TAMPA, Fla.--February 7, 2018 --Today, the Tampa Marriott Westshore Hotel unveils the redesigned property, which includes its 310 guest rooms, 18 Next Gen Meeting Spaces and lobby, totaling a $20 million renovation overhaul. The premium Tampa hotel provides its experienced business travelers, millennial visitors and locals cutting edge technology and well-designed environments to revolutionize guests’ stay.

“We understand our guests lead fast-paced lives, and we redesigned our property with that in mind, providing forward thinking, aesthetically pleasing spaces that help foster their inventive nature,” said Tina Smith, General Manager, Tampa Marriott Westshore. “Through thoughtful offerings such as mobile check-in or mobile key entry on rooms, guests have even more control over their experience.”

Renovations of the full-service Tampa Marriott Westshore include redesigned, technology introductions and refreshed décor that come together to provide guests a seamless experience upon first arrival to the property. The lobby’s residential-style décor and open layout gives guests the latest in design, creating an inviting space in which to relax or collaborate.

The hotel’s new Mobile Guest Services include:

• In-Room Guest Entertainment Platform: Guests use their TVs to log onto their personal Netflix or Hulu accounts and watch their favorite shows.
   
• Mobile Requests: Guests can chat directly with hotel staff for anything they need.
   
• Mobile Check-In and Check-Out: These features make it easier for guests to get their room faster or hit the road quicker.
   

The guest rooms’ boast a striking modern look, featuring a spacious and elevated design. New in-room amenities are driven by consumer insights and include an elevated shower experience, newly open closets and moveable work surfaces that replace traditional work areas and meet guests’ desire for more flexibility and multi-function furniture.

The 18 Next Gen Meeting Spaces now feature a flexible set-up with pivotable walls, moveable partitions and modular furniture to ensure every guests’ meeting, wedding or special event perfectly suits their needs. To keep guests connected, technology amenities have been installed, such as free Wi-Fi and wireless chargers throughout the hotel. 

Carmel, IN – February 7, 2018 – The 105-room Fairfield Inn & Suites by Marriott in Carmel, Indiana opened today with its smart, inventive public space and guest room design. Located at 1335 West Main Street, the Fairfield Inn & Suites Indianapolis Carmel will operate as a Marriott franchise, owned by Main Street Hotel Partners, LLC and managed by Schahet Hotels of Indianapolis, Indiana.

Whether traveling for business or pleasure, the Fairfield Inn & Suites Indianapolis Carmel offers guests convenient access to the Carmel Arts & Design District, Clay Terrace and the Center for Performing Arts. 

“Delivering both function and comfort, our new design and décor elevate the Fairfield brand, setting a new standard in the moderate tier category,” said Callette Nielsen, vice president and global brand manager, Fairfield Inn & Suites. “At Fairfield Inn & Suites, we provide an easy, positive and productive travel experience, as well as the promise of consistent and reliable service at an exceptional value. The Fairfield Inn & Suites Indianapolis Carmel is a truly stunning example of the brand’s contemporary look and feel, and we are pleased to introduce Fairfield Inn & Suites hotels in the Carmel area.”

From the moment they arrive, guests are welcomed by the hotel’s modern, new design features, including an updated exterior with a signature tower, a curved porte-cochere and an inviting glass entrance that ushers them into the hotel. Once inside, guests experience the hotel’s open public space featuring natural light and views throughout the lobby to connect the indoors with the outdoors. Consistent with the Fairfield brand’s heritage of great service and a warm welcome, guests are greeted by associates who can easily move from behind the angled front desk to interact and answer questions.

In the lobby area, guests can choose to be productive, relax or enjoy breakfast or a snack in a modern and flexible environment. Guests can also unwind in the lobby’s inviting living area ― whose focal points include a natural stone hearth, organic-shaped sofa and lounge chair, and unique local features — or they can grab a drink or snack item from the 24/7 Corner Market.

The breakfast area’s signature farm table provides a central gathering place where guests can watch television, meet up with colleagues or get work done. In the morning, guests can enjoy complimentary hot breakfast, choosing from oatmeal, scrambled eggs, sausage, make-your-own waffles and other healthy items, such as fruit, yogurt, and whole grain cereals and breads.

The room décor warmly welcomes guests into a comfortable, productive and restful environment. Flexible and functional, the guest room includes a well-designed work area, an ergonomic chair, task lighting and electrical outlets where guests need them. A curved, mobile desk enables guests to create their own work space, while also optimizing their television viewing.

The hotel’s thoughtfully designed rooms and suites place the living and working area near the window to allow for more natural light and views. The design also places the sleeping area toward the middle of the room, helping to give guests a better night’s sleep on plush mattresses, as well as easier access to the bathroom and wardrobe. The bright, spacious living area also offers a comfortable couch, refrigerator, coffeemaker and microwave.

Additional hotel amenities include an indoor swimming pool, an exercise room, valet laundry service, complimentary Wi-Fi, as well as fax and copy services. The hotel also offers 495 square feet of meeting space to accommodate functions of up to 30 people.

Pacific Harbour, Fiji (February 8, 2018) – Recognized within Fiji for the extremely high quality of its award-winning cuisine, Nanuku Auberge Resort has appointed Oliver Scarf as Executive Chef of the resort.

A key component of Chef Oliver’s overall activity will focus on raw, dehydrated and wellness cuisine with sustainably-sourced, local Fijian produce. This is intended to dovetail with Nanuku’s on-site wellness program that offers guests the perfect solutions for everyday stress, in the process promoting and instilling the formulas required for a healthy lifestyle though a combination of cuisine, spa and relaxation therapy.

“Fiji has been steadily building its reputation as the culinary powerhouse of the South Pacific in recent years as evidenced by the arrival of several master chefs and the opening of a string of signature restaurants in many of the destination’s top resorts,” said general manager Sascha Hemmann. “Having someone of Chef Scarf’s caliber has taken our already substantial culinary reputation a quantum leap forward and we are delighted and feel very privileged to have him on the executive team.”

