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Provenance Hotels Appoints Kevin Scott as General Manager for the 163-room Hotel Max in Seattle, WA

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September 11, 2013- SEATTLE, Wash. - Provenance Hotels is pleased to announce the appointment of Kevin Scott as general manager of Hotel Max in downtown Seattle. Scott brings nearly a decade of hospitality industry expertise to his new role at the Emerald City’s most irreverent, artistic hotel. 

“Kevin possesses a wealth of experience and now is the perfect time for him to take the reins at the hotel following the recent announcement of our partnership with Chef Jason Wilson to build Miller’s Guild, a new steakhouse, at Hotel Max,” said Bashar Wali, President of Provenance Hotels.

 

A graduate of Michigan State University, Scott joins Hotel Max from the Galleria Park Hotel, a Joie de Vivre Hotel in San Francisco, where he excelled as director of operations. Prior to that post, he served as market director for Off The Grid Services and was responsible for 15 weekly food truck markets with over 50 individually owned and operated food trucks. He also spent several years at the W San Francisco in a variety of roles including business travel sales manager, rooms manager and director of style. 

 

Scott’s hiring comes in the wake of Hotel Max’s successful launch in June 2013 of a Sub Pop floor created in partnership with Seattle’s most notorious independent record label. He will collaborate on the new restaurant, Miller’s Guild, from James Beard Award-winning chef Jason Wilson of Seattle’s Crush restaurant and Portland restaurateur Kurt Huffman. Opening in November 2013, Miller’s Guild will be a place of craft featuring wood-fired cooking and extensive, classic cocktails accented in a casual, yet markedly sophisticated setting. The historic 1925 space that honors Seattle’s lumber industry is being artfully restored and updated with furnishings from local craftsman and a custom-made 9 ft. long Infierno grill.

 

Miller’s Guild marks Provenance Hotels’ second major partnership with a James Beard Award-winning chef in as many years, coming on the heels of the opening of Chef Vitaly Paley’s Imperial at Portland’s Hotel Lucia in 2012.

 

Like the Sub Pop floor before it, the creation of Miller’s Guild at Hotel Max reflects Provenance Hotels’ commitment to unique, authentic, local experiences.


Industry Veteran Tom Hart Joins Quadriga Americas

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September 11th, 2013: Quadriga Americas has announced today that it has further expanded its sales organization, to support its growing business and customer base in the region. Tom Hart, a 15- year hospitality industry veteran, has joined the Quadriga Americas team as Senior Director of Sales for the Rocky Mountain Region. Tom will be based in Denver and his region will include Colorado, Arizona, Washington, Oregon and Utah. Quadriga is the leading global provider of guest-facing technology solutions for the hospitality industry, and has offices in the USA, Europe, the Middle East, Africa and Asia.

This new appointment follows a series of senior sales, finance and operation appointments earlier in the year and reflects Quadriga’s growing recognition for technology innovation and industry leadership, including Quadriga’s Personal Media Network™ mobile streaming application which was awarded HTNG’s ‘Most Innovative Technology Award 2012’.

Tom brings a unique depth of experience to his new role having worked with both On Command and LodgeNet/Sonifi. He also was formerly with Sharp Electronics. Hospitality TV sales division. “Tom’s unique background of Hospitality industry knowledge, experience and commitment to excellence will enable him to support his customers as they develop and implement their strategic objectives for IPTV and interactive information services,” said Rick Swift, Senior VP of Sales for Quadriga Americas. “I am very proud to announce this continued expansion of our sales organization, a demonstration of Quadriga.s on-going commitment to provide expert customer service to our new and existing customers.”

 

Nick Downing Appointed Vice President of Per AQUUM Retreats - Resorts - Residences, Based in Bangkok

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Bangkok, September 11, 2013 - Per AQUUM is pleased to announce the appointment of Nick Downing as Vice President, Per AQUUM Retreats - Resorts - Residences, based in Bangkok.

 

Nick was part of the launch team of Per AQUUM from 2003 to 2006 when he served as pre-opening Director of Operations, followed by General Manager of Huvafen Fushi, Maldives. As Vice President of Per AQUUM, Nick is responsible for the overall leadership, direction and vision of the brand. He will also ensure that the core Per AQUUM values of making a difference through signature guest experiences, service and design remain central to the portfolio. 

Commenting on his appointment, Nick says, “Returning to Per AQUUM as Vice President is a true honour. Over the last ten years, it has been clear that the teams involved have worked exceptionally hard to stay true to our original identity and the Per AQUUM brand DNA is still deeply embedded across the collection. The fact that each property has its own distinct individuality is a key factor in the continued brand appeal to guests. As joint venture partners in Per AQUUM, both Minor Hotel Group and Universal Enterprises have expressed their commitment to keep Per AQUUM strong, unique and independent and with the added resources behind us I am confident that our brand will continue to be known as an innovative leader in the premium luxury sector.” 

Dillip Rajakarier, CEO, Minor Hotel Group comments, “Nick is a proven, well rounded industry leader and his extensive brand development skills are indeed a tremendous asset to Per AQUUM. In addition, with a wealth of hospitality experience, he is well placed to take full strategic and operational leadership of the brand as we look to future development in locations such as the Middle East, Africa, Sri Lanka, and South East Asia. This is an exciting time for Per AQUUM we are delighted to have Nick on board.” 

Prior to re-joining Per AQUUM, Nick spent the last two years with Starwood Hotels & Resorts as General Manger of W Retreat Koh Samui. Before that he spent four and a half years at Ativa Hospitality Corporation as General Manager of Hotel de la Paix in Siem Reap, Cambodia before being promoted to Director of Operations at the company’s Corporate Office in Bangkok.

 

His earlier career, which started in the nineties, saw him work for Hyatt Hotels & Resorts in his native Australia before moving to Hayman Island Resort, Palazzo Versace, and then Soneva Gili Resort & Spa in the Maldives as Executive Assistant Manager.

 

Maestro Announces 2-Way Expedia Direct Connect Interface, Reduces Booking Costs for Independents

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Maestro 2-Way Direct Channel Interface Gives Operators Price, Availability, and Rate Controls to Maximize Revenue, Lower Fees from their Expedia Bookings

Markham, ON - September 11, 2013NORTHWIND, provider of Maestro™  Enterprise Property Management announced it completed development of a 2-way booking interface to Expedia’s family of reservation websites. The new Expedia interface reduces operators’ overall online booking costs and provides multiple rate setting and availability controls. The 2-way interface is available for Maestro PMS client implementation today.  Click here to learn more about Maestro’s solutions for profitability and productivity.  

Interface reduces booking costs with direct Expedia reservations

Warren Dehan
Warren Dehan

“Expedia is an important booking source for NORTHWIND clients,” said Warren Dehan, President of NORTHWIND-Maestro PMS. “According to Expedia, between 5 and 10 percent of the occupied hotel room nights in the US are booked through their channels. The new Maestro 2-way Expedia booking interface gives our clients greater rate and availability control for this valuable reservation source. The interface also reduces overall booking costs for Expedia reservations.” Dehan said NORTHWIND developed the interface in response to user requests.

Expedia operates approximately 140 travel booking websites including Hotwire.com, CarRentals.com, Hotels.com, Classicvacations.com, and over 100 smaller regional “Affiliate Network” private-label travel websites. Expedia estimates 1 of every 20 hotel room nights in the US is booked through Expedia. In metro markets like New York and Las Vegas, the share is as high as 1 in 10. 

 

“In the past, NORTHWIND’s channel partners provided access to Expedia reservation booking, but there were additional fees with each channel,” Dehan said. “Our 2-way Expedia interface gives Maestro PMS users a direct channel that is a more cost effective way for guests to book through Expedia.” NORTHWIND developed easy-to-use input screens for the new interface that let operators upload rates and availability in multiple formats. Properties can now provide Expedia with sell rates, net rates, and flexible room allocations. Maestro’s 2-way interface offers greater rate and inventory allocation control so hotels can manage availability and rates more precisely to maximize revenue from their Expedia bookings.

 

“The 2-way Expedia interface will reduce reservation costs and increase revenue for operators,” Dehan said. “Direct Expedia bookings take advantage of all the valuable, unique capabilities Expedia channels offer. Maestro PMS users can call us to implement the interface today.”  

