Becomes Part of Sceptre Hospitality Resources

DENVER/HOUSTON, 28 February 2012 — Sceptre Hospitality Resources, along with Richfield Hospitality today announced that its parent company, Hong Kong-based investment holding company City e-Solutions Limited (CES), entered into a joint venture with Whiteboard Labs LLC., a leading international travel industry CRS (Central Reservation System) and application development firm that specializes in improving top-line revenues for hotels.

Under the joint venture agreement, all of Whiteboard’s assets and products, research and development and patents, as well as its facilities and staff in Shanghai, China, and Houston and Austin, Texas will become part of Sceptre Hospitality Resources, LLC.  Earlier in the year, Sceptre, announced that its 620 hotels will utilize Whiteboard Labs’ Windsurfer CRS platform and now with this transaction, Sceptre becomes a direct provider of those CRS resources.

“We have admired Whiteboard’s state-of-the-art technology for a number of years and recently migrated our 620 hotels over to their Windsurfer CRS system after a comprehensive review of the current technology,” said Bill Linehan, Sceptre’s chief operating officer.  “With this acquisition, Sceptre now is a direct provider of those CRS resources. 

“Windsurfer gives our clients significant competitive advantages because it is the only technology that bridges the growing gap between what hoteliers need to enhance booking revenue and what customers have come to expect from technology.  We intend to aggressively expand our outreach to the hotel industry, not only for Windsurfer, but also for their other state-of-the-art products, including MotionNotes, a video messaging platform, and SpaLinx, a spa management and appointment booking application.  Under this new structure, Sceptre has the expertise to introduce these products on a global basis,” he said.

“This is a perfect fit for Whiteboard because it gives us the strength and backing of a major international company, as well as the marketing expertise to expand our market share,” said Rodrigo Jimenez, who will remain as the company’s chief technology officer, as well as joint-venture partner.  “We believe this new relationship will give us significant synergies and allow us to devote more time to research and development while supporting our existing client hotels.”

“Rod Jimenez and the Whiteboard team have been creators of leading-edge connectivity research and development for more than 15 years,” Linehan said.  “This acquisition marries that technology expertise with our operations and marketing expertise as well as the stability of a global hospitality enterprise, which will allow us to create and deploy leading technology services that support critical business needs within our industry. 

“As one company, we now provide a full range of CRS and marketing support for individual hotels, portfolios or brands to improve top-line revenues.  We now are the only company to offer a full array of services that connect capture and convert business via distribution services, revenue management, business intelligence and internet marketing services.  With Whiteboard’s expertise, we customize existing technology and build proprietary systems that meet our client’s needs.” 

About Sceptre Hospitality Resources

Sceptre Hospitality Resources maximizes revenues for hotels and resorts.  With the addition of Whiteboard Labs, the company now serves more than 4,000 properties on its reservation platform.  In addition to Windsurfer, a state-of-the-art central reservation system (CRS), Sceptre’s other software include MotionNotes, a video messaging platform, SpaLinx, a spa management and appointment booking application, HotelIQ business intelligence, custom internet marketing services and revenue management services.

Sceptre specializes in electronic distribution, reservations connectivity, channel management, site and search engine optimization, revenue management strategies, reservation call centers and direct booking engines.  Sceptre also provides interactive marketing programs, including website design, online advertising campaigns, social media solutions and other guest communication systems.  Additional information about Sceptre and hospitality industry marketing trends and tools may be found at the company’s website: sceptrehospitality.com

Social media is not a fad, it is here to stay and it is transforming not only the way we do business but also the way we recruit talent.  Our success in attracting top talent relies on how well we use the tools available through social media and how we market ourselves in those channels.

In a recent survey conducted by Jobvite, 89% of organizations said they will recruit through social media this year, while 95% said they have already recruited using tools such as LinkedIn. According to a study conducted by LinkedIn in 2010, only 18% of the fully employed pool of candidates was looking for new jobs using traditional techniques.  Trends and statistics support the shift from old fashioned passive recruitment, where we waited for applicants to reach us; we are moving to the new active recruitment, where we are active in the social media channels and in our community looking for talent and engaging both the passive and active applicants.  According to Mike Page with MitchelLake, a recruitment and sourcing firm, “Today we are seeing a third wave of job advertising as employers move away from “traditional” online channels into social media. The talk of the town at the moment is how online job advertisements are declining but there is little discussion of how job advertising through social media is gathering pace”.

