News Top: August
From Bad to Worse for Wyndham
the authors: | August 27, 2015
By Scott Warner and Benjamin Lambiotte Lawyers often say "bad facts make bad law". Combine that with weak legal arguments and, well, things can get really bad, really fast. That's precisely what happened to Wyndham yesterday when the Third Circuit affirmed a federal District Court decision that the Federal Trade Commission ("FTC") has authority to regulate cybersecurity under the unfairness prong of § 45(a) of the Federal Trade Commission Act. While commentators may disagree on the result from a legal or policy perspective, one thing is for certain, it was a bad result for Wyndham. The decision rejected in no uncertain terms Wyndha...
Have Internet? The Lawsuit the Entire Hotel Industry Is Watching
Trevor Warner | August 11, 2015
By Trevor Warner As an update to our first article on the lawsuit filed by Nomadix against Blueprint RF, a federal judge ruled allegations of deceiving federal patent examiners could go forward against Nomadix Inc., an NTT Docomo Company. The allegations are counterclaims by smaller rival and defendant Blueprint RF which Nomadix accused of patent infringement. Chief among the accusations is an alleged infringement on the concept of a captive portal page. The page is what a user sees when logging into a hotel, airport, coffee house or any other Wi-Fi system that requires log in. The ruling in the U.S. District of Central California turn...
Pennsylvania’s Skytop Lodge Appoints Jeffrey Rudder as General Manager
Skytop Lodge | August 24, 2015
SKYTOP, Pa. (Aug. 21, 2015)—The board of directors of Skytop Lodge Corporation has announced the appointment of Jeffrey Rudder as general manager of the resort, effective Sept. 1. Most recently, Rudder has served as the resort's director of sales and marketing. Rudder joined Skytop Lodge in May 2014 and has been instrumental in promoting Skytop as a destination for leisure and corporate guests alike. He came to Skytop from the Omni Bedford Springs Resort & Spa where he was the director of sales and marketing. Prior to that, he served as director of sales at Oneida Nation Enterprises' Turning Stone Resort & Casino in Verona, N....
Duetto Secures $30M in Series C Funding to Further Accelerate its Worldwide Expansion
Duetto | August 4, 2015
Now in Hotels in 50 Countries, Duetto's Cloud-Based, Big Data Solution Doubles Hotel Profitability San Francisco, August 4, 2015 -- Duetto, the market leader in hotel and casino profit optimization technology, today announced the closing of a $30M financing led by Icon Ventures to further extend the company's global reach. Duetto's CEO, Patrick Bosworth, said, "While the explosive growth in online travel spends continue to accelerate, hoteliers are still struggling with outdated technologies that cannot keep up with today's distribution needs. In an environment of disruption in which third-party intermediaries are e...
Uniform System of Accounts for the Lodging Industry: Gross vs. Net Revenue Reporting
Agnes L. DeFranco | August 27, 2015
Implementation of the11th Revised Edition of the Uniform System of Accounts for the Lodging Industry The 11th revised edition of the Uniform System of Accounts for the Lodging Industry (USALI) was published in the spring of 2014, with an implementation date of January 1, 2015. The responsibility for revising the USALI lies with the Financial Management Committee (FMC) of the American Hotel & Lodging Association (AHLA). Throughout the implementation process, the FMC has received several questions from the worldwide lodging industry. To answer these questions, the FMC has created a Frequently Asked Questions (FAQ) document on the USAL...
Are Hotel Management Companies All the Same? 2015 Hotel Management Benchmark Study
Hans Detlefsen, MPP, MAI | August 19, 2015
by Hans Detlefsen and Emiliia Gordiienko Introduction Hotel Appraisers & Advisors (HA&A) recently completed our 2015 Hotel Management Company Benchmark Analysis. The study was designed in response to a series of questions we frequently hear from our clients in the hotel industry. These developers and investors seek our help identifying hotel operators and negotiating hotel management contracts. They ask us: Aren't most hotel management companies basically the same? How much does it really matter which operator we select? Is there any quantitative data suggesting that different management companies produce different profitability...
