By Nancy Huang

The sharing economy came with the promise of revolutionizing the way we purchase goods and services, creating a frictionless world where buyers are connected to sellers, thereby cutting out the middleman and bringing down costs to consumers.

The promise came to fruition. Today, an innovative breed of startups are giving consumers more choice, control, and convenience than ever before — nowhere more so, than in the travel industry.

Yet there are signs that sharing economy accommodations are losing appeal. Since launching a decade ago, Airbnb has become the undisputed poster child of an alternative form of travel. Its rise to fortune has been nothing short of breathtaking, with a valuation of $31 billion in May 2017.

However, the world’s second largest startup (after Uber) is not having things all its own way. There are signs that the sharing economy bubble might have burst, and that Airbnb’s growth is stuttering amid a shift in travel preferences.

While far from a crisis, Airbnb’s unrelenting success appears to be slowing, giving hotels a chance to win back some valuable ground.

A series of unfortunate events

Airbnb has suffered a series of setbacks in recent times, leading commentators to speculate on whether the company needs to go back to basics. Most recently, its New York bookings risk getting slashed by half as the New York City Council voted for the company to hand over the names and addresses of its hosts in the city in order to crack down on illegal short-term rentals.

Things are more turbulent in Europe where the EU has issued Airbnb an ultimatum over a lack of price transparency. Separately, city officials across Europe are clamping down to keep Airbnb’s rental prices in check and restrict short-term stays.  In Japan, almost 80% of Airbnb’s listings have been removed as a result of the country’s new home share (or minpaku) law.

In addition to the regulatory issues, Airbnb frequently seems to be in the headlines with stories of misbehaving guests and lawsuits. Just recently, Paris forced the home-sharing giant to take down tens of thousands of listings that didn’t comply with local laws. Frustrated local residents in various cities have also been vocal about rising rental costs and mobs of tourists due to Airbnb’s presence.

With citywide crackdowns, regulation battles, and lots of PR plate spinning, this industry heavyweight has been left slightly bloodied and bruised. Arguably, it might be just a case of riding the waves. Yet beyond the headlines and disputes, there are signs of something a little more troubling.

Growth seems to be slowing

Relatively speaking, Airbnb continues to see impressive growth. But a new report by Morgan Stanley (as covered by Skift), reveals how overall adoption is slowing.

In a survey of over 4,000 adults, the amount of travelers using the platform during the 12 months up to October 2017 rose by 25%, which is an increase of 330 basis points. By contrast, last year’s survey saw an increase of 800 basis points.

Morgan Stanley found that brand awareness of Airbnb has never been so high. Yet that hasn’t translated into more beds being filled. So what might be going on?

Morgan Stanley’s analysts feel that the company might simply be too big, or that it’s just become so mainstream that the same level of growth is too hard. Some cite the fact that more travelers are concerned over privacy and security. But is there something else at play?

Reevaluating the hotel proposition

The story of decline might be less about Airbnb, per se, and more about a reevaluation of the benefits hotels offer. Historically, the hospitality industry has sold itself on a form of uniformity that guarantees reliability in both service and experience.

Airbnb arrived on the scene as a fresh and exciting alternative to this format— a rebuff to chain hotels and stuffy corporate values. The company’s focus on localness and experience-based travel led it to great success, especially among younger generations seeking a deeper connection to the destinations they visited.

Yet according to two recent surveys, overall interest seems to be waning. In MMGY Global’s recent Portrait of American Travelers (POAT) survey, 33% of respondents said that they are interested in using shared economy accommodations this year, compared with 41% last year.

There’s also an indication that travelers are warming once more to the hotel proposition — even Millennials, Airbnb’s largest audience. In a report by Allianz Global Assistance, 33% of this demographic said they believed traditional services provide the best overall experience, which is up from 22% in 2017. A significant 38% of Millennials also said traditional services provide better customer support when things go wrong.

In a written statement, Daniel Durazo, director of communications at Allianz Global Assistance noted, “This is the first time we’ve seen intent to use sharing economy services decline, particularly among Millennials, which is surprising as they led its early adoption.”

So why the change in attitudes? It may well all be the consequence of a maturing demographic whose life circumstances are dictating new priorities. As many become parents or seek greater comforts, the traditional services and amenities that a hotel provides has undoubted benefits.

Is the love affair really over?

Slowdown in brand adoption is, of course, inevitable. Growth cannot be exponential, and the world’s biggest companies all face tough times. Competitors up their games. Consumer preferences change. The love of a brand begins to wane. This is the nature of the marketplace.

So what we might be seeing with Airbnb is an inevitable consequence of consumer behavior, magnified by its own impossibly fast success. Yet it’s important to remember that the company is hardly floundering. The love affair might be on the rocks, but it certainly isn’t over.

Airbnb is enjoying substantial growth in competitive markets. According to its own data, a 90-day cap on its London listings hasn’t stopped the company reaching close to 20,000 rentals a week in the UK capital; that’s up from 1,000 listings as of just 2013.

In addition, it’s worth pointing out that Airbnb might be worth more than any other hotel company, rivaling that of the world’s largest OTAs.

As we discussed in a recent post, a raft of improvements including major product changes may also help it win new audiences and reignite interest among its loyal base of customers.

Good news for hotels?

On the whole, it might be argued that a decrease in growth and stay intent is good for hotels. But there are some who don’t see Airbnb as a direct competitor. More than that, they feel it could be an ally.

Recently, Airbnb began welcoming boutique hotels onto its platform — (something that HomeAway has also started doing), charging commission fees between just 3-5%. This could prove a profitable alternative for hotels compared with distributing through OTAS, where commission fees range between 15-30%. If enough hotels make the move, this could force OTAs to bring down their commission fees to remain competitive.

In the end, Airbnb may actually become a bigger rival to OTAs as it expands its platform towards becoming an end-to-end travel company.

Where are things heading next?

