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T H E
M A G A Z I N E
F O R
H O T E L
E X E C U T I V E S / J U L Y ~ A U G U S T
THE
CANADIAN PUBLICATION MAIL PRODUCT SALES AGREEMENT #40063470
2015
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STAYING AGILE IS CRITICAL. FORTUNATELY, OPENING
MORE THAN 1,100 NEW* HOTELS HAS KEPT US IN SHAPE.
In the past six years, Hilton Worldwide has opened more than 1,100 new hotels around the world, bringing us
to more than 4,000 hotels in 90 countries today.* In Canada, we have 104 hotels open from coast to coast with
a growing pipeline of over 40 signed projects. Impressive growth, made possible by our ability to adapt to the
world’s increasingly complex business environments. As a result, we’ve developed a wealth of experience creating
and operating the most award-winning portfolio of hotels in the industry. Not a bad workout for a 95-year-old.
For development opportunities in Canada, please contact Tom Lorenzo, Vice President and Managing Director of
Development (+1-203-463-3407, thomas.lorenzo@hilton.com), and Jeff Cury,
Senior Director of Dev elopment (+1-514-695-6798, jeff.cury @hilton.com).
STAY AHEAD
hiltonworldwide.com
*From January 2008 to January 2015
© 2015 Hilton Worldwide
Volume 27, Number 5
| July/August 2015
Contents
Features
8 CHART TOPPERS
Strategic acquisitions propel Canada’s market leaders to achieve strong top-line growth By Jackie Sloat-Spencer
11 GROWING THE BRAND
Scan to view
our website
With the installation of a new president helming
Marriott Hotels of Canada, and the acquisition of Delta Hotels and Resorts, the stage is set for aggressive growth By Rosanna Caira
13 THE 2015 TOP 50 REPORT LISTINGS
26 BATHROOM BLISS
Timeless appeal and lavish showers make for happy hotel guests By Iris Benaroia
31 THE LONG HAUL
Extended-stay lures developers with its higher occupancy and draws customers to the comforts of home
By Denise Deveau
35 SAFETY IN NUMBERS
The top-down approach to guest security
By Jennifer Febbraro
COVER DESIGN BY MARGARET MOORE
39 STATE YOUR PREFERENCE
Departments
2 EDITOR’S PAGE
3 CHECKING IN
44 HOTELIER: Philip Meyer,
Rosewood Hotel Georgia,
Vancouver
Hotel operators are leveraging technology to offer
customized experiences By Laura Pratt
JULY/AUGUST 2015 HOTELIER
1
EDITOR’S PAGE
TIME TO GROW
I
t’s summer, and the living is easy. Or is
it? With summer in full swing, there’s
plenty of activity to keep the hotel
industry abuzz. In Toronto, the Pan Am
Games (July 10 to 26) and Parapan Am
Games (August 7 to 15) promise to bring
an influx of tourists into Canada’s major
hub, and will test the city’s mettle, and the
hotel industry’s ability to ensure the safety
and security of its guests (see story on p. 35).
Throughout the country, activity abounds.
The installation of David Goldstein as president of the Vancouver-based Canadian
Tourism Commission last winter, followed by the announcement of its
rebranding as Destination Canada at the annual Rendez-vous Canada
marketplace, held in Niagara Falls, Ont. certainly promises to usher in a
new era for the association. And, of course, the federal government’s plan
to invest $30 million over three years to the Connecting America tourism
campaign, means there will be funds available to Destination Canada and
its partners to finally start promoting this country as it should. As Goldstein
said, “We will be looking to use innovative approaches to entice increasing
numbers of Americans to travel to Canada.” Certainly, it’s just what the
doctor ordered for this great, vast country.
Additionally, there are a host of other changes being made that should
help solidify Canada’s global tourism position. For example, the Canadian
government recently announced changes to the country’s visa policies,
including the rollout of the Electronic Travel Authorization project in
2016, following which the visa requirement will be partially lifted for
Mexican, Brazilian, Romanian and Bulgarian travellers. Later this summer,
a new visa office will also be opened in Guangzhou, China.
The greater influx of tourists bodes well for Canada’s dynamic hotel
industry. And, not surprisingly, there’s plenty of news on the hotel development side as well. Mergers and acquisitions continue to alter the hotel
landscape in Canada. For example, Marriott International’s acquisition
of Delta Hotels and Resorts should stimulate synergies between the two
brands, fuelling continued growth in Canada while also creating opportunities for expansion of the Canadian brand into new, international markets
(see story on p. 11). Certainly, these days, it’s all about growth.
And what better time to talk about growth than in this current issue,
which features our signature “Top 50 Report” (see story on p. 8). As always,
the report is a barometer of success in the industry. As the industry’s best
jockey for position, one-upping each other with strategic mergers and
acquisitions, new brands, and a slew of product innovations, it’s clear that
it’s all in a day’s work, no matter what the season.
ROSANNA CAIRA
MITCH KOSTUCH FOUNDER
Feb. 11, 1931 – Oct. 23, 2014
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ADVISORY BOARD:
David McMillan, AXIS HOSPITALITY INTERNATIONAL;
Bill Stone, CBRE; Anthony Cohen, CRESCENT HOTELS —
GLOBAL EDGE INVESTMENTS; Charles Suddaby,
CUSHMAN & WAKEFIELD LTD. — HOSPITALITY
& GAMING GROUP; Christiane Germain, GROUPE
GERMAIN HOSPITALITE; Ryan Murray, HARBOUR
HOUSE HOTEL — NIAGARA’S FINEST INNS; Michael
Haywood, THE HAYWOOD GROUP; Lyle Hall, HLT
ADVISORY; Drew Coles, INNVEST REIT; Scott Allison,
MARRIOTT HOTELS CANADA; David Larone, PKF
CONSULTING; Geoffrey Allan, PROJECT CAPITAL
MANAGEMENT HOTELS; Stephen Renard, RENARD INTERNATIONAL HOSPITALITY & SEARCH CONSULTANTS;
Anne Larcade, SEQUEL HOTELS & RESORTS
HOTELIER is published eight times a year by Kostuch Media
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FOLLOW US:
For daily news and announcements: @hoteliermag on Twitter
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and Hotelier magazine on Facebook
Checking In
THE LATEST INDUSTRY NEWS FOR HOTEL EXECUTIVES FROM CANADA
AND AROUND THE WORLD
INDIGENOUS TRAVEL EXPERIENCES
THE COOL FACTOR
American tourists are the focus of the CTC’s sleek
new tourism strategy and brand reinvention
The Rendez-vous Canada show, held in
May at the Scotiabank Convention Centre
in Niagara Falls, Ont. attracted 1,600
delegates and more than 450 buyers
BY JACKIE SLOAT-SPENCER
from 28 countries, who engaged in a
T
face with Canadian tourism sellers. This
he former Canadian Tourism Commission is hoping a chunk of change
from the federal government will stimulate a new wave of U.S. tourism.
In May, after Prime Minister Stephen Harper pledged $30 million towards
attracting U.S. tourists to Canada, Minister of State Maxime Bernier (above right)
took to the stage at Rendez-vous Canada to announce the agency’s rebranding.
“Destination Canada is more than just a name change. The new corporate
identity changes the way we are telling Canada’s story — and speaks more to
our vision and more to exploring. It’s a new kind of organization, with deep roots
with a tremendous legacy of innovative marketing and creative partnerships,”
says CTC president and CEO David Goldstein (above left), clarifying that the
CTC will remain the legal name for the commission.
According to Destination Canada’s year-end report, Canada’s tourism revenues
grew by 4.7 per cent in 2014, reaching $88 billion. Overnight trips to Canada
from the U.S. reached 11,479 visits last year, which grew by one-per-cent over the
previous year. The funds will go towards the new Connecting America campaign,
which aims to attract an additional 680,000 visitors during the next three years.
Heralded as a new chapter for the tourism industry, the agency is evolving
from a paid media marketing organization to a content marketer. “This is all
about becoming a media organization in a way that fundamentally changes how
we tell Canada’s story,” Goldstein explains. “Content is being consumed. Brands
are integrating content in new ways. We will be the centre of the content we
want people to absorb, to take advantage of and to listen to.”
In addition to aggressively revamping its partnership model, Destination
Canada will test a strategy called Follow The Global Consumer, which hones in
on the American consumer’s interest level in visiting Canada by using listening,
data and modelling tools to gauge interest and then deliver customized Canadian content that reflects the consumer’s interest level, needs and influences.
The fundamentals are strong for the initiative and rebranding efforts, which
will take shape in November, sums up Goldstein. “Americans are beginning
to travel again post-recession, American passport ownership has doubled since
2002 and we are enjoying increased air access. Our message is clear — Canada is
not cold, it’s cool!”
speed-dating style of meeting face-toyear, the show welcomed the Aboriginal
Tourism Association of Canada, which
brought 17 First Nations tourism organizations to the showroom floor and generated more global awareness about
Canada’s Aboriginal tourism industry.
ACHIEVEMENT
UNLOCKED
“Six years ago, in June of 2009, the HAC
(Hotel Association of Canada), together
with several industry stakeholders, met
with Prime Minister Harper seeking his
government’s support for our industry.
At the time our country was in depths
of a recession and the future looked
bleak. But we stuck together and persevered,” says Tony Pollard, president of
the Ottawa-based association, after the
announcement of the federal government’s investment towards the CTC’s
new initiative. “The fact is the government recognizes the importance of travel
and tourism and this is reflected in the
federal budget and the announcement
of $30 million dollars for marketing of
Canada in the United States. This is a
major achievement and all hoteliers can
take pride in this.”
3
COMING
EVENTS
July 25-29: Global Business Travel
Association 2015, Orange County
Convention Center, Orlando, Fla. Tel: 888574-6447; email: kdavis@gbta.org;
website: gbta.org
Sept. 9-10: Canadian Resort Conference,
Pan Pacific, Vancouver. Website:
canadianresortconference.com
Sept. 27-29: Luxury Hotel Conference
and Hospitality Spa Wellness Expo,
Orlando Convention Center, Orlando, Fla.
Website: luxuryhotelconference.com
Sept. 30: Kostuch Media’s Icons &
Innovators Breakfast Series with chef
Susur Lee, Toronto Region Board of
Trade. Email: dpricoiu@kostuchmedia.
com; website: kostuchmedia.com
Oct. 18-19: Connect 2015, Vancouver
Convention Centre West, Vancouver. Tel:
604-628-5655; email: nora@connectshow.
com; website: connectshow.com
FOR MORE EVENTS,
visit http://bit.ly/Hotelierevents
ORHMA GETS DOWN TO BUSINESS
A drop in U.S. tourists, stiff
global competition, the higher
cost of food and utilities and a
minimum wage increase have
hammered hospitality operators
over the last several years, said
Tony Elenis (pictured), president and CEO of the Ontario
Restaurant Hotel & Motel
Association (ORHMA), at
the group’s AGM last month.
Explaining how operators can
turn around their businesses,
Elenis said, “Today, leadership calls for being adoptive
to change and more than ever, the area of opportunity lies in hiring the best
people out there to do the job — the ones that are stronger and more competent than the employer who is hiring them.” During the meeting at the Four
Points by Sheraton Meadowvale in Mississauga, Ont., the ORHMA also
welcomed new Board members, including incoming chair Steven Robinson,
president of Travelodge Canada based in Calgary; director to the executive
committee Stacy King, GM of the Hampton Inn by Hilton in London, Ont.;
and director to the executive committee Dan Morrow, senior director, Food &
Beverage, Maple Leaf Sports & Entertainment in Toronto.
A BETTER PROPERTY.
AN EVEN BETTER
OPPORTUNITY.
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W I T H
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in a low-cost design that’s high on
style giving you the performance
edge you need in today’s market.
