS and other security standards. Additionally, they emphasize the critical role of hotel personnel in defending against cyber threats, offering extensive training programs and emphasizing the importance of reporting suspicious activities. The consensus is that cyber controls in the lodging industry have significantly increased in the past 5-10 years.

3 min

Brittain Grows Management Footprint With Provident Partnership

🏨 Brittain Resorts & Hotels, launched in 1943 and based in Myrtle Beach, South Carolina, partnered with Provident Hotels & Resorts to manage eight Florida properties, including The Mutiny Hotel in Miami. The firm currently operates 30 United States hotels with over 4,000 rooms, suites, and condos, and about 40 restaurants & bars. Their in-house call center makes over a million calls annually, driving an 80 percent direct contribution rate to its independent assets.

2 min

Marriott’s Capuano Reflects During Fireside Chat at Lodging Conference

📌 Marriott International CEO Anthony Capuano, in a Fireside Chat at The Lodging Conference, reflected on his 30-year tenure and leading through crises. Capuano took over as CEO in 2021 amid COVID-19 and the passing of predecessor Arne Sorenson. Faced with dire liquidity concerns, Marriott questioned its survival. In August 2023, they responded to Maui wildfires, focusing on educational support. Capuano emphasized growth to satisfy customers and provide career opportunities, not just for expansion's sake. Nearly 3,000 people attended the event.

2 min

Economic ‘Uncertainty’ Is Prevailing Theme of Lodging Conference Keynote

📌 Economist Bernard Baumohl predicts a 'soft landing' for the U.S. economy but acknowledges uncertainty for the lodging industry. Factors influencing the economy include interest rate cuts, geopolitical issues, and the U.S. Presidential election. Consumer spending on lodging dipped in the second quarter of this year, marking the first decline since the pandemic. Despite this, Baumohl sees strong fundamentals in the lodging industry due to a robust job market and increased interest in travel. The outcome of the election could greatly impact economic conditions, with concerns about financial market reactions if Trump wins.

4 min

Hoteliers Tout Better Development Conditions, Extended Stay During Lodging Conference Opening Session

🏢 Vision Hospitality Group's Mitch Patel is optimistic about development, expecting 2-2.5% demand growth next 5-7 years, outpacing predicted 1% supply increase. Construction costs have stabilized, encouraging development, according to Julie Richter of Concord Hospitality. Starwood's Ben Rosenbaum indicates market limitations, with RevPAR not supporting new development costs. Business travel recovery has improved but might not reach pre-COVID levels, with Dave Pollin of The Buccini/Pollin Group estimating 85% recovery. Extended-stay market received a lift between 2020-2022, but recent months saw a 2-3% RevPAR decrease in the economy segment. Despite this, long-term demand for the new extended-stay supply is expected to be sufficient.

4 min

Provident Proves Value and Growth Potential of Extended Stay America Brand in Extended Stay Landscape

📌 Provident Realty Advisors, led by Managing Director Mason Miller, entered the extended-stay hotel market by purchasing 16 hotels from Extended Stay America (ESA) in 2018, later converting seven and currently building two ESA Premier Suites. One upcoming Premier Suites is a 115-room hotel in Schertz, TX, slated to open by year-end. Their ESA properties consistently exceed 80% occupancy, and recent conversions have increased occupancy and reduced operating expenses. Provident focuses on Texas for development, where 5 of the 10 fastest-growing markets in the U.S. are located.

2 min

Records Highs Highlight Kick-Off of Lodging Conference

🌍 The 29th annual Lodging Conference gathers nearly 3,000 hotel execs at JW Marriott Desert Ridge, Phoenix, with record attendance and temperatures. Sold out, the conference hosts a mix of industry professionals, including owners, operators, and CEOs. The event, now the world's largest finance and development conference, reflects optimism in the hotel industry and a resurgence in group travel. Educational sessions feature top economists and CEOs, and Sheila Johnson will receive the Peggy Berg Castell award.

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