ipulseSEEKING VALUE

Importance in driving guestvalue for the Americas

1 I Adequacy of room lightingI Internet access

31 Comfort of bed and furnitureI Room cleanliness

Source: Market Matrix Hospitality Index

SEE PAGE 12 FOR MORE SATISFACTION TRFNDS

By Stacey HigginsCONTRIBUTING EDITOR

NATIONAL REPORT - Sustainability. It's no longerconsidered a passing fad in the hotel industry, butit has many faces and names. The current challengefor hospitality is not so much willingness to adoptsustainable practices, but to come to an agreementon establishing, reporting and meeting standards.

Many global hotel brand companies have estab-lished extensive programs with internal and externalsustainability standards for their franchisees, operators

Hotel bedding get;a modern twist ,While the white duvet is here to stay, ne\headboards, shapes, colors and textilesare making for a new breed of hotel ^sbeds. We take a look at how designare Interpreting the latest trends in tguestroom bed experience.

' ISpecial Report begins on page 28.

Aulani, a Disney Resort & Spa in Ko Olina, Hawaii,received LEED Silver certification.

and suppliers. Several have built proprietary programsaround existing benchmarking programsamongthem are Hilton Worldwide and IntercontinentalHotels Group.

Randy Gaines, VP of engineering, housekeep-ing and laundry operations, Americas, for HiltonWorldwide, said the company has standardized its

See Sustainabiiity I page 36

in

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H newsIN THE HEADLINES6 Carlson Rezidor's new brands

departments8 Value Place COO on extended stay

14 Hilton Worldwide's Bill Fortier

1 6 Hotel Brokers Survey2 8 Bedding trends

2 6 Bathroom vanities

3 2 Transaction pace set to jump in 2014

4 0 Success in Berlin

4 Up Front I Stephanie Ricca1 0 Sales Clinic I Howard Feiertag1 0 Legal Q/AI Greg Duff, Ruth Walters, Rob Schnitz1 2 SatisfactionTrendsl JonH. Black1 2 Training Trends I Mark Boccia, Gary Whitney1 3 Tech Watch 1 Frank Wolfe4 2 Ad/Editorial Index4 2 Marketplace4 4 Classifieds5 0 Sightings

HonlineIHIF Berlin roundupIn the need of a look back at the IHIF Berlin show?Search "Berlin" on HotelManagement.net

Let's talk on FacebookOk, you love our print magazine. So let's take the conversation from offline to online. Join uson our Facebook page for lively discussion on all things hotel related.Go to www.facebook.com/HotelMgmt and like usi

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o UP FRONT April 7, 2014 I HotelManagement.net

To buy or to sell? Ask a hotel broker

By Stephanie RiccaEDITOR IN CHEF

I n the hotel business a lot of attention is paid to interpretingthat feeling of hospitality, of genuine warmth and welcome.Some argue that people have the ability to execute naturalhospitality or they don't; others say it can be trained into aperson, like you train someone to use a computer program.

We all have seen the value that innate feeling of hospitalitylends to the hotel experience. Taking it one step further,we've also seen different organizations like Market Metrixand J.D. Power & Associates quantify that feeling with data,through customer service or guest satisfaction survey trends.Our industry is one that values two different ends of thespectrumthe happy, warm, fuzzy feeling of welcome, andthe "just the facts, ma'am" world of data.

You might assume that the lines drawn between these two

All work and no play?Members of the Questex Hospitality + Travelteam headed to Napa Valley, Calif., to attendits 2014 HOTEC Operations & Technologyevent at the Meritage Resort & Spa. The eventpairs hospitality buyers with suppliers in aseries of one-on-one meetings and networkingactivities. Shown here are director of businessdevelopment Cynthia Zucker; event directorNick Diligente; and David Eisen, managing editorof Hotel Management and Hotel Design. Andno, they don't dress like this every day; they dugout their best '80s gear for this year's HOTECnetworking party.

ends of the spectrum are clear: Designers deal exclusively inthat warm, fuzzy feeling, while owners sit firmly on the "justthe facts, ma'am" side of the fence. Truth is, that assumptioncouldn't be further from the truth. Everyone gets in everyoneelse's business these days, and the most intuitive hoteliersare those who can see and use the data and the feeling inmutually beneficial ways.

Believe it or not, the folks I run into who seem to havethat balanced intuition most often are brokers. Yes, brokers.The men and women who talk endlessly about cap rates andmezzanine financing. You might think this group cares onlyabout how a deal pencils out on paper, but in truth, brokersconsider a lot of factors as they work on transactions forbuyers and sellers, so I learn a lot when I talk to them aboutfinancing and consumer trends. Ask a group of brokersabout a certain market, for example, or a segment or brandof hotels, and they have precise data that factors in to theway they value that property, on that day, in that place. Andit's more than just numbers. I've had conversations withbrokers who mention deals and talk about how much guestsatisfaction or brand design standards factor in at the end ofthe day.

In this issue we present our annual brokers survey (page16), and it too is mote than just numbers. We ask a lot ofsentiment questions in this survey and we get a lot of brokerswilling to talk openly about their forecasts.

The biggest change in this year's brokers survey comesfrom one of those sentiment questions. This year, themajority (61 percent) of participating brokers said 2014 is agreat time to sell a hotel. Last year at this time, the majorityof respondents were almost exactly flip-flopped on the side ofbuying hotels.

What does that mean for the overall hotel industry in2014? I suggest asking a broker. And while you're at it, goahead and hug a broker today, too. CE]

sricca@questex.com

EDITORIAL757 Tliird Ave., New York, NY 10017

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Contributing EditorJena Tesse FoxjfoxenuesteuoiTl \ (212) 895-8287

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czucliemqmlex.com \ (32) B45-

Turn a standard htestay into a special one75% of guests feel more favorable about a hotel because ofthe Keurig^ in-room brewing system!

o fD

II

April 7, 2014 I HotelManagement.net

Carlson branches out into lifestyleseiect and iuxury affiliation segmentsINTERNATIONAL REPORT - Garl-son Rezidor Hotel Group isthe latest global hotel brandto jump into the most attrac-tive development segments as oflatelifestyle select-service andluxury white-label affiliation col-lections. Carlson launched bothnew brands at its global Radis-son brand conference in Febru-ary, both to address what compa-ny leadership called gaps in thecurrent portfolio.

The new Radisson Red brand,described by corporate leadershipas a design-forward "lifestyleselect" brand, will join the com-pany's Radisson and RadissonBlu family of brands. The upscaleselect-semce Radisson Red prop-erties will focus on good designand smart technology integrationsthroughout the property. Hotelswill have mobile check-in, andamenities will include a bar anda deli. The brand will launch in2015 in urban gateway cities inthe Americas, Europe, the MiddleEast, Africa and Asia Pacific.

The brand will follow a new-build strategy in the Americasand Asia Pacific to begin with, acompany spokesman said, whileRed-branded hotels in EMEAmost likely will be conversions.

On the other end of thespectrum, the company's newQuorvus Collection will be anaffiliation brand for luxury inde-pendent hotels around the world.

Carlson has identifiedhigh-end historic properties,contemporary residences, classicboutiques and urban locations

Guests at Radisson Red hotels will be able to bypass the front desk by using a mobile app that allows for check-in,drink and food orders, service orders and setting guestroom preferences.

that fall into this category; the firstQorvus members are expected tobe announced by later this year.

"We are changing ourbrands into a much more com-petitive landscape," said ThorstenKirschke, president of the AsiaPacific region for Carlson RezidorHotel Group. "We want to

provide our partners around theworld with better tools and teamsto approach new challenges."

