In my last post, I studied the numbers and the macroeconomic effects on the hotel industry that the great brains from the Bisnow Lodging Investment Summit spoke about in DC.

While everything does revolve around the numbers, there were several panels that explored the innovations, traveler trends, and future of hotels from an experiential and development standpoint.

Technology [We're Not Going Off The Grid Anytime Soon]

Disappointingly, I was one of the few live tweeting during the conference with the #BLIS2012 hashtag, providing insight

Pebble, an E-paper watch for iPhone and Android, just raised $10 million in funding through Kickstarter.com

from great speakers in 140 character bites. [If you feel lost already, you need to hire our sister company OttoPilot Media to move you and your company into the digital age]. Many travelers consistently complain about the lack of outlets, especially in older hotels.

With the number of devices that we all have, and the desire to wander from the desk surface (I mean, they don’t call it a “lap”top for nothing), the power options are substantially limited. However, if you’re thinking of adding major electrical renovations to your PIPs now, rethink that. By the time you do that renovation, technology will have changed. You’re already behind.

Bill Fortier, SVP from Hilton Worldwide, reminded us on the development panel that the standard and acceptable Hilton TV is now 42″. This just shows a barometer of what a traveler expects–a home away from home with all the amenities. Technology investment will be required because customers will demand it.

Younger generations have three main requirements–control, connectivity, and immediacy. Hotels will need to learn to cater to these requirements to earn the loyalty of a typically unloyal consumer.

F&B Is Not Just About Restaurants

Sadly, food & beverage was previously seen as the redheaded stepchildren of many hotels. It’s been, at its nicest, referred to as a loss leader and many owners and brands have allowed F&B to be back burnered. From a trending perspective, panelists and speakers are now sitting up and taking notice of F&B again. It’s not that F&B has become profitable (in fact it’s rarely profitable in a union market), it’s because it’s an important part of the brand and travel experience. Jon Bortz, CEO of Pebblebrook, reminded conference attendees that F&B stands for “food and beverage” and not “restaurants”.

Starwood's aLoft brand has 24/7 F&B kiosks to serve their guests

As select service becomes more experiential, we are seeing hotels with pantries and limited-service offerings really embrace that idea of F&B.

It’s About the Experience

Across the board, just like we hear in digital marketing, there is talk of the consumer’s experience. Virgin Hotels’ Allie Hope resonated soundly with conference attendees by painting a picture of the Virgin experience. She was also one of the few speakers that spoke about having a targeted demographic. For Virgin it’s mid-30s, high earners, seasoned travelers, into social media, and well-educated.

Marriott seems to understand that people are looking for more unique experiences in hotels now with their Autograph collection; frequently, this is what

Turnberry Isle Resort in Miami- a part of the Marriott Autograph Collection

draws travelers to independents and boutique hotels. Through their Autograph collection, Marriott has picked up individually iconic assets with a heavier leisure mix than their normal properties. The collection includes 30 hotels–like The Carlton in New York and Turnberry Isle in Miami–and is the fastest grown full-service brand in the industry, ever (according to CEO Arne Sorenson). If you even visit the Autograph Collection website, it’s a very un-Marriott like user interface…and the word “experience” is used pervasively. Evidently, Autograph is symbiotic because, since adding the flag, average hotel revPAR is up 5-10 points.

Where is Hotel Innovation Going?

Unfortunately, there seemed to be a lot of reactive thought for what hotels should look like here and now, with today’s

"Ohhh, the files are IN the computer?" (Zoolander)

traveler and today’s technology. There was a real dearth of talk about the future of hotels. The conference brought tremendous insight on economic futures and what we can expect from financing, but innovation was another story.

In order for hoteliers to really understand what the future holds, they need to stop hanging out with and only learning from hotel people. Look to industries that are typically more cutting-edge–technology, sustainability, arts, entrepreneurship. Those are the industries that understand where this ship is going and what people are going to want in the future.

We’re on the right track with understanding experiential needs, but we are already behind by planning PIPs and CapEx projects with today’s technology and traveler in mind.

People go to hotels for many different reasons: luxurious rooms, top quality service, business trips, family vacations, etc. Most don’t choose hotels based on their swimming facilities, but these pools will make you think otherwise.

Image: Concierge.com

Hotel Fasano in Rio de Janeiro, Brazil dones this lovely pool. Underlite and heated this pool attracts the upper-class echelon of Brazilians. Rooms at the Fasano start at $530 (concierge.com). Dream under the stars in this top-of-the-line rooftop pool!

Image: travelandleisure.com

How about a hotel with the pool imbedded in the cliffside? Hotel du Cap Eden-Roc in France allows you to swim amongst the rocks, complete with a rope swing into the pool! The infinity edge on this cliffside pool makes it seem as if you’ll fade into the adjoining Cannes Bay. Swim among celebrities such as Bruce Willis and Kate Moss! (travelandleisure.com)

Image: www.santorini-hotels.info/katikies.htm#zoom

Looking for something a little more exotic? The Katikies Hotel in Santorini is a great get-away. Equipped with 2 pools, the Aegean architecture of this hotel in the small village of Oia is something to talk about. How about this pool itself? The pool is inside a cave not to mention the beautiful blue background. The cave pool found at this hotel is one of a kind. (santorini-hotels.info/katikies)

What are some of your favorite hotel pools?

