| By Judy Colbert, October 2000
Whether it�s called complexing, cobranding, double-branding or clustering (or even pu-pu platters), the concept isn�t complex: Take two or more properties and share operations and staff to effect considerable savings and more personnel efficiency. It�s �a natural progression in urban settings,� says Kapila Anand, national director of hospitality assurances services for KPMG. The big advantage is having 24/7 availability of reservationists, a chief engineer and other personnel that one property alone might not be able to afford. She says the one area of resistance is where different owners are involved, causing potential problems when allocating the charges for payroll, allocating reservations, particularly when there are incentives for upselling, and other expenses. Better scheduling flexibility Jeff Plamondon, general manager of Philadelphia Marriott West, says he saved $300,000 a year when he managed Marriott Dulles Airport and Marriott Dulles Suites at Dulles International Airport in northern Virginia. Of that, payroll accounted for the biggest chunk because he was able to more efficiently assign personnel where they were needed. This eliminated layoffs at slower hotels and understaffing at others. Besides the savings, Plamondon says it�s easier to keep and attract associates. His current turnover is typically 22%-24%, half the rate when each hotel was individually managed. Each employee receives one paycheck, with each hotel charged for the hours separately, according to timecards. When he managed the Virginia properties, the two hotels split his check based on total sales percentages. MeriStar Hotels and Resorts clusters in 28 areas including Chicago, Dallas, Durham, the southwest and Tampa Bay areas of Florida, Los Angeles, Baltimore and Washington, DC. David McCaslin, president of MeriStar, says having a number of properties that can house a group has its advantages, particularly if that group would have gone elsewhere because of a lack of capacity. �It is still a harder sell to have a group housed in multiple locations than in one hotel. The true key is maintaining relationships by putting the group in the proper setting for that function,� he says. �There can be guest confusion if they do not understand the linkages between hotels. �Why would a Marriott cross-sell to a Renaissance?� is a frequent question,� which may take some education about the Marriott family of brands to answer. Ultimately, �complexing is about relationships and providing a customer the greatest amount of alternatives available,� says McCaslin. Mark Mahoney, area director of sales for MeriStar Hotels & Resorts in Durham, heads up four hotel properties, two owned by MeriStar and two managed by them. Sales personnel represent and sell all four properties, but rather than each hotel chipping in a portion of a paycheck and other operational costs, they divide expenses. For example, when the properties are going to do a direct market-mailing piece, one hotel may pay for postage, one for printing, and one for research for a mailing list. Two brands better than one Another concept opened this summer in King of Prussia, Pennsylvania, when Hersha Hospitality Management opened a joint Mainstay Suites and a Sleep Inn, each located in separate towers connected by a lobby. Additionally, there�s an indoor pool, exercise room, guest laundry area, library and lounge area, an outdoor barbecue area and two meeting rooms that can seat up to 60 people theater-style, all of which can be used by guests in either hotel. Jay Shah, Vice President of Hersha Hospitality, says the firm has been working on the concept for several years. �It works well because we�re in the middle of a large number of corporate parks and a large tourism area. The corporations bring employees in for multiweek training session and they stay in the Mainstay, while transient guests tend to stay in the Sleep Inn." The payroll is prorated from each hotel, according to the number of rooms. Although the practice of sharing facilities and staff has been around in lower-priced hotels for a decade, upscale properties are now adopting it as well. The Walt Disney World Swan and Dolphin hotels and the Westin Century Plaza are recent examples. The Swan and Dolphin are merging their convention, catering and accounting areas this year, after merging sales, marketing and reservations departments last year. "We are now able to serve virtually any size group, and we have more physical resources and equipment to make the meeting happen," says Bob Nicoli, director of convention services. Planners have fewer people to deal with and they receive one bill for rooms, meals, and other services. The Westin Century Plaza in Los Angeles will split its two buildings, with the 30-story tower becoming a five-star St. Regis and the main building the four-star Westin Century Plaza Hotel and Spa. Each building will have its own lobby, restaurants and amenities, and the subterranean concourse will be closed. Augusta Riverfront Limited Partnership is adding a Country Inns and Suites to the existing Radisson Riverfront Hotel Augusta. This is the first time Carlson, the parent company, has cobranded, the first time a Country Inns will be attached to a meeting space and the first time one will be located in a downtown area. GM Darryl Leech says he �will be able to attract some groups I was losing, offering them a range of prices. Guests at the County Inns and Suites can have a meal and drinks at the full-service Radisson and sign to their room. Yet, we'll need only one kitchen. When the Country Inns and Suites opens in May 2001, the two properties will be connected by a skyway to the conference center, we they will use a common accounting structure, training and engineering staff.� Which New York Sheraton?
Judy Colbert is a writer based in Maryland. She can be reached at [email protected] |