Does this mean that Hcareers.com and newspaper ads are no longer useful tools?  The answer is no, they are still great tools that you should have available in your recruitment tool box and they need to be used wisely.  Hcareers continues to be the top job board for hospitality careers and newspapers still target your local community, but there are other cost effective and broader tools and those are available through social media channels.  Our active presence in channels like LinkedIn, Facebook, Twitter and other job boards like Hcareers and Indeed.com is critical to spreading a wider recruitment net to ensure that we attract top talent to our organization.

We must remember that our recruitment strategy should be: how are we going to get the applicant’s attention vs. how is the applicant going to get our attention.  Through social media recruitment we can reach a wider network of people and even if they are not looking they may know of someone who is; this is the modern version of networking.  We must embrace social media and ensure that our properties are active in those channels in order to ensure we are attracting the best candidates.

Since 2009, employees have been reluctant to leave positions, waiting for signals of economic recovery.  As revenues improve, our organization must reach out to our talented employees in a meaningful way to keep them motivated and excited about their jobs. Today’s employees are more inclined to stay with their current employer when they have a sense of purpose and they feel their efforts are genuinely appreciated.

According to September’s HR Magazine, The Deloitte Talent Edge 2020 study notes 65% of employees are actively or passively exploring the job market and 29% acknowledge “they will act on their turnover intentions and walk out the door”. The survey found escalating work demands have created environments where ees don’t feel appreciated or valued by superiors.

When benefits and compensation are competitive, recognition is our most powerful tool to ensure employee engagement and commitment to the organization.

In the hospitality industry, as none other, happy, motivated, engaged associates are the difference between mediocre performance and creating outstanding guest loyalty.  As employees have had to become more productive, working longer hours, fulfilling multiple roles, individual identity is influenced more by work than by family or community. Meeting employee needs reaches beyond just the workplace and affects the overall quality of life. High performing organizations recognize employees need an emotional and intellectual connection to their work.  To continue to outperform our competitors in this economic environment, our priority must be to recruit, select, retain, and inspire associates who love to serve people.

Through open communication and transparency, associates begin to understand the logic of company decisions and the stakes involved. Understanding the desired outcome and sharing the vision is key to organizational success.  Each individual should know the importance of their role and be recognized as a contributor to the end result.

There is no work relationship as important to the employee as their relationship with their manager. This relationship reflects their view of the leadership of the company, the values, the culture, the mission and goals. For the employee, the manager is the Company. We should carefully select our managers based on their like values and focus on their development. They should be recognized and rewarded for their ability to develop and lead their teams.

In order to build strong employee engagement and retain talent we need to:

• Create career opportunities
• Develop benchstrength
• Inspire trust in leadership
• Focus on top performers
• Communicate effectively

If we develop leaders and managers who are genuinely caring, provide the tools for our associates to perform their duties, and motivate them by recognition and constant feedback, we will inspire a new team of leaders in our future and retain our top performers.

Author of www.HotelLawBlog.com

Hotel lawyers: Are we at a turning point in the industry?

Our hotel lawyers were at The Lodging Conference in Phoenix last week, taking the measure of the hotel industry. It was pretty interesting. Some said August was a “turning point” and they were not referring to a good thing.

At the Hotel Law Blog, what happens in Phoenix does not stay in Phoenix. Here’s what we heard.

“It’s not just me. The market has changed in just the last 60 days!”

While many people at the Lodging Conference said recent market volatility had no impact on them, their transactions or their deals, this was clearly not the case for all.

A widely-held view was that it seems like someone hit the “PAUSE” button on hotel finance and purchase-sale transactions. Some fear a “reset” button may also have been tripped. The global market turmoil of the past 30-60 days triggered by the inability of our politicians to resolve deep U.S. budget issues, along with questions about political resolve by European governments to deal with their own problems continue to raise major issues.

And there are all the usual specters of big increases in taxes, continued high unemployment, sagging consumer confidence, rising labor costs, rampant inflation to deal with $14 trillion of debt, operating costs rising faster than RevPAR as well as war, plague and pestilence.

So here are some insights from industry leaders and vignettes JMBM’s hotel lawyers gathered at the Phoenix Lodging Conference. In many cases we have omitted the speaker’s names because I was not certain that the comments were intended for attribution.

INSIGHTS

Mark Woodworth

President, PKF Hospitality Research

I am having a hard time being negative.