What do hotel guests want? Hoteliers ask themselves the question all the time to increase room bookings and revenue.

Above all hotel guests want personalization, this can be accomplished in a variety of ways:

1. Engaged Employees

As HotelNewsNow.com has repeatedly stressed, satisfied employees mean satisfied customers. If employees have a sense of purpose and a more general view of how their job matters, the results will benefit everyone. Rooms will be cleaner, receptionists will be more welcoming, and the overall guest experience will be better and more personalized. If employees are engaged and motivated to develop relationships with the guests, the guests will notice.

2. Social Media 

The whole concept behind the success of social media is personalization. Allowing guests to express their experience on the hotel social media page (Facebook or Google+) and responding to them creates a personalized relationship. Guests feel they are being heard, and as a business, you get personalized feedback! It’s a win-win situation.

Social Media is also a great way to get more bookings. If someone’s friend ranks a hotel high, they are more likely to think more highly of that hotel. It’s word-of-mouth advertising, personal relationships rule!

3. Customized Products and Services

People aren’t looking for the subjective 5-star rating like they used to, people want a more personal feel with customized products and services. Because of new technology, competition, and readily available methods of comparing hotels; customers look until they get exactly what they want. Maybe that will be a Designer hotel or local food that appeals to them. Maybe a renovation would be a good idea to make your hotel less generic and more personalized. Whatever it may be hotels can cater to customers by giving them the tools to customize the experience for themselves.

By understanding what guests want, hotel owners can increase hotel room bookings and improve hotel revenue.

Do you agree that hotel guests want a personalized experience? What do you want as a hotel guest?

In the last blog post  guest personalization was stressed. These new brands of hotels take brand recognition to a large scale with actual designer hotels. Think big: Bulgari, Missoni, Armani, etc. This brilliant marketing campaign takes the brand recognition, loyalty, and ritz of these high-end designers and extends it to an upscale hotel! Check out some pictures from these places:

Bulgari Hotel, Bali:

Image: www.luxury-hotel-news.com

Bulgari Hotel, Milano:

Image: www.jaunted.com

Armani Hotel, Dubai:

Image: http://velvetpalette.wordpress.com

Image: http://velvetpalette.wordpress.com

Missoni Hotel, Scotland:

Image: http://www.hotelchatter.com

Like I said before these hotels take branding to the next level. It is a proven fact that people have brand loyalty, especially the upper class that can afford the designers listed above. So why not make luxury designer brand hotels?! Now not only can people wear their upscale designer brands, they can live them too (with the same loyalty no doubt!).

What is your favorite designer? If they had a hotel would you stay there simply for the name? I know if Kate Spade had a hotel I’d book a room in an instant!

No one argues the business-savvy behind Trump Organization, Donald Trump. The Trump empire is no small trump. Heck, the man has a whole show (The Apprentice) based around business success.

So what made Trump and his team invest an estimated $200 million in a new luxury hotel in Washington D.C.?

Image: http://thewashingtonlobbyist.com

1. Location

It’s the first rule of any real-estate investment: location, location, location. Hotels, as much as any other real-estate investment, must be in a profitable location to do well. Located on 12th Street and Pennsylvania Avenue, the new Trump hotel is in the middle of capital traffic. It is just walking distance from government offices and popular tourist destinations.

2. Demand

There are so many reasons to come to the capital: business, government, tourism. In 2011, hotel occupancy in DC was an estimated 69% compared to a nationwide occupancy of only 61%. The demand for Washington DC hotels is higher than the rest of the US.

Also, travel rates in general are supposed to be following an upward trend. Trump is trying to capitalize on increased travel to the capital in coming years.

3. Society’s Elite

Despite the demand for luxury hotels, a new one hasn’t opened in DC in years. Who is staying in Washington DC? Business people and government officials, the upper/upper-middle class. Society’s elite want to stay in the latest and greatest hotels. This is what you get with the Trump name, an insinuation of luxury, class, money. Trump knows his market and knows the demand for luxury hotels in a big city like DC.

Image: www.bestourism.com

4. History & Height

The new hotel will require renovating the old post office building, which is already a tourist destination. Trump has promised to preserve the historical features of the building in renovation. The building itself generates hype because its 315-foot clock tower which is the second tallest building in Washington behind the Washington Monument.

The hotel is expected to have a spa, more than 250 rooms, restaurants, and conference facilities. The mass publicity Trump has already gotten from this real-estate investment is profound. We’ll have to see how the hotel fairs in 2016 when it is due to open. Knowing Trump, it’ll be a gold mine.

Would you stay in the new Trump Hotel in Washington DC?