Airbnb has enjoyed incredible success since launching a decade ago. It has become synonymous with a more authentic, local style of travel, while promoting the idea of new experiences over reliable comforts. Loyal customers have bought into its ethos and the rest is history.

But a new chapter may be about to be written — one where the untouchable industry giant sees expansion slow as travelers revert back to traditional hospitality offerings.

Airbnb most certainly has the resources to pivot, but hotels will always be able to offer their own unique mix of appealing qualities, including luxury on-site amenities, and around-the-clock service. Given the changing sentiments among travelers, now’s the time for hotels to capitalize on their value proposition.

Now Front Desk Agents Can Become "Certified in the Heart of Hospitality"

Florida, USA – August 27, 2018 – Kennedy Training Network Inc.

Now your front desk colleagues can be Certified in the Heart of Hospitality and achieve what will soon be a highly coveted industry designation of being CHH. 

KTN President Doug Kennedy said: “Unlike other lodging industry certification programs which involve taking a passive, online class followed by an easy-to-pass multiple choice online test, KTN’s CHH program is a highly engaging and personalized journey, which is essential for teaching intangible skills such as hospitality. 

He added, “This is why CHH is a ‘verb’ and not a ‘noun’ as other certification titles are. Being CHH is a lifelong philosophy to live by every day in your hotel career.” 

Kennedy announced that this initiative is being led by M. Cathy Cook, who joined KTN in 2017 as Executive Director of Training and Development. Cathy began her career at the front desk over 30 years ago and has since held C-Suite level L&D positions with a major hotel brand. “We recruited Cathy Cook for a long time because she is uniquely qualified for this. Cathy is a really amazing communicator, having been designated by Toastmasters International as an ACG and ALS, and is as passionate about hospitality excellence as anyone I’ve ever met.” 

“With most guests booking online these days, the front desk is more important than ever before and those who work there are literally the first impression makers,” said M. Cathy Cook. “I’m excited to inspire those working at the front desk and pass along the philosophies that were handed down to me over the years by my own personal mentors,” she added.

Here’s How It Works:

First, CHH candidates attend a private, live 60 minute webinar facilitated personally by Cook entitled “5 Pillars Of Front Desk Hospitality Excellence.” Candidates can attend individually or in groups of up to four. Cook presents live via webcam; candidates are highly encouraged to also use a webcam. (If necessary they can use a personal laptop or smartphone.)

After the webinar, KTN forwards self-study resources including a link to replay the recording of the private webinar along with the presentation slide deck.

Next, CHH candidates take an online CHH assessment, which includes a mixed-bag of question types such as matching, multiple choice, true-false, and essay. Candidates must achieve a total score of 85% and answer all 3 essay questions correctly. They can retake the test as often as is needed for them to demonstrate full comprehension.  

Finally, candidates demonstrate what was learned by having a supervisor or co-worker video tape them at the front desk as they role-play several assigned scenes. Recordings are then sent to KTN via a free Dropbox account or other methods.

Thereafter, KTN immediately issues and mails the Certificate of Completion and Lapel Pin and the candidate can use the designation “CHH” after their name on all professional documentation.

“Although this process is highly humanized and personally engaging, we are making it affordable especially for hotels willing to commit to certifying their entire front desk staff,” Kennedy added.

The investment is a registration fee of $159 per person for 1-3 candidates per hotel and $129 each for four or more candidates. To begin the journey, simply notify KTN by email of names of the colleagues you wish to register and KTN will reply with a confirmation and billing details. registration@Kennedytrainingnetwork.com

Questions?  (01) 954.533.9130 or info@kennedytrainingnetwork.com

By Dr. Prashant Das

Although a layman’s perception of hospitality is overwhelmed by the notion of “guest-oriented services”, the scope of hospitality management in India has drastically expanded in recent years. There must be more to an industry with an annual revenue worth $1 trillion and over 8 million employees globally. The share of travel and tourism within the Indian economy is around 10% and steadily growing. More importantly, the industry claims to create nearly 8% employment in India which is expected to grow in the future. Within the next ten years, the hospitality sector will create nearly 70 lakh new jobs directly and nearly 1 crore jobs indirectly.

The statistics mentioned above only reflect the domestic career prospects. There are opportunities that lie beyond. According to Bhavna Bhatia who works with HVS, an international hospitality executive search company, the domestic demand for mid- and senior-level hospitality managers in India has exploded in recent years.

In the past, senior management positions in the Indian hospitality sector were filled with expatriates who would, in turn, train local employees. In recent years, however, not only has the local talent been taking up the domestic leadership positions, but a large volume of hospitality talent groomed in India is being absorbed globally at senior management positions.

Hospitality management: a wider scope

It is a misconception that hospitality management is only about hotels. If you like analogies, think of an astronaut simulating the challenges of space travel while practicing the voyage at remote corners of Hawaii or Antarctica.

Similarly, while services such as guest experience, food & beverage, and lodging lie at the core of the hospitality industry, hospitality managers use these areas as simulation laboratories to acquire the attitude, skills and knowledge that is easily transformable to other industries.

The most rewarding aspect of developing hospitality competencies comes from the fundamental operating attitude: creating a pleasant client experience.  In the currents state of affairs where the customer service is increasingly outsourced and gradually being supplanted by artificial intelligence,  the “human touch” sets the hospitality managers apart.

As a result, there is a strong appetite for such managers in the MICE (meeting, incentives, conferences and events),  wealth management, retail, luxury, auditing, banking, real estate, consulting, luxury and retail sectors –among others- where a manager is often client-faced.

Take Ecole hôtelière de Lausanne in Switzerland, for example - the oldest hospitality management school in the world - where nearly half the alumni work in industries beyond hospitality. The trend is strongly reinforcing itself as a much larger proportion of hospitality management graduates tend to pursue their career beyond hospitality. However, the “home” market for hospitality management graduates itself is ripe with opportunities.