 

For a demo of the Maestro Property Management Suite featuring the ResWave Booking Engine, please contact NORTHWIND at 1.888.667.8488 or email info@maestropms.com

 

Exchange ideas and connect with NORTHWIND on:

    

 

Craig Wienckowski Joins Outrigger Enterprises Group as Corporate Director of Finance

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HONOLULU, HAWAII - September 11, 2013 - Hans Weger, chief financial officer for Outrigger Enterprises Group, is pleased to announce the appointment of Craig Wienckowski to the position of corporate director of finance.

In his role, Wienckowski provides financial advice and support of the company’s global business ventures, including asset management support for owned properties and financial and administrative guidance for potential development opportunities.

A multilingual finance professional, Wienckowski has experience in a wide variety of operation, management and investment platforms, including hotels, real estate, golf courses and real estate-backed debt. 

Before joining Outrigger, Wienckowski was a director with the hotel investment, asset and hotel management company of Ishin Hotels Group in their portfolio management department in Tokyo, Japan. He also spent several years in the Tokyo offices of Goldman Sachs and prior to that was with Archon Group Korea, a commercial real estate investment management and mortgage loan company.

Wienckowski is a graduate of the University at Albany, State University of New York with a Bachelor of Arts double major in German Literature/Language and Political Science/International Relations. He also earned a Bachelor of Arts from Julius-Maximilians-Universitaet Wuerzburg in Germany. 

Currently, Wienckowski is a member of Hospitality Asset Managers Association (HAMA) Japan, an organization of professionals responsible for proactively increasing asset values on behalf of hotel owners worldwide. 

Kathryn Day Joins PUBLIC Chicago as General Manager

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NEW YORK (September 11, 2013) - PUBLIC Chicago, the first hotel opened under Ian Schrager’s evolutionary brand, welcomes Kathryn Day as new General Manager effective today. Mrs. Day joins PUBLIC Chicago with a wealth of experience in the luxury sector, previously holding the position of Director of Hotel Services at the Waldorf Astoria Chicago. 

During her tenure at the Waldorf Astoria, Mrs. Day was instrumental in achieving several prestigious accolades including the property’s Five Diamonds Luxury rating, World’s Best Service and World’s Best Hotel by Travel + Leisure, and Best Hotel in the USA by Condé Nast Traveler, among others. Prior to joining Waldorf Astoria Chicago, Ms. Day was the Director of Rooms for Four Seasons Hotels Philadelphia, Mansion of Forsyth Park in Savannah Georgia, Conrad and Hilton Hotels in China, Malaysia and Maldives. She is a native of Sydney, Australia and holds Bachelors of Commerce and Law with first class honors including Business Law, Marketing and Hospitality Management. 

 

PUBLIC Chicago is the first hotel in Ian’s PUBLIC brand.  With this property, he set out to create a new era of chic boutique hotels focusing on inclusivity, style and the consumer experience, combining personalized service with affordable prices. The re-imagined Pump Room restaurant with menus by the award-winning Jean Georges Vongerichten has been the talk of the town since its opening in October 2011 and the property has since become one of Chicago’s hottest hotels.  

Elite Meetings Alliance at the Park Hyatt Beaver Creek Gets Rave Reviews

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EMA Delivers Stunning Locations, Heartfelt Memories and Outstanding Business Results

Santa Barbara, Calif.: September 11, 2013 - Elite Meetings International’s (EMI’s) August 2013 Elite Meetings Alliance (EMA), held at Colorado’s Park Hyatt Beaver Creek on August 18-20, achieved the highest attendee satisfaction ever. The event, which brought together 55 prescreened buyers and representatives of 42 world-class hotels, along with 13 partners, included nearly 1,000 prescheduled appointments, plus hundreds of additional contacts made during networking events. 

EMI CEO Kelly Foy said, “Having the opportunity to host this EMA at one of my favorite summer destinations was icing on the cake for what turned out to be an amazingly successful event. I’ve personally never received the quantity and quality of glowing reviews from buyers and suppliers alike, which was the result of a finely tuned system where our partners and sponsors worked together like clockwork.”

The Business

The number of one-on-one appointments between planners and hoteliers shows a high rate of return for attendees. A full 98 percent of planners in attendance reported that they’d book business as a direct result of the show, while a similar number of suppliers indicated an intention of booking business with those they met. “We’ll ultimately be graded on the results of the introductions we made between suppliers and buyers, and based on these initial results, we are confident this EMA was a home run,” said Foy. 

Leigh Bowsher of Bath & Body Works was one of the planners in attendance.  When asked to describe her first EMA experience, she said, “I found it to be incredibly beneficial from a resource perspective, as well as networking within the industry. I was very quickly able to meet with multiple properties that I might not otherwise have had exposure to.”

The Education

Education sessions, eligible for 6 hours of CMP credit, covered topics ranging from emergency planning to corporate social responsibility to social media strategies. Attorney Lisa Sommer Devlin led a panel discussion on the topic of Contract Legal Issues vs. Business Negotiations. The panel tackled issues ranging from lowest rate clauses to attrition, resale credit, and cancellation. Over 90 percent of the audience indicated they would like to continue the discussion. Another highlight: the lunchtime keynote address from Robert X. Fogarty, who discussed his ongoing part-business/art project/social experiment, Dear World.  It was a moving and memorable reminder that every one of us has a story to share. To watch the educational sessions, click here .

The Experience

Great partners played a huge role in the event’s success, beginning with the Park Hyatt Beaver Creek. The hotel’s food and beverage presentations, particularly group dining menus orchestrated by Executive Chef Christian Apetz and his team, elicited high praise. Behind the scenes, Clean the World collected soap during the event to recycle and redistribute to communities in need. Themed and CSR events, hosted by DSC, Destination Services, Vail Resorts, and Vilar Performing Arts Center, showcased the incredible mountain setting and versatility of Beaver Creek. 

The pre-event Planner Reception dazzled guests from the start with a Fire & Ice themed Taste of Beaver Creek featuring restaurants from around the village. The opening night’s Explore Colorado to the Extreme competition allowed guests the opportunity to mix and mingle while participating in steer roping, riding in a Unimog, and other mountain activities. The evening culminated with a scenic ride through the heart of Beaver Creek Mountain to Beano’s Cabin for dinner, joined by extraordinary local feathered friends. Monday night’s theme dinner, Express Yourself: The White Party, expanded on Robert X. Fogarty’s message from earlier in the day and allowed attendees to become a part of the story by participating in an exclusive photo shoot with Robert.  Pulling out all the stops, the Vilar Performing Arts center mounted a Dear World fashion show while attendees danced and dined onstage throughout the evening. To start the final morning on a high note, guests took the chairlift to the top of the slopes for a scenic breakfast at Spruce Saddle.  That afternoon, participants headed out to Four Eagle Ranch for a CSR event, Putting with Purpose, which allowed teams to compete in a putt-putt competition that resulted in meals for local Eagle County elementary school children. To see images from the event, click here.

The Future

The final EMA of 2013 will take place November 10-12 at The Ritz-Carlton, Naples in Naples, FL. EMI’s first two events for 2014 will take place January 26-28 at Bacara Resort & Spa in Santa Barbara, CA, and April 27-29 at the Fiesta Americana Grand Coral Beach Cancun in Cancun, Mexico, which will mark EMI’s first-ever international Elite Meetings Alliance.  To learn more, visit www.EliteMeetingsAlliance.com.

India’s Fortune Hotels Adds 19 Hotels and Switches Seven to Pegasus Solutions

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One of India’s Fastest-growing Chains Enlists Full Portfolio to UI Chain Code

DALLAS (September 11, 2013) – India’s Fortune Hotels, a member of ITC’s hotel group, has renewed 11 hotels, added 19 and switched seven properties to Pegasus Solutions. The hotel management company’s full portfolio of properties will now be bookable under the “UI” chain code through Pegasus Connect+.

 

“After carefully reviewing our options in the market, it made sense for us to centralize the global sales and marketing of our full portfolio by allocating the additional 26 properties to Pegasus,” said Vijay Jaiswal, head of sales and marketing for Fortune Hotels. “The flexibility, platforms and pricing Pegasus has delivered fit easily with both our operational style and ongoing expansion goals for Fortune Hotels. Partnering with Pegasus Solutions has enabled us to launch 19 of the properties onto the global distribution systems (GDS) for the first time, increasing their worldwide exposure across the electronic distribution channels exponentially.”