In an effort to give back to the communities that host the hospitality industry for notable conferences, Aspen Associates is a proud sponsor of the ALIS Suit Drive.  The Suit Drive benefits Chrysalis, a Los Angeles non-profit that helps low-income and homeless individuals find and retain employment, by collecting donations of gently-worn professional clothing to be used for job interviews.

The ALIS Suit Drive is spearheaded by Alexandra Gibson, Senior Vice President of our procurement firm.  “We are in an industry that is extremely fortunate and, while economic conditions have hurt us, we are not in need like many others.  There are enough obstacles in people’s lives; not having a suit for a job interview should not be one of them.”  Also serving on the committee to support the cause is John Page from construction firm Balfour Beatty, Steve Galbreath from architecture firm RTKL, Misha Bedner from hospitality design firm Hirsch Bedner Associates, John Fareed from branding and advertising firm Anson-Stoner, and Jonathan Wyman.

Photo credit: marriott.com

Due to our strong relationship with Thayer Lodging Group on previous projects, Aspen Associates has been chosen to oversee FF&E procurement, logistics, and installation for the renovation of the Fairview Park Marriott in Falls Church, VA.

Thayer acquired the property in July 2010, purchasing the 395-room hotel from JER Partners. The hotel was last renovated in 2008, when JER updated the property’s lobby, lounge, and restaurant. After debating between an addition and a renovation, Thayer decided to engage in an extensive renovation of the hotel’s ballrooms, meeting rooms, and other public spaces.

Aspen will be working closely with the Richmond, VA based interior design firm Baskervill, who has assisted the firm with several previous projects.

In another part of the slow rebound from 2008’s recession, many hotels are beginning to engage in the maintenance projects that were put off during the economic downturn.

According to NYU’s Tisch Center for Hospitality, Tourism, and Sports Management, American hotels will spend up to $3.5 billion on improvements this year, an increase of 30%.

During the recession of the past few years, many hotels chose to defer any maintenance projects that were not extremely urgent. However, as the Tisch Center’s study indicates, hotels are taking up those projects again in response to increased customer demand.

One reason for this upswing is that many hotels, having gone without maintenance for a few years, are beginning to show noticeable wear and tear. Another trend behind the maintenance increase is a hopeful spike in customer demand.

The hospitality industry has suffered over the past few years as economic constraints forced the average American to cut down on their travel expenses and take less vacation time. However, as we are slowly emerging from that recession, many in the industry are hopeful that Americans will return to their former travel habits and spend more on hotels and other amenities.

National chains are starting to demand that their local branches engage in many of the updates that have been put off, and customers themselves, with their increased buying power, are demanding up-to-date amenities and accommodations. This combination of necessity and increased demand is making many hotels ripe for investment and renovation.

Effective renovations are an excellent way to make sure that your property remains highly competitive within its market. When considering renovating your hotel property, you should carefully analyze what you want to achieve with the renovation and how much you want to spend on it.

The most successful renovations are those that make the most of the hotel’s existing assets.

For example, if the property has a longstanding reputation for excellence but needs a facelift, consider the elements that give the hotel that reputation and make sure that your preserve those elements.

Or, maybe the current structure is not taking full advantage of the current property. Consider adding windows and rooms to take advantage of a beautiful room, or sprucing up your street entrance to take advantage of a bustling location.

These same principles apply if you are looking to purchase and renovate a property. Look for properties that have historic reputations and strong name-recognition but that need a structural facelift; or for rundown properties that are situated in bustling or up-and-coming locations. These types of properties already have excellent potential, and your renovation could make them thrive.

Superficial improvements aside, the most successful renovations broaden the appeal of the property by adding value for the customers and drawing in new revenue for the owners.

Additional service elements, such as restaurants, bars, and spas, are a great way to augment a property’s value and attract new customers. These more luxurious accommodations can increase room rates even while increasing customer demand.

Even after adding appeal inside your property, it is important to rethink and update the street appearance of the hotel. Curbside appeal is a crucial element in drawing in new customers. Open your building up to the street with a more welcoming facade and an entrance that gently draws customers into the site.

Photo credit: The Lodging Conference

Unable to attend the 2011 Lodging Conference? Check out our recap of some of the event’s most talked about issues.

The 17th annual Lodging Conference took place last week in sunny Phoenix, Arizona, at the Biltmore Resort and Spa. For three days, top-tier leaders in the hospitality industry gathered to discuss opportunities, problems, and projections for the coming year.

Property improvement plans, or PIPs, proved to be one of the conference’s hottest topics.

During the recent economic downturn, many brands became more lenient in enforcing strict timetables for their PIPs, out of consideration for the economic difficulties faced by owners.

-The prevailing worry of macroeconomic debt. Many conference-goers expressed unhappiness and unease over the astronomical national debt and the worrying international debt situation. Such macroeconomic uncertainty leaves hotel owners wondering how to best prepare for any contingencies.

-After a rough two or three years within the hospitality industry, leaders expressed a cautious optimism for the next few years.