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	<title>Passions Of A Zealot &#187; wyndham hotels</title>
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	<link>http://www.passionsofazealot.com</link>
	<description>by Andrew Calvo</description>
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		<title>W Hotels Gets Its Own Fashion Director and Music Curator</title>
		<link>http://www.passionsofazealot.com/2009/06/30/w-hotels-gets-its-own-fashion-director-and-music-curator/</link>
		<comments>http://www.passionsofazealot.com/2009/06/30/w-hotels-gets-its-own-fashion-director-and-music-curator/#comments</comments>
		<pubDate>Tue, 30 Jun 2009 21:30:19 +0000</pubDate>
		<dc:creator>Andrew Calvo</dc:creator>
				<category><![CDATA[branding]]></category>
		<category><![CDATA[choice hotels]]></category>
		<category><![CDATA[commercial real estate]]></category>
		<category><![CDATA[denizen]]></category>
		<category><![CDATA[design]]></category>
		<category><![CDATA[edition hotels]]></category>
		<category><![CDATA[hilton]]></category>
		<category><![CDATA[Hotel Development]]></category>
		<category><![CDATA[Hotels]]></category>
		<category><![CDATA[hyatt]]></category>
		<category><![CDATA[ian schrager]]></category>
		<category><![CDATA[marketing]]></category>
		<category><![CDATA[marriott]]></category>
		<category><![CDATA[ross klein]]></category>
		<category><![CDATA[Starwood Hotels]]></category>
		<category><![CDATA[w hotels]]></category>
		<category><![CDATA[wyndham hotels]]></category>
		<category><![CDATA[eva ziegler]]></category>
		<category><![CDATA[fashion director]]></category>
		<category><![CDATA[hilton hotels]]></category>
		<category><![CDATA[lemeridien]]></category>
		<category><![CDATA[marriott edition]]></category>
		<category><![CDATA[music curator]]></category>
		<category><![CDATA[starwood]]></category>

		<guid isPermaLink="false">http://www.passionsofazealot.com/?p=730</guid>
		<description><![CDATA[W Hotels is about to announce two new positions: Fashion Director and Music Curator. Two positions that you'd never think to find in a international boutique hotel brand.]]></description>
			<content:encoded><![CDATA[<p>In what is probably the first for an international hotel chain &#8211; the W Hotels brand will be getting a <a href="http://www.hotelsmag.com/blog/1670000567/post/1640046164.html" target="_blank">Fashion Director and a Music Curator</a>. If anyone had any doubts about W&#8217;s continued success or ability to lead the way in creating new ideas for the chain since Ross Klein left &#8211; this should put those fears to rest.</p>
<p>Not much has been said about these new positions &#8211; the information was gleaned from an interview that <a href="http://www.hotelsmag.com/blogger/3316.html" target="_blank">Derek Gale</a>, a writer from <a href="http://www.hotelsmag.com" target="_blank">Hotels Magazine</a> had with W&#8217;s Vice President of Brand Management.</p>
<blockquote><p>W&#8217;s marketing focus will move even further toward events, with more fashion programming (like W&#8217;s backstage lounge at New York&#8217;s Fashion Week) and music release parties in cities across the globe.</p></blockquote>
<p>The fact that they are willing to hire someone to be a music curator and a fashion director &#8211; for a hotel brand &#8211; speaks volumes about the direction Starwood sees W going in. It&#8217;s similar to what Starwood did with the LeMeridien brand when they started LM100, and its no coincidence that W&#8217;s new boss is Eva Ziegler, whose previous position was brand director at LeMeridien.</p>
<p>Alot of people may ridicule the W brand because of their attempt to be trendy and as well as their &#8220;commercialization&#8221; of the boutique hotel concept, but no matter what anyone says &#8211; they are very successful at it. Unlike some hotel brands that attempt to open hundreds of hotels a year, W sticks to opening just enough hotels that its still able to capture the feeling and the essence of W.</p>
<p>Some boutique hotel companies may do the boutique feel a little better &#8211; Thompson Hotels is the first that comes to mind, but their individual hotels are not part of one name-brand. Indigo Hotels is another brand that claims it&#8217;s a boutique and tries to give the boutique look and feel &#8211; but the segment the brand is in, and the acceptable standards that the hotel has would never reflect a true boutique brand. Not to say that Hotel Indigo is not a quality brand &#8211; it is, but it doesnt have the amenities that W would have.</p>
<p>For the majors, <strong>Starwood</strong>, <strong>Marriott</strong>, <strong>Hilton</strong>, <strong>Choice</strong>, <strong>Intercontinental</strong>, <strong>Wyndham </strong>- Starwood is still the only hotel company that has a real boutique hotel product in the market today. Hilton&#8217;s <strong>Denizen </strong>seems DOA, Marriott&#8217;s <strong>Edition </strong>is taking so long to get off the ground I&#8217;m wondering if it&#8217;s going through some major modifications, Wyndham &amp; Choice don&#8217;t even look to be interested in a high-end brand, and Intercontinental has Hotel Indigo.</p>
<p>It&#8217;s going to take a lot of catching up to do for any new or existing hotel brand to eclipse the W as hotel brand that&#8217;s easy to replicate (relatively speaking of course) and has so many tie ins and marketing kicks that one-up W in the marketplace. The experience and the knowledge that Starwood has on W is tremendous &#8211; and a perfect example of that is the value placed on it in the pending Starwood/Hilton lawsuit.</p>
<p><a href="mailto:andrew@alconic-inc.com">andrew@alconic-inc.com</a></p>
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		<title>Hawthorne &amp; Microtel Integration into Wyndham</title>
		<link>http://www.passionsofazealot.com/2008/11/05/hawthorne-microtel-integration-into-wyndham/</link>
		<comments>http://www.passionsofazealot.com/2008/11/05/hawthorne-microtel-integration-into-wyndham/#comments</comments>
		<pubDate>Wed, 05 Nov 2008 16:31:24 +0000</pubDate>
		<dc:creator>Andrew Calvo</dc:creator>
				<category><![CDATA[Hotel Development]]></category>
		<category><![CDATA[Hotels]]></category>
		<category><![CDATA[hyatt]]></category>
		<category><![CDATA[marketing]]></category>
		<category><![CDATA[wyndham hotels]]></category>

		<guid isPermaLink="false">http://www.passionsofazealot.com/?p=166</guid>
