peak performers +ains0 lead a parade of achievers€¦ · by adrian bell 38 chic magnet hotelier...

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Canada’s top three hotel chains lead a parade of achievers

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JULY/AUGUST 2012 HOTELIER 1hoteliermagazine.com

Features12 STANDING PROUD

After a slow start, the industry’s Top 50 enjoyed a solid 2011By Laura Pratt

30 THE NEW NORMAL It’s out with the dull hotel restaurants and in with chef-driven dining destinations By Adrian Bell

38 CHIC MAGNETHotelier magazine surveyed hotels and suppliers to learn about the bedding, linen and drapery trends driving guestroom design By Jackie Sloat-Spencer

45 SAFE HAVENSHigh security means low anxiety for Canadian hoteliersBy Denise Deveau

48 WI-FI OR DIEHoteliers charging guests for Internet access could be dead in the waterBy Larry Mogelonsky

Vo l ume 2 4 , N umbe r 5 / / J u l y / A ug u s t 2 0 1 2

ON THE COVER:Westmont Hospitality’sKenny Gibson (left), Four Season’s Katie Taylor(centre) and Fairmont Hotel’sMichael Glennie (righ t)Illustrated by Adrian Lubbers

Departments2 EDITOR’S PAGE3 CHECKING IN 52 HOTELIER:

Andrew Torriani, The Ritz-Carlton, Montreal

Contents

Scan to viewour website

ALL ABOUT RATES

2 JULY/AUGUST 2012 HOTELIER

ROSANNA CAIRAEditor and Publisher

[email protected]

EDITOR’S PAGE

Speak to any hotelier and the issue thatconsistently surfaces is the challenge ofmoving rates to the level they need to

be. Whether we’re speaking about a limited-service hotel or a luxury property, hoteliersaround the world are finding it virtually im-possible to raise hotel rates. Given the industryis recovering from one of its most challengingrecessions, the issue has become even moreprecarious. How can you justify raising rateswhen occupancy levels are mediocre at best,and when consumers expect frugality atevery turn?

Now, a recent study by l’Ecole Hôtelière de Lausanne (Switzerland) andRateTiger substantiates that reality, stating rate parity is the key factor af-fecting hotels’ distribution and revenue strategies today. The study suggestshotels are neglecting the fundamentals of revenue management with an eyeto alternative distribution techniques.

The study found revenue managers are using channel-management toolsand price-shopping reports, up to 11 times a day, on average, to drive revenueon their main channels. “However, as they struggle to maintain price consis-tency,” reads the report, “they are seeking new ways to improve exposure,reach new markets and increase direct bookings.”

According to Horatiu Tudori, senior lecturer, Revenue Management, EcoleHôtelière de Lausanne, “Retail sites are continuously monitoring rate parity,placing a lot of pressure on hotels to update rates on their channels.” This, inturn, is forcing hoteliers to spend more time managing rate parity and ensuringrate integrity, and consequently taking them away from defining more sophisti-cated strategies to reduce the cost of distribution and increase RevPAR.

Fuelling these changes is the fact that OTAs are getting bigger and in-creasingly influential. “We cannot fight against them, so we are trying to findsome other ways of communicating our offerings and being exposed on theweb,” reads the study.

Rate parity and the burgeoning power of OTAs is forcing hoteliers to sourcenew revenue and booking streams. According to the study, hoteliers are nowfocusing on direct sales by developing new corporate contracts, better promot-ing their own web sales and maintaining faster availability and rates on non-conventional distribution channels to stay ahead of the game.

Clearly it’s a pressing issue, and one that needs to be addressed quickly. AsJohn O’Neill, president and CEO of Vancouver-based O’Neill Hotels andResorts, says in this month’s Top 50 overview (see story on p. 12). “Rategrowth has not kept up with the increase in expenses, and it’s in the industry’sbest interest to charge an appropriate amount for the services we provide.That will allow hotel owners a chance to re-invest in their product and keepit in top condition. In that case, everyone wins ... including the guest.”

ADVISORY BOARD:David McMillan, Tracy Sherren, PACRIM

HOSPITALITY SERVICES, Charles Suddaby,CUSHMAN & WAKEFIELD LTD., Bill Stone,

CBRE, Joe Collura, HOTELEVISION CANADALTD., W. Lyle Hall,HALL HOSPITALITY

ADVISORS, INC., David Larone, PKF, Henry Wu,METROPOLITAN HOTELS, Stephen Renard,RENARD INTERNATIONAL HOSPITALITY,

Stephen Foster, STARWOOD HOTELS,Michael Haywood,Anne Larcade, SEQUEL

HOTELS & RESORTS

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Checking InTHE LATEST INDUSTRY NEWS FOR HOTEL EXECUTIVES FROM CANADA AND AROUND THE WORLD

I t was a day to bid farewell to outgoing chairs, welcomeincoming ones and chart a future course for three ofOntario’s key associations. Last month, ORHMA, the

Greater Toronto Hotel Association (GTHA) and TourismToronto hosted their respective AGMs at the MetroToronto Convention Centre.

First up to bat was the GTHA, which bid farewell tooutgoing chair Andy Loges, GM, Hilton Airport, and wel-comed new chair Robert Houssez of the Delta Meadowvale.It’s been a busy year for the association as it dealt with leg-islative changes to special occasion permits and workedthrough modernization of beverage rules as well as the in-troduction of accessibility legislation. But, most of the talkat the AGMs was about tourism. In recent months the as-sociations have been working to put a mechanism in placeto continue the work of the Destination Marketing Fund(DMF), which was wiped out by the introduction of 13 percent HST on guestrooms. “We need to establish a DMF tosustain the long-term funding of our sales and marketingefforts,” said Houssez in his opening address.

Terry Mundell, president and CEO of the GTHA, de-livered an impassioned plea for continued DMF. “Wehave $7.5 million to market Toronto, Mississauga andBrampton. But do we think we can survive on $7.5 mil-lion these days, in this market, where competition is sofierce? Seven and a half million doesn’t make us competi-tive, it makes us irrelevant,” said Mundell, pointing toevents such as 9/11 and SARS, which impacted the city’sability to attract guests to the GTA.

Interestingly, Toronto’s DMF was born in 2004 in an ef-fort to deal with the impact of those two casualties. “Thehotel industry is being asked to lead. Let’s not be afraid totake that step,” said Mundell. “Standing still is not an op-tion,” he added, imploring the hotel industry to make thedecision to implement the voluntary fee.

Dwight Duncan, finance minister, followed Mundell’saddress, stressing the vital role tourism plays in the Ontarioeconomy. The minister also broached the controversial sub-ject of casinos. “Gaming is here, and it’s here to stay,” hesaid. “The question is how do we enhance expansion andconsolidation of gaming? We want to put casinos where cus-tomers are,” he told a room full of hoteliers. “[But] We won’timpose anything on a community that doesn’t want it.”

At ORHMA’s AGM next door, the association wel-comed incoming chair Darren Sim, of A&W Foodser-vices of Canada. Sim replaced David Blades of Days Inn.

Later that afternoon, Tourism Toronto’s AGM attracted800 industry stakeholders. Citing statistics that showtourism in Toronto is rebounding, David Whittaker, presi-dent and CEO, said 2011 was a banner year for tourism. Forthe first time, hotels surpassed nine-million room nights soldand visitor spending was a record $4.6 billion. The city’s oc-cupancy rate continues to rank in the top 10 in NorthAmerica, with record occupancy levels this past February.

After years of inactivity on the infrastructure front,today there is a wealth of activity in the city. “The openingof four new hotels is unprecedented in North America,with the exception of New York,” said Whittaker. Otherhighlights include the completion of renovations to UnionStation; the revitalization of Ontario Place, set for 2017;and the opening of the Ripley’s Aquarium (above) at thefoot of the CN Tower, slated to open in 2013. And, withthe city set to host the Pan Am Games in 2015, there’s afeeling of renewed optimism. “Toronto is continuing toemerge as a major destination to meet in; it’s not the timeto take our foot off the pedal,” warned Whittaker.

In concluding the AGM, Whittaker thanked DavidOgilvie of Starwood Hotels for his efforts during his termas chair before welcoming Johanne Belanger, president ofAVW Telav as incoming chair. �

WELCOMINGTHE WORLD

Hospitality associations hold AGMs in Toronto BY ROSANNA CAIRA

The RipleyAquarium

4 JULY/AUGUST 2012 HOTELIER hoteliermagazine.com

One of the latest hotels to land in Niagara Falls, Ont. is Wynd-ham’s Garden Fallsview, Niagara Falls. The 152-room property isowned by Canop Investments and features an on-site PerkinsRestaurant and Bakery, offering breakfast, lunch and dinner. Thehotel — both business and family friendly — boasts an indoorheated pool and hot tub, 24-hour fitness centre and arcade. Thehotel offers expansive views of both the honeymoon city and theNiagara River. Coupled with its proximity to local tourist desti-nations, the hotel should fit comfortably in the ever-expandingregion. John Green, brand senior vice-president of WyndhamHotels and Resorts, says the company is “proud to bring theWyndham brand to Canada — [to] a renowned North-Americandestination for both business and leisure travel.”

Now Open

Best Western Internationalhas introduced its “I Care Clean”

program. The program, whichwill be launched later this year,

mandates all of the brand’shotels in North America use

ultraviolet light (UV) inspectionblack lights and UV sterilization

wands as part of the dailyin-room cleaning process.

Sometimes known as ultravioletgermicidal irradiation (UVGI),the process has been successful

in hospitals to detect and destroymicro-organisms not visible tothe naked eye. A pilot project

was successfully implemented atselect hotel properties across

North America, garnering highguest satisfaction scores in

room cleanliness. Ron Pohl,senior vice-president of Brand

Management and MemberServices, Best Western, says theprogram is Best Western’s “wayof re-engineering housekeeping

efforts to provide superiorcustomer care to each and every

one of our guests night inand night out.”

The Rosseau Muskoka Hotel,a J.W. Marriott resort operatedby Canadian Niagara HotelsInc., allegedly threatened to

terminate spa employees recentlywho refused to share tips with

the hotel, according to anexclusive report by The Star.

“Should continuing youremployment with The Rosseau,

under this new policy not beacceptable to you, your employ-

ment will terminate,” reads a letter allegedly written by TonyTamburro, the hotel’s GM, andobtained by the Star. Accordingto the Star report, the new hotelpolicy would see half of employ-

ees gratuities go to the hotelwith 8.75 per cent to the hotel

and 1.25 per cent to administra-tive associates at the spa.

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Fairmont Hotels & Resorts iscatering more directly to a grow-ing group of Chinese clientele,with the addition of a Chinesemenu program. Now, dishes suchas congee and traditional rice por-

ridge will be served as breakfast options at Fairmont restaurants.And, hot and cold towels will be offered to guests before and aftermeals. “Personalization will and always will be a hallmark of theFairmont experience, so, to that end, we’ve taken the proactivestep of expanding our food-and-beverage programming with au-thentic touches that will help make our Chinese guests feel morecomfortable and welcome,” said Jean Michel Offe, vice-presidentof Food and Beverage at Fairmont Hotels & Resorts.


