What in the Hell are we going to do??? Part Two

I, first hand, have seen the local hotel market plummet and I live in an area with booming commerce. I can't even begin to imagine worse off areas of the country. Rack rates with local hotels have dropped nearly 40%. For those that do not know about Rack Rate, it is the dollar rate that hotels will charge for non LNR or group affiliated guest. Some people call it the "Walk Rate."

Speaking about LNRs (Locally Negotiated Rates) ,or corporate accounts that will bring business to your hotel for a discounted rate, have dropped nearly 30%. The hotel I work for brought one of its LNR rates down to $79.

Key positions have been eliminated. Starwood Hotles have eliminated most of its room directors as also John Q Hammons Hotles have eliminated most of this Assistant General Managers usually on the rooms division side. Several assistant manager positions were eliminated during the recession. This drastically shapes department and hotel operations. Less management coverage could mean severe service quality reduction and follow-up. With AGM or Room Directors now gone GM's cant keep up with the work and will put it on to their food and beverage directors or AGM F&B who are already busy. With less staff working events or at the front desk guest experience can be damaging and business would be lost much quicker than just that particular person. The Hotel industry greatly relies on word of mouth marketing and bad word of mouth is very damaging!

To sum up everything, sometimes it would be more beneficial to make a smaller profit margin, rather then to lose more money when the recession is over because you lost most of your patrons and future guest, because of the bad service you provided, because you laid off all your managers and staff.

WHAT IN THE HELL ARE WE GOING TO DO??? Part One

Cash Flow, now more than ever, is imperative in this economy and companies that our proactive will last the storm but their could be major damage in the long run. Capital is extremely important and those that do not have emergency funds for situations like we are in now will lose in the end. Some major Hotel Management Companies have drastically made cuts in service quality and have put employees under wadge freezes. Some employees haven't seen a raise in over 2 years even though inflation continues to rise at a staggering rate. Because of this Employee turnover is higher than ever. This cost the company more then it would to successfully retain the employees. Pricing power has been lost for most 2-4 star brands and rooms that used to go from 249 are not selling for 169 as a rack rate. So companies are making up for it by taking severe risk in service quality. This is very dangerous because these hotels could lose patrons over bad service. Forecasting would way off if those guest that hotels counted on every week, month, and year suddenly vanished. This country will forget what good service is. The hotel and restaurant industry will turn into the airline industry. I can go on and on and on about this but I will continue this discussion next week. I'M SICK! Thanks.

My Favorite Hotel Brands

So some of you are probably wondering what's Jordan's hotel brand? Well that question isn't fair. We have to look at the market segments separately. Its not fair to compare a limited service hotel to a full service one.


My favorite limited service brand is Hampton Inn and Suites. This brand is clean, cut, and modern. These hotels are smaller; usually from 60-120 rooms with very few exceptions. The design structure, and soft colors of the interior remind me of the south; which of course offers the best social hospitality. The brand has free wireless internet, business center, pool, hot tub, foyer space and yes even free hot breakfast. Hampton is part of the Hilton family of hotels so anyone who is a member of the Hilton Honors Program can use this brand for those quick one nighters and business to smaller cities.



My favorite full service brand is the Embassy Suites. These hotels are usually much larger and it's the only brand that requires the floor to ceiling open atrium which is beautifully decorated with live trees, plants, and water features. The brand offers free cooked-to-order breakfast, free drinks and appetizers in the evening, bell services, staffed business centers, restaurant, 24 hour room service, and yes two room suites. This hotel is also a member of the Hilton family and diamond members can use this program to get free upgrades, and extra amenities fee of charge.

My favorite upscale hotel brand would have to be the Westin Hotels and Resorts. These properties are usually resorts in tourist destinations. They have darker colors and usually more of an old world touch. This hotel brand requires an in house full service spa and usually salon. This brand also requires bedays which our lovely. If you've never tried a beday; your MISSING OUT!

When traveling I suggest you stay at these brands.