hotels articles

In an effort to tap into the rapidly expanding Indian gaming market, Luxe Worldwide Hotels LLC has signed an agreement with the National Indian Business Association to form Native American Hotels and Resorts.

The entity proposes to link member tribal hotels to a global reservation system in exchange for a monthly $300 fee, plus $12 per booking. The service would also collect 10 percent of room revenue from group bookings of 10 or more people.

Of the 102 luxury hotels built by Native American tribes across the U.S., with a total of more than 18,000 rooms, fewer than 20 percent are affiliated with a national brand.

“They realize they are behind in that area now and they realize there is an incredible potential they are missing out on,” said Efrem Harkham, president and chief executive of L.A.-based Luxe. “They are independent and they want to retain their identity. That’s what the majority of what our members want. That’s why they don’t join the large companies.”

No hotels have yet joined the system, but Harkham was confident the imprimatur of the National Indian Business Association would smooth the process.

Carl Winston, director of the hospitality and tourism management program at San Diego State University, said that while most casino hotels in Las Vegas or Atlantic, N.J. are busy all week long, tribal-owned hotels tend to fill up only on weekends and holidays because they don’t book conventions.

“Right now many of them are operated as independents and they don’t get a lot of attention from the traditional media,” said Bruce Baltin, senior vice president of PKF Consulting. “They are having trouble establishing themselves as credible hotels when they really are.”

Luxe Worldwide, which owns the Luxe Rodeo and the Luxe Sunset hotels, has grown its referral network to hundreds of boutique hotel properties, most having fewer than 200 rooms, stretching from the United States, Europe, Asia and Australia.

“It’s a different market than their boutique hotel market, but linking these things up and having a national reservations system is a good idea,” Baltin said.

Winston is not as convinced Luxe’s gamble will pay off. San Diego County is home to four tribal-owned casinos, one of the highest concentrations in the country. Winston said each hotel is different, and establishing a brand would be difficult.

“The notion of creating brands within those is certainly something I would question,” he said. “When you stay at a Hilton you know about what to expect, but with these hotels there’s a consistency issue and a trust issue.”

At the same time, not having a nationally branded hotel can be advantageous to tribes, by keeping their costs down and allowing them more flexibility in offering cultural programs.

“To be a Hyatt or Hilton you have to go by a number of brand standards that may not be palatable to a tribe,’ said Sean Hennessey, director of the hospitality consulting practice of PricewaterhouseCoopers. “That level of uniformity, desirable for some companies, may not fit with what the Native American facilities are trying to accomplish.”

Between US corporations cutting way back on international travel and airlines culling their flights between the US and the rest of the hemisphere, the number of business travelers going from the US to Latin America and the Caribbean has dropped dramatically. That’s difficult news for a company like InterContinental Hotels Group, whose InterContinental, Crowne Plaza and Holiday Inn brands have made their name in Latin America by catering to international business travelers.

The US before 9/11 represented something like 60 percent of our business [in the region]. Now it’s around 32 percent,” says Alvaro Diago, ICH’s Miami-based area president of Latin America. ICH has responded by turning to a growing segment–business travelers within the region–catering to them by emphasizing the growth of its mid-scale brands, building hotels in secondary business markets, and lowering rates at its more upscale properties.

Although the InterContinental brand hotels are iconic properties in the capitals of Latin America, it is the Holiday Inn brand, and a new introduction to Latin America: the extended-stay Staybridge Suites, that Diago is most bullish about expanding. “The mid-scale brand is the one that actually is more suited for growth in this market, especially when it comes to rates,” he says. “And the cost to build one of these hotels is in the neighborhood of 50 or 60 percent less than what it would cost to build an InterContinental, so the rate of returns that we see … is just wonderful.” With 44 hotels in the region now, and 14 new ones in the pipeline, Diago expects to hit 50 hotels in 2004, and 60 by 2006.

Much of the growth will come in Brazil, where the company will soon open a 780-room Holiday Inn and the first Staybridge outside North America, both in Sao Paulo. “The capacity of Brazil, its sheer size as a market, its high level of regional travel, the many cities one would consider business centers… There is a demand for a new generation of hotels,” says Diago. He plans to keep growth in the region measured, in order to keep tight control over quality standards, for everything from room size to amenities to security.And, when the corporate market in the US comes back, ICH will be well-positioned to take advantage of it. From his offices inside the downtown Miami InterContinental, Diago and his team maintain relationships with the US corporations that once sent the company most of its Latin American business. From there he keeps in contact with Latin American customers, too, many of whom have businesses, bank accounts or investments in South Florida. “So, we’re standing on a platform that has the opportunity to interact with the decision makers,” he says, “Those who decide where the corporations actually put their people.”