EASTERNINFLUENCES

With a design byJapanese firm, SuperPotato Co. Ltd., DanielBoulud’s Maison

Boulud opened at the famed Ritz-Carlton in Montre-al. Conveying the comfort and warmth chef Boulud isknown for, the restaurant — with GM Cyril Duport atthe helm — is quickly becoming known as Montreal’shot spot for delicious food and wine. Riccardo Bertoli-no, Maison Boulud’s executive chef, lands in Quebecafter successful career stops in Italy, London, Paris andSingapore. Bertolino, who says, “cooking is not a job,it’s a life,” also has four Boulud kitchens under his belt.

MAKINGA SPLASH

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According to Britain’s Telegraph , the 2012 LondonOlympics aren’t having a positive impact on hotelrates in the British city. In fact, hotel prices have

dipped more than 24 per cent, due to low demand.The newspaper says the average room rate droppedthe equivalent of approximately $100 during the

games, set to begin July 27. The newspaper, quotingthe London 2012 Organizing Committee (LOCOG),

reads, “as part of the bid to stage the 2012 Games,LOCOG had reached agreements with hotels to pro-vide it with more than 40,000 rooms, representingmore than 600,000 room nights during the period.

As part of the deal, the organizing committeepromised to return any unwanted rooms back to thehotels so they could sell them in time for the games.”It turns out thousands of rooms have reportedly beenreturned, and as the Games draw closer, and rooms at

“premium rates” aren’t selling, prices are dropping.

OLYMPIC LOSSES

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The Park Hyatt hotel hosted a Beam bourbon tasting and barbe-cue recently. Joan Monfaredi, executive chef, Park Hyatt, Torontocreated several dishes for the event, including Black Angus horsd’oeuvres, a carpaccio starter and three courses using the finestaged beef available. “It’s an opportunity to have everyone tastethe different choice cuts, [give] a little education and, ultimately,provide a great evening. Plus bourbon and beef just go togethernicely,” said Monfaredi. The main course, a Spring Creek,steroid- and antibiotic-free, 35-day aged tenderloin, was a hitwith those in attendance. Beam Global’s ‘whisky ambassador,’Matt Jones, gave a lively talk about the whisky’s history, cultureand market share. “Bourbon is the fastest-growing category at theLCBO,” said Jones. “There used to be six, now there are 36 bour-bons at the LCBO.”

A BOOST FOR BOURBON

THERE’SSTRENGTH

IN NUMBERS.

Source: Internal data as of 9/30/10. Data reflects open and underdevelopmentproperties worldwide.©2012 Choice Hotels Canada Inc. All rights reserved.

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The city of Richmond, B.C., is under scrutinyto see whether the city can sustain the 15hotel builds planned within 20 years. Currentlythe city has 27 hotels with 5,150 rooms.“Originally we were going to put a hotel inour development, but I realized that with 16hotels potentially coming up in Richmondthere will be an over supply,” Fairchild Groupowner Thomas Fung told Business in Vancou-ver...The Muskoka Grandview Resort, for-merly the Delta Grandview, is now beingmanaged by The Lodges at Blue MountainCorporation (LBM), complete with staff restructuring. Sheldon Rosen, founder, TheLodges at Blue Mountain Corporation, toldHotelier, “new staff has been hired, [as] previ-ous staff who worked for Delta were terminatedin February 2012.” Rosen’s company has grown,on average, 50 per cent, per year, over the lastfive years, and he says LBM’s move intoMuskoka is exciting. “I’m especially lookingforward to working with one of the region’seminent and favourite resorts — one that carries many traditions and memories for generations of yearly visitors.”

InBriefA study by British-based HVS Executive Search, says turnover of CEOs

amongst the world’s 50 largest hotel companies doubled in 2011. The find-

ings show that 12 per cent of companies are being led by a new chief exec-

utive, compared to 2009. However, the choice of CEOs is becoming more

conservative in the sector, with internal promotions or appointments from

within the hotel industry becoming more commonplace. Co-authored by

Chris Mumford and Thomas Mielke, both of HVS Executive Search, the

biennial CEO monitor tracks succession rate, as well as the profiles and

demographics of outgoing and incoming CEOs. “During the early days of

the global economic meltdown we certainly witnessed shareholders and

boards electing to either stick by their management teams and support

them out of recession, or make a quick change and recruit a CEO suitable

for the tough times ahead,” said Mumford, HVS Executive Search, presi-

dent, Europe, Middle East and Africa, one of the study’s authors. “As we

look ahead to the next two years we anticipate changes will largely be dri-

ven by economic conditions; a company with financial stability, and an

aggressive growth strategy requires a different leadership skill-set to one in

survival mode,” he added. The study also revealed a change in the typical

profile of a hotel company CEO due to the influx of Chinese companies

moving into the top 50 largest hotel companies list. Leaders of these com-

panies tend to be younger than their Western counterparts and are typical-

ly first-time CEOs groomed into the role by the chairman or previous CEO.

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Linda Hagen is the new direc-tor of Brand Engagement forCoast Hotels & Resorts. Previ-ously GM of Coast Plaza Hotel& Suites, Vancouver, Hagen isresponsible for quality assuranceand compliance for the CoastHotels & Resorts’ 41 hotelproperties in Canada and theU.S...Patrick Dault is the newdirector of Sales and Marketingat W Montreal. He will man-age the transient, group andcatering sales as well as market-ing programs for the hotel.Dault was previously the man-ager of Meeting and Conven-tion Sales for Tourisme Mon-treal, and the director of Salesand Marketing at the NovotelOttawa...Derek Damon is thenew food and beverage director at the RosewoodHotel Georgia in Vancouver. He previouslyworked at the Rosewood Crescent Hotel and ispast owner of the Johnny Rocket franchise in Ari-zona. Qaiser Mian has joined Colliers Interna-tional Hotels as an associate based in Toronto.Mian has held various roles in the hotel real-estateindustry since graduating from Ryerson’s hotelprogram in 2005. He was most recently part of theDebt Asset Management team at GE Capital RealEstate. He will be working with the ColliersCanadian hotel team on mandates across thecountry, focusing on financial underwriting andsales assistance...Joe Dias has been appointed GMof Metropolitan Hotel Vancouver. Dias bringsmore than 17 years of tourism and hospitality ex-perience to his new post. Prior to joining Metro-politan Hotels, he was GM of Hotel Le Soleil inVancouver. He has also held positions withCrowne Plaza, O’Neill Hotels and Resorts andDelta Hotels...Tom Brodi, is no longer executivechef of TOCA at the Ritz-Carlton, Toronto. Areplacement has yet to be announced.

B4Checkin, a Halifax-based revenue-maximizingonline booking, communication and feedback soft-ware system provider, announced its newest client,Le Crystal Hôtel & Spa in Montreal. “With theaddition of this property, we have our first Canadianbilingual customer, and I feel confident others willsoon follow,” said Saar Fabrikant, president andCEO of B4Checkin...Jon Lantz has joined SelectHotel Investment as the new managing director.Previously with PKF, Lantz brings experience inappraisals, valuations, site selection, construction,and equity-funding to his new position. �

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Standing ProudAfter a slow start, the industry’s Top 50 enjoyed a solid 2011

BY LAURA PRATT

Westmont Hospitality’s Kenny Gibson (left), Four Season’s Katie Taylor (centre) and Fairmont

Hotel’s Michael Glennie (righ t)


Feeding on the glimmers of an uptick, whichthe industry began to feel in the last quarter of2010, the dawn of 2011 was met with highhopes. The economy was rebounding, and oper-ational contractions in the latter part of the firstdecade of the new century were being cautious-ly eased. In the end, 2011 was a mixed bag,meeting expectations on the revenue front butfailing to nudge rates up to a healthier level.The continued recovery, which industry watch-ers had predicted on the demand side, failed tomaterialize. And, while 2011 saw modest gainsin profit, the bottom-line growth rates of fiveper cent and six per cent industry analysts pre-dicted, fell flat. Not surprisingly, growth wasminimal. In fact, according to Hotelier’s Top 50Report (see p. 19) industry sales rang in at$17.0 billion, up 5.5 per cent from last year’s$16.1 billion.

RATE CHALLENGE // “The year didn’t end asstrong as we’d hoped it would,” says Brian Stan-ford, director at Toronto-based PKF Consulting.The reality check was due to many factors; themost significant being the failure of the industryto achieve better performance on ADR. Com-ing off a stretch artificially inflated by theOlympics, the hotel business in the West hadno option but to contract. Central and AtlanticCanada, meanwhile, experienced an at-or-above inflationary impact and finished the yearwith no more than a one-per-cent rate spike.Nationally, rates fell by about one per cent.And, while demand levels are stronger todaythan they were in advance of the economicdownturn, the industry has struggled to get itspricing back.

Consumers and operators bear equal responsi-

bility for this state of affairs. In the larger mar-kets, customers are resistant to the whiff of risingrates. And there continues to be a lack of confi-dence among operators with regard to demand-ing higher prices. “It’s a mindset,” says Stanford.“There were concerns from the industry’s per-spective that the demand levels weren’t going tobe in place. So even when the demand wasthere, [operators] were hesitant to make a move.”

RevPAR, meanwhile, climbed by just 1.5 percent last year, failing to meet expectations thatput it closer to four per cent. As this measure ispurely a function of occupancy and ADR ithighlighted the truth: last year’s flaggingRevPAR was all about rate.

“The challenge of 2011 has been one of rate,”confirms Gopal Rao, vice-president of Sales andMarketing, IHG, Canada. As an industry, he says,this element is still very much in recovery. Buthe’s hopeful. “Rates always lag occupancy in ourbusiness. We know it will happen — it’s just thatwe’d have liked for it to have happened sooner.”

THE OCCUPY MOVEMENT // The 2011 recoverystory has been largely predicated on occupancy.For many existing hotels, enhanced occupancywas the direct result of constrained supply. Instronger economic times, a two-per-cent to 2.5-per-cent expansion in supply is a reasonable ex-pectation. But the Canadian hotel scene hasbeen relatively muted on this metric lately. And2011 was no different, tracking just 1.5 per cent.It’s about where the economic performance ofthe industry sits today, says Stanford, who pre-dicts a one-per-cent supply hike for 2012. “Withbottom lines not recovering, the economic via-bility of projects is tougher, too, and so youdon’t see as much supply,” he says. “And banks,

THE TOP 50

I L L U S T R A T I O N B Y A D R I A N L U B B E R S

While 2011 wasn’t the worst of times, it wasn’t the best of times,either. It was a kind of non-descriptyear — a clever student who performed admirably, but neverquite reached his potential.


with existing hotels on the balance sheet that aren’t per-forming as well as before, are more cautious [about] lend-ing to new development.”

But Stanford is less concerned about the shrinking sup-ply levels. It’s where we are in the cycle, he shrugs. Lendersand developers are slowing down the level of new productcoming into the market — and that’s a good thing. “We’vecome through some erosion in performance, so letting thesupply-demand balance catch up is a very positive devel-opment.” Rao agrees the anticipated shift will spawn otherconsequences. “When demand grows and supply doesn’tgrow at the same pace, rates will eventually rise.”

THE GOOD NEWS // Despite the challenges, several operatorsposted impressive numbers and introduced long lists ofthoughtful service improvements, thereby commandingHotelier’s Top 50 Report. The Four Seasons, with 86 unitsand estimated sales of $4 billion in 2011 sales — helmedby Katie Taylor, president and CEO — was the top per-former. It introduced a 15-minute room-service menu,added a resort in Morocco and opened new units in theU.S., including Baltimore. The company is poised tolaunch its highly anticipated Toronto property this fall.The 55-storey Yorkville property, and its 259 five-star guest-rooms (including 42 luxury suites) is highly anticipated.

