Archive for December, 2006

Wolff’s crystal ball

Some speculation for Hospitality 2007:

• The proliferation of new brands will begin to abate. Now that Hyatt Place, Nylo, aloft, Cambria Suites and Element are in the pipeline, it will be hard to debut yet more “lifestyle” brands.

• Old technology could lead to a specialty brand. Some savvy developer may float a boutique flag dedicated to vintage technology. Imagine a boomer hotel with pay phones, eight-track machines, record players, tube radios, even a black-and-white TV. Cable and Internet? Down the street.

• HSIA will be ever freer. Upscale hotels on up will be holdouts and still charge for high-speed Internet access. But the move toward making it an amenity included in your room rate will quicken, further marginalizing the pay-for-use model.

• More international expansion by domestic brands. Wyndham bought Corinthia and Hilton acquired Hilton International. Expect these giant franchisors and others to focus on development in Asia, China and India even more than the U.S.

• More hotel companies will join the anti-smoking bandwagon. Now that Marriott has banned smoking from all its hotels, joining Starwood’s Westin, the movement will spread. If Ireland, Italy, Norway, Malta (and Ohio) can ban smoking in public spaces, surely the hospitality industry can.

• More training. Now that hotels are flush with cash—ADR and occupancy are at a peak—they’ll spend more money to train personnel. Also, expect technology to facilitate this, with podcast training already in play.

• Longer construction timetables. Fluctuations in the cost of materials and the labor pool mean that many projects can take longer from groundbreaking to opening.

• Changing usage patterns. With rates creeping up in upper upscale, business travelers may find themselves trading down—as long as they can access the business services they need.

Kansas City, here we come?

Like many older American cities, Kansas City, MO has struggled in recent years to retain business and residents. It’s pretty well known that the city shuts down after the workday concludes. That trend appears poised to reverse itself as creative and forward-thinking citizens, city officials and developers embark on construction of the $800-million Power & Light District, encompassing eight blocks in downtown Kansas City. The district will transform what has long been considered a critical undeveloped area of downtown and will provide linkage between the new Sprint Center and the expanded H. Roe Bartle Convention Center. The project is scheduled for completion next fall.

In town this week to report on the stunning restoration of the historic President Hotel, perfectly located directly across from a large section of the district, I marveled at the exciting mix of retail, residential condos, restaurants, lodging and entertainment venues rising from the ground. I also wondered why I hadn’t been aware up until now of this exciting project.

So, a note to you KC hotel operators and city promoters: if this lodging journalist is relatively clueless about this new city jewel, perhaps the traveling public and those all-important convention and meeting planners are out of the know, as well. Isn’t it time to rev up your publicity and marketing machines and get the word out?