		<description><![CDATA[The integration of Microtel &#038; Hawthorne Suites into Wyndham's brand umbrella is going quite well thank you very much. It's becoming more apparent as to how beneficial the purchase has been to Wyndham.]]></description>
			<content:encoded><![CDATA[<p>I just read an article in <strong><a href="http://www.hotelmotel.com/" target="_blank">Hotel &amp; Motel Management</a> </strong>which talked about the smooth integration so far between <strong>Wyndham</strong> &amp; the <strong>Hawthorne</strong> <strong>Suites</strong> and <strong>Microtel </strong>brands. I&#8217;m not going to bore you with the small details of the articles &#8211; but there are a few things that I thought were worth mentioning.</p>
<p>Wyndham is going to be repositioning the Hawthorne Suites brand into the &#8220;upper tier of the extended stay&#8221; hotel segment &#8211; putting it more on par with <strong>IHG&#8217;s Staybridge Suites</strong> and <strong>Hilton&#8217;s Homewood Suites</strong>, which will rid the brand of it&#8217;s image of a more economy extended stay offering. Its unknown how much of a price difference the rooms will be. They&#8217;ve also planned what seems to be another re-design of the suites (<strong>Global Hyatt</strong> just did that last year) which will help bring the hotels a little more upmarket.</p>
<p>Hawthorne Suites is now fully integrated into Wyndham&#8217;s reservation system &#8211; meaning you can reserve a room at a Hawthorne Suites from <strong>Wyndham Reward&#8217;s</strong> <a href="http://www.wyndhamrewards.com" target="_blank">website</a> or you can reserve a room from Wyndham&#8217;s other brands from Hawthorne Suites&#8217; <a href="http://www.hawthornesuites.com" target="_blank">website</a>. Hawthorne Suites now also accepts rewards nights from Wyndham Rewards, and guests can earn Wyndham Rewards by staying at a Hawthorne Suites.</p>
<p>With the Microtel brand its a little different though. Currently Microtel isn&#8217;t fully integrated into Wyndham&#8217;s reservation system &#8211; at least not on the internet, although its very possible (and probable) that they are using the Wyndham system within the hotels to cut down on training and IT costs for both franchises and the brand owners.</p>
<p>Microtel is not joining Wyndham Rewards though &#8211; but it is still keeping its &#8220;MicroPass Rewards&#8221; program. MicroPass is probably one of the simplest hotel rewards programs on the market today &#8211; simply stay 9 nights, get the 10th night free. The reason for not integrating into the Wyndham Rewards program is due to costs &#8211; it would be too cost prohibitive for Microtel franchise owners to be required to meet the demands needed for the program. Microtel could be bad news for the <strong>Motel 6</strong>brand, which would be their biggest competitor. All Microtel&#8217;s are new builds, and with the the brands recent redesign rooms or suites include flat screen tvs, and granite counter tops in the kitchens &#8211; two items that Motel 6 is just starting to roll out.</p>
<p>Motel 6&#8242;s biggest liability is the condition of their properties &#8211; a lot of properties are are conversions, have outside corridors, and the overall upkeep of the buildings leaves a lot to be desired. In this case Microtel being an all-new build brand easily adds value compared to Motel 6, while nightly rates are very close.</p>
<p>As I expected &#8211; the integration has gone very smoothly. Being part of Wyndham which became the worlds largest hotel franchiser after this purchase will enable Hawthorne &amp; Microtel to grow in ways they were not able to before. My only concern is if Microtel will join the Wyndham reservation system &#8211; that will allow many more guests to be exposed to the brand while searching for availabilities through Wyndham&#8217;s other properties, or if a Microtel is not in a specific location &#8211; maybe a Super 8 or Days Inn is.</p>
<p><a href="mailto:andrew@alconic-inc.com">andrew@alconic-inc.com</a></p>
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		<title>Wyndham&#8217;s Purchase of USFS/Hawthorne Suites/Microtel Complete</title>
		<link>http://www.passionsofazealot.com/2008/07/22/wyndhams-purchase-of-usfshawthorne-suitesmicrotel-complete/</link>
		<comments>http://www.passionsofazealot.com/2008/07/22/wyndhams-purchase-of-usfshawthorne-suitesmicrotel-complete/#comments</comments>
		<pubDate>Tue, 22 Jul 2008 23:32:21 +0000</pubDate>
		<dc:creator>Andrew Calvo</dc:creator>
				<category><![CDATA[branding]]></category>
		<category><![CDATA[Hotel Development]]></category>
		<category><![CDATA[Hotels]]></category>
		<category><![CDATA[marketing]]></category>
		<category><![CDATA[wyndham hotels]]></category>

		<guid isPermaLink="false">http://passionsofazealot.wordpress.com/?p=372</guid>
		<description><![CDATA[I think its worth mentioning here since I&#8217;ve written about it numerous times before that Wyndham&#8217;s purchase of USFS &#38; the Hawthorne Suites and Microtel brands is complete. The purchase price came in at $131 million, really its an absolute steal (lower than the $150 million that was first rumored) - very much on par with Starwood&#8217;s [...]]]></description>
			<content:encoded><![CDATA[<p>I think its worth mentioning here since I&#8217;ve written about it numerous times before that <strong>Wyndham&#8217;s</strong> purchase of <strong>USFS</strong> &amp; the <strong>Hawthorne Suites</strong> and <strong>Microtel</strong> brands is complete. The purchase price came in at $131 million, really its an absolute steal (lower than the $150 million that was first rumored) - very much on par with Starwood&#8217;s purchase of LeMeridien a few years back. If you recall Starwood purchased the LeMeridien brand and management for something in the mid $300 million dollar range.</p>
<p>Wyndham purchased two brands which are thought very highly of in the economy segment, after they both have just put out new prototypes and a more unified branding message. Just like LeMeridien, there was no real estate involved.</p>
<p>A few months back I had spoken to someone at Wyndham who said they are very excited about the transaction &#8211; but are unable to do any planning or work integrating the new brands until the deal is closed. Now that the deal is closed &#8211; a few issues have to be taken care of, such as,</p>