An evolving skill set

Hospitality management in India (and globally) seems to be decoupling from the traditional mold of “operations” and is establishing itself as an independent domain of business services. Top-ranked hotel schools in Switzerland and Hong Kong have positioned themselves as specialized business schools and are also helping mainstream business schools with their hospitality-focused programs. In several US universities, hospitality management is already part of the business school's curriculum.

These educational trends are in response to the demands of the industry. For example, international hotel chains now expect their general managers – who have traditionally been focused on operations - to develop real estate competencies so as to maximize their hotel values.

While Indian hospitality professionals are gaining leadership in global companies - especially in areas such as real estate, revenue management, development, and strategy - most of their training in these areas happens at the workplace. Bhavna observes that in the Indian hospitality sector, positions in finance, development, accounting, etc. are mostly filled by resources home-grown within the industry and the trend is gradually picking up in the marketing area.

Schools teaching hospitality management in India who traditionally stressed more on operations are now gradually acknowledging the evolving nature of the industry whereas some new generation schools have already included business competencies within the curriculum.

Emerging trends

Traditionally, hospitality management in India has not been the most preferred career path for young management aspirants. As more candidates are picking up this career path as a choice, hotel schools need to do more on developing soft skills and the “spirit for service”, opines Sandeep Kumar, who heads the HR operations in India for catering and facilities management giant Sodexo. As the curriculum enriches on the business front, the gap between business and hospitality-oriented roles in hospitality firms could be filled. Sandeep also points out a new trend of hospitality entrepreneurship among young hospitality managers.

Gender-gap

Women have made some of the best hospitality managers in India, says Bhavna, and social and regulatory reshaping across some state governments (Tamilnadu, Haryana, Maharastra, etc.) is helping to  further improve the gender gap-related issues. Besides, the hospitality clientele (e.g. hospitals, schools, etc.) are now subtly pushing for superior gender equality in the profession.

What are recruiters looking for?

Graduates of hospitality management in India are increasingly facing the rapid evolution of the industry and must be prepared. At an entry-level, recruiters are looking for hospitality management professionals who have already been exposed to the “real work culture,” says Bhavna and over time, building a specialization is often desirable. Problem-solving, multi-tasking,  and technologically-savvy hospitality managers are “resilient enough” to serve in a dynamically changing business environment.

This article first appeared on EducationTimes.com on July 23, 2018.

ORLANDO, Fla., Aug. 27, 2018 -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced its acquisition of The Ritz-Carlton, Denver, a 202-room luxury hotel located in Denver, Colorado for a purchase price of $100.25 million, or approximately $496,000 per key. The acquisition was funded with cash available on the Company's balance sheet. The purchase price represents an estimated 14.6x multiple on 2018 forecasted Hotel EBITDA. Xenia currently forecasts that the hotel will generate approximately $2.5 million of Hotel EBITDA during the remainder of 2018.

"We are excited to have added a premier luxury hotel in one of our long-term core markets to our portfolio," said Marcel Verbaas, Chairman and Chief Executive Officer of Xenia. "As one of the few true luxury offerings in the city, and with guest rooms that are unrivaled from a quality and size perspective, the hotel's positioning in the market is uniquely differentiated.  With the hotel having received approximately $60,000 per key in capital expenditures over the past few years, The Ritz-Carlton, Denver is positioned particularly well to benefit from the many demand drivers in the downtown Denver market."

"While Denver has experienced significant lodging supply increases over the past few years, strong demand growth has allowed the market to absorb these supply increases and we view the long-term market fundamentals favorably. The acquisition of this hotel further improves our overall portfolio quality and demonstrates our ability to source high-quality assets in major lodging markets at attractive prices. We believe that our asset management platform will be able to drive significant value at the property as the hotel is able to take full advantage of the recently completed renovations."

The 14-story luxury hotel features 202 oversized rooms, including 47 suites, as well as 13,000 square feet of meeting space, The Ritz-Carlton Spa, and Elway's Restaurant. The hotel recently completed an extensive renovation of its guestrooms, food and beverage outlets, spa, meeting space and lobby.  The Ritz-Carlton, Denver is part of a mixed-use development, which also includes 25 luxury residences and 193 apartment units.

In addition to being in excellent physical condition, the hotel has exhibited consistently strong operating results, as illustrated by its RevPAR of $247.86 during the trailing 12 months ending July 31, 2018.

The hotel's downtown location provides tremendous visibility and convenience, and places it at the epicenter of Denver's corporate and entertainment district. The most notable highlights of the property's location include its proximity to the 2.2 million square foot Colorado Convention Center, over 36 million square feet of office space within one mile of the property, Coors Field, the University of Colorado Denver and the Denver Performing Arts Center.

The Ritz-Carlton, Denver becomes the 39^th hotel in Xenia's high-quality portfolio of primarily luxury and upper upscale hotels and the Company's second Ritz-Carlton branded hotel.

By Steffan Berelowitz

Amazon dominates the world of e-commerce. Could it do the same in online travel bookings? Consumers would happily use the platform to book their travel plans if given the chance, according to a recent survey by flight travel intelligence company OAG.

OAG surveyed 2,164 U.S. travelers to find out which platforms and methods they would be comfortable booking travel through. Amazon was the clear winner, with 44% of respondents saying they would consider using the e-commerce giant to book travel if it offered the service.

This result is particularly impressive considering that the second most favored option was Facebook, which only received 14% of the vote. Pinterest (2%), Twitter (3%), and Instagram (4%) all lagged way behind, gaining minimal interest.

Why was Amazon considered so much more appealing as a travel booking platform? In the following post, we’ll address that point while analyzing some of the specific lessons hotels can learn from Amazon’s way of doing business.

The mass appeal of Amazon

While social platforms are heavily used for trip planning and inspiration, the OAG survey indicates that travelers are far less keen to use them as booking platforms. Arguably, concerns over data security are an issue. In light of Facebook’s data-harvesting scandal, it’s fair to assume that consumers would have concerns about handing over their credit card details.