Our worst case scenario based on a 25% chance of a recession will still show RevPAR growth at a 2.4% increase, which is long-term RevPAR growth average. Positive RevPAR growth is still positive.

Bruce Baltin

Senior VP, PKF Consulting USA

The fundamentals of the industry are holding up well.

On the transaction side, the first part of the year was very active. We were even doing feasibility studies on new hotels.

All markets will be capped out next year. But we saw a definite slowdown in late July and August. Things have slowed way down in the last 45 days.

A lot of people are saying, “The fundamentals are good, let’s keep moving.”

Thomas M. Geshay

SVP , Davidson Hotels & Resorts

Declining numbers creates uncertainty on how to underwrite a deal.

We were bidding to buy a property but our bid was 8% lower than the highest bidder. The seller went with the highest bid which needed financing. 60 days later, the high bid could not get debt. The seller came back to us, but by then our REIT partner was gone and we could not do the deal we could have done 60 days earlier.

Everything is taking longer. Everything we have done is all cash. No debt.

2010 was a great year. This will be a good year — a little bit off last year. We think next year will be great. Maybe this has made sellers more realistic with the REITs on the sidelines.

We think this is an opportunity for guys like us to be competitive without losing to the REITs every time.

James T. Merkel

President & CEO, RockBridge Capital, LLC

We don’t think over the next 5 years the economy will shrink.

Buy the right asset. Position and capitalize it correctly and you will be OK.

A lot of hotels need capital. There has been a standoff on the needed PIPs.

The cost of debt is attractive.

Bernard N. Siegel

Principal, KSL Capital Partners, LLC

We are trying to push rates, but in the last 30 days, that has not been achievable. There is a market reset going on like in 2008.

We thought to be in the middle of a very strong recovery off a low bottom, but this [development of the last 60 days] changes everything.

VIGNETTES

And here are some “vignettes” or stories recounted . . .

Vignette #1

An established hotel owner had a deal to buy a major urban hotel property and financing was in place, but was pulled at the last minute because the lender’s economist decided that the market was too volatile. The buyer only needed 50% LTV on the purchase (with a nice repositioning value-add play), but could not find any financing at better than 30% LTV. Volatile, unsettled markets killed the deal.

Vignette #2

An established owner-operator has started seeing group business cancellations. In one case the cancellation fee is greater than what it would have cost if they went forward with the group meeting, but the customer felt holding the event would send the wrong message.

But Tom Naughton, Managing Director and Principal of Clearview Hotel Capital, LLC had a different experience.

We are not seeing same cancellations we did in fall of 2008.

Destination group markets with incentive business, product launches, and the like — these are still intimidating markets. It is too early to tell on the group side.

Vignette #3

A bank lender in the hospitality industry started pulling back on lending, pulling term sheets and backing away from deals. They say that August was the “turning point.”

Vignette #4

One of the major brands’ reported that they have seen some deals falling out of bed in the last few weeks. They say that groups with capital with be the winners in this environment.

NOTABLE QUOTABLES

Gregory T. Mount

President, Richfield Hospitality, Inc.

We have been active on the acquisition front and will continue to do so.

I just returned from China where we are working on another 10-20 hotels.

The last 30 days has not had much of an impact on us.

We are working on bringing our parent company REIT over to the U.S. to acquire assets over the next 12-18 months.

Stephen L. Van

President & CEO, Prism Hotels & Resorts

Half of our business is distressed hotels. We are hiring a lot of people. We have 41 new hotels coming in between now and the end of the year.

Jack Levy

SVP Finance, Pyramid Hotel Group

How you are doing is market-by-market. For example, Hawaii was great in 1st quarter of 2011 but not good after the tsunami hit in Japan.

We have not seen cancellations yet and are optimistic about next year.

Kevin D. Mahoney

COO, Stonebridge Companies

We have not seen any impact from the recent market turmoil . But maybe this has leveled out the playing field for opportunities . And it is causing us to focus on what has to be delivered to our shareholders and owners by end of the year.

Paul Novak

President, Bedrock Partners

The challenge in the last 30-90 days is finding financing, even 50% financing.

The biggest challenge we all face is if and when financing market comes back.

This creates an opportunity for private funds with a lots of cash available.

Samuel C. Winterbottom CHA

SVP and Director Hospitality Practice Group

Recently, it seems like our main business has been selling assets for lenders. The properties sold range from a 325-room full-service hotel to closed Days Inns.