<p>-What happens to the Membership Program integration that Hawthorne Suites had with <strong>Hyatt Gold Passport</strong>? Originally it was expected that Hyatt Gold Passport use would still be allowed at Hawthorne until the end of 2008. </p>
<p>-What will happen to Microtel&#8217;s <strong><a href="http://www.micropass.com" target="_blank">MicroPass</a></strong>? The MicroPass was one of the simplest rewards programs in the industry &#8211; simply stay 9 nights and your 10th is free.</p>
<p>Wyndham will definitely integrate their current rewards program (<strong>Wyndham Rewards</strong>) but I&#8217;m sure existing Hawthorne/Microtel guests would like to at least be able to use up the rewards they&#8217;ve accumulated prior to the merger.</p>
<p>Lastly, the integration of the systems &#8211; this is probably the hardest part of any merger, getting all hotel registration systems to work with Wyndham&#8217;s existing system, while simultaneously keeping the existing future registrations.</p>
<p>Most likely we wont see a full integration (Website, phone numbers, rewards programs, registration) until mid to late 2009, but hopefully that wont affect the current growth of the two brands.</p>
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		<title>Wyndham buys USFS (Microtel/Hawthorne Suites)</title>
		<link>http://www.passionsofazealot.com/2008/06/03/wyndham-buys-usfs-microtelhawthorne-suites/</link>
		<comments>http://www.passionsofazealot.com/2008/06/03/wyndham-buys-usfs-microtelhawthorne-suites/#comments</comments>
		<pubDate>Tue, 03 Jun 2008 18:31:43 +0000</pubDate>
		<dc:creator>Andrew Calvo</dc:creator>
				<category><![CDATA[Hotel Development]]></category>
		<category><![CDATA[Hotels]]></category>
		<category><![CDATA[hyatt]]></category>
		<category><![CDATA[wyndham hotels]]></category>

		<guid isPermaLink="false">http://passionsofazealot.wordpress.com/?p=289</guid>
		<description><![CDATA[I&#8217;m not at all surprised by this announcement, but Wyndham Worldwide announced yesterday that they have purchased US Franchise Systems, which operates the Microtel and Hawthorne Suites brands from Global Hyatt. This is a perfect fit for Wyndham, and except for the possibility that private equity firms may jump in, Wyndham was always perceived as [...]]]></description>
			<content:encoded><![CDATA[<p>I&#8217;m not at <a href="http://passionsofazealot.wordpress.com/2008/02/20/hyatt-selling-microtel-hawthorne-suites/" target="_blank">all surprised</a> by this announcement, but <strong>Wyndham Worldwide</strong> announced yesterday that they have purchased <strong>US Franchise Systems</strong>, which operates the <strong>Microtel</strong> and <strong>Hawthorne Suites</strong> brands from <strong>Global Hyatt</strong>.</p>
<p>This is a perfect fit for Wyndham, and except for the possibility that private equity firms may jump in, Wyndham was always perceived as the front runner for this transaction. Wyndham now has 12 hotel brands, and primarily in the economy, mid-market segment, and is clearly a leader.</p>
<p>It was not publicized as to how much Wyndham paid for USFS, but they are getting a great company, while it may not be up to par with luxury hotel brands, MicroTel and Hawthorne Suites are almost all completely new builds, thought of very highly in the developer community and just underwent a redesign of the rooms. Wyndham will easily ramp up development for those two brands by integrating it into their existing Franchise Sales department who has plenty of experience with smaller, economy/mid-market hotel brands.</p>
<p>Global Hyatt was always holding USFS back, not purposly, but mainly because they were focusing on their higher-end brands, they integrated Hawthorne Suites into the<strong> Hyatt Gold Passport </strong>rewards program, but didn&#8217;t even touch MicroTel, now with its integration into Wyndham, I see it MicroTel &amp; Hawthorne quickly being integrated into the <strong>TripRewards </strong>network which will do nothing but help bring the promotion of the two brands to the forefront of the TripRewards users.</p>
<p>For those who are wondering &#8211; whats going to happen to their Hawthornes Gold Passport rewards, last I heard Global Hyatt said that you would be able to redeem those points at Hawthorne Suites at least until the end of this year. Obviously, if you gained all of your rewards through Hawthorne Suites &#8211; you&#8217;ll be able to use them at any Hyatt according to the redemption rules, you wouldn&#8217;t be required to only use them at Hawthrone Suites after the transaction closes. MicroTel had a smaller rewards program only for the MicroTel brand, that was never integrated with Hawthorne or Hyatt which that will most likely be completely rolled into the TripRewards program.</p>
<p><a href="mailto:andrew@alconic-inc.com">andrew@alconic-inc.com</a></p>
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		<title>National Harbor, Maryland</title>
		<link>http://www.passionsofazealot.com/2008/01/30/national-harbor-maryland/</link>
		<comments>http://www.passionsofazealot.com/2008/01/30/national-harbor-maryland/#comments</comments>
		<pubDate>Wed, 30 Jan 2008 05:28:43 +0000</pubDate>
		<dc:creator>Andrew Calvo</dc:creator>
				<category><![CDATA[hilton]]></category>
		<category><![CDATA[Hotel Development]]></category>
		<category><![CDATA[Hotels]]></category>
		<category><![CDATA[marriott]]></category>
		<category><![CDATA[national harbor]]></category>
		<category><![CDATA[real estate]]></category>
		<category><![CDATA[Starwood Hotels]]></category>
		<category><![CDATA[wyndham hotels]]></category>

		<guid isPermaLink="false">http://passionsofazealot.wordpress.com/?p=100</guid>
		<description><![CDATA[A few years back I remember hearing about the National Harbor development &#8211; a development which will include retail, office, residential, hotels, and convention space &#8211; an entire mixed-use development which is going to be built on the banks of the Potomac, steps from Washington DC. I don&#8217;t know if it is just forgetfulness on [...]]]></description>