Fairmont Hotels and Resorts placed second on the report,with sales estimated at $3.5 billion. In 2011, the companyunveiled ambitious plans to increase the portfolio by 50

per cent through 2016 (largely outside of the NorthAmerican market). “We saw a rebound in 2011,” saysMike Taylor, director of Public Relations at Fairmont.The leisure side of the market had long been healthy, hesays, but business travel — a key segment for Fairmont —spiked 8.1 per cent in volume last year. Taylor points toparticular improvements in programming to explain Fair-mont’s progress. Baby boomers and their disposable in-come means they’re able to travel and keen to sustain anactive, healthy lifestyle away from home. The FairmontFit program, which provides loyalty members with work-out garb and complimentary BMW bicycles reflects thattrend. And, last year, the company also rolled out an ex-tension of its lifestyle cuisine program, which is focusedon sustainable fresh ingredients and offers customizedmenus. Guests can now modify their dining needs accord-ing to dietary and health-related considerations, such asveganism, gluten intolerance and macrobiotic preferences.

At number three, Westmont’s sales slipped from $1.4billion to $900 million last year, but the company shedseveral presumably non-performing properties, so the truthlikely belies appearances. Meanwhile, Starwood enjoyedrecord growth worldwide last year, swelling from $869 mil-lion to $877 million. In Canada, it added two new hotelsand opened its 60th unit (Sheraton Red Deer). It finishedin the top five on the report for the first time, growingfrom $673 million to $698 million with 160 properties.

IHG, which made a choice to beef up its sales force by25 per cent in the thick of the downturn, also hada fairly stellar year, with Canadian sales of $678 million, upfrom $673 million in 2010. Not insignificantly, it also re-launched more than 3,200 Holiday Inns globally.

And the list goes on. Best Western unveiled its “de-scriptors program,” giving it new segments to highlight;Choice opened 17 new hotels in 2011, including fivenew-build properties; and Sandman Inns acquired SuttonPlace Hotels, inviting curious onlookers to regard the fu-ture for the once small company, with properties at thelower end of the scale, now scratching out new turf in themid-luxury arena.

THE POWER OF BUSINESS TRAVEL // When it comes to tech-nology, many of the leaders are striving to be responsive toguests’ increased expectations. For example, Fairmont’s cor-porate website now displays multilingual content to supportgrowth in new markets; a newly released app allows cus-tomers to check in and browse rates from their mobile de-vices; and online check-in streamlines guest service. “Buthigh-speed Internet and wireless access continue to be thetop technology demand,” says Taylor. That’s why everyFairmont destination worldwide provides guests free high-speed Internet in their room.

IHG credits healthy business travel for a successful year.IHG’s Rao says the uncertain global economy notwith-standing, there really hasn’t been a slowdown of corporatetravel within the Americas. He dismisses naysayers whosuggest high unemployment rates tell a different story,

MASTERING SUCCESS

While other hotel companies struggled to survive the past year, Marriott Hotelsof Canada was busy opening six new properties. Posting 2011 sales of $598.5 million, based on 66 units across the country, the operator of such brands asCourtyard by Marriott, Fairfield Inns and Springhill Suites, to name but a few, grewits sales by $35.9 million, the highest dollar increase on this year’s Top 50 Report.

Among the company’s newest ventures are the Ritz-Carlton in Toronto,which opened to much hype last summer, the Spring Hill Suites in Vaughan,Ont., the Courtyard Marriott West in Edmonton, the Fairfield Inn and Suites,Winnipeg and the Fairfield Inn and Suites in Mississauga, Ont. The company alsoconverted a Sheraton in Niagara to the Niagara Falls Marriott.

“Our growth in 2011 can be attributed to RevPAR growth with our existing prop-erties and the new openings,” explains Manlio Marescotti, vice-president, LodgingDevelopment, Marriott Hotels of Canada, adding RevPAR growth at existing hotelswas driven primarily by increased corporate travel — both corporate and transient.

“We had a good year in 2011, no question,” echoes Scott Allison, vice-presi-dent, Canadian Operations for Marriott Hotels of Canada. The company entered2011 with the strength of significant improvements. Given that an increasingnumber of corporate warriors travel with tablets, the importance of having a wired connection in guestrooms was quickly overshadowed by the need forwireless. As a result, complimentary in-room wireless service is now availableacross the Marriott brand.

Marescotti is confident growth will continue, especially now that business is bouncing back. “We will see an even greater increase to our portfolio. We’vealready opened four hotels this year: Courtyard and Residence Inn at CalgaryAirport, Courtyard in Ottawa East and the Ritz-Carlton in Montreal,” which isnow a mixed-use property after being closed for more than two years. Theother three hotels are new-builds. “We expect to open at least another six byyear-end,” boasts Marescotti. — Rosanna Caira

The World’s Largest Hotel Chain®

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pointing out that business travel wouldn’tinclude the type of people who are un-employed.

ON THE HORIZON // With the year halfover, predictions for 2012 remain cau-tiously optimistic. Certainly the firstquarter has seen strong performance ona range of measures. In Western Cana-da, where growth has been better thanin other parts of the country thanks tothe resource sector in Saskatchewanand Alberta, rates were up three percent by the end of April, and demandlevels are trending in excess of that.And, while Atlantic Canada is stillstruggling, Central Canada has seen atwo-per-cent increase in rate and aone-point surge — approximately — inoccupancy in the same period, explainsStanford. He predicts demand will riseby about 2.5 per cent in 2012, andrates will follow at least on a nationallevel, at the same pace. If the industrycan pull that off, he says, occupancyshould grow by one per cent in 2012,and RevPAR will increase in the rangeof four per cent. The industry’s bottomline, Stanford forecasts, will grow byabout six per cent, nationally.

Supply levels should signal the up-swing portion of the cycle, predicts Rao.“Right now, the market is awash withmoney and is really in the mood forfinding good deals,” he says. “There’s noquestion the economic chaos in Europeposes a threat to our business,” saysScott Allison, vice-president of Canadi-an Operations for Marriott Hotels ofCanada, whose firm is on track to opensix to 10 new units in 2012. “If thingscontinue as they’ve been over the lastlittle while, we’ll see continued growthin the hotel industry.” �

OPPORTUNITY KNOCKS

Typically Canadian hoteliers have a reputation for being cautious in theirapproach to business. Despite a shaky economy O’Neill Hotels and Resorts surgedahead in 2011. The company grew 52.8 per cent year over year.

“In Canada, we added a resort on Vancouver Island that its bank had fore-closed on. In the U.S., we added three hotels we purchased — with our equity part-ners Sunstone Realty Advisors — due to our perception that values had fallen dra-matically since 2008, and that, once hotel fundamentals started improving again,values should reach their 2007 levels once again by 2015,” says Rob O’Neill, presi-dent and CEO of O’Neill Hotels & Resorts.

Clearly, the company’s actions have been strategic in nature. “We bought atprices we felt had some attractive upside in the near future,” admits O’Neill, who

runs the company along with his brother, Rob. “Combined with this, we also see alow level of new hotel supply coming into North America over the next few years.”

While acquisitions will be limited to the U.S. market, the company is activelylooking to grow the management side of its business in Canada. “To that end, weare currently working on some very interesting opportunities. However, it’s ourdesire to stay at a small-medium size, regionally focused, for the time being.”

O’Neill and his peers now have another challenge to overcome. “[There’s] lackof growth in ADR, and a lack of confidence by some of my fellow hoteliers tocharge the appropriate rates to cover costs and provide a reasonable ROI for hotelowners,” he says. The hotelier believes “rate growth hasn’t kept up with theincrease in expenses, and, he says, “it’s in the industry’s best interest to charge anappropriate amount for the services we provide.” As the affable hotelier says,“That will allow hotel owners a chance to re-invest in their product and keep it intop condition. In that case, everyone wins ... including the guest.” — Rosanna Caira

Join our Family Today!Full House Franchise Systems Limited is dedicated to the performance, quality and growth of our brands. Howard Johnson is one of the world’s most recognized mid-priced hotel brands. Trusted around the globe, its brand has extraordinary reach and enduring strength. Knights Inn is known for quality and economy by travellers looking for cleanliness, value and friendly hospitality. The brand attracts value-conscious families, seniors and mid-level business travelers throughout Canada and the US. With our brands, you receive access to our resources and programs including:• Wyndham Rewards® loyalty program • Rate & inventory management strategies • Canadian franchise support • Online & property direct training services • Regional & local marketing tools • National marketing programs • Electronic guest satisfaction surveys • Property operation reviews • Preferred Alliance Group’s purchasing power. Find out how you can become part of the Full House Franchise Systems Limited family by filling out an online franchise application at:

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We see a world of opportunity everywhere we look. With 70 properties and a robust pipeline of over 25 hotels, our Canadian portfolio continues to grow. Opportunities exist for owners and franchisees to enter Canadian markets with exciting brands, including Autograph Collection Hotels and TownePlace Suites.

With more than 3,700 properties worldwide and the broadest portfolio in lodging, Marriott is the right choice for travelers and the right choice for your next project. Learn more about the many opportunities that Marriott International has to o�er.

Visit MarriottDevelopment.com or call MichaelBeckley (905-366-5230) or Manlio Marescotti (905-366-5240).

A World of Opportunity


* Denotes Estimate ‡ Canadian-owned company whose operations outside Canada are reflected in revenues and units

Business Operations

1 1 Four Seasons Hotels 86 *‡$4,008.8 $3,892.0and ResortsToronto, Ont.

2 2 Fairmont Raffles 99 *$3,500.0 $3,000.0Hotels InternationalToronto, Ont.

3 3 Westmont Hospitality 167 $900.0 $1,400.00GroupMississauga, Ont.

4 4 Starwood Hotels & 60 $877.0 $869.0Resorts Worldwide, Inc.Stamford, CT.

5 6 IHG 160 $698.0 $673.0Mississauga, Ont.

6 5 Wyndham Hotel 476 $694.0 $684.3GroupParsippany, N.J.

7 7 Marriott Hotels of Canada 66 $598.6 $562.6Mississauga, Ont.

8 8 Best Western 198 $558.5 $550.0International Mississauga, Ont.

9 8 Delta Hotels & Resorts 42 $536.0 $550.0Toronto, Ont.

10 9 Hilton Worldwide, Inc. 84 $520.0 $483.2McLean, Va.

11 10 Choice Hotels 303 $458.0 $435.0Canada Inc.Mississauga, Ont.

A private corporation that is the world’s leading operator of luxury hotels, with a portfolio of 86 hotels and resort propertiesworldwide, including three in Canada. In 2012, the company plansto open properties in Toronto, Baku, Guangzhou, Shanghai Phdongand St. Petersburg.

A private company that is the owner/operator of 99 luxury hotelsand resorts worldwide under the Fairmont Hotels & Resorts,Raffles Hotels & Resorts and Swissôtel Hotels & Resorts brands.The company plans to open 12 new properties this year. (Totals reflect revenues under management)

A fully integrated hospitality company involved in the manage-ment, franchising and ownership of hotel brands, includingHoliday Inns, Comfort Inns, Radisson, Delta, Hilton, Hilton GardenInn, Homewood Suites, Quality Suites and Travelodge. The companyoperates 167 hotels in Canada.

A publicly traded company that owns, operates and franchises 60hotels in Canada under the Sheraton, Westin, Four Points bySheraton, Le Méridien, St. Regis, The Luxury Collection, W Hotels,Aloft and Element brands as well as Starwood VacationOwnership, Inc. In 2012/2013, Starwood plans to open two newhotels in Canada, and 78 international units.