Buyer confidence has sagged in the past few weeks. They are all taking second look at their underwriting.

Banks are even more loath to carry back debt.

There has been a pause in the market for 60-90 days.

Jonathan Falik

Cantor Fitzgerald

If you are planning corporate events, you may think more about laying people off than sending 1,000 people to a seminar, or you may decide to push off the meeting from February to October.

ANONYMOUS QUOTES AND NOTES

“One of the real bright spots in the Conference was the prospect of EB-5 capital for new hotel development that JMBM Hotel Lawyer Catherine Holmes presented with her superstar panel.”

“These unsettled markets are reminiscent of the 1998 Russian ruble crisis.”

“Is it time to buy? Yes — particularly if you are ready for a 5-7 year hold, but not 1 year hold.”

“There is the prospect of massive inflation to solve the 14 trillion debt problem.”

“Operating expenses — like labor, health insurance, property taxes, and utilities — may be growing faster than RevPAR.”

“We are back to a case of the “haves” and “have nots” again.”

“Some people have good assets with good cash flow and no need to sell. They are not going to do anything right now.”

“There is pressure for deployment and redeployment of assets.”

“It’s not just me. The market has changed in the last 60 days”

“Everyone is taking a closer look, taking more time.”

What’s it all mean?

The lack of confidence in the economy, and roiling of the markets is having a significant impact on some, perhaps many. Where we go from here depends on how you see the next few months unfolding.

The fundamentals for the hotel industry are good! They are improving. The stage is set for continued improvement in ADR and profit margins. But some are having trouble in pushing rate while others are not.

Will our Congress resolve the postponed budget crisis or will the U.S. take another hit to its credit rating? And how about Europe? What will happen with Greece, Italy, Spain and Portugal? Will the euro survive? Can slowing economies in the US and Europe avoid slipping back into a global recession?

Will the political mess, volatile markets and business uncertainties keep leisure travelers home and lead businesses to curtail travel? Or will the bifurcated economy continue to see the employed continue to travel, and businesses proceed to book hotel rooms on pent up demand.

The next few weeks should tell us a lot. There is either a more level playing field and great opportunities for those with cash, or some very uncertain times ahead. Maybe a 3-5 year investment horizon solves those uncertainties. Or maybe it doesn’t.

________________________

This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We’ve done more than $60 billion of hotel transactions and have developed innovative solutions to help investors be successful in bidding for hotel acquisitions, and helping investors and lenders to unlock value from troubled hotel transactions. Who’s your hotel lawyer?

________________________

Our Perspective. We represent hotel lenders, owners and investors. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,300 properties all over the world. For more information, please contact Jim Butler at jbutler@jmbm.com or +1 (310) 201-3526.

Jim Butler is a founding partner of JMBM, and Chairman of its Global Hospitality Group® and Chinese Investment Group™. Jim is one of the top hospitality attorneys in the world. GOOGLE “hotel lawyer” and you will see why.

Jim and his team are more than “just” great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them.

——————————————————————————–

JMBM’s Global Hospitality Group®

The hotel lawyers in the Global Hospitality Group® of Jeffer Mangels Butler & Mitchell (JMBM) comprise the premier hospitality practice in a full-service law firm and are the authors of the Hotel Law Blog. We represent hotel owners, developers, investors and lenders and have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,000 properties worldwide. For more information about the Global Hospitality Group®, go to www.HotelLawBlog.com. For more information about full range of legal services provided by JMBM, go to www.JMBM.com.

HOTELS Editor-in-Chief Jeff Weinstein attended this week’s Lodging Conference in Phoenix and here offers a roundup describing the tone and mood of the attendees, a brief roundup of some of the commentary made during sessions, as well as reports on news and insights from private interviews.

The tone

Optimism about the near-term future of hotel performance in the United States remained in tact at the Lodging Conference, despite the fact that serious declines on Wall Street were making headlines at the very same time of the conference.

When asked by a show of hands at the opening general session whether they were optimistic or pessimistic about their fortunes, about 95% of the attendees weighed in expressing their optimism.

Privately, some developers expressed serious concerns about the strength and staying power of any industry recovery, ready to lower their 2012 RevPAR growth projections below 5% — some even lower. If this turns out to be the case, more troubled loans might not get further extensions, which will like lead to more real estate receiverships.

Kudos to the Arizona Biltmore team for producing a great event, especially the pool party, which this year was over-the-top with creative and tasty food presentation. The party is one of the true highlights of the year among the numerous hotel investment conferences.

