News for the Hospitality Executive |
Nobody Asked Me, But… No. 72:
By
Stanley Turkel,
MHS, ISHC, January 20, 2011
1. Impertinent Question In
Search of a Pertinent Answer Since there are more than 100 operating hotel brands and 28 additional recently-annouced new brands, is the current spate of new hotels brand- sensible or brand proliferation? In
the past few
months, the following 13 new hotel brands have been announced:
Recently Peter
Yesawich, Chairman
and CEO of Y partnership answered, “The concept of “need” can be
subjective. Yes, evolving market demands
often require new products to satisfy them, but let’s not confuse
market
influence with the pressure to drive profit to the bottom line.” As Stefani C.
O’Connor, Executive
News Editor, Hotel Business Green
Book (2011 Almanac & Market Guide) writes: If you bring a
literal
interpretation to lodging’s field of brands, the look of the landscape
heading
into 2011 is more a hodge podge of entities that have sprouted up
rather than a
totally cultivated, well-laid out assemblage of choices for potential
licensees
to stroll among and pluck at will for their portfolios… In many fields,
a
“more-the-merrier” approach is welcome; in lodging, not so much. More brands means more competition, greater
dilution of the discretionary dollars travelers could spend and, in
some cases,
more confusion for consumers who are being overwhelmed with options, a
situation that also exists for potential developers and licensees. 3. Hilton’s
Hands Get Slapped in Starwood Settlement Starwood
accused
Hilton of stealing documents related to the development of the W brand. As many
analysts
believed, Starwood’s sensational lawsuit against Hilton Hotels won’t
make it to
a courtroom. In a decision filed in
federal court yesterday, the two sides agreed to a settlement of the
nearly
two-year-old suit in which Starwood accused Hilton of stealing trade
secrets to
launch the since-scuttled Denizen lifestyle hotel brand. While most
terms of
the settlement weren’t announced, Hilton will remain under scrutiny by
the
court to prevent a reoccurrence of the alleged actions.
Hilton said it consented to an injunction
that includes “certain business restrictions for a period of two
years,” which
according to some press reports precludes creating a lifestyle or
branded
boutique brand during that time. Starwood
further announced that the settlement requires
Hilton to be
subject to monitors appointed by the court “to assure the conduct that
occurred
does not occur again.” And finally, and perhaps most ominously, the
court
filing indicated a federal grand jury will continue to look into
whether Hilton
and some of its former executives should face criminal charges. Hilton CEO
Chris
Nassetta was humble in commenting on the settlement, saying, “Hilton
Worldwide
regrets the circumstances surrounding the dispute with Starwood Hotels
and
Resorts Worldwide and is pleased to bring an end to this prolonged
litigation.” It seems to me that Hilton Worldwide will suffer long-lasting, unpleasant consequences. Since Hilton will remain under court oversight that includes “certain business restrictions for a period of two years”, they may well be precluded from making important brand improvements. 4. China-Based Developers Buy
U.S. Hotels & a Management Company In an exciting
but relatively
unknown series of acquisitions, the following entities were recently
acquired
by Chinese companies:
5. Quote of the Month “Nothing I’ve
ever done has given
me more joys and rewards than being a father to my children.” Stanley Turkel,
MHS, ISHC has just published “Great American Hoteliers:
Pioneers of the Hotel Industry.” It contains 359 pages, 25
illustrations
and 16 chapters devoted to each of the following pioneers: John McEntee
Bowman, Carl Graham Fisher, Henry Morrison Flagler, John Q. Hammons,
Frederick
Henry Harvey, Ernest Henderson, Conrad Nicholson Hilton, Howard Dearing
Johnson, J. Willard Marriott, Kanjibhai Patel, Henry Bradley Plant,
George
Mortimer Pullman, A.M. Sonnabend, Ellsworth Milton Statler, Juan Terry
Trippe and Kemmons Wilson. It also has a foreword by Stephen
Rushmore,
preface, introduction, bibliography and index. Visit www.greatamericanhoteliers.com
to order the book at reduced rates: • Paperback (6x9) $25.00 • Dust Jacket Hardcover (6x9) $35.00 |
Contact:
Stanley Turkel, MHS, ISHC |