A publicly traded company with 160 hotels in Canada under theInterContinental Hotels & Resorts, Crowne Plaza Hotels andResorts, Holiday Inn hotels and Holiday Inn Express hotels,Candlewood Suites, Staybridge Suites and Hotel Indigo in Canada.The company launched two new brands in 2012, including EvenHotels, and Hualuxe Hotels & Resorts, and plans to open 33 newunits in Canada.

A public company with 476 hotels in Canada and 7,205 hotelsworldwide including Days Inn, Howard Johnson, Knights Inn,Ramada, Super 8, Travelodge, Wingate by Wyndham and WyndhamHotels and Resorts.

A public company that operates 66 hotels across the country. In2011 the company opened six hotels in Niagara Falls, Ont., Toronto,Edmonton, Winnipeg, Mississauga, Ont. and Vaughan, Ont. In thenext year, Marriott plans to open more than 20 units in Canada.

A private company that operates 198 Best Western propertiesacross Canada. In 2012/2013 Best Western plans to open 35 newhotels in Canada and 293 globally.

Delta Hotels is a private management and franchise company thatmanages 42 hotels and resorts across Canada. The company iscurrently undergoing extensive renovations.

A privately held company that operates 84 hotels across Canadaand 3,759 worldwide. The company plans to open 26 new Hiltonbranded hotels in Canada.

A private company operating 303 properties across Canadaincluding Comfort, Comfort Suites, Quality, Sleep Inns, Clarion,Econo Lodge and Rodeway Inn and Ascend Collection. The company opened 17 new hotels in Canada in 2011, including fivenew builds. In 2012, Choice plans to open eight hotels.

Rank Company Units Revenue 2011 Revenue 2010’12 ’11 2011 (millions) (millions)

THE TOP 50 � 2012|| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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Business Operations

12 - Oxford Properties 7 $333.0 —Toronto, Ont.

13 11 Atlific Hotels 49 $292.0 $280.0Montreal, Que.

14 13 Coast Hotels & Resorts 43 $214.6 $208.3Vancouver, B.C.

15 12 SilverBirch Hotels & 21 $200.0 $235.0Resorts Vancouver, B.C.

16 16 Superior Lodging Corp. 136 $178.0 $183.0Calgary, Alta.

17 19 Fortis Properties 22 $164.2 $159.7Corporation

18 17 Sandman Hotel Group 45 $164.0 $166.0Vancouver, B.C.

19 18 Pacrim Hospitality 45 $161.5 $162.0Services Inc.Bedford, N.S.

20 15 Carlson Rezidor 31 *$159.5 *$192.0Hotel GroupMinneapolis, Minn.

21 20 Days Inns - Canada 88 $153.1 $144.3Toronto, Ont.

22 21 Accor Canada Inc. 28 $114.6 $104.6Mississauga, Ont.

Oxford Properties is the owner and operator of seven propertiesincluding six Fairmont Hotels & Resorts and the InterContinentalHotel, Toronto.

A privately owned hotel-management company franchisingvarious hotel brands with 49 units in Canada including HolidayInn, Holiday Inn Express, Crowne Plaza, Renaissance, Marriott,Courtyard by Marriott, Residence Inn by Marriott, Ramada, QualityInns and a collection of independent hotels and resorts. The company plans to open six hotels in 2012.

A private company that owns, manages and franchises 43 proper-ties, including 31 locations in Canada and 12 worldwide. In 2011 thecompany opened a new property in Kamloops, B.C. The companyplans to add two new hotels in Canada and two international unitsin 2012.

A privately owned company that manages 21 independent andbranded properties in Canada, including Radisson, Crowne Plaza,Quality, Best Western, Ramada and Hilton. The company recentlysigned three new franchise agreements with MarriottInternational.

A privately held company that owns and franchises 136 Super 8Canada and Wingate by Wyndham hotels in Canada. The companyplans to open 25 new properties in Canada in 2012.

A private company that owns and operates 22 hotels in Canadaunder various brands, with 18 franchised units and four indepen-dent brands. The company recently purchased the Hilton SuitesWinnipeg Airport, and began construction on Fortis Place in St.John’s, Nfld.

A privately held company owned by Northland PropertiesCorporation with 45 hotels in Canada and two international loca-tions. Last year Sandman acquired Sutton Place Hotels inVancouver and Edmonton. In 2012, the company plans to open 14properties in Canada.

A privately owned company that operates 45 hotels. Pacrim is theexclusive management company for properties owned byHolloway Lodging REIT.

A privately owned company that operates 31 properties in Canadaand 1,076 worldwide including Radisson Blu, Radisson, Park Plaza,Park Inn by Radisson, Country Inns & Suites By Carlson and HotelMissoni. In 2012 the company plans to open six new hotels in Canada.

A private company that is a division of Realstar Hotel ServicesCorp. Days Inns Canada has 88 hotels in Canada. Last year itopened units in High Prairie, Alta., Surrey, B.C., and Toronto, andplans to open hotels in Chetwynd, Golden, and Kamloops, B.C., andCalgary in 2012.

A private corporation that is a subsidiary of Accor S.A. that oper-ates 28 hotels in Canada under the Novotel, Motel 6 and Studio 6brands. In 2011, the company opened two Motel 6 units in Brandonand Headingley, Man. In 2012, it plans to open three new proper-ties in Canada.


hoteliermagazine.com20 JULY/AUGUST 2012 HOTELIER

THE TOP 50 � 2012|| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

�

STRENGTH TO BUILD ONWhen you give guests a great experience, they return again and again. Our nine distinct lifestyle brands, powered by a global booking platform and the award-winning Starwood Preferred Guest® loyalty program, enable us to capture the hearts and devotion of our guests like no other in the industry – giving you a competitive advantage to build on.

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HOTELS FROM LEFT FOUR POINTS BY SHERATON CALGARY AIRPORT, CANADA // ALOFT MONTREAL AIRPORT, CANADA THE WESTIN WALL CENTRE, VANCOUVER AIRPORT, CANADA

©2012 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Preferred Guest, Aloft, Element, Four Points, Le Méridien, Sheraton, St. Regis, The Luxury Collection, W, Westin and their logos are the trademarks of Starwood Hotels & Resorts Worldwide, Inc., or its af�liates.

4:02 PM


Business Operations

23 22 Executive Hotels 16 ‡$105.0 $87.8& ResortsVancouver, B.C.

24 14 Royal Host Inc. 31 $89.6 $92.3Halifax, N.S.

25 23 Lakeview Management Inc. 42 ‡$88.2 $85.6Winnipeg, Man.

26 24 Holloway Lodging REIT 17 ‡$78.3 $73.4Bedford, N.S.

27 27 Easton’s Group 15 $78.3 $60.2of Hotels Inc.Markham, Ont.

28 26 Crescent Hotels 13 $73.0 $70.0& Resorts Toronto, Ont.

29 34 O’Neill Hotels & Resorts 7 ‡$69.6 $45.7Vancouver, B.C.

30 25 Skyline Hotels & Resorts 6 $57.7 $71.3Toronto, Ont.

31 28 Gouverneur Inc. 11 $57.0 $57.0Montreal, Que.

32 30 Full House Franchise 91 $56.3 $52.0Systems LimitedOakville, Ont.

33 37 Groupe Germain Inc. 7 $54.9 $39.6Quebec City, Que.

34 32 Genesis Hospitality Inc. 10 $54.0 $50.0Brandon, Man.

A privately held company that owns eight units in Canada, andfranchises five units in Canada. Last year the company added theHotel Le Soleil in Vancouver and announced development of a newhotel in New York. The company plans to add one unit in Canadanext year.

A publicly traded company, which owns, franchises and operates31 units across Canada, under the Travelodge, Super 8, HolidayInn, Hilton, and Country Inns & Suites brands. The company alsohas the Travelodge Canada franchise business, currently com-prised of more than 90 hotels.

A private company that manages 41 properties in Canada and oneinternational property under the brands Lakeview Inns and Suites,with 22 units in total, 14 of which are owned by Lakeview HotelREIT, seven of which are owned by LMI and one owned by an inde-pendent operator. The company has one hotel under constructionat the Winnipeg International Airport.

A Real Estate Investment Trust company that operates 17 proper-ties in Canada and one U.S. property. Brands include Best Western,Holiday Inn, Radisson, Super 8 and Pomeroy.

A privately owned company that owns and operates 15 hotelsunder the Quality Inn, Courtyard by Marriott, Hilton Garden Inn,Residence Inn by Marriott, Townplace Suites and Fairfield Inn &Suites brands.

A privately owned company that owns, operates and manages 13units in Canada under various brands affiliated with Marriott, IHG,Hyatt, Hilton, Starwood and Wyndham Worldwide.

A privately held company that manages four properties acrossCanada and three outside of Canada under the Westin and Coastbrands. The company is undergoing renovation of three properties.

A privately owned company that owns and operates five units inCanada, including Horseshoe Resort, Deerhurst Resort, KingEdward Hotel, Cosmopolitan Hotel and Pantages Hotel, with oneunit in the U.S.

A privately owned corporation that owns, manages, and is thefranchisor of 11 hotels, including Gouverneur and AubergeGouverneur.

A privately owned company that is a subsidiary of WyndhamWorldwide Hotel Group that operates 91 hotels in Canada underthe Howard Johnson Canada and Knights Inn brands. The com-pany plans to add four to six units under each brand per year.

A privately owned company that owns seven properties inCanada, with plans to open one hotel in 2012.

A privately owned company that owns 10 hotels in Canada.Recently the company acquired four hotels in the Greater TorontoArea, including the Marriott Courtyard Hamilton, Ont., the MarriottCourtyard Creekbank in Mississauga, Ont., the Residence Inn inVaughan, Ont., and Residence Inn Creekbank in Mississauga, Ont.The company plans to open one hotel in 2012.


hoteliermagazine.com22 JULY/AUGUST 2012 HOTELIER

THE TOP 50 � 2012|| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

�

Alberta/VancouverGraham Hall

[email protected]

WinnipegBrent Barkman204-667-3782

[email protected]

Montreal/TorontoChristine Pella416-720-2907

[email protected]

Canadian Plants to Service You:


Business Operations

35 — Airline Hotels, 7 $52.9 —Saskatchewan, Sask.

36 29 Concord Hospitality 11 $52.4 $54.9Enterprises CompanyRaleigh, N.C.

37 — Pomeroy Inn & Suites Inc., 13 $50.0 —Grand Prairie, Alta.

38 35 Northampton Group Inc. 16 $49.8 $45.1Mississauga, Ont.

39 36 Stagewest Hospitality 8 $48.5 $46.9Calgary, Alta.

A privately owned company that owns seven properties inCanada. The company recently purchased three Country Inn &Suites properties in Regina, Sask. and Winnipeg, and plans toopen one hotel in 2012.

A privately owned company that develops, owns, manages andfranchises 11 hotels in Canada.

A privately owned company that owns and manages 13 propertiesin Canada, and one franchised property. In 2012, the companyplans to open three new hotels.

A publicly owned hotel management company, Northampton oper-ates 15 hotels in Canada and one international location. In 2012,the company plans to add one unit in Canada.

A family owned company that is a subsidiary of MayfieldInvestments Inc. and owns eight properties in Canada. In the pastyear, the company completed a 112-room hotel in Camrose, Alta.