In contrast, millions of consumers see Amazon as a place to buy with confidence. In fact, a new survey by NPR/Marist found a huge 67% of US online shoppers had “quite a lot” or “a great deal” of trust in Amazon to protect their privacy and personal information. This figure was significantly higher compared with the level of trust towards online retailers in general.

Alongside its rock-steady credibility, Amazon makes shopping easy and gives customers unrivaled levels of choice and convenience. These qualities readily translate to the travel booking sphere, so perhaps it’s no coincidence that Amazon was seen as an appealing alternate provider in this space.

All of this leads to an important question: what specific strategies underpin Amazon’s success, and what can hotels learn from its customer service and core e-commerce principles?

1. Personalized shopping

Amazon has mastered the ability to anticipate customer needs and personalize the shopping experience. The company’s recommendation system now runs on a totally new machine-learning infrastructure that allows it to learn the unique preferences of each customer with even greater precision.

Based on customer data such as previous browsing history and spending habits, Amazon integrates tailored content into virtually every aspect of its purchase process. Recommendations are neatly bundled into lists, including “Inspired by your browsing history”, “Related to items you viewed”, and “Frequently bought together”.

These bundled suggestions encourage additional purchases, serving as an easy-to-digest shopping list among Amazon’s vast product range. This helps to simplify and speed up the shopping process, ultimately leading to more conversions.

Takeaway for hotels:

Most hotels feature the same content on their website to all of their visitors. This means that every potential guest gets an identical experience, regardless of their unique needs and preferences. Yet without the need for huge investment, hotels can personalize their own websites to offer a tailored user experience.

Website personalization technology allows hotels to intelligently customize their website messaging based on criteria such as a user’s previous online interactions, buying intent, and stage in the booking journey. With context-aware integrations, visitors are more likely to convert because the online experience is no longer rigid but designed around them.

Just like Amazon, hotels can also smooth the path to purchase by minimizing choice to make the decision-making process easier. For instance, rather than showing all available rooms, rates and added extras in one page, these options can be staggered across separate pages on the hotel website to prevent customers feeling overwhelmed.

2. Buying made simple

Amazon make shopping fast and frictionless. Consumers can easily find the products they love, and buy them with minimal fuss. This is underpinned by the company’s friction-killing tactics that are designed to reduce cognitive overload and increase conversion rates.

These tactics include removing avoidable steps between browsing and buying, pre-selecting options to help consumers with choices, and allowing customers to carry on where they left off during a previous session.

Amazon’s 1-click purchase system also helps to reduce the odds of shopping cart abandonment by allowing customers to buy with just one click. This instant purchasing removes the hassle of entering billing details, thus eliminating another potential barrier in the buying process.

Takeaway for hotels:

Hotels need to make the checkout process fast and simple. Think about things from the perspective of your guest: if they’re used to 1-click purchasing from companies such as Amazon, they’ll likely balk at having to fill out long-winded booking forms. Keep the amount of information you ask for to a minimum.

In addition, try to reduce the amount of pages and clicks needed to go from browsing to booking. Unnecessary extra steps represent an invitation to abandon a purchase. It’s also worth setting the most popular room/rate options as the default to simplify the booking process.

3. Exceptional customer service

Amazon prides itself on offering exceptional customer service. In fact, it’s embedded in the company culture—not just as a method to solve problems, but to anticipate customer needs and evolve its range of services.

In a 2016 letter to Amazon shareholders, the company’s founder and CEO Jeff Bezos talked about having a “customer-obsessed culture” and that happy customers are “always beautifully, wonderfully dissatisfied”.

This desire to constantly improve the customer experience is integral to the way Amazon innovates, leading to new services such as Amazon Prime, their unlimited One-Day Delivery option, Amazon Fresh, and the Dash ordering button—all of which ensure that customers get the products they want with convenience and speed.

Amazon’s customer service team also has a track record of going beyond the call of duty to surprise and delight. In an interview last year, Amazon’s former long-time executive Jeff Holden explained how one Christmas, a customer traveling to Russia contacted Amazon’s customer service team “worried sick” her presents weren’t going to arrive there on time.

As Holden recalls, “We spent probably $500 or $600 to overnight her $1,000 worth of gifts, and she was so completely blown away that she couldn’t stop saying,’Oh my god, you saved my Christmas!’”

Takeaway for hotels:

Great customer service doesn’t require endless financial resources. One of the most important things hotels can focus on is having better communication with guests. Contact guests with pre-arrival emails or questionnaires to find out the reason for their stay, and discover if they have any specific requirements.

Simple things such as remembering a guest by name, periodically checking they’re happy during their stay, and responding to complaints with an effective service recovery policy can all help your hotel maintain brand credibility, build rapport and earn their repeat business.

4. Social proof is crucial

Social proof is baked into the Amazon shopping experience. Every product is accompanied by prominent customer reviews and star ratings so consumers are given the confidence to buy without needing to validate their decision elsewhere online.

Amazon also uses the highly effective “Customers Who Bought This Item Also Bought” call to action to incentivize additional purchases. This messaging is based on something called market basket analysis (MBA), which analyzes relationships between the combinations of products people buy in a transaction.

This serves to prompt additional purchases based on the actions of like-minded others—yet another great conversion-driving tactic.

Takeaway for hotels:

Amazon’s relentless focus on social proof is one that all hotels can adopt. And there are no end of ways to use social proof on your hotel website.

Feature guest reviews throughout your website to add booking confidence. Include testimonials, review site widgets, and star ratings to add additional validation from past guests. If your hotel is working with influencers, you could also feature their content on your hotel website to raise your profile as visitors move closer to a booking decision.

5. Endless testing

Test, test, and test again. Amazon carries out thousands of usability experiments on its website each year through its “Weblab” experimentation system. Even though it has an incredibly refined user experience, the company understands that standing still is not an option.