Spend the night on campus right in the heart of Oklahoma State University. The Atherton Hotel offers guests a boutique lodging experience.

Visit Stillwater, Oklahoma’s Atherton hotel, and you’ll feel as spry as a freshman on the first day of class.

“We occasionally have travelers who walk in here with scowls on their faces,” says general manager Jim Barnard. “They’ve been on the road a long time, or they’ve lost their luggage. They’re just upset about something.” In these cases, Jim offers simple advice: “I tell them, ‘Park your bags, throw some water on your face, and walk around campus for a little while.’ You would be amazed at how they all come back rejuvenated.”

Rejuvenation is the order of the day around here considering that the last major face-lift of this 1950s property took place in the mid-198Os. It had begun to get a little tired itself, but that changed dramatically with its $6-million renovation in 2002.

Sleeping in the Classroom

Upon check-in, you’ll be greeted by young faces, eager to be at your service. The hotel is an extension of OSU’s School of hotel and Restaurant Administration, a teaching laboratory for students working through the program. A full-time manager is always on duty, but for the most part, you’ll be ushered through your stay by a student.

Business-Friendly Boutique

Without a doubt, the focal point in each of the hotel’s 81 rooms is the luxurious and fluffy bed. Once you’ve hopped a little to get on it (no kidding, each is tall because of all the bedding), you won’t lie down as much as you’ll sink into it. You’re sure to stay snug beneath the down comforter and 400thread count sheets. The luxury extends to the amenities, including robes, a DVD player, and high-speed Internet access. One thing to be aware of is that some of the rooms are small and have tight turnarounds.

A Meal on Campus

The Atherton also offers lunch Monday through Friday and dinner Thursday through Saturday at its restaurant, The Ranchers Club, which just opened in October. This, too, is a teaching laboratory managed and operated by students. The upscale steak house’s menu, created by executive chef Ben Coffin, offers steaks, burgers, and pork tenderloin among its entrées (prices range $7-$ 15 lunch, $20-$40 dinner). Before you leave, try Pistol Pete’s Pecan Ball ($3), which is vanilla ice cream rolled in pecans and covered in fudge sauce. It’s a tradition as old as the hotel itself.

Even if you don’t do anything else during your stay, you must take Jim up on his advice. It’s true-there’s a contagious, revitalizing energy that floats through campus. TANNER c. LATHAM

The Atherton hotel at OSU: H103 Student Union, Stillwater, OK 74078; (405) 744-6835 or www.athertonhotelatosu. com. Rates: start at $93.95. Note: Keep in mind that availability will be limited when the OSU football team plays at home. (They have home games October 29 and November 12.)

Dallas-based hotel operator Wyndham International, Inc. recently sold its Mayfair Hotel in St. Louis to a Black-owned enterprise led by St. Louis businessmen Michael V. Roberts and Steven C. Roberts.

Under the purchase agreement, the Mayfair will remain in Wyndham’s portfolio through a 10-year management contract with the new owner, Roberts Mayfair Hotel, LLC. The deal marks Wyndham’s first partnership with a minority owner.

Located in downtown St. Louis, the 182-room Mayfair has more than 5,000 square feet of meeting space and features a swimming pool, a fitness center and restaurant. The hotel, which opened in 1925, unveiled the first rooftop swimming pool in 1961.

Founded by Michael V. Roberts and Steven C. Roberts, the Roberts Companies, a multi-faceted enterprise, is regarded as one of the top Black-owned businesses in the United States. The Roberts Companies comprises an aviation company, television broadcasting properties, a wireless communications company, real estate development entities, a construction management firm and most recently, Roberts Hotels, LLC, which will be the managing member of Roberts Mayfair Hotel, LLC.

Holiday Inn Express is no stranger to the value-conscious business traveler who spends a lot of time on the highway. Since its launch in 1991, it has opened 1,500-plus properties worldwide (most along major roadways or near airports), offering modern and dependably clean rooms and free Express Start continental breakfasts for an average rate of just $60 to $90 per night.

Not resting on its laurels, the chain has been adding new features since 2003, from hot cinnamon rolls for breakfast to the SimplySmart shower, featuring a new proprietary Kohler shower head, thicker towels, shower curtains with curved rods (adding 25 percent more showering space) and an upgraded line of bathroom amenities. Guests also enjoy free high-speed internet access and local calls, as well as the ability to earn points in the Priority Club Rewards frequent-stay program. For reservations, call (800) HOLIDAY, or see www.hiexpress.com.

IRLINE INDUSTRY INFORMATION-(C)1997-2003 M2 COMMUNICATIONS LTDScandinavian airline group SAS is reportedly considering a divestment of its hotels unit.

The group’s chief executive Jorgen Lindegaard said that any sale or listing of the Rezidor hotel business would only be made when the equity markets have improved.