THE TOP 50 � 2012|| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

�

With 133 Super 8 Hotels to its credit, Superior Lodging Corp. is a true measure of growth and success in Canada’s lodging industry.

And we’re growing success again. As the Canadian Master Franchisor in partnership with MasterBUILT® Hotels, Superior Lodging Corp. is bringing exciting new investment opportunities to the economy segment of the Canadian hotel industry with the introduction of Microtel Inns & Suites by Wyndham. This award-winning brand of all newly constructed, interior-corridor economy hotels offers a new standard of comfort, accessibility, convenience and reasonable rates to value-conscious Canadian travellers and great investment opportunities for savvy hoteliers and investors.

For owner-operators, investors or property holding companies alike, Superior Lodging Corp. offers over 20 years of consistent, award-winning success; extensive hotel investment experience; and access to a powerful real estate and finance network.

Let growth and success be your measures. Choose Superior Lodging Corp.

Contact Marc Staniloff, president and CEO today.

Superior Lodging Corp.200, 1060 7th Street SWCalgary, AB T2R 0C4, CanadaP: 403.543.8800F: 403.543.8803superiorlodgingcorp.com

Growth measures success.Success measures growth.

Super 8 Shawnessy, Calgary, AB Super 8 Kapuskasing, ON Microtel Parry Sound, ON

We are an industry leader in the global hotel market. With a portfolio of award-winning brands, combined with our best-in-class systems, IHG can help you maximize your growth potential.

Contact our Development Team to learn how you can be a part of our success.

Call 866.933.8356, visit IHG.com/development or email [email protected].

We are an industry leader in the global hotel market. With a portfolio of award-winning brands, combined with our best-in-class systems, IHG can help you maximize your growth potential.

Contact our Development Team to learn how you can be a part of our success.

Call 866.933.8356, visit IHG.com/development or email [email protected].

Your Next Growth OpportunityYour Next Growth Opportunity

©2012 InterContinental Hotels Group. All rights reserved. Most hotels are independently owned and operated.

3:44 PM


Business Operations

40 31 Rosdev Hospitality 7 $48.3 $50.5Montreal, Que.

41 — Sawridge Inns & 5 $46.0 —Conference Centres,Edmonton, Alta.

42 38 Urgo Hotels LP 7 $40.2 $38.4Bethesda, Md.

43 39 New Castle Hotels 6 $39.1 $38.2& Resorts Shelton, Conn.

A private company which is a subsidiary of Rosdev Group, whichowns, develops, and manages seven properties worldwide, includ-ing four properties in Canada. Recently the company upgradedone hotel to a Crowne Plaza.

A privately held company that owns five properties in Canada. Thecompany has recently completed renovations in Peace River, FortMcMurray and Edmonton, Alta.

A privately owned company that owns, operates and/or manages28 hotels worldwide, including seven in Canada. Urgo Hotelsplans to add an additional six units to its portfolio, including oneunit in Canada.

A privately owned company that owns, develops, and manages sixproperties in Canada, and 18 worldwide under the Marriott, Hilton,Westin and Sheraton brands as well as independent properties.The company recently acquired the Algonquin Hotel in St.Andrews, N.B., which it plans to renovate and convert to a MarriottAutograph collection hotel. In 2012, the company plans to openeight new properties including two in Canada.


THE TOP 50 � 2012|| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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Business Operations

44 — Manga Hotels Group, 8 ‡$35.0 —Mississauga, Ont.

45 — KSD Enterprises Ltd., 2 $34.3 $19.3Toronto, Ont.

46 — Loews Hotels, 2 $33.6 $34.2New York, N.Y.

46 40 Liverton Hotels 2 $33.6 $35.0International Inc. Toronto, Ont.

47 — Palm Holdings, 9 ‡$32.0 —Toronto, Ont.

A privately owned company that owns and develops seven proper-ties in Canada, and one outside of Canada. In 2012, the companyplans to add one unit in Canada and one international unit.

A privately owned hotel company incorporated in Canada andowned by publicly listed companies in Malaysia and Hong Kong. Thecompany currently has two units in Canada, including one owned byan associated company (Sheraton Ottawa).

A subsidiary of Loews Corporation, Loews Hotels owns two unitsin Canada, and 16 international locations. Currently many units areundergoing renovations with plans to develop new properties.

A privately owned company that owns and operates two luxuryMetropolitan Hotel properties in Toronto and Vancouver.

A privately owned company that owns or franchises three unitsin Canada and six international units. In 2012 the company islooking to grow its Ontario portfolio and open three new proper-ties in Canada.


THE TOP 50 � 2012|| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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Business Operations

48 48 One King West Hotel 1 $22.8 $14.7 Toronto, Ont.

49 44 Brookstreet Hotel 1 $20.5 $18.1CorporationOttawa, Ont.

50 47 Realstar 15 $18.5 $15.5Toronto, Ont.

A privately owned company that operates One King West Hoteland Residences, a mixed-use hotel development project featuring575 extended-stay suites.

A division of the Wesley Clover International Corporation with onehotel in Canada and two international locations. The companyplans to expand by adding one hotel in Canada and two interna-tional locations within the next year.

A privately owned company that is the franchisor of Motel 6 andStudio 6 properties in Canada. Currently, Realstar HospitalityCorp. has 15 properties in Canada. It plan to open two new Motel6 properties in Saskatchewan in 2012.


THE TOP 50 � 2012|| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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In the past fi ve years, Hilton Worldwide has opened 1,198 new hotels around the world, bringing us to more than 3,800 hotels in 88 countries today.* In Canada, we have 84 hotels open from coast to coast with a growing pipeline of over 32 signed projects. Impressive growth, made possible by our ability to adapt to the world’s increasingly complex business environments. As a result, we’ve developed a wealth of experience creating and operating the most award-winning portfolio of hotels in the industry. Not a bad workout for a 93-year-old.

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*From January 2007 to January 2011 © 2012 Hilton Worldwide

STAYING AGILE IS CRITICAL. FORTUNATELY, OPENING 1,198 NEW* HOTELS HAS KEPT US IN SHAPE.

STAY AHEAD


PHOTO

GRAPHY BY PAUL W

AGTO

UIC

Z

� HawksworthRestaurant, with

Rodney Graham art-

work, at Vancouver’s

Rosewood Hotel

Georgia (above);

Ritz-Carlton,

Montreal (right);

chef David

Hawksworth plating

at the pass

� Maison Boulud’s dining room at the Ritz-

Carlton Hotel, Montreal

(left); Executive chef Tyler

Shedden (with sauce pan),

Boulud’s new hire at Café

Boulud and Bar, The Four

Seasons Hotel, Toronto


The scene is different today with hotels hosting savvy cus-tomers who like cutting-edge design augmented by approach-able food. Now it’s restaurateurs rather than hotel GMs mak-ing decisions and creating destination dining. “Hotels are nolonger places to go and sleep and then go out in the city,” ex-plains Rob Gentile, executive chef of Toronto’s Buca Osteriaand Enoteca, who’s launching a second Buca adjacent to theFour Seasons Hotel, in Toronto. “People want to come to ahotel and be entertained in the hotel, eat in the hotel, drinkin the hotel. It’s become more of an entertainment complex.”It’s a delicate business, but these days, it’s about keeping guestson your premises and giving them a top-notch culinary experi-ence. Hotelier talked with four restaurant operators to learnabout the world of hotel restaurants.

� Café Boulud and Bar, Four Seasons Hotel, Toronto“There’s nothing more terrible than a hotel restaurant,” beginsDaniel Boulud of the N.Y.-based Dinex Group. “Some of themdo have charm, as long as the food is still exciting and theclientele is renewed — because there is nothing worse than tosee a hotel that’s 60 years old and the clientele is 90 years old.”

Boulud knows about successful restaurants; he has severalaround the world and just unwrapped Maison Boulud at thefamed Ritz-Carlton, Montreal. It borrows style, decor and am-biance from the chef’s American restos. “It’s a restaurant in ahotel run and managed by a chef like me. We are in partner-ship to fully manage our brand — the employees are employeesof the hotel, of course,” the chef explains.

Boulud believes today’s guests are looking for a hotel restau-rant with something different, yet classical. “They want arestaurant with a DNA — doesn’t matter if it’s Italian, Japan-ese, French, American or Canadian, the DNA today comesfrom the chef, from the cuisine, from a style of cooking and astyle of service — an expectation,” says Boulud, whose culi-nary genes are evident in his classy, modern French food. Thenew 200-seat Café Boulud and Bar at the Four Seasons will fea-ture the chef’s four signature menus: la tradition, classic Frenchcuisine; la saison, seasonal delicacies; le potager, the vegetablegarden menu, and le voyage, named after various world cuisines.

The business deal with Four Seasons — set to open inToronto’s Yorkville neighbourhood in October — is a hybridarrangement, with the hotel providing financial backing. “Weare in business with the hotel and the hotel is the investor andthe operator on a day-to-day [basis],” Boulud explains. “And

TRENDS

THE NEW NORMALIt’s out with the dull hotel restaurants and in with chef-driven dining destinations BY ADRIAN BELL

PICTURE IT.A massive dining roomwith rows of banquet tables, each one identicalto the next — a sea ofwhite tablecloths beforeyou, ornate chandeliersdangling from the ceilingperfectly positioned overevery table, cutlery placedexactly straight. This iswhere symmetry was in-vented. Along comes thewaiter, he looks like some-one out of a Coen brothersmovie; slicked-back hair,pencil moustache, blackbow tie, jacket withepaulettes, glossy black,brogues and tight-fitting,white, cotton gloves.Cradling a stainless steelcloche, he reveals yourorder. A slice of pâté en-cased in aspic. It wobbleslike jelly at a children’sparty as he slides the platein front of you.


we are co-managing with them. We are lending manage-ment as well, and we are making sure the staff is trainedby us, supervised by us, but at the same time we work to-gether with the hotel to make sure we provide the servicethe hotel needs.”

Carrying on with tradition in a contemporary way isBoulud’s secret to success. “It’s not casual-dining, but it’snot fine-dining. It’s in between … it’s fun dining,” hesays. “That’s how the hotel approaches their brand. Theywant to show vitality and that it’s really with its time,” hesays. The entrepreneur is confident the relationship willbe prosperous. “[It’s] a seamless fit, they want excellencein service, in fine-dining and they want to make sure theservice is appropriate to what [guests] expect at a hotel

today.” And, that’s something Boulud can deliver.

� La Coupole Restaurant, Le Crystal Hôtel and Spa, Montreal“The concept is [said] to be the only one in North America,”says Gino Mourin of his resto inside Le Crystal Hôtel &Spa, Montreal, which is based on the deluxe brasseriesfound in Paris, France.

Fusing Italian and French, the Coupole menu is light.“There’s not too much butter and bacon — it’s more oliveoil refined with different spices and flavours,” Mourinsays. The restaurant features a prix-fixe, discovery menu($40), with dishes such as balsamic-caramelized Cornishhen with vegetables and Israeli couscous as well as shred-ded duck with leeks, grapes, spinach and parsnip with ablack cherry sauce. “[Introducing] discovery, becomingmore humble ... that brought success,” he says, of therestaurant that’s pulling in $500,000 per month in sales.

The grassroots marketer, who calls himself a “peddler,” says95 per cent of his business is walk-ins. “That’s the average.I’m outperforming say, 30 per cent of some restaurants, butI’m outperformed by big restaurants,” he adds, referring to hisneighbour The Queue de Cheval Steak House and Bar. “Heis doing $9 million a year. That’s enormous. But, according tomy pricing, I’m doing very well. According to his pricing,four times my average check, he’s doing basically the same.”