Incentives available for single and
multi-unit development.
Call 905.206.7316 or go to
ChoiceHotelsFranchise.ca to learn more
©2014 Choice Hotels Canada Inc. All rights reserved.
4
ChoiceHotelsFranchise.ca
FOOD FOR THOUGHT
Excess food is no longer relegated to
the compost. Ottawa-based Green
Key Global and Longueuil, Que.based La Tablée des Chefs have
partnered to promote sustainable
development in the hotel industry. Hotel operators are encouraged to help people in need enjoy
quality food by donating ready-to-eat
surpluses. La Tablée des Chefs will
pair hotels with a local food shelter
and operate the food-recovery logistics. The process is a simple, safe and
effective tool with positive impacts
on the environment and the community. And hotels that support the
reduction of food waste will be recognized in the Green Key Eco-Rating
Program — a graduated rating system
designed to recognize green hotels,
motels and resorts committed to
improving their environmental and
fiscal performance.
Smart from the inside out.
When you have hundreds of rooms to think about, you need
a faucet you don’t have to think about. Built to last, designed to
stand out, and backed by a customer-first culture.
Learn more at symmons.com.
SOARING TO NEW
HEIGHTS
Toronto-based Four
Seasons Hotels &
Resorts has raised the
bar of luxury travel.
The company’s new
private jet is staffed by
a group of 10, including
an executive chef, sous
chef, concierge and a
global guest-services
manager. “Our aim is
to recreate the hotel
experience on the Four
Seasons Private Jet,
which means creating innovative meals
using fresh ingredients,
served on the finest tableware and linens, all with impeccable Four Seasons’
service,” said chef Kerry Sear. “The only real difference is that occasionally we
have to do a little juggling when there’s turbulence.” Each journey includes air
travel, ground transportation, planned excursions, all meals and beverages,
and luxurious accommodations at Four Seasons hotels and resorts worldwide.
The plane is also available for private charters.
Compact systems
that deliver big results.
CALLING IT QUITS
Visitors to the Whistler Blackcomb
ski resort can now breathe a little
easier. The resort has implemented
a new policy that prohibits smoking
anywhere on its property. “We have
made the decision to introduce a
smoke-free policy at Whistler Blackcomb to preserve the pristine alpine
environment,” said Dave Brownlie,
president and CEO at Whistler Blackcomb. “We also recognize that as a
leader in the outdoor adventure and
wellness industry and as the largest
employer in the Whistler community,
we have a responsibility to our guests
and staff to provide a safe and healthy
environment for work and play. We
believe implementing this new policy
aligns with this goal.” While the
policy prohibits guests from smoking
on Whistler Blackcomb property, staff
are permitted to smoke in designated
areas until May 2016 as they adjust
to the new rules. During the transition period, management will provide
resources to help staff quit smoking.
Miele‘s assortment of professional laundry equipment provide the
best results, yet maximize consumption and space efficiency.
• Washer-extractors and tumble dryers, 6.5 kg load capacity and up
• Complete wash and dry cycle time of only 85 minutes
• Side-by-side or stacked to use less than 4.5 sf
• New PM 1210 flatwork ironer offering high volume throughput in a compact footprint
• Exclusive product features for exceptional ergonomics, simple control and a perfect finish
Info: 1-888-325-3957
www.mieleprofessional.ca
6 JULY/AUGUST 2015 HOTELIER
Hotelier_4.625x4.625_v1.3.indd 1
Choice Hotels, based in Rockville,
Md., has opened its first prototype dual-brand property. The
recently constructed Sleep Inn/
Mainstay Suites Meridian in Mississippi addresses multiple travel market
demands, from business to leisure
to extended-stay…Toronto-based
Colliers International Hotels has
18/06/2015 11:48:37 AM
PHOTOGRAPHY OF FOUR SEASONS JET BY KIRSTEN HOLST
InBrief
announced the sale of the
288-room Westin Bristol
Place Toronto Airport
to Markham-Ont.-based
Easton’s Group of Hotels/
The Gupta Group…The
128-room Four Points
Moncton, in New Brunswick has opened following
a $4-million renovation…
The Microtel Inn &
Suites by Wyndham in
Whitecourt, Alta. is the
newest MasterBuilt Hotels
property to join Ecostay, a
program used to purchase
carbon offsets in support
of emission-reducing
projects…A new Motel 6
has opened in Lethbridge,
Alta. The 56-room property is newly renovated and
features free Wi-Fi, free
parking and an outdoor
pool…The Sheraton Red
Deer Hotel in Alberta is
the recipient of the 2015
Action Hero Award from
Alberta’s Parkland Airshed
Management Zone, for its
efforts to improve air quality…The Sheraton Vancouver Wall Centre has
commenced a $37-million
renovation to its guestrooms and common areas.
It is slated for completion next March…Two
new Westin hotels have
been signed in Alberta.
The 250-room Westin
Calgary Airport will be
located directly on airport
property and will feature
30,000 sq. ft. of meeting
space, a restaurant and
a lounge. The 225-room
Westin Edmonton
Gateway will be located
near the Anthony Henday
Expressway, offering easy
access to downtown and
vicinity…Parsippany, N.J.based Wyndham Hotel
Group has launched a
new US$100-million
loyalty program, which
includes TV and radio
spots, digital media assets
and on-property collateral
at more than 7,500 hotels
worldwide.
go, San Diego, the Caribbean and Singapore.
Supply
Side
People
Jennifer Etherington has
been appointed partner
and head of Vancouverbased Anticipate Hospitality’s revenue management
consulting practice. She
is also VP of Membership
for the McLean, Va.-based
Hospitality Sales &
Marketing Association
International, BC Chapter
Board of Directors…The
Global Group, a furniture manufacturer based
in Toronto, has launched
a new brand identity in
Alain Berthelot
Alain Berthelot is the
new executive chef at
Gîte du Mont-Albert, a
newly renovated 60-room
hotel inside the Gaspésie
National Park in SainteAnne-des-Monts, Que.
Berthelot has worked in
several restaurants and
hotels during his career,
most recently as executive
preparation for its 50th
anniversary next year…
Bedding and bath products
from Quebec City-based
Le Germain Hotels and
Alt Hotels are now available at simons.ca, a Quebec
City-based retailer…
The Hospitality Sales &
Marketing Association
International and the
Institute for Hospitality
& Tourism Education &
Research at Florida International University have
introduced RO2Win, an
online revenue optimization course that trains
hospitality professionals to
increase hotel revenue at
their properties…Mississauga, Ont.-based Rational
Canada recently celebrated
the opening of its newly
redesigned culinary centre,
which can accommodate
more than 30 people.
THE IRWIN INN
Martin Sinclair
chef at Manoir St-Castin,
in Lac-Beauport, Que…
Martin Sinclair has been
appointed GM at the Four
Seasons Hotel Vancouver. During his 30-year
tenure with Four Seasons
Hotels & Resorts, Sinclair
has crossed the Pacific
numerous times working
at properties in Australia,
New Zealand, Bali, Chica-
The Irwin Inn is a year round luxury resort with 800’ of
lakefront, beautifully appointed suites, traditional cottages
and fine dining. An icon of the Kawarthas Lakes region on
prestigious Stoney Lake, just two hours from Toronto.
The 124 acre property includes 38 suites, the owner’s
custom log home, nine-hole pitch-and-putt golf course,
outdoor pool, tennis court, two beach areas and equestrian facility.
Significant zoned development land allows for massive
expansion of the resort.
Offered at $4.25 million.
Michael Cowan, Sales Representative (416) 925-9191
Chestnut Park Real Estate Ltd., Brokerage
Irwin_Inn HS.indd 1
7
2015-06-26 9:43 AM
THE
2015
CHART-TOPPERS
Strategic acquisitions propel Canada’s market leaders to achieve strong top-line growth
H
oteliers padded their
portfolios last year as
they gobbled up the
competition through
a slew of acquisitions.
Marriott’s purchase of Delta Hotels
and Resorts perfectly illustrates the
combine-and-conquer mentality that’s
been shaping the hotel landscape
during the past year — a timely strategy, given the proliferation of new
brands emerging from the industry’s biggest players. Canada’s top 50
hotel companies marked the end of
2014 with $18.7 billion in sales, up
from $17.9 billion in 2013, collectively demonstrating a renewed focus on
business strategy. Those who posted
8
BY JACKIE SLOAT-SPENCER
strong year-over-year increases lead the
pack by building strong partnerships.
“For us, it was a very strong, busy
year,” boasts Felix Seiler, COO of
Halifax-based Holloway Lodging
Corp., which acquired fellow Halifax
company Royal Host Inc. in July,
adding 17 units and 2,382 rooms to its
portfolio. (The deal also included the
master franchise rights to Canada for
Travelodge, which it sold earlier this
year to Superior Lodging Corporation
and Waramaug Hospitality Canada.)
The $16.4-million transaction expanded Holloway’s portfolio of select- and
limited-service properties throughout
Canada and made headway into the
mining markets of northern Ontario
and the corporate markets in Toronto
and Ottawa. “Before, we had hotels
in Alberta and B.C. and on the East
Coast, but acquiring Royal Host gave
us a much more national portfolio,
especially in these times where oil and
gas have taken their toll. We are in a
much better position today to weather
that storm,” adds Seiler.
Holloway Lodging wrapped up the
year with $97.8 million in sales, a
60-per-cent increase over the previous year and bumping up Holloway’s
rank from number 31 to number 25
on Hotelier’s “Top 50 Report.” “We
have a philosophy that we can’t generate demand, necessarily, but we can
take care of the things that we can
actually control,” says Seiler. “The good
thing about the merger was it gave us
the scope to actually lead and manage
our own hotels, while before we were
owner-operators; more of a third-party
management.”
The team went to work upgrading
or converting several assets, including transforming a Ramada in Whitehorse to a Days Inn. Its Super 8 in
Timmins, Ont. received a contemporary design overhaul, including a
rustic brick facade, new fitness centre
and energy-friendly E-Star Windows,
LED lighting and sensor technology
thermostat controls.
Meanwhile, the Holloway team
expanded its regional sales teams to
drum up more business for the portfolio of 35 properties in Canada, and
selling several under-performing assets
or shutting down operations that
generated a negative cash flow, such as
its food, beverage and banquet operations at the Travelodge properties in
Ottawa and Yellowknife.
South of the border is a made-inCanada success story. John O’Neill says
the Vancouver-based O’Neill Hotels
& Resorts Ltd.’s impressive year-overyear increase is due to a partnership
with American Hotel Income Properties REIT LP (AHIP), a company he
co-founded with his brother Robert.
“The essence of our growth is our
relationship with our largest client,
AHIP, who continues to grow. And as
they grow, we grow,” he says. O’Neill
has an exclusive agreement to manage
AHIP’s properties. O’Neill Hotels added
23 new hotel-management contracts
last year and is spending $17 million to
upgrade the U.S.-based assets.
It was the 2007/’08 financial crisis
that led the Vancouver-based team to
look south for development opportunities, O’Neill explains. “By 2010 there
was a lot of opportunity in the U.S.,
the Canadian dollar was strong and
U.S. hotel values were down. That’s
when we shifted our focus as a company
to the Unites States.” With only four
properties in Canada, including its
flagship Westin Grand Vancouver and
the Westin Resort & Spa in Whistler,
B.C., the team will continue to expand
south. “We would like to grow more
(Clockwise, from top)
TownePlace Suites by
Marriott, London, Ont.;
Days Inn Whitehorse; Super 8,
Timmins, Ont.; and Super 8,
Timmins, Ont.
9
TownePlace Suites by Marriott, London, Ont.
in Canada, but right now our main
pipeline is the U.S. We will be adding
at least 14 hotels in the U.S. between
now and August 31,” O’Neill adds.