			<content:encoded><![CDATA[<p>A few years back I remember hearing about the National Harbor development &#8211; a development which will include retail, office, residential, hotels, and convention space &#8211; an entire mixed-use development which is going to be built on the banks of the Potomac, steps from Washington DC. I don&#8217;t know if it is just forgetfulness on my part or what &#8211; but up until a few days ago, I thought the whole development was being put together by Gaylord Entertainment &#8211; I mean, in a way it would make sense.. Gaylord&#8217;s portion is one of the largest single contributors to the project, and if you look at all the other Gaylord Entertainment projects through out America &#8211; they don&#8217;t build a small convention hotel and convention space, its almost a destination unto itself; thus I thought it only logical that Gaylord was behind the entire National Harbor development. Its actually a company called the Peterson Companies that is behind the National Harbor project.</p>
<p align="center"><a href="http://passionsofazealot.files.wordpress.com/2008/01/nationalharbor.jpg" target="_blank"><img src="http://passionsofazealot.files.wordpress.com/2008/01/nationalharbor-thumb.jpg" style="border:0 none;" alt="nationalharbor" border="0" height="126" width="420" /></a><br />
National Harbor</p>
<p>Last week I wrote about Starwood Hotel&#8217;s development pipeline extending with two hotels within the National Harbor development &#8211; an aloft, and a Westin. The Westin which should be opening in a few months with the aloft opening in early 2009. In the article I was surprised that Gaylord would allow another hotel brand into their development &#8211; but I was corrected earlier today by a representative from National Harbor&#8217;s PR team. He pointed me to National Harbor&#8217;s <a href="http://www.nationalharbor.com" target="_blank">website</a>, and I realized that there is more to National Harbor than the Gaylord Convention Center and Hotel. If you have not been to National Harbor&#8217;s website &#8211; take a look &#8211; its very well put together and offers a lot of concrete information on the project, background information, renderings, etc. The renderings are especially interesting because when a project is being developed there is not much information on what the buildings will look like except for a few shots &#8211; but National Harbor&#8217;s site has pictures of every building currently being constructed, floor plans, and what will be in the building. Very useful when trying to get an understanding of what the project is made up of.</p>
<p align="center"><a href="http://passionsofazealot.files.wordpress.com/2008/01/aloftnationalharbor.jpg" target="_blank"><img src="http://passionsofazealot.files.wordpress.com/2008/01/aloftnationalharbor-thumb.jpg" style="border:0 none;" alt="aloftnationalharbor" border="0" height="142" width="260" /></a><br />
Aloft National Harbor</p>
<p align="center"><a href="http://passionsofazealot.files.wordpress.com/2008/01/westinnationalharbor.jpg" target="_blank"><img src="http://passionsofazealot.files.wordpress.com/2008/01/westinnationalharbor-thumb.jpg" style="border:0 none;" alt="westinnationalharbor" border="0" height="142" width="260" /></a><br />
Westin National Harbor</p>
<p align="left">In addition, they have a <a href="http://www.nationalharbor.com/Business/Construction/Progress-Photos2.aspx" target="_blank">progress website</a> that shows the progress (Id assume its updated every month or so) on each one of the buildings that are currently being built in this phase.</p>
<p>National Harbor is a community within itself &#8211; complete with a name &#8220;National Harbor, MD&#8221; and Zip Code (20745) which is being shared with Oxon Hill. National Harbor is being built by the <a href="http://www.petersoncos.com/" target="_blank">Peterson Companies</a>, one of the largest mixed use developers in the Fairfax, VA/Washington DC area, although this is the largest product that they have tackled to date.</p>
<p>National Harbor, when completed, will consist of over 7.3 million square feet of hotel, retail, restaurant, convention center, residential, and office space &#8211; all on undeveloped land &#8211; no eminent domain needed here! In addition to the Gaylord National complex &#8211; the anchor of the development which will contain 2,000 hotel rooms and an 18 story atrium within the convention center space, 6 other hotels will complete the development, Starwood&#8217;s Westin &amp; aloft, a Residence Inn, Hampton Inn, Wyndham Vacation Ownership, and another still unannounced hotel. National Harbor will have 4 piers &#8211; enabling visitors or convention hosts to bring boats directly up to the property &#8211; a huge selling point for the convention sales dept, and it will also contain 2 marinas for typical docking needs.</p>
<p>The purpose of the National Harbor project is mainly to attract businesses &#8211; via the office space and convention center space, as that is what most of the development is going after (at least right now), but with the residential components currently being built and on the drawing board, its also being promoted as an alternative to living just outside the main business centers of the area &#8211; Fairfax, Alexandria, Washington DC, etc.</p>
<p>For those who decide to call National Harbor home, there will be plenty to do &#8211; they are having nightly light shows, and one of the components will be a movie theater.</p>
<p>This project excites me because I love master planned, mixed-use projects. I think there is something to be said for things that are pre-planned, and  designed around a common theme for a common purpose, especially real estate when you are trying to build up a large area very quickly. A lot of people feel that planned communities are a bad idea, that they conjure up an image of standards which have to be met, and the inability to grow or expand outside the community bounds. I think the National Harbor project will succeed because of a number of things in its favor &#8211; it is in a great location, a very important metropolitan area of the United States, it fulfills a niche that hasn&#8217;t been completely filled before (a large conference facility in Washington DC) and it has a great mix of buildings &#8211; office, retail, residential, hotel, entertainment, restaurants, open/park space which will allow a much wider variety of people to utilize its services.</p>
<p>I think it also shows a lot of persistence by the Peterson Companies &#8211; they have owned the property for almost 10 years before they even broke ground (purchased it in 1996) and they were finally able to do what most other people had tried, but never finished. Not only that, but the National Harbor that you see now is only about 1/3 or 1/2 of the entire project &#8211; there is more to be announced at a later date.</p>