SAS is currently operating at a loss and has been divesting non-core operations and cutting costs in an effort to return to profit next year.

SYRACUSE - Scottrade, a national firm that serves individual investors through offices and the Internet, is opening its first Syracuse location on May 17.

The Missouri-based company operates offices in Buffalo, Rochester, and Albany, and it has been aggressively opening new offices - at a rate of two or three per month, says Kelly Doria, Scottrade’s media-relations director. The Syracuse office is 1,700 square feet.

“Scottrade is excited to open a Syracuse office, because we have many clients who work and live in that area,” says Rodger Riney, Scottrade’s president. “We feel this new office is extremely important to customers a convenient office which to do business.”

The new office will be located at the State Tower Building, 109 S. Warren St., Suite 01A. The branch is open from 8:30 a.m. to 5 p.m. and will be managed by George Flevares. Flevares had been a broker in the Rochester office for the past three years, Doria says.

The company does not disclose how much money it invests in an office when it moves to a new market, Doria says, nor does it disclose terms of its lease.

Scottrade, has plans for additional expansion in New York, Riney says. In New York, Scottrade also has offices in White Plains, Manhattan, Islandia, Garden City, Forest Hills, and Brooklyn. After Syracuse, Scottrade’s next New York office will be opened in New City, Rockland County.

Established in 1980, Scottrade (formerly Scottsdale Securities, Inc.) is a leader in online investing and is currently ranked. highest in Investor Satisfaction with Online Trading Services by J.D. Power and Associates. The September 2003 announcement was the fourth consecutive year Scottrade has received the honor.

The firm serves individual investors who are comfortable making their own investment decisions. Scottrade says it boasts very low commission rates while offering easily accessible, local branch office support of online trading in 211 locations nationwide.

Scottrade.com is the online trading site of Scottrade and offers customers the ability to place market orders online for just $7 per trade. The company is based in Des Peres, Missouri, has 700 employees, and generates annual revenues of about $200 million.

Ritz-Carlton Hotel Co is expanding to Beijing and Tokyo under a plan to almost double the number of hotels it manages in Asia.

The luxury chain owned by Marriott International, the largest US hotel company, will sign a contract before the end of July to manage a hotel that is due to be built in Tokyo, according to Mark Lettenbichler, the chain’s area general manager in Hong Kong.

It also expects to conclude a deal in September to manage a hotel that will open in Beijing by 2005.

The company’s plans suggest Asia’s tourism industry is resuming its growth track after the devastation caused by a three-month SARS epidemic that drove visitors away and slashed hotel occupancy to as little as a tenth.

Six Continents and Starwood Hotels and Resorts Worldwide are among other hotel operators that plan to expand in the region.

Moving on

Robert Hecker, a director at Horwath Asia Pacific in Singapore, which advises hotel developers and owners on investment projects, says the industry is moving on. “Now that we’ve got SARS behind us, tourism will go back to the growth track it was on before,” he said.

Beijing is a top target for hotel companies because the city will host the 2008 Olympic Games. The World Tourism Organization predicts China will become the world’s top destination by 2020, passing the current top four–France, Spain, the US and Italy.

Ritz-Carlton, which Marriott bought in 1995, has 54 hotels worldwide and operates in seven Asian cities, including Osaka, Singapore and Hong Kong. It plans to raise that number to 12 by 2007, says Lettenbichler.

“We see some great potential throughout the region,” he says, adding that Asia is one of the top priorities for the chain as far as expansion is concerned.

Optimism

Other hotel groups are also optimistic about Asia.

Six Continents, owner of the Inter-Continental and Holiday Inn hotels, plans to add 25 hotels in Asia in two years. Starwood, the world’s biggest hotel operator, said in November it plans to triple its hotels in China to about 45 in the next three years. Business travellers, who normally comprise about 65 per cent of Ritz-Carlton’s Asian hotel guests, steered clear of cities such as Hong Kong and Singapore during the SARS outbreak, but this was now beginning to recover, Lettenbichler says.

The Hilton Silo Paulo Morumbi blankets its guests in all the comforts of a luxury lodging, so LATIN TRADE readers selected it as the top business hotel by a wide margin. The outstanding quality of the hotel and its service were frequently cited, as well as its convenient location in the CENU business complex–the heart of the new Morumbi business district–and just 35 kilometers from the Guarulhos International Airport. The hotel sits next to the main offices of several international companies and beside the World Trade Center of Silo Paulo, a major meeting and convention center.