“AHIP will be acquiring and we will
be managing.”
The company wrapped up the year
with 67 properties and $206.9 million
in sales, a 52.8-per-cent increase over
its 2013 sales and rising five spots on
the list. Revenue-management has
been key to its success. “You can’t
save your way to success; you have to
build the top line. You can only cut
expenses so much and it will come
back to haunt you in terms of guest
experience and employee satisfaction,”
O’Neill advises.
Anil Taneja credits 2014’s upward
RevPAR trajectory for Palm Holding’s
44-per-cent jump in sales, from $25
million in 2013 to $36 million last
year. The team also acquired six
hotels, infusing capital to achieve
double-digit RevPAR growth.
“Apart from those six hotels, we
rebranded two hotels in 2014,” adds
the president of the Toronto-based
company, whose rank increased by
one point on the report. “We rebranded the Destination Inn in Waterloo
(Ont.) to the Four Points by Sheraton,
and we rebranded the Travelodge in
London (Ont.) to a Marriott TownePlace Suites.” Palm Construction, the
group’s building subsidiary, knocked
down the lobby walls to create an
open-concept space. The team also
added all new furniture, fixtures and
equipment, such as fully equipped
kitchens with stainless steel appliances and granite countertops, and
10
revamped the porte cochère. Taneja
says the project cost between $30,000
and $70,000 per key.
While hoteliers enjoyed RevPAR
growth last year, they did struggle
to find adequate staff. “One of the
challenges we’re having is access to
labour. We have a shrinking labour
pool in our industry, and profit
margins aren’t strong enough to
support higher costs of labour,” notes
Taneja. Last summer’s Temporary
Foreign Worker Program reforms
decreased the number of foreign
worker applications by 75 per cent, so
operators are looking elsewhere for
staff. The Palm team is zeroing in on
students, partnering with Ontario’s
University of Guelph and University
of Waterloo to bridge students from
co-op placements to full-time employees. “We’re trying to counteract [the
labour shortage] by creating a culture
within the organization; a culture of
unity, a culture of fun. The ultimate
goal is making people excited to come
to work,” Taneja says.
As 2015 unfolds, the management
team is looking for opportunities in
under-branded markets. “We’re interested in select-service and we’re interested in extended-stay. The challenge
with both is we don’t see a strong
conversion with the bottom line. So
we’ll do full-service on a very select
base. But select-service and extended-stay is fantastic, and as Canadians travel more they need to be more
educated on what extended-stay is. As
we get more extended-stay hotels in
the market we are creating demand,”
sums up Taneja.
Being a diligent buyer means not
always purchasing properties at the
top of the cycle, and constantly evaluating your options, adds Holloway’s
Seiler. “Make sure you buy something
that doesn’t just fit into your portfolio
but also makes good financial sense.”
He adds: “One of the philosophy/
strategies is, we look at a hotel that
doesn’t perform as well from a cashflow basis and we see if there is a buyer
out there…. If we get a good price and
we can buy something that is better
for us or fits better into the portfolio,
then we’ll continue to do so.” u
SPROUTING ORGANICALLY
The hotel industry was frenetic with acquisition activity in 2014, but several of Hotelier’s
Top 50 companies proved organic growth
translated to top-line results. Coral Springs,
Fla.-based
Canadas
Best Value
Inn, a subsidiary of
Vantage
Hospitality,
reported a
26-per-cent increase in sales over the previous year, with $28.6 million and 33 units in
Canada. “Canadas Best Value Inn continues
to hit the ‘highs’ and the ‘lows’ that hotel owners are seeking. We have a low-cost business
model, making us one of the most affordable franchises in the limited-service sector,
and we have a very high level of personal
service,” says Bill Hanley, group president,
International Division. The company’s revenue-management program helps maximize
income by providing market, competitor and
property-specific information.
Meanwhile, the Toronto-based Skyline
Hotels & Resorts advanced to $71.1 million
in sales, up 25 per cent from $56.7 million in
2013, thanks to a focused effort on reinvigorating its branded resort properties through
renovations as well as expanding its residential and retail footprints. During the year,
it focused on enhancing its online planning
and booking platform and is implementing
an online booking platform for resort activities to streamline the trip planning experience. It also made significant upgrades to its
Horseshoe Resort in Barrie, Ont., guestroom
renovations at Deerhurst Resort in Huntsville,
Ont., and renovated the lobbies of Toronto’s
Pantages and Omni King Edward hotels.
Innovation rang true at Toronto-based
Realstar Hospitality, which not only unveiled
its first modular hotel, but continued its
aggressive development strategy with 12
new properties in Vernon, B.C., Leamington,
Ont., Dalhousie, N.B., and its first conversion
Motel 6 in Canada, in Regina. It ended the
year with $40.9 million in sales, a 24-percent jump over 2013. “It was an exciting year
for us, thanks to the support of our growing
franchise community. With a record breaking
number of hotels joining our portfolio in 2014,
the pipeline of franchising opportunities in
markets across the country continues to flourish,” says Irwin Prince, president and COO of
Realstar Hospitality. “We’ll continue with rapid
expansion of the Days Inn, Motel 6 and Studio
6 hotel brands with 20 projected openings
in 2015.”
NEWSMAKER
GROWING
THE BRAND
With the installation
of a new president
helming Marriott Hotels
of Canada, and
the acquisition of
Delta Hotels and Resorts,
the stage is set for
aggressive growth
BY ROSANNA CAIRA
W
hen Marriott International announced
it was acquiring the
Toronto-based Delta
Hotels and Resorts
chain this past January it marked the end
of an era. Over the years, the Canadian
brand that Bill Pattison started in 1962
had become a Canadian hotel institution,
garnering success in the full-service hotel
market all the while attracting accolades
for its people and its practices.
Now, with Marriott International
owning the brand, the little Canadian
chain becomes part of an American hotel
dynasty and is poised for growth, not
only in Canada but around the world.
NEW AND REFINED Delta Quebec (directly
above); Delta Ottawa City Centre (top and far left);
Delta Bessborough (centre); and Delta Kingston
Waterfront Hotel (middle bottom)
In the months since the headlinemaking acquisition, Marriott Hotels
has gone through a number of significant changes. Last month, for example,
Michael Beckley, SVP of Lodging Development, who was instrumental in much
of the company’s growth in Canada for
14 years, retired. Marriott veteran Don
Cleary was installed as the company’s
new president of its Canadian operations, assuming the role earlier this spring.
11
Delta Quebec (above); Don Cleary (above right)
The affable Cleary, who has been
with Marriott International for 25
years both in the U.S. and in Asia,
including a minor stint as area VP
in Canada in 2009/’10, says he’s
having fun overseeing the company’s
Canadian portfolio, while looking
forward to several wholesale changes.
While undoubtedly the entire
Marriott team will miss Beckley,
Cleary is confident in the team’s abilities. “We have a very good development team in place up there; they’re
certainly very active,” he said during
a telephone interview with Hotelier
from Marriott’s headquarters in
Bethesda, Md., in June.
One of Cleary’s first priorities is to
bring Delta Hotels into the Marriott
system. “It was with the Delta acquisition that the company decided to
put a full team in Canada. We’re now
fully staffed with two area teams:
one based in Mississauga (Ont.) and
another one in Calgary.” The company will have a fully dedicated leadership team based in Canada focused
solely on Canada, the president says.
Boasting 24 employees including
leaders and support staff, the teams
will also leverage the support systems
at the Marriott headquarters.
Cleary will be based in Mississauga, Ont., spending the majority of his
time there. His mandate is “to have
Marriott become Canada’s favourite travel company, and that means
becoming preferred in many ways,”
he says. One goal is to be the largest
hotel company, and “we’re substantially there now,” says Cleary. With the
Delta acquisition, Marriott’s portfolio comprises 125 hotels, including 37
12
Delta units. “We anticipate opening
approximately 18 units this year, five
of which are already open, another
18 next year — those are signed deals
that are in the pipeline,” says Cleary.
All told, around the world, Marriott
has 4,200 hotels in 80 countries, with
19 different brands in its portfolio.
In terms of Canada, “We want
to be the preferred company to do
business by the owner community in
Canada,” boasts Cleary. To achieve
this, it’s important to have solid financial performance, growing RevPAR
index, customer preference and owner
return. “We have the distribution
now and the systems that Marriott
brings to our hotels and to the Delta
hotels. We want to be preferred with
our owners with communication and
responsiveness, and now having a fully
dedicated team in Canada enables
that,” says Cleary. “We also want to
be a preferred employer. To be successful we need to get the best talent. We
think Delta had a lot of great talent
as we did. There’s a real compatibility in the culture. The combination
of the two of us with histories of
winning awards as preferred employers in Canada gives us a real advantage,” he explains.
Cleary will also be focused on
making the hotel chain a “Canadacentric company doing business
in Canada. Up till now, given our
dominance in the U.S., with certain
success we have run Canada as an
adjunct of the U.S.; now, given our
size and the acquisition of Delta,
Canadian employees will be running
the Marrriott business in Canada,”
he says.
As for speculation the Delta
flagship property downtown might be
reflagged as a Marriott, Cleary dispels
that notion. “It’s a brand builder; we
like it as a Delta. We do not have any
plans to rebrand any existing Delta
hotels. They will remain Delta,” he
asserts. “We plan to grow the brand.
We bought [the brand] for a couple
of reasons: to give us presence in
the full-service sector in Canada, in
markets where we were not already.
But we also bought it for its growth
potential. We do intend to make
Delta a global brand, similar to what
we’ve done with many of the brands
we’ve acquired over the years.”
Last month, Marriott International introduced Delta to the U.S.
hotel community at the New York
Hotel Investment Conference. “That
generated much interest,” explains
Cleary. “The owner and development
community has expressed great interest to grow with the Delta brand in
Europe and Asia. Nothing definitive
is signed yet but I can tell you there is
interest,” he adds.
Cleary is buoyed by the dynamics
of the hotel industry. “It’s a healthy
time for the hotel industry for favourable supply and demand and that
seems to be true in Canada. Much of
the growth in Canada today is in the
select-service area, where we have a
very strong portfolio of brands. That
will take us into many secondary and
tertiary towns. There’s still room to
grow our full-service brands, especially Delta,” says the new president. “We
would describe Delta as a flexible fullservice brand, a better brand to get
into secondary cities in Canada that
might have proven more difficult to
do with our flagship Marriott brands,
which would have had less flexibility.”
As for the future, Cleary looks
forward to growing the Canadian
market. “It’s a small hotel community; everyone knows everyone. The
challenge for me is to build upon the
relationships we already have, relying
on our reputation and our integrity
to do business. Once you establish
those relationships, it’s a rewarding
community to do business in. That’s
the opportunity.” u
THE
2015
METHODOLOGY
The team at Hotelier magazine strives to present as accurate an to both companies’ ownership structure, we will only be reporting the
overview as possible of Canada’s hotel industry. This spring, surveys
were emailed to operators across the country, asking hotel executives
to indicate the number of units and gross sales of their companies
as of Dec. 31, 2014 as well as expansion plans for the coming year.
Keep in mind that Canadian-owned companies report sales for all
their units in Canada and internationally (denoted on the chart
with a ‡) while American subsidiaries only report sales achieved
in their Canadian units. Please note that Four Seasons Hotels and
Resorts, and Fairmont Raffles Hotels International (FRHI) continue
to be listed as Canadian companies because they are headquartered
in Canada. However, given that there have been significant changes
Canadian unit sales of these two hotel giants on next year’s edition of
“The Top 50 Report.” Keep in mind that there is some duplication
on the list given the complex structure of the hotel landscape.