Opening session

In between the bashing of U.S. President Barack Obama by some of the general session panelists, some more responsible heads put things into perspective. Here are the editor’s live Tweets from the discussion:

Hyatt’s Haggerty: putting your balance sheet to work to drive your brands a necessary business model. Kickin it old school. Like it.

PIPs: most panelists agree brands asking for too much, wasting owners’ money, in many cases. Phones in the water closet!

Ashford’s Monty Bennett: The debt question is about to face us again. Will administration extend and pretend again.

Everyone: Block and tackle well and you will manage through the malaise.

Private interviews

A majority of the editor’s time is spent doing interviews with the top executives in attendance and making news during the conference. Again, here is a summary:

Richfield Hospitality: The hotel management company has made 11 deals this year with four more hotels almost ready to be announced, according to Bill Linehan, chief marketing officer. Richfield expects to more than triple its original size of 20 managed hotels by the end of 2015. It currently stands at 34 hotels.

Driftwood Hospitality Management: Following a US$400 million joint venture with an affiliate of Apollo Global Management, it just announced adding for hotels to its portfolio. Executive Vice President Brian Quinn said Driftwood continues to look for bigger, full-service deals in the United States and estimates a 20% growth path.

Choice Hotels International: CEO Stephen Joyce calls the growth of its Ascend Collection a real bright spot with expectations of reach 100 hotels from the current 48 by 2014. The other big story is the growth of its new-build Cambria Suites brand, which announced three big development deals on the heels of two deals in New York City. Choice is using its balance sheet to get Cambria deals done and has some 30 solid deals in the pipeline.

Hilton luxury: Matt Sparks is one month into the job as head of development for Hilton’s luxury brands. Right now he is focusing on driving home several development deals with announcements imminent. He expects to double the size of Conrad within a few years, pointing to nine under development in China. Waldorf Astoria is up to 23 hotels with expectations to reach 35 by 2014 with a global focus on Asia and the Middle East.

HEI Hotels & Resorts: Senior Vice President of Development Russ Urban says the company has about US$250 million to spend from its third fund and expects opportunities to pick up early 2012. He says there are still some bid-ask spread issues but expects upcoming maturities to create natural distress and consequent opportunity. He adds the values have come down 10% to 20% since April and RevPAR expectations have been adjusted to account for still-cheap leisure business, stumbling group business but strong corporate transient.

Wyndham Hotel Group: CEO Eric Danziger highlighted growth in Qatar and the UAE, as well as Turkey. The pipeline is also active in South America and Thailand. Danziger adds that Wyndham’s new Dream brand has a global pipeline, while he expects its Night concept to debut as a design-driven 2.5-star play next year. Three Planet Hollywood hotels have been announced and several more urban Tryp-branded hotels are advancing in North and South America. Lastly, a new-look Howard Johnson brand should be launched in April.

Luxe Hotels: Founder Efrem Harkham says a 4th branded hotel is very close in Dallas, while a fifth is under development in Miami. He is bullish about corporate business in 2012.

La Quinta: Mexico has been a bright development spot with 20 hotels now under development and more to come, according CEO Wayne Goldberg. Latin America, in general, is a big area of growth for the brand that also opened 30 hotels in the United States this year. India and spots in Asia are now under review for future growth.

DENVER, Colo., September 9, 2011—Richfield Hospitality, a leading hotel management company, today announced that it will assume management responsibilities for Tempo Miami, a 56-room luxury downtown resort hotel. 

“This contract is an important addition to our portfolio of lifestyle hotels,” said Greg Mount, president of Richfield Hospitality.  “It is a stylish, up-to-the-minute property that is perfect for the global jetsetter visiting the upscale Miami market.

“Having been open for less than two years, Tempo Miami has already gained an impressive following, and we are confident that with our marketing and operational expertise, we can help it secure its position as one of Miami’s hottest, luxury boutique hotels,” Mount continued.  

Tempo Miami is situated in the heart of Miami’s cultural district and reflects the city’s sense of hip, urban style.  Tucked into a soaring, 67-story building, the hotel features an 8,000 square foot Spa and Amuse, a dining destination offering healthy, sustainable options for  breakfast, lunch and dinner.  The 14^th floor pool and skydeck,  along with the lobby- level Gallery, can accommodate groups and weddings for up to 200 people.