The Trump Organization Appoints Eric Danziger as Chief Executive Officer of Trump Hotel Collection
August 11, 2015
NEW YORK – Aug. 11, 2015 – The Trump Organization announced today that it has appointed Eric Danziger as Chief Executive Officer of their luxury hotel management company, Trump Hotel Collection. Mr. Danziger, a renowned figure in the hospitality industry with more than 45 years of experience, is charged with overseeing global operations, brand strategy, and the expansion of Trump Hotel Collection, currently one of the fastest growing luxury hotel companies in the world. With a portfolio of 14 hotels, including iconic assets such as Trump National Doral, an 800 acre property in the heart of Miami; Trump International Hotel Washington...
As Part of Global Expansion Plan, Karisma Hotels & Resorts Names Key Executive Leadership Promotions
Karisma Hotels & Resorts | August 20, 2015
MIAMI (August 20, 2015) – Karisma Hotels & Resorts, an award-winning luxury hotel collection which owns and manages properties across Latin America, the Caribbean and Europe, is pleased to announce its global expansion plans, encompassing a projected growth model to own and operate 30 resorts around the world by 2020. As the company continues to expand worldwide with offices in Miami, Cancún, Belgrade, Bogotá, Mexico City, London, Toronto and Quebec, key executive personnel have been promoted to lead the charge of sales, marketing and operations from a vast global perspective. Within the next year, Karisma Hotels & Resorts w...
RIU Hotels Reopens the Riu Palace Aruba Following a $25 Million Renovation
RIU Hotels & Resorts | August 3, 2015
Palma de Majorca, August 3, 2015 - RIU Hotels & Resorts reopens its emblematic Riu Palace Aruba after investing 25 million dollars in a complete renovation. This Palm Beach resort, which opened its doors for the first time in 2007, now has a luxurious, elegant and modern style combined with new services and facilities, featuring an infinity pool overlooking the crystalline waters of the Caribbean. All of the interiors of the newly renovated Riu Palace Aruba are decorated in the modern style the RIU Hotels chain is introducing in all its new projects. A concept based on clean, contemporary lines, where fresh, vibrant colours play a l...
A Boca Raton Man who has Filed Countless Federal ADA Lawsuits Against Florida Hotels – at it Again
August 26, 2015
Aug. 26--A Boca Raton man who has filed countless federal lawsuits since 2013 alleging violations of the Americans with Disabilities Act at hotels is at it again. Howard Cohan, who targeted a string of Florida Keys hotels, including the Westin Key West Resort and Marina and Banana Bay in Key West and Caloosa Cove Resort, Casa Morada and the Matecumbe Resort in Islamorada, earlier this year with the lawsuits filed at least nine new suits in July. The latest list of properties targeted by Cohan for ADA compliance include the La Te Da Hotel on Duval Street, the Marquesa Hotel on Fleming Street and the Coral Lagoon Resort and Marina in Mara...
Hilton Worldwide Honors Top Hotel Owners in the Americas with Annual Development Awards
Hilton Worldwide | August 31, 2015
McLean, Va., August 31, 2015 — Hilton Worldwide (NYSE: HLT) today announced honors for its top annual development awards in the Americas. Awards are presented in five categories across the company's portfolio of hotels, including: Developer of the Year, Best Conversion, Deal of the Year, Outstanding Achievement and Lifetime Achievement. Recipients are recognized based on criteria ranging from total number and quality of hotels developed to impact on community and fastest construction time. Once nominated, the finalists are chosen by Hilton Worldwide's global brand heads. "We are proud to celebrate the achievements of these valued ...
Five Methods to Increasing Your Revenue per Available Room (RevPAR)
Michels & Taylor | August 21, 2015
A common problem often facing hoteliers is how to increase revenue per available room. Jesper Johansen, Revenue Director Michel's & Taylor Managed Hotel division, has provided his tried and tested solutions to this age old problem. Method 1: Although considered second nature by most modern revenue leaders, the adoption of length of stay (LOS) restrictions is the still the most effective way to increase revenue per room. To make a length of stay strategy even more effective, try implementing it through rate levels or market segmentation. However, to implement this strategy successfully requires the hotel to understand its booking pat...
A Team Without Accountability is a Team Destined to be Average
Training for Winners | August 7, 2015
by Gary Hernbroth The good eat the mediocre. The great eat the good. And great wins. A recent client of mine asked his management team to do a bit of homework prior to our next training workshop. It involved looking up one or two of their competition's mission statements on the internet. We were going to start working on developing their own company's mission and vision statements, and his thought was to have the team bring them to the session for a comparison of phrasing, ideals, and a bit of a look into the other guys' corporate souls, so to speak. I was shocked during the training session when I went around the room and asked the ass...