In cases where companies refused to divulge sales figures, Hotelier
has provided estimates based on the company’s historical data,
industry growth averages as well as average unit volume sales. This
ensures consistency in our report and provides as accurate a representation as possible of the major players in the industry. More than
20 years after Hotelier produced its first “Top 50 Report,” it continues
to be the most authoritative barometer of the leading companies in
the hotel industry.
RANK
COMPANY
UNITS GROSS GROSS
’15 ’14
2014 SALES
SALES
2014 (millions) 2013 (millions)
BUSINESS OPERATIONS
11 Four Seasons Hotels
95 ‡*$4,400.0 ‡*$4,300.0
and Resorts
Orlando,
Toronto, ON
22 FRHI Hotels & Resorts
114 ‡*$4,100.0 ‡*$3,994.6
Toronto, ON
A privately owned company, Four Seasons Hotels and Resorts manages three Canadian
units and 92 internationally. During the past year Four Seasons opened new properties in
Moscow, Dubai and Johannesburg. Five new properties are slated to open this year includ-
ing units in Bahrain, Bogota, Casablanca and Seoul. 33 Starwood Hotels & Resorts
68
$912.2
$884.0
Worldwide Inc. Stamford, CT
A publicly traded company, Starwood Hotels & Resorts Worldwide Inc. owns, franchises and manages 68 hotels in Canada and 1,156 units internationally. Starwood Hotels & Resorts Worldwide Inc. is the master franchisor of brands such as Sheraton, Westin, Four
Points by Sheraton, Le Méridien, Aloft, Element and Luxury Collection. In 2015, Starwood
plans to open Four Points by Sheraton in Regina, Surrey, B.C. and Moncton.
45 Wyndham Hotel Group
505
$849.9
$791.9
Parsippany, NJ
A publicly traded company with 505 properties in Canada and 7,140 outside of Canada with
brands such as Wyndham Hotels and Resorts, Wyndham Garden Hotels, Tryp by Wyndham,
Wingate by Wyndham, Microtel Inn & Suites by Wyndham, Ramada, Baymont Inn & Suites,
Days Inn, Super 8, Howard Johnson, Travelodge and Knights Inn. The Wyndham Hotel Group
has a master franchisee/franchisor relationship with Days Inn and Travelodge.
A privately owned company, FRHI Hotels & Resorts manages 20 units in Canada and 94
internationally. It is the master franchisor of Fairmont Hotels & Resorts, Raffles Hotels &
Resorts and Swissôtel Hotels & Resorts. During the past year, FRHI has opened units in
Turkey, China, Indonesia and Russia. The company is projecting 50 per cent growth during
the next five years, most of it internationally, executing on a planned development pipeline and signing new hotel management agreements globally.
*Denotes estimate ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units
13
RANK
COMPANY
UNITS GROSS GROSS
’15 ’14
2014 SALES
SALES
BUSINESS OPERATIONS
54 Marriott Hotels of Canada
85
$784.7
$746.6
Mississauga, ON
A subsidiary of Marriott International, Marriott Hotels of Canada is the franchisor and management company of 85 hotels in Canada and 4,099 internationally. Marriott Hotels of Canada opened six properties in Canada in 2014 and plans to open 18 more in 2015. In April, its parent company acquired the Delta Hotels and Resorts’ brand, and the management and franchise business from Delta Hotels Limited Partnership, a subsidiary of British Columbia Investment Management Corporation (bcIMC).
66 InterContinental Hotels
173
*$776.0
*$736.0
Group (IHG) Atlanta, GA
InterContinental Hotels Group is a publicly traded company that owns, franchises and manages 173 units in Canada and 4,667 internationally. It is the master franchisor of
InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn Hotels,
Holiday Inn Express, Staybridge Suites and Candlewood Suites. Early this year, IHG acquired
Kimpton Hotels & Restaurants Group LLC. IHG and Maplewood Hotels & Resorts announced
plans to develop 15 new-build Candlewood Suites properties in target markets throughout
Canada during the next few years.
710 Hilton Canada Co. 107
*$620.6
$543.0
Mississauga, ON
Hilton Canada Co. is a subsidiary of Hilton Worldwide, a publicly traded company owned by
Blackstone Group LP. It is the franchisor of 107 hotels in Canada and 4,234 internationally,
with brands such as DoubleTree by Hilton, Embassy Suites by Hilton, Hampton/Hampton Inn
& Suites by Hilton, Hilton Garden Inn, Homewood Suites by Hilton and Home2 Suites by
Hilton. During the past year Hilton introduced a new lifestyle brand, Canopy by Hilton. It
also has 11 properties under construction.
88 Best Western International
197
*$574.0
*$566.0
Phoenix, AZ
Best Western International is a private company that licenses 197 properties in Canada and
3,734 outside of Canada. During the past year it introduced a new urban, boutique brand,
Vib and announced its first projects in Chicago and Miami. It also launched a new
soft brand, BW Premier Collection, consisting of carefully selected high-quality hotels in
primary markets. It plans to add 25 units in Canada in 2015.
97 InnVest REIT
110
$534.8
$594.4
Mississauga, ON
InnVest REIT is a publicly traded real estate investment trust (REIT) with 110 properties in
Canada. In 2014, it acquired the Hyatt Regency Vancouver and earlier this year, the company acquired a 20-per-cent interest in the Fairmont Royal York, Toronto. It also completed
renovations to 58 Comfort Inns and select full-service hotels.
1011 Choice Hotels Canada Inc. 309
$526.0
$509.0
Mississauga, ON
Choice Hotels Canada Inc. is a private company that is the master franchisor of the Comfort,
Comfort Suites, Quality, Sleep Inn, Clarion, Econo Lodge, Rodeway Inn and the Ascend Hotel
Collection, with 309 units in Canada. During the past year it continued an ongoing $65million renovation program at 85 Comfort properties and added units including Clarion in
Medicine Hat, Alta.; Comfort Inn & Suites in Gananoque, Ont.; Quality properties in
Hawkesbury, Niagara Falls and Hamilton, Ont.; and an Ascend Hotel in Gatineau, Que. In
2015, the company plans to add 24 properties in Canada.
119 Delta Hotels and Resorts
37
$476.2
$545.0
Mississauga, ON
A privately held company with 37 properties in Canada. In April, Marriott International
acquired Delta Hotels and Resorts’ brand, and the management and franchise business from
Delta Hotels Limited Partnership, a subsidiary of British Columbia Investment Management
Corporation (bcIMC). During the past year, Delta opened its flagship property, Delta Toronto
hotel in downtown Toronto as well as the Delta Waterloo in Ontario. Marriott plans to
expand its portfolio with the addition of 18 units in 2015 between the two brands.
1212 Atlific Hotels
59
$461.0
$424.0
Montreal, QC
A privately owned hotel-management company, Atlific Hotels has 59 units in Canada. During
the past year Atlific added several properties to its portfolio including the Radisson Plaza
Hotel Saskatchewan in Regina, Days Inn & Suites Thunder Bay, Ont., Days Inn Thunder Bay
North in Ontario, Hilton Garden Inn Toronto Airport West/Mississauga in Ontario and TownePlace Suites by Marriott Red Deer in Alberta. In 2015, new additions to its portfolio
include the Hilton Garden Inn Montreal Airport and Element Vancouver Metrotown in British
Columbia. (Y/E Fiscal November)
1313 Oxford Properties Group 7
$427.3
$375.0
Toronto, ON
A privately held company, and a subsidiary of the Ontario Municipal Employees Retirement
System (OMERS), Oxford Properties Group is an owner, developer, management company,
lessor and real-estate company with seven properties in Canada. During the past year, it
acquired the Park Hyatt Toronto and its properties are undergoing renovations and
operational enhancements.
14
*Denotes estimate
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RANK
COMPANY
UNITS GROSS GROSS
’15 ’14
2014 SALES
SALES
BUSINESS OPERATIONS
1414 Superior Lodging Corp./ 162
$260.0
$250.0
MasterBuilt Hotels
Calgary, AB
Superior Lodging Corp./MasterBuilt Hotels is a privately held company that operates as an
owner, developer, management company, franchise company and real-estate developer with
162 units in Canada. In 2015, it acquired the master license rights to Travelodge Canada and
Thriftlodge, and partnered with Boca Raton, Fla.-based Waramaug Hospitality Canada LLC
to form a new joint entity, Superior Lodging Development TL Corporation to oversee the
growth of the Travelodge brand in Canada. There are 21 Super 8 and Microtel-branded
hotels in the pipeline.
1516 Sandman Hotel Group
46
*$207.6
*$198.6
(Northland Properties) Vancouver, BC
A division of Northland Properties, which operates Sutton Place hotels as well as a collection of restaurant brands. Sandman Hotel Group has 44 units in Canada and two in the U.K.
In 2015, Northland Properties plans to open two units, as well as expand into the U.S. with
a Sandman Hotel in Dallas.
1621 O’Neill Hotels & Resorts Ltd. 67
‡$206.9
‡$135.4
Vancouver, BC
A private, Canadian-owned company that manages four properties in Canada and 63 units
internationally. During the past year, the company added 23 hotel-management contracts
in the U.S. as part of an exclusive agreement with American Hotel Income Properties REIT.
In 2015, the company plans to add 20 properties to its portfolio outside of Canada.
1715 Coast Hotels
29
$201.5
$212.9
Vancouver, BC
A private company that owns, franchises and manages 29 properties in Canada and 11
internationally. Coast Hotels is the master franchisor of Coast Hotels properties. During
the past year, it added three properties to its stable including the Coast Canmore Hotel &
Conference Centre in Alberta (formerly a Radisson), two units in the U.S., and renovated
several of its properties. In 2015, Coast Hotels plans to add two units in Canada and two
internationally. (Y/E Fiscal September)
1819 SilverBirch Hotels & Resorts
15
$196.2
$162.0
Vancouver, BC
A private company that owns, develops and manages 15 properties in Canada with brands
such as Marriott, Best Western, Hilton, Choice Hotels, Radisson and the Lethbridge Lodge
and Conference Centre in Alberta. The company opened four units in 2014 and added new
SilverBirch Conference Centres in Edmonton and Halifax.
19- Temple Hotels Inc. 32
$188.4
-
Winnipeg, MB
Temple Hotels Inc. is a publicly traded company with 32 properties in Canada. During the
past year the company acquired six properties and invested in property upgrades.
It also internalized its asset and property-management functions.
2018 Days Inns - Canada
105
$180.0
$171.0
Toronto, ON
A privately owned company, Days Inns - Canada is the master franchisor of Days Inn in
Canada, with a master agreement with Days Inns Worldwide, Inc. It has 105 units in
Canada. Days Inns plans to open between 10 and 15 new units in Canada in 2015.
2117 Fortis Properties Corporation
23
*$178.0
$178.8
St. John’s, NL
Fortis Properties is a wholly owned subsidiary of Fortis Inc., a publicly traded company,
with 23 properties in Canada. In September 2014, Fortis Inc. announced it would pursue a
strategic review of its hotel and commercial real-estate business. In May, it sold its commercial real estate portfolio, including The Delta Brunswick hotel to a subsidiary of Slate
Office REIT, for $430 million.
(Y/E Fiscal November)
(Y/E Fiscal October)
16
BRAND-WIDE
RevPAR
11% ABOVE COMPETITION
Best Western International
EXECUTIVE
RESIDENCY
MORE
INDUSTRY
AWARDS
THAN ANY OTHER BRAND
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POWER OF A
GLOBAL BRAND
BEST WESTERN INTERNATIONAL
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*Numbers are approximate and may fluctuate. Each Best Western® branded hotel is independently owned and operated.
Best Western and Best Western marks are service marks or registered service marks of Best Western International, Inc. ©2015 Best Western International, Inc. All rights reserved.