That success is clear to see at the 155-seat, 6,700-square-Continued on page 36

� La Coupole, in Montreal, bases

it menu style on the

deluxe brasseries

of Paris

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foot, two-storey restaurant, which usually sits one-and-halfseatings at lunch and one at night. Such an accomplish-ment is partly due to the partnerhsip with Le Crystal man-agement. “When they help me, they’re quite amazing …

we have a great relationship.” The property leases space tothe entrepreneur, and business is conducted as a combinedeffort. Together they attract corporate Montrealers, luring10 per cent of hotel guests daily and 25 per cent on week-ends, but there’s more to it than that. “The property is acondo-hotel, so it’s owned by condo [owners]. The buildingbelongs to the condo, and we became renters of the hotelspace and the restaurant,” Mourin explains. The hotel pro-motes me “because I do an event every month, like a wine-maker’s dinner.”

The relationship hasn’t diluted Mourin’s mission. “I’mmaking my own decisions, but the hotel will participate inthe marketing. It’s a joint effort to promote, but they let me[direct] my concept. It’s a very happy and peaceful harmony.”

� Hawksworth Restaurant, Rosewood Hotel Georgia, VancouverDavid Hawksworth dreamed of Hawksworth Restaurantyears before he thought of opening in Vancouver’s RosewoodHotel Georgia. “I was here before the hotel, and it just funni-ly worked out that way,” says the 42-year-old chef of the7,200-square-foot business. “The world went in a weird direc-tion, and we did the deal to put my restaurant in the hotel.”

While there was no mandate from the hotel managementin terms of how to work together, the chef had his ownideas. “I wanted to build a restaurant where people wouldfeel comfortable coming a couple times a week, [where] theprices weren’t outrageous,” he says, of the 80-seat eatery.

Working under a separate lease, but within the confinesof the hotel, Hawksworth’s cuisine is unique. “It’s moderncontemporary Canadian cuisine,” says the European-trained chef. “It’s an ever-evolving menu; it’s very seasonal.Right now we have the 48-hour short-rib, with compressedmelon and black-pepper jam ($17); the roasted sablefishwith a tom yum broth and crispy rice ($26, lunch; $34,dinner); and, at lunchtime, we have a great little spaghettiwith jalapeños, arugula and Dungeness crab ($19, appetiz-er/$26 entrée).”

Partnering with Rosewood Hotel Georgia has proven suc-cessful with guests coming from across the city. “It’s all overthe map; we have lots of people who used to come to thehotel 50 years ago and want to have a look.” Strategically lo-cated in the epicentre of the business district, HawksworthRestaurant attracts suited execs and hockey fans. “Whateverbusiness gets done in Vancouver is [within] a 15-minute ra-dius of here,” says the chef.

The restaurant and bar’s casual yet upscale atmosphere —featuring artwork by Damien Hirst and Rodney Graham —suits the hotel and marries well with the chef’s artistic food.“Our bar is very unique. It’s really cocktail-orientated, there’sno coffee machine, there’s no draft beer or anything like that— it’s primarily focused on phenomenal cocktails. So we havepeople who come and only eat in the bar, and have never satin the restaurant, and they’ve been here maybe 50 times.”

Whether running a standalone restaurant or a hotel-restaurant, it’s clear change is a key driver of success. “Hav-ing a great-looking restaurant is really important, otherwiseyou’re done, it’s not going work,” says Hawksworth. �

BUCA EXPANDSIN TORONTO

Chef Rob Gentile’s schedule is about to intensify. The chefand co-owner of Toronto-based Buca, is preparing toopen a second location nextto Toronto’s new Four SeasonsHotel. “We’re creating a foun-dation to extend the brand.The osteria will be just likethe one we have, but nothing is set in stone,” he says, of the 3,500-square-footrestaurant set to open in October. He’s keen to let the new restaurant groworganically. “When it starts to develop its own soul, that’s when it comestogether nicely.” he says. The design steers the chef’s cuisine. “You don’t cre-ate a menu and then build the space,” he says. What he does know is he willcook authentic Italian food. “We’ll be serving all our signature dishes. All ourpastas will be made from scratch and all the bread, too — it’s all going to befresh, original food.” While Daniel Boulud’s Café Boulud and Bar will be insidethe new Four Seasons Hotel, Gentile’s 70-seat boîte, with chef de cuisine RyanCampbell at the helm, will be freestanding. “There’s two separate buildings onthe property; we’re going to be in the resident’s building. We’re a completelyseparate entity. We don’t have any access to room service or interactive lob-bies,” clarifies Gentile.

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DESIGN


TThe guestroom is an oasis wherehoteliers strive tocreate a home awayfrom home. They aimto please guests withtop-notch bedding,high-thread countlinens, and nature-inspired drapery. Witha range of innovativeguestroom designs, it’s easy to get carriedaway with trends, butone thing is certain:when it comes tobedding, linen anddrapery, classicsophistication,complemented byoutdoor elements and bold accents, is the recipe for successin the new age of hotel design.

COMPILED BY JACKIE SLOAT-SPENCER

ChicMagnetHotelier magazine surveyed hotels and suppliers to learn about the bedding,linen and drapery trends driving guestroom design

Riegel Bedding’s (above)300-thread count stripe

duvet and shams are madefrom 60-per-cent

cotton and 40-per-centpolyester; (right) Wear andtear is top of mind when

choosing hotel linens, andJohnston, S.C.-based Riegel

Linen’s 300-thread countmatt weave sheets —

supplied to Vintage Hotelsin Niagara-on-the-Lake,

Ont., and Caledon, Ont. —are designed with durabilityin mind. Made from 60-per-

cent cotton and 40-per-cent polyester blend, thelinen boasts a cotton-richblend, can withstand fre-quent laundering and isstill soft to the touch.


�

(right) Nothing is more durableand classic than understatedbright white textiles. Garnier-Thiebaut Inc. (GT Linens) anArlington, Va.-based textile

supplier, says its bed-and-bathlinens are popular with its

Toronto-based hotel clients. ItsHouston bed linen contains a300-thread count, Egyptian

cotton and plain satin weave.

(left) Montreal’s Hotel Nelliganexudes a boutique feel with aduvet by Marie l’Oie, a St-Jerome, Que.-based textilespecialist. Its beds are outfit-ted in Canadian supremewhite goose down, with 325-thread count sheets that con-tain a 100 per cent white cot-ton shell. And, given the risingrate of allergen-consciousguests, its bed set is alsoavailable in synthetic, hypo-allergenic material.

(above) Earth tones, complemented by bold add-ons createa balance between nature and city chic at the OpusVancouver. “Our guests want and expect a complete expe-rience that involves creative design elements, combinedwith a feeling of warmth and, most importantly, comfort,”said Nicholas Gandossi, GM, Opus Vancouver; (left) The 152-room W Montreal is designed for a free-spirit. Its “Cozy-”themed guestroom features a dream bed with 350-threadcount Egyptian cotton sheets, a pillow-top mattress, feath-erbed, goose-feather duvet and down-filled pillows. Richblue curtains add depth to the room and a natural, airyelement, while a large drape that can be drawn for privacyreplaces the traditional wall.


(Clockwise from top left) Northern Feather’sHospitality Zen Deluxe Pillows are hypoallergenic,

anti-bacterial and anti-microbial, with a 240-threadcount; local sourcing is paramount, and the

Vancouver-based Opus Vancouver hotel covers itsbeds with 300-thread count linens from Willowest

Linens Inc., a local manufacturer. The sheer curtains,which are unlined and ripple-folded, by Vancouver-

based Westport Manufacturing Co. Ltd. offer theillusion of an open, airy space that beckons the

Vancouver landscape; “The new trend is image-print-ed top sheets and pillows in order to create a fresh

looking bed and yet blend in with the decor of aboutique hotel,” said Ragnar Pedersen, GM of the

Toronto-based Pantages Hotel Toronto Centre.

HM12_1-4Ad_Simmons_OL.indd 1 5/8/12 3:09 PM

For more information:

1-866-232-0222www.k-brolinen.com

K-Bro is Canada's largest laundry andlinen provider to the hospitality industry.Operating in Victoria, Vancouver/Whistler,Edmonton, Calgary, Toronto, Montrealand Quebec City, servicing over 35,000hotel rooms and are a recognized nationalpartner to luxury hotels and resorts.

KBro_QV_Layout 1 12-06-28 10:53 AM Page 1

Guests appreciate quality, and Sysco Guest Supply o�ers the most comprehensive range of quality textiles available in Canada. Our selection of brand name towels and bed linens delivers comfort and durability for every budget and décor. Treat your guests to an extra layer of luxury with plush mattress toppers, comforters and blankets. And be sure to set the right tone for your next event by choosing from our colourful collection of table linen and skirting.

We’re here to help you ensure that every detail of your guests’ experience – from the bed linens to the banquet tables – is consistent with the quality of service you provide. Good things come from Sysco Guest Supply.

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Quality and comfort, it’s in our very fabric.

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(above) GT Linens’ Mistral Bath Towels aremade from 100-per-cent combed cotton and

have a 680-grams-per-square-metre lockstitch;(right) Traditional reigns supreme at the HiltonLac-Leamy, located in Gatineau-Ottawa, Que.,with guestrooms swathed in a classic designscheme complemented by warm, understated

colours. Nothing is more important than agood night’s sleep, so each bed boasts a

Hilton Serenity bed by Serta. Its quilt designand plush top mattress improves circulation

and reduces nighttime restlessness,creating home-inspired comfort.

(above) Resiliency is animportant considerationwhen choosing fabrics forToronto’s Pantages Hotel,which outfits its beds in acotton/polyester blend fromStandard Textile, which with-stands frequent laundering.

Quality Product for your property

Enhance your guest experience whilereducing your carbon footprint andoperating costs.

Gordon R. Williams Corporation provides full turn key scalable energymanagement solutions through inroom automation.

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File Name Trim Size (File) Trim Size (Final) Usage

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alk to any experienced riskconsultant serving theglobal hotel industry, andundoubtedly they’ll tell youstories that would makeany manager nervous.

“In regions where thereare wars, it’s pretty muchan iron camp,” says crimeand risk consultant ChrisMathers of Toronto-based,Chris Mathers Inc. “Everypiece of baggage is x-rayed— metal detectors, armedsoldiers and bomb dogs areeverywhere.”

While these sites may usesecurity technologies andpractices to the nth degree,that won’t cut it in Canadaand the U.S. “Innkeepers aresupposed to be welcoming

people. It’s difficult to wel-come someone if you’re frisk-ing them like a bouncer in anightclub,” Mathers jokes.

Geography plays a hugerole in security planning,says Sean Ahrens, practiceleader for Chicago-basedAon Risk Solutions, a secu-rity consulting and designservice. “North Americanoperations don’t have thesame type of security con-cerns you might see inAfrica. They don’t have a500-member Al Qaedagroup just down the street,”says Ahrens. “Or loose bor-der controls that facilitatethe transfer of weapons.We don’t have the compo-nents that equate to that

type of threat.”However, all hotels are

vulnerable. “Wayward live-stock could be a threat for a hotel located in the coun-try; in a city it could bedrug dealing, robbery ortheft. If your hotel is locat-ed next to an embassy, youhave much bigger threatsand exposure. Put thathotel near a casino, and youhave to start thinking aboutdrunken people getting intofights,” says Ahrens.