With 485 large guest rooms, the Hilton offers five executive floors with additional services geared toward businesspeople. Those include eight relaxation rooms with spa services, a lounge with complimentary breakfast, and snacks and guest rooms with high-speed Internet connections, dual phone lines, fax service and DVD players. Additionally, the hotel has 14 meeting rooms, a health club, two bars and two restaurants. [55] (11) 6845-0000. www.saopaulomorumbi.hilton.com

Best Business Hotel Runner-Up: Mexico City Four Seasons

Tied for the No.1 spot in last year’s survey, this beautiful complex from its Spanish-colonial decor to its patio fountain serves as an elegant haven for business travelers. Ideally located on the Paseo de la Reforma, in the heart of the city, this hotel is both a good spot to conduct business meetings and a calming place to unwind after a long day of negotiations. Characteristic of the Four Seasons hotels, this inn boasts a long roster of amenities, among them tfigh speed Internet connections, in room fax machines and voicemail, dual phone lines in every guest room and 24-hour-a-day business support services. The hotel’s business center is one of the biggest and best equipped in the Mexican capital; the hotel has 15 meeting rooms, cutting-edge audiovisual equipment and video conferencing. [52] (55) 5230-1809.

Tourists have flocked to Argentina and its devalued currency to take advantage of suddenly cheap, world-class shopping and atmosphere. Now, business meetings are following suit. A bevy of hotel deals worth millions of dollars has pumped up the construction sector in Buenos Aires and elsewhere in the country, and resorts are not missing the chance to cash in.

Argentine hotel conference rooms can cost a fraction of what they do in neighboring countries. In Chile, a conference room for 50 people can cost as high as US$1,700 for three days; in Brazil, the same service costs $1,200. In Argentina, a conference room for 50 people can go for $250 at a luxury hotel. If enough participants are slaying at the hotel, the room often goes for free.

Even domestic hotels are positioning themselves as cheaper alternatives for business travelers, according to Jose “Pepe” Crespo, director of the El Corazon de la Bahia resort located in Villa La Angostura, a lakefront resort nestled in the Argentine Andes.

“The objective is to reach the boards of companies looking to concentrate on paradise-style places to develop small, high-end strategy meetings,” says Crespo. In 2003 Crespo opened the Centre de Relax Patagonico gym facility at his resort in a move to further lure business tourists to conduct meetings and enjoy nature at the same time. “We are planning a series of seminars that focus on CEOs that are dedicated to sailing along the Nahuel Huapi lake” he says. According to Crespo, prices for services such as his average 20% lower than other destinations in the region.

Rates aside, businesses have found that they can also count on modern hotel infrastructure that sprang up in the 1990s, when the Argentine peso was pegged one-to-one with the U.S. dollar. Today, the U.S. greenback has strengthened almost three-fold to the peso in wake of the 2001 devaluation, and that translates into discount hotel fares for businesses looking for premium hotel facilities in Argentina.

The U.S. hotel operator Crown has begun construction on two hotels in the mountainous province of Rio Negro and more projects are on the way. Meanwhile, Argentine development firm Conevial Constructora e Inversora has earmarked $12 million to build three new luxurious eco-lodges, and the search is on for investors to get those projects off the ground. These units will house 35 guests each and will go up across the country. The first unit will be developed in the north in Misiones. The second will open in the Quebrada de Humahuaca, in northern Argentina’s Jujuy province, and the third will be in the province of Santa Cruz, in southern Patagonia.

All three hotels will open in 2005, says Cecilia Bibiloni, who is in charge of the Conevial projects, adding that the hotels will be named “Samana Huasi,” which means “week of rest” in an indigenous language in Argentina. According to Bibiloni, the eco-lodges will target high end tourists, those willing Lo spend $500 dollars a night. Potential customers will include those from eco-tourist markets in Germany, Canada, the United States. Japan and Australia.

The Orion Asociados development company, meanwhile, has launched construction of two boutique-style hotels with 50 rooms each in the cities of Puerto Madryn in Chubut, and El Calafate in Santa Cruz. The two hotels will cost $2.6 million each to develop. The company is looking for local investors to finance the project, says Orion Asociados President Mario Koehler. The investment floor is set at $100,000 per investor, Kochler says. The first hotel, located in Madryn, will open its doors at the beginning of the 2005; the one in El Calafate will open in October of the same year. According to Koehler, the real estate costs in Argentina have become cheaper. He pointed out that building a similar hotel in Chile would cost double what it would in Argentina.

In Buenos Aires, the words “no vacancy” have become common at the Sheraton Park Tower and at tim Buenos Aires Sheraton, home to a combined 1,000 rooms. The hotels’ public relations manager Cecilia Bauza says that while the number of foreign travelers rebounded after 2001, local residents also checked in more, as the economic crisis forced many Argentines to take their vacations in the country rather than abroad.

Business travel, meanwhile, continues to rise in the capital. Bauza says that a convention on sexual impotence will take place at the two Sheratons in October 2004. Business meetings reservations run through 2007, she says.

CRISTINA KROLL BUENOS AIRES