RANK
COMPANY
UNITS GROSS GROSS
’15 ’14
2014 SALES
SALES
BUSINESS OPERATIONS
2220 Carlson Rezidor Hotel Group
26
*$159.0
*$159.0
Minnetonka, MN
A subsidiary of Carlson, Carlson Rezidor Hotel Group is a privately owned company that is
an owner, franchisor, management company and franchise company with 26 units in Canada
and 1,065 internationally. Its global brands include Quorvus Collection, Radisson Blu,
Radisson, Radisson Red, Park Plaza, Park Inn by Radisson and Country Inns & Suites by
Carlson. The company plans to add three units in Canada in 2015 and 72 internationally.
2323 Easton’s Group of Hotels
13
$109.6
$103.8
Markham, ON
A private company that is the owner, developer and management company of 13 hotels in Canada. During the past year, the Easton’s Group acquired the Holiday Inn Toronto
International Airport and opened a TownePlace Suites in Thunder Bay, Ont. It also launched
its first dual-branded Marriott hotel in Markham, Ont.
2422 Executive Hotels and Resorts
16
$105.0
$105.0
Vancouver, BC
A privately held company with 16 units. During the past year it updated the guestrooms at
the Executive Airport Plaza Hotel in Richmond, B.C. The company plans to open the
Executive Hotel Le Soleil in New York this year.
2531 Holloway Lodging Corp. 35
$97.8
$61.0
Halifax, NS
A publicly traded company that is the owner and management company of 35 properties in
Canada and one internationally, with brands such as Best Western, Days Inn and Suites,
Holiday Inn, Super 8 and Hilton. In 2014, Holloway acquired Royal Host Hotels and Resorts,
comprising a portfolio of 17 hotels with 2,382 rooms across Canada, as well as the
Travelodge Canada franchise business. The company sold the Travelodge franchise
business in March. During the past year, the company converted its Hilton property in
London, Ont. to a DoubleTree by Hilton and renovated its Super 8 in Timmins, Ont.
2624 Accor Canada Inc. 8
$95.0
$90.4
Mississauga, ON
A subsidiary of Accor S.A. in Paris, France, Accor Canada Inc. owns, franchises, and
manages eight Sofitel and Novotel properties in Canada. Though the company does not
plan to expand in Canada in 2015, its parent company, Accor S.A., recently aligned with
Huazhu Hotels Group to open 350 to 400 new hotels under the Accor brands in the next
five years in China.
2726 Groupe Germain Hôtels
10
$73.8
$74.9
Montreal, QC
A private company that owns 10 units in Canada. Groupe Germain recently expanded its
Alt concept to Winnipeg and became the operator of Hôtel La Ferme in Baie-Saint-Paul,
Que. It plans to open two properties in 2015, and expand the Alt brand with the opening of
an Alt hotel in Ottawa in 2016.
2827 Genesis Hospitality Inc. 10
$73.5
$73.5
Brandon, MB
Genesis Hospitality is a private company that owns 10 full-service hotels in Canada in
Manitoba and Ontario, including the Victoria Inn in Brandon, Man., The Royal Oak Inn &
Suites in Brandon and Best Western Inn on the Bay in Owen Sound, Ont.
2933
Skyline Hotels and Resorts
5
$71.1
$56.7
A publicly traded company and a subsidiary of Skyline International Development Inc.,
Toronto, ON
Skyline Hotels and Resorts manages five properties in Canada and one internationally. Last
year, the company acquired the Bear Valley Mountain Resort in California. It plans to open
M6_FranAds_Hotelier_WithBleed.pdf
1
2015-06-24
2:15 PM
one new property in Canada and one internationally in 2015.
*Denotes estimate
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RANK
COMPANY
UNITS GROSS GROSS
’15 ’14
2014 SALES
SALES
BUSINESS OPERATIONS
3030 Airline Hotels
9
$67.5
$61.7
Saskatoon, SK
A privately owned company with nine properties in Canada, Airline Hotels purchased the
Ambassador Hotel & Conference Centre in Kingston, Ont., and recently opened East 75
Restaurant & Lounge at Four Points by Sheraton Edmonton South and Runway 25 Steak
Lounge at Valhalla Inn Thunder Bay in Ontario. It also renovated the Travelodge Edmonton
West, Travelodge Hotel Saskatoon and its Country Inn & Suites properties in Winnipeg,
Regina and Saskatoon. (Y/E Fiscal October)
3135 Pomeroy Lodging
16
$67.2
$55.5
Grande Prairie, AB
Pomeroy
Pomeroy Lodging owns, develops and manages 16 units in Canada. Last year, the company opened the Holiday Inn Express in Fort St. John, B.C. It plans to open three units including
the Pomeroy Inn and Suites in Fort Vermilion, Alta. and launch a new brand, Hotello by
this summer.
3229 Concord Hospitality
12
*$65.0
$65.0
Enterprises Company
Raleigh, NC
Concord Hospitality Enterprises Company is a private company that is the owner, developer
and management company of 12 units in Canada and 71 internationally. During the past
year, Concord Hospitality Enterprises Company opened or assumed management of seven
properties. In 2015, the team anticipates opening 13 new premium select-service properties.
There are currently nine hotels under construction and a pipeline totalling more than $660
million in new hotel investment.
3334
A publicly traded, Canadian-owned company that owns, develops and manages 24
properties in Canada and one unit internationally.
Lakeview Management Inc. 25
‡$63.7
‡$55.6
Winnipeg, MB
34 32
Gouverneur Inc. Montreal, QC
11
*$57.0
*$57.0
A private company that is the owner, franchisor and management company of 11 hotels.
Drake Devonshire
Prince Edward County
Photography: Kayla Rocca
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*Aloft data as of YE 2014 and disclosed in March 2015 FDD (RevPAR = $94.59). Claim based on a comparison of data disclosed in 2011-2015 FDDs for Hilton Garden Inn, Courtyard by Marriott and Hyatt Place. We did not independently audit or otherwise verify the accuracy of the RevPAR data contained in each of the other brand FDDs.
RANK
COMPANY
UNITS GROSS GROSS
’15 ’14
2014 SALES
SALES
BUSINESS OPERATIONS
35- Sunray Group
22
$52.7
-
Toronto, ON
Sunray Group is a privately owned company that is the owner and management company of 22 units in Canada. The group added nine properties in 2014. It has three Marriott
properties under renovation in Windsor, Ont., Oshawa, Ont., and Montreal, as well as a
Four Points by Sheraton and four Choice Hotels properties. The company plans to add five
units this year. (Y/E Fiscal September)
3640 New Castle Hotels & Resorts
7
$47.7
$40.4
A private company that owns, manages, franchises and develops seven properties in
Shelton, CT
Canada and 15 internationally. The company plans to add one unit in Canada in 2015 and
four internationally.
3739 Sawridge Group of Companies
4
$44.0
$43.5
Edmonton, AB
Sawridge Group of Companies is a private company that owns four properties in Canada.
The company is set to open a Best Western Plus in Fort McMurray, Alta. in 2015.
3838
Rosdev Hospitality
7
‡$43.5
‡$48.0
Montreal, QC
A privately owned, Canadian owner, developer, management company, lessor and real
estate company with three properties in Canada and four internationally. Rosdev Hospitality
is a division of The Rosdev Group. The company is set to add a Courtyard by Marriott in
Montreal, and one additional unit internationally. It also converted one property in the
U.S. last year.
3942 Realstar Hospitality Corp. 26
$40.9
$32.9
Toronto, ON
A privately owned company with 26 properties in Canada. Realstar Hospitality Corp. is the
master franchisor of Motel 6 and Studio 6 in Canada through a master agreement with G6
Hospitality LLC. In 2014, Realstar Hospitality Corp. opened two franchised properties. The
company plans to open between eight and 10 properties in Canada in 2015.
‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units
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stay, they offer a place where guests truly benefit from the home-like amenities designed
specifically with extended stay travelers in mind. With an efficient operating model including a
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©2015 InterContinental Hotels Group. All rights reserved. Most hotels are independently owned and operated.
RANK
COMPANY
UNITS GROSS GROSS
’15 ’14
2014 SALES
SALES
BUSINESS OPERATIONS
40- Urgo Hotels, L.P. 7
$40.4
-
Bethesda, MD
Urgo Hotels is the owner, developer and management company of seven units in Canada
and 21 internationally. The company currently has six hotels under construction, two of
which are in Canada.
4136
A privately owned company that owns and manages four properties in Canada. Stagewest
Hospitality is a subsidiary of Mayfield Investments Inc.
Stagewest Hospitality
4
$36.1
$53.8
Calgary, AB
4243 Palm Holdings
11
‡$36.0
‡$25.0
Toronto, ON
A private, Canadian-owned company that owns or manages six properties in Canada and
five internationally. During the past year, Palm Holdings added five properties to its portfolio.
It also converted the Destination Inn in Waterloo, Ont. to a Four Points by Sheraton and the
Travelodge London in Ontario to a TownePlace Suites by Marriott. In 2015, the team plans to
add two properties in Canada and two internationally.
4345 Canadas Best Value Inn
33
$28.6
$22.7
Coral Springs, FL
A private company, Canadas Best Value Inn is a subsidiary of Vantage Hospitality Group, Inc., which franchises 33 units in Canada and 1,180 internationally. During the past year,
Vantage Hospitality acquired America’s Best Inns & Suites, Country Hearth Inns & Suites,
3 Palms Hotels & Resorts and re-launched the Jameson Inn brand. In Canada, Vantage
added five properties to its portfolio, and plans to open 10 properties in 2015.
44- Crescent Hotels 5
$25.0
-
& Resorts Canada
Toronto, ON
4544 One King West Hotel 1
$24.5
$24.7
& Residence
Toronto, ON
Crescent Hotels & Resorts is a private company that manages five properties in Canada
including Tryp by Wyndham Quebec Hotel Pur, Staybridge Suites West Edmonton and
Howard Johnson Yorkville. During the past year Crescent opened one property. It plans
to open two more hotels this year as well as complete one takeover.
It starts with
Tea
One King West Hotel and Residence is a privately owned hotel in downtown Toronto.
‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units
Improve your guest’s experience
and leave a lasting impression by
serving Tetley.
RANK
COMPANY
UNITS GROSS GROSS
’15 ’14
2014 SALES
SALES
BUSINESS OPERATIONS
4648 Brookstreet Hotel
1
$22.5
$19.5
Ottawa, ON
open one A private company, Brookstreet Hotel is a subsidiary of Wesley Clover International
Corporation that owns one property in Canada and two internationally. The company will
open a new property outside Canada in 2015.
4747 Monte Carlo Inns
8
$21.1
$20.0
Mississauga, ON
Monte Carlo Inns is a private company that owns, develops, manages and is the franchisor
of eight properties in Canada. (Y/E Fiscal July)
4849 D.P. Murphy Hotels
9
$20.8
$18.0
and Resorts
Charlottetown, PE
A private company and division of D.P. Murphy Inc. that owns nine properties in Canada.
The company recently purchased the Future Inns Hotel & Conference Centre Halifax and renovated two properties. (Y/E Fiscal January)
4946 Bellstar Hotels & Resorts
7
$20.7
$22.5
Calgary, AB
Bellstar Hotels & Resorts is a private company that is the management company of seven
units in Canada. During the past year, Bellstar opened rental luxury residences at its Spirit
Ridge Vineyard Resort & Spa in Osoyoos, B.C., and reorganized its development and realty
divisions. It also added the Grande Rockies Resort in Canmore, Alta. to its portfolio.