Carlson Rezidor Hotel Grouphas more than 1,340 hotels inoperation and under develop-ment in 105 countries. Its anchorbrands are Radisson and CountryInns & Suites. At the end of 2013

the company had 155 Radissonsopen worldwide and 27 underdevelopment, and 473 CountryInns & Suites open and 47 underdevelopment. In 2013 CountryInns & Suites launched the firstcompletely new product redesignin its 25-year history. CEII

hm@questex.com

PEOPLE ON THE M0\

Wyndbam HotelGroup CEO cbanges:Geoff Ballotti, presidentand CEO of WyndhamWorldwide's timesharedivision, is replacing EricDanziger as president andCEO of Wyndham HotelGroup. Ballotti joinedthe company in 2008 aspresident and CEO ofWyndham Exchange &Rentals following a 20-year career at StarwoodHotels and ResortsWorldwide.

Kirscbke's new role atCarlson Rezidor: Formerpresident of the Americasregion for Carlson RezidorHotel Group, ThorstenKirschke now replacesSimon Barlow as presidentof the company's AsiaPacific region. Kirschkejoined Carlson in 2009from his role as EVP andCOO of the Brussels-based Rezidor HotelGroup.

Top moves at America'sBest Franchising:America's BestFranchising namedSterling StoudenmireIV as president andCEO, succeeding DougCollins. ABF's brandsinclude Jameson Innand Budgeted Inns &Suites. Most recentlyStoudenmire was CEO ofIsland One Resorts. CEI

Which channels get the majority of your city's business?TravelClick forecasts that onlinebooking channelsonline travel agents,hotel websites and global distributionsystemswill continue to see year-over-year growth in 2014, continuing 2013trends.

Still, business booked via CRO andhotel direct channels remains significant,according to TravelClick. The companyrecently broke out the top five citiesreceiving the largest share of bookingsby channel in the fourth quarter of 2013.

Top five cities by transient cbannel segment, Q4 2013

Brand.com

Washington, DC

San Diego

Tampa

Seattle

San Antonio

31.6%

30.7%

29.8%

29.5%

28.0%

Hotel Direct

Honolulu

Indianapolis

Orlando

Miami

Detroit

58.7%

34.7%

31.3%

30.5%

29.4%

CROSan Francisco

San Antonio

San Diego

Washington, DC

Chicago

18.0%

17.9%

17.0%

18.6%

16.2%

GDSHouston

Charlotte

Phoenix

Seattle

Dallas

25.7%

23.0%

22.7%

22.7%

22.6%

OTAOrlando

New York

San Diego

Miami

Toronto

Source:

18.8%

18.5%

18.4%

17.4%

16.6%

TravelClici

breathe in ournew world

Modern in outlook and confident in itselfRadisson continues to move forward and build on its strengths. Experience the new world of Radissontoday, offering forward-thinking, creative hotel options that are socially responsible and deliver exceptionalVes / Can.'^ '^ service. Building today for tomorrow, Radisson has re-imagined the guest experience withthe launch of programs like the Radisson iConcierge mobile app and Check-in Choice. Our Spread theLove charitable program allows us to connect with local as well as global communities, and our signatureMeetings Success program delivers exceptional meetings and events.

To find out more call 1-800-336-3301 or email development@carlsonrezidor.com

CARLSONREZIDORH O T E L G R O U P

park irm cquhjRY

2014 Radisson. H rights reserved.

April 7, 2014 I HotelManagement.net

EXTENDED STAY

Value Place COO talks company developmentsBy David EisenMANAGING EDITOR

Los ANGELES - While Val-ue Place chairman and extend-ed-stay hotel legend Jack DeBo-er was busy accepting a LifetimeAchievement Award at the Amer-icas Lodging Investment Sum-mit in January, the economy ex-tended-stay brand's president andCOO was busy too, talking upthe value of Value Place, its newdesign prototype, its revenuemodel and expansion.

Kyle Rogg, who joined thecompany in 2011 as presidentand COO, said he's bullish onthe economy extended-stayspace, particularly because it'san attractive product, he said,for franchisees. This is due toprofitable margins boosted by aleaner operational model (mostValue Place properties employ amere five full-time employees andhousekeeping is performed everyother week).

"It's not a tough sell for a fran-chisee. It's financially sophisticatedand an easy product," Rogg said.

Investors have taken notice. InJanuary 2013, Value Place secureda $100-million capital investmentfrom Lindsay Goldberg, a private-equity firm with $10 billion of

total capital under management.Later in October, Value Place

announced expansion plans inSouth Florida and Atlanta.

Currently there are 186 ValuePlaces open in 32 states, 74 ofwhich are company owned. Anddon't expect Value Place to lookto sell off its owned assets, asother hotel companies with anasset-light approach have done inrecent years. "We see that 2:1 ratiocontinuing," Rogg said.

In order to continue growth.Value Place recently hired RonBurgett, the former head of fran-chise development at Red LionHotels, as its new EVP of franchisedevelopment.

THE FUTUREValue Place's entire model isbased on priceand they are finewith that. It's a cheap lodging op-tion, used particularly by blue-collar types, road warriors on atight budget and worker crewsthat might be on ajob for a while.As such, it prices weekly, not dai-ly, with rates beginning as low as$219 per week.

As Rogg and Burgen said, "Weare interested in AWR [averageweekly rate], rather than ADR[average daily rate and industry

fundamental norm]."Value Place's value proposition

is based on a clean and safe product(they take safety so seriously thatguests are subject to backgroundchecks).

Rogg also said the brand hasa new design protot)'pe called2.1, which is about better energymanagement, such as more effi-

cient PTACs. He said the newprototype can save franchisees asmuch as 30 percent in costs. Thefirst property to open using this2.1 design was the Value Place inAlpharetta, Ga.

Burgett said the average lengthof stay at a Value Place is 33 days.Currently, Wi-Fi is not free andcosts $9.95 per week. The brand

is 100-percent new construction.On financing new builds,

Rogg said financial institutionsstill need better understandingof the product and the space as awhole. "The banks have to under-stand the model before they like it.You can do clean and safe [at a lowprice point]," Rogg said. HH

deisen@questex.com

hv the numhersGreater job creationU.S. employers are expected to add 2.7million jobs to the hotel industry in 2014, again of 2.0 percent.

Fifth year of growthIncreased hotei volume is resulting in a rise ofnationwide occupancy 90 base points to 63.2percent in 2014.

Room revenue upA 4.8-percent increase in ADR will be theprimary impetus for a 7.3-percent rise innationwide room revenue during the year.

CONSTRUCTIONNew supply comingA growing construction pipeline will influenceinvestment decisions throughout 2014 as theconstruction cycle shifts into a higher gear.

Source: Marcus & Millichap

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April 7, 2014 I HotelManagement.net

Hotel sales people need to be not just good, but great

By Howard FeiertagHM COLUMNIST

T here are many things that go intomaking a hotel sales person great.Sometimes we will hear somebodysay: "That person is a born sales person."We probably do not believe that is entirelytrue. Energy, looks, motivation, personal-ityall of these help. Whether or not

someone has the right genes for the job,there are many opportunities for someoneto make themselves great in the businessof hotel sales.

Here are some areas that are veryimportant in improving a person's abilityto become great in our business of sellingfor hotels and resorts. A little practicein each of these areas will significantlyincrease a person's ability to make a sale:

Listen - Listening more and talkingless makes one appear intelligent. Just asksome good, key questions, and keep qtiietuntil it's your turn to talk again. Anddon't oversell. Silence sometimes can bea powerful tool. Learn to let them do thetalking.

Features/Benetits - It's okayto discuss features of your property,provided they can be discussed as abenefit or value to a prospect. Tliere isno point in bragging about parking for500 cars if everyone in a group will beflying in. Knowing a prospect's needs,and applying benefits and advantages as a

result of your features, is what works. Looks and Answers - You can create

a good or bad image by your looks, yourvoice and your ability to communicateeffectively. People make instant deductionsfrom what they see. How you appearupon contact with a prospect should bea prime consideration. An energetic andenthusiastic tone of voice is an importantattribute of good sales people. Andknowing what to say and how to say it isanother skill that they acquire.

