Hotelier September 2016 Digital Issue by Courtney A Jenkins

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Volume 28, Number 6

| September 2016

Contents

Features THE 2016 HOSPITALITY MARKET REPORT 8 TIME TO SHINE Strategies to maintain vibrancy and

innovation in a volatile world By Michael Haywood

16 NATIONAL MARKET REPORT Highlights from the

past year in the Canadian accommodation industry By PFK Consulting Inc., a CBRE Company

23 HOW THE WEST WAS WON A look at hotel supply

growth and development trends in Western Canada By Carrie Russell

45 DESIGN SHOWCASE

Hotelier highlights four shining hotel design stars By Eric Alister, Amy Bostock and Danielle Schalk

51 HITEC 2016 ROUND-UP

Hot new hotel tech from the world’s largest hospitality technology show

26 CAPITAL DEBUT Hyatt’s first Andaz-branded property

in Canada is looking to capture the imagination of discerning travellers By Danielle Schalk

29 THE HUMAN FACTOR Attracting and retaining talent is getting more difficult in today’s challenging job market By Sarah MacLean

C O V E R P H O T O G R A P H B Y M AT T H E W L I T E P L O

32 THE MID-SCALE MINDSET The mid-scale hotel

Departments 2 EDITOR’S PAGE 3 CHECKING IN 52 HOTELIER: Tim Reardon,

Westin Harbour Castle, Toronto

segment is booming, thanks to travellers seeking the most bang for their buck By Jennifer Febbraro

35 THE HOSTS WITH THE MOST From weddings to

corporate meetings, hotels play host to a vast variety of events By Danielle Schalk

39 GUEST ENTERTAINERS Today’s in-room entertainment

Scan to view our website hoteliermagazine.com

has moved beyond pay-per-view movies to offer a truly connected experience By Andrew Coppolino

ON THE COVER (from left), Scott Richer, VP, Real Estate and Development, Hyatt; Matt Graham, GM, Andaz Ottawa ByWard Market; and Neil Malhotra, VP, Claridge Homes SEPTEMBER 2016 HOTELIER

EDITOR’S PAGE

THE NUMBERS GAME

t’s hard to believe September is already upon us, with the languid pace of the summer now a distant memory. For Canada’s hotel industry, the summer period was a good one, with many hotels reporting solid occupancies, and more importantly, higher rates. As Michael Haywood states in this month’s Hospitality Market Report, the stars have aligned and everything has fallen into place. Driving increased visits to the country are a glowing reputation for the Canada brand, favourable exchange rates and our country’s natural beauty — not to mention our friendliness and perceived safety (see HMR story on p. 8). From a legislative point of view, the government’s announcement earlier this summer that it would be eliminating visa requirements for Mexican citizens travelling to Canada, also bodes well for increased visits from that country. With Mexico being one of Canada’s top inbound travel markets, this should fuel more travel from the country. In fact, despite the implementation of visa requirements in 2009, Mexican inbound travel to Canada continues to grow. In 2014, 173,000 Mexican citizens came to Canada, an increase of 14 per cent over 2013. There were 21,469 visits from Mexican travellers in March 2016 — an increase of 54 per cent from the same month last year. “These numbers are expected to grow incrementally with the changes to visas and the introduction of new direct and daily air service to Canada” says Tony Pollard, president of the Hotel Association of Canada. While Canadian travel stats are strong, internationally much of the same holds true. According to a recently released study from the United Nations World Tourism Organization, international tourism continues to grow above average in the first four months of 2016. The year started on a strong note, with arrivals growing by five per cent between January and April 2016, according to the latest UNWTO World Tourism Barometer. Results were robust across almost all sub-regions and many destinations reported double-digit growth. Though the report does not measure the summer period, prospects for May to August were expected to be positive — approximately 500 million tourists were expected to travel abroad in the Northern Hemisphere during the summer holiday peak season. Still, concern over the tragic events in Nice, France as well as in other European destinations underlines the importance that safety and security play in the travel equation. But, as UNWTO Secretary-General Taleb Rifai says “…The results show a strong desire to travel and this continues to drive tourism growth. Destinations keep benefitting from solid demand across all world regions despite ongoing challenges, showing that tourism is a dynamic and resilient economic sector.”

ROSANNA CAIRA

MANAGING EDITOR abostock@kostuchmedia.com ASSISTANT EDITOR dschalk@kostuchmedia.com EDITORIAL ASSISTANT ealister@kostuchmedia.com

DEREK RAE | COURTNEY JENKINS |

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ACCOUNT MANAGER csanjuan@kostuchmedia.com ACCOUNT MANAGER mviecili@kostuchmedia.com ACCOUNT MANAGER mspence@kostuchmedia.com

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ADVISORY BOARD David McMillan, AXIS HOSPITALITY INTERNATIONAL; Bill Stone, CBRE HOTELS; David Larone, CBRE HOTELS; Anthony Cohen, CRESCENT HOTELS — GLOBAL EDGE INVESTMENTS; Charles Suddaby, CUSHMAN & WAKEFIELD LTD. — HOSPITALITY & GAMING GROUP; Christiane Germain, GROUPE GERMAIN HOSPITALITE; Michael Haywood, THE HAYWOOD GROUP; Lyle Hall, HLT ADVISORY; Drew Coles, INNVEST REIT; Ryan Murray, THE PILLAR + POST HOTEL; Geoffrey Allan, PROJECT CAPITAL MANAGEMENT HOTELS; Stephen Renard, RENARD INTERNATIONAL HOSPITALITY & SEARCH CONSULTANTS; Anne Larcade, SEQUEL HOTELS & RESORTS

HOTELIER is published eight times a year by Kostuch Media Ltd., 23 Lesmill Rd., Suite 101, Toronto, Ont., M3B 3P6, (416) 447-0888, Fax (416) 447-5333. All rights reserved. Subscription rates: Canada: $25 per year, single issue $4, U.S.A.: $30 per year; all other countries $40 per year. Canadian Publication Mail Product Sales Agreement #40 063470. Member of Canadian Circulations Audit Board, the American Business Media and Magazines Canada. We acknowledge the financial support of the Government of Canada through the Canadian Periodical Fund for our publishing activities. Printed in Canada on recycled stock.

Editor and Publisher rcaira@kostuchmedia.com FOLLOW US:

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SEPTEMBER 2016 HOTELIER

and Hotelier magazine on Facebook hoteliermagazine.com

Checking In THE LATEST INDUSTRY NEWS FOR HOTEL EXECUTIVES FROM CANADA

KEEPING IT CLEAN Inaugural Housekeeping Forum Tackles Key Industry Challenges BY AMY BOSTOCK

n partnership with Ecolab, Hotelier magazine hosted its first-ever Housekeeping Forum last month in Toronto. Designed for housekeeping, industry and commercial cleaning professionals, the forum brought together attendees from across the country to examine trends in the sector — including outsourcing, the challenges of hiring top staff and the impact of technology and products on the housekeeping department. Panels addressed important industry topics and Power 10 — Tips in 10 Minutes sessions were conducted by forum sponsors Canadian Hotel Supply, Knowcross, Novility and Ecolab. Hiring, training and diversity were hot topics. Panelists, including Richard Croshere of Novility, Isabel Carreiro from Doubletree Hilton Downtown, Margaret Readings, operational consultant for CK Atlantis and Park Hyatt Toronto’s executive housekeeper Paul Gingras discussed how they find, train and retain good housekeeping staff. According to Carreiro, hiring for housekeeping has become easier, thanks in large part to online recruiting sites. “There’s a lot out there now for hiring and posting positions, versus the word-of-mouth and referrals we relied on in the past. It’s much easier now to find applicants who meet the job qualifications,” she said. The experts then addressed the sometimes contentious issue of outsourcing hotel housekeeping and laundry operations. Supplier panelists Evan Chu from Jani-King and Paritosh Kumar of Knowcross sat down with housekeeping executives Philippa Akyeampong from Westin Harbour Castle and Nicole Stewart from the Fairmont Royal York to discuss the pros and cons out outsourcing operations in order to increase efficiency. According to Stewart and Akyeampong, the decision to outsource a hotel’s housekeeping needs comes down to hotel-specific operational needs — mainly cost-savings and labour. “You have to look mostly at the bottom line,” says Akyeampong. “If you’re outsourcing, it has to be profitable to your organization.” The final panel of the day brought together hotel housekeeping veterans to talk about major trends impacting the industry. Caring for staff was a hot topic, with all five panelists agreeing the health and well-being of room attendants needs to be a top priority for hotels. u

hoteliermagazine.com

AND AROUND THE WORLD

INDUSTRY EXCELLENCE At last month’s Housekeeping Forum, hosted by Hotelier magazine, editor and publisher Rosanna Caira, presented the inaugural Housekeeper of the Year Award to Paul Gingras, executive housekeeper at the Park Hyatt Toronto. “This award is for everyone here,” said Gingras, who has been a staple of the hotel industry for 50 years.

KEEPING IT GREEN At last month’s Housekeeping Forum, hosted by Hotelier magazine, a panel of experts convened to talk trends in Sustainable Products and Practices. Rachel Dobbs, director of Sustaining Tourism, said when it comes to housekeeping, “there are four major trends — outsourcing, continuous batch washing (using water from first load to wash the next) and waterless washing, staff training and linen re-use programs.” For hotels, there are a number of advantages to undertaking sustainable practices — and for working with suppliers that think the same way, said Frank Stripoli, director of Operations at the Toronto Marriott Downtown. “It’s not only on the costper-room-occupied perspective, it’s also feeling good about the community and lessening pollution.” The bottom line, said Dobbs, is that “Guests expect hotels to be greener. They aren’t going to ask about it at the front desk, they just expect it.” SEPTEMBER 2016 HOTELIER

COMING EVENTS

DOWN THE PIPELINE

Sept. 22: Kostuch Media’s Icons & Innovators Breakfast featuring George Cohon, founder, McDonald’s Restaurants of Canada, Sheraton Centre Toronto Hotel, Toronto. Tel: 416-4470888 x235; email: dpricoiu@kostuchmedia.com; website: foodserviceandhospitality.com/shop Sept. 25-26: 3rd Annual ILHA Luxury Hospitality Summit, Gaylord National Resort & Convention Center, Washington D.C. Website: luxuryhotelconference.com Oct. 4-5: Western Canadian Lodging Conference, Vancouver Convention Centre, Vancouver. Tel: 416-924-2002; email: orieberlasso@bigpictureconferences.ca; website:www.resortinvest.ca Oct. 25: Manitoba Hotel Association Tradeshow, Victoria Inn Hotel, Winnipeg. Tel: 888-859-9976; email: info@mhashow.ca; website: mhashow.ca

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Approximately 1,000 hotel decision-makers attended Avendra’s Supplier Show at Toronto’s Royal York Hotel in July to sample products, network and discover what’s new world from Avendra suppliers. The annual event, which rotates between Montreal and Toronto, featured 133 vendors ranging from foodstuffs to amenities to large equipment. The all-day show has become a popular destination for the hotel community to get better educated in a single venue about the breadth of products and services offered by Avendra suppliers. “As the leading procurement services provider in the hospitality industry, not only do we aggregate and leverage the purchasing volume of our customers to create significant buying power and, consequently, to negotiate the best possible deals with key suppliers, we also invest in value-added services for our customers that they would not invest in to the same extent,” said Afsar Khan, director, Field Support & Customer Relations Central & Eastern Canada, Avendra. “This event is just one more example of how we go above and beyond to earn our customer’s business. In fact, this is our sixth year organizing the event and every year it keeps getting bigger and better.” Capping off the day, Rosanna Caira, editor and publisher of Hotelier magazine, announced a new endowment fund set up by Avendra and CK Atlantis to honour the memory of Kosta Tomazos, former president of CK Atlantis, who passed away earlier this year. A $1,200 scholorship will be awarded annually to a worthy hospitality student. To date, the response to the initiative has been overwhelming with more than half of the $50,000 goal already realized. hoteliermagazine.com

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CANADA’S NATIONAL STANDUP COMEDY CHAIN

According to the latest U.S. Construction Pipeline Trend Report from Lodging Econometrics (LE), Hilton Worldwide projects have grown by 26 per cent in the last year. The company currently has 946 projects and 111,436 rooms under development. Hilton’s top market is Houston with 37 projects. In Washington D.C., where Hilton has the largest pipeline of all other franchise companies, there are 24 projects under development. By the end of Q2, the total U.S. construction pipeline was 4,633 projects and 569,848 rooms, up 15 per cent by projects and 12 per cent by rooms in year-over-year growth. This marked the 15th consecutive quarter of pipeline growth. There is currently a total of 1,381 projects and 184,167 rooms under construction — up by 237 projects or 21 per cent. A total of 2,198 projects and 249,103 rooms are scheduled to begin in the next 12 months — up 480 projects or 28 per cent. Finally, there are 1,054 projects and 136,578 rooms in early planning, a decrease of 10 per cent year-over-year. Q2 was the third consecutive quarter to record a drop in project and room count in early planning.