This dedication has led Amazon to make some invaluable changes. For instance, it increased its annual profits by tens of millions of dollars after moving credit card offers from its home page to its shopping cart page. The Amazon mindset is that there is always room to refine and improve, and it’s this granular approach that helps it stay ahead in a hyper-competitive online shopping space.

Takeaway for hotels:

While you might not have the resources to test every element of your hotel’s website, you can make major improvements by focusing on the elements likely to drive the most conversions.

Start by checking out your Google Analytics reports (particularly the User Flow analysis) to see which pages have the highest bounce rates. Next, run A/B tests on different variations of a given page to see which changes lead to improvements. This might involve simplifying the design by adding a progress bar, testing different images, or adding a more prominent call-to-action button.

The point is to keep making incremental changes until you’ve found the conversion sweet spot.

Amazon as a travel player?

Amazon has been here before. Back in 2015, it launched, and then swiftly shut down, its travel booking site, Amazon Destinations! It also decided to stop selling hotel rooms through the now defunct Amazon Local. While there are no obvious signs it wants to reignite its interest in travel bookings, it would be foolish to imagine it might not try again.

Amazon’s popularity in the OAG survey is perhaps most useful as a guide to other travel brands — a hint at the kind of experience consumers want when they book trips and accommodation. By working with the right technology partner, your hotel can use the latest techniques and tools to create a website based on some of Amazon’s key principles, helping you to inspire your guests, anticipate their needs, and provide a great online experience that makes it easy for them to browse and buy.

MEXICO CITY, Aug. 27, 2018 -- Grupo Hotelero Santa Fe, S.A.B. Of C.V. (BMV: HOTEL) ("HOTEL" or "the Company"), one of the leading companies in the hotel industry in Mexico, announces the signing of a contract to acquire 50% of the Cleviá Grand Leon hotel. The 5-star hotel which is in its final stages of completion is located in Leon, Guanajuato and has 140 rooms. Currently brand alternatives for the property are being evaluated.

The value of the asset is Ps. 383 Million. Out of the total investment, Ps. 127 million are debt and HOTEL contributed Ps.128 million which represent 50% of the equity and will consolidate the hotel in its financial statements. The other 50% equity stake will remain with the group of private Mexican investors who previously owned the hotel.

The property is in “Puerta Bajío”, a premium location in a mixed-use real estate development including a shopping mall, residential apartments and office space. It is in the north of the city in the “zona dorada” one of the fastest growing areas in the city.

This acquisition is aligned with our diversification strategy which contemplates growth in the urban hotel segment with local partners. Including this transaction, the Company’s portfolio will reach 26 hotels and 6,490 rooms in 17 cities in Mexico, including hotels currently in construction or expansion. The Company will continue seeking and analyzing investment opportunities in hotels and properties as well as third-party hotel management contracts in the ordinary course of business.

Freehold of a Luxury Shoreditch hotel and members club is bought by Reuben Brothers who have entered into a long-term agreement with the current team, led by New York hotelier Michael Achenbaum. 

One of London’s newest and most sought-after luxury lifestyle hotels and members’ clubs, The Curtain Hotel and Members Club in Shoreditch (www.thecurtain.com), which was brought to the capital in 2017 as a new concept by Michael Achenbaum, also of Gansevoort Hotel Group (www.theghg.com ), has been sold to the Reuben Brothers.

The sale is purely transactional and no changes will be made to the management or operations of the hotel and members club; a subsidiary of Michael Achenbaum and Jeffrey Levine, the co-developers of the project, retains management of the property via a long-term lease. The lease agreement allows Reuben Brothers to benefit from additional upside through a share of the hotel’s operating income.  As Achenbaum did with the opening of the Gansevoort Hotel in the Meatpacking District of New York in 2004, he is instrumental in advancing Shoreditch as a creative destination with a growing luxury element.

The Curtain, which opened in summer 2017, is held Freehold and comprises over 115,000 SQF (GIA) of space over six stories and 120 luxury bedrooms and suites featuring steam showers, a private members’ club, a rooftop pool and restaurant overlooking the City skyline, wellness centre, live performance room as well as co-working space for members and hotel guests. It is also home to acclaimed chef Marcus Samuelsson’s Red Rooster restaurant and The Green Room cocktail bar, named one of "London’s Best Bars Right Now” by Conde Nast Traveller UK soon after opening in July 2018. Located on the edge of the City of London yet close to the creative heart of Shoreditch, the hotel is a stone’s throw from Amazon’s new UK HQ at Principal Place.

The purchase follows Reuben Brothers’ acquisition earlier this month of 47, 48, & 49-50 Poland Street in Soho.  The site benefits from planning consent by Westminster for redevelopment into a hotel with restaurant and bar space consisting of over 74,000 sq ft GIA over two basement levels, ground and six upper floors.   The transaction is the latest in a raft of property purchases this year which has included the grade II-listed Burlington Arcade on Piccadilly and 69-70 Pall Mall.

Reuben Brothers also own a portfolio of hotels across the UK, including the Lingfield Park Marriott Hotel & Country Club with its 18-hole golf course, and is scheduled to open a 154-room Hilton Garden Inn with hospitality suite for around 400 guests at Doncaster Racecourse later this year.  Reuben Brothers remain the largest shareholder in Belmond, the NYSE listed global luxury hotel group.

Michael Achenbaum commented “The decision to sell the freehold was prompted by several unsolicited approaches. However, our long term operating lease demonstrates our commitment to this exciting business which has received critical acclaim.  We are delighted to be aligning with the Reuben Brothers who are experienced long-term investors and incredibly supportive of the diverse social elements of The Curtain. The sale of the freehold will act as a catalyst for us to develop sister properties in different international locations.”

Patrick Brennan of FairValue Capital advised the buyer and Jonathan Hubbard of Cushman & Wakefield represented the seller in the transaction.