 

While the majority of mid-priced hotels in Western countries are affiliated with chains, only 15 percent of India’s are. Fortune Hotels has filled this gap for first-class, full-service business hotels, providing the distribution network, central reservations solutions, pan-India sales and marketing infrastructure and support to give its hotels a competitive edge in the marketplace.

 

“We’ve styled Pegasus Connect+ to deliver the same kinds of solutions, sales and marketing support that Fortune Hotels offers its properties in the Indian market,” said Rachel Grier, senior vice president, Asia and the Middle East for Pegasus Solutions. “We’re honored to have more than tripled the number of Fortune properties that we’ll be generating business for on a global level. This agreement is a testament to the success of our long-term relationship with the team at Fortune.”

 

Fortune’s properties that are new to Pegasus Connect+ will receive RVNG, the only central reservations system built to manage selling hotel rooms in the Internet age. Properties will also enjoy one seamless connection to the four global distribution systems (GDSs), and more than 1,000 travel websites. The renewing properties will engage extra sales support with Pegasus Connect+ Premium, which adds distribution consulting services, PegasusView Market Performance business intelligence, access to the Pegasus Sales Connections automated sales tool, plus in-person visits on their behalf to corporate and TMC offices worldwide.

 


India’s Fortune Hotels Adds 19 Hotels and Switches Seven to Pegasus Solutions

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One of India’s Fastest-growing Chains Enlists Full Portfolio to UI Chain Code

DALLAS (September 11, 2013) – India’s Fortune Hotels, a member of ITC’s hotel group, has renewed 11 hotels, added 19 and switched seven properties to Pegasus Solutions. The hotel management company’s full portfolio of properties will now be bookable under the “UI” chain code through Pegasus Connect+.

“After carefully reviewing our options in the market, it made sense for us to centralize the global sales and marketing of our full portfolio by allocating the additional 26 properties to Pegasus,” said Vijay Jaiswal, head of sales and marketing for Fortune Hotels. “The flexibility, platforms and pricing Pegasus has delivered fit easily with both our operational style and ongoing expansion goals for Fortune Hotels. Partnering with Pegasus Solutions has enabled us to launch 19 of the properties onto the global distribution systems (GDS) for the first time, increasing their worldwide exposure across the electronic distribution channels exponentially.”

While the majority of mid-priced hotels in Western countries are affiliated with chains, only 15 percent of India’s are. Fortune Hotels has filled this gap for first-class, full-service business hotels, providing the distribution network, central reservations solutions, pan-India sales and marketing infrastructure and support to give its hotels a competitive edge in the marketplace.

“We’ve styled Pegasus Connect+ to deliver the same kinds of solutions, sales and marketing support that Fortune Hotels offers its properties in the Indian market,” said Rachel Grier, senior vice president, Asia and the Middle East for Pegasus Solutions. “We’re honored to have more than tripled the number of Fortune properties that we’ll be generating business for on a global level. This agreement is a testament to the success of our long-term relationship with the team at Fortune.”

Fortune’s properties that are new to Pegasus Connect+ will receive RVNG, the only central reservations system built to manage selling hotel rooms in the Internet age. Properties will also enjoy one seamless connection to the four global distribution systems (GDSs), and more than 1,000 travel websites. The renewing properties will engage extra sales support with Pegasus Connect+ Premium, which adds distribution consulting services, PegasusView Market Performance business intelligence, access to the Pegasus Sales Connections automated sales tool, plus in-person visits on their behalf to corporate and TMC offices worldwide.

Universal Orlando Likely to Add Thousands of Hotel Rooms

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Sept. 12—Universal Orlando is likely to add thousands more hotel rooms in coming years as Central Florida’s No. 2 theme-park resort continues an aggressive expansion, a top executive said Wednesday.

“We’ve done a study that says we could have 10,000 or 15,000 hotel rooms and still have occupancy that makes those rooms profitable,” NBCUniversal President and Chief Executive Officer Steve Burke told investment analysts at a conference in Beverly Hills, Calif.

“And all of those people staying in those hotel rooms would be more likely to go to our theme parks,” Burke added. “So I think, strategically, we need to get those hotel rooms open and build out the resort.”

Such an expansion would at least quadruple the 2,400 hotel rooms that Universal Orlando currently has, though that figure will jump to about 4,200 early next year with the opening of Universal’s Cabana Bay Beach Resort. All of Universal’s on-property hotels are owned and operated through joint ventures with Loews Hotels.

A large infusion of hotel rooms at Universal could pose a direct threat to Walt Disney World, which has roughly 26,000 hotel rooms and time-share suites. One of Disney’s central business strategies for the past decade has been to lure more visitors into its hotels and encourage them to spend much or all of their vacations on Disney World property.

Burke told analysts that NBCUniversal wants to position the Universal theme parks as “a family destination in and of itself, and not an add-on destination for somebody that spends three or four days somewhere else.”

Universal could also pull business away from surrounding hotels in the International Drive corridor, much as Disney World has pulled guests onto its property from hotels and motels along U.S. Highway 192 in Osceola County.

Disney would not discuss Burke’s comments.

Analysts said Universal has demonstrated during the past three years—since the opening of its $265 million Wizarding World of Harry Potter—that it can attract travelers directly to its property rather than merely peeling off business stimulated by Disney.

“Being a weak No. 2 player in the market has not been very profitable for the resort [Universal] in the past,” said Bob Boyd, a leisure-industry analyst with the investment company Pacific Asset Management. “They have shown in recent years that they can meet or beat Disney in attraction quality at fraction of the price; now they need to add the room product to capture a greater share of tourists’ time and wallet. To do that, they need the ability to offer many more full-vacation packages.”

Universal has implemented other strategies designed to steer visitors into spending more time in its theme parks. Just before Wizarding World opened in 2010, Universal introduced a new price scale—modeled after Disney World’s—that offers three- and four-day passes with cheaper per-day prices than one-day tickets.

But one of the resort’s obvious weaknesses is its hotel inventory. All three of Universal’s existing hotels are priced as top-end, “deluxe” hotels, beyond the reach of most theme-park visitors. By contrast, three-quarters of Disney World’s hotels are in the low-end “value” or midtier “moderate” categories.

Cabana Bay, scheduled to open in the first quarter of 2014, should help. Universal says its fourth hotel will be priced as a cheaper alternative, though it will also include fewer amenities. Half of the rooms will also be “family suites,” with room for as many as six people, further expanding Universal’s inventory.

“Universal Orlando has attractive high-end room product,” Boyd said. “What they lack is diversity of room offerings.”

Although Universal has far less land than Disney does, it has some vacant and underused parcels near Interstate 4 and its Wet ‘n Wild water park.

NBCUniversal, now 100 percent owned by cable-television giant Comcast Corp., isn’t building just hotel rooms. The company has dramatically accelerated construction of new rides and attractions as well.

Universal Orlando alone added a Despicable Me simulator ride, character parade and evening light show last year and a Transformers thrill ride and a Simpsons retail area this year. And it is adding a second Harry Potter-themed land, which will open by next summer.

The investments are paying off: Burke said attendance at Universal Studios Florida, one of the two theme parks at Universal Orlando, has been up about 20 percent “most weeks” since Transformers opened in June.

Burke said NBCUniversal has elevated the capital spending in its theme parks to about $500 million this year—an amount likely to become an annual baseline. The company’s goal is to open one new attraction every year both at Universal Orlando and at Universal Studios Hollywood in Southern California, he said.

“Our theory is, if we open the right kind of attraction—they have to be well-executed; they have to be things that are easy and clear to market—that we can really grow this business,” Burke said.

jrgarcia@tribune.com or 407-420-5414

City of Miami to Vote on $250 million Overtown Development Plan to Include a Hotel

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Sept. 12—A Miami anti-poverty agency is poised to turn over two city blocks in the blighted but historic heart of Overtown to a prominent developer, who promises to spend $250 million to build apartments, a hotel, shops, restaurants and music venues on the long-vacant land.