InBrief Japanese hospitality firm APA Group is buying Okabe North America Inc. (owners of Coast Hotels) from Tokyobased Okabe Co. Ltd. The sale of the Vancouver-headquartered company, worth $210 million, is being made by way of a share-transfer agreement, which was completed July 28. The deal was expected to close early this month…Wyndham Worldwide turned 10 on Aug. 12 and to celebrate, the company announced a new global philanthropic partnership with Save the Children. Wyndham’s first donation of $250,000 will go towards educational programs, which help to provide 7,500 classrooms with new learning materials…Vail Resorts Inc. and Whistler Blackcomb have entered into a strategic business merger that will see Vail Resorts acquire 100 per cent of Whistler Blackcomb stocks…Hilton brands

claimed the top spot in three of five hotel categories in Harris Poll’s 2016 EquiTrend Study: extended-stay, full-service and mid-market. Hilton also ranked high when it comes to loyalty. The Hilton brand, along with Courtyard by Marriott, placed among the study’s top 10 per cent of all brands assessed…Vrancor Group bought two hotels west of Toronto. The company announced in late July it has taken over ownership of the Holiday Inn Hotel & Suites Oakville @ Bronte and the Staybridge Suites OakvilleBurlington…Starwood Hotels & Resorts Worldwide, Inc. reported a loss-per-share of $0.20 from continuing operations, compared to last year’s Q2 EPS of $0.69, in its Q2 earnings summary. Excluding special items, which in Q2 consisted mainly of losses on asset dispositions and impairments of $114 million and restructuring and other special charges of $16 million, EPS from continuing operations was $0.71…

Marriott International, Inc. reported positive results for its second quarter of 2016, along with plans for significant future growth. The company reported net income totalling $247 million in Q2 2016, compared to $240 million in the same quarter of the previous year…Statistics Canada released its 2016 National Tourism Indicators for the first quarter of 2016, revealing positive economic indicators. In Q1 2016, total tourism demand in Canada increased by 3.5 per cent over the previous year, resulting in a total of $17.7 billion in expenditures. Tourism GDP also increased by 5.7 per cent to $6.9 billion…Mississauga, Ont.-based Manga Hotels has acquired the 489-room Crowne Plaza Toronto Airport for an undisclosed price from Etobicoke, Ont.-based Royal Equator, which has quietly sold off its three Canadian properties, including Four Points by Sheraton Toronto Airport and Hilton Garden Inn Toronto/Mississauga.

Know when one thing is not like the other. We ensure the products you buy meet the strictest standards for safety, quality and value. Things may look the same on the surface, but when it comes to buying products for your guests, we know the differences that matter. Our Strategic Contracting and Quality Assurance teams establish and enforce best practices in supply chain sourcing and safety at every level— from growers/manufacturers to your dock. Not only can we help you select the best products for your unique business, we also ensure quality and availability throughout the supply chain. In an industry where safety, customer satisfaction and brand integrity are critical, Avendra keeps careful watch over product quality and service levels.

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People Kirk Jones has been promoted to COO of Benchmark Hospitality International. The company’s Benchmark Resorts & Hotels-brand portfolio merged with Gemstone Hotels & Resorts, bringing the total number of properties managed to 58. Jones was previously senior VP of Finance for Benchmark Hospitality…Loews Hotels recently appointed Alinio Azevedo as VP of Acquisitions and Development. Azevedo will oversee the expansion of Loews Hotels & Resorts, Loews Regency and the OE Collection brands. With 20 years of industry experience, Azevedo comes from Four Seasons Hotels and Resorts. … AccorHotels has promoted Kevin Frid to the position of COO for North and Central America. This represents one of AccorHotels’ first senior-management appointments

since the recent acquisition of FRHI Hotels & Resorts, where Frid served as president, Americas. In his new role, Frid will have operational responsibility for 88 hotels across the North and Central American region. As the lead operations executive in the region, he will also be tasked with overseeing large-scale renovation and refurbishment projects.

SupplySide TravelClick is introducing a new solution called Media Suite. The software is designed to help increase direct hotel bookings, utilizing the company’s proprietary data to strengthen the performance of paid media. Also available with Media Suite as a single media subscription is TravelClick’s Rate360 application. Together, these technologies allow hotels and media campaign manag-

The Cellar By Araxi Whistler, B.C.

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ers to monitor hotels’ standings with online travel agencies and increase direct bookings and revenue generated from paid search and display media…Targetvue, the new hospitality-driven budgeting and forecasting solution from Aptech, allows operators to compare performance against budgets create accurate forecasts. Aptech joined forces with Mississauga, Ont.-based Prophix Software to develop a completely new budgeting and forecasting application, fully integrated with its Profitvue accounting and Execuvue business intelligence systems. Targetvue eliminates the need to correct and recombine multiple spreadsheets for consolidating and reporting. Its budgeting and planning property data moves between Aptech’s Profitvue Accounting and Execuvue Business Intelligence Prophix Software systems without manual intervention to streamline the budgeting process.

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EDITORâ&#x20AC;&#x2122;S THE HOSPITALITY PAGE MARKET REPORT

Time to Shine Strategies to maintain vibrancy and innovation in a volatile world

STORY BY MICHAEL HAYWOOD | ILLUSTRATION BY JEM SULLIVAN

s a travel destination, Canada has a great deal going for it. A glowing reputation for the Canada b r a n d ; 8

SEPTEMBER 2016 HOTELIER

favourable exchange rates driving visitation and enhancing purchasing power; the natural beauty, friendliness and safety of our destinations, resulting in a 7.5-per-cent spike in total international arrivals during 2015; considerable growth in domestic tourism

(600,000 more pleasure trips according to the Conference Board of Canada); a greater propensity for outbound travel from U.S. consumers (arrivals up by 8.3 per cent from 2014) due to strong U.S. economic indicators; and a reluctance on the part of tourists to travel to other hoteliermagazine.com

LOOKING BACK

countries associated with unrest and terrorism. In addition, the steady economic outlooks and consumer confidence indicators have led to a calmer new normal, in which cyclical spurts in growth of supply have moderated. With hoteliermagazine.com

supply and demand in sync, hoteliers felt sufficiently confident in advancing ADRs by a solid 4.5 per cent, resulting in an overall RevPAR of 3.3 per cent — despite setbacks in regions hit hard by declining exports and falling oil and commodity prices. Of course, it

helps when communities re-affirm the importance of developing and renewing commitments to tourism; and when the federal government relaxes visa requirements and tops up Destination Canada’s marketing budget by $50 million over two years (though it’s still less SEPTEMBER 2016 HOTELIER

than it was in 2012). The industry finally seems to be flourishing — a condition characterized by positive emotions and relationships, as well as a stronger sense of connection, purpose and accomplishment. It’s a condition, nevertheless, which has to be constantly cultivated and nurtured. In a world fraught with unexpected volatility, complacency is not an option — nor is maintaining the status quo. In fact, with hotel profits constrained, there is still system-wide angst. Online travel agencies continue to insert themselves between hotels and customers. When booking fees and the transparency of rate comparisons are combined with higher costs for renovation and digital and marketing initiatives, expect industry consolidation and a slew of mergers and acquisitions, such as the Marriott/Starwood deal, to ratchet up. Throw into the mix home-sharing operators, such as Airbnb, which are rapidly gaining customer loyalty and market share through low-cost platforms, and you find hoteliers being forced to find new and better ways to connect with customers and guests, encourage direct booking, individualize services, increase visibility and create new value through better insight and advantageous innovation.

WHILE THERE IS LITTLE DOUBT THE CURRENT OUTLOOK FOR REVENUE GROWTH REMAINS RELATIVELY POSITIVE, THE PROFIT PICTURE SEEMS PRONE TO STAGNATION

SEPTEMBER 2016 HOTELIER

EXHIBIT 1

OCCUPANCY, ADR & RevPAR

National, provincial, major markets 2014 to 2015 % change

Occupancy ADR Location 2015 Point Change** 2015 Variance

RevPAR 2015 Variance

NEWFOUNDLAND

63.7%

-2.7

$146.99

-0.2%

$93.58

-4.3%

PRINCE EDWARD ISLAND

53.1%

2.6

$128.19

3.8%

$68.02

9.1%

NOVA SCOTIA

61.7%

2.1

$127.84

4.9%

$78.85

8.6%

64.1%

2.0

$133.99

4.8%

$85.92

8.2%

NEW BRUNSWICK

54.4%

-0.3

$114.90

4.1%

$62.54

3.5%

QUEBEC

66.4%

1.2

$151.86

4.7%

$100.76

6.6%

Greater Quebec City

63.0%

0.2

$161.01

6.4%

$101.44

6.7%

Greater Montreal

70.9%

1.6

$153.53

5.2%

$108.78

7.6%

65.2%

1.1

$138.62

5.8%

$90.39

7.6%

Greater Toronto Area (GTA) 70.8%

0.5

$148.31

6.1%

$105.04

6.8%

Ottawa

72.0%

2.1

$149.56

4.2%

$107.67

7.2%

Niagara Falls

64.2%

2.8

$157.28

11.5%

$100.94

16.6%

62.6%

0.2

$120.09

2.2%

$75.14

2.5%

62.9%

0.5

$125.61

1.6%

$79.00

2.4%

SASKATCHEWAN

58.7%

-5.2

$131.85

-0.9%

$77.44

-9.0%

ALBERTA (excl. Alta. resorts)

58.7%

-9.1

$140.03

-2.4%

$82.24

-15.6%

Calgary

64.3%

-5.6

$157.47

-4.9%

$101.27

-12.6%

Edmonton

63.0%

-6.6

$135.64

-1.1%

$85.44

-10.6% 12.6%

Halifax/Dartmouth

ONTARIO

MANITOBA Winnipeg

BRITISH COLUMBIA

66.1%

2.2

$153.15

8.8%

$101.23

76.0%

3.4

$162.91

11.8%

$123.75

17.1%

NORTHWEST TERRITORIES

65.8%

-1.9

$156.77

-0.3%

$103.15

-3.1%

YUKON

63.7%

-1.8

$119.32

7.7%

$76.05

4.7%

Greater Vancouver

CANADA 63.6% -0.7 $143.71 4.5% $91.34

3.3%

Based on the operating results of 223,202 rooms (unweighted data) ** Please note that the variance between current and previous year occupancy is reported as a point change and not as a percentage variance. S O U R C E : P K F C O N S U L T I N G I N C . , A C B R E C O M PA N Y

Continuing success and favourable operating conditions have never been a given. While there is little doubt the current outlook for revenue growth remains relatively positive, the profit picture seems prone to stagnation. Consider the research conducted by the U.S.-based Zacks Investment Services, which ranks the hotel industry in 164th place out of 260 evaluated, thereby giving it a near-term “neutral” assessment. So, what to do? In a nutshell, find ways to overcome strategic inertia — suggestions for which will flow from a more in-depth understanding of the economic, tourism and hotel operational conditions.

ECONOMIC CONTEXT

Hotels in Canada are benefitting from “staycations.” When a proposed $4,000 USD visit costs a family the equivalent of $5,200, the decision to abandon going south seems sensible, reconfirming the importance of domestic tourism. And, when a state-side family realizes a typical $4,000 USD holiday can be purchased for approximately $3,100 in Canada, the decision to head north seems like a no-brainer. While many travel decisions today are being made on the basis of currency exchange rates, there are demographic, psychological and motivational factors that can, and will, counter so-called rational behavhoteliermagazine.com

HOTELIERS NEED TO TAKE ADVANTAGE OF THIS WINDOW OF OPPORTUNITY TO CREATE POSITIVE IMPRESSIONS iour. Consequently, smart hoteliers are taking time to better understand what constitutes “value.” The Canadian dollar has been, and will continue to be, affected by the strength of the U.S. economy. While a slight rebound in crude oil prices has helped pull the loonie from its extreme lows, most economic forecasters suggest sluggish economic growth patterns (compounded by the impact of the Alberta wildfires on the energy sector) and the U.S. Federal Reserve policy prospects, will not alter the value of

Canadian currency until the latter part of 2017. Hoteliers need to take advantage of this window of opportunity to create positive impressions, as the benefits of exchange rate discrepancies will eventually vanish. Indeed, hospitality industry assessments by CBRE and Scotiabank point to a softening of prospects for 2016. Recent events such as terrorist attacks and Brexit concerns are bound to create a slowdown in economic growth, along with investor concern and shifts to safe-haven investments. While weakness is bound to be U.K. and E.U.-centered, the spillover effects from reduced trade and financial activity will effect business travel. Consequently, Scotiabank is forecasting real GDP growth at a very modest 1.3 per cent during 2016, compared to world GDP growth, which is expected to hover around three per cent. With the resource sector continuing to

EXHIBIT 2

OCCUPANCY & ADR By property size, property type and price level, Canada 2014 to 2015

Occupancy 2015 2014

**Point Change

ADR 2015

2014

Variance

PROPERTY SIZE Under 50 rooms 50.2% 52.0% -1.8 $106.14 $104.72 1.4% 50 to 75 rooms 57.8% 59.2% -1.5 $111.67 $109.84 1.7% 76 to 125 rooms 61.4% 63.0% -1.6 $126.92 $123.46 2.8% 126 to 200 rooms 64.8% 64.9% -0.1 $131.81 $127.10 3.7% 201 to 500 rooms 66.5% 66.3% 0.2 $165.00 $155.79 5.9% Over 500 rooms 71.0% 71.6% -0.6 $195.72 $181.80 7.7% TOTAL 63.6% 64.2% -0.7 $143.71 $137.58 4.5% PROPERTY TYPE Limited-service 59.0% 60.7% -1.7 $113.81 $110.54 3.0% Full-service 66.0% 66.6% -0.6 $151.45 $144.82 4.6% Suite hotel 71.0% 70.4% 0.6 $152.93 $144.00 6.2% Resort 59.1% 56.3% 2.8 $212.85 $200.03 6.4% TOTAL 63.6% 64.2% -0.7 $143.71 $137.58 4.5% PRICE LEVEL Budget 55.4% 55.3% 0.1 $91.24 $87.40 4.4% Mid-price 65.5% 66.7% -1.1 $139.76 $135.03 3.5% Upscale 68.0% 68.4% -0.5 $223.44 $209.08 6.9% TOTAL 63.6% 64.2% -0.7 $143.71 $137.58 4.5% Based on the operating results of 223, 202 rooms (unweighted data) ** Please note that the variance between current and previous year occupancy is reported as a point change and not as a percentage variance. S O U R C E : P K F C O N S U L T I N G I N C . , A C B R E C O M PA N Y

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falter, underperforming exports and business investments in a slump, economic and employment momentum is contingent on stronger exports to a more vibrant U.S. economy that itself could be thrown for a loop, given the uncertain outcomes associated with current political tensions and elections. TRAVEL AND TOURISM