The New Zealand-born national is no stranger to Fiji having worked at the iconic Laucala Resort in Taveuni. Scarf’s experience also extends to several high-profile luxury hotels and resorts in New Zealand, including the eco-designed Te Waonui Forest Retreat in Franz Josef and at the George Hotel in Christchurch, where he took on the acting Chef de Cuisine role at the hotel’s renowned Pescatore restaurant.

HAMILTON, Bermuda--Belmond Ltd. (NYSE: BEL) (“Belmond” or the “Company”) today announced that it has acquired Castello di Casole, a luxury resort and estate in Tuscany, Italy.

The Company purchased from the current owner the entire equity capital of two entities that together own Castello di Casole, one of the largest private real estate properties in Tuscany. The purchase price, including transaction costs, is approximately €39 million ($48 million) with a possible further €2.85 million ($3.5 million) payable contingent upon certain real estate sales being realized.

The property is the latest addition to Belmond’s family of ‘Italian Icons’, which includes Belmond Hotel Cipriani in Venice and Belmond Hotel Splendido in Portofino. Located within easy access of both Florence and Siena, the resort and estate span 1,500 hectares and comprise the 39-key Castello di Casole hotel, together with high-quality vineyards and olive groves, extensive wooded Tuscan countryside, and 48 residential plots, of which 16 remain for sale, with three subject to non-binding reservation letters of intent to purchase.

The acquisition has been financed using cash on hand. Upon takeover of management, Belmond will rebrand the resort as Belmond Castello di Casole.

Roeland Vos, president and chief executive officer, commented, “I am delighted to announce the addition of the stunning and historic Castello di Casole to the Belmond portfolio. The Belmond brand continues to gain momentum and this acquisition marks the latest step in our journey towards realizing our strategic growth plan. The expansion of our global footprint is a central component of our strategy to double the Company’s EBITDA by 2020. Castello di Casole complements our existing Italian portfolio of iconic hotels in Italy, with many of our discerning guests already traveling from Belmond Villa San Michele in Florence to this authentic rural hideaway in Tuscany.”

Awarded Best Hotel in Europe 2017 by Travel & Leisure (US), the historic castle dates from the 10^th Century and was once owned by acclaimed Italian cinematographer Luchino Visconti, synonymous with Italy’s ‘Golden Age of Cinema.’

Belmond Castello di Casole will epitomize Belmond’s command of ‘The Art of Good Living’, combining nature, culture and wellbeing to create memorable travel experiences and special occasion events. The hotel will offer spacious luxury accommodation that has been designed to honor the rich and rustic traditions of Tuscany, full of terracotta and golden colors with timeless antique furnishings and original stone floors. Many of the suites feature private gardens that blossom with white roses in summer and the heated outdoor infinity pool offers sweeping views across the quintessential Tuscan landscape. Guests can enjoy a range of activities that celebrate the rich natural flora and fauna within the estate, including truffle hunting, classic Tuscan cooking, hiking and cycling via the vineyards, olive groves and local hamlets. The Spa, located in the vaulted wine cellar, features a range of Etruscan, traditional and modern facilities and treatments.

Mr. Vos continued, “Our brand has long been known for its timeless products in inspiring locations. We believe this stunning castle steeped in Etruscan history presents a compelling opportunity to build on our past experience of acquiring distinctive properties and showcasing their iconic status through strategic investment, helping to drive greater revenue, EBITDA and brand exposure. When you enter any one of our hotels, or step on board a Belmond train or cruise, you know it belongs to our family because it has a soul. Without doubt, Castello di Casole has that individual essence. It has a rich and glamorous heritage making it a natural fit for the Belmond portfolio. We are delighted to bring Castello di Casole under the Belmond umbrella in 2018.”

Starting in 2018, the Company expects to invest €7.3 million ($9.0 million) in a phased refurbishment of the hotel over four years, including the addition of two new villas on two residential plots that will be retained, bringing the resort’s total key count to 41. In addition, the Company expects to sell the remaining 14 land plots, including the three that are subject to reservation letters, over the coming years, effectively reducing the Company’s net investment in the estate.

February 8, 2018 – PORTSMOUTH, NH – According to analysts at Lodging Econometrics (LE), in 2017 there were 827 hotel transactions where selling prices were reported into the public domain. The Average Selling Price Per Room (ASPR) for the period was a reported $141,479, down from the peak of $154,230 set in 2015, but up 8.6% Year-Over-Year (YOY).

There was $15.3B in purchases of hotel assets and property transfers in 2017, excluding M&A activity, down substantially from the peak established in 2015 of $26.1B. REITs were the largest net investors for their portfolios with $4.2B in investments, followed by privately held equity funds with a volume of $4.1B.

By Erich Baum

Portland, Maine, is the northernmost outpost of the Atlantic Seaboard, host to a six-month winter and minor league hockey. A small, third-tier city, with steady but slow economic growth, Portland’s downtown hotel inventory recently grew from five to ten properties over a six-year period. Why did developers and loan underwriters think there was enough demand potential to support approximately 1,000 new rooms, a 127% increase? Because it could, evidently. Credit goes to induced demand.
 

Downtown Portland Lodging Market Trends
The following table details key rooms-revenue metrics for Downtown Portland between 2013 and 2016.

Downtown Portland Lodging Market Trends – Key Rooms-Revenue Metrics

Source: STR Global

As of 2007, Downtown Portland contained four good-quality hotels with roughly 550 rooms. A fifth hotel of approximately 200 rooms operated on the margins in a state of disrepair. Occupancy and average rate (ADR) levels were healthy and stable, but short of eye-popping. Then, beginning in 2009, affiliates of Residence Inn by Marriott, Hampton by Hilton, Courtyard by Marriott, Hyatt Place, and Marriott’s Autograph Collection opened successively, and the derelict hotel noted above was closed, rehabilitated, and expanded into a 289-room Westin. Supply grew at an average annual rate of 9.1% between 2009 and 2016, with most of the growth realized in 2014 and 2015 (as noted above). The rapid expansion might have turned out as another example of the hotel industry getting ahead of itself; another instance of aggressive development and profligate lending. But something else happened instead. By 2016, the results were in, and they were unequivocally positive. In that year, the first full calendar year of operation after the last of the new hotel openings, Downtown Portland reached new ADR heights and near-peak occupancy levels.