Citing REIT’s are Most Affected by Airbnb, Merrill Lynch Analysts Downgrade Many Large Hotel Groups
August 17, 2015
MarketWatch reports that by the end of 2016, Merrill Lynch analysts say listings on home-renting platform Airbnb Inc. could make up as much as 1.2% of hotel offerings. But as a fast-growing startup, with an estimated 40% to 50% growth in listings per year, Airbnb listings could make up 3.6% to 4.3% of inventory by 2020, the analysts say. "Our preliminary work suggests Airbnb is a force to be reckoned with that is likely to have an increasing impact on the travel landscape," the analysts wrote. In increasing its market share, Airbnb is expected to help the overall room supply finally meet consumer demand. That should force hotels to lowe...
The End of Hotel Rate Parity: Much Ado About Nothing
Vikram Singh | August 19, 2015
by Vikram Singh Over the past few months, there has been a lot of talk about the imminent "end of hotel rate parity" and what it means for the hotel industry. Rulings in favor of ending rate parity clauses have been handed down by regulatory bodies in France, UK, Sweden and Italy. (Rate parity is the practice of maintaining consistent rates for the same product in all online distribution channels—Expedia, Priceline, etc.—regardless of what commission the OTA makes.) The reactions to a scenario in which rate parity will not be required or enforced have ranged from "OMG! This is the greatest thing ever!" to "This will destroy the OTA'...
ZMC Hotels Sells its Portfolio of 29 Hotels to Hall Equities Group
August 21, 2015
Aug. 21--In one of the country's biggest hotel deals of the year, Duluth-based ZMC Hotels' portfolio of 29 hotels has been sold. The sale to the California-based Hall Equities Group closed on Thursday afternoon. ZMC owners wanted an all-or-nothing deal for their hotels -- and they got it. "It's a very huge deal, spread over 10 states," said Ken Goldfine whose 14-year stint as ZMC's chairman and CEO ended with the closing. Also departing from the upper ranks of the family business are his cousins John Goldfine and Amy Goldfine. The portfolio of hotels sold include Inn on Lake Superior; Edgewater Resort and Waterpark; Day's Inn Lakewalk; ...
A Hotelier’s Perspective on the Sharing Economy: Welcome, Airbnb. Seriously.
Bashar Wali | August 17, 2015
by Bashar Wali I am a hotelier. Let's get that bias right out there. Everything I know and everything I do is focused on creating transcendent experiences for the guests who stay at my hotels. But unlike some of my colleagues in the hospitality industry, I am also a strong believer in the sharing economy. And I believe that rooms and cars are only the beginning. Let's talk about rooms for a moment. More specifically, let's talk about Airbnb. It's important to understand, in my opinion, that there are two very different and distinct Airbnb customers: The couch surfers, who are looking for the most affordable room they can possibly find. ...
Fitch Ratings: Airbnb Not a Competitive Threat to US Hotels—Yet
August 6, 2015
What U.S. Lodging Companies Are Saying Most Companies Unfazed: Most lodging companies do not view rapidly growing Airbnb, Inc. as a competitive threat to their businesses. During the second-quarter earnings call season, several companies repeated a plausible, optimistic view that Airbnb is largely creating new travel demand, primarily from millennials — a long-term positive for the travel industry. Fitch Ratings is somewhat less sanguine and notes that during this earnings season an influential hotel owner cited Airbnb directly for negatively affecting pricing power around select large, leisure-oriented group events due to some lost d...
Heart of the House
Bryan Williams of B.Williams Enterprise | August 24, 2015
by Bryan Williams Here is what I believe: You are either serving the customer or you are serving someone who is. Simply put...Everyone's job exists to do something for someone else. Therefore, everyone's job is important, needed, and relevant. The Dalai Lama once said, "If you think you are too small to make a difference, try sleeping with a mosquito". Front of House and Back of House In almost every service-based business, there is the "front of house" (FOH) and the "back of house" (BOH). The FOH consists of all the customer-contact staff, and the BOH is comprised of those folks who are not as seen, but still play a crucial role. Cooks...