50- Vista Hospitality Group
4
$20.0
-
Kitchener, ON
A private company that owns and manages four properties in Canada and six internationally,
Vista Hospitality Group is set to acquire $50 million worth of assets this year. Last year, it
converted the Delta hotel in Kitchener, Ont., to a Crowne Plaza hotel. It also renovated two
properties in Ontario. Vista Hospitality plans to add three to five hotels to its Canadian
portfolio, as well as five to seven properties to its international portfolio in 2015.
(Y/E Fiscal October)
If your company is missing from this year’s report and you would like to submit
information next year, please email Jackie Sloat-Spencer, associate editor,
at jsloat-spencer@kostuchmedia.com.
A LUXURY SUITE OF
HOTELS IN CANADA.
For over 50 years, Oxford has
led the Canadian marketplace in
service and scale. Oxford owns
a collection of luxury hotel and
resort properties across Canada
which represent some of the most
renowned experiences the country
has to offer and which are located
in some of the country’s most
treasured locations.
www.oxfordproperties.com
TRENDS
BATHROOM
Timeless appeal and lavish showers
make for happy hotel guests
BY IRIS BENAROIA
WHILE on a recent
reconnaissance mission
to sniff out design trends,
Vancouver-based interior
designer Sharon Bortolotto
toured a hotel in Beverly
Hills, Calif. The iconic
building had undergone
a substantial renovation,
and yet when it came to
the bathrooms, there they
stood like embalmed Hollywood starlets — pristine
and original; they hadn’t
aged one bit.
TWO WORLDS COLLIDE
Designer John Tong of
+Tongtong used texture to
play up the urban and rural
notes of the Drake Devonshire
in Prince Edward County,
Ont. (above and left)
“They changed everything but they did very
little in the bathrooms,”
says Bortolotto, principal
and founder of BBA Design
Consultants in Vancouver,
who has spent more than
30 years finessing both
commercial and residential
spaces. “The bathrooms
were so nicely done in a
neutral beige 20 years ago;
they didn’t need much.”
Bortolotto’s anecdote
sums up what hospitality
designers should aspire to
in the bathroom: timelessness over trendiness. Think
marble and porcelain in
a neutral palette. White
is always a good go-to.
Not only does it make a
bathroom feel spacious, it’s
associated with cleanliness
and hygiene, which is critical to guest satisfaction.
She often restricts splashier,
gimmicky touches to paint,
wallpaper or artwork that
can easily be painted over,
or replaced, on a dime.
After all, bathroom
renovations are costly,
especially for hoteliers
grappling with the expense
of multiple rooms. “In a
guestroom, you may not
have to toss out the case
goods every seven years; you
might reupholster them,”
Bortolotto says, noting the
cost to do so doesn’t come
close to overhauling the
loo. Dealing with plumbing
and electrical, the sinks,
the taps, the bathtub, the
toilet and the glass showers
makes for a pricey project.
“If you’re renovating a room
BATHTUB BEGONE
Spacious, spa-style showers
are taking up residence inside
the newly redesigned Fairmont Le Château Frontenac
in Quebec City. (this page)
for $25,000 to $30,000, the
bathrooms are generally
a third or more, so [you’re
spending] $8,000 to $10,000
on each of them,” she adds.
Must-haves for the makeover? “Nice big vanities and
good lighting — the big
feature is having enough
room to put your stuff on
the counter, and not on the
toilet seat,” she says. And
don’t forget the lit makeup
mirror and the [variety of
lighting sources].” As for
tubs, “I think they’re more
of a selling feature than
people actually using them.
I think larger showers are
more beneficial.”
Investing in good-quality
material at the outset, such
as marble, is key, Bortolotto
says. But beware: should
a visitor spill a bottle of
Coco Chanel eau de toilette
27
— sacré bleu! — on a
marble vanity, it will stain.
Polished marble is a pain to
maintain, but remarkable
innovations have helped
(see Fake it with Porcelain,
adjacent).
Sensible and timeless
over fleeting and faddish
also describes the newly
renovated bathrooms at
the Quality Inn in Corner
Brook, N.L. “Guests travel
more and they have a
certain level of expectation,” says Debbie LeBlanc,
Quality Inn’s GM. “When
it came time to renovating the rooms, we tried to
think of every detail guests
would want.”
Mid-market hotel or not,
a ho-hum experience wasn’t
one of them. As such, the
designers didn’t skimp on
the materials. “We have
Caesarstone countertops
with cabinets in a nice light
wood.... The cabinetry has
tons of space,” LeBlanc says
of the look that is “simple,
clean and stands above the
competition in our market.”
Eco-friendly features,
meanwhile, take it over
the top. These include
low-flow toilets and
showers, with excellent
water pressure thanks to
a new water pump; LED
lights; wireless thermostats; and the swapping
of electrical heating with
PTAC units, energy-saving
heat-pump systems.
Noticeably absent at
the Quality Inn — or not,
depending on who you ask
— are bathtubs. The North
American hotel sector has
been forgoing bathtubs for
years. And even luxury
players are being strategic
when it comes to tubs.
Take Fairmont’s 611-room
landmark Château Frontenac in Quebec City. Last
FAKE IT WITH
PORCELAIN
Marble is that prima donna
of materials — gorgeous
yet ruthless. Its porous finish greedily soaks up liquid,
which can leave a mark. And
over time, marble needs to
be specially cleaned, a total
nightmare for hoteliers.
But hotels can get the
chicness of marble, without
breaking the bank. “Italians
have digitized marble like
you cannot believe and
printed it onto porcelain
tiles. We’ve been using it a
lot in residential design. You
would think you walked into
a bathroom full of Carrara,”
says Sharon Bortolotto,
principal and founder at
Vancouver-based BBA
Design Consultants, who just
returned from a trip to Italy to
see the product firsthand.
“At the Italian factories I
visited, they’re photographing
the real thing; they’re even
getting it down to different
slabs, so it looks real and
not too uniform,” Bortolotto
adds. Additionally, instead
of itsy-bitsy tiles that scream
porcelain, the marble copycats are being printed onto
large-format 4x8 tiles. There
are less seams, making it look
more elegant. The big sheets
can be mitred to use on countertops; they’re less expensive and they’re easy to clean.
“That’s the new wave coming
out of Europe, particularly in
Italian and Spanish factories,”
she says. “You don’t need to
use natural stone anymore —
you don’t need to dig up the
mountain.”
year, the 1893-built heritage
hotel, which conjures up
scenes from Downton Abbey
and the Victorian claw-foot
soakers to match, completed a $75-million revitalization. The ambitious project,
by the design firms Wilson
Associates, based in Dallas,
and New York’s Rockwell
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Group, saw the addition
of restaurants, a banquet
space, a spa and the transformation of the lobby.
Additionally, all of the
hotel’s guestrooms —
including 38 suites and 60
posh Fairmont Gold rooms
— were renovated. But they
don’t all sport bathtubs.
“When we have a room
with one bed, we decided
to use only one big spa-style
shower. And with rooms
with two beds, we kept the
bath, as they are likely used
by families,” says MarieClaude Brousseau, director
of Public Relations.
Washrooms that service
the public spaces have
been kitted out in what
Brousseau describes as a
“contemporary fresh” look.
Dark herringbone floors
offer graphic punch against
a two-tone white-and-ecru
vanity, which has storage
galore below and above
due to a long glass shelf.
A large shower is built for
two — or three, or four
(no judgment here).
Even the bastion of cool,
Toronto’s Drake Hotel,
opted for vertical cleansing over reclining in suds
at the 11-room (plus two
suites) Drake Devonshire
Inn. The contemporary
lakeside retreat in the
village of Wellington in
Prince Edward County,
Ont., boasts a dynamic,
art-forward scheme.
Here, smart country-chic
bathrooms feel casual
yet luxurious. It’s not
immediately clear why
these bathrooms, with
their random china plates
on the walls, are so darn
lovely. It could be the
subtle textural mix: the
friendly tongue-andgroove cottagey walls
(brilliantly carried out
to the headboard and a
wall in the guestroom
itself), mosaic tile floors
and marble showers;
or the custom Corian
vanity with integrated
towel holders and quirky
old-timey faucets.
The balancing act is
the work of John Tong,
principal of +Tongtong,
who designed the Drake’s
original outpost on Queen
Street West. “A lot of
people think I’m an urban
guy,” Tong says. In fact, “I
owned a cottage almost 20
years before we bought a
house in the city.” He and
his wife are nature buffs
who camp and canoe, he
says. “[The Devonshire]
has been that opportunity
to bring those two worlds
together in my work in a
big way,” he continues. “So
the washroom is one place
where you do see a bit of
country but also a level
of elegance.”
The key was “transmuting [opulence] and
luxury without it feeling
stuffy.” For instance, the
bathrooms’ contemporary linear sconces have
architectural presence but
“they’re quite basic,” Tong
says. “The shape you see is
actually just the glowing
bulb; there is no shade.”
Nor are there bathtubs.
“There are some people
who love a bathtub, but I
think operationally it wasn’t
something they wanted to
offer,” Tong says. “There is
this cleaning issue and a
sense that bathtubs are not
desirable by a lot of people.”
Besides, who wants to loll
in the bath all day when
Prince Edward County,
with its vineyards, beaches
and uninterrupted views of
Lake Ontario, is just outside
the door? u
SEGMENT REPORT
THE LONG HAUL
Extended-stay lures developers with its higher occupancy and draws
customers to the comforts of home BY DENISE DEVEAU
THE EXTENDED-STAY SEGMENT
is gaining momentum in Canada, as a
growing number of professionals and
families seek the comforts of home
on their travels. In-suite kitchens, free
breakfast, free Wi-Fi and extra elbow
room are major drawing cards for guests
needing more than a few days’ stay.
The numbers show this category remains a popular
choice for guests, regardless of economic ups and downs.
According to Brian Stanford, national managing director for PKF Consulting Canada in Toronto, extendedstay properties are comparable to the industry average
in terms of ADR ($138.96 in 2013 and $144.24 in 2014,
compared to the industry average of $132.41 in 2013 and
$137.20 in 2014).
But where the segment shows significant strength is in
its occupancy rates. “The numbers there are dramatically
stronger,” Stanford says, noting that in 2014 extendedstay occupancy rates averaged 71.9 per cent, seven points
LIVING LARGE The Homewood Suites by Hilton extended-stay suites
feature separate living and sleeping areas, a full-sized fridge and silverware
higher than the industry norm. “That goes a long way
to explaining what the segment does: cater in large part
to individuals who are on assignment, relocation or in a
market for longer periods of time,” he adds.
Stanford notes the segment has seen four- to five-percent supply growth in the last four to five years, estimatJULY/AUGUST 2015 HOTELIER
31
ing that current market inventory for
the extended-stay segment is now in
the 10-per-cent range. “The fact that
occupancy numbers are holding with
that much supply growth speaks to the
strength of the segment.”
During the past 15 years, Canada
has seen the growth of upper-tier
brands such as Homewood Suites by
Hilton, Residence Inn by Marriott and
Staybridge Suites (IHG); as well as
mid-scale offerings such as TownePlace
Suites by Marriott, Home2 Suites by
Hilton and Candlewood Suites (IHG).
But Canada’s extended-stay segment
is less developed than the U.S., where
these properties have been populating
the landscape for 30 years. Stanford
attributes that to the natural lag in
development trends between the two
countries. “[Before the] 2000 economic challenges, projects kept getting
pushed off [in Canada]. But when we
finally hit good market conditions,
developers were ready to take any
opportunities they could.”
TRIPLE THREAT
In 2014 Ayaz Kara, CEO of Prestige
Hospitality Inc. in Calgary, opened the
122-room Homewood Suites by Hilton
adjacent to his company’s 125-room
Hampton Inn at the Calgary Airport.
“We were working on that project for
five years because we believed in the
extended-stay market,” he says. Kara
is now finalizing plans on a full-service,
270-room Hilton on the adjacent parcel
of land.