In terms of international arrivals, as a country-wide destination, Canada has dropped from eighth to 17th spot. Despite this — for which there are many explanations — the number of visitors continues to grow. In its December 2015 Tourism Snapshot report, Destination Canada reported arrivals increased 7.5 per cent yearover-year during the 2015, well above the global growth rate of 4.4 per cent recorded during the same period. Arrivals from Canada’s 10 major overseas markets, including the U.S., jumped 7.9 per cent compared to 2014. In terms of all four world regions, arrivals were up — the U.S. recorded an increase of 8.3 per cent (reaching close to 12.5 million, the best showing since the 2008/’09 financial crisis); visitors from Asia/Pacific increased by 7.7 per cent; Latin America accounted for a 13.3-per-cent increase; and Europe sent four per cent more visitors to Canada than the previous year. Based on transportation modes, arrivals by automobile increased 9.9 per cent, air 6.4 per cent and other modes 4.8 per cent. France, Australia, China, India and Brazil registered their highest level of visitation to Canada ever during 2015. While these statistics reveal considerable progress, only Ontario, Quebec, B.C. and Manitoba seem to have benefitted, as international arrivals declined both in the Atlantic and Prairie regions. ACCOMMODATION INDUSTRY PERFORMANCE

Despite the varied results and benefits derived from international visitors, 2015 was generally a good year for hoteliers across the country. As CBRE reports, the industry finished the year with an average occupancy rate down 0.7 points to 63.6 per cent, though SEPTEMBER 2016 HOTELIER

ADR advanced 4.7 per cent to $143.71, which translates into a EXHIBIT 3 3.3-per-cent increase in RevPAR PERCENTAGE CHANGE IN SUPPLY, DEMAND to $91.34 (see Exhibit 1 on p. 10). & OCCUPANCY RATES (2010 to 2015) In accordance with economic conditions, seasonality and des 2010 2011 2012 2013 2014 2015 tination appeal, occupancies in Occupancy Rate 60.2% 61.1% 61.8% 62.7% 64.2% 63.6% Western Canada fell 2.8 points Point Change 0.0 0.9 0.7 0.9 1.5 -0.6 to 62.3 per cent, with ADR rising Supply (# rooms)* 367,760 371,951 374,381 376,753 379,256 384,315 3.8 per cent to $148.17, resulting % Change 0.0% 1.1% 0.7% 0.6% 0.7% 1.3% in RevPAR of $92.30 — down 0.6 Average Demand Per Day 221,392 227,262 231,367 236,224 243,482 244,424 per cent from 2014. In Alberta, % Change 0.0% 2.7% 1.8% 2.1% 3.1% 0.4% the carnage was more palpable as occupancies fell 9.1 points to 58 * The national supply results are based on year-round properties with 30-plus rooms per cent, ADR dropped 2.4 per S O U R C E : P K F C O N S U L T I N G I N C . , A C B R E C O M PA N Y cent to $140.03 and RevPAR was down by 15.6 per cent to $82.40. Alberta resorts seemed unaffected, per cent to $141.77 and RevPAR RevPAR up 8.6 per cent to $78.85. with occupancies climbing 2.5 points was up 7.4 per cent to $92.86. One Taking into account property size to 62.3 per cent, ADR increasing by of the bright spots was Niagara Falls, (see Exhibit 2 on p.11), the larger 8.4 per cent to $232.32 and RevPAR with occupancies in that city climb- the property, the higher the average growing 12.8 per cent to $144.83. ing 2.8 points to 64.2 per cent, ADR occupancy and ADR. It’s interesting Saskatchewan also fell victim to was up an astounding 11.5 per cent to note, however, how point change falling demand. Manitoba advanced to $157.28 and RevPAR jumped 16.6 in occupancies did not differ considslightly, while B.C. occupancies per cent to $100.94. The Greater erably among property sizes. Resorts recorded an average increase of Toronto Area boasted occupancies advanced the most in terms of occu2.2 points. ADR in that province of 70.8 per cent (up 0.5 per cent), pancies, up 2.8 points to 59.1 per advanced 8.8 per cent to $153.15 ADR of $136.62 (up 5.8 per cent) cent. While suite hotels enjoyed a 71 and RevPAR was up 12.6 per cent to and RevPAR at $105.04 — up 6.8 per per cent occupancy rate, they only $101.23. As the results from Greater cent. In Quebec, Greater Montreal advanced 0.6 points. In reference to Vancouver reveal, the area boomed. enjoyed a 70.9 per cent occupancy price levels, shifts in occupancy levels Occupancies rose 3.4 points to 76 per rate, up 1.6 points, and an ADR of were not significantly different — cent, ADR was pushed up 11.8 per $153.53, up 5.8 per cent. RevPAR though the rate of change in ADR cent to $62.91, resulting in RevPAR jumped 7.6 per cent to $90.39. was. For example, upscale properties of $123.75. And again it was Whistler, Performance in Atlantic Canada were able to grow their ADR by 6.9 one of Canada’s iconic resort areas, was steady. Occupancies rose 0.5 per cent to $223.44, compared to which performed well, with occupan- points to 58.7 per cent. ADR budget properties that advanced 4.4 cies advancing 2.6 per cent to 62.2 per advanced 3.4 per cent to $127.25, per cent to $91.24. cent, ADR increasing by 10.4 per cent resulting in RevPAR at $74.69, up In assessing the relative balance to $241.13 and RevPAR skyrocketing 4.2 per cent. Newfoundland did not between supply and demand for hotel 15.2 per cent to $149.90. fare well, while Nova Scotia was more rooms (see Exhibit 3), between 2011 Regionally, central Canada fared buoyant with occupancies climbing and 2014, demand outpaced supbest with occupancies up 1.1 points 2.1 points to 61.7 per cent, ADR grew ply. During 2015, demand grew 0.4 to 65.5 per cent, ADR advanced 5.5 4.9 per cent to $127.84 resulting in per cent to 244,424 room nights, EXHIBIT 4 LODGING DEMAND (2010 to 2015)

2010 % Change 2011 % Change ROOM NIGHTS 80.81 0.0% 82.92 2.6% (Millions)

REVENUES ($ Billions)

$10.31

0.0%

$10.53

2.2%

2012

% Change 2013

% Change

2014

% Change

2015 % Change

84.45

1.8%

86.22

2.1%

89.01

3.2%

89.21

0.2%

$10.93

3.8%

$11.42

4.5%

$12.22

7.0%

$12.82

4.9%

NOTE: Revenues (Room Nights X ADR) S O U R C E : P K F C O N S U L T I N G I N C . , A C B R E C O M PA N Y

SEPTEMBER 2016 HOTELIER

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while supply advanced 1.3 per cent to 384,315 rooms. Calculations for lodging demand throughout 2015 (see Exhibit 4 on p.12) reveal revenues from 89 million room nights totalled $12.8 billion (not including food, beverage and incidental revenues) — a healthy 4.9 per cent increase from 2014. STRATEGIC PREPAREDNESS

Given that it has been eight years since the great recession, it’s finally time for hope, though perhaps not celebration. Hotels are full. Inflationary pressures are virtually non-existent. Domestic tourism is strong as the dollar is a barrier to exit. There has been, and will continue to be, an upsurge in arrivals from the U.S. and other international markets anxious to partake of the Canadian experience. Excess capacity has been soaked up. In some markets, RevPAR growth is in the double digits. The federal government is on side with the industry. A great deal of investment money is looking for a home, though increases

A LUXURY SUITE OF HOTELS IN CANADA. For over 50 years, Oxford has led the Canadian marketplace in service and scale. Oxford owns a collection of luxury hotel and resort properties across Canada which represent some of the most renowned experiences the country has to offer and which are located in some of the country’s most treasured locations. www.oxfordproperties.com

in land prices and construction costs will keep a lid on (over) development of new properties. Cap rates are low. Sovereign funds are looking for safe investments and Brexit may drive capital to Canada. Nevertheless, we live in a volatile and disruptive world in which resilience is always a major challenge. It’s not enough to have a digital strategy or a recognizable brand. Both are important, but must be incorporated into overall business strategies that resonate with visitors — brand differentiation is no longer sufficient. Different types of visitors or guests want to be wowed not only by the hotel experience, but by the entire destination experience at all touchpoints executed with precision, otherwise business will flow elsewhere. Senior executives are reinventing the art of strategic conversation because today people desire jobs that are meaningful. Getting everyone involved in identifying and considering potential threats, disruptions and

opportunities over distinct time horizons is the sine qua non for strategic preparedness. To keep guests and visitors from straying, hoteliers must also commit to, and build the capabilities for, innovation. Small projects — some in collaboration with others within your market— are important ways to test new technologies, market opportunities, business models and emerging talent. In other words, the new normal demands an intense focus on creating and capturing new value in ways that either disrupt the competition or enhance novelty, excitement, trust and loyalty in ways that matter. Flourishing — remaining vital and vibrant — is a constant work-in-progress. u Michael Haywood is president of The Haywood Group, a tourism/hospitality consultancy. He can be reached at michael.haywood@sympatico.ca

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NATIONAL MARKET OUTLOOKS

Accommodation sector performance is expected to continue to see performance disparity between resourcedependent markets and the rest of the country in 2016. Nationally, RevPAR increased by 3.5 per cent in 2015, with demand growth basically flat, holding occupancy at 64 per cent. Despite muted demand growth, ADR grew by 4.7 per cent in 2015, the strongest growth since pre-2001. Going into 2016, our expectation was for a gradual recovery across some struggling markets. However, as the resource sector is now not expected to begin recovery until 2017, further declines are expected for the remainder of 2016. Nationally, supply is outpacing demand while ADR is showing only limited growth. These trends are expected to continue throughout the latter half of the year and lead to a year-end occupancy of 63 per cent. Moderate rate growth will result in a year-end increase in RevPAR of two per cent. NATIONAL

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 62% 63% 64% 64% 63% ADR $129 $133 $137 $144 $147 RevPAR $80 $83 $88 $91 $93

BY PKF CONSULTING INC., A CBRE COMPANY

SEPTEMBER 2016 HOTELIER

13 MAJOR MARKETS

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 66% 67% 69% 69% 69% ADR $134 $138 $143 $151 $154 RevPAR $89 $92 $98 $103 $106

With a supply growth of almost one per cent in the balance of Canadian markets, and an expected decrease in demand of 0.6 per cent, occupancy is projected to remain flat across the rest of the country as well. ADR is projected to improve to $140, up about two per cent, resulting in RevPAR increasing to $82. OTHER MARKETS

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 58% 59% 61% 59% 59% ADR $125 $128 $132 $137 $140 RevPAR $72 $75 $80 $81 $82

In 2015, occupancy for full-service hotel properties decreased by one point as supply growth outpaced demand. ADR improved by $7, or about five per cent, to $151 in 2014 and RevPAR rose by $4, or about four per cent, to $100. With a projected supply increase of approximately one per cent in 2016 and a projected increase in demand of one per cent, occupancy in this segment is expected to remain flat. This segment is expected to see only moderate ADR growth, with an expected increase of $5 to $156. As a result, RevPAR is projected to increase by $3 to $103. hoteliermagazine.com

FLAG GRAPHIC BY DREAMSTIME.COM

n 2015, the Canadian accommodation industry was negatively impacted by the decline in the natural resource sector. The oil-and-gas, mining and natural resource industries had a significant impact on a number of Canadian markets and regions. With the decline in prices for these resources, corporate demand in some markets has dropped, followed by loss of employment and, subsequently, consumer confidence. This trend is expected to continue through 2016. In addition, many of these markets are being impacted by significant new supply.

The outlooks for the 13 major markets consist of six cities in Western Canada and seven in Eastern Canada, which are considered the strongest influencers of national performance. Combined, Canada’s 13 major markets represent an estimated 46 per cent of total national rooms supply. As a group in 2015, these markets realized a 5.3-per-cent increase in RevPAR. Niagara Falls saw the most significant improvement at 16.6 per cent, followed by Vancouver at 16.9 per cent, Toronto and Montreal at 7.7 per cent, Halifax at 7.5 per cent, Ottawa at 7.1 per cent, Quebec City at 6.3 per cent and Winnipeg at 2.8 per cent. A delayed recovery in the natural resource sector, combined with supply increases in some markets, resulted in a RevPAR decline of 13.2 per cent in

Calgary, 10.4 per cent in Saskatoon, 9.3 per cent in Regina, 7.8 per cent in Edmonton and 7.1 per cent in St. John’s. Overall Canada’s major urban markets are projected to see modest RevPAR growth in 2016. Occupancy is expected to remain flat as a result of supply increases offsetting demand growth. ADR is expected to show only moderate growth of approximately two per cent, resulting in a projected RevPAR increase of 2.3 per cent.