A Working Waterfront and Cobblestone Streets
Downtown Portland is peninsular, with three coasts. The Downtown district is surprisingly hilly; plows and salt keep it navigable in winter. The centerpiece is the Old Port, a multi-block historic district of cobblestone streets and an exploding restaurant scene. The architecture and streetscapes provide a distinctive sense of place, and the waterfront, with its rickety wharfs and piers, remains a working port. Despite the many charms of the Downtown core, Greater Portland can also be relegated to third-tier-city status: one characterized by a stable, slow economic growth rate. The Downtown district contains a small and static inventory of office space. Most of the region’s major employers are based in the suburbs or nearby towns with their own character, like Freeport, home of L.L. Bean. With no convention center, the city’s only large-scale gathering space is a civic center that opened in 1970s. ZZ Top was the first headliner. The arena is best known as the home of minor league hockey’s Portland Pirates.

Often, when the opening of new hotel inventory coincides with material demand growth, the group segment does the heavy lifting. New hotels with significant meeting space have a means of self-generating occupancy. Among the new hotels in Downtown Portland, however, only the Westin has a significant allotment of meeting space. Construction of the other hotels was based on faith in surplus transient demand, suggested mainly by the strong performance of the existing Hilton Garden Inn affiliate, the lone downtown hotel with an esteemed brand. The Old Port’s emergence as a dining destination served as a positive indicator, as well. But against the burden of filling roughly 1,000 new rooms, the evidence looks scant.

And yet the new, almost 350,000 room nights of annual capacity were filled at a rate of 77% in 2016, stronger than the pre-recession occupancy rate. Pricing also surged. The new hotels thrived by accommodating excess demand (previously turned away due to lack of capacity) and by stimulating new demand through the advertising and promotional efforts of the hotel staff and their brands’ marketing and frequent-guest programs. In the case of the new Marriott Autograph Collection and Westin affiliates, the quality and scope of the facilities also played a role in reaching new markets. Combined, these dynamics encompass the phenomenon of supply-induced demand.

Supply-Induced Demand, Clarified
For the most part, when demand is “induced” by new supply, occupancy that was historically accommodated elsewhere is captured by the expanded market in question. Before the rapid expansion of Downtown Portland’s hotel inventory, leisure travelers who were a) unable to stay in Downtown Portland because of insufficient capacity but, b) sought a Portland-like experience, had numerous comparable options. They chose Freeport, Maine; or Portsmouth, New Hampshire; or Providence, Rhode Island; or Boston, Massachusetts. And where travelers with business to transact in Portland were concerned, those who now stay Downtown mostly stayed in South Portland, in one of the many hotels near the Maine Mall. Induced demand is largely demand that is re-routed to a location/product that is either more preferred, or was preferred in the first place but unavailable. 

Hotel demand in the broadest sense is born in economic activity, which creates both the need for travel (for commercial purposes) and the disposable income necessary to support the human want for travel (for leisure purposes). In this broad context, hotel demand grows proportionate to economic growth. Looking at the lodging industry on a national basis is instructive in this regard. The following table summarizes key rooms-revenue metrics for the U.S. lodging industry between 2013 and 2016.

U.S. Lodging Market Trends – Key Rooms-Revenue Metrics

Source: STR Global

Comparing the national supply and demand change rates with those of Downtown Portland, far less volatility is in evidence, which is reasonable considering the national survey encompassed approximately 4.5 million hotel rooms, compared to roughly 750 rooms in Downtown Portland. A larger sample smooths out the bumps of volatility. The national statistics, because of their scale, also serve as the best measure of base economic change. Between 2013 and 2016, the national lodging market’s demand grew at an average annual rate of 2.9%, basically in line with underlying national economic growth over that period.

By comparison, Downtown Portland’s demand grew at an average annual rate of 14.6% over the same period. Seen as a microscopically small share of the national lodging market, Downtown Portland’s above-national-market rate of gain is balanced by below-national-market results in some other market or markets. Supply-induced demand is largely a measure of one or several new hotels’ ability to consume some other hotel market’s lunch.

Predicting Success
Supply-induced demand is common. For any market that experiences at least one sellout night per year, a new hotel—even a charmless rooms-only hotel—will technically induce demand when it accommodates a single stay that was previously turned away. Predicting how much demand can be induced is the challenge. Meeting space helps, but new-build full-service hotels in anything but the most urban of locations are increasingly rare. Otherwise, prospects are generally tied to questions of high-season market depth; the likely emergence of new demand generators in the market; or the exceptional features, facilities, or branding of the new hotel(s) in question.

Analysts can also cite comparable market data, such as the experience in Downtown Portland, which, in hindsight, was ripe for expansion. Growing wealth in travel-hungry feeder markets throughout the Northeast, and these travelers’ preference for coastal urban settings with a vibrant dining and nightlife scene, have proven to be major catalysts. The city is renewed and ascendant, and is being appreciated by new generations for its indelible charms and authenticity. Investors in Portland’s new hotels have largely been rewarded for their vision and confidence in the market’s potential, and doubters have been edified.

By Jana Love

Where did January go? Are you still focused on your New Year's resolutions? Looking back through the rear view mirror (if you will) is an exercise I find interesting each year. What happened, what didn't, what is inevitably going to continue to happen, what do I want more of, less of, that sort of thing.  Lot's of trend articles will surface about the previous year.  In fact, here was ours last year: 2017 Trending.  This year, as I was reading through some of the top trends, I came across a very interesting article by Simone Puorto, called Five hospitality trends to keep an eye on in 2018. So instead of looking back, we are going to look to the future. 

It is no surprise that technology is leading the way again this year. Here are Puorto's five trends that are worth keeping an eye on in 2018. Take a look:

Fascinating, right? So many interesting things happening in hospitality and the world of technology. There are many articles, especially now, about the traveling Millennial. This traveler is a big part of what is driving these new trends. So keep your eyes watching for some of these exciting new changes. 