Motivation - Great sales people areusually great motivators of others. Inthe business of selling, it is important tomotivate the prospect to do the buying.Learn how to encourage the prospectivebuyer to make the buy.

See and Be Seen - Sales peopleneed to get out and be visible in thebusiness community. Be active and joingroups, give talks to groups, be quotedin the newspapers and be sure to be seenat important business events. Peoplelike to do business with people who are

well-known. Be a Good Communicator - Learn

to be articulate, and use proper grammar.Avoid using slang expressions. Get ridof the bad habits of repeatedly saying:"ummmmm", "ya know", "like", etc.Good speaking habits add strength toyour sales position.

Know Your Stuff - You musthave knowledge, not only of your ownproperty, but of your competition, andthe needs of the prospect.

Be Confident - Sellers' confidencetranslates into buyers' confidence.Without confidence in yourself or yotirhotel, you cannot be successful in sales.

For a copy of "Characteristics ofSuccessful Sales People," email me athowardf@vt.edu CH]

A/T7@qesfex.co/n

Howard Feiertag is on the faculty of the Departmentof Hospitality and Tourism Management atVirginia Tech, Blacksburg, Va. He can he reached athowardf@vt. edu.

LEGAL Q&ASmoothing out the hotel and restaurant relationshipBy Greg Duff, Ruth Walters & Rob SchnitzHM COLUMNISTS

W hen a third party operates a restaurant at ahotel, the relationship is generally structuredin one of the following ways: lease (landlord/tenant relationship only), license or franchise, manage-ment, or consulting. Larger hotel properties may haveone or more outlets operating under one or more ofthese various structures and depending on the parties'desires, structures can be blended. The main theme ofthese negotiations tends to be controlwhich relatesto who bears the majority of financial risk and potentialfinancial upside.

For hotels operated by a separate party, additionalconcerns arise that are common to managed hotelrelationships, generally relating to how or whetherthe hotel owner or operator will interact with therestaurant. The operator will usually prefer to beidentified as the hotel owner's representative withauthority to act on its behalf; however, owners mayneed or want to get involved if, for example, majorrenovations to the restaurant space are required. Hoteloperators should also think through how variousstructures may impact their compensation in theunderlying hotel management agreement. Introductionof a third party to own, operate or brand the restaurantoperations will require some kind of allocation ofcommon revenues or expenses.

Finally, when considering a structure in whichtwo brands will be present and perceived byconsumers, before approaching the other party to

begin negotiations, one of the most important factorsto consider for many hotels and restaurants is howand whether the two brands will "fit." Two well-known brands should spend a lot of time internallydetermining whether adding a second brand willsupport and add value to their own brands. A goodbrand fit may help a smooth operational relationship.Short of legal damage to trademark rights, selectingthe wrong brand in this physically and contractuallyintegrated setting can do serious reputational damageto both the hotel and restaurant.

The relationships described above are not mutuallyexclusive, and variations occur with greater frequencyas the hotel-restaurant relationship evolves. Issues

identified above are each worthy of a few moments'consideration when building a relationship between ahotel and a third-party operator, licensor or franchisor.Even a general understanding of a party's positionabout control of physical space, brand and intellectualproperty licensing, and employment concerns canshape the parties' selection of a structure or alter it oncenegotiations begin. CE]

hm@questex.com

GregDujfis Founder & Hospitality, Travel and Tourism GroupGhair ofGarvey Schubert Barer; Ruth Walters is OfGounsel,Garvey Schubert Barer; Rob Schnitz Is SVP and Associate GeneralGounsel, Hyatt Hotels.

DOW JONES WSJ.com

Our readers need to stay in the know. They realize thatopportunity never knocks twice - and the roadmap tosuccess begins on Page One.

Give your corporate travelers The Wall Street Journaland you'll give them a reason to come back. Every time.

To find out how you can increase guest satisfactionwith The Journal, call 877-WSJ-TRAVEL orvisit info.wsj.com/mynews/hm.

"Fm in the business world and WSJ is thebible of business. Use it every day,"

- Business Traveler, 2013 TravelSurvey, The Wall Street Journal

II Slti

c

; ^ '-''^'iiA^i^ :::!'"'^'!:uZ.f

THE WALL STREET JOURNAL.

April 7, 2014 I HotelManagement.net

New ways to increase guestvalue without cutting ratesBy Jon H. BlackHM COLUMNIST

V alue for price is consistently a top driverfor guest loyalty. Last year we broke downvalue for price drivers by region anduncovered some interesting geographical trends.This year when tapping into our Market MetrixHospitality Index (MMHI) we compared year-over-year value drivers by region. We found thatguest perception of value is down in the Americasand Europe, and up in Asia Pacific. To improvethese perceptions, we need to increase value andunderstand what drives value.

WHAT GUESTS VALUE MOSTData from our MMHI product and servicequestions reveal how guest preferences havechanged over the past year. The chart here shows

DRIVERS OF VALUE BY REGION

2012 2013 YOYChange

Americas RegionAdequacy of Room Lightinginternet AccessComfort of Bed and FurnitureRoom Cieaniiness

Europe RegionAdequacy of Room Lightinginternet AccessCan-Do AttitudeRoom Cieaniiness

Asia Pacific RegionAdequacy of Room Lightinginternet AccessCan-Do Attitude

83.2 82.7 -0.580.9 79.2 -1.784.3 84.2 -0.185.2 85.2 O.G

81.3 81.6 0.376.7 75.0 -1.7

79.1 78.3 -0.883.8 84.2 0.4

78.3 79.5 1.272.8 73.3 0.575.2 77.2 2.0

Phones Answered Quickiy 74.6 75.3 0.7

Source: Market Matrix Hospitality Index

the 2013 top key drivers of value for price for allthree regions.

Now that we know what guests value, let'stake a moment to interpret these findings andunderstand why these attributes are important:

Adequacy of Room Lighting: Lighting is theeasiest thing for hotels to get rightor wrong.When a light doesn't work, it's noticeable andannoying, dropping value perceptions. Whilelighting complaints may not show up as adetriment to loyalty, it cannot be ignored.

Internet Access: Guests place a high value onInternet access making it an important part of abrand's value proposition. But there is a lot to takeinto account. When trying to determine if your

Internet offering is up to snuff, consider all theangles:

Is it working? What is the bandwidth like?How does a guest access the Internet? Is there afee, or is it free?

But that's just the beginning. A June 2013survey by Hotels.com found that 67 percentof travelers felt that in-room Wi-Fi was themost important hotel service they look forwhen booking. Many guests are able to accessthe Internet independently via tablets andsmartphones, yet according to HotelChatter.com,still a third of U.S. hotels do not have free Wi-Fi.

In order to give guests what they want, makesure your offering is in-line with their preferences.Similar to adequacy of lighting, guests don't wanta hassle; they just want it to work. Drury Hotels,a consistent satisfaction leader of the MMHImidscale segment, may have it right when theytell their guest, "Pay for Internet access? That'slike paying to use the iron!"

Comfort of Bed & Furniture: Compared to2012, this value driver takes a more prominentrole for all three regions. Guest comfortestablishes a baseline for guest value. As therecession recedes and competition heats up,guests have more opportunities to travel andcompare offerings. Hoteliers that held off onrenovations a few years ago need to be sure theydon't get left behind.

The focal point of a guest stay remains thesamea place to sleep for a reasonable price.

Service-Offerings: Ensuring service is top-notch is key. Consistently we find that not onlydoes "exceptional service" deliver a 10-15 percentimprovement in loyalty, but that exceptionalservice stimulates a guest's emotional experience,which positively affects their perceived value.

The contribution of Can-Do Attitude to valueremains steady in the Americas and Europe. Andguests increasingly value accuracy of reservationin both Europe and Asia Pacific.