FULL-SERVICE HOTELS

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 64% 65% 67% 66% 66% ADR $135 $138 $144 $151 $156 RevPAR $87 $90 $96 $100 $103

Demand for limited-service hotels declined in 2015 by 1.3 per cent, while supply increased by 1.4 per cent. This led to a two-point decrease in occupancy in 2015. However, ADR increased by 3.1 per cent to $114, an increase of $14 over 2014. The decrease in occupancy was offset by ADR growth and resulted in flat RevPAR in 2015. For 2016, the limited-service segment is expected to see demand growth of one per cent. No ADR growth is expected, resulting in flat RevPAR in this product segment for the second year in a row. LIMITED-SERVICE HOTELS

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 58% 59% 61% 59% 59% ADR $104 $107 $110 $114 $114 RevPAR $61 $64 $67 $67 $67

MAJOR MARKET OUTLOOKS

verall, Canada’s major urban markets are projected to experience moderate RevPAR growth in 2016, led by strong growth in markets such as Vancouver, Toronto, Niagara Falls, Winnipeg, Montreal, Quebec City and Halifax. Conversely, Edmonton, Saskatoon, Regina, Calgary and St. John’s will see a decline in performance in 2016 as the delayed recovery of the natural resource industries

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and supply growth continues to impact the accommodation industry in these markets. VANCOUVER

Metro Vancouver is a bright spot in the Western Canadian economy, with GDP growth of between 2.6 per cent and 3.8 per cent per annum from 2013 to 2015. The city is expected to continue to lead the country in GDP growth through to 2020. Strong construction output, the low Canadian dollar and manufacturing are expected to allow Metro Vancouver to achieve GDP growth of 3.2 per cent in 2016. With total overnight visitation growth estimated at 5.1 per cent in 2015 and 4.1 per cent in 2016, the city’s accommodation sector is expected to perform well in the near term. Occupancy is projected to improve to 78 per cent for year-end 2016 — limited only by functional capacity issues with little new supply entering the market. In addition to increasing demand, changes in supply have helped boost market occupancy in recent years. There have been moderate declines in supply with the permanent closures of some hotels throughout the submarkets. Alongside the strengthening demand, average daily rates for the Metro Vancouver market have grown significantly since 2012. By yearend 2016, ADR is projected to reach $175, a gain of approximately seven per cent. Overall, market RevPAR is expected to be $12, or 10 per cent, ahead of 2015 results. VANCOUVER

2012 2013 2014 2015 2016

reductions in capital spending on exploration projects located both within Alberta and further abroad, have resulted in lower accommodation-room demand throughout the city. Calgary experienced a 2.5-percent decline in GDP in 2015 and is projected to experience a further decline of one per cent in 2016. Total overnight travel also declined in 2015 by 0.3 per cent, with a modest increase of 1.1 per cent expected in 2016. This was led by a significant drop in domestic corporate travel in 2015, as well as a soft outlook for the domestic pleasure travel market. Visitation from the U.S. and overseas comprise the majority of growth in total travel in both 2015 and 2016. In addition to demand declines, annualized room supply in Calgary is projected to increase by 6.8 per cent in 2016, following growth of 3.3 per cent in 2015. New rooms are opening in the downtown, northeast/airport and south markets. With the decrease in room demand and increase in supply, overall occupancy is projected to fall to 57 per cent for year-end 2016, down from 64 per cent in 2015 and 70 per cent in 2014. In an effort to gain or retain market share, operators have lowered rates in the metro Calgary area, with ADR down $10 between 2015 and 2014 and a further decline of $12 projected in 2016. In 2016, RevPAR is projected to decrease by approximately 19 per cent to $82. This represents a decline of approximately $35, or 30 per cent, since 2014. CALGARY

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 67% 69% 73% 76% 78% ADR $135 $138 $146 $163 $175 RevPAR $91 $96 $106 $124 $136

Occupancy 71% 73% 70% 64% 57% ADR $156 $162 $167 $157 $145 RevPAR $110 $118 $117 $101 $82

EDMONTON CALGARY

Of the 13 major markets, Calgary felt the most significant impact of the decline in oil prices and softness in resource markets. Layoffs, project delays and cancellations, as well as

The decreases in capital spending by oil-and-gas firms that began in 2015 have persisted into 2016 and continue to impact the Edmonton accommodation sector. The construction industry has been one of the hardest hit, as SEPTEMBER 2016 HOTELIER

well as manufacturing, wholesale and retail trade and utilities. Edmonton’s GDP contracted by 1.5 per cent in 2015 and is projected to decline by an additional 0.6 per cent in 2016. As oil prices begin to recover beyond 2017, so too will Edmonton’s GDP output. The travel industry was also impacted in 2015 and 2016, with declines in corporate travel as well as domestic leisure travel. Total room supply in Edmonton is projected to increase by 4.4 per cent in 2016, with a number of new hotels opening in the airport/south region, the downtown core and in Edmonton West. With supply increasing and room demand projected to decrease, overall occupancy for the Edmonton market is projected to be 59 per cent for 2016, down from 63 per cent in 2015. ADR is also projected to decrease in 2016, declining by four per cent to $130. Overall, RevPAR for the Edmonton market is projected to decline by approximately 10

per cent to $77. EDMONTON 2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 67% 70% 69% 63% 59% ADR $122 $127 $134 $136 $130 RevPAR $81 $89 $93 $85 $77

REGINA

After a 2.8 per cent drop in demand in 2015, Regina is on pace to see six per cent demand growth in 2016. Despite this, significant supply increases are expected to result in a two-point decline in market occupancy in 2016 to 60 per cent. Similarly, market average daily rate decreased 2.5 per cent in 2015 and is expected to remain flat in 2016. Overall, RevPAR for the Regina market in 2016 is projected to be $3, or four per cent, below 2015 results. Regina has felt the impact of challenged resource markets as well, with a 0.5-per-cent decline in GDP

in 2015. However, in 2016, GDP is expected to grow by 0.7 per cent, based on a slow recovery in the goods sector and stronger growth in the services sector. Construction activity is also picking up, with the construction of the $1.9 billion Trans-Canada Highway bypass that will route around the city. Within the accommodation sector, the market experienced close to five per cent supply growth in 2013, followed by more than 13 per cent in 2014 and a further five-per-cent in 2015. This is to be followed by supply growth of 10 per cent in 2016. These significant increases have led to continued declines in market occupancies over the past few years. REGINA

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 73% 75% 67% 62% 60% ADR $125 $133 $134 $131 $131 RevPAR $91 $100 $90 $82 $79

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SASKATOON

Soft-resource prices, including oil, potash and canola, have continued to negatively impact Saskatoon’s economy. Following a GDP decline of 1.3 per cent in 2015, the Conference Board of Canada predicts economic output will stabilize in 2016, with 0.9 per cent GDP growth. Both the manufacturing and construction sectors are expected to pick up pace in the near term, with some major projects happening in 2016. Saskatoon’s accommodation sector is experiencing significant roomsupply growth in 2016. Following a jump of 8.9 per cent in 2015, supply is expected to increase by a further eight per cent in 2016. These increases in supply, combined with a slowdown in overall demand levels, resulted in an occupancy decline of seven points in 2015. In 2016, demand is projected to remain flat and occupancy will decline another five points, down to 60 per cent. The new supply is opening in the airport area, in south Saskatoon and also east of downtown. With lower demand levels and an influx of new supply, the lack of compression within this market saw rates drop by 0.5 per cent to $146 in 2015. Rates are continuing on a downward trajectory in 2016 and are projected to decline by a total of six per cent to $137. RevPAR for the Saskatoon market is projected at $83 for 2016, down $12 — or approximately 13 per cent — from 2015 levels. SASKATOON

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 74% 73% 72% 65% 60% ADR $140 $146 $147 $146 $137 RevPAR $104 $106 $106 $95 $83

WINNIPEG

In 2015, the Winnipeg accommodation sector was one of the few markets in Western Canada to see improvement in its performance. This relatively healthy economy is experiencing solid GDP, employment and population growth and this trend is expected to continue in the near hoteliermagazine.com

FINANCIAL OUTLOOK Over the last few years, the Canadian accommodation industry has posted steady gains in profitability, allowing it to make progress towards reaching pre-recession (Adjusted Net Operating Income) ANOI levels. In both 2012 and 2013, slow occupancy and rate growth — generally in line with inflation — slowed this progress with ANOI increasing by 7.5 per cent in 2012 and 5.6 per cent in 2013. However, in recent years, the inability of many markets to drive rates has hampered its progress. In 2014, ANOI increased by 13.5 per cent, reaching $10,843 per-available-room as a result of much stronger rate growth and subsequently strong gains in revenues nationally. In 2015, occupancy remained flat as demand growth was hampered by limited performance in many resource-reliant markets such as Calgary, Edmonton and St. John’s. Supply increases slightly outpaced demand in 2015. Despite this, strong rate growth of 4.7 per cent was achieved in 2015 and as a result, ANOI increased by 7.9 per cent in this year. The Canadian accommodation industry has shown profitability growth in the last few years and in 2015 surpassed pre-2008 profitability levels. With the first half of 2016 showing no signs of immediate recovery in the global oil and natural resource markets, the outlook for 2016 is looking somewhat muted. While the losses being felt in resource-reliant markets has been somewhat offset by strong leisure demand and gains in the manufacturing sector, occupancy is still expected to decline by one point between 2015 and 2016. Rate growth is also expected to show more limited growth in comparison to 2015, at only 2.4 per cent. This is expected to result in only a slight increase in industry profitability — 0.8 per cent to $11,793. While still ahead of pre-recession levels, 2016 is expected to be a slow year for growth compared to the upward trajectory of the Canadian accommodation industry from the last few years.

NATIONAL FINANCIAL OUTLOOK ADJUSTED NET OPERATING INCOME (1)

2013

2014

$9,557 $10,843

2015(e)

2016(f)

$11,703

$11,793

S O U R C E : P K F C O N S U L T I N G I N C . , A C B R E C O M PA N Y

For the purposes of this analysis, Adjusted Net Operating Income is defined as income after property taxes, insurance, management fees, franchise fees and capital reserves but before rent, interest, income taxes, depreciation and amortization.

future. The travel sector experienced growth of 4.1 per cent in 2015, with some significant city-wide events such as FIFA Women’s World Cup and the CFL’s Grey Cup. Travel outlooks show continued growth in 2016. In addition, the local goods, manufacturing and construction sectors are expected to lead GDP growth in 2016. Supply in Winnipeg is expected to contract in 2016 for the first time since 2010 with the closure of Place Louis Riel hotel impacting the market. Even with modest demand growth of one per cent, occupancy is projected to increase to 65 per cent as a result of the decrease in available rooms. The market is expected to be flat in 2016 at $126. Overall, RevPAR is

projected to improve more than three per cent to $82. WINNIPEG

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 66% 63% 62% 63% 65% ADR $120 $122 $124 $126 $126 RevPAR $79 $77 $77 $79 $82

TORONTO

Driven by both increased occupancy and ADR growth, the accommodation sector in Toronto experienced healthy RevPAR growth of 7.2 per cent in 2014. It only got better in 2015 with an increase of 7.7 per cent based on higher demand and rate growth as a result of SEPTEMBER 2016 HOTELIER

increased demand in the shoulder periods. Major events, such as IIHF World Junior Hockey Championships, helped to boost tourist visitation in typically low-demand periods. Demand levels in 2016 are forecast to improve by 3.8 per cent for Toronto, based on strong economic indicators and healthy demand from all segments. Again, large scale events in low and shoulder seasons are expected to boost demand and ADR levels for the year. In addition, the construction sector is expected to lead economic growth for the city, with non-residential investment activity experiencing strong growth. Accommodation demand growth is projected to outpace supply growth in Toronto, resulting in an overall occupancy of 73 per cent in 2016, reflecting demand growth of 3.8 per cent and ADR growth of four per cent. While growth in the Metro Toronto area is expected to be strong, it is being led by the downtown core, which will see very strong demand and ADR increases, while some sub-markets will lag behind, particularly in terms of rate growth. Overall, RevPAR is projected to reach $113 in 2016, an increase of 7.8 per cent over 2015 and a reflection of strong accommodation demand across all market segments.

tional capacity issues and the seasonality of this market are expected to provide some limitations on the growth possibilities. The weaker Canadian dollar is expected to continue to contribute to growth in this market as U.S. travel numbers increase and more Canadians choose to travel domestically. There has also been improved ancillary product within the market, which has allowed for hotels to tap into a client base with a higher discretionary income level than in past years. With the closure of the Comfort Inn Clifton Hill impacting the market in 2016, functional capacity is expected to result in slightly more muted demand growth in 2016. Demand is projected to increase by 1.5 per cent, while ADR is expected to increase by four per cent to $164. Improved occupancy and ADR will result in RevPAR growth of seven per cent, an increase of $6. The overall market is projected to produce one of its best top-line performances on record in 2016.

TORONTO

OTTAWA

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 66% 68% 70% 71% 73% ADR $130 $134 $139 $148 $155 RevPAR $86 $91 $97 $105 $113

NIAGARA FALLS

In 2015, the Niagara Falls market experienced significant improvements in performance. As supply contracted by 0.2 per cent, the low Canadian dollar led to increased tourist visitation and demand growth of 4.4 per cent. ADR increased by 11.5 per cent to reach $157. This resulted in an overall RevPAR increase of 16.6 per cent in 2015. The forecast for 2016 reflects the continued growth for this market, although slightly more modest as func20

SEPTEMBER 2016 HOTELIER

in the downtown and Ottawa West markets. Leading up to the 150th anniversary of Confederation in 2017, largescale legacy projects, including the construction of the Confederation LRT line and the Arts Court redevelopment, have helped spur economic growth. As supply increases by 5.8 per cent in 2016, demand is projected to increase by four per cent, resulting in a slight decline in overall occupancy to 71 per cent. Market ADR is projected to increase by two per cent to $153. With supply growth matching the growth expected in demand and modest ADR growth, RevPAR is expected to be flat in 2016. OTTAWA

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 70% 68% 70% 72% 71% ADR $141 $140 $144 $150 $153 RevPAR $98 $96 $101 $108 $108

NIAGARA FALLS, ONT.

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 59% 59% 61% 64% 66% ADR $130 $133 $141 $157 $164 RevPAR $77 $78 $87 $101 $107

In 2015, the Ottawa market experienced a decrease in demand of two per cent as a result of a number of factors, including a number of downtown properties closing their doors and the ongoing fiscal restraint measures implemented by the Federal Government. With the reduction in supply, occupancy grew by two points in 2015 to reach 72 per cent. This resulted in increased rate growth, which was spurred by the compression created through reduced inventory. Overall ADR grew four per cent, or $6, to $150 and pushed RevPAR in the market up by seven per cent to $108 in 2015. The forecast for 2016 reflects the ramp-up to Canada’s 150th birthday celebrations in 2017, as well as a number of new supply additions

MONTREAL

After posting modest GDP growth in recent years, Montreal’s economy is expected to expand by two per cent in 2016, following growth of 1.3 per cent in 2015. In 2015, demand growth in Montreal was 2.1 per cent, while supply decreased by 0.2 per cent. This resulted in a two-point increase in occupancy to 71 per cent. With the combination of older hotel stock coming out of the market and stronger economic fundamentals across the region, Montreal’s ADR improved by 5.2 per cent in 2015. Overall, RevPAR increased by 7.7 per cent in 2015, with major city events such as FIFA Women’s World Cup and the IIHF World Junior Hockey Championships generating an increase in leisure travel. Following two years of significant demand and rate growth, the City of Montreal is expected to experience more moderate increases in both occupancy and ADR in 2016. Encouraging travel outlooks, particularly for domestic travel, combined hoteliermagazine.com

with minimal supply changes will allow the city to see occupancy surpass 72 per cent with ADR expected to reach $157, an increase of 2.2 per cent. This is expected to result in a RevPAR of $113, which equates to growth of 3.7 per cent this year. MONTREAL

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 65% 67% 69% 71% 72% ADR $136 $140 $146 $154 $157 RevPAR $88 $93 $101 $109 $113

QUEBEC CITY

Between 2013 and 2015, Quebec City posted GDP growth of between 1.2 per cent and 1.4 per cent per annum. GDP growth is expected to increase to 1.9 per cent in 2016 as increases in the manufacturing and services sectors boost the city’s economy. The city has benefitted from the low Canadian dollar in terms of both tourism arrivals and manufac-

turing interest. In addition, the city is becoming a hub for the finance, insurance and real-estate sectors. However, government austerity measures and the lack of qualified bilingual job candidates will continue to mitigate growth in the near term. Accommodation demand showed a modest increase in 2015, generally keeping in line with supply growth for the city. However, ADR showed strong growth of 6.3 per cent in 2015, increasing the market ADR to a 15-year high of $161. The tourism market, which is highly seasonal, has experienced a steady return of the U.S. traveller over the past year. The overseas market is also expected to experience relatively strong growth in the next three years. As a result, occupancy is expected to increase two points in 2016, driven by demand growth of three per cent, matched by a three-per-cent increase in ADR. This will result in an overall RevPAR increase of approximately 5.7 per cent in 2016, to $107.