Manhattan’s Iconic New York Palace Hotel Sells for $805 Million
Hodges Ward Elliott | August 31, 2015
NEW YORK--August 31, 2015--Hodges Ward Elliott ("HWE"), the world's leading independent hotel brokerage and investment-banking firm, with offices in New York, Atlanta, Los Angeles and London, announced that it has arranged the previously announced sale of Manhattan's legendary New York Palace Hotel for $805 million. LOTTE Group, a South Korea-based owner and operator of luxury hotels, has now closed on the acquisition of the 909-room Midtown landmark, which is located on the corner of 50th Street and Madison Avenue, from Northwood Investors. With this transaction, HWE has now completed $2.86 billion in deals throughout the NYC market si...
Starwood Differentiates Sheraton Brand with New Sheraton Grand Distinction
Sheraton Hotels & Resorts | August 19, 2015
100 Sheraton Hotels to be Recognized with Grand Designation by Early 2017 STAMFORD, Conn.--August 19, 2015-- Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today introduced Sheraton Grand, a new premier tier that recognizes exceptional Sheraton hotels and resorts for their enticing destinations, distinguished designs, and excellence in service and guest experiences. Starwood revealed the first ten Sheraton Grand properties, which span from Bangalore to Beijing, Dubai to Edinburgh, Miyazaki to Seoul, Taipei to Bangkok, and Tokyo to Rio de Janeiro. By year end, Starwood expects to have 50 newly-designated Sheraton Grand hotels a...
Conor Acquisitions Purchases 96-room Courtyard by Marriott East Lenox Park in Memphis, Tennessee
Hotel Equities | August 20, 2015
Fort Myers, FL and Memphis, TN–August 20, 2015 –Conor Acquisitions recently announced the purchase of the 96-room Courtyard by Marriott East Lenox Park in Memphis, Tennessee. Jonathan Williams serves as the General Manager. "The acquisition of this hotel reinforces our commitment to create a truly nationwide presence for Conor," said Mike Patel, Conor's Chief Investment Officer. "We are looking for value-added properties beyond the southeast that will both benefit their local communities and afford Conor many opportunities for success. "Because of Conor's unique ability to reposition and convert projects, we have a strong vision for...
Newmarket Acquires Hotel SystemsPro
Newmarket | August 3, 2015
Madrid, August 3, 2015: Amadeus is to expand its sales and catering offering to the hotel industry with the acquisition of Hotel SystemsPro by Newmarket, an Amadeus company. A U.S.-based provider of sales, catering and maintenance software to the hotel and hospitality industry, Hotel SystemsPro delivers high-performance, ASP-based enterprise and property solutions to more than 4,500 hotels in North America and beyond. The acquisition, which will see Hotel SystemsPro formally integrated into Newmarket, will complement Newmarket's existing market reach and expand its overall product offering whilst generating new business opportunities ac...
U.S. News & World Report Reveals the 2015-16 Best Travel Rewards Programs
U.S. News & World Report | August 4, 2015
Alaska Airlines' Mileage Plan is the No. 1 frequent flier program; Marriott Rewards continues reign as top hotel loyalty plan WASHINGTON, Aug. 4, 2015 -- U.S. News & World Report, a nationally recognized publisher of consumer advice and information, today released the 2015-16 Best Travel Rewards Programs. The annual rankings feature information on 28 airline and hotel loyalty programs to help travelers easily identify programs with the most perks. For the first time, Alaska Airlines' Mileage Plan tops the list of the Best Airline Rewards Programs. Marriott Rewards holds onto the No. 1 spot in the Best Hotel Rewards category for the ...
Technology Due Diligence Tips for Hotel Acquisitions
David M. Scolnic | August 24, 2015
By David M. Scolnic Hotel acquisitions are hot, with many hotels achieving double-digit offers within days after being put on the market. If you are lucky enough to be the winning bidder, you are probably pretty excited and not a little daunted. Did you pay too much? You probably don't have time to think too long about that: in this market, you will have 30 to 45 days for due diligence to make sure that not only is the hotel worth what you are paying but also that once the hotel is yours, you can have it running seamlessly despite the change of ownership. Of course, you will have a team of people pour over the books, investigate the phy...