SUMMARYWhen it comes to improving value for price,it's about delivering the things that improvevalue perceptions, not just about exceedingexpectations or cutting rates. In this article, wewanted to explore the top drivers that have thebiggest impact on value. We learned about whatguests value most about their stay: they wanttheir lights and Internet working, their bedscomfortable and for service to be stellar. Butwe also know that guest preferences change.In order to keep guest loyalty, referrals andrecommendations strong, hotels must remaintuned-in, delivering what guests value most. JSH

hm@questex.com

Jon H. Black is Market Metrix's Product Managerfor Statistical Analysis. He can he reached atjblack@marketmetrix. com.

TRAINING TRENDSHow to effectivelymeasure and delivertraining resultsBy Mark Boccia & Gary WhitneyHM COLUMNISTS

W hen it comes to measuring the results of a training 'program, most trainers and training leaders are adeptat demonstrating the basic three levels of learning, but

often it is the fourth level that means the most to hotel leadership.Senior leaders want to knowdid we move the needle on sales,

profits, quality, efficiency, etc. This is information beyond morebasic measurements such as whether employees can pass a quiz,and demonstrate a new skill or behavior on the job. 9 H p

Knowing your audience will guide you in assessing hospitalitytraining programs^what to measure and how to measure. Tellingthe right story to the right audience and at the right time canstrengthen your training department and command the respectand attention of your hotel leadership team.

Understand who the stakeholders in your company are. It'snot just your boss, but also your bosses' boss, and other leaders.Perception is unique to each stakeholder. When you are thinkingabout what to measure, talk to your stakeholders about what theyvalue. Be prepared to tell a different story to a different audience.

Be ready with information, survey results and comments fromemployees. Fact-based decision making should be a foundationalstrategic element in your learning measurement strategy. Somestakeholders may want to sit in on a training session.

Do not underestimate the power of word-of-mouth. Oftenstakeholders will gauge a program's success by informally askingemployees their impressions of a training program.

Your guide on how much measurement you will need to do isbased on how much time, effort and money is being invested in theoverall program or initiativenot just how much is spent on thetraining part of the project.

Statistics and mathematics can make a compelling case forsome stakeholders. Reach out to experts who do this for a living,whether your financial officer, a research group in your company,or a nearby college or university. Have a confidentiality agreementsigned when you share information outside the company.

The continuous focus for a department leader is to beat thedrum of learning/training and show business value month aftermonth. Gone are the days of "nice-to-have" training programs.We have to think about what the organization values andcommunicate what we do in a way that equates that value.FOUR LEVELS OF LEARNING(KIRKPATRICK MODEL)

Level One: Did they enjoy the experience? Level Two: Can they demonstrate knowledge by a quiz? Level Three: Can they demonstrate the learned skill or

behavior on the job, without prompting? Level Four: Does their learning translate to a business

outcome such as increased sales or profit or reduced turnover? C3hm@questex. com

Mark Boccia is senior director, global operations, Marriott International.Gary Whitney is VP, learning and brand service consulting. IntercontinentalHotels Group.

HoteiManagement.net I April 7, 2014 TECH WATCH

Five simple ways to improve the hotel guest experience

By Frank WoifeHM COLUMNIST

AS I travel throughout theworld, I'm often askedwhere HFTP membersspend their technology budgets.Typically, I share my personallist of technology pet peeves.

INTERNETThere is nothing morefrustrating to a guest than tohave slow and/or unreliableInternet. A hotel that does notprovide good reliable Internetcan make any guest resentful.

My advice is that you cannotoverspend on this item. If you canconsistently provide it, then youhave a competitive advantage.

ELECTRICAL OUTLETSGuests need power outletsto charge their devices. Roadwarriors carry an average ofthree or more electrical devices.When is the last time you visiteda room and thought about whereto plug in a phone, tablet andlaptop? If your enterprise cannotbe retrofitted for more outlets,surge protectors might be a goodanswer (assuming buildingcodes will allow them).

JUNKI am a fan of beautifullydecorated rooms. But, why coverthousands of dollars of furniturewith marketing pieces?

According to a recent surveyby SmartBrief.com, when offered,more than 85 percent of guestswill use an online service requestsystem. I'd suggest trying to putlots of marketing material ina well-organized, online guestrequest system and show off thatfurniture you spent so muchmoney on.

WHAT WOMEN WANTIn addition to all of the itemspreviously mentioned here,which apply to both sexes, manywomen look for additionalamenities. A good makeupmirror with its own lighting, agood hair dryer in the bathroom(as opposed to attached to thedesk near the bed), adequate

space in the bathroom forcosmetics, and good bathroomlighting are all important andworth spending some moneyon, especially if you are trying toattract female travelers.

TELEVISIONSAs a road warrior, I hardly turnthem on unless I can't connect

to my laptop and watch my owncontent. When I do that, I reallyappreciate having an up-to-date TV with great sound. I alsofind that if I can use the TV as amonitor for my laptop or tablet,I am more likely to rent an in-room movie.

So there you have it, fivethings that, if you get them

right, will improve your bottomline. To keep the conversationgoing, tweet me your thoughtsat @frankwolfe. JUB

hm@questex.com

Frank Wolfe is CEO of HospitalityFinancial and Technology Professionals(HFTP). He can be reached at frank.

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H l PROFILE April 7, 2014 I HotelManagetnent,net

ONEon

ONE

Hilton Worldwide'sBILL FORTIER

Industry veteran continues to pave the way forAnnericas brand growthone new deal at a tinne

HILTON WORLDWIDEHeadquarters: McLean, Va,Structure: Owner, operator, franchisorPortfolio: More than 4,000 hotels across 10 brandsWebsite: www,hiltonworldwide,com

By David EisenMANAGING EDITOR

I f not for a chance encounter with a hospitality professor,Bill Fortier, now Hilton Worldwide's SVP of develop-ment, Americas, might still be humming aroundCalifornianot overseeing development and franchisingof all Hilton hrands for hoth North and South America.

Post high school, Fortier, like many still searching fordirection, lived at home with his parents in Lodi, Calif, asmallish town close to Sacramento with a population thenof only 25,000, But, at the convincing of the professor, hefinally decided to focus on hotel and restaurant manage-ment at the University of Houston's Conrad N, HiltonCollege of Hotel and Restaurant Management,

"Truthfully, I think my parents were more excited thanI was when I decided to leave home for Houston, They werehappy I was not going to waste away houncing hetweenwater skiing and snow skiing for the rest of my life," he said,

Fortier has now heen with Hilton for 18 years, whichis somewhat an anomaly these days in an industry as peri-patetic as hospitality. That almost two-decade-long stretch,however, was preceded hy 10 years with Hilton's chief rival:Marriott International, where he was VP of development.It goes without saying that the two companies today wagewar for customers: both consumers and owner/developers.

At the time Fortier left Marriott, many thought he wasmaking a mistake, "My colleagues thought I was crazy," hesaid. In 1996, Hilton was only a one-brand company. "ButI went over to help get Hilton Garden Inn off the ground,"he said, "After developing Courtyard with Marriott, I knewthe huge potential for a competing brand with the power ofHilton supporting it. The only way to beat Marriott, or anycompetitor, is to he laser-focused on the customer. For myteam of developers, that means the hotel owners. They arethe reason we do what we do,"

PROMUS DEALThree years after Fortier joined Hilton, the then Bev-erly Hills, Calif-based company made one of its signa-ture deals: acquiring the Promus Hotel chain and its fourbrands, DoubleTree, Embassy Suites, Hampton Inn andHomewood Suites, for $3.7 billion. Fortier, at the timeVP of franchise development, was instrumental in fold-ing the brands into what was then known as Hilton Ho-tels Corporation,

At the time of the acquisition, one analyst said thatfive years from now, the deal could prove to be a profitabletransaction for Hilton, It's been that and then some. "It wasa great acquisition, and I think the one that set tis up to bethe industry leader we are today," Fortier said, "I saw a hugeopportunity from day one. With Promus, we got a franchis-ing machine with a large number of very smart owners, thebulk of which were Hampton Inn owners,"

From the beginning, Fortier set up the sales team tosell all of the brands and made a shrewd decision to try andconvince existing owners to own other brands. It worked.