QUEBEC CITY

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 62% 60% 63% 63% 65% ADR $146 $143 $151 $161 $166 RevPAR $90 $86 $95 $101 $107

HALIFAX/DARTMOUTH

The Greater Halifax Area experienced healthy economic growth in 2015 and is expected to reach a sixyear high of 2.8 per cent in 2016. This growth will be led by gains in construction, manufacturing and the services sectors. The tourism industry also had a good year, with overnight visitation to Halifax up 2.6 per cent in 2015, following similar growth levels to 2014. As a result of positive economic activity and a 6.7- percent increase in demand, occupancy increased by two points in 2015. ADR increased by $6 to reach $134, which resulted in a year end RevPAR of $86, an increase of 7.5 per cent. In 2016, with no new supply expected to enter the market and

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demand growth of 3.5 per cent, occupancy is projected to increase to 66 per cent. ADR is expected to increase by 2.5 per cent in 2016, which will result in an overall increase in RevPAR of six per cent to $91. With strength in the ship-building industries driving manufacturing growth and increasing non-residential construction, the outlook for Halifax remains positive for the near term.

Tourism outlooks reflect an optimistic outlook for the next few years, with strong growth in the domestic pleasure, U.S. and overseas markets. HALIFAX/DARTMOUTH

2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 64% 63% 62% 64% 66% ADR $126 $125 $128 $134 $137 RevPAR $81 $79 $80 $86 $91

ST. JOHN’S

St. John’s economic output has continued to struggle due to the decline in the natural resource sectors. However, with first oil expected at the Hebron Field in late 2017, recovery in this sector is expected in the near term. While economic growth in 2016 is expected to be limited, the weakness will be offset by gains in the service sector. After increasing by only a modest 0.1 per cent in 2015, GDP growth is expected to improve to 0.5 per cent in 2016. Overall, the economy is expected to improve in 2017, with GDP growth projected at 1.2 per cent. In 2015, guestroom supply increased by 1.6 per cent in St. John’s. Occupied room night demand also declined by 4.6 per cent as the expected recovery in the oil-andgas sector never materialized. As a result, the city’s RevPAR declined by 7.1 per cent, dragged down by a four-point drop in occupancy. ADR also declined in 2015 to $154, 1.1 per cent behind 2014. In 2016, supply is projected to increase by 6.9 per cent with the opening of the Sandman Signature at St. John’s airport. With the weakness in the natural resources sector expected to continue into 2016, demand is projected to remain flat this year, resulting in an overall decline in occupancy for the city to 61 per cent. Rates in the St. John’s market are expected to reflect the impacts of lower demand levels and are projected to decline by two per cent in 2016. As a result of the projected decline in occupancy and ADR, RevPAR for St. John’s is expected to decrease by 8.3 per cent to $92 in 2016. u

ST. JOHN’S

2012 2012 2013 2014 2015 2016

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy 74% 76% 69% 65% 61% ADR $144 $149 $156 $154 $151 RevPAR $106 $113 $108 $101 $92

SEPTEMBER 2016 HOTELIER

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HVS

HOW THE WEST WAS WON

Examining hotel supply growth and development trends in Western Canada STORY BY CARRIE RUSSELL ILLUSTRATION BY JEM SULLIVAN

estern Canada is more than just a land of sweeping prairies, soaring mountain ranges and oceancarved coastlines; it’s also a land of highway-adjacent limited-service hotels, modern urban boutique hotels, airport-supported, focused service properties and extended-stay lodging facilities, among other accommodation options. With just under 3,000 hotels and approximately 190,000 guestrooms, Western Canada accounts for 44 per cent of the total room supply in Canada.

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The west is the hotbed of hotel-development activity in Canada. Of all the new supply opened in Canada in the past 12 months, 70 per cent was built on Western Canadian soil — comprising 35 new hotels with 3,785 guestrooms. This represents a two-per-cent increase in supply, in contrast to a 1.2-per-cent increase nationally. Moreover, 63 per cent of the rooms now under construction in Canada are in the west — 31 hotels with 4,846 rooms, reflecting a 2.5-per-cent increase in supply (compared to 1.8 per cent nationally). Nearly all the new hotels under construction are branded and most are limited-service, select-service, or extendSEPTEMBER 2016 HOTELIER

ed-stay products. Among the new brands opening in the with 515 rooms have opened — a trifling 0.6-per-cent west are Candlewood Suites, Element by Westin and Hyatt increase in supply. Government hurdles to development Place. In addition, Alt, which originated in Quebec and and high land values are limiting the rate of supply growth is established in Eastern Canada, now has a property in in the province and bureaucracy results in long wait times Winnipeg and a property under construction in Calgary, for rezoning and permit applications approvals. More with plans of moving into the Saskatoon market. significantly, the high cost of land is making hotel develAlberta is driving supply growth in the west — of the opment less feasible and making competing uses (such 35 hotels that recently opened in Western Canada, 21 are as condos) appear more lucrative — it is therefore no in Alberta. This addition of 2,222 hotel rooms represents accident all the recent hotel projects in Vancouver have a a substantial three-per-cent increase in lodging supply for condo/mixed-use component. the province. Supply growth in Alberta is showing no Nevertheless, the first new hotel to be built in Vancousigns of slowing, with 23 more hotels — another 3,615 ver in five years will open this fall — the 147-room Trump guestrooms — now under construction. Hotel. Next year, the Autograph/JW Marriott will add Eight markets in Alberta now have new hotels under another 517 rooms to the city. Outside of Vancouver, construction. Calgary and Edmonton are seeing the there are only a couple of limited-service properties under most activity with nine hotels (1,832 rooms) and seven construction, but there is an increasing interest in resort hotels (953 rooms), respectively. In Calgary, four of the projects now that the performance of resort markets hotels under construction are in the airport market, four is improving with the revival of international visitaare downtown and one is in the south. The 390-room tion. Developers are starting to engage with architects Residence Inn Downtown Calgar y and consultants to get projects into the is the largest hotel under construction planning stages; however, resort markets and will be the largest in the Marritypically rely on fractional, time-share THE PACE OF ott system when it opens this year. In LODGING-SUPPLY and strata-ownership structures and the Edmonton, the new guestroom inventoongoing lack of interest in these types of GROWTH IN ry will include large brand families such ownership will likely temper significant ALBERTA as Hilton, IHG, Marriott and Starwood, new development in resort areas for the STANDS IN as well as two new Hyatt Place properforeseeable future. ties in downtown and West Edmonton. Manitoba experienced a flurry of hotelCONTRAST In addition, Sherwood Park, Cold Lake, development activity in 2013 and 2014, TO THE Grande Prairie, Red Deer and Banff all but since then construction on hotels in CURRENT have new hotel supply under construction. the province has been dormant. There are MALAISE The new supply in Banff — the recently currently no hotels under construction in IN THE opened Moose Hotel — is notable given Manitoba and nothing new has opened in the restrictions on development in nationthe past 12 months. A few projects are in PROVINCIAL al parks. the planning stages, but no major increase ECONOMY. The pace of lodging-supply growth in in supply is anticipated in the near future. Alberta stands in contrast to the current In Western Canada, hotel development malaise in the provincial economy. Hotels are still being activity is spread unevenly among the four provinces, built in Alberta due in part to the hangover from the shaped by differences in government policy, hotel perforapex in the demand cycle when there was pressure for mance, land economics and economic fundamentals. rooms on peak nights. Developers already committed Looking to hotels in the planning stage, activity appears to hotel projects continue to execute on previously laid to be moving east. Western Canada is still seeing more plans. In addition, Alberta is more developer-friendly than than its fair share of development activity, but only 54 per anywhere else in the country. Not only are development cent of the hotels now in the pipeline for Canada are in charges lower, but there is less red tape and fewer bureau- the West, well below the 70 per cent mark for the hotels cratic hurdles. that opened in Canada in the past 12 months. Still, there Saskatchewan is also experiencing large increases in are 65 hotels — nearly 8,000 rooms — in the planning supply. In the past 12 months, nine new hotels with stage in Western Canada, so the lower percentage of the a total of 1,048 guestrooms have opened — a striking national supply pie is likely due to an uptick in develop5.3-per-cent increase in supply for the province. Unlike ment activity in the east rather than a slowdown in the Alberta, however, new supply is now dissipating from west. u the pipeline. Only three hotels with 336 guestrooms are now under construction; this nonetheless represents a Carrie Russell is a partner and a managing director at HVS Canada 1.7-per-cent increase in the province-wide supply, in line (www.hvs.com). She has both her AACI real-estate designation (Accredited Appraiser Canadian Institute) and MAI (US Appraisal with the national average. Despite strong RevPAR growth, B.C. has seen little new Institute) and has been part of the real estate and hotel industry for 19 hotel development. In the last 12 months, only five hotels years. She can be reached at crussell@hvs.com 24

SEPTEMBER 2016 HOTELIER

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Capital HYATT’S FIRST ANDAZ-BRANDED PROPERTY IN CANADA IS LOOKING TO CAPTURE THE IMAGINATION OF DISCERNING TRAVELLERS

SEPTEMBER 2016 HOTELIER

STORY BY DANIELLE SCHALK PHOTOGRAPHY BY MATTHEW LITEPLO

Debut Ottawa’s ByWard Market is a cultural hub within the nation’s capital. Art, culture, dining, fashion and nightlife come together to create a vibrant community within one of Canada’s oldest and largest public markets. Given its pulsating atmosphere, it’s no coincidence Hyatt chose the neighbourhood as home to its first Andaz-branded property in Canada. Billed as global in scale, but local in perspective, the Andaz brand delivers an innovative hospitality experience. Launched in 2007, with Andaz Liverpool Street in London, the concept focuses on lively urban neighbourhoods and leisure destinations. Scott Richer, Hyatt’s VP, Real Estate

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LOOKING COVER STORY BACK and Development – Canada, touts the newly opened Andaz Ottawa ByWard Market as the city’s “first luxury boutiquestyle hotel.” The 200-room property, with its staff of approximately 100, appeals to both business and leisure travellers seeking a vibrant and distinctive hotel experience. “Andaz is an innovative approach to a boutique-inspired hotel experience, whereby the product and service model can be described as sophisticated, yet unscripted,” says Richer The Andaz brand aims to create distinctive, contemporary hotels reflective of the local environment, but distinguished by a consistently higher service experience than most boutiques offer. In fact, the name Andaz — a Hindi word meaning ‘personal style’ — was chosen to convey the hotel’s chic design and unique details while highlighting Hyatt’s focus on a new type of guest. “People who enjoy staying at our hotels are hoping to [go] back [home] knowing more than when they left,” explains Matt Graham, GM, Andaz Ottawa. “They want to experience things they haven’t experienced before; to get to know the community better than they might in a cookie-cutter-style hotel; and have a more meaningful experience.” The brand’s boutiqueinspired properties are individual by design, opting to reflect the character of the

surrounding neighbourhood through all facets of the hotel’s offerings — right down to toiletries and the complementary mini-bar snacks, which Graham sources from local suppliers such as Hummingbird Chocolate Maker (recent winner of the Best Chocolate in the World title by London’s Academy of Chocolate for its dark chocolate bar) and Purple Urchin, an amenities supplier that developed a custom line of products for the hotel. “[We] focus on letting guests experience Ottawa as if they’re visiting a friend, rather than staying at a hotel,” says Graham, who came to the Ottawa property from the Andaz

WINNING TEAM (from left), Scott Richer, VP, Real Estate and Development, Hyatt; Matt Graham, GM, Andaz Ottawa ByWard Market; and Neil Malhotra, VP, Claridge Homes

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SEPTEMBER 2016 HOTELIER

Scottsdale Resort & Spa in Arizona. “The brand is designed to break down what we call barriers between the hotel and the guest,” adds Richer, whose previous hotel experience includes Delta Hotels & Resorts and Choice Hotels International. “It’s more of a peer-topeer service model.” For example, the Andaz check-in experience does not happen at the front desk; instead guests are invited to make themselves at home in the hotel’s living room-like lobby, where they are treated to a welcome beverage. Check-in is performed with a host — who plays the role of concierge, bellman and lobby host — via iPad mini. Andaz highights local culture through creative events, including the Andaz Salon series. “[These are] usually artistic in focus,” says Richer. “We will have local artists hold workshops and guests and locals are invited to participate. These events, [which include everything from book launches to photo exhibitions, live music and art installations], bring the community into the hotel and the hotel into the community.”