The Miami City Commission, sitting as the Southeast Overtown/Park West Community Redevelopment Agency board, is set to vote Thursday on the bid by R. Donahue Peebles, whose Overtown Gateway plan scored the highest among three proposals submitted in response to an advertised request by the city.

City officials described the ambitious plan as potentially “transformational” for the impoverished, mostly black Overtown district, where numerous redevelopment efforts in the past have run aground or failed to deliver on promises of revitalization.

But some critics question whether the CRA is getting enough in return for surrendering control of the property, which was valued at around $20 million by two appraisals commissioned by the agency, and which holds symbolic significance for longtime Overtown residents. The lots along Northwest Second Avenue formed part of Overtown’s legendary but long-gone Little Broadway, the row of nightclubs, theaters and hotels where stars like Ella Fitzgerald, Sam Cooke and Count Basie performed until the area’s decline in the 1960s.

At a community forum hosted by district commissioner Michelle Spence-Jones last week, some Overtown residents asked that the CRA retain ownership of the land. Many asked that the agency also make sure that Peebles fulfills promises outlined in his plan to fill construction and permanent jobs, as well as affordable apartments, with Overtown residents.

“We should never give up that land,” said activist Grady Muhammad. “It is too valuable to this community.”

He added, referring to past promises of affordable housing in the neighborhood: “It’s usually affordable, but not for us.”

Peebles’ local partner in the proposal, developer Barron Channer, said the project would provide housing affordable to working people and generate millions in tax revenue and direct payments to the CRA and Miami-Dade County, which ceded several parcels to the agency. The precise terms of the land transfer would be negotiated later, but would likely entail giving the CRA a percentage of rents generated by the project under a long-term agreement, he said. The agency would also collect about $2.3 million in property taxes annually to invest in further neighborhood improvements, he said.

Channer said he and Peebles are acutely sensitive to the history of Overtown and the needs of its residents, and added it’s time they participate in the resurgent development that is revitalizing nearby downtown Miami. The project would help re-establish Overtown as an attraction for visitors and as a place to live while retaining its historic character, he said.

“We can build something that is modern and metropolitan, but fits into an area that is soulful, and gives you an introduction to a culture that is different,” Channer said.

Despite the skeptics, the Peebles plan has not generated anywhere near the level of organized opposition that helped sink a previous proposal for the CRA properties by Detroit-based Crosswinds Communities, strongly supported by then-Mayor Manny Diaz. That plan, which like the Peebles project would have mixed market-rate housing, affordable apartments and commercial development, did not go through competitive bidding, however.

This time, the CRA issued a request for proposals for several vacant properties it controls along Northwest Second Avenue and which have long been designated for redevelopment. The CRA’s stated goal: to repopulate and revitalize Overtown’s mostly desolate historic core, provide jobs and business opportunities for local residents, and bring live jazz and blues back to the neighborhood.

The agency received three proposals, including Peebles’, for two blocks that sit between Northwest Eighth and Northwest Sixth streets on the east side of Second Avenue. The site is just south of the historic Lyric Theater, the lone Little Broadway survivor whose long-delayed renovation and expansion is scheduled for completion later this year. Peebles was also among three developers making bids for a third block across Second Avenue, but the CRA has postponed consideration of those proposals.

A three-person evaluation committee gave Peebles’ proposal the highest score of the three submissions. The second-highest score went to All Aboard Florida, the Florida East Coast Industries subsidiary that is building a $2 billion passenger rail service from downtown Miami to Orlando. All Aboard proposed to spend $127 million to build a residential, office and commercial and entertainment complex connected to additional development at the site of its planned new train station a block away.

Aside from the use of public land, neither developer is seeking subsidies to build.

The CRA is under a tightening deadline to get development going on those first two blocks.

Those lots were ceded to the CRA by the county under a proviso that development permits be issued by May 2015 and construction begun within a year after that, Channer said. If the deadlines aren’t met, the county, which has already extended the deadline previously, could reclaim the property.

That’s why the city needs to move quickly on the proposal, said Spence-Jones, who is term-limited and leaves office in November.

“The reason is not because Spence-Jones is leaving in the next 60 days,” the commissioner said during the forum, responding to critics who have suggested she’s rushing through the approval. “We cannot lose another 10 years. There is nothing secretive going on. Overtown has waited long enough.”

Spence-Jones has publicly butted heads with CRA director Clarence Woods, who opened negotiations on a potential deal with both Peebles and his partner and All Aboard. Spence-Jones questioned why agency staffers had done so, appearing to echo complaints aired at the forum by Overtown residents who suggested the agency was “disrespecting” Peebles and Channer because they’re black. All Aboard president P. Michael Reininger is white.

A clearly frustrated Woods said he put the two top proposals through “due scrutiny” to ensure that whichever team eventually wins the contract can pull the project off. The resolution the CRA board will vote on Thursday instructs the agency to negotiate with Peebles first, and to turn to All Aboard if a deal can’t be reached with him.

Peebles, who divides his time between New York and South Florida, is regarded as one of the most successful African-American developers in the country. He first came to town to develop the area’s first majority black-owned hotel, the Royal Palm in Miami Beach, the result of an agreement that ended a black tourism boycott of Miami after local political leaders snubbed South African anti-apartheid hero Nelson Mandela during a 1990 visit following his release from prison. Peebles ended up selling the hotel, which opened in 2002, to condo converters who then lost it in a foreclosure.

Peebles, whose net worth is estimated at around $350 million, went on to build the Lincoln office building off Lincoln Road Mall and to redevelop the historic Bath Club property on the Beach. He is now developing projects in New York City.

Peebles’ proposal calls for two towers, of 34 and 37 stories, to be built over a multi-story base and garage. The complex would include a 150-room extended-stay hotel and 670 rental apartments—60 of them at rates meeting the federal definition for affordable housing, and the rest pitched as “workforce” housing for middle-income families. It would also have 160,000 square feet of office and retail space and retain the existing “Sawyer’s Walk” as an open pedestrian plaza lined with shops, in similar fashion to Lincoln Road Mall, Channer said.

Some local stakeholders said the initial design by architect Luis Revuelta, which Channer described as a modern interpretation of Overtown’s traditional buildings, was too bland and risked overwhelming the remaining historic buildings in the area, including the 1913 Lyric Theater, which range from Caribbean style to Mediterranean Revival and Art Deco.

“We don’t want a cookie-cutter building,” said Tim Barber, executive director of the Black Archives, which is restoring the Lyric. “We want to make sure respect is paid architecturally to the scale and character of the neighborhood. Overtown was a Conch-style village as well as an Art Deco neighborhood. This project could really define this neighborhood. You want that village-type feel. Otherwise, why would anyone come here?”

With Hard Rock’s Bid Rejected, MGM, Mohegan Sun Square Off

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Sept. 12—The competition for a resort casino in Western Massachusetts has dropped to two competitors, narrowing the field and offering a stark contrast between an urban and rural gambling environment.

The suburban option—Hard Rock International’s proposal for an $800 million casino, hotel and live-entertainment venue—was rejected Tuesday by West Springfield voters, 55 percent to 45 percent.

“It’s one less horse in the race,” said Jennifer Baruffaldi, a member of Citizens for Jobs and Growth in Palmer, Mass. “I was very happy about it.”

Baruffaldi and her organization support Mohegan Sun’s proposal to build a $1 billion resort casino and adventure water park in Palmer.

People in Palmer who oppose the plan, however, feel differently. Iris Cardin of Palmer doesn’t want a casino anywhere—Palmer or Springfield.

“I don’t wish this on my adversary,” Cardin said.

Mohegan wants to build on a sprawling, wooded area in a town with fewer than 13,000 residents off the Massachusetts Turnpike. MGM would build in the dense downtown of Springfield, right off I-91.

Neither MGM Resorts International nor Mohegan Sun on Wednesday would say directly that it is pleased to have one less competitor in the pursuit of the sole license to operate a resort style casino in Western Massachusetts. Instead, each spoke about the strengths of its plan.

“We are confident that our nearly $1 billion resort casino proposal, which will bring thousands of new jobs and economic development to Palmer and the region, represents the best choice for Western Massachusetts,” Mohegan Sun CEO Mitchell Etess said in a prepared statement.