<p>I&#8217;ll be keeping an eye on the National Harbor project &#8211; I&#8217;m very interested to see the finished results and the reception it receives within the community.</p>
<p><a href="mailto:andrew@alconic-inc.com">andrew@alconic-inc.com</a></p>
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		<title>2008 In The Hotel Industry</title>
		<link>http://www.passionsofazealot.com/2008/01/04/2008-in-the-hotel-industry/</link>
		<comments>http://www.passionsofazealot.com/2008/01/04/2008-in-the-hotel-industry/#comments</comments>
		<pubDate>Fri, 04 Jan 2008 07:25:50 +0000</pubDate>
		<dc:creator>Andrew Calvo</dc:creator>
				<category><![CDATA[barry sternlicht]]></category>
		<category><![CDATA[commercial real estate]]></category>
		<category><![CDATA[construction]]></category>
		<category><![CDATA[hilton]]></category>
		<category><![CDATA[Hotel Development]]></category>
		<category><![CDATA[Hotels]]></category>
		<category><![CDATA[hyatt]]></category>
		<category><![CDATA[ian schrager]]></category>
		<category><![CDATA[lodgeworks]]></category>
		<category><![CDATA[loews hotels]]></category>
		<category><![CDATA[marriott]]></category>
		<category><![CDATA[resorts]]></category>
		<category><![CDATA[Starwood Capital Group]]></category>
		<category><![CDATA[Starwood Hotels]]></category>
		<category><![CDATA[wyndham hotels]]></category>

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		<description><![CDATA[UPDATED: 1/8/08 &#8211; Updated address for Louvre Hotel Group Development Website 2008 is shaping up to be a very eventful year for a number of reason &#8211; the Presidential elections in November, the war in Iraq, the price of oil, the possibility of a recession due to the sub-prime mortgage industry. 2008 could easily end [...]]]></description>
			<content:encoded><![CDATA[<p>UPDATED: 1/8/08 &#8211; Updated address for Louvre Hotel Group Development Website</p>
<p>2008 is shaping up to be a very eventful year for a number of reason &#8211; the Presidential elections in November, the war in Iraq, the price of oil, the possibility of a recession due to the sub-prime mortgage industry. 2008 could easily end up being a great year where everything ends up going right, or a horrible year where everything ends up going wrong..</p>
<p>I consider myself an optomist &#8211; so I&#8217;m expecting the year to turn out pretty well.<br />
In any case, 2008 is also shaping up to be a defining year for the Hotel Industry &#8211; 2007 saw the launching of a number of hotel brands, and the beginnings of a number of changes to existing brands, and then the questions that&#8217;s probably in the back of everyones mind &#8211; how will the lodging industry be affected by America’s economic turmoil?</p>
<p>One thing that I have been very eager for is the opening of Starwood Hotel &amp; Resort’s aloft and element brands. Their first locations should be opening in Spring ’08, and the remainder of the year could very well see another 20-30 locations open through out America. The aloft and element brands has been eager watched by the industry at large because of the considerable resources that is being put into it, as well as the promotion of the Starwood brand machine. Not only that, but those two concepts &#8211; while not “new” &#8211; do definitely have a twist that other extended stay or select-service hotel brands do not have. Please stay tuned because I&#8217;m also working on another post which will go into further detail about Starwood&#8217;s plans for 2008 and beyond.</p>
<p>2008 will be a test of the Blackstone Group’s purchase of Hilton. Blackstone consistently claims that they have purchased Hilton to grow and expand the brand and it’s sub-brands &#8211; not break them up as they have done in past purchases. Will we see any major changes? Will Hilton enter the boutique hotel field with a new brand? One thing that Blackstone will continue to do (as Hilton started before the purchase was even announced) is expand Hilton’s brands outside of America. Except for the Hilton brand itself, Doubletree, Hilton Garden Inn, Embassy Suites and Hampton Inn have very few locations throughout the world. I think 2008 will see that expansion quickly accelerate. The Waldorf=Astoria Collection should also expand in locations throughout the world. I&#8217;d like to see Blackstone combine their LXR Resorts Brand into the Waldorf=Astoria Collection, and I&#8217;d also like to see LaQuinta join the Hilton umbrella. If Blackstone is as serious as they claim about keeping the Hilton umbrella intact and expanding it, they should do all they can to combine their current assets (like LXR &amp; LaQuinta) into Hilton.</p>
<p>Starwood Capital Group is sure to cause some more commotion in the industry with their three new brands &#8211; 1 Hotels, Crillon &amp; Baccarat. While I don&#8217;t think we will see any openings from those brands this year except for the 1 Hotel in Seattle (everything else is still under construction), 2008 will surely see the official launch of Le Crillon Hotels which was supposed to happen in Mid-October of 07. Besides the expected first location of a Crillon hotel on 57th St in New York City, Starwood Capital will hopefully provide more details on what to expect from the brand. I’m also very interested to see how Starwood Capital’s purchase of Concorde Hotel Group will evolve &#8211; <a href="http://www.concorde-hotels.com/en/" target="_blank">Concorde Hotel Group</a> was part of the <a href="http://www.louvrehotels.com/en/index.aspx" target="_blank">Louvre Hotel Group</a> that was purchased by Starwood Capital in 2006, and with that purchase Starwood Capital became the second largest hotel operator in Europe with over 800 managed, owned or franchised hotels under the <a href="http://www.premiereclasse.com/en/default.aspx" target="_blank">Premiere Classe</a>, <a href="http://www.campanile.com/en/default.aspx" target="_blank">Campanile</a>, <a href="http://www.kyriad.com/en/default.aspx" target="_blank">Kyriad</a> and <a href="http://www.kyriadprestige.com/en/default.aspx" target="_blank">Kyriad Prestige</a> brands (as well as those in the Concord Hotel banner). In recent month’s Starwood has significantly redesigned the <a