A SENSE OF PLACE The property marks Hyatt’s first entry into the Ottawa market. “When looking for a location to put in an Andaz, we were looking for a couple of things. First, it needed to be a vibrant, lively, fun community — our brand is about celebrating where we are, so where we are has to offer those things,” explains Graham. “Second, we want to be in places our guests are already going.” Ottawa, and the ByWard Market in particular, fit the bill on both counts, but choosing Ottawa for Andaz’s Canadian debut came down to timing and opportunity. “When we looked at the Canadian marketplace, Ottawa checked all the boxes for a brand like Andaz,” explains Richer. “The ByWard Market is the centre of culture, history and tourism in Ottawa,” agrees Neil Malhotra, VP of Claridge Homes, the privately owned, Ottawa-based real-estate development company, which developed and owns the hotel. “It was a natural fit with the Andaz brand to showcase the best of Ottawa. This brand is all about immersing guests in the very best of local culture and this location and hotel will do just that.” Located on the corner of Dalhousie St. and York St., the site was previously occupied by the Union Du Canada building. “This was a very high-profile development opportunity in Ottawa,” says Richer. “[Claridge Homes] came to acquire the building and originally looked at doing an adaptive reuse.” The original plan called for additional floors to be constructed on the top of the building, however, it was ultimately scrapped so the building would fit better within the local community, explains Malhotra. “[We worked] with the community on the overall height of the project; by rebuilding, it allowed us to reduce the floor-to-ceiling heights and lower the overall height [of the building].” Work on the project first began in the summer of 2013, with the demolition of the Union Du Canada building, though construction of the hotel took only 18 months. 28

SEPTEMBER 2016 HOTELIER

The resulting structure features 13 guest floors — boasting four two-bay Hyatt suites, two three-bay Junior suites, and a four-bay Executive Suite with a fireplace and large 560-sq.ft. terrace — a street-level restaurant, rooftop lounge, as well as a floor of meeting and event spaces comprised of six studio-style rooms totalling 4,500 sq. ft. Andaz Ottawa is also pet-friendly — its Pet Program offers dog-friendly amenities such as a bed, bowls and dog cookies. The hotel’s design is a celebration of Ottawa’s identity as the nation’s capital. Toronto-based Mason Studio helmed the interior design, which features nods to iconic Canadian materials such as Jasper stone, as well as art sourced from across the country. The guestrooms are modern and functional, featuring light wood, copper accents, platform beds and custom carpet with a pattern unique to each guestroom. One wall of each unit also features what Graham describes as a deconstructed armoire. “It’s all of the pieces you would see in a hotel armoire, but they’re pulled apart and spread across a wooden plinth on the wall,” he explains. Each of the hotel’s floors pay homage to a Canadian province or territory, featuring a large map installation highlighting the theme province/territory as well as art sourced from the area. “The artwork displayed [throughout the hotel] is sourced through this great organization called the Art Bank of Canada,” says Graham. This, he notes, was particularly useful for sourcing work from more remote areas, such as the territories. The main floor restaurant, Feast + Revel, is designed as a celebration of the geography of Canada, incorporating stone and wood elements — including a trellis inspired by aerial views of farmland. Operated by Hyatt and helmed by executive chef Stephen La Salle, it offers a menu of locally sourced food in simple preparations. “The saucing and flavour is a mix of English preparation styles and French influences, which is fun for us since we’re where the English and French parts of the country meet,” says Graham. From a design perspective, Copper, the hotel’s rooftop lounge, lets the views speak for themselves. “They are absolutely stunning, but none more spectacular than the views from the rooftop bar and lounge,” boasts Malhotra. “[It has] a historic, unobstructed view of the Parliament Buildings, Gatineau Hills and the Ottawa River.” Even before opening, Andaz Ottawa received significant interest. At the beginning of August, Graham indicated the hotel, which advertises rooms from $240 to $340 per night, had already received several hundred bookings through the end of the year, as well as some group business for 2017. Upon opening in late August, Andaz Ottawa became the brand’s 13th location. However, Richer notes the brand has a “pretty robust pipeline,” with 21 locations set to open by the end of 2017. Though none of the planned locations will be in Canada, Richer says to expect future Canadian locations. “In terms of markets that make sense, there are maybe four or five markets in Canada that would fit the bill,” he says. “We are in various stages of activity in pursuing growth in those markets.” u hoteliermagazine.com

TRENDS

THE HUMAN FACTOR Attracting and retaining talent is getting more difficult in today’s challenging job market BY SARAH MACLEAN

warm smile at check in. A cozily made bed. A laugh with the bartender in the hotel bar. For all its complexities, the hospitality business is and always has been a people business. Keeping hotels staffed with individuals who combine technical skills and a deep understanding of the essence of hospitality is an ongoing challenge for every operator — and it isn’t getting any easier. Deloitte’s 2016 Travel and Hospitality

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Industry Outlook cites recruiting and retaining the right people as one of the four biggest challenges facing the tourism and hospitality industry this year. The report identifies the industry’s increasingly specialized jobs, as well as options for better pay outside of this industry, as key factors contributing to this problem. It also calls out an existing perception that the tourism and hospitality industry does not offer “abundant long-term career prospects” causing high turnover rates.

In the midst of corporate consolidation, industry fragmentation and new competition for talent, hotels must overcome outdated perceptions and antiquated practices in order to attract and retain employees who can effectively deliver on the promises hotels make to guests. CORPORATE CONSOLIDATION

“It’s a very odd time in the Canadian hotel world,” says Brent Billings, executive recruitment consultant at Lecours Wolfson, a leading recruiter SEPTEMBER 2016 HOTELIER

competitive salaries and “elevator” programs offering ongoing training and advancement is drastically reduced. COMPETITION FROM OUTSIDE INDUSTRIES

of foodservice, hospitality and retail executives, managers and chefs across North America. “We haven’t seen this level of brand consolidation in our history...a landscape that had multiple players is now becoming incredibly centralized and consolidated.” In just the last two years Marriott and AccorHotels have solidified their dominance over the Canadian market through major acquisitions. In 2015, Marriott International Inc. acquired the Delta Hotels brand — including 38 hotels in 30 Canadian cities — from British Columbia Investment Management Corporation for $168 million. Now, Marriott is poised to further expand its portfolio with its $12.4 billion acquisition of Starwood Hotels and Resorts Worldwide — a transaction which will effectively create the world’s largest hotel company. AccorHotels — a global behemoth with more than 3,800 properties in 94 countries and 20 luxury, mid-scale and economy brands — acquired Fairmont Hotels & Resorts, Raffles Hotels & Resorts and Swissôtel Hotels & Resorts in a deal that was announced in December 2015 and finalized in July of this year. “[This consolidation] has a huge impact on what we do…Marriott and AccorHotels have a stranglehold on the market, both in terms of the percentage of the hotel rooms that they 30

SEPTEMBER 2016 HOTELIER

own, but also the talent,” says Billings. “Even Hyatt, which is a huge international hotel company, only has six hotels in Canada. Now they are facing off against a Marriott that’s going to have 90. The playing field is dramatically different. What I would always try to do as a recruiter is dangle career growth, compensation, brand; now I can’t do that, because the reality is if you’re working for the Marriott/ Delta/Starwood configuration, you’re not going to move.” INDUSTRY FRAGMENTATION

While the Canadian hospitality industry is undergoing unprecedented consolidation, it is also becoming more fragmented in the sense that it is not unusual for one corporate entity to own and manage the brand, while another owns the building and facilities, another manages operations and perhaps another operates the onsite restaurant. “There are less opportunities in the mid-market hotels, in that they don’t have the food-and-beverage [component],” acknowledges Trevor Hagel, VP Operations with Travelodge Canada. “If there are under 100 guestrooms, [all you really need are] front-desk clerks, housekeeping and a manager.” As corporations become more narrowly focused, their ability to entice prospective employees — particularly at the manager-level and above — with

The transferrable skills earned by working in the hospitality business are becoming more highly valued by corporations outside the hotel industry and this new competition for talent is adding significant pressure. “The transferability and attractiveness of a hospitality candidate has never been as high,” says Billings. “Some of the major retirement companies are now being led, at an executive level, by ex-hoteliers.” These executives have a keen appreciation for just how easily skills learned in the hospitality industry transfer to the retirement industry. “This is the first time that I’ve ever seen the retirement industry — which is exploding — exploit the hotel world like this,” he adds. “Our firm is doing a ton of retirement work, where 10 years ago we did none.” Hagel agrees with Billings analysis of this trend, noting it’s one that appeared quite suddenly. “The retirement industry, about five years ago, started recruiting lightly,” he says. “Now they are doing it a lot more. They are coming after hotel general managers to run retirement homes now, whereas in the past they didn’t use us as a resource.” Hospitality’s reputation as a “sweat equity” business that demands working long hours over evenings, weekends and holidays without big financial rewards only increases the leverage enjoyed by competitors. CHANGING ATTITUDES AND EXPECTATIONS

Last but not least, attitudes and expectations of prospective employees are also changing. Some of this can be chalked up to the uniqueness of millennials, but larger trends are also at work. “Hotels used to rely on the fact that hoteliers were prone to wanderlust,’ says Billings. “In the last 20 years, a bunch of socio-economic factors have hoteliermagazine.com

STATISTICALLY, LESS THAN TWO PER CENT OF CANDIDATES DESCRIBE THEMSELVES AS RELOCATABLE, DOWN ALMOST EIGHT PER CENT FROM FIVE YEARS AGO

eliminated the propensity for people to relocate. Statistically, less than two per cent of candidates describe themselves as relocatable, down almost eight per cent from five years ago.” Widely disparate costs of living in Canada’s major markets play a significant role in this shift. Moving from Ottawa or Edmonton to Toronto or Vancouver is often prohibitively expensive. Furthermore, the percentage of dual-income families in Canada has almost doubled in the past 40 years according to Statistics Canada — up from 36 to 69 per cent. “When I started working for Fairmont in 1995, the entire executive committee of the Fairmont Jasper Park Lodge [were from] single-income families,” says Billings. Today, despite the opportunities relocation can offer, employees must also consider the impact on their spouse’s career. “Relocation was really the hallmark of the hotel business and that’s just stopped,” Billings concludes. On top of this new aversion to relocation, employees are less likely to stay with one company for the long haul. Workopolis research suggests that from 2000 to 2014, 51 per cent of Canadians across industries stayed in the same job for less than two years while only 30 per cent kept the same job for more than four years — a dramatic change from 1990 to 2000, when 55 to 60 per cent stayed for more than four years and just 16 per cent of people stayed in hoteliermagazine.com

a job for less than two years. “Our goal is two years,” says Justin Schinkel, CEO of The Inn Keepers, a family owned and operated hotel company based in Steinbach, Man. The company operates the Days Inn Steinbach, Quality Inn Winkler, Super 8 Winnipeg East and Motel 6 in Headingley. “We always pay over industry average to reduce turnover and make it harder to poach from us. Sometimes you know it will only be four months or six months, but two years is our goal and we often exceed that.” Though not keen on calling out millennials, Hagel notes it’s especially hard for mid-market hotels to recruit this group. “They want to come in and become a general manager right away and they expect to be [the kind of] GM that stands in the lobby and shakes hands with all the guests that walk in and says ‘thank you for staying with us’,” he explains. “Whereas general managers in mid-market are all handson — they are pulling desk shifts and are a lot more involved.” PUT PEOPLE FIRST

According to Schinkel, one of the best ways to overcome challenges is decidedly low-tech but effective — get to know your employees. “There tend to be three waves of turnover per year,” he says. “The biggest one is in September when people go back to university.” He also calls out the holiday season

and the spring — when college and high-school students finish their year — as times when turnover peaks. “It’s almost like clockwork,” he explains. “If you don’t talk to your staff you won’t know they’re graduating. So building relationships with the staff allows you to better forecast your HR needs.” However, this does little to address the challenge of attaining people in the first place. “We have more jobs than we have qualified candidates for,” laments Billings. “What are we going to do to draw people into our industry? We’ve never looked at [people from other industries such as airlines and car rental] and said ‘Hey come work at our hotel.’ We’re going to have to open ourselves up to that, because the cyclical nature of the hotel world will create supply and demand that we can’t meet.” Hoteliers must consider how their flare for making guests feel comfortable and valued can be applied to improving their own reputations as employers and enticing talented people to enter the industry and stay a while. “What are the priorities?” Hagel muses. “Are [they] your guests or your employees? Everyone has their own opinion as to what should be the priority, but I believe that if you treat your employees right, they will treat your guests right,” he explains. “If you have a good, solid team working for you, you’ll reap the rewards from that.” u

SEPTEMBER 2016 HOTELIER

SEGMENT REPORT

THE MID-SCALE MINDSET The mid-scale hotel segment is booming, thanks to travellers seeking the most bang for their buck BY JENNIFER FEBBRARO

he worlds of hospitality and industry have always been intertwined. So when the oil crisis hit Alberta this year, the province’s occupancy rates also plummeted. “Corporate travel was dramatically reduced,” explains Dave Kaiser, president and CEO of the Alberta Hotel and Lodging Association. “Two years ago, Calgary was a top-performing city in the Canadian hotel industry.