MGM spokeswoman Carole Brennan said via e-mail: “MGM Resorts feels strongly that our unique world-class urban proposal is the best economic driver for the region. We came into this process knowing we had to set a very high bar because of the caliber of competitors. Competition makes us all better; and MGM has had its fair share throughout the municipal and state processes.”

Massachusetts’ state legislation passed in 2011 allowed three gambling resorts in different regions of the state. State law requires casino developers to have a signed agreement with the towns where they would build and also a vote of approval from residents.

Springfield residents approved MGM’s proposal during a July vote, 58 percent to 42 percent.

“In terms of the region, in terms of the tie-ins, it’s a world-class resort casino,” said Jim Leydon, a spokesman for Springfield Mayor Domenic Sarno. “It’s something they’ve never done before. You can visit the complex without ever actually going onto the gaming floor. ... You can walk into any of the other amenities, shopping, or a skating rink. ... It’s cutting edge. It’s never been done in an urban setting before.”

Palmer residents are slated to vote on Nov. 5. If Palmer residents approve the project, the Massachusetts Gaming Commission will decide whether Mohegan Sun or MGM is a better attraction for the state.

Separately, a collection of anti-casino groups will start collecting at least the 68,000 required signatures to put a statewide referendum on a ballot in November 2014 calling for a reversal of the 2011 legislation that allowed casinos, said EmmaLadd Shepherd of Quabog Valley Against Casinos.

Last week, state Attorney General Martha M. Coakley rejected a proposed ballot question for 2014, according to news reports. The anti-casino groups are working on an appeal process that would seek a decision from the state Supreme Judicial Court, Shepherd said.

Mohegan Sun has been building support for its pitch in Palmer for four years. Residents in the town supported a similar casino pitch in 1997. And the plan has its supporters in town government.

“We were the first community to be looking at a casino in Western Mass.,” said Palmer Town Council member Paul E. Burns. “Really, we led the charge in terms of ensuring there was a Western Mass. casino in the legislation.”

He believes Mohegan has had the best plan all along, but it’s undeniably easier to compete with one rival plan instead of two.

“Now that the field has narrowed to two, I think it makes Palmer a much stronger contender because of their stark contrast between the urban setting and a rural setting,” Burns said.

Robert T. Koger of Molinaro Koger is Arrested and Put Behind Bars

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A shocking course of continuing fraudulent conduct is unveiled

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

 

 

By Jim Butler and the Global Hospitality Group®

Hotel Lawyers | Authors of www.HotelLawBlog.com

12 September 2013

Hotel Lawyer with the latest on the arrest and jailing of Rob Koger, formerly of Molinaro Koger

There are some significant new developments in the saga of Robert T. (“Rob”) Koger and the high profile civil and criminal cases surrounding him. Here is the latest. (Earlier articles are cited below.)

On Monday, September 9, 2013, Robert T. Koger, 47, was arrested and brought before a federal judge in the Eastern District of Virginia. At the detention hearing, a court determines whether an accused will be released from jail (on bail or otherwise) before the trial. In Koger’s case the court found that Koger is a “flight risk” and he will therefore be held behind bars where he will stay until his trial for mail fraud and other criminal charges.

Background on the case

Koger was one of the principals in the Virginia-based hotel brokerage firm of Molinaro Koger, Inc., until the publicity of Koger’s fraud and deceptions of client Host Hotels & Resorts led to the demise of his firm.

Earlier this year, on February 19, 2013, the US Attorneys’ office announced that the COO of Molinaro Koger (Jonathan Propp) had pled guilty in federal court to conspiracy to commit wire fraud as part of a 3-year, $20 million “straw buyer” scheme involving the sale of hotels for the account of Host Hotels & Resorts.

It was only a matter of time until action was taken against Koger, and now the public process has started with the arrest and incarceration of Koger.

What happened at Monday’s hearing?

 

 

In an article dated September 11, 2013 (Broker Arrested Over $2.5 M Real Estate Fraud), Kathryn Brenzel, writing for Law 360 reported on Koger’s arrest and detention hearing. She noted that Koger is facing multiple [civil] lawsuits related to real estate fraud.

 

Remarkably, the affidavits cited in the report by Law360 say that Koger did not stop his fraudulent schemes when Host charged him with fraud. Instead, even during the pending criminal investigation, the report says that Koger continued his fraudulent activities through July and August, 2013. In fact, the federal authorities worked with one of the last victims to document part of the charges leading to his arrest.

According to an affidavit filed in connection with Monday’s hearing:

  • “The methods and means that Koger used to execute the Tampa frauds are consistent with the long-term pattern of criminal tradecraft Koger has used to execute multiple other similar fraud schemes.”
  • “Significantly, Koger has continued his pattern of activity while he knew he was under investigation and in an ostensible attempt to impede that investigation.”

Authorities estimate that Koger’s fraudulent schemes garnered more than $50 million.

The case is USA v. Koger, case number 1:13-mj-00542, in U.S. District Court for the Eastern District of Virginia.

Why is this case significant?

The case of USA v. Koger is significant because it is a criminal case. It involves big names in the hotel industry—a significant hotel brokerage firm, the largest lodging REIT in the country and other well-known industry players in the roles of good guys and bad guys. This kind of problem is certainly not the norm of hotel brokerage, nor even very common.

But the acts complained of here are flagrant and outrageous. The brokerage firm used straw buyers to defraud sellers into selling properties at one price and then quickly flipped such properties to other buyers for an instant profit. The brokers forged a dead straw buyer’s signature. Brokers took funds that were to be placed in escrow accounts and paid salaries and operating expenses with them.

And according to an affidavit in the current case, Rob Koger, practically up to the date of his arrest, was using false identities (posing as “Rick Thompson” and “John Stern” among others), a slew of bogus email accounts and trying to steal millions of dollars through his chicanery.

In addition to the extreme conduct, it appears that the fraudulent schemes were BIG in scope—perpetrated over 5 or more years, and involved up to $50 million stolen by Koger and his accomplices.

What was Koger thinking?

For other articles on this case see: 

Stranger than fiction? A closer look at the Molinaro Koger criminal convictions regarding deals with Host . . .

Hotel Lawyer on the fiduciary, contractual and agency duties of hotel brokers - Host Hotels & Resorts LP v. Molinaro Koger litigation

 

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

Real Hospitality Group Signs Contract to Operate Dunes Manor Hotel and Motel

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RHG and Genesar, Inc. Establish Long Term Relationship to Operate the Landmark Ocean City Hotel

Ocean City, Md. (September 13, 2013) - Executives at Real Hospitality Group announced today they’ve been selected to manage the Dunes Manor Hotel and Dunes Motel in Ocean City, MD.  RHG was selected by Genesar, owner of the hotels, after an extensive search for a management company. They will  work closely with the owner for the long term planning of the assets and to execute strategies to capitalize on the recent extensive capital improvement program, completed earlier this year.  The agreement includes the 170-room Dunes Manor Hotel, known for the Victorian-style setting, expansive deck and locally popular oceanfront dining, afternoon teas, and conference space for groups and events.  RHG will also operate the Dunes Motel, a seasonal 111-room motel at the end of the Boardwalk with traditional guest rooms and efficiencies.  “We are excited to add these properties to our portfolio and appreciate the commitment of Genesar to allow us to execute its vision for the hotels,” comments Ben Seidel, President of Real Hospitality Group.

The Dunes Manor is a landmark hotel at the end of the Boardwalk at 28th Street, known for the unique exterior design, all oceanfront rooms and its history of personalized service and hands-on management by Genesar.   The late Thelma C. Conner, founder of the Dunes properties, was locally known for her commitment to the community.  She acted as the ultimate hostess for the afternoon teas at the Dunes Manor, the building of which was her lifelong dream.  Genesar invested $3 million in guest room and hotel renovations which were completed in time for the 2013 season.  “We feel that Real Hospitality Group shares our vision and is focused to help us achieve our objectives.  With our investment in the hotel, we are looking to create a long term plan for the operation and the company going forward,” notes the President of Genesar, Inc. “Real Hospitality Group has a proven track record of performance that will bring immediate value to our important assets.”  The General Manager of the Dunes properties added, “We are looking forward to the partnership of RHG and the hotel management to deliver the results of our next phase of the facility.”