TAMPA BAY, FL (August 27, 2018) – When the idea to build Innisbrook, now a Salamander Resort, was conceived, the concept was both exciting and disruptive: a luxurious Florida golf resort with multiple courses and condominium-style accommodations. After it opened in 1970, the Tampa Bay area property quickly vaulted into the echelons of the country’s finest golf resorts, and has remained there ever since thanks to the addition of many more amenities, the staging of a PGA TOUR event for the past 29 years, and an owner dedicated to quality and service. Its popularity has never been greater.

Now, as preparations to celebrate its 50th anniversary begin, the resort today announced it will completely remodel the interiors of all of its spacious guest accommodations by the end of 2018. In addition, the resort will complete renovation work on its South Course this fall.  These enhancements follow many other improvements made by Innisbrook Owner Sheila Johnson since she purchased the property and Salamander Hotels & Resorts, the company Johnson founded, began managing it. 

“Our suites have long been favorites of golfers, families, and conference groups. The transformation of our guest experience will provide fresher, more attractive and consistent accommodations,” says Innisbrook Managing Director Mike Williams. “We are excited to further improve the quality of each and every stay, while the renovation of the South Course’s greens will give golfers another firm and consistent surface on which to play.”

The accommodation remodeling program will upgrade the resort’s executive-, one- and two-bedroom condo-style suites to feature an appealing and modern look. Each unit will be completely refreshed to receive all new furniture, furnishings, flooring, stainless-steel appliances, quartz counters, cabinets, lighting, draperies and other decor. 

The celebrated golf resort’s suites are located in low-rise lodge buildings, which were designed to blend into the property’s 900 wooded acres through the use of a “back-to-nature” style of architecture. The buildings feature steeply sloped, Mansard-style rooflines that deliberately sit below the treetops to offer a sense of seclusion for the guest. The remodeling work will begin in September and is expected to conclude before the end of 2018. Amenities and public spaces will not be affected, and therefore guest impact during this timeframe will be minimal. 

Innisbrook’s popular South Course, one of four championship layouts at the resort, is nearing the end of a five-month renovation and will re-open this fall. All the greens have been planted with TifEagle Bermuda Grass – the same surface used at the resort’s celebrated Copperhead Course, which hosts the PGA TOUR’s Valspar Championship every March. In addition to the replacement of the greens, the project also includes the expansion of the greens to their original size, and re-sodding and improvement of all bunker edging. 

The suite makeovers and South Course restoration are just the latest in a series of improvements Salamander Hotels & Resorts have made at Innisbrook. Other enhancements include:

·      Restoration of the famed Copperhead Golf Course

·      Renovations to the Island Golf Course

·      Expansion of the Osprey Clubhouse

·      Addition of the Market Salamander Grille & Bar

·      Opening of the Salamander Spa and Fitness Center

·      Refurbishing of its 65,000 square feet of Conference Space 

·      Revamping of the Loch Ness Pool Complex

·      Installation of new greens on the North Golf Course

Atlanta, GA – August 27, 2018 – Hotel Equities (HE) just announced their selection as the operator of the new-build Aloft hotel located at 13111 Highland Park Blvd. in Oklahoma City, OK. This new addition to HE’s lifestyle division of hotels is owned by Highland Hospitality, LLC. An expected completion date is scheduled for Q1 2019.

“We are proud to partner with this ownership group to open the Aloft hotel in Oklahoma’s capital city”, said Joe Reardon, HE’s SVP of Business Development & Marketing. “Our regional team will tap into their experience and knowledge of the market to ensure the hotel is fully ramped quickly upon opening and becomes a strong community partner. Hotel owners wanting to add premium-branded hotels to their portfolio see the value of establishing a partnership with a reputable firm [like HE] because we have the ability to quickly deploy a team of experts in operations, sales and revenue management and human talent deployment in order to maximize efficiencies and performance across the board.”

Hotel Equities currently has 100+ hotels throughout the U.S. and Canada with 35% of its portfolio consisting of boutique and lifestyle properties. “Hotel Equities was highly recommended to us as leaders in this space. Their reputation in the industry gives us complete confidence in their ability to operate our asset with excellence,” said DJ Patel, Owner/Partner with Highland Hospitality, LLC.

Aloft is the next generation of hotel, using technology and design to enhance experiences and move at the pace of their guests. The hotel will include the Re:mix lounge and pool table, along with loft-like guestrooms. Catch live acoustic performances, mix & mingle, and sip on crafted signature cocktails at the W XYZ® bar and Re:fuel cafe. The uniquely-designed hotel will complement the modern metropolis, offering guests an energetic, intuitive and affordable option when visiting the city.

Today, the Illinois Hotel & Lodging Association (IHLA) announced the appointment of Michael Jacobson as incoming President and Chief Executive Officer.

Mr. Jacobson, who most recently served as the Senior Director of Industry Relations and Political Engagement of the U.S. Travel Association (USTA), joins the IHLA effective October 1, 2018. He will replace long admired industry veteran Marc Gordon, who announced his December 2018 retirement earlier this year after a successful, 21-year tenure as the association’s President and CEO.

“This has been an exhaustive search, and we are thrilled with the outcome,” said Tom Robertson, IHLA Chairman and General Manager of Chicago Marriott Downtown Magnificent Mile. “Michael brings experience, innovation and unmatched enthusiasm to this role. We look forward to his transition and to working with him to expand upon the great work that the IHLA has accomplished for the industry.”

With USTA since 2010, Jacobson has contributed to a dynamic organization made up of 1,200 member organizations, 65 employees and $34M in revenues. Beginning as a Coordinator, then Manager, overseeing USTA’s political action committee (PAC) and grassroots advocacy, he quickly rose to Director of Industry Relations and Political Engagement, and then Senior Director. He has built fundamental relationships both locally and nationally with elected officials and senior-level leaders in the travel industry. In addition to his business development and member retention responsibilities, he has also led the charge in political engagement activities – including grassroots advocacy, state-based campaigns and PAC fundraising. His expertise led to numerous speaking engagements for USTA, where he has shared industry insights at travel industry conferences and state-level lobby days. One of USTA’s most successful initiatives, Mr. Jacobson also spearheaded “Travel Talks,” a site visit program connecting members of Congress with local travel leaders.