Each room and suite at Tempo Miami is lavishly appointed and features floor to ceiling windows, a large balcony and expansive views of Biscayne Bay and downtown Miami.  All rooms and suites are generously equipped with free-standing soaking tubs, 42-inch flat screen televisions, iPod docking stations and luxurious 310-thread count linens.

Tempo Miami is  located at 1100 Biscayne Blvd., near the American Airlines Arena and across from Bicentennial Park and two blocks from the Adrienne Arsht Center for the Performing Arts.  

About Richfield Hospitality

Richfield Hospitality, Inc. is a leading hotel management company with a premier track record of maximizing profitability and improving asset values for hotel owners.  Richfield and its affiliates offer proven solutions and expertise to approximately 550 hotels and resorts.  From hotel operations and property management to electronic distribution and interactive marketing, Richfield achieves superior operating results through its strong commitment to owners, guests and associates.  Based in Denver, Richfield is part of City Developments Limited, one of the world’s largest real estate, hotel investment and technology conglomerates with a market capitalization exceeding US$7 billion.  Additional information about Richfield Hospitality may be found at the company’s website, www.richfield.com.

Hotels are spending more to spruce up rooms, lobbies and workout facilities after three years of holding the line.

Spending by U.S. hotels on improvements will increase 30% to $3.5 billion this year, New York University’s Tisch Center for Hospitality, Tourism, and Sports Management newly estimates.

It’s the first increase since 2008 and is driven by a recovery in customer demand and a push from national chains, the research says.

Hotels spent aggressively in the years leading up to the 2008 recession. They installed amenities that have since become standard at even midprice chains: thicker beds , Wi-Fi Internet access, flat-screen TVs and redesigned lobbies.

The estimated $5.5 billion spent on improvements in 2008 was an industry record, says Bjorn Hanson, NYU professor and author of the study.

But capital investment swooned quickly when the recession kept travelers at home. Capital spending on improvements fell 40% in 2009 and an additional 18% last year, Hanson says.

Many hotels are ripe for investment, Hanson says.

“They are getting to the point where travelers are starting to notice,” he says. “Carpeting, wall covering, upholstery — they’re starting to show their wear. So now is a good time.”

Greg Mount, president of Richfield Hospitality, says spending on improvements has increased at about half of the 30 hotels he operates. “You’re seeing those dollars that should have been put in the last three or four years,” he says. “There’s a lot of deferred maintenance.”

Investment also is coming in from new owners who have bought foreclosed hotels that need renovation.

Richfield Hospitality, for instance, bought a 565-room Sheraton in Bloomington, Ind., earlier this year and is spending about $30,000 per room on upgrades. “(The previous owner) didn’t have the cash to complete product improvement,” Mount says.

National hotel chains have been tolerant with local owners of their brand-name properties but are starting to demand upgrades, some owners say.

Kirby Payne, president of HVS Hotel Management, which owns a group of hotels, says he’s been able to defer some upgrades on some of his properties for two years.

Now, he says, he’s installing flat-screen TV sets in five properties, including a Holiday Inn Express, Hampton Inn and Country Inn & Suites.

Despite the new spending, Hanson says, many hotels will remain cautious, as profit margins remain at 18-year lows on a per-room basis and occupancy is expected to remain at or below 60%.

Read Full Article Here

Richfield recently had a 2012 budgeting process call. Afterwards, I went to the Web to see what the experts are saying for 2012. PwC is always a very reliable source when it comes to projections and below is a hot off the press article that I ask you to read very carefully.

We must believe in our abilities, systems and strategic thinking to achieve in times like these. Planning is critical. If we always think about who are the individual customers and groups and take care of them, they will continue to return. That is part of what will make us even more successful next year. And equally, if not more importantly, who are the replacement/target customers we will need if the economy stays fragile in this uncertain climate. If we do the strategic planning correctly and know our completion better than they know themselves, we will win.

Of course, this article is not a specific recommendation for your own property’s growth but rather a vote of confidence that our hotel industry will grow again next year. Zero basing your budget along with your strategic plans will guide you! 

RevPAR growth momentum expected to yield to new economic reality according to PwC US lodging industry forecast

NEW YORK, August 30, 2011 – An updated lodging forecast released today by PwC US shows that the lodging recovery is largely intact, yet a resetting of the economic outlook has lowered expectations of revenue per available room (RevPAR) growth for the remainder of the year. The reduced outlook is due to an economy that faces more fundamental and persistent headwinds than economists previously anticipated, and this environment weighs on the lodging industry outlook, reducing expectations of RevPAR growth for the remainder of 2011, and into 2012.