href="http://www.louvre-developpement.fr/index.php?lang=en" target="_blank">Louve Hotel Group Development website</a>, as well as the individual brand&#8217;s websites &#8211; showing that the three brands in their portfolio are poised for expansion. Prior to Starwood&#8217;s ownership, those brands had pretty embarrassing websites. The European hotel sector is vastly different from that in America &#8211; the majority of hotels are hostels, or rented apartments and the condition and environment of those facilities leave alot to be desired. Starwood has intentions of doubling the number of European locations of the Louve brands over the next few years. I think the lodging environment in Europe will be substantially different in a few years &#8211; and I think Starwood Capital &amp; Barry Sternlicht will once again lead the way. Lastly, I think we’ll see Baccarat’s official announcement of their <a href="http://www.baccaratwatercay.com" target="_blank">Water Cay</a> property, and more announced locations of the 1 Hotel brand in America as well as major cities throughout the world.</p>
<p>A few months back <a href="http://www.modernagent.com/Resources/Editorial.aspx?n=31448" target="_blank">Loews Hotels announced</a> (<a href="http://passionsofazealot.wordpress.com/2007/10/22/loews-hotels-development-plan-picks-up-speed/" target="_blank">and I wrote a post on it</a>) they are giving the brand a significant change &#8211; revamping their website and changing the company from an asset management company to a brand. While it doesn&#8217;t say so exactly, this type of change would only occur if they intended on significantly expanding the Loews brand. 2008 should see some new development deals being announced, perhaps even management of the hotels rather than all company-owned hotels and I even have a feeling that they will create a new brand (probably a select-service brand rather than a full service like the Loews brand already is) or purchase an existing brand to add to their portfolio.</p>
<p>Holiday Inn will undergo a radical transformation of their brand this year &#8211; more so in signage and look rather than anything else. A few months back they announced their plan to put 1 billion dollars in the rebranding of Holiday Inn, Holiday Inn Express and Express by Holiday Inn (can anyone tell me what the difference is between the last two?)</p>
<p>Intercontinental which owns Holiday Inn as well as Crown Plaza, Candlewood Suites, Staybridge Suites and the Hotel Indigo brands is claiming to have the largest hotel pipeline in the world, although their pipeline in America not as large as some other competing brands. Intercontinental&#8217;s Hotel Indigo brand is finally starting to get some legs, and is growing rapidly, I think by the end of 2008 we&#8217;ll see a doubling of their locations and it will become a bit more mainstream. As it is, brand awareness of the Indigo brand is nill, which is a little surprising coming from the largest hotel company in the world.</p>
<p>And how can I forget Marriott? January is supposed to be the launch of the new boutique brand from Marriott and Ian Schrager &#8211; details such as the initial locations, the name of the brand as well as renderings and details about what the hotels will contain should all be released very very shortly. From Schrager’s <a href="http://www.portfolio.com/views/columns/the-world-according-to/2007/11/16/An-Interview-With-Ian-Schrager" target="_blank">interview</a> in Portfolio.com last month, their is plenty of developer interest in the brand, but everyone (including me) still have many questions as to if Marriott and Schrager will be able to pull it off. While, yes, both companies want the venture to succeed, both sides know that it will not be a long term, exclusive relationship. With Marriott staking a lot of its &#8220;coolness&#8221; on how this venture turns out, I think Marriott will not come out on top..</p>
<p>The brands under the Wyndham Worldwide umbrella (Super 8, Days Inn, Wyndham, Ramada, Travel Lodge, Knights Inn, Wingate, Howard Johnson and Amerihost) will celebrate 2008 as their first full year after being spun off from Cendent, combined with assets sold from Blackstone and finally combined into one new, publicly traded company. Wyndham Worldwide has some very well known hotel brands, although, except for Wyndham and Ramda Inn (and some people may even debate about that) most of the brands are economy, low end, brands. If anything, those brands bring down the Wyndham name. Wyndham Worldwide is primarily a franchise company &#8211; the majority of their hotels are franchised, not owned or managed by Wyndham itself. It&#8217;s going to be interesting to see how the company operates as time goes on because in addition to the other brands in the Wyndham Worldwide umbrella, Wyndham is also starting to differentiate their hotels with the Wyndham name &#8211; Historic, Garden, Resort, Airport, and Grand Collection. It makes you wonder &#8211; what is their mission &#8211; expand the franchise portion of the business, leave the luxury category to Wyndham with managed/owned properties? 2008 should bring some clarity to these questions.</p>
<p>Donald Trump will begin to open his “Trump Hotel Collection” within his condo developments &#8211; the first being in Chicago which just opened a few days back and their SoHo location being close behind. Trump &#8211; king of self-promotion &#8211; is saying that these hotels will be high end and one of a kind, but I&#8217;m not impressed. He&#8217;s just using extra rooms that are not being occupied by the owners of the condos. If he really wanted to get into the hotel business he would build or buy existing historic buildings or hotels. That&#8217;s what would set him apart.</p>
<p>LodgeWorks, LP will also have a banner year in 2008. They have a few dozen hotels under development throughout America &#8211; primarily of the Hotel Sierra and Avia Suites brand, as well as other brands from Starwood, Hyatt and Hilton. I wouldn&#8217;t be surprised if LodgeWorks ends up selling off one of their new brands &#8211; Avia or Hotel Sierra &#8211; since thats what they do best, but I really like what I see with those two concepts. I hope that they are able to hold onto it and build it into something big. Since LodgeWorks, LP is made up of numerous partners, rather than a corporation, who knows what direction it will take, or will it just forge ahead on its current pathway?</p>