Now Edmonton is outperforming Calgary. That’s unheard of.” With a dramatic RevPAR decrease of 22.7 per cent over the last year (excluding resort properties), Alberta’s hotel market has drastically changed. According to CBRE Limited, however, the decline hasn’t had a huge impact on the overall mid-scale market numbers nationwide. “Brands are still trying to enter the mid-scale market because it’s the mass-market product which has

the broadest appeal,” explains Brian Stanford, senior managing director at CBRE Limited. “It’s a relatively stable segment and we haven’t seen any red flags yet in terms of a saturation point in the marketplace.” Numbers don’t lie. According to CBRE, Canadian occupancy rates within this segment rose by five per cent between 2012 and 2015, but fell by one per cent in the first half of 2016. That’s not a huge dip consider-

P H O T O G R A P H Y P R O V I D E D B Y H YAT T

RISE AND SHINE Competition for mid-scale dollars is growing so hotels are looking to differentiate themselves by offering perks such as free breakfast

ing the dramatic losses in Alberta. Similarly, ADR rose from $117 in 2012 to $140 in 2015 and remained static at $140 in 2016. RevPAR fell only one dollar between 2015 and 2016 to $91 — just $3 short of the RevPAR for all Canadian properties. Hyatt must have done its research since the brand hopes to open two Canadian locations of its mid-scale brand — Hyatt Place Downtown Edmonton and Hyatt Place Edmonton West — within the next year. Scott Richer, Hyatt’s regional VP of Canadian Development says there’s no real disadvantage to entering the market at this point. “In fact, we see it as a luxury to enter this space a little later than our competitors,” says Richer. “It allows us to choose our Hyatt Place locations carefully and strategically.” He notes that positioning oneself in the marketplace — both literally and figuratively — can have big impacts on today’s business traveller. “Our advantage is that the brand allows us to expand Hyatt’s presence fairly quickly — and often in urban markets where we previously didn’t have one.” With so many select-service, midscale operations available, it can be a hoteliermagazine.com

challenge for hotels to attract guests. Richer says the key is customization: “We don’t want to be a cookie-cutter operation. What we’re offering to the Canadian marketplace is something customized to them — different from, say, the prototypical Hyatt Place product.” In Stanford’s eyes, Hyatt has one advantage over its mid-scale competition. “If you think about it — [the new Hyatt Place hotels] will literally be the only [two] in the system,” says Stanford. “Suddenly, you’re not the second or third Marriott in the system. The timing is good for them.” While each mid-scale property has its standard offerings, explains Stanford, the competition will soon be about the nuance of each brand’s particular profile. Christie Neate, VP of Operations at the Charlottetown, Prince Edward Island-based D.P.Murphy Hotels and Resorts, says mid-scale operators have to offer more to stand out. “As an ownership group representing D.P. Murphy, but also Hampton Inns and Holiday Inns [brands], we know that guests are attracted to the mid-scale because of the price point, convenience, and the services that are provided.”

However, at D.P. Murphy Hotels and Resorts, guests receive even more perks than at your typical mid-scale hotel. Operating under the motto “Hospitality...like never before”, D.P. Murphy caters to the mid-scale guest in a manner some would consider more representative of the luxury segment. “We offer everything from complimentary shoe shines to free snow removal off of our guests’ cars in the winter,” says Neate. “Another big perk we offer is food. We always have snacks in our lobby and in the winter through spring, we have hot soup and rolls. Guests are also offered a drink upon checking in.” While business is thriving, according to Neate, troubleshooting for the mid-scale market is still prevalent. “Location is always a challenge. A lot of properties are quite expensive to develop downtown with respect to a mid-scale operation; you always have to ask will you get your return on your investment?” Manlio Marescotti, area VP of Lodging Development, Marriott Canada, argues that segment growth is taking place in both urban and suburban areas. “Our mid-scale brands are seeing steady growth across the country in major cities — markets SEPTEMBER 2016 HOTELIER

currently underserved by mid-scale properties,” he explains. “However, it’s the secondary and tertiary markets that have seen and will continue to see the most growth.” He points to SpringHill Suites as a brand that will see strong growth in Canada. And it’s no wonder considering the franchise was recently recognized by Forbes as one of America’s best franchises to buy in 2016, ranking among the top 10 within the greater than $500,000 investment level. Despite the growth of this sector, Marescotti cautions hoteliers against inconsistent messaging to guests in the interest of preserving brand integrity. “One of the challenges to the mid-scale is we see a lot of hotel developers tempted to go outside of the brands ‘swim lane’,” he says. “While you can tweak the product ever so slightly — for example by offering more meeting space — you need to be careful to not adversely impact the brand’s operating model and/or market positioning.”

The way in which hotels orient themselves in the market should reflect the shifting expectations of guests. That’s why, in 2016, Choice Hotels Canada conducted an extensive survey, which polled just under 1,600 Canadian travellers about their hospitality choices. The survey results, released this past June, found that an overwhelming number of Canadians (81 per cent) look for discounts or reward points when they travel — suggesting that loyalty cards and reward programs can keep the guests from straying to another venue. According to Brian Leon, managing director of Choice Hotels, “Consumer expectations of value for money are becoming more demanding and family travellers are seeking mid-scale hotels that have a wide variety of offerings [as well as] good quality rooms and exceptional service that don’t break the bank.” The real challenge for hotels, he says, is trying to keep on top of the wave of improvements. “Our mid-scale properties — like Comfort Inn and

Quality Inn — are continually updating. In categories such as bedding and technology, it’s really important to be on the cutting edge.” Leon says the limited-service, midscale market will always be caught in a competitive struggle to win customers. “It’s just the nature of the industry that we will constantly have that ongoing push to attract customers. But it’s kind of a good thing,” laughs Leon. “Staying relevant is critical to the hospitality industry. It’s up to us to keep updating the guest experience.” An example Leon cites is operators’ decision to substitute an underused bathtub with a full-sized, glassed-in shower. “It’s what the majority of people use, so why not improve that space?” Whether guests are travelling for business or leisure, they expect the latest and greatest, whether it’s technology, services or food-and-beverage offerings. Operators have to embrace the challenge; the reality is it’s a race without a finish line and the guest is the automatic winner. u

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OPERATIONS

THE HOSTS

WITH THE MOST From weddings to corporate meetings, hotels play host to a vast variety of events BY DANIELLE SCHALK

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here’s more to hotel event spaces than just a pretty face. And a property’s food-and-beverage staff often have much more on their plates than manning onsite restaurants. Today’s events and catering managers have their hands full filling their hotels’ meeting rooms and ballrooms with groups of all sizes, bolstering the hotel’s bottom line. At the Westin Ottawa, the Catering and Events team is kept busy year round. According to Patrice McMillian, director of Catering and Event Management,

each season brings its own specialty/ focus, with conferences making up the majority of its spring and fall business. Weddings are the bulk of summer bookings and holiday functions close out the year. McMillian estimates banquet and catering operations account for just under $12 million of the hotel’s annual income. “We do everything from small meetings of 10 to 20 people to large conferences of 1,000, as well as gala dinners and weddings,” she explains. The Westin Ottawa boasts a total of 27 meeting rooms, including an executive meeting centre with six meeting rooms. The fourth floor — SEPTEMBER 2016 HOTELIER

SMART SPACES Guests are looking for something different when choosing event spaces and properties such as The Drake in Toronto are answering the call with unique, yet functional, options

the property’s main meeting floor — also features large ballrooms such as the Governor General Ballroom, with floor-to-ceiling windows overlooking the Rideau Canal and the Parliament Building. This room is particularly popular due to the amount of natural light it offers. “It also includes LED lighting [in the ceiling], so we have the ability to create more of an atmosphere using any colours a client could think of to highlight some of the decor aspects in the room,” McMillian adds. According to McMillian, planning events at a hotel has its advantages. “One of the benefits of being at a hotel is when you [book] a meet36

SEPTEMBER 2016 HOTELIER

ing room, we provide the tables, the chairs, staging, dance floor — all of that is coordinated with the hotel directly,” she explains. Audio-visual elements and additional decor are the only other considerations. Choosing a hotel as an event venue also gives attendees the option of on-site accommodations. In fact, McMillian and her team consider the number of guestrooms that will be booked as a result of an event when determining pricing. “Obviously the priority is to fill the guestrooms as well as the meeting space,” she says. In recent years, McMillian has noticed a shortening of lead times on event bookings. “Ten years ago, a cli-

ent would be calling us a year or two years out for small meetings and large conferences,” she explains. “Now we’re getting conferences wanting to book in a three-month window and meetings booking in a two-week window.” The trend appears to be affecting the Canadian hotel industry on a broad scale. In Saskatoon, Ruth Klassen, sales and catering manager at the Saskatoon Inn & Conference Centre, is noticing similar booking patterns. “Right now, we’re booking about 25 to 30 per cent of our monthly revenues [for this department] in the month, for the month…It comes down to the economic conditions of the province,” she adds. Klassen notes corporate clients, in particular, are booking increasingly last-minute and same-day bookings for meeting rooms are not uncommon. Though last-minute events may appear to throw a wrench in the works, the Saskatoon Inn’s team of approximately 60 banquet staff is happy to make it happen. And with most of the hotel’s 18 meeting and event spaces permanently set, Klassen says “If somebody walks through the door and needs that meeting room in an hour, I can do that.” However, these smaller meetings take significantly less planning than the conferences and weddings the hotel hosts — of which they book approximately 10 and 35 per year respectively. As Klassen explains, “Weddings are one of the most imporhoteliermagazine.com

tant days in [our clients’] lives, so we try and spend a lot of time working with them.” In total, the hotel’s banquets and catering division generates an income of approximately $3.2 million per year, a figure which has been steadily increasing since the property’s renovation three years ago. The Drake Hotel in downtown Toronto offers a deviation from typical event spaces. The art-focused property offers six unique venues across three floors — The Drake Underground, Sky Yard, The Drake Café, Room 222, North Lounge and South Lounge. According to Dave Elliott, the property’s senior sales manager, Corporate Events, these spaces require very little set-up to be event ready. “We are very blessed that our spaces are designed as is,” he explains. “We are a boutique art-and-culture hub, so we are lucky enough to have an in-house art curator who chooses our rotating displays throughout our spaces.” The hotel’s recently redesigned Sky Yard rooftop patio is a prime example. The space boasts a mid-century, poolside chic vibe, complete with vintage photos, an indoor diving board, a Prince-inspired mural by artist Insa and an art installation by Jason Peters. “We are very happy to partner with people [such as] outside providers and florists,” Elliott adds. “We find 19 times out of 20, people don’t actually want anything [extra] — they choose us specifically for the aesthetic.” The way The Drake Hotel prices its event bookings also deviates from the norm. “We don’t have a landmark fee or renting fee for any of our spaces,” Elliott explains. “We have a minimum spend we ask our clients to meet in hosting, catering and beverage,” which is calculated based on the average sales associated with the chosen space for the same day of the week in the same month of the previous year. The hotel is food-focused, offering a wide variety of menu options. including traditional plated meals, finger foods, sushi and groaning boards (a popular and whimsical take on a hoteliermagazine.com

buffet). “Outside of that, we are very flexible with working with clients, especially if someone has a specific item they want,” says Elliott. “I had a wedding last year where the groom said the only thing he really liked to eat was chicken fingers and fries. So, we made baskets of chicken fingers and fries for the whole party,” he recalls with a chuckle. A key point of customization that Elliott and the Drake team encounter are requests for menus that accommodate dietary restrictions. “We created our menus in such a way that we are able to tweak them to match up with those preferences and allergies without deviating too far from our catering philosophy,” he notes. Drake Hotel Properties’ six-person booking and execution team will soon be able to offer their clients a wider variety of venues, as the company is in the process of introducing its offsite catering initiative, which Elliott characterizes as “a twist on the classic Drake that we are able to take on the road.” The Westin Ottawa also offers offsite catering, the majority of which takes place at the city’s many museums. McMillian notes the hotel’s event spaces can hold up to 2,000 guests, but offsite venues allow it to accommodate even larger groups.

For its menu planning, The Westin Ottawa utilizes Starwood’s eMenu! tool, which catalogues the menus offered at the company’s individual properties. McMillian uses this to walk clients through the hotel’s offerings. “If we need to go above and beyond what’s standard, we will have the chef get involved and put together a menu to suit,” she notes. Menus are also a key way the hotel manages costs for these functions. The events team works with the kitchen to identify and promote low-cost menus that are high in profit. For clients on a budget, the team will also recommend using a menu already being produced on the day of their event. “Because we are adding more people on that same menu we are able to save costs,” McMillian explains. The Saskatoon Inn’s Klassen also identifies an event’s F&B as a key way to save on costs, specifically regarding the number of staff required for particular menu, offerings. “When it comes down to meetings and conferences, our staff on a breakfast is about 50 guests per person, about 40 guests per person at lunch and about 30 at dinner,” she explains. “So the more coffee breaks and things like that we can muster up, the better off we are.” u

SEPTEMBER 2016 HOTELIER

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Ęʪи Ɗɇ͔ϑЇ͝˝ ߧߪߥ ²ƟǤ Ɗʪθ̈ʪϑ

θʪ ǽͱЇ Uʪ̷̈Эʪθ̈͝˝ ͱ͝ Їʪϑϩ Uʪ͔ɇ͝ʒϑ ˙ͱθ Ɗ͔ɇθϩ ƟǤࢌ ͱθ ϩͱʒɇц࣭ϑ ʒ̈˝̈ϩɇ̷̷ц ϑɇЭЭц ʀͱ͝ϑЇ͔ʪθϑࡡ ɇ Ɗđ ŵƟ ƟǤ ̈ϑ ͝ͱ ̷ͱ͝˝ʪθ ϑ͔̈Χ̷ц ࣨ̈͝ʀʪ ϩͱ ˵ɇЭʪࣩ ̈͝ ɇ ˵ͱϩʪ̷ θͱͱ͔ ࣔ ̈ϩ ̈ϑ ɇ ͔Їϑϩࣗ˵ɇЭʪࢋ Ɵ˵ʪ θʪ̷ʪɇϑʪ ͱ˙ ϩ˵ʪ Ęʪи Ɗɇ͔ϑЇ͝˝ ߧߪߥ Ɗđ ŵƟ ²ͱϑΧ̈ϩɇ̷̈ϩц ƟǤ ϑʪθ̈ʪϑ ΧθͱӬʒʪϑ ɇ ʀͱ͔Χ̷ʪϩʪ Χ̷ɇϩ˙ͱθ͔ ˙ͱθ ɇ Χθʪ͔̈Ї͔ ̈ࣗ͝θͱͱ͔ ʪуΧʪθ̈ʪ͝ʀʪ ӥϩ˵ ɇ͝ ɇϩࣗ˵ͱ͔ʪ ˙ʪʪ̷ࢋ Ɵ˵ʪ Ɗɇ͔ϑЇ͝˝ ߧߪߥ Ɗʪθ̈ʪϑ ͱ˙ Ɗđ ŵƟ ²ͱϑΧ̈ϩɇ̷̈ϩц ƟǤϑ ӥϩ˵ ʪ͔ɵʪʒʒʪʒ UĮAƊÃƊঃ ߤࢋߡ ࣍Uɇϩɇ ĮЭʪθ Aɇɵ̷ʪ ƊʪθӬʀʪ Ã͝ϩʪθ˙ɇʀʪ ƊΧʪʀ̈ѣʀɇϩ̈ͱ࣎͝ ͔ͱʒʪ͔ ϩʪʀ˵͝ͱ̷ͱ˝цࡡ и˵̈ʀ˵ ͱΧʪθɇϩʪϑ ͱЭʪθ ʀͱɇӱɇ̷ ͝ʪϩиͱθ̧ϑࡡ ʪ͝ɇɵ̷ʪϑ ˵ͱϩʪ̷̈ʪθϑ ϩͱ ̈͝ϑϩɇ̷̷ Ɗđ ŵƟ ƟǤϑ ӥϩ˵ͱЇϩ ϩ˵ʪ ʀͱϑϩ ࣍ɇ͝ʒ ˵ʪɇʒɇʀ˵ʪ࣎ ͱ˙ Ãťࢥkϩ˵ʪθ͝ʪϩ θʪӥθ̈͝˝ࢋ

