October | New & Renovated

What’s New & Renovated

Meeting Sites With a Fresh New Look

By Marlane Bundock
Whether it’s a groundbreaking or a grand opening, an announcement of improvements to come or news of a project’s completion, 2007 has been an active year for meeting sites & their commitment to the guest experience.

In fact, the data speaks volumes. According to a recent report by Smith Travel Research (STR), the number of hotel guest rooms under construction in July reached 196,000—or more than 2,000 hotels—a 20 percent increase from a year earlier and the busiest year for new lodging construction in more than seven years.

The building boom can be traced to record-setting room rates and increased occupancy, said Mark Lomanno, STR president, explaining that “strong average daily rate (ADR) growth of 7.2 percent in 2006 fueled increased industry profitability” and that modest inventory growth in the past matched with high occupancy levels has “helped bolster operators’ pricing power.”

Renovations and other enhancements to existing properties are also on the rise, according to PricewaterhouseCoopers’ (PwC) latest forecast released in March. It reported that following a record $5 billion invested in the U.S. lodging industry in 2006, the industry is expected to invest approximately $5.5 billion in 2007. “Although the maintenance and general condition of U.S. hotels is the best it has ever been, the industry continues to make improvements and offer further enhancements,” said Bjorn Hanson, Ph.D., principal of PwC’s Hospitality and Leisure practice.

Hanson said these investments, such as a switch to flat-screen TVs in guest rooms, are contributing to higher guest satisfaction rates. “The lodging industry has used technology and training to enhance guests’ experiences with extremely favorable results,” he said earlier this year.

Likewise, Dr. Jonathan Barsky, director of research activities for Market Metrix LLC, surveys travelers on their lodging experiences and revealed that “strong revenue growth for the first three months of 2007 and investments in staffing, services and amenities, made a positive impact on the hotel guest experience.”

The South’s New Look

The investments being made in the U.S. lodging industry can be seen in the South with hundreds of new and renovated projects either recently finished or looking forward to completion.

For example, in Flower Mound, Texas, on the banks of Lake Grapevine, construction continues on the Lakeside Resort and Residences. Ground was broken on the project earlier this year, and the 289-room property is set to open in the fall of 2008 with a 25,000-square-foot convention center, according to Burt Cabanas, Benchmark Hospitality International chairman/CEO. “Lakeside Resort is superbly located and will be first rate in every way.”

The 2,000-room Orlando (Fla.) World Center Marriott Resort and Convention Center is unveiling the largest pillar-free resort ballroom in the country this month, said former Director of Sales and Marketing Tim Swan, explaining that the column-free, 105,000-square-foot Cypress Ballroom will have 10 dedicated loading docks, house up to 596 10-foot-by-10-foot booths and seat more than 9,000 attendees at rounds of 10 or 13,000, theater style. Connected to the existing Palms Ballroom, the two spaces will provide 160,000 square feet of pillar-free, carpeted meeting space.

In South Carolina, the Hyatt Regency Greenville began a $5.2 million renovation this year. General Manager Nancy Dudak said the project is enhancing the hotel’s 328 guest rooms and suites and 24,000 square feet of meeting space. Enhancements include the addition of Hyatt’s Grand Bed, oversized feather pillows, 250-thread-count triple sheeting, a new workstation with an oversized desk, wireless Internet access and a 32-inch LCD flat-panel TV in each guest room. “This renovation will capture the essence of relaxed elegance and add the convenience of in-room technology as well as comfortable, contemporary new products,” Dudak said. Renovations are set to wrap up in December.

Next Generation Trends

The PwC report also stated that many hotel companies are focusing on Generation X and Y guests by adding new elements of technology, design and pampering.

For example, this summer, The Ritz-Carlton Hotel Company announced a three-year capital improvement plan for all properties with enhancements ranging from flat-screen TVs and wireless Internet capability to higher thread count bedding and gourmet coffee makers, said Simon Cooper, the company’s president/CEO. “It’s critical for The Ritz-Carlton to retain today’s loyal customer while still attracting the next generation of business and leisure travelers. Their expectations of a hotel experience have helped our brand evolve from one known for elegant formality to one of more relevant and relaxed luxury.”

New brands specifically geared toward Gen X and Y guests emerged in 2007. For example, Starwood Hotels and Resorts’ new brand, aloft, expects about 20 groundbreakings by year’s end. Ross Klein, president of Starwood Luxury Brand Group and aloft hotels worldwide, said the brand represents a “new twist in travel, providing the next generation of business and leisure travelers with a fun new way to play and stay.”

Hotels are also placing an emphasis on sensory amenities. This year, Omni launched several sensory heightening amenities, such as their in-room Sensation Bar, a mini-bar with items designed to reflect the local culture of each property along with indulgent products such as Dean and Deluca chocolates, said Michael Deitemeyer, Omni Hotels president.

Westin rolled out a new in-room spa program that includes a portable spa bed and a spa basket filled with sensory items, said Sue Brush, Westin Hotels and Resorts senior vice president. “This program is also ideal for business travelers who often have a small window of time for relaxation and pampering.”

In June, Hilton Hotels Corporation (HHC) announced a strategic arrangement with designer spa providers like Moet Hennessy-Louis Vuitton in an effort to redefine the hotel spa experience, said Matthew Hart, HHC’s president/CEO. “Discerning travelers increasingly are seeking a complete wellness experience,” he said.

Likewise, instituting a 100 percent smoke-free environment became mainstream in 2007 as brands like Marriott and Westin instituted property-wide initiatives in 2006. “Creating a smoke-free environment demonstrates a new level of service and care for our guests and associates,” said J.W. Marriott Jr., chairman/CEO of Marriott International.

And, in response to growing concern about global warming and conservation issues, being environmentally responsible has also become a top trend in the hotel industry, with properties initiating various “green” programs, such as changing linens and towels upon request and using water-saving bathroom faucets and toilets.

Commenting on these green initiatives, Linda Hirneise, executive director of the travel practice at J.D. Power and Associates, said, “Guests are increasingly looking for these types of offerings, and hotels are finding that going green actually saves money.”