“Our goal is to serve all needs,” he
notes. “If you’re coming in for a quick
in-and-out stay, then the Hampton Inn is
good for that. A person staying five days
or more would be more geared towards
Homewood Suites.”
The cost-benefit analysis is clear with
dual-branded properties, particularly
when it comes to housekeeping, Kara
explains. “It’s simple. If you can reduce
the cost of servicing the rooms, profitability goes up. If you have guests coming in
and out on a daily basis, costs are higher
and your profit margins are lower.”
He says it’s important to ensure a solid
base of longer-stay customers. “You want
to build a base where 60 per cent of your
business stays more than five nights. If
you have that base, then you can offset
that with transient travellers.”
32
While a larger
por tion of project s
have been developing higher-tier brands
in primary markets,
Stanford expects to
see increased development in secondary and
tertiary markets in the
next few years. “Developers tend to
gravitate to larger markets because
of high demand, yet there are lots
of secondary and tertiary locations
where larger upscale extended-stay
operations simply don’t make sense
because of the added capital costs.”
The major challenge for extendedstay property developers is finding
the business case that works best in a
region. Because room sizes tend to be
larger (370 to 400 sq. ft. for a studio
with a kitchen area, and up to 450
sq. ft. for a one bedroom compared to
320 to 340 sq. ft. for a standard hotel
room), most extended-stay properties are new builds in the 130- to
150-room range; conversions typically
would not allow for the room size
needed to add kitchens and amenities, Stanford notes.
The larger room size and associated capital costs have become factors
in the increased trend to mixed-use
properties. “Rather than building a
200-room extended-stay or selectservice hotel, developers might do
a mix of 120 of one and 80 of the
other,” Stanford says. Dual-branded
HOME SENSE
A cosy firepit at the Home2 Suites by Hilton
and well-stocked fitness room at Homewood
Suites by Hilton allow guests to enjoy the
pleasures of home in extended-stay visits
properties offer a number of advantages, not the least of which is
attracting a more diverse clientele
and providing more choices under
one roof. Depending on the property
in question, the model allows operators to share fitness facilities, general
managers, foodservice functions, sales
teams and engineering staff.
Calgary’s MasterBuilt Hotels Ltd.,
which owns the master territorial
development rights in Canada for
Microtel Inn & Suites by Wyndham,
is currently developing a dual-branded Courtyard and Residence Inn
by Marriott in Calgary. COO Eric
Watson says in many communities,
extended-stay comes with a hefty price
tag. “With 50 per cent more space per
room, you end up with higher per-door
costs. However, combining brands
means you can have one general
manager and share amenities to drive
the operating costs down.”
MasterBuilt plans to pursue the
co-branded market more aggressively,
says Watson. “There are a number of
markets in Canada where this concept
would be a good fit. And while Canada
has been a laggard in the extendedstay product class, there are a fair bit
of development opportunities for new
construction in larger urban markets.
There is no question the market is
under-serviced.”
Steve Giblin, CEO of SilverBirch
Hotels & Resorts in Vancouver also
has a keen interest in expanding
the extended-stay model in Canada.
SilverBirch’s efforts began with the
opening of the 200-room Residence
Inn by Marriott in Vancouver in 2012.
“It exceeded our expectations in every
way,” Giblin says. “While it was previously an extended-stay property, profitability quadrupled once it was renovated under the Marriott brand.” He
reports that occupancy rates average
in the mid-80-per-cent range (average
room rate is about $200 a night); with
45 per cent of guests staying three days
or longer.
SilverBirch’s Home2 Suites by
Hilton in West Edmonton opened in
2014 and attracts business from the oil
and gas sector. The 127-room property’s daily room rates are just below
$150. “We’re big believers in extendedstay in Canada,” Giblin says, adding
that it will soon begin construction on
the world’s largest Residence Inn — a
400-room hotel in Calgary’s Beltline
District, slated to open in 2018. The
mixed-use project will also include
a residential tower, podium parking,
retail and restaurant facilities.
A not her sta nd-out project is
the 125-room Homewood Suites by
Hilton Halifax-Downtown, formerly
The Citadel Halifax hotel. It’s part
of a mixed-use project that includes
a 316-room Hampton Inn by Hilton,
retail space and a conference centre.
“By replacing the Citadel we were
able to put in two hotels, double our
room count and cut costs in half using
only half the property. The rest of the
land was sold to Great West Life for a
residential tower,” Giblin explains.
Giblin contends there are plenty
of under-represented markets for the
extended-stay segment. “Toronto
is a big spot for exploring mixed-use
opportunities. It’s hard to get anything
standalone in the downtown area
unless you have 1,000 rooms.”
Secondary and tertiary markets can
be more challenging because of the
capital costs and the fact that many
communities are dependent on singlesource providers. “We looked hard at a
project in northern B.C. but turned it
down,” Giblin explains. “We realized
if something happened to the major
industry there, we would be left high
and dry.”
In the future, Giblin believes mixeduse is the way to go because it holds
great appeal for guests. “Some want
a king room. Others want a kitchen.
Customers love to have choices.”
Whatever the business model, all
indicators show that extended-stay is
here for the long haul. u
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OPERATIONS
SAFETY
IN
NUMBERS
The top-down approach to guest security
BY JENNIFER FEBBRARO
ILLUSTRATION BY JEM SULLIVAN
I
t’s not usually advertised on hotel websites as an
added amenity, but crisis planning is a behindthe-scenes function that cannot be overlooked.
Leo Manos, director of Security at the
Trump International Hotel & Tower in Toronto, explains that technology can help facilitate a safe
and secure hotel. “I was really impressed with my
initial introduction to the Trump Hotel because of
35
“
EVERY HOTEL SHOULD HAVE
A RANGE OF
OPERATIONAL
PROCEDURES BASED ON THE VARIOUS THREATS POSED — FROM THE LOCATION OF THE PARTICULAR HOTEL, A PROPERTY
ASSESSMENT, A NEIGHBOURHOOD
ASSESSMENT, AS WELL AS A LOOK AT WORLDWIDE TRENDS
“
the number of cameras, for starters,”
Manos says. While most commercial
buildings only have approximately 120
cameras installed, the Trump Hotel
has 250. “They are all IP-based on a
Lenal system with video analytics,
which makes monitoring a lot easier.”
The technology does not just rely on
human observation, but enhances it.
For example, if there is an “intrusion”
where there shouldn’t be one, a camera
will register that and ring an alarm.
Manos currently works with 11 other
security staff to monitor a control
room where all cameras are viewed in
real time.
“This level of surveillance doesn’t
prevent every unforeseen threat,”
explains Manos. “But it’s an excellent
start, especially when managing VIP
guests, such as celebrities or government officials.” The security expert has
a long history with developing safety
plans and policies. Prior to his current
position at Trump Hotel, Manos
worked at the buildings that housed
CSIS (Canadian Security Intelligence
Service) and The Hazelton Hotel in
Toronto’s Yorkville area, where he
became familiar with the whims of the
36
rich and famous. “TIFF (Toronto International Film Festival) was an event
that brought a lot of celebrity guests
to the Hazelton, so we were always on
high alert for trespassers,” he explains.
Manos insists that operational
plans are key to guaranteeing the
safety and security of any hotel. “It
doesn’t have to be a thick document,”
he says. “But it needs to be substantial and constantly updated to take
into account possible new threats.” A
strong relationship with local police
can help hoteliers remain up-to-date
on new or possible upcoming security
threats, as well. For Toronto, this could
include warnings about the Pan Am
Games and the large population influx,
and accompanying risks, the city will
be facing this July.
When developing a comprehensive plan, Manos advises partnering
with the hotel’s engineering team to
find out where back-up generators are
located in the building. “The director of security can’t know everything,”
he laughs. “So it’s important to see
yourself as part of a team. No one
knows the building structure better
than the engineers who devised it. So
it’s essential you reach out for expert
knowledge when required.”
Dr. Zhen Lu, associate professor,
Ted Rogers School of Hospitality and
Tourism Management at Toronto’s
Ryerson University, and expert in strategic management, conducted a study
(“Innovations in Hotel Administration
in Canada,” The Worldwide Hospitality and Tourism Themes Journal, 2013)
on how Canadian hotels manage and
prepare for various crises. There are
a number of unexpected or unforeseen events that can impact a hotel,
says Lu. “Just look at the 2013 Boston
marathon bombing. But still, it is
imperative that a hotel prepare for
emergencies as much as possible.”
Lu’s research confirms those hotels
with a thorough and evolving strategic
management plan in place are poised
to handle a crisis most efficiently. That
is, only if it does not sit on the shelf
collecting dust. “The only way that
staff can become familiar with the
document and the procedures within it
is if they are trained on a regular basis.
Training all staff is an essential component to risk management,” notes Lu.
Brian Campbell, director of Security
at the Four Seasons Hotel Toronto,
concedes. “I cannot emphasize enough
how critical it is to train your staff. I
keep a spreadsheet of all staff to keep
track of who I have trained and in
what procedure or operational plan.”
Campbell says every hotel should have
a range of operational procedures
based on the various threats posed
— from the location of the particular
hotel, a property assessment, a neighbourhood assessment, as well as a look
at worldwide trends. “I may not have
a terrorist plan, as these vary considerably, but I will have an evacuation
plan, a lockdown plan — for example,
if there is a gunman in the neighbourhood or another security threat — and
a power outage plan.”
He recalls the November 2014
windstorm, for example. “It’s a totally new kind of natural threat and
yet, we knew exactly what we had
to do.” Campbell says on a building
made of glass, there is always a risk
of unsecured panels falling, so the
property was under constant surveillance for this possibility. Furthermore,
Campbell had staff remove all furniture and accessories from balconies, as
well as relocate vehicles that were on
the property. The wind was so strong,
there was no predicting what might
fall onto their windshields.
Extreme weather aside, something
as simple as a missing child is a safety
concern, which every staff member
should know how to handle beforehand. “How often do you hear about a
child and mother getting on an elevator when the mother turns to pick
up her bags and the doors shut with
the child on the other side?” exclaims
Campbell. “Do staff know what to do
in this instance? They should.”
To en su re st a f f c omp etency,
Campbell says every plan has to be
drilled on a regular basis. When asked
how often training occurs, he answers
“literally every single day.” He says it’s
also crucial to debrief with all staff
after any disaster. “Whether it’s housekeeping or an executive manager, this
is a team approach and everyone’s
opinion matters. You want to ask, what
part of this plan worked for you? What
failed? Feedback will help to refine the
plan you already have in place and
make it even better.”
Campbell notes the Four Seasons
is equipped with hundreds of cameras; however, the people on the frontlines and behind the scenes ensure
the building and guest safety. “The
burglar isn’t going to come in with
a nylon mask,” he jokes. “He comes
in a suit and takes a purse that’s left
unattended. Theft has really changed
since I started in the business in 1986.”
Thieves are less easily identified and
blend in more; they act and dress as if
they belong in the hotel.
Campbell also says he has a separate
security plan for single, female travellers. “We’re always in touch with
local police on what’s happening in
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the local bar scene.” For example,
police picked up on the trend of drink
tampering and informed Campbell
of an increase in incidents. For this
reason, it was crucial to train all wait
staff to be especially vigilant when
women are drinking alone. “I might
train wait staff to look for altered
behaviour in a female guest or if a
woman is incoherent, for example.
In this case, we would intervene
and make sure no one was ushering
her into a taxi or something of that
nature.”