The security story onNorth American grounds is about maintaining guest/employee safety in terms offire, theft and assault pre-vention, Mathers says.“The technology used is

OPERATIONS

CHECKING IN JAMES BOND STYLE

Room keys have come a long way since the first pre-punched key cards came on the hotel scene in the 1970s. In recentmonths, developments in near-field communications have moved the guestroom key to guest’s smartphones.

Soon mobile will reach an entirely new level. BMW is partnering with VingCard Elsafe in Dallas, Texas on a technology thatwill soon let drivers of the luxury brand reserve their rooms through the car’s onboard computer system. Once the reservationis made, the system sends a wireless access code so the car keys can serve as your guestroom lock — no check-in required.

SAFEHAVENSHigh security means low anxiety for Canadian hoteliers BY DENISE DEVEAU

T

pretty much the standardstuff: CCTVs, panic alarms,locking systems, room safes,sprinkler systems, notthings like facial recogni-tion and IRIS and finger-print readers, which can bevery intrusive.” The bigthreats to North-Americanoperations are incidentssuch as rapes, thefts, as-

saults and workplace vio-lence, Ahrens notes. Thekey is learning how to con-trol the largest number ofthreats that pose the great-est risk, thereby eliminat-ing vulnerabilities.

The tricky part aboutjustifying a security invest-ment is there’s no measureof success, says Robert

Mercure, GM, of LeChâteau Frontenac in Que-bec City. “In this world, nonews is good news. Whennothing happens, that’swhen you know things aregoing well.”

The biggest challenge ismaking security as seamlessand unobtrusive as possible.“People want it, but whenthey see it they get spooked;but because they don’t seeit, people don’t understandthat it’s a big capital costand requires ongoing in-vestment,” says Mercure.

At the Frontenac, hun-dreds of thousands of dol-lars are spent annually oneverything from audits andemergency preparedness toupgrading systems and stafftraining, Mercure reports.

“Security is constantlyevolving; systems are alwaysbeing tested, and equipment

such as alarm and sprinklersystems, require non-stopupgrades,” Mercure says.“We also work extensivelywith auditing firms to re-view systems and everydayprocedures as well as con-duct drills several times ayear. And you can never re-peat emergency proceduresand safety training enough.It’s part of the orientationfor new hires as well as on-going departmental train-ing,” he says. Additionally,the Emergency Prepared-ness Committee, comprisedof representatives from dif-ferent departments, meetsregularly to review feedbackfrom staff and guests.

Systems maintenance isabsolutely critical in anysecurity plan, asserts Math-ers. “They don’t have to bestate of the art. They justhave to work. If you’re not

THE COST OF FAILURE

Hoteliers know a security breach will cost. But unless they’ve gone through

the drill, few operators understand the far-reaching costs. According to Sean

Ahrens of the Chicago-based Aon Risk Solutions Security Consulting, the fall-

out from a publicized incident — poor word of mouth — can paint a pretty ugly

picture. “There are, of course, direct costs to consider, such as reimbursing

guests for belongings and implementing controls to prevent a [breach in

security] from occurring.” However, this expense can be dwarfed by the soft

costs associated with litigation and/or damage to your brand, especially when

the media gets involved. “In some cases those numbers can be incalculable in

terms of the damage to your reputation and lost revenues,” says Ahrens. “If

it’s a chain operation, you might as well take that number and multiply it by

thousands, because all of a sudden it’s not affecting just one hotel.”

For over three decades VingCard Elsafe has been the leader in hotel security solutions. Today, over 42,000 properties around the globe trust us to provide the most advanced, secure and reliable solutions for electronic locking solutions, energy management and in-room safes. Installed in over 7 million rooms worldwide, our products are designed to meet your needs for efficiency, convenience and peace of mind, with industry-leading technology, sleek designs and user-friendly features for both your staff and guests. With a customer service network that spans 5 continents, we’re here to help…and here to stay. So stay with the leader, Stay Smart – VingCard Elsafe.

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spending money to main-tain systems, then you’llhave liability issues if some-one is assaulted and thecamera is offline.”

An even bigger part ofthe security puzzle is thehuman factor. At the Fron-tenac in Quebec City, forexample, staff training in-cludes sensitizing employeesto note and report unusualbehaviour, such as guestschecking in without lug-gage, paying cash for theirrooms or wandering in areas they shouldn’t.“Every staff person shouldbe trained to become youreyes and ears and be tunedin to what people aredoing,” notes William H.Nesbitt, president of Sec-urity Management ServicesInternational in NewburyPark, Calif. “I always say,what’s better security —

100 cameras or 500 sets ofeyes and ears … or both?”

Alternatively, Nesbitt saysa significant portion of riskcomes from employees, sohoteliers need to be just asconcerned about securingtheir bar, loading areas,

restaurants and gift shop op-erations, not to mentionrooms accessed by mainten-ance and housekeeping per-sonnel. Advanced cameratechnologies, with time anddate stamping, and networkcard systems that allowhoteliers to investigate every

door’s locking system are im-portant, Nesbitt says. Yeteven the best technologiescan benefit from human re-inforcement. “Technologyshould be an extension ofyour security [team]. Anycameras for common areas

should be watched live, forexample, so you can identifysuspicious behaviours and beproactive.”

From the early days ofthe first digital alarm sys-tems, technology was de-signed to minimize staff re-quirements, Ahrens says.

“There have been phenom-enal developments in[areas] like Internet proto-col-based cameras, digitalsafes and electronic keys.But, in reality, they’revalue-adds. Technology isonly one part of a program

that encompasses physical,operational and technicalsecurity,” Ahrens empha-sizes. “The best sensor onthe planet is one that hasthe capability to detectwhen something is notright. And that’s a humanbeing.”�

“ ”TECHNOLOGY IS ONLY ONE PART OF A PROGRAM THAT ENCOMPASSES PHYSICAL, OPERATIONAL AND TECHNICAL SECURITY. THE BEST SENSOR ON THE PLANET IS ONE THAT HAS THE CAPABILITY TO DETECT WHEN SOMETHING IS NOT RIGHT. AND THAT’S A HUMAN BEING

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It may be hard to fath-om, but when it comesto technology there are

pockets of obstinacy in thehotel business. Even thesedays, many hoteliers are re-luctant to offer guests freeWi-Fi or wireless fidelity, asit’s known by its propername. It’s easy to spot ob-stinacy, but it’s often diffi-cult to change, yet thereare plenty of reasons hot-eliers should provide freeWi-Fi to customers.

Firstly, the world is mov-ing at warp speed. Alreadywe’re midway through2012. The Internet is virtu-ally inescapable and manyof us can’t live without it.Sure, providing free webservice in a hotel was onceconsidered a luxury item —a chargeable amenity. Butin recent years the technol-ogy that allows data to beexchanged wirelessly hasbecome a staple. It’s an essential service, which is

expected wherever you go.Remarkably, many hoteliersin the marketplace are stillcharging guests to accessthe Internet. Hotel opera-tors who don’t offer freewireless need to ask them-selves whether it would befair to charge guests a sur-plus for heating, air condi-tioning and water usage.Surely, the answer is a resounding, no. So, whywould you ask a customerto pay for Internet access?“Wi-Fi is essential technol-ogy,” says Renato Alesiani,president of Encinitas,Calif.-based Wave CrestResorts. “Charging for Internet access is pure exploitation of your guest.”

Today’s smartphones andtablets can only access theweb by using a wirelessLocal Area Network. Thebeauty of wireless connec-tivity allows work or plea-sure surfing without peskywires. It’s important to re-

member there’s strong de-mand for free wireless access— not the wired, antiquatedkind of connection.

The job of a good hotelieris to make guests feel ascomfortable as possible. Toborrow a catchphrase fromMarriott, the hotel you’vechosen should be yourhome away from home.Now, imagine having afriend stay at your homewho wants to surf the In-ternet on their smart-phone. While they coulduse their own data plan,purchased from their carri-er, they instead ask you forthe household’s Wi-Fi pass-word. How awkward wouldit be if you said, “Sure,that’ll be $10.”

Hotel marketers growbusiness for their clientswith slogans such as “Feelright at home” and “Let uscater to your every need.”Charging a guest an extrafee for an essential service

EQUIPMENT &TECHNOLOGY

WI-FIOR DIEHoteliers charging guests for Internet access could be dead in the waterBY LARRY MOGELONSKY


doesn’t make a guest feelright at home. You would-n’t expect a fee at a friend’shouse, so why would youexpect it at a hotel?

Undeniably, many of usare now hooked on theweb. And we expect freeWi-Fi. Restaurant chainssuch as McDonald’s andStarbucks offer complimen-tary Internet access, andtheir clientele don’t spendnearly as much as guests doon a hotel room. Don’tstart off the relationshipwith guests on the wrongfoot. Free Wi-Fi is an easyguest expectation to meet.

Surprisingly, some hot-eliers have the audacity tocharge $20 per day for In-ternet connectivity. It’s a fee more in keeping with1999 than 2012 andviewed by many guests asinsulting — an instantturnoff. With the preval-ence of smartphones, guestsmay choose to access theInternet using their 3Gnetwork and accrue theirown charges rather thanaccept a hotel’s exorbitantInternet fees.

Many hotels have atiered system of Internetaccess. They’ll offer a basicconnection free of chargethen ask for a sizeable pay-ment, ranging from $15 to$20, for the high-speed edi-tion. With the multi-levelprogram, most guests willtry to jump on the Internetat the lower, free connec-tion level. However, thelow-speed connectioncomes with terrible band-width; a task as simple asdownloading emails be-comes mind-numbing. Inevitably, guests will pur-chase the upgraded versionfor peace of mind.

But these excessive feesgenerate negative feelings

towards your property. Andyour guests will wander offyour premises to scoop afree Wi-Fi signal from anearby restaurant. Now,you’ve created a F&B prob-lem. Instead of spendingmoney in your hotel, yourguest is spending moneyelsewhere. By making thempay for wireless, you’ve encouraged them to leavetheir rooms, decreasing potential revenues. Don’tlet Internet obstinacy getin the way of sales.

As a tool, free Wi-Fikeeps guests spendingmoney at your hotel, but it’snot a make-or-break fea-ture. It’s true, some discern-ing consumers might notchoose your hotel specifi-cally for that reason, butthey’re in the minority. Inmost cases, Wi-Fi fees are asmall and entirely avoidablegrievance that may con-tribute to a guest leavingyour property unsatisfied.Mediocre online reviewsand poor word of mouth arealso part of the fallout.

Charging customers Wi-Fi fees could cause resent-ment, so why risk it? Com-plimentary services makeyour guests feel good —they amplify positive feel-ings and make good busi-ness sense. In the grandscheme of things, free Wi-Fiis an inexpensive endorse-ment to buy, especiallywhen compared to refur-nishing rooms or upgradingfacilities. Remember, whenthe Internet is served on asilver platter, it’s an openinvitation for guests to singyour praises online.

It’s also worth notingthat hotels often includefree in-room Internet ac-cess as a feature to help sellloyalty memberships. Butwhy would a new guest join

a loyalty program if yourhotel hasn’t made a goodimpression with essentialservices? Is heating and airconditioning a part of yourloyalty program, too?Guests won’t sign on toyour loyalty program onlyto negate inflated connec-tivity fees. They’ll buy inbecause they’re impressedby your core services andamenities, which should al-ready include free Wi-Fi.