By Frank Schuetzendorf

Food and beverage has witnessed health growth over the past couple of years and with this trend there have been some significant shake-ups. The sector has moved increasingly from imitation to innovation.  New technology is driving products such as bio-hacked foods which may not sound very appetizing as they are de-composed and then reconstituted based on artificial intelligence (AI). There’s also a deeper understanding of F&B components at the molecular level.

Quantum computing, as it is called, allows companies to simplify and speed up the process. And as new and fresh supplies are generated, it becomes a new source of competitive advantage.

On the other side of the spectrum, where the use of technology is frowned upon, we also see strong growth, mostly linked to vegan food trends. Non-vegans are jumping on board as they become more nutrition conscious. These flexitarians (or semi-vegans), as they are referred to, may constitute a new but broad customer base, but producers need to remain mindful about the importance of flavor when launching new products to this niche market.

As technological advances play an ever important role in the industry, the next big thing is getting into consumer’s homes. Companies have begun connecting the dots when it comes to consumer convenience, so the quest for dominating the online grocery shopping is on.

Amazon dash buttons, which allow you to order your groceries by the push of a button, is what I would currently call the epitome of customer convenience. But approaching technology from another perspective will also reap some greatly promising benefits in the future. Metis co-founder David Richey, who had helped set the quality and service standards which became the industry benchmark, says technology has been disappointing so far.

“The principle use has been for better slicing and dicing of customer data for history and preferences - and for better targeting and analyzing populations for marketing purposes.  But why haven’t we used AI more as a management resource?” 

He cites the possibility of using weather, finance and population data to forecast beef prices up to 24 months in advance or buy cattle futures to hedge the market. Social media analysis could be used along with demographic data to predict wine trends which could then result in contracts with local producers.

That future may still be some way off, so what are the near term trends we can look forward to? Here are my top 10 hospitality trends that will continue to challenge, disrupt and entice producers and consumers – bon appetit!

1. Plant-based foods

The hype about veganism is still going strong with great market potential, as consumers are looking at healthier lifestyles. As meat- and dairy-free diets go viral backed by with celebrities, star chefs and supermarkets filling the aisles, the trend is also riding on the power of the Internet to spread the word: Veganuary, a vegan website provides tips on how to live well without sacrificing taste, educating consumers on balanced diets.

Along the same lines, another trend is on the brink of going mainstream: chicken, duck and meatballs made from animal cells, bypassing the need for farms and slaughterhouses, while significantly reducing the world’s carbon footprint. It may sound futuristic, but petri dishes are producing some promising results with this ‘clean meat’, as consulting firm Baum + Whiteman calls it. So will ‘from farm-to-table’ turn into ‘from lab-to-table’? Let’s see how this plays out …

2. Indian street food

The Asian street food trend has been around for quite some time. Over the past decade, Asian concept restaurants such as Wagamama or Ping Pong Dim Sum have had a good run for their money. But as different variations of Thai, Vietnamese or Korean BBQ shops and restaurants reach their prime, people are looking for new types of cuisines and combinations. With master chefs traveling around the world and bringing back new spices, flavors and textures, and introducing them into traditional recipes inspired by peasant food markets, there is a new star on the horizon that could just help the industry in filling any ‘after Asia cravings’. Welcome to Indian cuisine. India, with one of the most diverse culinary landscapes, will provide plenty of options.

The use of aromatic spices, fruits and vegetables that are grown across this fertile country requires skill and mastery to avoid spoiling a dish. India’s vast geography and different demographic regions, all with their own traditions relating to their local cuisines, each with great differences in cooking techniques and cooking utensils, is just what the F&B scene needs right now.

Forget those green, red and yellow curries. What people want are grilled, smoked and seared dishes. Baum + Whiteman predict new ethnic dining niches that will combine Indian cuisine local favorites. New but recognizable is the motto, such as in a tandoori chicken poutine or spicy lamb burritos. Can Indian cuisine become the next fusion cuisine?

3. The new fast casual

Á la minute cooking, fresh and healthy options, customer engagement and a variety of choices in the dish preparation process have proven to be successful in the fast casual segment in recent years. In order for these establishments to succeed in the future, however, relying solely on freshness, healthy options and great flavors and textures will not be enough. Consumers are increasingly demanding food anywhere and anytime. That means that fast casual operators need to think about how to provide fast home delivery, or drive-throughs or self-serve kiosks, to position themselves for competition from new entrants such New York’s Green Summit Group of virtual restaurants, accessible only online. Perhaps we will discover a new Vapiano with self-order stations similar to those found at McDonalds accepting payment by cryptocurrency?

4. Going cashless

Restaurateurs are beginning to phase out cash in their operations. This saves them time by avoiding bank deposits and also has obvious operational benefits: fewer handling errors and incidents of theft; and instead, greater transparency and liquidity. Either way, the industry is heading towards a cashless future with simplified payments made easy through PIN-less card contact payments or ApplePay. Are we looking at future payments through electronic fingerprints, retina scans or even facial recognition?

5. One dish wonders or ODWs

Single dish restaurants or one dish wonders  such as shawarma bars, hotpot, Burger and Lobster, the meatball shop – you name it – authenticity works. Single dish restaurants are still up and coming. It’s all about specialization, finding, and exploring niches that few if any players have ventured into yet, staking a claim and providing for a unique experience while optimizing inventories and bringing about greater profitability.

So far, this has been mainly savory but expect more sweet seductions or one dessert wonders to pop up. What will be the next big thing after Dominique Ansel’s Cronuts, a hybrid donut/croissant and Alain Ducasse’s Choux d’Enfer puff pastry with a choice of fillings?

The advantage of the pastry world is that we can create everything and anything from scratch. So with millennials entering the job market, I wouldn’t be surprised to find some really exciting product innovations designed by highly skilled and creative individuals. Kryptonite apple pie anyone?