<p>Hyatt will open another Andaz hotel in 2008 &#8211; the Andaz Wall Street &#8211; located at 75 Wall Street in New York City. This will be Andaz&#8217;s first location in America and will start to see the expansion of the brand in New York. Andaz is also scheduled to open a location on 5th Ave in New York and another one in Austin, Texas. I&#8217;m sure we&#8217;ll see more and more announcements of Andaz locations as the year goes on. 2008 will see the last AmeriSuites close and then re-open as Hyatt Place, they just recently announced the 100th Hyatt Place opening (99% of them being conversions from AmeriSuites). I&#8217;m curious to see what &#8211; if anything will occur with the Hawthorne Suites &amp; MicroTel brands that Hyatt owns, yet hasn&#8217;t fully integrated into the Hyatt umbrella. Hawthorne &amp; MicroTel&#8217;s parent company USFS Franchise Systems was acquired by Hyatt in 2000 and since then, those two brands have continued to grow, yet slowly. Hawthorne has been integrated with Hyatt&#8217;s frequent guest program and added the Hyatt name to it&#8217;s logo, but that&#8217;s all. It has not been completely integrated into Hyatt such as Amerisuites/Hyatt Place &amp; Summerfield Suites have. MicroTel on the other hand has received even less attention, besides a website upgrade and a refreshed logo not much has happened with MicroTel. If you visit MicroTel&#8217;s <a href="http://www.microtelinn.com" target="_blank">website</a>, you have to do a little searching to figure out that it&#8217;s even owned by Hyatt. It almost seems as though Hyatt is fixing up the brands so they can divest the USFS Franchise systems to concentrate on their primary brands &#8211; Hyatt, Hyatt Place, Summerfield Suites &amp; Andaz. Hawthorne &amp; especially MicroTel Inns do not really fit in Hyatt&#8217;s picture.</p>
<p>Well that&#8217;s it, those are the developments and changes that I can see or would like to see in the hotel industry in 2008. There are so many other things I could add, but I wanted to get this post finished before 2009. I haven&#8217;t even scratched the surface of companies like Choice Hotels, or NYLO, eSuites, Rosewood, Thompson Hotel Group, Andre Balazas, or Morgans Hotel Group. If anyone thinks I left out anything major &#8211; let me know.</p>
<p>Becides what the actual brands are going to be doing, 2008 will see an increased attention being paid to the design of a hotel. More and more hotels will feel like works of art &#8211; rather than the same drab and boring hallways, doors and rooms. If 2007 saw the beginnings of this move, 2008 will see it on an even greater scale.</p>
<p>Have a great 2008! I know this is going to be a great year for me &#8211; and I hope the best for everyone who reads my blog.</p>
<p><a href="mailto:andrew@alconic-inc.com" target="_blank">andrew@alconic-inc.com</a></p>
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		<title>LodgeWorks LP: Under Funded Serial Hotel Brand Creator?</title>
		<link>http://www.passionsofazealot.com/2007/10/24/lodgeworks-lp-under-funded-serial-hotel-brand-creator/</link>
		<comments>http://www.passionsofazealot.com/2007/10/24/lodgeworks-lp-under-funded-serial-hotel-brand-creator/#comments</comments>
		<pubDate>Wed, 24 Oct 2007 10:36:30 +0000</pubDate>
		<dc:creator>Andrew Calvo</dc:creator>
				<category><![CDATA[construction]]></category>
		<category><![CDATA[Hotel Development]]></category>
		<category><![CDATA[hyatt]]></category>
		<category><![CDATA[lodgeworks]]></category>
		<category><![CDATA[marriott]]></category>
		<category><![CDATA[real estate]]></category>
		<category><![CDATA[Starwood Capital Group]]></category>
		<category><![CDATA[Starwood Hotels]]></category>
		<category><![CDATA[wyndham hotels]]></category>

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		<description><![CDATA[I&#8217;m sure not too many people have heard of LodgeWorks, LP, or even the two men behind it &#8211; Rolf E. Ruhfus, and B. Anthony Isaac, but I&#8217;m sure you&#8217;ve heard of the hotel brands they&#8217;ve created, and subsequently sold &#8211; you know, small, local brands (sense the sarcasm) such as Residence Inn, Summerfield Suites, [...]]]></description>
			<content:encoded><![CDATA[<p>I&#8217;m sure not too many people have heard of LodgeWorks, LP, or even the two men behind it &#8211; Rolf E. Ruhfus, and B. Anthony Isaac, but I&#8217;m sure you&#8217;ve heard of the hotel brands they&#8217;ve created, and subsequently sold &#8211; you know, small, local brands (sense the sarcasm) such as Residence Inn, Summerfield Suites, and Sierra Suites Gen 1 (now known as &#8216;Extended Stay Deluxe&#8217;, owned by the Extended Stay Hotels Company). Now, Ruhfus &amp; Isaac are doing it again &#8211; creating two other brands named Avia Boutique Collection &amp; Hotel Sierra, in addition to Sierra Suites Gen 2 (whose development seems to have stopped), and a few other random hotels.</p>
<p align="center"><a target="_blank" href="http://www.lodgeworks.com/lwcs/hotels_index.asp">Here is a list of their current hotels</a></p>
<p>First, let me give you a quick background on LodgeWorks, then I&#8217;ll delve into why I think Avia &amp; Hotel Sierra has the potential to be hugely popular (but won&#8217;t), and then probably be bought out by a big hotel chain (hey- it&#8217;s happened to them three times already, why should they stop now?). Before LodgeWorks, LP was formed in 2000, Ruhfus &amp; Isaac were partners who pretty much created the Extended Stay hotel category with Residence Inn &#8211; Residence Inn was the first extended stay hotel brand, with multiple locations; they realized that business travelers would like a hotel which reminds them somewhat of home &#8211; kitchen facilities, including silverware dishes and a few cooking utensils, and those who would utilize those hotels would pay a premium, as well as stay longer than the usual few nights, thus, extended stay hotels could have less employees on staff (since there wasn&#8217;t as much turn over of guests) as well as make more per night with the higher room rates.</p>
<p>Residence Inn was sold to Marriott Corporation in 1987 and Residence Inn is now is the largest Extended Stay brand in America. Soon after Residence Inn was sold, in 1988m, Ruhfus &amp; Isaac created another hotel brand &#8211; Summerfield Suites, whose claim to fame at the time was having two-bedroom, two-bath suites (apparently unheard of at the time).</p>