So let’s consider some so-lutions. Even after weigh-ing the pros and cons,many hoteliers are reluc-tant to change due to lega-cy contracts. But don’t letthese contracts be your ex-cuse for transferring addi-tional fees to your cus-tomers. Guests don’t careabout legacy contracts. Ifthese contracts hold youback, bury the Internet sur-charge into your nightly

rate, much like you alreadydo with the room’s utilities.Or, read through the origi-nal agreement you haveand find a buyout option.Pay it and move on. Theone-time fee, in addition to the installation chargefor wireless hubs and re-peaters, is nothing com-pared to the revenue lossesfrom unhappy guests.

Free Wi-Fi is the best so-lution, but, below are threeways to create a win-winsituation:• Package Deal: Offer free

access as part of a largeramenity bundle. Get cre-ative. Think of it as a“lifestyle package” show-casing an array of fea-tures that make yourbrand exceptional.

• Tiered Plan: Only offerfree Wi-Fi in premiumrooms or suites. Thewaived fee becomes an

REMEMBER, WHEN THE INTERNET ISSERVED ON A SILVER PLATTER, IT’S ANOPEN INVITATION FOR GUESTS TO SING YOUR PRAISES ONLINE“

”


added perk, validatingthe more expensive pur-chase and giving regularguests another incentiveto upgrade.

• Enhanced Web Portals:In addition to being aweb gateway, these sys-tems can integrateamenities such as laun-dry, dry cleaning androom service. Portal

companies are known tohandle the Wi-Fi net-work installation and upkeep costs, satisfyingguests with free access in exchange for pop-upbanner advertisements. Complimentary Internet

service is now a part ofbusiness, in much the sameway your property shouldhave a Facebook page; you

should also be linked to themajor OTAs and Twitter.The real solution, however,is a fundamental change ina hotelier’s mindset. Resis-tance towards free Wi-Fitranslates to an unwilling-ness to adapt to the times.It’s not written in stonethat you must maintain anonline presence, but it willsurely hamper your businessnot to conform. Treat freeWi-Fi the same way.

Sad as it may seem, babyboomers no longer havecomplete command of theNorth American market.To scores of teens andyoung adults, Internetusage fees are an assaultagainst their core beliefsand will not build loyalty.You have to lay the seedswith the tech-savvy gener-ation to ensure long-termsurvival. Free Wi-Fi is part

of the bigger picture. Keep-ing an open mind to therapidly shifting consumermindset is now more im-portant than ever. AsAdele Gutman, VP of Mar-keting, the Library HotelCollection in New Yorksays, “People want to stayconnected with their busi-ness and their loved ones.That makes them happy.Free Wi-Fi is the conduit tothat connection. As hote-liers, our goal is ultimateguest happiness.” ��

Larry Mogelon-sky is presidentand founder of the Toronto-based LMA

Communications Inc., anaward-winning, full-servicecommunications agencyfocused on the hospitalityindustry.

SAD AS IT MAY SEEM, BABY BOOMERS NO LONGER HAVE COMPLETE COMMANDOF THE NORTH-AMERICAN MARKET. TO SCORES OF TEENS AND YOUNGADULTS, INTERNET USAGE FEES ARE AN ASSAULT AGAINST THEIR CORE BELIEFS AND WILL NOT BUILD LOYALTY

“”

THE HOSPITALITY MARKET REPORT •THE CHANGING FACE OF TOURISM • PUBLICSPACES • HOUSEKEEPING & MAINTENANCE •SEGMENT REPORT

COMING INSEPTEMBER...

For more information or to book advertising contact: Brenda James at (416) 447-0888 Ext 271, or e-mail [email protected]

THE INDEXdisplay advertisersPage Company Web Address44 Bell ExpressVu belltv-commercial.ca15 Best Western International bestwesterndevelopers.com 33 Canadian Linen and Uniform www.canadianuniform.com32 Canadian Trade House canadiantradehouse.com10 Chamberlain chamberlainIPD.com07 Choice Hotels Canada Inc. choicehotelsfranchise.ca28 Crescent Hotels chrco.com 09 Discover discovercard.com17 Durkan Hospiatlity durkan.com 05 Ecolab ecolab.com 16 Full House fhfsl.ca42 Gordon R Williamns williamshvac.com 41 Guest Supply Canada guestsupply.ca29 Hilton Hotels International hiltonfamily.com 11 IIDEX/ NEOCON Canada iidexneocon.com 25 InterContinental Hotels Group ihg.com 40 K-Bro k-brolinen.com47 Kaba kaba-ilco.com 37 Kraft Canada kraftfoodservice.caOBC LG Electronics lg.caIBC LG Electronics Canada - LED lg.ca06 Lowry School of Polls and Spa Chemistry lowryschools.com 34,35 MacKay Wong mackaywong.com18 Marriott International Inc. marriott.com IFC Mercedes Benz - Sprinter mercedesbenz.ca04 Miele Limited miele.ca/miele/pro/pro_index.asp36 Monte Carlo Inns montecarloinns.com43 Procter & Gamble pgpro.ca08 Sealy Canada sealyhospitality.com23 Serta Mattress Company serta.com 40 Simmons Canada Linc. simmonscanada.com 21 Starwood Hotels and Resorts development.starwoodhotels.com 24 Superior Lodging Corp. superiorlodgingcorp.com26 The Pomeroy Group pomeroygroup.ca 27 Travelodge Canda travelodge.ca46 Ving Card ving.com


Canada’s top three hotel chains lead a parade of achievers

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Four Canadian designers weigh inon 10 trends shaping the hotel industry

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kostuchmedia.com • hoteliermagazine.com

MARCH/APRIL 2012 HOTELIER 13hoteliermagazine.com

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1 Living, Breathing Lobbies: Gone are the days of lifeless lobbies, stagnant vestibule areas ignored by guests headed to their rooms. Hote-liers now believe these areas are perfect for

showcasing the style and mood of a hotel. As such,they’re equipping lobbies with innovative kiosks andcreative check-in areas, and, in the process, creating afun, social atmosphere with pizzazz. The commonspaces now serve as an oasis where guests can sit andrelax. A central café lounge with multimedia stationsare the norm. “Lobbies abound with opportunity —give your guests the opportunity to use them for casualmeetings, socializing and as a gathering space,” saysJulie Campbell of Vancouver-based SSDG InteriorsInc. For example, the Sheraton Gateway Hotel atPearson International Airport recently underwent a$3-million renovation with an upgraded lobby thatcomes alive. The hotel’s Link@Sheraton lounge

comes fully equipped with Internet connectivity whereguests can check email and print their boarding passes.Additionally, The Hotel at River Rock in Richmond,B.C., features a living lobby that is four-storeys high.Guests can chill out in the open-air space while enjoy-ing the soothing sound of a waterfall and indoor pond.

2Spa-Like Bathrooms: Designing a bathroomspace with spa-like elements is a great wayto ensure guests have a relaxing stay. A slowdown and chill-out design invites guests to

spend luxurious hours ensconced in their suites. Oldshowers are out, body jet and rain showers are in,with oversized bathtubs oozing luxury. And, thesedays, top-of-the-line textiles are the norm with terry-cloth robes, towels sporting high-thread counts andluxurious beauty items available in the bathroom. Atthe W Montreal hotel, a Starwood property,

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12 MARCH/APRIL 2012 HOTELIER hoteliermagazine.com

SIGNATURE REPORT

Always innovating and constantly changing, this year’s design trends motivatethe newest and hottest hotel styles poppingup in the Canadian marketplace. Hoteliermagazine surveyed the country’s leadingdesign teams to come up with our list of 10 trends influencing hotel design (in noparticular order). The distinguished panelincludes Mavis Truscott, hospitality designlead at Calgary-based Sizeland Evans Interior Design; George Yabu and GlennPushelberg, partners at Yabu Pushelberg,Toronto; Robynne Moncur, principal de-signer at Moncur Design in Toronto andJulie Campbell, principal, SSDG InteriorsInc., Vancouver.

InStyleTapping into 10 design trends that create hotels with flair

BY JACKIE SLOAT-SPENCER

WELCOME HOME (from left to right): The Calla chair at Alt Hotel Quartier DIX30 Montreal; Moda Hotel Vancouver’s warm guestroom colour scheme creates a relaxed vibe; the Sheraton Gateway Hotel in Toronto International Airport lobby; The Hotel at River Rock in Richmond, B.C.

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Now you can have it all!If you subscribe to Hotelier, you can now also get free accessto our app edition!

It’s as simple as downloading it from the app store for your iPad now.

Tap into a world of information at your fingertips, including signature reports and industry stats; profiles on the movers and shakers; and stories on equipment and technology, design and decor, and so much more.


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ILL LEW

A ndrew Torriani got ataste of the hotel busi-ness as a child working

at a collection of hotels ownedby his father. In fact, at the ageof 11 he was running the filmprojector on Saturday nights as aservice to guests. Eventually, heand his three brothers moved onto more important tasks withinthe hotel network, holding a se-ries of jobs, including porter and night bellman —“all the jobs that others didn’t want to do,” quipsthe 50-year-old hotelier.

While he’s always had a passion for hotels, aftermoving to Canada and eventually graduating fromMcGill University in Montreal, Torriani landed atAir Canada as senior director of Human Resources.It wasn’t until a few years later he and his fatherformed their own hotel-management company calledMonaco Luxury Hotels Management, which nowcontrols a majority stake in the Ritz-Carlton.

These days, the Holland native does double duty,serving as GM and president of Montreal’s ‘GrandeDame,’ — officially known as the Ritz-CarltonMontreal — which reopened earlier this spring aftera three-year, $200-million renovation. He’s happy tobe back in business after a three-year hiatus. “Therenovation took a bit longer than anticipated,” ex-plains the father of three. “At the end of the daythe product represents what we wanted it to be.”

Opened on New Year’s Eve in 1912, the iconichotel has a storied history. It was the first Ritz-Carlton ever built by César Ritz, and through theyears it has hosted dignitaries and celebrities. Infact, it’s where Elizabeth Taylor and Richard Bur-ton first married in 1964.

Today, the 129-room luxury hotel is part of a

mixed-use development which also features 45condo units. “The residences are operated indepen-dently,” explains Torriani.

With the exception of the heritage rooms, thehotel was gutted and guestrooms were refashioned tocompete with the best hotels in the world. “We didn’twant to lose the character that really was the Ritz-Carlton. Our designers found a way to mix contempo-rary with modern. It’s a call back to older times.”

Not surprisingly, there’s great fanfare surroundingthe restaurant, given it’s operated by star chef DanielBoulud. Boasting a modern vibe, the 160-seat Mai-son Boulud has been full since we opened,” boaststhe hotelier. “The food is delicious. It’s local andfresh and relates to our surroundings. The wholeBoulud organization has a great training system.”

Now that he’s back in business, Torriani and histeam of 300 want to create a luxurious haven forguests looking for the ultimate in service. “Mybiggest challenge is meeting customer expectations.We want to appeal to everybody who enjoys finehotels.” And, with increasing competition, and a$450 price tag, Torriani says it’s important “to al-ways remain relevant.”

At the end of the day, it’s about satisfying theguest. “We have to be able to anticipate anything acustomer needs before they even realize it.” �

HOTELIER

GM & President, Ritz-Carlton MontrealBY ROSANNA CAIRA

Andrew Torriani

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peak performers +ains0 lead a parade of achievers€¦ · by adrian bell 38 chic magnet hotelier...

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