6. Values and ethics

2018 will be increasingly about connecting with consumers on different levels. More and more customers will look beyond the product itself as a standalone purchase and take into account values such as ethics and transparency. Therefore, how companies demonstrate their commitment to their missions and visions will become increasingly important in the future. Companies will need to consider how they give back to mother earth through organic and biodynamic production processes, a human approach to farming, as well as the reduction of waste, and recycling.

7. Self-service kiosks and Grab and Go

People are mobile, and always on the go. Over the past years we have seen the ‘grab and go’ trend develop and evolve into a new lifestyle. People are more time sensitive, or as market research agency Mintel puts it, “time is of the essence”. The mobile snacking trend is only getting started. Today consumers are looking not only for health-conscious snacks allowing them to bypass lengthy meal times, but also expect fast snacks to be good for them. This has given rise to companies promoting slow cooking with traditional recipes. According to Mintel, there was a 214 percent increase in products in 2017 which included the mention of ‘slow’ in their product descriptions.

What’s new is that self-service kiosks, accessible 24/7, are becoming the new grab and go. Japan has had, for decades, hot and cold F&B kiosks across its cities, providing for consumer convenience while taking advantage of an immense marketing opportunity – the product here and now, at the right temperature. We should see more such kiosks popping up soon. Combined with innovative design, such kiosks can become a source of revenue at a marginal distribution cost, resulting in a further threat to the already-challenged traditional-brick-and-mortar restaurant model. Toutcru, a Lausanne self-serve kiosk concept that sells knife-cut tartare – a very sensitive dish from a food hygiene perspective – is only just the beginning of what we are looking forward in 2018.

8. Homemade

2018 is also going to be the year of homemade products. As governments encourage the development of start-ups, there is a blue ocean that is just waiting to be exploited. Micro-entrepreneur homemade F&B concepts are facilitated through delivery platforms such as JustEat, GrubHub, Deliveroo and other players. According to McKinsey, some 82 percent of food orders come from households, with only 16 percent from offices, and that the busiest delivery times are on weekends. Annual growth is forecast at 3.7 percent.

Hence with the expansion of food delivery services, we should expect a lot more home chefs to come forward with their own unique products, providing for a wide selection of F&B offerings across all ethnicities.

But this market won’t be limited to stay-at-home moms and dads with a passion for cooking. Hotels, making the best use of kitchen down times or semi-professional centralized production kitchens, will also become key players, using branded websites for distribution and maximizing profits through reduced fixed overhead costs.

Among with key success factors will be convenience, quality, healthy food, which is locally sourced and has ethnic appeal. Can we then expect a new series of TV shows featuring the most successful private chefs according to sales on distribution platforms?

9. Moringa

Moringa is the next kale. It’s a plant extract from the moringa oleifera (or horseradish tree) from India that is high in antioxidants and boasts great health benefits. A report by the Sterling Rice Group states that moringa has “far more” protein, fiber, calcium and vitamins than matcha. Moringa is expected to go mainstream in 2018 so we should expect brands like Starbucks to introduce it into their product portfolio, or as Sterling Rice says “watch for moringa to become the next matcha latte or golden milk (turmeric) latte”.

10. Companion beverage bars

Acclaimed Michelin-starred chef Jean-Georges Vongerichten has once again anticipated the trend of homemade craft beverages. Over a decade ago, his non-alcoholic homemade fruit sodas such as Cherry-Yuzu, Ginger-Lemon or Passion Fruit-Lime were an essential part of his bar concepts. The uniqueness and the art of homemade craft sodas and spirits are becoming ever apparent as new beverage concepts are being introduced into restaurants. Companion beverage bars, as the Nation’s Restaurant News calls these, are characterized as exclusive, customizable, highly-profitable bars focusing on homemade or handcrafted beverages.

New creations, ranging from smoked and grilled ingredients to alcohol-free plant-based liquors, signature house craft beers and customer-tailored drinks will become the new unique selling point and a source of competitive advantage.

In summary, the trends for 2018 are a logical sequel to the evolution of the sector in recent years. We should expect to find some astonishing new concepts around honest, transparent, highly-customized and specialized F&B, while also being mindful about profitability in a traditionally low-margin industry driven by high labor costs. Such developments are greatly inspiring and provide momentum, calling for a paradigm shift in not only what we do and how we do things, but also why. The seeds sown over the last couple of years should result in a promising 2018 vintage in this exciting industry.

SAN FRANCISCO (February 8, 2018) – Hotel Zephyr, a boutique waterfront property located in San Francisco, is pleased to announce the recent appointment of Reggie Kumar as director of operations at Hotel Zephyr.  In his new role, Kumar is responsible for spearheading all operations for the 361-room property, including strategic planning, maximizing hotel efficiency, project management, and front office staff management.

“We are so pleased to welcome Reggie to the Hotel Zephyr team,” said Jason Williams, general manager at Hotel Zephyr.  “With over a decade of experience working in the hospitality industry in Northern California, his expertise and management experience will be a key asset to our property.”

Kumar joins Hotel Zephyr after a distinguished 12-year career working in hospitality and service operations at luxury boutique destination properties around Northern California.  Kumar has extensive experience in strategic planning, improvement of operational efficiency, team building and project management in his previous roles in the hospitality industry.   As a supervisor, Kumar utilizes a hands-on, “lead-by-example” approach with his team when providing directives.

Prior to joining Hotel Zephyr, Kumar was the general manager of Sanctuary Beach Resort in Monterey, CA for seven years, where he oversaw the entire operation and met financial, customer relations, operations and sales objectives while managing all departments to help implement the ownership’s vision and goals.  Kumar also worked at Carmel Mission Inn as the rooms division manager from 2005-2010 and Monterey Beach Resort as the front office supervisor from 2003-2005. 

MINNEAPOLIS (February 8, 2018) – Carlson Rezidor Hotel Group, one of the world’s largest and most dynamic hotel groups, today announced the appointment of nine field directors within its development team. This new geographical structure allows the team to work more effectively with franchise owners and operators in addition to other business areas across the organization.