“I am honored to join the IHLA team,” said Jacobson. “As an Illinois native, I am excited to combine my love for the state with my dedication to the hotel industry. This is a crucial time for hotels and lodging statewide, and I look forward to building upon IHLA’s commitment to legislative advocacy, education and member engagement. As one of the state’s key economic drivers, I am thrilled to represent the 281,000 Illinoisans whose livelihoods depend on the hospitality industry.”

“As Michael begins a new chapter leading IHLA, I couldn’t be prouder or more pleased for his new opportunity,” said Roger Dow, president and CEO of the U.S. Travel Association. “I’ve been a witness to Michael’s outstanding contributions at U.S. Travel, the value he’s created for our members and the role he’s played as a travel advocate – all aspects that will benefit IHLA in its critical work ahead. We offer him our full support and wish him much success.”

Jacobson holds a BA in Political Science from Seton Hall University, and remains active in the alumni community. An advocate for the American Cancer Society, he sits on the Global Relay For Life Leadership Team and founded Seton Hall University’s annual effort. Global Relay For Life enables cancer leagues around the world to increase their visibility and generate cancer awareness, outreach, and income while building survivorship, volunteerism, and advocacy efforts in their communities. Jacobson also serves as a Trustee on the Illinois Township District 214 Education Foundation Board of Trustees.

A native of Prospect Heights, Illinois, Jacobson resides in Chicago with his wife Sarah and newborn daughter, Madelyn.

WATERFORD, CT (August 27, 2018) – Kristen Pikula has been named General Manager of the Sheraton Hartford Hotel at Bradley Airport in Windsor Locks, CT. As General Manager, Pikula is responsible for all aspects of the hotel’s operations. The 237-room full-service hotel is the only hotel located within the Bradley International Airport complex. The hotel’s asset manager is Konover Hotel Corporation and the operations manager is Waterford Hotel Group, both national hotel companies.

Pikula has more than 10 years of hotel management experience with Waterford Hotel Group. She started her management career with the company as Director of Sales at the Residence Inn by Marriott in Southington, CT where she was appointed General Manager shortly thereafter. Pikula then became the General Manager of the Courtyard by Marriott in Cromwell, CT where she was selected as the Waterford Hotel Group General Manager of the Year for 2016. She most recently was the Director of Operations at the Marriott Hartford Downtown in Hartford, CT.

“Kristen has been with the company for years and has shown great leadership and dedication,” commented Michael Heaton, President at Waterford Hotel Group. “She is most deserving of this promotion and we wish her great success in her new role with the Sheraton Hartford team,” he added.

Dallas, TX (August 28, 2018) - Hilton Anatole has appointed one of Hilton’s most valued leaders, Robert Watson, to the position of general manager effective August 27^th. Watson comes to Dallas following an award-winning tenure as general manager of Hilton Austin. In his new role, Watson will be responsible for managing the day-to-day operations of the iconic 1,606-room hotel located adjacent to Dallas’s Design District.   

“As an esteemed Hilton team member for more than 30 years and a recognized hospitality leader within the state of Texas, Robert’s experience will undoubtedly bring the revered Hilton Anatole to even greater heights,” said Tom Loughlin, area vice president, operations, Hilton. “Robert is known for inspiring a culture centered on care, value, respect and giving back to the community. We know the Hilton Anatole team will flourish under his leadership.”  

Watson’s extensive experience in hospitality management comes from his myriad of previous general manager roles within Hilton. During his five-years at Hilton Austin, he received the 2015 Hilton Leadership Excellence Award, was named the 2017 Hilton Leader of the Year and led the hotel to earning the coveted 2017 Connie Award for Hilton Hotels & Resorts. Prior to joining Hilton Austin, Watson served as general manager of the Hilton Omaha, Nebraska’s largest hotel, where he oversaw the hotel’s extensive transformation. Before his role in Nebraska, he held similar positions in his hometown of Tulsa, Oklahoma, as well as Dallas, Texas.   

Watson is currently serving as Chairman and Board Member of the Austin Texas Hotel Lodging Association and has consistently been recognized for his civic leadership and active membership in many local and national hospitality organizations over the last three decades. Watson is a graduate of Oklahoma State University where he majored in Hotel and Restaurant Management.  

Situated on a 45-acre campus, Hilton Anatole offers some of the most noteworthy leisure offerings and meetings capabilities in the country. As a unique urban hotel, amenities include one of the largest hotel art collections in the world, a three-acre pool facility and an 80,000-square-foot fitness club and spa. With eight restaurants and bars, guests favor SĒR Steak + Spirits perched on the 27^th floor overlooking downtown Dallas through floor-to-ceiling windows. 

By Tucker Johnson

When the first wellness-inspired ‘EVEN Hotel’ by IHG opened in 2014 I remember thinking, “It's not for me but there must be a bunch of people that are looking for something like this.” In retrospect, I guess my assessment wasn’t too far off as four years later they have only nine hotels open and 14 in the pipeline. These growth numbers seem especially weak when compared to ‘avid’, IHG’s answer to Millennial-focused brands Tru (Hilton) and Moxy (Marriott). The ‘avid’ brand was announced in 2017, and now has one hotel open and 126 hotels in the pipeline.

I often read about new wellness-inspired hotels and amenities and all I can think is: “Why?”  According to the CDC, “nearly 80 percent of adult Americans do not get the recommended amounts of exercise each week.” I guess my questions is: “What about the people that don’t care about wellness?” The data is clear that people don’t like exercising; why focus on such a small segment of the population that is into wellness?

