Hotel Online  Special Report

advertisement


..
..
.
Nobody Asked Me, But… No. 33
..
1957 Murder at the Park Sheraton Hotel; How Much Does A Franchise Really Cost?; 
A Marriage Made in Heaven?; A Good Night’s Sleep at the 
Benjamin Hotel; Quote of the Month
.
 
By Stanley Turkel, MHS, ISHC
October 2007

1.  1957 Murder at the Park Sheraton Hotel-   October 25th marked the fiftieth anniversary of one of the most public assassinations in underworld history.  Back in 1957, crime boss Albert (Umberto) Anastasia was leader of the Brooklyn Gambino Family.

When Anastasia walked into the barber shop in the Park Sheraton Hotel, he waved at shop owner Arthur Grasso as he sat down in chair four.  Joe Bocchino, who had been cropping Anastasia’s short, curly hair for years, covered him with the candy striped barber’s cloth and began to clip while the manicurist worked on Anastasia’s fingernails.  Jimmy, the shoeshine boy, began to put brown polish on the gangster’s wingtip shoes.  Two men, wearing fedoras, sunglasses and scarves covering their faces, pulled .38 caliber revolvers, waved the shop workers away from chair four.  As they scattered in fright, both men began to blast away at the seated figure.

Anastasia’s bodyguard was not on the scene having decided to go for a walk after parking the boss’s car in an underground garage.  Five of the gunmen’s ten shots struck the mob boss.  The murder of the blood-thirsty Anastasia, who was known alternately as the “Mad Hatter” and “Lord High Executioner” of Murder, Incorporated, was never solved.

The Park Sheraton Hotel is now called the Park Central at 56th Street and Seventh Avenue.  It has no barber shop.

2.  How Much Does a Hotel Franchise Really Cost?-  You can get the complete answer from the 2007 U.S. Hotel Franchise Fee Guide published by HVS International, 372 Willis Avenue, Mineola, N.Y. 11501, 516-248-8828, www.hvs.com, U.S. $395.  The purpose of the Guide is to provide a comparative review of various hotel franchise brands.  The study covers 31 economy, 28 mid-rate and 34 first-class brands.

When evaluating a potential hotel franchise the structure and amount of the franchise fees are important economic considerations.  Second only to payroll, franchise fees represent one of the largest operating expenses for most hotels.  Franchise fees include the initial fee, a royalty fee, an advertising or marketing contribution fee, a reservation fee and in many cases a frequent traveler program fee and other miscellaneous fees.

The HVS Guide summarizes the estimates of ten-year franchise costs for each brand classified by chain scale.  As you can see, the variations are very wide:

Franchise fees as a %
of total room revenue
Economy 0.8% to 12.2%
Mid-Rate 2.4% to 13.8%
First-Class 5.2% to 13.5%
.
Potential franchisees should evaluate the fee structure and project the total cost of initial and continuing franchise fees and then determine whether or not the price/value benefit warrants the acquisition of the franchise.  There is no better way to make this evaluation than by reading the HVS 2007 U.S. Hotel Franchise Fee Guide.

3.  Marriott/Schrager: A Marriage Made in Heaven?  Was there ever a less-likely business partnership than the recently-announced plans to create a new brand of boutique hotel by the ultra-hip Ian Schrager and the strait-laced Bill Marriott?  The very qualities that have proven so successful for Marriott (large public areas, many guest rooms, multiple restaurants and meeting space) are unnecessary in boutique hotels which focus on contemporary cultural trends.

Schrager’s Royalton, Morgans and Paramount in New York to the Delano in South Beach to the Mondrian in West Hollywood are so unique that it is difficult to imagine any of them as a Marriott product.

My recent research of founder J. Willard Marriott (for my soon-to-be-published book “Great American Hoteliers: Pioneers of the Hotel Industry”) reveals a highly flexible entrepreneur who moved from fast food to airline feeding to interstate highway restaurants to hotels.  The Marriott Hotel company that exists today is largely the work of Bill Marriott, Jr. who is an extraordinary visionary, executive and hotel operator. 