PwC’s updated lodging industry forecast now expects RevPAR growth of 7.5 percent and 6.2 percent in 2011 and 2012, respectively. PwC’s updated quarterly lodging forecast reflects a revised macroeconomic forecast from Macroeconomic Advisers, LLC, which now expects a major reset of US economic growth. Weak reading of recent economic data, including a revision of real gross domestic product (GDP) information, now confirms that the recent slowdown, which Macroeconomic Advisers previously thought was concentrated in the first half of 2011 and attributable to temporary factors, started sooner and has been sharper than previously anticipated. As a result of this new view of a fundamental and persistent slowdown in economic forces, Macroeconomic Advisers’ outlook for GDP growth was substantially lowered to 1.6 percent and 2.8 percent in 2011 and 2012, respectively.

The reduced outlook for the lodging sector reflects the balanced consideration of weaker economic fundamentals on the one hand, and solid year-to-date lodging trends on the other. The steady growth of lodging demand during recent months, even as the economy slowed, demonstrates the underlying momentum of lodging’s recovery. This recovery of lodging demand is expected to continue, but will be tempered by the weaker macroeconomic outlook. As a result, lodging demand in 2011 is now expected to increase by 4.6 percent, which combined with still benign supply growth of 0.8 percent, is expected to boost occupancy levels to 59.8 percent. Increased confidence of occupancy gains are expected to be offset by the weak economic outlook, resulting in an average daily rate (ADR) increase of 3.6 percent in 2011. In 2012, ADR recovery is expected to play a bigger role in RevPAR recovery, resulting in a 5.1 percent and 6.2 percent increase in ADR and RevPAR levels, respectively.

“Current uncertainty about the future economic environment, both at home and abroad, is expected to create a drag on RevPAR recovery during the second half of this year and into next. We continue to monitor rapidly changing econometric data and evaluate monthly lodging industry metrics, which continue to show wide fluctuations, based on geography and chain scale,” said Scott D. Berman, principal and U.S. industry leader, hospitality & leisure, PwC US.”

A full copy of PwC’s US Lodging Forecast can be accessed by visiting: http://www.pwc.com/us/en/asset-management/hospitality-leisure/publications/index.jhtml

About the PwC Network
PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. See www.pwc.com for more information.

DAVIS, Calif./DENVER, Colo., August 8, 2011—Richfield Hospitality, a leading hotel management company, today announced that it will partner with Presidio Companies, a Northern California based hotel development and asset management company, to operate the 75-room Hyatt Place UC Davis in Davis, CA. 

“This contract marks the second hotel we manage for Presidio Companies and our first Hyatt Place property,” said Greg Mount, President of Richfield Hospitality.  “This property offers the perfect confluence of the right flag at the right location and spearheads our entry into the campus hotel niche.”

“This hotel already is a gathering place for the UC Davis community, so we’ll be working to strengthen that relationship and make it a showcase for the Hyatt Place lifestyle brand,” Mount continued.   “It’s also the only upscale select-service hotel in the area, and we will  ensure that the quality of service matches the quality of the property and the Hyatt standards.”

Hyatt Place hotels are specially designed to accommodate today’s lifestyle.  Every guest room is equipped with a state-of-the-art media center that allows electronic devices to plug directly into the 42-inch, high-definition television, giving guests instant access to the technological amenities they’re accustomed to accessing at home or in the office.  Additional amenities, including complimentary Wi-Fi access, a StayFit@Hyatt fitness center, a coffee and wine bar serving Starbucks® specialty coffees and premium wine and beer, and the Grab ‘n Go case stocked with freshly made sandwiches and salads, accentuate the lifestyle brand.

Hyatt Place UC Davis is located at 173 Old Davis Rd. Extension, Davis, on the southeast campus of UC Davis, adjacent to the new conference center.  The hotel is across the street from the Mondavi Center for the Performing Arts and the Robert Mondavi Art Institute, and is minutes from downtown Davis with easy access to the state capitol in Sacramento and the San Francisco Bay area.