Not only are Americans generally not interested in exercising, they seem to be comfortable increasing their calories, especially when it comes to higher calorie beers. The Brewer’s Association notes, “Overall U.S. beer volume sales were down 1% in 2017, whereas craft brewer sales continued to grow at a rate of 5% by volume, reaching 12.7% of the U.S. beer market by volume. Craft production grew the most for microbreweries.”

With the low interest in exercise and the high interest in microbrews, maybe the brands have a market for their next segmented property.  Out of all the new hotels that I discuss with my friends and family, the one that really excites them is the Stone Brewery Hotel slated to open outside of San Diego. I also read about the BrewDogs’ DogHouse Hotel in Ohio that has beer taps in the guest rooms and offers a beer-paired breakfast.  Considering all the buzz the DogHouse Hotel has received online, I would say that people are already sold on this new property.

 Yet this hotel concept doesn’t seem to reflect what the major brands are putting out.  I think the brands should look to create an “unwellness” hotel brand instead of continuing to push their “wellness” brands. Each one could be attached to a microbrewery.  Features might include:

-No fitness center

-Movie theater/media room with reclining seats

-Hi-calorie breakfast foods

-Bar-style trivia nights

-Oversized towels to fit around any waist

These offerings could give the major hotel companies the opportunity to create some unique products and offerings, yet still have each property connected to an overall “unwellness” brand.  Additionally, they could partner with established microbreweries and immediately tap into their existing customer base.

As consumers look for more experiences as they travel, this could be the perfect time to give the people what they want: no exercise and full flavored beer.

Hong Kong. 28 August 2018 — ONYX Hospitality Group, one of the region’s leading hotel management companies, today announced the appointment of Phan Ing Pai as Vice President, Operations – Greater China. Based in Shanghai, Phan will report to Gina Wo, Senior Vice President & Head of Greater China.

Phan will be responsible for leading the operations team in the Greater China region, providing support to all operational properties across the region and ensuring all properties are in line with the Group’s established operational standards. Phan will also work closely with the sales & marketing team by offering commercial support to the property teams, ensuring optimum hotel performance and business returns.

This appointment is part of the group’s effort to enhance its capabilities and support in Greater China, one of the fastest-growing geographical regions and a key market for ONYX’s global development strategy. Over the past nine months, ONYX has secured a number of significant China development wins, including a China-wide strategic partnership with Sincere Holdings Group. Amari, the company’s flagship hotel brand, also launched its first hotel in China in 2017 with the opening of Amari Yangshuo. Earlier this year, ONYX announced the creation of a new Greater China regional base in Shanghai, laying a solid foundation for the strategic development in the horizon.

Phan brings to ONYX over 20 years of experience in the hospitality and serviced apartments industries and a deep understanding of the Chinese market. He spent the past 14 years in China, where he held senior level positions with Swiss-Belhotel International and Frasers Hospitality. Prior to joining ONYX, Phan was Area General Manager, North China for Frasers Hospitality, leading the set-up of the group’s inaugural China offices in Shanghai and Beijing, as well as overseeing the overall operations in China across three core brands.

“I am very excited to be joining a fast-growing group of such scale and firm commitment towards the China market,” said Phan. “China is a fertile ground for opportunities which could drive 30-45% of our growth in the long run. Taking the lead in operations for ONYX in the Greater China region is a challenging yet wonderful opportunity. I am looking forward to contributing my experience and knowledge and to working closely our properties across Greater China to deliver a high standard guest experience, to enhance our operational capabilities, and ultimately, to drive our business success in the region.”

ONYX Hospitality Group has a growing portfolio of 49 operating properties across three core brands in eight countries, and a robust development pipeline of close to 30 new properties in markets such as China, Vietnam, Malaysia and Australia. It has set a target of having 99 hotels by 2024 as part of its journey towards being the best medium-sized hospitality player in the Asia Pacific region.

(NEW YORK, NY – August 2018) Located in New York City’s SoHo neighborhood, The Dominick continues to surpass expectations with personalized service that speaks to intuitive, intimate hospitality. Following its recent rebranding, the property is pleased to announce the newest appointment of Marianna Di Franca as the Director of Catering & Conference Services.

In her new position, Di Franca will provide client consultation for on-site events by overseeing banquet orders, coordinating special requests with the culinary team and soliciting new business endeavors. Fluent in both Portuguese and Spanish with a penchant for launching sales strategies that bolster revenue, Di Franca holds over ten years of experience in the events realm. Prior to her role at The Dominick, she served as the Director of Event Sales at InterContinental Miami where she managed 100,000 square feet of event space. Di Franca’s past expertise also includes residencies at Andaz in New York, Warwick Hotels & Resorts, Denihan Hospitality Group, The Inn at Rancho Santa Fe and select Marriott International properties.

“Marianna is a welcome addition to our ever-expanding team at The Dominick, and we look forward to her promoting the incredible event spaces we are privileged to have,” said Dant Hirsch, General Manager of the hotel. “With over a decade in the sales industry coupled with her multilingual abilities, we’re confident Marianna will be a valued asset in attracting new business in the coming months and years.”

The Dominick features more than 12,000 square feet of customizable indoor and outdoor event spaces that are ideal venues for gatherings of all sizes. Wrapped in floor-to-ceiling windows that provide natural light, The Dominick offers flexible options for event spaces in SoHo. The entire third floor of the hotel holds five spaces including the 3,894-square-foot SoHo Ballroom, the only luxury space of its kind downtown as well as the 1,600-square-foot SoHi space that offers 15-foot floor-to-ceiling windows with unparalleled views of downtown Manhattan and sunset over the Hudson River. Innovative catering menus crafted by a Michelin-starred chef titillate the taste buds. Of course, there is also the latest audio-visual technology available, including high-speed internet, projection screens and a special events team that provides impeccable service. 

For reservations and more information, visit www.TheDominick.com or call 855-695-6632.