“The diverse backgrounds of the newly appointed directors will be an enormous asset to our Americas development team as we execute our new 5-year Plan,” said Terry Sanders, chief development officer, Americas, Carlson Rezidor Hotel Group. “This new team and refreshed structure sets a firm foundation for our future growth as we work to not only meet, but exceed, our goals and expand our brands footprint in key markets across the Americas.”

Mark Williams, vice president, Regional Development, will continue to lead development in the East regions, and Dinesh Chandiramani, vice president, Regional Development, will continue to lead the West regions. The new development field team includes:

Supporting regions in the West:

• Ryan Foley has been with Carlson Rezidor for almost ten years in various field leadership positions throughout the U.S. Most recently, Foley was the general manager of Radisson RED Minneapolis, and prior to that, he was the general manager at Radisson Hotel Nashville Airport.
   
• Charles Isola joins from Which Wich, where he was a franchisee owner and operator of three locations. His locations were consistently recognized by the brand as top-operated sites. Prior to Which Wich, Isola initiated contact and negotiated contracts with prospective franchisees for Sotheby’s International Realty brand as their regional vice president of Brand Affiliation.
   
• Amit Patel joins from Wyndham Hotel Group where he was a director of Franchise Sales, New Construction. At Wyndham, he was responsible for new construction sales and development in an eight-state territory in the Northwest.
   
• Jamie Pomeroy joined Carlson Rezidor last year as manager, Transfers & Renewals, on the development team. He was responsible for the license agreement transfer and renewal process across all brands. Prior to that, Pomeroy was a financial advisor with Merchants Investment Services where he managed over 700 accounts and $21 million in assets.
   
• Chris Stanley was a regional vice president of Development at Red Lion Hotel Corporation where he was responsible for full and select service franchise brand development growth in the Southwest. Prior to that, Stanley was a senior director of Development at Starwood Hotels & Resorts.
   

Supporting regions in the East:

• Bill Balletto comes to Carlson Rezidor from Choice Hotels Franchising, Inc., where he was a director of Membership Development for over 15 years. He also held various leadership positions throughout his more than ten years at Amerihost Properties, Inc.
   
• Ray Bodnar joins from Wyndham Worldwide where he was the director of Franchise Sales & Development for 20 Wyndham brands in the South. Prior to Wyndham, Bodnar held various leadership and sales roles at Verizon.
   
• Greg Burgett has been on the development team for three years, supporting the Midwest region. Prior to that, Burgett was a regional director of Membership Development at Best Western International.
   
• Joe Stokes has over 25 years of experience in the hospitality industry. He comes from Wyndham Hotel Group, where he was most recently a director of Franchise Sales, New Construction, and prior to that a director of Business Development.
   

Image Details
Back row: Ken Greene, Dinesh Chandiramani, Bill Balletto, Charles Isola, Ray Bodnar, Chris Stanley, Greg Burgett, Joe Stokes, Terry Sanders. Front row: Jessica Humphrey, Jamie Pomeroy, Amit Patel, Mark Williams, Ryan Foley, Janelle Russenberger.

SEATTLE (February 8, 2018) – Noble House Hotels & Resorts, Ltd., a hotel ownership and management group with an upscale portfolio of 18 distinct and visually captivating properties spanning the U.S., today announced the appointment of Chad Bustos as senior vice president of sales and marketing.  Bringing more than two decades of hospitality expertise to this role, Bustos will oversee all marketing strategies and sales efforts for the brand.

“Chad Bustos joins Noble House at the perfect time, as we continue to grow our portfolio in locations with distinction and character,” said Founder & Chairman of Noble House Hotels & Resorts Pat Colee. 

Before joining Noble House, Bustos’ most recent role as senior vice president of sales and marketing with the Irvine Company focused on the strategic positioning and rebranding initiatives across marketing, public relations, advertising, sales, and revenue management.  He began with the company in 2006 as senior director of marketing and was promoted to vice president of marketing in 2011 before rising to the role of senior vice president of sales and marketing in July 2016.

Previously, Bustos worked with KSL Resorts as corporate director of interactive marketing for five years after two years as assistant vice president of marketing for Hoover Management.  He began his career with Alaska Air Group as director of electronic marketing strategies.  In these leadership roles, he contributed to the strategic implementation of brand development, revenue management, digital, e-commerce, and CRM platforms.  Bustos is a graduate of the University of Arizona where he received a bachelor’s degree in marketing, and he completed a doctoral program in philosophy from the University of Washington.

For more information on Noble House Hotels & Resorts, please visit www.NobleHouseHotels.com.

Hilton remains world’s most valuable hotel brand but lead over Marriott shrinks 74%; Premier Inn and Holiday Inn are strongest hotel brands as consumers appreciate value for money; Airbnb’s disruptive presence only set to grow as it targets business travellers

For the third year in a row, Hilton is the world’s most valuable hotel brand, with a brand value of US$6.3 billion. However, recording a 24% fall from last year, Hilton has seen their lead at the top over Marriott shrink from more than US$3.3 billion to just US$865 million, a staggering 74% reduction.

As Hilton’s brand value decreased, Marriott improved its brand value 8% to just under US$5.5 billion on the back of growing group revenues. A driving force behind the increase can be traced to Marriott’s 2016 acquisition of Starwood – their largest ever – which boosted the company’s number of properties by 40%. As part of the restructuring of their Starwood portfolio, the company moved rooms from Sheraton to Marriott, maximising the profitability of their flagship brand. This has however also impacted Sheraton’s brand value, which decreased by 50% to US$1.9 billion this year.

Marriott’s success is prevalent throughout the 2018 table when comparing its portfolio to Hilton’s. Only five hotel brands from Hilton’s portfolio made the table, compared to 15 from Marriott’s. Additionally, the total value of Hilton’s hotel brands in the Brand Finance Hotels 50 league table fell by 23%, while the total value of Marriott’s portfolio in the ranking rose by 3%.

David Haigh, CEO of Brand Finance, commented:
“The trends in the Brand Finance Hotels 50 league table reflect the success of Marriott’s expansion strategy, which is likely to continue exerting a positive impact on brand value in the future. It will be interesting to see if Marriott overtakes Hilton to claim the top spot for most valuable hotel brand next year.”