Important to Thelma Conner was establishing a hotel where the guests feel they are at home and are accommodated with Eastern Shore hospitality.  Today, the new generation of ownership, which includes her daughters, grandchildren and three very close friends, continues to move her vision forward.  Genesar’s valuable staff and dedicated employees have contributed to the success the business has known for more than 25 years.  Beyond the renovations, Genesar is poised to look at the future, attracting new guests in addition to long-time loyal guests, and continuing to enhance the experience at the hotel while upholding the service, traditions and style for which it is known.  

RHG was selected after Genesar embarked on an 18-month search for a company that fit its style and vision.  Critical to the success of the relationship has been the collective understanding of Genesar’s goals and objectives.  RHG is committed to execute actions that capitalize on the trends in bookings, market the renovations and re-position the hotel in online channels.  As a top national management company, the locally based RHG will be able to deploy resources and strategies with expertise fine-tuned in high demand markets.  RHG has the ability to assign oversight to seasoned executives in the company with resort experience and local presence in the Ocean City market.

 

Nobody Asked Me, But…No. 109 Hotel History: Howard Dearing Johnson (1896-1972)

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Host of the Highway and The Orange Roof; My New Book; Quote of the Month

By Stanley Turkel, CMHS, ISHC

September 13, 2013

1.  Hotel History: Howard Dearing Johnson (1896-1972), Host of the Highway and The Orange Roof

The Wyndham Hotel Group unveiled new plans for its Howard Johnson brand on September 10, 2013, including a new logo and conceptual exterior and interior designs.  “Howard Johnson is a brand that for millions of travelers conjures fond memories of ice cream cones and family vacations,” said Eric Danziger, Wyndham Hotel Group president and CEO.  “It’s a name that carries with it incredible equity.  Reinvigoration is about growing the brand and restoring it to its rightful place within the industry by inspiring that same type of brand loyalty and affinity from a new generation of consumers.”

My book “Great American Hoteliers: Pioneers of the Hotel Industry”, AuthorHouse 2009, contains the following interesting biographical information about Howard Johnson:

Ice cream, fried clams and hot dogs were the staples of his menu, and the orange roof and a weather vane the signature fixtures of his stores.  But Howard Dearing Johnson probably was best known for being one of the first to introduce the restaurant industry to the world of franchising.  Before franchising became the target of franchisee/franchisor disputes, Johnson used the business tool for what it was intended - a uniform system of operations and procedures that provided rapid expansion opportunities….  From a simple soda-fountain menu he built his reputation on manufacturing and selling high-quality ice cream.  Johnson spent 15 years with his father’s cigar company and eventually became one of the company’s top salesman, reportedly earning $25,000 in his first year.  Following his father’s death, Johnson developed a new line of cigars that were not accepted in the marketplace because cigarettes were becoming more popular.  The failed product created a sizable debt and a loss of pride for Johnson, who closed the business and went to work in a small drugstore in Wollaston, Massachusetts.

But shortly after Johnson began to work there, the proprietor died and the surviving son asked Johnson to take over the shop.  In 1925, with a $2,000 loan, Johnson set out to pay off his $42,000 debt as the owner of the Howard D. Johnson Co. “patent medicines and toilet articles” shop.  It sold patent and over-the-counter medications but Johnson quickly noticed that the marble soda fountain was the busiest part of the drugstore.  It was said that his “secret formula” for ice cream was based on his mother’s recipe with twice the normal butterfat and all natural ingredients.  The super-premium ice cream was an immediate sensation and led Johnson to open a beachfront ice cream stand where he sold $60,000 worth of ice cream cones in the first year at 5¢ per cone.  By 1928, he had created 28 flavors which became his trademark.  He advertised it as “New England’s Best Ice Cream” which reinforced his early guiding business principle, “Quality Sells.”

Over the next few years, Johnson did for the hot dog what he had done for the ice cream cone.  Instead of the normal greasy hot dog on a stale bun, Johnson clipped the frankfurters at both ends, notched them lengthwise and grilled them in pure creamery butter.  He used only the highest quality meats, relish and lightly toasted, buttered fresh rolls.  The results were amazing: the hot dog was elevated to a gourmet food status and became a public favorite all over the country.

Johnson’s success was noticed by some local bankers who lent him the funds to open a restaurant in Quincy, Massachusetts in a ten-story Art Deco building.  This first Howard Johnson restaurant featured chicken pot pie, baked beans, fried clams and, of course, those delicious hot dogs and the now-famous Howard Johnson ice cream  all 28 flavors.  In 1929, unexpected circumstances boosted the restaurant’s popularity.  Boston’s Mayor Nichols banned an upcoming production of Eugene O’Neill’s “Strange Interlude”.  Rather than dispute the mayor, the Theatre Guild moved the production to a theatre in Quincy which was close to a Howard Johnson restaurant.  The five-hour play was presented in two parts with a dinner break in between.  Hundreds of influential Bostonians ate in the Howard Johnson restaurant for the first time.  Soon thereafter the stock market crashed and Johnson could not borrow any construction money.  It was the monetary crisis that led Johnson to utilize a remarkable new idea called franchising.  In 1935 Johnson convinced a business acquaintance to open a Howard Johnson restaurant in Orleans on Cape Cod.  Johnson’s organization designed the restaurant, set the service standards, created the menu and provided the ice cream and specialty food items.  Franchising was not original with Johnson.  A&W Root Beer, a California company, sold their first franchise to J. Willard Marriott in 1925 when he founded Hot Shoppes.  By the end of 1936, there were 39 franchised Howard Johnson restaurants and 107 by the end of 1939.   By the time World War II started in 1941, Howard Johnson directed a franchise network of more than 10,000 employees with 170 restaurants, many of which served one and a half million people a year.  It was Johnson’s foresight on quality and consistency, unique architectural design, curbside marketing, brand awareness and selection of high-traffic locations that expanded the company from a single ice-cream shop to a full-service national chain.

All were operated according to the “Howard Johnson Bible”   a set of quality standards that left nothing to chance.  Johnson himself wrote the manuals on how to operate, how to handle customers courteously and how waitresses should dress (“Howard Johnson Waitresses- Your Appearance from Head to Toe”).  Johnson planned menus, recipes, operating methods, regimens for cleanliness and rules of courtesy.  He decreed that customers must always find a friendly and welcome experience when they visited Howard Johnson’s.

World War II brought gas rationing, food stamps and a sharp reduction in automobile travel.  Johnson’s restaurants were particularly hard hit.  By 1944, only twelve remained in business.  The Johnson company survived by preparing and serving commissary food to shipyards, the military and war factory workers.  Johnson’s survival was helped because his pre-war production of ice cream gave him large wartime quotas of sugar and cream.  Those quotas were valuable since sugar and cream were strictly rationed.  

The post-World War II period was characterized by a huge burst of economic activity stimulated by the GI Bill of Rights, pent-up demand for new housing, availability of cheap gasoline, new automobiles, creation of suburbia and improvement of state and interstate highways.  By 1947, 200 new Howard Johnson restaurants were opened throughout the Southeast and Midwest.  By 1954, aided by company-owned turnpike restaurants, there were 400 Howard Johnson’s in 32 states.  In the 1950’s and 60’s , the company bought out those franchisees who were not maintaining Howard Johnson standards.

It would be the roadside restaurant, however, that would propel Johnson to fame and fortune.  Johnson seemed to have a keen eye for what Americans like, and was able to combine elements of various styles of roadside dining into one package that would be appealing to the greatest number of people.

As the company entered the 1960s, the company had a successful formula in place, and there were plenty of new interstate highways being built providing prime locations for Howard Johnson’s Restaurants and Motor Lodges for years to come.  In the mid 1960s, Howard Johnson’s was at the top of its game.  In 1965, the company’s sales exceeded that of McDonalds, Burger King, and Kentucky Fried Chicken combined. 

By 1965, the Howard Johnson name was to be found on 770 restaurants and 265 motor hotels…..