The 97-room Home2 Suites by Hilton Queretaro, Mexico, isthe first Home2 in Latin America,

The Embassy Suites in Springfield, Va., benefits frombusiness travel into Washington, D,C,

Fortier said that about 70 percent to 75 percent of new dealstoday came from existing owners.

"In order to make the acquisition a success, we had tomove Hilton from doing 50 deals per year and Promusfirom doing 100 deals per year, to a company that could do400 deals per year," he said, an accomplishment that wasachieved in 2007,

FRANCHISE EFFORTSHilton Worldwide, particularly in North America, is afranchise company (in EMEA and other emerging mar-kets, and with its luxury brandsWaldorf Astoria andConradit operates more as a management company)and there is a reason for that, Fortier said, "The [franchise]model works so well in the U.S. because there are so manygreat qualified third-party managers," he said. "Once youget out of North America, the model falls off.

"As you move out into emerging markets, focus serviceis emerging with them. It was full service, but as marketsemerge, people look for other [lodging] options. It's a hugeopportunity for focused service,"

In Asia, for example, Hilton just started rolling out theHilton Garden Inn brand and has 16 or so deals in theconstruction or approval process.

In 2013, Hilton opened 207 hotels with nearly 34,000rooms, with conversions accounting for 35 percent of theseopenings, Fortier said that number of openings will beeclipsed in 2014,

There's no doubt Fortier has come a long way since hisdays in Lodi, And while he is a Hilton man, living on theEast Coast, he still misses home, "My heart is still in theWest Coast," he said. "Especially this time of year." CEQ

deisen@questex.com

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April 7, 2014 I HotelManagement.net

2014 HOTEL MANAGEMENT SURVEY

HOTEL BROKERSCompany name

Acicman-Ziff

Amber Hotel Company

Baltes Commercial Realty Ltd.

Brewer Brokerage Co.

Brock Hotel Group

Brown Nester HospitalityServices

CAS Associates

Class Harlan Real Estate

Crystal Investment Property

Cushman & Wakefieid/NorthMarq

Eaton Hotel Investments

Executive Realty Network

Greene Canfield DeGeorge

Henry S. Miller Brokerage -Hospitality Services

HL Commercial

Hodges Ward Elliott

Hoover Lodging Realty

Hotel AG

Hotel Brokers International

Hotel Brokers of Austin

Hotel Source

HotelBrokerOne

HREC Investment Advisors

Huff, NIehaus & Associates

Hunter Hotel Advisors

HVS Capital Corp.

Website

www.aci

www.osram-americas.com/hospitality

Light is welcomingBright ideas for lower oosts andan enjoyable staySYLVANIA ULTRA 25 ULTRA SE LEDs Warm 2500 Kelvin CCT iamps are Transition coior temperature from

designed to provide comfortabie, relaxing 3000 Kelvin to 2000 Keivin matciningwarm light simiiar to incandescent. incandescent dimming.

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SYLVANIA OSRAM

T1 Company name

Intergroup Realty

Laurel Real Estate Co.

Leisure Real Estate Advisors

Lodging Realty Services

Marcus & Millichap Real EstateInvestment Services

Maxim Hotel Brokerage

Maziii Hotel Group

MBA Hotel Brokers

Mumford Co.

New England/NationalHotel Realty

O'Connell Hospitality Group

Optimum Hotel Brokerage

Pacitica Capital & Brokerage

Paramount Lodging Advisors

PHG Hotels & Resorts

ProCom Lodging Brokers

Scoggin Blue

Smith Dean Burgett

Sonnenblick-Eichner Co.

The Carlton Group, Ltd.

The Plasencia Group

Timm & Associates

Topher Real Estate Services

Tri-Point

Warmbrodt Hotel Investments

Wason Associates HotelBrokerage Group

ruifi

Website

mm.intergroupcompanies.com

mm.laumlhotelbmkers.com

mm.leisurerealestate.com

www.lodgingrealty.com

vmw.marcusmillichap.com

www.maxlm-hb.com

www.mazilihotelgroup.com

wvm.mbahutels.com

www.mumfordcompany.com

www.newenglandhotelrealty.com

www.oconnellhospitality.com

www.optimumbrokerage.com

www.pacificacb.com

www.paramountlodging.com

www.phgtir.com

www.procowlodging.com

www.scogginblue.com

www.smithdeanburgett.com

www.sonneich.com

www.car1tongroup.com

www.tpghotels.com

www.timmhotelbroker.com

www.topherservices.com

www.whikc.com

www.hospitalityrealestate.com

Contact

Tandy 0. Lofland

Errol D'Souza

Brent A. Jaynes

Edward Xamders

Gregory A. LaBerge

Harry Pflueger

Julian Maziii

Charlie Fritsch

Ed James

Ken Ford

James F. O'Connell

Joe MoCann

Chris Chiotis

Anna Hargraves

Ivar Yuste

Steven Ferrarini

Steve Blue

Gary Smith

Colette Schmet

Brendan P. Sullivan

Lou Plasencia

Lee Kertoot

William L. Lazarus

Michle Saggese

Herb Warmbrodt

Earie Wason

Contact email

tandy@intergroupcompanies.coni

into@laurelhotelbrokers.com

biaynes@leisurerealestate.com

ihcex@comcast.net

glaberge@marcusmillichap. com

harry@maxim-hb.com

jmazili@mazilihotelgroup.com

into@mbahotels.com

ejames@mumfordcompany.com

kenford@newenglandhotelrealty.com

jimoconnell@oconnellhospitality.com

joe@optimumbrokerage. com

chrisprb@cox.net

ahargraves@paramountlodging com

phg@phghr.com

steve@procomlodging. com

sblue@scogginblue.com

gsmith@smithdeanbuigett.com

cschamet@sonneicti. com

bsullivan@carltongroup.com

lplasencia@tpghotels.com

lkerfoot@timmhotelbmker. com

biWopherservices. com

tri-point@att.net

herb@whikc.com

earle@hospitalityrealestate.com

No. of lodgingproperties estimated

to sell in 2014

6

8

24

3

135

20

20

30

50

NA

12

NA

NA

40

NA

6

4-5

10

NA

NA

35

NA

4

3

30

8

April 7, 2014 1 Hote lManagement .net

Revenue from lodgingsales between

1/1/13 -12/31/13

NA -

NA

NA

NA

$404,179

NA

NA

NA

NA

NA

$2,000,000

$2,000,000

NA

NA

NA

NA

$503,750

NA

NA

NA

NA

NA

$120,000

NA

NA

NA

No. of lodgingproperties sold from

1/1/13 -12/31/13

NA

6

21

NA

99

20

8

12

43

NA

12

5

NA

24

NA

NA

2

8

NA

NA

NA

NA

2 ^

3

24

7

Footnotes: NA means not applicable or not answered. Participating in Hotei Management surveys is voiuntary. Editors do not hold responsibility for companies that fail to report or that report incorrect data.Visit www.hoteimanagement.net/hoteiworid-network-surveys for more information about how to participate.

SURVEY SAYS RESPONDENTS SPEAK OUT

^ our sidelined buyers to the'market, with cash in hand and ready to buy good

investment-value lodging properties. In theSouthwest region, the market is ready to explode

in terms of property movement and sales."WILLIAM i:4RUSj

The majority of this year's respondents saythat so far the hotel transactions climatein the U.S. is better In 2014 than it vs/as in

2013. Twenty-seven percent said this yearseems about the same as last year and

2 percent said it is worse.