Premier Inn remains the strongest hotel brand this year with a Brand Strength Index (BSI) score of 88.7 and a brand rating of AAA, while UK competitor Holiday Inn managed to hold on to its place in second with a score of 85.0, also receiving an AAA brand rating. The results of the top two strongest hotel brands reflect their mass-market appeal, as well as customer appreciation of value for money, which supports higher scores for preference and satisfaction. As these brands continue to maintain brand equity and perform well with their stakeholders, their brand strength can only stand to gain.

Perhaps the biggest threat to the hotels industry is the growth of online community accommodation sites, like Airbnb. Though the brand is not included in the Brand Finance Hotels 50 league table by virtue of not owning properties themselves, Airbnb’s brand value rose by more than 51% to over US$5.5 billion this year. This marks the first time in which Airbnb’s brand value exceeds that of all but one hotel brand valued in the Hotels 50 - Hilton. Given Hilton’s downward trend, it would not be surprising to see Airbnb surpass all hotel brands in the 2019 table. What is more, Airbnb may soon come into much more direct competition with hotels as it begins to target business travellers through their Airbnb for Business program, which launched in the second half of 2017. Time will show if hotels move to collaborate with Airbnb in the future or try to compete by providing authentic personalised services to consumers, raising the game for guest experience.

View the Brand Finance Hotels 50 report here

By Erich Baum

Portland, Maine, is the northernmost outpost of the Atlantic Seaboard, host to a six-month winter and minor league hockey. A small, third-tier city, with steady but slow economic growth, Portland’s downtown hotel inventory recently grew from five to ten properties over a six-year period. Why did developers and loan underwriters think there was enough demand potential to support approximately 1,000 new rooms, a 127% increase? Because it could, evidently. Credit goes to induced demand.
 

Downtown Portland Lodging Market Trends
The following table details key rooms-revenue metrics for Downtown Portland between 2013 and 2016.

Downtown Portland Lodging Market Trends – Key Rooms-Revenue Metrics

Source: STR Global

As of 2007, Downtown Portland contained four good-quality hotels with roughly 550 rooms. A fifth hotel of approximately 200 rooms operated on the margins in a state of disrepair. Occupancy and average rate (ADR) levels were healthy and stable, but short of eye-popping. Then, beginning in 2009, affiliates of Residence Inn by Marriott, Hampton by Hilton, Courtyard by Marriott, Hyatt Place, and Marriott’s Autograph Collection opened successively, and the derelict hotel noted above was closed, rehabilitated, and expanded into a 289-room Westin. Supply grew at an average annual rate of 9.1% between 2009 and 2016, with most of the growth realized in 2014 and 2015 (as noted above). The rapid expansion might have turned out as another example of the hotel industry getting ahead of itself; another instance of aggressive development and profligate lending. But something else happened instead. By 2016, the results were in, and they were unequivocally positive. In that year, the first full calendar year of operation after the last of the new hotel openings, Downtown Portland reached new ADR heights and near-peak occupancy levels.

A Working Waterfront and Cobblestone Streets
Downtown Portland is peninsular, with three coasts. The Downtown district is surprisingly hilly; plows and salt keep it navigable in winter. The centerpiece is the Old Port, a multi-block historic district of cobblestone streets and an exploding restaurant scene. The architecture and streetscapes provide a distinctive sense of place, and the waterfront, with its rickety wharfs and piers, remains a working port. Despite the many charms of the Downtown core, Greater Portland can also be relegated to third-tier-city status: one characterized by a stable, slow economic growth rate. The Downtown district contains a small and static inventory of office space. Most of the region’s major employers are based in the suburbs or nearby towns with their own character, like Freeport, home of L.L. Bean. With no convention center, the city’s only large-scale gathering space is a civic center that opened in 1970s. ZZ Top was the first headliner. The arena is best known as the home of minor league hockey’s Portland Pirates.

Often, when the opening of new hotel inventory coincides with material demand growth, the group segment does the heavy lifting. New hotels with significant meeting space have a means of self-generating occupancy. Among the new hotels in Downtown Portland, however, only the Westin has a significant allotment of meeting space. Construction of the other hotels was based on faith in surplus transient demand, suggested mainly by the strong performance of the existing Hilton Garden Inn affiliate, the lone downtown hotel with an esteemed brand. The Old Port’s emergence as a dining destination served as a positive indicator, as well. But against the burden of filling roughly 1,000 new rooms, the evidence looks scant.

And yet the new, almost 350,000 room nights of annual capacity were filled at a rate of 77% in 2016, stronger than the pre-recession occupancy rate. Pricing also surged. The new hotels thrived by accommodating excess demand (previously turned away due to lack of capacity) and by stimulating new demand through the advertising and promotional efforts of the hotel staff and their brands’ marketing and frequent-guest programs. In the case of the new Marriott Autograph Collection and Westin affiliates, the quality and scope of the facilities also played a role in reaching new markets. Combined, these dynamics encompass the phenomenon of supply-induced demand.

Supply-Induced Demand, Clarified
For the most part, when demand is “induced” by new supply, occupancy that was historically accommodated elsewhere is captured by the expanded market in question. Before the rapid expansion of Downtown Portland’s hotel inventory, leisure travelers who were a) unable to stay in Downtown Portland because of insufficient capacity but, b) sought a Portland-like experience, had numerous comparable options. They chose Freeport, Maine; or Portsmouth, New Hampshire; or Providence, Rhode Island; or Boston, Massachusetts. And where travelers with business to transact in Portland were concerned, those who now stay Downtown mostly stayed in South Portland, in one of the many hotels near the Maine Mall. Induced demand is largely demand that is re-routed to a location/product that is either more preferred, or was preferred in the first place but unavailable. 