As unlikely as the Marriott/Schrager partnership appears, I believe that it can work if Bill Marriott keeps the Marriott organization at arms length just as he does for the Ritz Carlton Company.

4.  A Good Night’s Sleep at the Benjamin Hotel?-  Once in my career, I was the General Manager of the Summit Hotel on 51st Street and Lexington Avenue in New York City (now the Doubletree Hotel).  I lived in a suite on the 18th floor for 2 years and gradually got used to the street traffic noise.  One block south, the Benjamin Hotel has found a better answer for its guests.  They created the position of sleep concierge to help their guest get a better night’s sleep.  The program includes soundproof windows, luxury sheets, aromatherapy, massages, satin sleep masks, tips for executive naps, a menu of 11 special pillows and special sleep-inducing foods, like banana bread with peanut butter.

5.  Quote of the Month-  It is common sense to take a method and try it.  If it fails, admit it frankly and try another.  But above all, try something. Franklin Delano Roosevelt

Stanley Turkel, MHS, ISHC operates his hotel consulting office as a sole practitioner specializing in franchising issues, asset management and litigation support services.  Turkel’s clients are hotel owners and franchisees, investors and lending institutions. Turkel serves on the Board of Advisors at the NYU Tisch Center for Hospitality, Tourism and Sports Management.  If you need help with a hotel franchising problem such as encroachment/impact, termination/liquidated damages or litigation support, don’t hesitate to call 917-628-8549 or email stanturkel@aol.com. 

If you would like to reserve an autographed copy of Mr. Turkel’s new book “Great American Hoteliers: Pioneers of the Hotel Industry” (to be published at the end of 2007), send an email to stanturkel@aol.com.


Stanley Turkel, MHS, ISHC operates his hotel consulting office as a sole practitioner specializing in franchising issues, asset management and litigation support services.  Turkel’s clients are hotel owners and franchisees, investors and lending institutions. Turkel serves on the Board of Advisors at the NYU Tisch Center for Hospitality, Tourism and Sports Management.  If you need help with a hotel franchising problem such as encroachment/impact, termination/liquidated damages or litigation support, don’t hesitate to call 917-628-8549 or email stanturkel@aol.com

If you would like to reserve an autographed copy of Mr. Turkel’s new book “Great American Hoteliers: Pioneers of the Hotel Industry” (to be published at the end of 2007), send an email to stanturkel@aol.com.

.
Contact:

Stanley Turkel, MHS, ISHC
917-628-8549
stanturkel@aol.com

.
 