Meanwhile, motel operators recognized the extraordinary benefit of locating next door to a Howard Johnson restaurant.  They copied the architectural features of white clapboards and roof cupolas.  The success of these motor inns ultimately caused the Johnson company to get into the lodging business.  It was a natural extension of the Johnson reputation along the highways of America.  The first Howard Johnson Motor Lodge was opened in 1954 in Savannah, Georgia.  Meanwhile, new toll roads and highways opened in Pennsylvania, New Jersey, New York, Connecticut, Massachusetts and Indiana.  Many of them featured service plazas with Howard Johnson restaurants.

In 1957, President Dwight D. Eisenhower instituted the system of interstate highways which, in turn, triggered the greatest road and home building boom in the history of the United States.  The federal legislation set very specific standards, one of which prohibited service plazas on the new highways.  Not to be thwarted, the Johnson company acquired sites near the exit ramps with land enough to include a Howard Johnson Motor Lodge as well as a restaurant…..

Johnson continually standardized food service to a greater extent than had ever had been done before on large scale.  Ellsworth M. Statler standardized the food services of Statler Hotels but Johnson produced commissary-prepared food, a method of reheating frozen food and of serving it which was standardized in all Howard Johnson restaurants.  In about 1955, a hotel student at the Florida State University did a study which showed that the average ice cream cone being served in Florida Howard Johnson restaurants costs the company 88¢.  The fact that they were being sold for 10¢ meant that the 10¢ cone was a loss leader.  Cone prices were raised shortly thereafter and the dippers used were of a size which made it difficult to serve a larger-than-called-for portion.  The number of seats in a Howard Johnson restaurant varied as new stores were built.  But gradually there evolved a standard building with standard seating and equipment.  The design and operation became more and more standardized so that each Howard Johnson store might have rolled off an assembly line.  Every year between 1961 and 1979 annual sales increased.   During that period, the Johnson family sold nearly two million shares of stock worth an estimated $125 million.  

The Howard Johnson Motor Lodges were a sharp improvement in quality over the many poorly maintained motels on the highways.  They featured modern facilities with large guestrooms, fresh linens, a bathtub and shower, air conditioning and television.  Each motor lodge had an orange roof and an adjoining Howard Johnson restaurant.  Although Howard Johnson kept expanding to more than 1000 restaurants and 500 motor lodges in 42 states and Canada by 1975, the original Johnson concept was coming to an end.  Over 85% of the company’s revenues depended on automobile travel.  The oil embargo and gasoline shortage of 1974 reduced the number of automobiles on the road drastically….

The company assumed that the traditional Howard Johnson’s restaurants would continue to have exclusive control of the highways. But McDonald’s and others began to win contracts and increase roadside locations.  Even the Marriott Corporation, whose Hot Shoppes competed with Howard Johnson’s, entered the fast food segment with its Roy Rogers chain.  

As more of the Interstate Highways system neared completion and the nation became saturated with orange roofs, the company looked to other restaurant concepts for continued growth, tacitly admitting that maybe the Howard Johnson’s restaurant was not all things to all people.  Red Coach Grill, an upscale steakhouse similar to the Steak and Ale chain, was often located next to a Howard Johnson’s Motor Lodge to tap business travelers and their expense accounts, but ultimately the concept did little for the company.  More successful was the Ground Round, a casual restaurant chain that survives today under separate ownership.

At the same time, new competition delivered a one-two punch that hit the existing restaurant and lodging business, and it nearly was a knockout blow.  America had become a nation in a hurry, and fast food restaurants met the new demand for a good, quick meal at a good, low price.  Suddenly everyone was singing.  “You Deserve a Break Today” and “Have It Your Way at Burger King.”  Howard Johnson seemed like yesterday’s news.  Changing times overtook the hospitality business as well.  Somehow the spanking new Holiday Inn, Ramada Inn and Marriott hotels that were springing up everywhere made those once-modern Howard Johnson’s Motor Lodges look not so modern anymore….

On April 28, 2005, in the New York Times, the famous chef Jacques Pepin wrote the following poignant recollection:

“When word spread that the last Howard Johnson’s restaurant in New York City in Times Square would probably close, there was something of an uproar.  Though plans are uncertain, brokers say it is likely that a big retail chain will replace it.  The idea that this icon of American dining will disappear from the city landscape made me particularly sad, since it was at Howard Johnson’s that I completed my most valuable apprenticeship.”

Pepin reports that he had only been in America eight months when he started working at Howard Johnson’s.  He moved there from Le Pavillon, the temple of French haute cuisine, where he had been working since his arrival in the United States in 1939.  Howard Johnson, who often ate at Le Pavillon, hired him and his fellow chef, Pierre Franey.

“It was Mr. Johnson’s contention that I should learn about the Howard Johnson Company from the ground up.  I worked a few months as a line cook at one of the largest and busiest Howard Johnson’s restaurants at the time, on Queens Boulevard in Rego Park.  I flipped burgers, cooked hot dogs and learned about the specialties of the house, among them tender fried clams made from the tongues of enormous sea clams whose bodies were used as the base for the restaurants’ famous clam chowder.  Other specialties I became familiar with included macaroni and cheese, hash browns, ice cream sundaes, banana splits, and certainly, apple pies.”

Pepin worked for Howard Johnson for more than nine years mostly in the Queens Village commissary where he and Franey learned how to mass produce Howard Johnson specialties such as beef stew, scallops in mushroom sauce, beef burgundy, clam croquettes, etc.  Pepin recalled making fresh stock in large batches requiring 3000 pounds of veal bones, carving 1000 turkeys and making 10 tons of frankfurters.  Apparently, Howard Johnson would visit the test kitchen to ask questions and make suggestions.  

Pepin recalled, 

“Albert Kamin, the famous Swiss pastry chef, soon joined us, working to set up a pastry department that produced 10 tons of Danish pastries a day for the hundreds of restaurants in the chain and thousands and thousands of apple, cherry, blueberry and pumpkin pies each day.  This was my first exposure to mass production.  I developed products for the Red Coach Grill, which was the Cadillac of the Howard Johnson chain, as well as the Ground Round, and the grocery division of the company, which supplied supermarkets, schools and other institutions.”

2.  My New Book

My new book, “Built To Last: 100+ Year-Old Hotels East of the Mississippi” is in the final design process. It will be available by the end of October 2013. It is a paperback which tells the stories of 86 hotels (50 rooms or more) and each is illustrated with an antique postcard.  It has a foreword by Joseph McInerney, (President and CEO Emeritus of the American Hotel and Lodging Association), preface, introduction, bibliography and index.  It has been accepted by the American Hotel and Lodging Educational Institute for promotion, distribution and sale.  If you would like to reserve an autographed copy, send a check for $24.00 ($19.95 plus $4.05 for postage and handling) to:

Stanley Turkel

147-03 Jewel Avenue

Flushing, N.Y. 11367

Be sure to include your mailing address 

3. Quote of the Month

“The cure for boredom is curiosity. There is no cure for curiosity.”

Dorothy Parker


Park Central Hotel New York Completes Extensive Renovation of its 761 Guest Rooms and Public Spaces

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NEW YORK, Sept. 13, 2013—In the pre-Depression building frenzy of 1927, a hotel named Park Central, a nod to nearby Central Park, opened in Midtown West. Now, following an immense multi-million dollar renovation, this landmark property at 870 7th Avenue now features newly refurbished guest rooms, and will unveil elegant interiors and public spaces in October inspired by Central Park and other iconic New York locations.

The hotel is designed by award-winning architecture and design firm, Jeffrey Beers International (JBI), whose inspiration for the renovation stemmed from the hotel’s surrounding iconic landmarks and celebrated history, to create a distinctive, stylish and guest-centric experience.

“Park Central Hotel New York has been part of New York City’s history for close to a century, and we are excited to revive its original grandeur with a new contemporary attitude,” explained Don Fraser, General Manager, Park Central Hotel New York. “In doing so, we retained the integrity of its architecture through a significant renovation, but updated it with chic design and amenities to seamlessly weave together old and new.”

Park Central Hotel New York is a full service lifestyle hotel catering to a wide range of travelers, with 761 guest rooms, a grand lobby and mezzanine, and a meeting space made up of over 15,000 square feet of diversified event areas, including 11 meeting rooms, one boardroom and a versatile ballroom with an adjacent forum.  It will also house a signature restaurant and bar concept, a “grab-and-go” fine foods market, and a state-of-the-art fitness center.