<p>In 1996, LodgeWorks created the Sierra Suites (Gen 1) brand, and in 1997 sold both the Summerfield Suites &amp; Sierra Suites brands to Wyndham International. Wyndham renamed Summerfield Suites as &#8220;Summerfield Suites by Wyndham&#8221; and kept the Sierra Suites name seperate from the Wyndham name. LodgeWorks continued to build and operate a number of Summerfield Suites by Wyndham hotels as well as build another 15 Sierra Suites throughout America, while simultaneously developing Gen 2 of Sierra Suites, which was a more upscale extended stay hotel.</p>
<p>Finally in 2005, LodgeWorks sold 15 Gen 1 Sierra Suites to Extended Stay Hotels, which renamed them Extended Stay Deluxe, and continued to develop their Gen 2 Sierra Suites.</p>
<p>In the meantime, the brands that LodgeWorks originally created &#8211; Summerfield Suites, was purchased by the Blackstone Group with Blackstone&#8217;s purchase of Wyndham, and then sold to Hyatt in 2005. The Sierra Suites Gen 1 hotels were rebranded as Extended Stay Deluxe hotels, and integrated into the Extended Stay Hotel company, which was also owned by Blackstone Group &#8211; earlier this year Blackstone sold the Extended Stay Brand to the Lightstone Group; and Residence Inn continued to grow into the largest extended stay brand in the country under Marriott&#8217;s leadership.</p>
<p>Lodgeworks didn&#8217;t stop there &#8211; they then started the next generation of Sierra Suites (Gen 3?) &#8211; called <a target="_blank" href="http://www.thehotelsierra.com/">Hotel Sierra</a>, the first one which is scheduled to open this month in Washington DC, with another 8 Hotel Sierra&#8217;s in development. Not being one to rest on their laurels, LodgeWorks created ANOTHER hotel brand &#8211; <a target="_blank" href="http://www.aviahotels.com/">Avia Boutique Collection</a>, a luxury boutique brand which they have 6 hotels in the pipeline for.</p>
<p>Whew.. Did you follow all of that?</p>
<p>Hotel Sierra is an all suites hotel which is offering a more luxury, and sophisticated hotel stay. They are providing complimentary breakfasts, business centers, &#8220;luxury SUV shuttle service&#8221;, as well as free wired and wireless internet. What differentiates Hotel Sierra from other Suite hotels is the contemporary, modern design which can be found everywhere from the table top to the bed linens &#8211; its the type of differentiation that element will also offer.</p>
<p align="center"><img src="http://qxczpq.bay.livefilestore.com/y1paDYwPcDJoRySfXpVf53bHwPGEM1qtcmayWS6jw1PJH-eg106kO-gyV-b3kNUaZ5gqVdWxJfmXyE7UFni9Z-7_w/Hotel_Sierra_Exterior.jpg" /><br />
Hotel Sierra Rendering</p>
<p>Avia Boutique Collection is being marketed as a boutique hotel brand, and it seems to be following the same type of design look and feel that Hotel Sierra is based upon &#8211; except for the fact that Avia is not a suites hotel. Avia does not include a kitchen nor multiple rooms like Hotel Sierra does; but once again &#8211; it will differentiate itself by some rooms having working fireplaces, soaking tubs, and olive wood floors. Wow! Each hotel is also supposed to have local touches, an important facet that should be part of every boutique brand &#8211; but I think the industry is losing that and instead calling any hotel that is modern, classy, or contemporary a boutique brand.</p>
<p align="center"><img src="http://qxczpq.bay.livefilestore.com/y1paDYwPcDJoRzdW1IKtOwTNA5mgBHBLfShO6DJshcc3v6tcuCWIAC6E5C-3pPEKO9gXXpDgGISc8gABZUdlQHk5A/Avia_Exterior.jpg" /><br />
Avia Boutique Collection Rendering</p>
<p align="center"><img src="http://qxczpq.bay.livefilestore.com/y1paDYwPcDJoRxiK8yh4IyEx6ZHp_inB7rkYht8foc1YH6xtXqIoqpVJirsSnt7f60IOPpByBCf9r2KihsItbZD8g/Avia_Hotels_Room.jpg" /><br />
Avia Room Rendering</p>
<p>There is no word yet on the projected price point of either hotel, nor the development forecast of either hotel. It is interesting to point out that the Hotel Sierra properties all seem to be located within mixed use projects and are being constructed under a license (and I would assume partially owned by) by a developer &#8211; yet both brands do not seem to be franchised, only licensed.</p>
<p>It&#8217;s very surprising that LodgeWorks isn&#8217;t focusing only on their own brands &#8211; they are also building two alofts, three Hyatt Places, and currently own a Hilton Garden Inn and nine Hyatt Summerfield Suites.</p>
<p>The question is Why?</p>
<p>Why is a company which has had so much success launching (and then selling off) hotel brands both establishing an additional two brands from the ground up &#8211; as well as actively building and developing hotels under competitive flags? Why has LodgeWorks, LP not promoted the Hotel Sierra &amp; Avia brands like Starwood promotes element and aloft, or Hyatt Place and Hyatt Summerfield Suites is promoted? I think it is due to LodgeWorks, LP not being a public company, nor does it have the major backing of either an extremely wealthy family, or private investment firm they are severely limited in how quickly their concept it can be replicated by the developer community. But the bigger question I have is why is LodgeWorks not franchising their brands to ease further growth and increase developer interest?</p>
<p>The fact that LodgeWorks has two great concepts, yet are still developing brands from other flags is confusing because its almost as though they do not have the confidence in their own brands, or don&#8217;t feel as though the brands will be successful.</p>
<p>In LodgeWork&#8217;s Development Brochure they state the following:</p>
<blockquote><p>LodgeWorks, LP is a seasoned hotel management and development company in the midst of exciting growth. Our portfolio encompasses a soon-to-launch luxury boutique collection &#8211; Avia; a strategic refresh of Sierra Suites Hotel to a boutique-inspired (upscale suite brand) Hotel Sierra; and a growing portfolio of other branded product.</p></blockquote>
<p>It explains perfectly what LodgeWorks is up too &#8211; but it doesn&#8217;t answer the question &#8211; why are they developing their own brands, while simultaneously building and operating brands from the competition</p>
<p><a href="mailto:andrew@alconic-inc.com">andrew@alconic-inc.com</a></p>
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