Also See: Nobody Asked Me, But… No. 31 - Rhode Island Improves Franchise Rules, What’s Up With Canada? Conversion of a Jail Into a Hotel, The Richest (and Poorest) Places in the U.S. / Stanley Turkel / September 2007
Nobody Asked Me, But… No. 31 - Blackstone's Acquisition of Hilton, The Art of Groveling, The Origin of Franchising / Stanley Turkel / August 2007
Nobody Asked Me, But…. No. 30 / Impertinent Questions In Search of Pertinent Answers: Carbon monoxide detectors, exterior-corridor properties / Stanley Turkel / July 2007
How American-Owned Can You Get?, ISHC's CapEx 2007 Report, The Bowery Hotel / Stanley Turkel / June 2007
Hotel Franchising and State Laws, Is Immigration Important? Save the Biltmore, The Good Old Days, Quote of the Month / Stanley Turkel / May 2007
Nobody Asked Me, But - No. 27 / Hotel Franchise Agreements: Mediation, Arbitration or Litigation? / Stanley Turkel / April 2007
Nobody Asked Me, But - No. 26 / Energy Usage and Potential Savings; Great Art in Hotels; Lifestyle Hotels; The Minimum Wage Issue; Quote of the Month / Stanley Turkel / March 2007
Nobody Asked Me, But - No. 25 / Guestroom Design & Amenities, Get a Human, Best Luxury Hotels in the U.S., Turnpike, The Pineapple as Symbol of Hospitality, Fair Franchising / Stanley Turkel / February 2007
Nobody Asked Me, But - No. 24 / Loose Cannon, Fair Franchising, Manhattan Hotel Profits, Hotels of the Future, Interesting Miscellany, Quote of the Month / Stanley Turkel / January 2007
Nobody Asked Me, But - No. 23 / Biting The Hand That Feeds You?, By The Numbers, Shortage of Hotel Rooms, There is No Free Lunch, Iron Laws of Business Travel, Happy New Year / Stanley Turkel / January 2007
Nobody Asked Me, But - No. 22 / Smart Elevators, Tony Marshall’s Memorial, Women in the Hospitality Industry / Stanley Turkel / December 2006
Nobody Asked Me, But… No. 21 / The Drake Hotel in New York, Fair Franchising is Not an Oxymoron, By the Numbers, Another Secret Underground Shelter, Passing of Anthony G. Marshall / Stanley Turkel / December 2006
Nobody Asked Me, But… No. 20 / Turnabout Is Fairplay, Secret Underground Shelter, By the Numbers, Genuine Fair Franchising/ Stanley Turkel / November 2006
Nobody Asked Me, But… No. 19 / International Society of Hospitality Consultants, Great Miami Hotels, Reduce Carbon Monoxide Emissions, Turn Gray Into Gold / Stanley Turkel / November 2006
Nobody Asked Me, But… No. 18 / John Q. Hammons, Save the Belleview Biltmore, Chinese Tourism, CFLs, Ernie Byfield, Guestroom Entertainment in 1905 / Stanley Turkel / October 2006
Nobody Asked Me, But… No. 17 - AAHOA's 12 Points of Fair Franchising, Protected Territories, / Stanley Turkel / September 2006
The Newest Independent (and Oldest Partially Independent) Franchise Association in the Hotel Industry / Stanley Turkel / September 2006
In Hotel Franchising, Reality Trumps Wishful Thinking / Stanley Turkel / August 2006
Nobody Asked Me, But… No. 14; Impact Studies, Stretching Segments, Short-Stay Rentals, Smoke-free Marriotts, Franchising in China, Save the Belleview Biltmore Hotel / August 2006
The U.S. Population Age 65 and Over is Expected to Double in the Next 25 Years; What Does this Mean for the Hotel Industry? / Stanley Turkel / July 2006
Nobody Asked Me, But… No. 12; Portman, Women Homeowners, Minimum Wage, Tipping, Brooklyn Bridge, Chinese Tourism, Impact Studies / Stanley Turkel / July 2006
Do Hotel Franchisees Need Independent Franchise Associations? / Stanley Turkel / June 2006
Nobody Asked Me, But… No. 10 / Chinese Tourists, Gasoline Prices and Alternatives, GLBT Segment, Travel Agents, FAC's, Manhattan's Record Breaking Year, Impertinent Questions / Stanley Turkel / June 2006
Nobody Asked Me, But… No. 9 / Blang, Bathtubs, Best Green, Arbitration, Best Western, AAHOA, State Franchising Laws, VFR / Stanley Turkel / May 2006
Nobody Asked Me, But… No. 8; Bathtubs, Smokefree Hotels, Maps, Saving Water, Nevada Revenues, H.P. Rama, Ritz-Carlton, Statler Service Code, Mother’s Day / Stanley Turkel / April 2006
Nobody Asked Me, But….No. 7 / Stanley Turkel, MHS, ISHC / March 2006
Nobody Asked Me, But…. / Stanley Turkel / February 2006
Nobody Asked Me, But…. / Stanley Turkel / January 2006
Nobody Asked Me, But…. / Stanley Turkel / December 2005
Nobody Asked Me, But…. / Stanley Turkel / November 2005
Nobody Asked Me, But…. / Stanley Turkel / October 2005
Nobody Asked Me, But…. / Stanley Turkel / September 2005
.

To search Hotel Online data base of News and Trends Go to Hotel.Online Search

Home | Welcome! | Hospitality News | Classifieds | Catalogs & Pricing | Viewpoint Forum | Ideas/Trends
Please contact Hotel.Online with your comments and suggestions.