The transaction market is inequilibrium, with buyers and sellersgetting closer on values and cheap

debt capital still available."6E0FF DAVIS, HREG INVESTMENT ADVISORS

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The 4K ecosystem: Are you ready?ByAdamLeposaASSOCIATE WEB MANAGING EDITOR

4 K TVs, which can offertwice the pixel density ofan HD model, may havedrawn buzz at this year's Con-sumer Electronics Show, but thenew format faces challenges incost and infrastructure before itcan enter the hotel guestroom.

"It's really about the cost," saidJennifer Green, director of guest-room technology at Hyatt HotelsCorporation. "This is a big capitalexpense for hotels, and unlessthere's a major market reason whyyou need to do it, you're going towait until your current TVs reachend-of-life."

While hotels want to provide a

quality experience for their guests,it is unclear how much the TVexperience drives guests to select ahotel. Green said. Hotels tend tofocus on the quality of guest careand overall amenities of whichTVs are only a part, and while it isimportant that hotels avoid beingbehind the curve of what guests Isee at home, there is only a clear d

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Some HD and 4K TVs have curvedscreens to increase picture qualityand the viable viewing angle. Thismodel is not available for hospitalitypurchase.

incentive to invest in higher-endTVs before end-of-life if they actas a clear differentiator.

Jonas Tanenbaum, VP of hos-pitality at Samsung, said that themigration of 4K TVs into hotelswill be influenced by consumerinterest.

"While we do not yet have 4Kproducts for hotels, I expect that atsome point in the future that willchange, and the timing ofthatwlbe based on the rate of adoption of4K panels by consumers," Tanen-baum said. "As consumer adop-tion of the new technology picksup, it has a trickle-down effect onthe products that are available forhotels."

Currently, adoption of both4K and HD TVs in hotels hasbeen slowed, partly by a lack ofcontent, said Anthony Fonzo,national account manager. PhilipsHospitality TV.

"HD is still coming into thehospitality space," said Fonzo."The total number of hotel roomsin the U.S. that have HD chan-nels right now is not even at 55percent. When you look at howmany channels offering HDcontent hotels have, you're stilllooking at 10 to 12, while at homepeople probably have 50 to 100HD channels on a normal HDpackage."

Even as providers begin to offerHD content to hotelsand later4Kbandwidth will remain anissue, Fonzo said.

"A 4K signal is estimated totake about 15MB/sec, but there arehotels that have lOOMB/sec for thewhole hotel," Fonzo said. "So for ahotel with 100 rooms, that mightnot be possible." CE

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April 7, 2014 I HotelManagement.net

Seasonal cleaningPTAC MAINTENANCE

By C. Elliott MestASSOCIATE EDITOR

HI otel PTACs should be removed from the wall at least onceannually for a thorough cleaning for optimal performance,but hoteliers often gloss over the importance of frequent filterreplacements.

Barry Bookout, national sales manager, lodging & specialty marketsfor Friedrich Air Conditioning, suggests cleaning PTAC filters once permonth using re-usable plastic mesh filters that are washable and replace-

able, but in periods of high occupancy, cleaning should take place evenmore often.

"High occupancy means lots of contaminants and longer PTACruntimes," Bookout said. "Some hotels keep several replacement filterson hand to switch out with used filters while cleaning a room in highoccupancy to keep the process moving."

William Fizer, president of Lodging Technology, a developer ofinfrared sensor-based energy conservation systems for PTACs and otherdevices, cites clogged filters as the largest cause of room odors and PTACfailure in guestrooms. This form of PTAC failure can be silent, andclogged filters wl cause a PTAC unit to run for longer periods of timewithout satisfying a guestroom thermostat.

According to Douglas Mackemer, national director, parts, suppliesand special equipment for HVAC distributor Carrier Enterprise, themost dangerous environment for a PTAC to be operating in is a propertythat is currently undergoing a renovation. Mackemer directs hotels toextract PTAC units from walls and put them in storage during renova-tions, as drywall dust bypasses PTAC filters and is capable of pluggingthe compressor coils.

"That is not a warranty-friendly environment," Mackemer said. "Ifthe units are stuck in place, cover them in a large plastic bag and keepthem off. They have a way of turning themselves on near contractors, andcan take significant damage if left on during construction."

Drywall dust particles are not the only dangers to PTACs in renova-tion environments. According to Fizer, trash and even an uneaten sand-wich have been found inside PTAC units after completed constructionprojects, all of which can be debilitating to the operation of the device.

"Tbe cleanliness of coils is the primary enemy of PTACs," Fizer said."Energy management is important to reduce runtime, which keeps themcleaner longer." GUI

emest@questex.com

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Debris canmake anawful messDue to this year's longand eventful winter, hotelsmay be inundated withsnow around the bottomfloor of their buildings,which could potentiallyhurt PTACs.

"With a lot of snowdrift going on in thenorthern United Statesthis winter, debris, graveland rocks can get intoPTACs that are even afoot off the ground of thefirst floor of hotels," saidBarry Bookout, nationalsales manager, lodging& specialty markets forFriedrich Air Conditioning.

Winter snowfall canbe a magnet for debriscapable of damaginga PTAC. Sometimes,even the snow by itselfis enough to damage theroom through the PTAC.

According to DouglasMackemer, nationaldirector, parts, suppliesand special equipmentfor Carrier Enterprise,hotels should be surethere is not an abundanceof snow located close tothe building that couldimpede airflow and causeother operational issues.

"Occasionally you canget a buildup of snowthat, when it melts, canmake its way into thedrain area of a PTAC,"Mackemer said. "If thePTAC sleeve was notcaulked well duringinstallation, water caneven find its way into thedrywall behind the unit,creating mold." CE]

emest@questex.com

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April 7, 2014 I HotelManagement.net

Why hiding PTACs is not the answerBy C. Elliott iVIestASSOCIATE EDITOR

G uestrooms are designedto be pleasing to the eye.PTACs, however, oftenimpede this plan, but they, too,need their space.

"In the last couple of years,many hotel brands have been try-ing to 'hide' the PTAC in the hotel

guestroom," said Barry Bookout,national sales manager, lodging& specialty markets for FriedrichAir Conditioning. "This is partof the constant struggle betweenengineering and design, but thePTAC is always going to be there.It's equipment in the wall, anddesigners don't like the look."

Unfortunately, attempts to

keep the devices hidden oftenbackfire and reduce both theireffectiveness and operation life.Douglas Mackemer, nationaldirector, parts, supplies and specialequipment for Carrier Enterprise,lists draperies and furnitureamong the biggest guestroomfixtures that effea PTAC airfiow.

As PTACs are often placed

Allowing draperies to Cmguestroom PTACs can inhibiteffectiveness.

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Choosing the right kind of vanity canmake or break a bathroom spaceBy C. Elliott MestASSOCIATE EDITOR

I otels, from luxury throughselect-service, are palettesfor designers to weavetheir tnagic. While they look toachieve this through every space,

Hbathrooms in recent times havebeen given increased focus. Thisis particularly true as it relates tochoice of vanity.

Modern hotel bathroom van-ity design has focused on trans-formingvanities into freestanding.

high-end furniture. According toJenny Scheffris, director of designfor interior design firm InkwellDesign House, the goal in usingfaux furniture as bathroom vani-ties is to distance bathroom designfrom the aesthetic of the 1990s.

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Bathroom vanities that imitateguestroom furniture fit more easilyinto bathroom floor plans thanfurniture buiit into a space.

"It s bringing back a real designaesthetic to the hotel bathroomwhere before it was devoid,"Scheffris said. "Rather thanremind a guest they are in a hotel,new design directions are morecomplete; they want to make aguest feel like they are in a secondhome."