About Presidio Companies

Headquartered in Fairfield, Calif., Presidio Companies seeks and acquires under-performing, franchised properties in the United States to redevelop and transform them into successful, sustainable properties.  Presidio also selectively develops new-build hospitality projects in high-barrier-to-entry markets.  Presidio Companies has developed over $300 million of hospitality projects in the past eight years, always focusing on consistently high levels of achievement in every endeavor.  The Presidio Companies services include development and construction supervision, brokerage, investment, and hotel asset management.

About Richfield Hospitality

Richfield Hospitality, Inc. is a leading hotel management company with a premier track record of maximizing profitability and improving asset values for hotel owners.  Richfield and its affiliates offer proven solutions and expertise to approximately 500 hotels and resorts.  From hotel operations and property management to electronic distribution and interactive marketing, Richfield achieves superior operating results through its strong commitment to owners, guests and associates.  Based in Denver, Richfield is part of City Developments Limited, one of the world’s largest real estate, hotel investment and technology conglomerates with a market capitalization exceeding US$6 billion.  Additional information about Richfield Hospitality may be found at the company’s website, www.richfield.com.

    

Property Recently Completed $48 Million Renovation Program

FORT WORTH, Texas/DENVER, August 1, 2011—Richfield Hospitality, a leading hotel management company, today announced the company signed an agreement to manage the 431-room Sheraton Fort Worth Hotel & Spa, in Texas, on behalf of developers and owners, Presidio Companies, a hospitality development and  asset management company.  The property recently underwent an extensive, top-to-bottom, $48 million renovation.

“Presidio Companies is highly regarded as strategic, expert developers of hotel real estate properties,” said Greg Mount, president of Richfield Hospitality.  “The hotel, the second Sheraton property in our portfolio, is well-located, a block from the Fort Worth Convention Center, convenient to DFW International Airport and Love Field, and within walking distance of numerous restaurants  and world-class entertainment venues.  The recent renovation lasted two years and focused on all guest rooms and public spaces, including the addition of the all new, state-of-the-art Link@Sheraton Lobby.  Coupled with the latest technological advances that meeting planners will appreciate, we predict the Sheraton Fort Worth Hotel & Spa will quickly become a revenue-driving leader in the Texas market.  This is our first contract with Presidio, and we look forward to exploring other opportunities together in the future.”

“Richfield Hospitality’s extensive track record of success with similar complex properties in major downtown markets made them a compelling choice as manager,” said Guneet Bajwa, chief operating officer, Presidio Companies.  “The recently completed, extensive renovation affords guests the opportunity to enjoy an exclusive, unique experience in downtown Fort Worth that includes a stylish, 8,000-square foot luxury fitness center and spa, featuring a yoga room, Pilates studio and six treatment rooms and a Shula’s 347 Grill.”

Located at 1701 Commerce Street down the street from the Fort Worth Convention Center, the Sheraton Fort Worth Hotel & Spa is near Dallas/Fort Worth International Airport and is convenient to the Museum of Modern Art and Rockwood Golf Course.  The hotel features 22,000 square feet of flexible meeting and exhibit space, capable of accommodating 1,000 people, and onsite dining at Shula’s 347 Grill. 

Guest rooms offer 32” flat panel high definition televisions; rich, deep-grain wood furniture and 21st century art; complimentary high-speed wireless Internet access; and signature Sheraton Sweet Sleeper™ Bed.  Those staying on the Club Level can enjoy private access to the Club Lounge and receive free morning breakfast and evening hors d’oeuvres with cocktails.

About Presidio Companies

Headquartered in Fairfield, Calif., Presidio Companies seeks and acquires under-performing, franchised properties in the United States to redevelop and transform them into successful, sustainable properties.  Presidio also selectively develops new-build hospitality projects in high-barrier-to-entry markets.  Presidio Companies has developed over $300 million of hospitality projects in the past eight years, always focusing on consistently high levels of achievement in every endeavor.  The Presidio Companies services include development and construction supervision, brokerage, investment, and hotel asset management.

 About Richfield Hospitality

Richfield Hospitality, Inc. is a leading hotel management company with a premier track record of maximizing profitability and improving asset values for hotel owners.  Richfield and its affiliates offer proven solutions and expertise to approximately 500 hotels and resorts.  From hotel operations and property management to electronic distribution and interactive marketing, Richfield achieves superior operating results through its strong commitment to owners, guests and associates.  Based in Denver, Richfield is part of City Developments Limited, one of the world’s largest real estate, hotel investment and technology conglomerates with a market capitalization exceeding US$6 billion.  Additional information about Richfield Hospitality may be found at the company’s website, www.richfield.com.