From the neutral palettes, tranquil ambience and authentic furnishings found in the hotel’s public spaces, to the handsomely outfitted guest rooms replete with tufted fabric headboards and dark-stained millwork details, it is evident that Beers allowed the property’s original personality to be showcased brilliantly in his redesign.

“This was a special project for us,” said Jeffrey Beers, founder of Jeffrey Beers International. “Park Central has a long and distinguished history, and its location at the epicenter of New York City served as a true inspiration. We really viewed this project as a love letter to New York City.”

While this redesign is not the first Park Central Hotel New York has seen, it is the most significant to date.  The property was originally a 1,600 room hotel, and was downsized to 1,450 rooms in the 1980s, making it the city’s fifth largest hotel at the time, while operating as The Omni Park Central.  By 2004, the hotel had been scaled back to 935 rooms, and it stands today at nearly half the room count of its original incarnation.  

Since opening in 1927, the Park Central has played host to many iconic celebrities and figures including Jackie Gleason, Frank Sinatra, Mae West and Eleanor Roosevelt, who kept a suite at the hotel.  As it moves into its next era with a revived elegance, the landmark building is primed to further its reputation as a premier destination.

Michael Bridges Named as Director of Sales & Marketing for the 240-room Viceroy New York

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NEW YORK, Sept. 13, 2013—Viceroy Hotel Group is pleased to announce Michael Bridges as Director of Sales and Marketing of the brand new property Viceroy New York, slated to open October 9th on the iconic West 57th Street. Mr. Bridges, who has years of experience marketing successful luxury hotel openings across the country, began his position in April 2013 and is responsible for overseeing the sales and marketing efforts of the 29-story hotel.

In his role as Director of Sales and Marketing, Mr. Bridges leads a team of six in Viceroy New York’s sales and marketing efforts. In addition to creating and overseeing sales initiatives, Mr. Bridges also serves as a liaison with the public relations team to develop special campaigns introducing the hotel to key markets.

 

Mr. Bridges was most recently the Director of Sales and Marketing at Morgans Hotel Group’s Mondrian SoHo. He has previously held similar roles at Thompson Hotels’ Smyth Tribeca and Gild Hall on Wall Street, as well as The Ritz-Carlton Dallas. Mr. Bridges began his career at The Ritz-Carlton New York in Battery Park.

 

“We are delighted to bring Michael onto the Viceroy New York team. With his track record of ultra-successful NYC hotel openings, he is justifiably regarded as the leading modern luxury Director of Sales & Marketing in the destination. Michael is highly valued by his colleagues and clients alike, and will have a phenomenal career with our company,” said Bill Walshe, CEO of Viceroy Hotel Group.

 

A graduate of Stephen F. Austin State University, Mr. Bridges holds a BS in Sociology. He currently lives in New York City. 

 

Penn State Hotel & Restaurant Society Names Jim Abrahamson as 2013 Hospitality Executive of the Year

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September 13, 2013 - Jim Abrahamson, chief executive officer for Interstate Hotels & Resorts, has been named 2013 Hospitality Executive of the Year by the Penn State Hotel & Restaurant Society (PSHRS). Abrahamson will receive the award during the fifty-second Hospitality Executive of the Year Award Reception, which will take place November 10, 2013 in conjunction with the annual International Hotel, Motel and Restaurant Show in New York. As part of the honor, Abrahamson also will be inducted into the Penn State Hospitality Hall of Fame, located at The Nittany Lion Inn on Penn State’s University Park campus. 

“Our alumni and industry advisory boards continue to emphasize to us the importance of our developing students’ leadership skills and abilities,” said John O’Neill, director of the School of Hospitality Management. “We know that for our students to be successful leaders, they should learn from the hospitality industry’s greatest leaders. That’s why we’re so happy that a seasoned leader like Jim has accepted our invitation to spend time with our students discussing his wealth of leadership experiences.” 

 

Abrahamson joined Interstate Hotels & Resorts from InterContinental Hotels Group, where he was president of the Americas region, that company’s largest operating unit, and was also an executive director of IHG’s board of directors. Previously, he held key leadership positions in the areas of operations, development, and franchising with Hyatt Corporation, Marcus Corporation, and Hilton Worldwide. 

Abrahamson is active in the hospitality industry and in community affairs. He currently serves as an executive director on the board of directors of Interstate Hotels & Resorts. He also serves as national chair of the U.S. Travel Association. In addition, Abrahamson is the secretary/treasurer of the American Hotel & Lodging Association (AH&LA) and will serve as association chair beginning in 2015. He is a member of the AH&LA Governmental Affairs and HotelPAC Committees, and is on the advisory board of the Pillsbury Institute for Hospitality Entrepreneurship. He is chairman of the board of directors at the Atlanta Symphony Orchestra and is on the advisory board at the Emory University Eye Clinic. Abrahamson holds a degree in business administration from the University of Minnesota. 

 

“Recognition as the Penn State Hotel & Restaurant Society’s Hospitality Executive of the Year is a great honor,” said Abrahamson. “The hospitality industry is like no other, where anyone with ambition and initiative, coupled with an outstanding education, can achieve career success. I’m grateful my journey led to Interstate Hotels and Resorts. Through my experience with some of the industry’s leading companies, I have been able to successfully guide our global growth strategy and witness it spring to life. Opening the eyes of Penn State students to similar possibilities is what renders this honor a true privilege.” 

 

Interstate Hotels & Resorts is the leading U.S.-based global management company operating nearly 360 hotels with more than 69,000 rooms spanning the United States and 10 additional countries. 

Kristen Jordan-Wood Appointed as Vice President of Sales & Marketing for Metwest Terra Hospitality

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SAN DIEGO, CALIF. (September 13, 2013) - Kristen Jordan-Wood has been named Vice President of Sales and Marketing for MetWest Terra Hospitality, announced Gary Gutierrez, President of the hotel management company. 

 

In her new role, Jordan-Wood will oversee all of the Sales & Marketing activities, which include the strategic direction and management of MetWest Terra’s marketing and sales initiatives.  She has 18 years of hotel experience, previously working for Morgans Hotel Group/Ian Schrager Hotels for 10 years, holding the positions of Regional Director of Marketing for the West Coast, based in Los Angeles, Corporate Director of Global Sales in New York and Director of Sales for Clift in San Francisco. 

“Kristen’s extensive experience in the luxury boutique sector adds a valuable dimension to our organization and will be instrumental as we continue to grow,” said Gutierrez. 

Jordan-Wood has also held sales positions with W Hotels, Wyndham Hotels & Resorts and most recently worked as an independent consultant, offering sales and marketing expertise to luxury lifestyle hotels. She will be based in Los Angeles at the corporate headquarters of MetWest Ventures.

 

Perry Tarleton Named Director of Sales for the Holiday Inn & Suites Atlanta Airport-North in Georgia

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ATLANTA, GA. - September 13, 2103 - Perry Tarleton has been named Director Of Sales of the Holiday Inn & Suites Atlanta Airport-North, a 330-room full service hotel located near Hartsfield-Jackson International Airport in Atlanta, GA.  Perry, having worked in the Atlanta hotel industry since 1989, brings a wealth of knowledge about the Atlanta, Perimeter, Mid-town and Cumberland/Galleria markets.  

“Perry is the ideal choice to be this hotel’s Director Of Sales,” said Bob Holsten, Executive Vice President Of Operations, First Call Hospitality, Inc., which manages the Holiday Inn & Suites.  “Not only does he bring experience and knowledge to the table, he also has great leadership abilities and the right vision for this property - and will help make our hotel one of Atlanta’s top preferred lodging destinations.”

 

Perry’s 24-year career in the Atlanta Metro area expands across several brands, most recently Starwood, IHG and Mariott International hotels.  Known for his contacts and affiliation within the local and national government communities and agencies, Perry brings a proven track record of performance to the Holiday Inn & Suites.

 

“I’m tremendously excited and anxious to focus my efforts on making this hotel not just the Airport market’s leader, but the downtown Atlanta market’s as well,” said Perry. “Our hotel has a tremendous customer service record and brings an outstanding new experience and value for our customers.  We have an energetic and motivated Sales Team with a fantastic hotel to sell - I really believe we’ll do something special here and the entire city will take notice.”

 

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