"The idea is to de-institutional-ize the bathroom," said Tony Patel,partner at Georgia-based New-port Design Group Architects."Though it looks like furniture itis still attached to the wall, and ithumanizes the space."

Patel recommends usingthese vanity pieces as a way tocounteract imperfections inroom construction. "Space cansometimes vary inches fromroom to room, and free-standingelements such as these vanities canbe used in any space," Patel said.By installing a free-standing van-ity, hotels can shave off time thatwould otherwise be spent on fieldcutting to make a given piece fitinto a smaller space, which couldalso potentially reduce the qualityof the edges in the piece as well.

Looking forward, Patel expectsthe inclusion of more plugs in thevanity space for guests who like touse their phones while brushingtheir teeth. Guestrooms haveslowly been integrating with guestdevices, and Patel says that thebathroom vanity is next.

"The costs to install thesefeatures are not high, but thereare some concerns," Patel said."Where do you put that plug?How far from the sink should aplug be? It will create new issueswith design, but it is coming andit will catch on." CLQ

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BEDDING TRENDS

Guestroom beds get amore modern twistWhile the white duvet isn't going away anytime soon,new headboards, shapes, colors and textiles aremaking for dreamy new hotel bedshere's how

By Gina LaVecchia RagoneCONTRIBUTING EDITOR

S the largest element in most guest-rooms, it is the natural focal point; sogood design often begins where the

guest's day endsthe bed. Interior design-ers specializing in hospitality predict somecurrent trends wl hold strong while othernew and exciting elements gain traction.

HEADBOARDS:CUSTOM FOCAL POINTSIn some settings, including suites and oth-er large rooms, designers are creating cus-tom, oversized headboards to serve as adramatic focus of attention for the guest-room. "Headboards are becoming morethree-dimensional," said Cheryl Hillberry,principle, CBH Design, "extending all theway up to the ceiling and over the bed withlighting coming down from that."

At Perkins Eastman, Barbara Mullenexsaid, "WeVe reached a level of luxury inmattresses and linens that the new place togo is the architectural use of the bed. That'swhere the innovation is going: beds becom-ing more of an architectural feature in somesettings. They are also being designed notjust with lighting butwith thoughtful placesfor phones and other electronic devices."

Melissa Breen, designer/specifier for

DiLeonardo, said the trend is especiallyvisible at higher-end properties. "The lookprovides romance, drama and a focal point,"she said.

That's not to say the classic upholsteredheadboard is going by the wayside. Bothluxury and midscale properties will continueto use soft headboards. Designers agree thatthe inherent plushness of these pieces willensure their usefulness for as long as guestscontinue to bring their electronicstabletsand laptopsto bed. Hillberry said textileimprovements will continue to expandoptions for upholstered headboards. "Newfabrics offer more longevity and luxurynow," ensuring their use in upscale and mid-scale headboard applications, she said.

More designers and hotel brands areselecting platform beds for hotels across theprice spectrum (Motel 6's newest roomsfeature them). "More recently, we Ve beendetailing true platform beds in for our U.S.clients with simply a high-quality mattressplaced on top," said Breen. In some cases,the platform look is being achieved withwood or upholstered box spring covers.However, in addition to being fashionable,the true platform bed is practical andeconomical, eschewing the need for a boxspring and bed skirt. Another practical(though largely unspoken) advantage to the

platform is its role in eliminating bed bugsby giving them fewer places to hide. Eliza-beth Temple, senior designer for BaskerviU,said, "It's so much easier to clean platformbeds and we're definitely seeing thingsmoving away from bed skirts and metal bedframes for a more residential look."

Technology might play an importantniche role when it comes to the beds them-selves, said Mullenex, who shared with aninnovation she saw during a recent visit toMarriott International headquarters. Thecompany is considering bringing an elementfrom its AC Hotel brand in Europe to itsAC properties stateside. That is, a king bedthat slides apart to become two twins. Theparts glide along a track (not old-fashionedcasters) and move apart and back togethereasily. "This has the potential to catch onas an alternative to two doubles, because itprovides space for a lounge chair or otheramenities," Mullenex said.

ACCESSORIES:GOODBYE TO THE SCARF?While the throw pillow has largely disap-peared from the midscale segment, design-ers are predicting at least one will be tossedback onto the bed, for both comfort andcolor. As for the ubiquitous bed scarf? It re-mains the most popular accessory in mid-scale hotels (though they are more com-monly sewn onto the top sheet these daysto prevent loss and to make life generallyeasier for housekeeping).

Some higher-end properties, however,are sending scarves packing. Instead, thelook is getting an update with texturalthrows and blankets on the bed. "They canprovide both color and pattern as well asfunction ... softness and warmth and moreluxury than a bed scarf," said Mullenex."We're seeing them in fuzzy, warm fabricsthat people would really want to curl up in."

TEXTURE AND PRINTS:CHIC AND ACCESSIBLEPetra Michael, director of marketing forKay Lang + Associates, said printed em-bellishments will become more prominentand allow brands the opportunity to createcustom prints at an affordable price. "Weare doing some graphic prints on textilesfor throw pillows or bed scarves ... evenon the top sheet," she said. The firm pre-dicts large architectural graphics and cus-tom patterns will become more accessibleand commonly used. "It is interesting tech-nology because the newest printers are verylarge, and because you don't need to orderhundreds of units. You can do it in small-er quantities."

She also said that while bedding will staywhite across all segments, more jacquards,including the hotel's logo or even custom,brand-specific designs, will be incorporatedfor texture and subtle pattern, especiallyin top sheets, shams and duvet covers. "Soyou can keep white bedding [but] still havetexture or graphics and it doesn't deterioratein repeated washings," Michael said.

At BaskerviU, Patricia Lopez said somedesigners will replace color on the bed withtexture. "The trend has moved toward usingdifferent textures and combining differentscales as a pattern," she said. Michael said,"Another [textile] trend we love is pre-wrinkled fabric, which helps to overcomethe challenge of keeping materials wrinkle-free." Borrowed from women's fashion, thenew technology creates puckered, durabletextiles for hospitality. "It's chic and it'spractical," said Michael.

Designers will take advantage of theadvancements in durability that makemore textures practical. Expect to see moresuper-plush and residential-type fabrics.Even metallics and fatix furs will make

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Bedding trendsContinued from page 28appearances in accessories.

Breen concurs and said it's a great time tobe a hospitality designer. "The fact that whatwe're seeing now is not only beautiful butfunctional can give us new confidence mov-ing forward," she said. "New textiles canwithstand temperatures and be launderedon property, so we don't have to compromisedesign aesthetic for a good lifespan. We arealso able to use more residential-type textiles,which is always desirable in hospitality."

COLOR: WHITE STILL REIGNSWhile guests and hotel operators will con-tinue to favor white sheets for their con-notations of luxury and cleanliness, colorwill continue to find its way to the bed inthe form of accessories, stitching and hems.

"Things will stay neutral with bold popsof color. We could see things like a neutralupholstered headboard with a richly huedwall panel behind it," said Hillberry.

Deep bdghts and bright jewel tonesare what many designers are predictingfor guestroom accent colors. Purple will bestrong (Pantone's color of the year is orchid).

as will cayenne, cobalt or hemlock, crimson,cabernet, bright yellow and cerulean. "Youcan get by with one little pillow. A little bitof these colors will go a long way," MuUenexsaid.

Following residential design, "In U.S.markets, we are seeing a strong shift to'greige' monochromatic rooms with abright pop of color," Breen said, or for resortlocations, "calming pops of color like peach,orange and blue."

Down the road, influences from some ofthe luxury Middle East hotels may find theirway stateside. There, designers are installingaudacious accent palettes of bright reds andgreens that verge into neon territories.