No staff member is dispensable
when it comes to securing the safety
of a hotel, just as each and every guest
remains a top priority. “That one
occasional staff [member] that has
not yet been trained is your weakest
link in the operational plan,” warns
Campbell. Alternatively, it may be
that one occasional employee who
ends up saving someone’s life. “That’s
why when it comes to safety, each staff
[member] is equally valuable towards
averting a crisis.” u
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IN-ROOM TECHNOLOGY
STATE
YOUR PREFERENCE
Hotel operators are leveraging technology to offer customized experiences
BY LAURA PRATT
I
t was her first stay at the W
Montreal, but it likely won’t
be her last. “I’m allergic
to feathers,” the guest told
front-desk staff at the hip
downtown hotel. “Would you be
able to bring up a synthetic pillow?”
The hotel team granted her request
while adding personal preference
data to her file in the main system.
Next time she visits, her bed will be
decked out with foam pillows.
“The best technology in the hotel
industr y sees to it that all the
transactional and more robotic
work is done as efficiently as possible,” says Jean-François Pouliot, W’s
GM. “It all comes down to freeing
up our associates’ time to improve
the guest experience.”
Ultimately, that’s the chief aim
of the technology that hums inside
today’s guestrooms. And there’s no
shortage of it, which means operators
have to keep monitoring technological innovations. “Apple and Google
and everybody else who keep creating
devices for the traveller to use will
continue to put demands on hotels
that will need to be able to support
them,” says Gregg Hopkins, VP of
Marketing at Newmarket, an Amadeus Company, a Portsmouth, N.H.based hospitality solutions provider.
PREPARING FOR THE GUEST
The trick to generating continued
business is to tap into guest preferences. “It’s all about knowing your
39
COMMAND CENTRE
Smart and innovative hotel operators are
keeping ahead of the technological curve.
Below are just a couple examples.
Ω In the heart of Covent Garden, Hub by
Premier Inn in London, England (pictured),
is a smartly designed minimalistic hotel
that offers a proprietary app that allows
guests to book a room and check in, as
well as control all aspects of the in-room
environment, including customized
lighting and temperature — all at the
push of a button. The app also lets
guests explore sightseeing options and
locate them geographically on a map on
their wall.
Ω Aria Resort and Casino in Las Vegas is
one of the most technologically advanced
hotels on the strip. It counts some
truly nifty gadgets among its standard
offerings, including a few that let guests
customize in-room features according
to their preferences. Guests can use the
42-inch LCD HD television to connect
to their laptops, plug in video devices,
dim lighting, adjust the temperature, play
music, close the drapes and order food.
There’s also a seven-inch screen beside
the bed that lets them adjust the room’s
settings without having to emerge from
under the covers.
an expressed preference for early
starts and welcome gifts of M&Ms
for a guest who’s shared her love for
the candy on social media. “You’ve
got a whole new type of VIP in
the industry now because of social
media, so make sure you give every
guest a good experience, because he
might tweet about you as soon as he
arrives,” Hopkins says.
THE GUEST EXPERIENCE
Of course, technology isn’t just used
to create better predictive customer service. These days, consumers
expect to enjoy all the luxuries of
home during their hotel getaways,
and that means having technology
at their fingertips.
To start: hoteliers must go beyond
en su r i ng t hei r proper ties c a n
support the wide array of modern
gadgets with reliable bandwidth.
As a basic minimum, guests expect
consistent Internet access — and
they expect it free of charge. Given
that the pay-per-use revenue Wi-Fi
once generated has evaporated,
says Pouliot, hoteliers “need to find
another way to monetize it.” At the
W, that means tying free Wi-Fi into
the brand’s loyalty program with an
offer of free standard in-room Internet access to all Starwood Preferred
Guest members who book through
Starwood’s digital channels, including the SPG app.
Understanding how to grow that
business requires an understanding
of the proliferation of the mobile
phone. “The smartphone is the tool,”
says Pouliot. At the W, more than
half of last year’s website transactions
were conducted using mobile phones,
but the devices are being used for
more than that. Now a hotel can
send a message to alert guests that
their rooms are ready or message the
valet to collect their cars or, through
iBeacon technology, push an offer
to visit an on-site facility when the
customer strolls past the property.
Earlier this year, W became the first
Starwood brand to offer keylessentry. Guests “are thrilled to be part
of the next-gen way of hoteling and
are eager to use the technology,” says
Pouliot of the early public response to
the novelty.
“Wit h today’s rapidly evolving technology and people’s mobile
lifestyles, we know the desire for
integrating mobile technology into
their stay is there,” he says. “Our
tech-savvy guests manage most
aspects of their life and travel from
their smartphone. Travel is inherently mobile, and we see wearable
customer,” says Hopkins. “Knowing
what temperature they like their
room at, what time they like to be
awoken, whether they’ve had issues
with a room in the past.” Operators are capturing personal information from guests’ direct interactions
with them and from the impressions
they’ve left on social media sites such
as Facebook, Twitter and LinkedIn.
Such insider information leads
t o p e r s o n a l i z e d T V welc o m e
messages, automatic blinds that
rise at daybreak to accommodate
40
TUSCANY COLLECTION
ONE-SWIPE SERVICE Smart watches
have become the next frontier in guestroom
technology, allowing guests to ditch their
key cards and manage their reservation
with the swipe of a finger
technology such as Apple Watch as
the next frontier. Starwood’s mobile
team is dedicated to developing on
the latest and greatest platforms that
our guests are using in their everyday
lives and making the SPG app available in these new platforms.”
Meanwhile, in-room tablets have
made the Fairmont Pacific Rim —
already celebrated for such special
features as bathroom mirrors in all
the guestrooms outfitted with embedded TVs featuring surround sound
— a technological standout, and the
property is continuing to add more
options. In July 2012, the downtown
Vancouver hotel introduced iPad 2s
to each of its 377 guestrooms. The
tablets are loaded with Interactive
Customer Experience Technology by
Orlando, Fla.-based Intelity, which
allows guests to make concierge
requests, book spa treatments, set
wake-up calls, summon their cars
from the valet, order in-room dining,
control their lighting and drapery,
and check out. Most recently, the
hotel introduced the PressReader app
to the iPads. PressReader provides
access to more than 3,000 newspapers and magazines worldwide,
replacing its longstanding daily
newspaper delivery service with an
enhanced electronic alternative that
expands the news-reading options for
its far-flung visitors.
Other hotels are capitalizing on a
recent movement embracing Smart
TVs. These sophisticated devices
let properties brand the in-room
entertainment with background
images and customized content.
Operators can modify what their
guests see on their screens by way
of a web portal that delivers them
inside these techno marvels. And
because Smart TVs often come
with popular applications such as
Sky pe, Facebook, YouTube and
Twitter built in, guests get that
digitally connected bonus from
the room’s longstanding source of
technological entertainment, too.
A hotel’s inclusion of such equipment to manage and exploit today’s
technology is important, no doubt,
but the bottom line should never
be impacted. “It’s about leveraging
technology to help meet guest expectations. That’s really where hotels need
to be focused,” says W’s Pouliot. u
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42
Y
SPOTLIGHT ON
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HYDRTHR15-HOTELIER QRTRPG AD FNL 062415.pdf
1
15-06-24
1:09 PM
ADVERTORIAL
ACRYLIC HOT TUBS
GAIN MARKET SHARE
By Dale Papke, CEO of HydroTher Commercial Hot Tubs
While portable acrylic hot tubs have dominated the residential market for the
past 30 years, they have also slowly matched conventional concrete as the
popular choice of architects, developers and operators of motels, hotels,
fitness centers and hi-rise rental and condominium recreation centers.
Dale Papke, CEO of HydroTher, a Mississauga, Ont.-based manufacturer
exclusively dedicated to manufacturing commercial hot tubs, says the
reasons for the increased popularity include lower upfront costs, integral
waterproofing characteristics, lighter weight loads, ease of installation and
less upkeep. Pool builders who used to pass on the opportunity to sell
acrylic commercial units are now more open to quoting less expensive
pre-plumbed acrylic units than they were in the past. Many small condos
and boutique hotels are being designed with rooftop hot tub locations,
installations that favour lighter pre-fabricated acrylic units. Replacement
units required as a result of the VGB Act have created new opportunities
for prefabricated commercial units where the customer wants to avoid the
complexities and mess of concrete construction. Another reason for the
increasing popularity of prefabricated acrylic units in commercial settings
is that expensive and complicated waterproofing is not needed as it is with
concrete units, to prevent water damage underneath the hot tub.
HOTELIER
Leading
the Charge
For the Rosewood Hotel Georgia’s
Philip Meyer, success is all about
building relationships
BY ROSANNA CAIRA
P
44
with stunning city skyline views, a plunge pool and
private garden. The owner is committed to being the
best and I have every confidence we will be leading the
charge in the city,” he says. The hotel also houses the
renowned Hawksworth Restaurant, and the recently
opened Prohibition, a 3,000-sq.-ft. bar modelled on a
roaring ’20s theme.
When he’s not working, Meyer is passionate about
cycling. “I’m an avid road cyclist and have been
since I raced in Europe as a schoolboy. During my
time in Vancouver I have created a team of local
business leaders who ride regularly together and help
raise funds for the BC Cancer Foundation,” he says.
“Cycling is my golf — it’s where I make so many of my
business connections.”
Overseeing a group of 250 staff at the Rosewood
Hotel Georgia, Meyer attributes his success to past
mentors. “My style and service philosophy have been
shaped by working with some successful and handson independent owners (most recently the late Eleni
Skalbania) who taught me the importance of attention
to detail,” he says. The astute hotelier is a firm believer
in the power of relationships. “I’ve met some remarkable people in my career — both guests and associates
I stay in touch with wherever I am in the world. My
reputation is my greatest personal asset.” u
PHOTOGRAPHY BY MIKE CRANE
hilip Meyer has been a fixture on the
Vancouver hospitality scene for almost
two decades. During much of that time,
he worked at the renowned Wedgewood Hotel
& Spa. Earlier this spring, the consummate
hotelier moved over to the award-winning
Rosewood Hotel Georgia, a few blocks away
on West Georgia Street, near the city’s seawall.
Undoubtedly, it was a difficult decision to make
but one he’s excited about.
“Rosewood Hotels & Resorts is a wellrespected name, but the brand has recently undergone new and dynamic ownership (the hotel company’s president is legendary
hotelier Radha Ahora),” says the managing director of the 156-room property.
By global standards, the hotel
QUICK QUIPS:
chain is small, comprising only
Born: Bromley, Kent, England
20 locations worldwide but
on Sept. 8, 1964.
the team hopes to double that
Family Ties: Three children:
Darius, 19; Alina, 17; Cyrus, 11.
number in the next five years.
“Darius just finished first year at
“These are exciting times and
Ryerson studying Hospitality and
we are the only Rosewood in
Tourism management. He hopes
Ca nada,” he says. Havi ng
to follow in the hotel business.”
worked most of his life for
Other Properties He’s Worked At:
independent luxury hotels and
The Sherwood Inn, Ont.; Horsted
resorts, Meyer is looking forward
Place Hotel, U.K.; and Goring Hotel,
to being part of a bigger group.
London.
Ironically as a young lad
Meyer aspired to be a chef. “I sort of fell into the
front of house, bussing tables while attending school.
I loved the connection and interaction with people;
never looked back but always wonder, what if?”
Meyer comes to the hotel at a pivotal time in
its 88-year history. “The hotel was renovated and
reopened with what I believe are the nicest rooms
in Vancouver. The quality of our guestrooms sets us
apart — especially our Lord Stanley Suite and the
Rosewood Suite featuring private rooftop terraces
YOU ARE
THE COMPANY
YOU KEEP
Congratulations to the Top 50 and thank you to our partners
in the Canadian hotel industry who certainly make for good company.
www.cbre.ca/HotelsCanada
This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions,
assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information.
CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the
recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at
any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on
this document are the property of their respective owners. All Rights Reserved.

Less - Hotelier Magazine

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