Hotel demand in the broadest sense is born in economic activity, which creates both the need for travel (for commercial purposes) and the disposable income necessary to support the human want for travel (for leisure purposes). In this broad context, hotel demand grows proportionate to economic growth. Looking at the lodging industry on a national basis is instructive in this regard. The following table summarizes key rooms-revenue metrics for the U.S. lodging industry between 2013 and 2016.

U.S. Lodging Market Trends – Key Rooms-Revenue Metrics

Source: STR Global

Comparing the national supply and demand change rates with those of Downtown Portland, far less volatility is in evidence, which is reasonable considering the national survey encompassed approximately 4.5 million hotel rooms, compared to roughly 750 rooms in Downtown Portland. A larger sample smooths out the bumps of volatility. The national statistics, because of their scale, also serve as the best measure of base economic change. Between 2013 and 2016, the national lodging market’s demand grew at an average annual rate of 2.9%, basically in line with underlying national economic growth over that period.

By comparison, Downtown Portland’s demand grew at an average annual rate of 14.6% over the same period. Seen as a microscopically small share of the national lodging market, Downtown Portland’s above-national-market rate of gain is balanced by below-national-market results in some other market or markets. Supply-induced demand is largely a measure of one or several new hotels’ ability to consume some other hotel market’s lunch.

Predicting Success
Supply-induced demand is common. For any market that experiences at least one sellout night per year, a new hotel—even a charmless rooms-only hotel—will technically induce demand when it accommodates a single stay that was previously turned away. Predicting how much demand can be induced is the challenge. Meeting space helps, but new-build full-service hotels in anything but the most urban of locations are increasingly rare. Otherwise, prospects are generally tied to questions of high-season market depth; the likely emergence of new demand generators in the market; or the exceptional features, facilities, or branding of the new hotel(s) in question.

Analysts can also cite comparable market data, such as the experience in Downtown Portland, which, in hindsight, was ripe for expansion. Growing wealth in travel-hungry feeder markets throughout the Northeast, and these travelers’ preference for coastal urban settings with a vibrant dining and nightlife scene, have proven to be major catalysts. The city is renewed and ascendant, and is being appreciated by new generations for its indelible charms and authenticity. Investors in Portland’s new hotels have largely been rewarded for their vision and confidence in the market’s potential, and doubters have been edified.

February 13, 2018 – PORTSMOUTH, NH

According to Lodging Econometrics (LE), the total Construction Pipeline in Canada currently has 244 Projects/32,170 Rooms, up 17% by projects Year-Over-Year (YOY).

There are 87 Projects/11,286 Rooms Under Construction, up 19% by projects YOY. Projects Scheduled to Start Construction in the Next 12 Months are at 91 Projects/10,536 Rooms, up 15%, while those in Early Planning are at 66 Projects/10,348 Rooms, up 18%.

The top hotel companies in Canada’s Construction Pipeline by projects are: Marriott with 54 Projects/7,764 Rooms, InterContinental Hotels Group (IHG) with 43 Projects/4,436 Rooms, and Hilton with 37 Projects/4,218 Rooms. The largest brands in the Pipeline for each of these companies are: Courtyard by Marriott with 110 Projects/1,597 Rooms, IHG’s Holiday Inn Express with 30 Projects/3,129 Rooms and Hilton’s Hampton Inn & Suites with 12 Projects/1,231 Rooms.

Cities in Canada with the largest pipelines are: Toronto with 36 Projects/5144 Rooms, Calgary with 14 Projects/2,221 Rooms and Edmonton with 12 Projects/1,825 Rooms.

SAN DIEGO, CA – February 13, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale of Eagle Crest Resort, a 100-room destination resort hotel in Central Oregon’s high desert in the greater Bend-area community of Redmond.

HFF marketed the property on behalf of the seller, a partnership between Northview Hotel Group and funds managed by Oaktree Capital Management L.P. (“Oaktree”).  KDG Capital purchased the hotel free and clear of existing debt and unencumbered of a management contract.

Situated on more than 1,700 acres between the Willamette National Forest and the Deschutes River at 1522 Cline Falls Road, Eagle Crest Resort has sweeping views of the Cascade and Blue Mountains and the Oregon high desert.  The year-round resort is eight miles from the Redmond Municipal Airport, which provides non-stop service to most major Western U.S. markets.  Eagle Crest features three golf courses, three sports centers, a full-service spa, a conference center, an equestrian center and an abundance of outdoor activities, including biking, fishing, hiking, skiing, rock climbing and snowshoe tours.  Originally built in 1985, the hotel has undergone upgrades and renovations as recently as 2014.

The HFF investment advisory team representing the seller consisted of managing directors Scott Hall and Tony Malk and analyst Aaron Lapping along with senior director Nick Kassab.

“Eagle Crest is a unique year-round resort and residential master plan with a longstanding reputation as one of Central Oregon’s best amenitized communities,” Hall said. “The quality of the asset, opportunities for value enhancing capital initiatives and the region’s strong underlying fundamentals combine to create a highly attractive long-term investment thesis.”  

Frankfurt am Main, 13 February 2018

Taras Ettl has been appointed new Managing Director and Vice President of Middle East and Asia Operations at Steigenberger DMCC (SDMCC) in Dubai. SDMCC is a subsidiary of Steigenberger Hotels AG and is responsible for all activities outside Europe. Its portfolio includes properties such as the Steigenberger Hotel Business Bay in Dubai, the IntercityHotel Salalah in Oman and the Steigenberger Kantaoui Bay Sousse in Tunisia. Further Steigenberger Hotels are also in the pipeline in Doha (Qatar), Bangalore (India) and Bangkok (Thailand), and new IntercityHotels are being planned for Riyadh (Saudi Arabia), Dubai (UAE), Muscat and Nizwa (both Oman).

CEO Thomas Willms expressed Deutsche Hospitality’s delight at acquiring the services of Mr. Ettl. “Steigenberger DMCC will play a key role in our future growth. Taras Ettl is a Managing Director who is highly versed in the hotel sector and has been based in Dubai for many years.” Originally from Austria, Mr. Ettl has just completed a six-year stint as Vice President of Development for Middle East and Africa at the InterContinental Hotels Group in Dubai.