Last, designers should consider thisabout mattresses and pillows: comfortremains the most important feature of anyhotel bed. MuUenex said the high-end trendofbranded mattresses in hotels, such as Dux(found in a handful of luxury properties)and the Simmons Heavenly Bed mattressat Westin might trickle down to midscalehotels.

"More manufacturers will developproducts to market through the hospitalityindustry," she said. " It's going to be a veryinteresting trend to watch." \JS1

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FLUSH WITH CAPITAL

Hotel transaction pace set to increase in 2014

By Stacey HigginsCONTRIBUTING EDITOR

Favorable conditions will acceleratehotel lending and a need to placecapital will lead to a propitious 2014deal landscape, according to hotel invest-ment professionals.

These factors will push transactionvolume: after full-year 2013 transactionsreports have come back strong, 2014 is seenas a year for continued growth for pricingand volume.

Lenders have become more aggressiveduring the past few quarters, according toMichael Yu, VP of investments at Marcus& Millichap.

"A year ago, we might have had onelender looking at an asset; now multiplelenders are looking at that same asset," hesaid. "More lenders are lending because ofincreased competition. Lenders are startingto do deals they wouldn't have done before."

Debt has gotten better every month interms of availability, said Michael Cahill,founder and CEO of HREC. "One ofthe reasons why hotel transaction volumemay increase 30 to 40 percent in 2014 isthe abundance of capital," he said. "Debtis available at interest rates and other termsthat are as favorable as they could be in thelast 20 years."

According to a recent report releasedby global advisory firm Grant ThorntonInternational, the market is driving creativ-ity. The cautious approach by traditional

banks and the collapse in loan-to-valueratios has given rise to new market players,who are driving creative lending structures.Solutions involving mezzanine financingand quasi-equity debt as part of the capitalstructure are also affording traditionalbanks additional protection, thereby provid-ing more stimulus in the market, which isresulting in more liquidity for transactions,according to the report, "Hotel Investment2014: Finance on a different level."

And hotel owners are reporting thataccess to financing has become easier. TheGrant Thornton International BusinessReport, which presents responses from a

survey of 3,000 business leaders globally,indicated that a shortage of finance was amajor constraint in the hotel sectoraffect-ing one third of businesses during 2012.In 2013, less than one quarter of hotelbusinesses indicated access to finance as aproblem for expansion.

THE LENDERSCommercial mortgage-backed securitieshave also seen a resurgence. "CMBS iswidely available; there are 37 major lend-ers that will do CMBS, compared to sevenin 2011," Cahill said.

Data from the first half of 2013 show

that CMBS lending made up 41 percentof the total lending composition, accordingto Real Capital Analytics (RCA). Nationalbanks are the second-largest provider ofhotel lending in the same time period, at21 percent. CMBS has been the majorityhotel lender since 2010.

Yu attributed the CMBS surge to alarge amount of refinancing occurring inthe marketplace.

"The comeback of CMBS is a big story,although it's not for acquisition, but forrefinance," he said. "A lot of developersopened properties before the recession andnow in the last 12 to 16 months there havebeen refi's."

Interest rates are a low-level concern,Cahill added. "It's a great environmentfor investors," he said. "Interest rates arelow and the varied types of debt financingavailable allow investors to match the rightdebt and type to their needs."

The Mortgage Brokers Association(MBA) expects $100 billion in CMBSissuance in 2014, up from $48 billion in2012 and $86 billion lastyear. The increasein the number of CMBS lenders will leadto greater competition for new business,which will lead to tighter spreads andhigher LTVs, according to the MBA.

A buyer with a CMBS deal would beable to secure a loan with 10 percent debtyield on net operating income at time ofsecuritization; mezzanine financing isallowed up to 80 percent and is availablein the 9-to-lO-percent range and LTVcurrently tops out at 70 percent, but isexpected to rise to 75 percent this year,according to the MBA.

THE BUYERSThe increased interest in the hotel sec-tor and limited quality assets for sale ispushing buyers into secondary marketsand driving price increases, Yu said. "Forthose type of assets, the top buyers areprivate equity or larger players, institu-tional," he said. "You're also seeing cross-

over, first-time hotel buyers that are payinga higher price."

RCA reported that sales of hotels innon-major metro markets increased by 49percent in 2013, while volume in the sixmajor metros fell slightly. The Southeastand Southwest United States were strongestwith volume up 82 percent and 55 percent,respectively.

In 2013, the three biggest buyers interms of investment volume in the U.S.were Blackstone Croup, GIC (Governmentof Singapore) and Starwood Capital Group,according to RCA. CEO

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SustainabilityContinued from page 1own program, LightStay, usingISO standards. "Sustainability forus is about measure, analyze andimprove," he said.

Gaines said currently morethan 4,000 hotels in the Hiltonsystem are ISO 14001- and9001-certified by using the Light-Stay tools. "LightStay is a brand

standard that is tised to help us asa guide path to understand usage,"he said.

Herv Houdr, longtimesustainable hospitality advocateand regional director of operationsand GM of InterGontinental NewYork Barclay, said there Isn't a needto create certification from scratch,for two reasons: "First, we simply

don't have the time or resourcesto create one and, second, it'ssimpler for our hotels to align totheir criteria, to use their clout andmarketing power," he said.

Gaines and Houdr are co-chairs of the American Hotel &Lodging Assn.'s engineering andenvironment committee.

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ment aspect of sustainabilityis MindGlick, which managesthe MindGlick Global Sustain-ability Index for product ratings(formerly HSP Index).

GEO JoAnna Abrams said theorganization's "approach followsleading global standards andcreates a framework for consistentsustainability when it comes to thesupply chain."

Abrams said the biggestchallenge is the perception thatsustainability is expensive. "Wehave fundamentally proven thatwrong," she said.

She pointed to a case studyof one Gourtyard by Marriottproperty that selected sustainableproducts during a renovation andalerted guests to the initiative.MindGlick reported that guestsatisfaction and referral scoresimproved by 150 percent com-pared to guests that weren't awareof the initiative.

LEED UPDATEThe U.S. Green BuildingGouncil updated its Leadershipin Energy & EnvironmentalDesign (LEED) criteria, includ-ing adaptations for hospitalityprojects. The newest program,LEED v4, released in November2013, doles out credit for higherachievement and performance inthe areas of resource savings andemissions reduction.

"Hotels present a unique chal-lenge because they are a combina-tion of residential, commercialand retan, and LEED didn't havea version that was tackling thoseissues," said Gorey Enck, directorof LEED technical developmentfortheUSGBG.

While LEED is considereda good guideline for energy andemissions use, the organizationitself claims the biggest challenge isbuy-in from all hotel stakeholders.

"The most evident challengeSee Sustainability I page 38

April 7, 2014 I HotelManagement.net

SustainabilityContinued from page 36that we've seen is often the three-legged stool of the corporatebrand, the hotel ovmer and theproperty manager," said Rhian-non Jacobsen, USGBC's directorof strategic accounts. "A lot of thelarge hospitality owners aren'tas connected with USGBC andLEED."

In the area of engaging withthe hotel industry, LEED is abouttwo months away from startinga user group for hospitality. "Weintend to create a place wherethere is a peer-to-peer collab-orative allowing the market be incommunication with us as wellas each other," Jacobsen said. Fornow, LEED certification is more

prevalent in new build projectsthan in existing hotels.

THIRD-PARTY GUIDANCEConsultants who advise on sus-tainability practices often provideverification services as well.

Accounting firm Moss Adamsworks primarily with smaller inde-pendent hotel chains to reach theirsustainability goals. Roy Cupler,partner at Moss Adams, said thecompany provides reports on

LEED hotel certification by project typeLEED for New Construction: 193 hotelsLEED for Existing Buildings: 34 hotelsLEED for Commercial Inferiors: 13 hotelsLEED for Core & Shell: 11 hofels

Source: U.S. Green Building CounB

hotel companies' compliance totheir own goals. "It's a move in theright direction to have verification

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