hotec operations & technology Panel: How suppliers can work with hoteliers Half Moon Bay, Calif. – Hotel Management was on site at the HOTEC Operations and Technology North America conference at The Ritz-Carlton, Half Moon Bay, in California, in February, where we hosted a trends panel featuring Nicholas Clayton, president of Viceroy Hotel Group; John Washko, VP of operations for Auberge Resorts; and Igor Krnajski, Sr. VP of design and construction for Denihan Hospitality Group. Clayton noted how Viceroy, a management company, has evolved over its 12-year history, first repositioning assets to hotels of a four-star level with high design that use indoor and outdoor spaces creatively. The launch of the Viceroy brand six years ago created a luxury flag for the company. Today, across all of the company’s brands, there are 14 hotels operating in the Caribbean, Mexico, California, Colorado, the Middle East and New York. Viceroy will soon open in the Maldives and in Turkey, and hotels are underway in Bodrum and Istanbul. In other regions, Viceroy is looking at Rome, New York City and Asia. “Asia is one of the best places to operate hotels and Europe is difficult but we’ll continue to scout out opportunities there,” said Clayton. Auberge Resorts has nine properties in its portfolio. “Our hope is to grow by 2018, to double in size, to reach around 16 ,18 or 20 hotels,” said Washko, adding that the company just hired an SVP of development. Projects underway include a Caribbean property, two in Mexico and two in the U.S—one on the East Coast and one in Florida. Krnajski, of New York-based Denihan Hospitality, noted that his company, which is an owner/operator, is family-owned; he joined when Denihan purchased the James hotel brand. In all, there are 13 hotels in Denihan’s portfolio under the James and Affinia flags. Independent hotels include New York’s Surrey and Benjamin hotels. Under development is the Royal Palm Tower in Miami’s South Beach, which will reopen as a James later this year. “We want to be on the West Coast and we want to be on the West Coast pretty quickly,” said Krnajski. The panel discussion also touched upon consumer trends and how hotels today are responding. “Customers are looking for value and it’s not that they are just looking for value, they are actually looking for more culture,” said Krnajski. “That’s what we are servicing, so that puts much more pressure on us as developers or brands. So sourcing is a huge thing and so is what is the next new thing. The key is not constantly coming up with new things, either. You’ve got to find balance and it should be localized. People like to feel they’re in the local community of where the hotel is.” The panel concurred that travelers across the board are indeed looking for experiences, even on the most mundane business trips. They’re also bringing family with them to extend their stays into leisure breaks. That, in turn, affects the “stuff” that hoteliers are purchasing for their properties. It’s a challenging task, however, and hotels are looking for collaboration from suppliers to help make it all happen. “You want the experience, you want all of these things, but also at the end of the day, [you] want to make money,” Krnajski said. “As owner/operators, we have to think that way. So it all goes down to where can we get the best value at the end of the day. But it’s got to be clever and it’s got to be unique.” Washko of Auberge Resorts said that the consumer is “buying smarter and paying smarter. Hence, we have to be smarter. At the end of the day, the room service $23 pot of coffee doesn’t fly anymore. In our properties, we have a breakfast table that’s inclusive of the rate. We do those special things so that the guests take away something of value and something unique.” Case in point: Washko said that Auberge’s private bars don’t have Snickers bars that cost $6. “Our private bar is complimentary and built into the rate,” he said. “With that comes the fact that we are looking for vendors and new ideas that can help us be profitable but do it in a way that works for both parties and results so that it’s a great experience for the guest.” Space planning in a hotel actually has a huge impact on what goes into a hotel, Clayton said. “It’s what you dedicate to the guestroom; how many fixtures are in the bathroom, what you allow for your IT budgets and that type of thing,” he said. “The other point is the public spaces. From our group standpoint, I’d like to go in the direction of finding ways to put mini experiences in our public spaces; that kind of authentic New York pizza joint around the corner [like at The Cosmopolitan], where there’s not much of a kitchen, you can fit just 10 to 12 people at maximum, but everyone wants to go there. Or a martini bar that’s in a coat room closet that you just pop open the doors to and there’s this little special enclave.” For that reason, the standard three-meal-a-day restaurant offering a daily special might not be as viable as it once was, Clayton said. “We have to blow that up and rethink that because it’s not always a good use of space or resources. Smaller, more interesting experiences can be done very efficiently,” he said. “You have less initial investment and a relatively small operating cost because it’s, say, a sushi counter that specializes in one type of sushi or it’s a spa experiences done extraordinarily well [in a smaller space].” To “wow” its guests, Auberge has invested in placing iPads in its guestrooms at its new hotels. That allows the properties to do away with the standard guestroom guidebook, which saves on paper costs. “Technology today is ever-changing and it’s very frustrating for all of us because you bring in the latest, greatest and in six months there is something new that you need to purchase that the guest wants,” said Washko. “It’s a balancing act and it’s difficult for us because we see the need to continue to be green and be respectful of the environment, which is one of our pillars. The iPad is a perfect situation. With that comes the opportunity for the guest who comes back to the room at 10 o’clock at night and is able to book a spa appointment for the next morning, where traditionally the spa would be closed.” Service, the panelists agreed, must remain paramount, regardless of the physical products that are used to wow the guest. “We as operators can’t lose that personal touch, so I think that part of that wow has to be in the service,” said Krnajski.