ͱθ ͔ͱθʪ ̈͝˙ͱθ͔ɇϩ̈ͱ͝ࡡ Χ̷ʪɇϑʪ Ӭϑ̈ϩࡠ ˵ϩϩΧࡠࢥࢥʒ̈ϑΧ̷ɇцϑͱ̷Їϩ̈ͱ͝ϑࢋϑɇ͔ϑЇ͝˝ࢋʀͱ͔ࢋ ং ߣߡߢߧ Ɗɇ͔ϑЇ͝˝ k̷ʪʀϩθͱ̈͝ʀϑ Aɇ͝ɇʒɇ Ã͝ʀࢋ ̷̷ θ̈˝˵ϩϑ θʪϑʪθЭʪʒࢋ Ɗɇ͔ϑЇ͝˝ ̈ϑ ɇ θʪ˝̈ϑϩʪθʪʒ ϩθɇʒʪ͔ɇθ̧ ͱ˙ Ɗɇ͔ϑЇ͝˝ k̷ʪʀϩθͱ̈͝ʀϑ Aͱࢋࡡ øϩʒࢋࡡ Їϑʪʒ ӥϩ˵ Χʪθ͔̈ϑϑ̈ͱ͝ࢋ

TECHNOLOGY

GUEST

ENTERTAINERS Today’s in-room entertainment has moved beyond pay-per-view movies to offer a truly connected experience

BY ANDREW COPPOLINO

he term “in-room entertainment” doesn’t capture the essence of the space a hotel guest enjoys, nor is it even a true reflection of that guest’s needs. Entertainment provided by payper-view television or Blu-ray equipment is unconnected to the customer. Today, guest, technology and entertainment are blended — coming together at the swipe of a fingertip. The hospitality and lodging industry is embracing disruptive technology across segments. It is the era of the “on” generation, focused on immediacy and controlling their world through a device in the palm of their hand. They’re a cohort who know what they want and when — from food and music to shopping and accommodations.

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Smart hoteliers are opting for smart technology. And so they should; customers of all ages check in with two or, often three devices — smart phone, tablet and laptop. These catalysts of disruptive technology — rather than traditional media — now define in-room entertainment, according to Mitch Heinlein, vice-president Sales and Marketing at Bittel Americas. “All the brands are looking at how guests are checking in and using multiple mobile devices,” says Heinlein. “So how we support the mobile device and give the guest options to promote their personal content to the TV is the challenge. It’s where we are headed with our products.” Bittel’s solution to this challenge is the iMediaCast. Introduced in June 2016, this device measures roughly SEPTEMBER 2016 HOTELIER

6" by 8" and allows hotel guests to connect a mobile device to stream content to the room’s television. “Our technology allows whatever is on your device to be mirrored over to the TV, as long as there aren’t digital rights issues which prevent you from promoting the content,” says Heinlein. Guests connect their device to iMediaCast not through an app, but via a wired connection to stream their content to the television — whether it be Netflix, traditional television or a PowerPoint presentation. A wireless connectivity module can also be used to connect to Apple Airplay and Miracast-certified devices. With more than 100 hotels around the world, Starwood Hotels & Resorts Worldwide, Inc.’s Aloft brand is designed for the connected nextgeneration traveller. It’s a lifestyle, Downing explains, so Aloft asks their hotels to provide the capacity to give customers quick and seamless access to the content they desire. “More and more, we know our travellers want to be in control, and they want to be able to watch and listen to what they want on their terms and on their time,” she says. To make this possible, Aloft introduced RoomCast powered by Chromecast earlier this year: This point-and-click technology allows guests to stream content from their devices directly to the television in their room. The platform is secure and requires no administration or account set-up — essentially creating a private wireless world within each guest’s hotel room. At Samsung Electronics Canada, in-

room entertainment isn’t just about the hardware, according to Mary Peterson, vice-president IT & Enterprise Solutions. “It’s about creating a personalized, distinctive and enhanced guest experience through premium TVs that display content beautifully and offer guests a smarter, more connected experience,” she explains.

Because a majority of guests are accustomed to syncing their smart devices with their televisions sets at home, this method of content sharing is a convenience they have come to crave while travelling. “[Guests] now expect these types of features when visiting hotels too,” she adds. Smart TVs get guests connected quickly giving them what Samsung calls “a home-away-from-home experience.”

With the availability of systems such as LED and immersive curved screens, in-room entertainment can offer tremendous quality and an elevated experience which brings guests “closer to their favourite content.” Whether travelling on business or for pleasure, quick access to streamed content and premium audio and visual quality are critical, says Peterson. “Whether allowing them to connect their personal devices to the TV to stream their favourite content, or get real-time updates on conference-room changes and weather, guests are more seamlessly connected than ever before.” Brendan Gibney is director of Franchise Services for Choice Hotels Canada, with 340 mid-scale and economy hotels currently open or under development across the country. He’s observed a shift away from providing traditional in-room entertainment to focusing on other aspects of a guest’s multi-device check in. At Choice, investing in in-room movie systems has seen only a small ROI, which comes as no surprise since today’s customer prefers to use their tablet as their main source of entertainment, Gidney notes. As a result, fewer and fewer Choice hotels — perhaps only 20 per cent, Gibney estimates — have traditional television systems today. “Instead, we encourage our owners to make sure they’re investing in great Wi-Fi and making sure it’s available in every corner of the room,” he explains. “It can’t just be at the desk anymore.” The evidence is clear, both quantitatively and qualitatively. “We see

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it in consumer research, which tells us this is the era of the multi-device check in,” Gibney says. “We’re also seeing it anecdotally in the demand for Wi-Fi.” That shouldn’t come as a surprise: kids watch Netflix, Millennials certainly rely on smart devices and increasingly older guests do too. There isn’t an age demographic that hasn’t been impacted by mobile technology.

KNOW THY CUSTOMER

While knowing your customer is key — getting too tech-focused or too far ahead of the curve may not be what a particular market demands. There is a difference between being trendy and being on-trend, says Downing. Aloft finds its market by piloting technology in concept rooms and collecting customer and operator feedback and data. “The pilot approach works and

has allowed us to be nimble,” she adds. Sports teams are a prime example of a market with particular entertainment demands. Choice’s Gibney says many of its customers check in with their own Xbox or PlayStation systems, which they connect to in-room TVs. “They use the Wi-Fi to play with friends back home or down the hall. Construction crews in the market on special projects for a month or so will also use Wi-Fi for gaming,” he adds. In Saskatoon, Cam McDonald is general manager of a Travelodge with 261 rooms, 16,000 sq.-ft. of conference space and two swimming pools, one of which features a 250-ft. water slide. The property is attractive for leisure travel and sports team business, so it offers an interactive onscreen guide with 54 HD channels, on-demand movies free-of-charge and a multi-channel sports package. “The team business we do was one of the reasons we went down the sports-package path, for sure,”

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TH I N K I N G A BO U T G U ES ESTT A MEN I T IES I ES ? MI N I BARS

FRI DGES

SA F ES

in f o@m i n i barNA.com

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McDonald says. “Everyone comes in with at least one, if not two devices.” Testing done at another property also influenced the hotel’s entertainment decisions. “They found guests really liked the guide,” McDonald says. “InfiNET is a popular television service in Saskatchewan and lots of people have it at home. They come in here and know the channels already. It was important to us to find a service provider who could get us the guide.” The hotel also offers the Internet speed guests crave, thanks to a recent upgrade — 520 Mbps on downloads and 60 Mbps on uploads. ON THE HORIZON

Staying on top of entertainment technology can be difficult, especially when the only constant is change. Heinlein acknowledges a shrinking number of people are tied to scheduled content. “They are not thinking about what’s on television on a Tuesday at 8 p.m.,” Heinlein says. For McDonald in Saskatoon, con-

sideration is being given to smart TVs so guests can have full control of their content. “We’ve also considered whether to get into Apple TV or Chromecast so that guests would still have the capability to get their content on the TV.” This, he says, will be determined by further research to ensure the technology is agnostic. Choice Hotels Canada tries not to build brand standards based on what the next “it” device or platform will be. Gibney says it is more concerned with the nuts and bolts of the hotel that will permit that seamlessness, rather than an intense focus on trends. To this end, the company recently announced that by March 2017 all of its hotels must meet standards that provide guests with faster uploading and downloading. “We try to make sure they have the infrastructure to support whatever comes down the pipe,” Gibney adds. Aloft is also looking to bandwidth — and the associated hotel infrastructure — in order to meet the

HOLD THE PHONE Bittel Americas has recently introduced a new version of its UnoMedia5 in response to hoteliers’ requests for more guest-relevant phones and clocks. These devices are both necessary in-room amenities, but are often underutilized. The UnoMedia5 combines the two into a single unit along with several in-demand technologies. “It’s a combination of products,” says Heinlein. “It has Bluetooth, so it’s an audio player and guests can stream their music app through it. It also has a stereo speaker system that is similar to an iPhone-type product, although we combine four USB ports, charging cables and a guestroom phone.”

demand of constant change that more sophisticated hotel customers represent. “Seamlessness for the guests is important,” as is not having to ask them to log in to three different websites and enter personal information, she says. “We want the ability to make that available to our guests, so they can build their [own] experience.” u

CONGRATULATIONS

PAUL GINGRAS Executive Housekeeper, Park Hyatt Toronto

Winner of Hotelier magazine’s inaugural Housekeeper of the Year Award! Joe Campisi, National Hospitality Manager, and HD Supply applaud you on this outstanding achievement.

Congratulations To our friend and Park Hyatt Toronto colleague, Paul Gingras, on receiving Hotelier magazine’s first Housekeeper of the Year Award. Paul is highly respected by all his housekeeping team and we are all so proud of his accomplishments.

www.toronto.park.hyatt.com

HD Supply Facilities Maintenance is one of the industry’s largest MRO, OS&E, and FF&E suppliers. Our hospitality professionals will provide the product assistance, brand expertise, and solutions you require.

BECAUSE EVERY JOB COUNTS.

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SEPTEMBER 2016 HOTELIER

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DESIGNER SHOWCASE

The Primary Schoolhouse Stem Mount Light, by Titusville, Fla.based Barn Light Electric

Customdesigned light fixtures by Toronto-based Bookhou Design One Arm Stool designed by +Tongtong

THE DRAKE DEVONSHIRE INN Prince Edward County, Ont.

BY DANIELLE SCHALK

he Drake Hotel’s rural outpost in Prince Edward County, Ont. has garnered accolades for its modern cottage-chic design. +Tongtong principle John Tong — who designed the original Drake on Toronto’s Queen Street West — notes that it was a unique challenge to bring The Drake Devonshire Inn to life. “The challenge for me was how to take the brand ideas and figure out how to transplant that into a second property in very a different location.” The resulting design is one that is very individual within the Drake family, while still exuding a very “Drake” essence. As Tong explains, no one element — be it a colour palette, material, furniture or artwork — save for the bar stools is repeated at this second Drake property. On creating this brand cohesion, Tong says: “I think it has to do with a sense of colour and freshness and uniqueness…I think the sensibility of the choices and the strategy of how the place flows, the intimacy and warmth [while being] modern yet old are all there.” The character of the boutique hotel’s rural location is a defining feature of the project’s overall design. Despite 75 per cent of the structure being newly built, the additions were made to appear as though the existing heritage house had undergone a series of additions over time.

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BEHIND THE DESIGN John Tong launched +Tongtong three years ago after dissolving his 20-year partnership at 3rd Uncle Design Inc. “I started +Tongtong to have the freedom to do an even broader scope of work,” he explains. “My understanding of architecture from when I studied it was that architecture involved everything that is in our living environment, everything to do with expressing built form as well as how we live in them. It’s the tools we use to live within these places, whether it’s furniture or dishware or what we hang on the walls.” When it comes to hospitality design, Tong works to bring the cultural influences of art, music, film, food and technology into the hotel experience to create a contextual and authentic experience. “Hotel projects really [want to] find their reason to be, other than just a place to sleep at night, and make that reason real and not contrived,” he says. “I think that people are looking for a more intimate experience.”

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DESIGNER SHOWCASE

HOTEL ARTS Calgary, Alta.

BY AMY BOSTOCK

BEHIND THE DESIGN Chil Interior Design is the hospitality studio of Toronto-based B+H Architects, whose Canadian projects include the DoubleTree by Hilton Regina, the Shangri-La Hotel Toronto and the Fairmont Waterfront in Vancouver. Adele Rankin, senior associate, Chil Interior Design, has been creating hotel spaces for 16 years and says the biggest challenge to designing hotels is working with the long timelines. “You have to have the foresight that what you design in year one is still going to be relevant in year three or four when the hotel opens,” she says. In terms of design trends, Rankin says geography is huge. “There used to be a time when whether you’d go to a Marriott in Miami or Victoria, the expectation was it would look, feel and operate the same way — that was seen as a plus. Now, it would be incredibly unusual for us not to reference local culture to influence the design and how that hotel presents itself.”

SEPTEMBER 2016 HOTELIER

The murals gracing the corridors of Hotel Arts are created by Vancouver-based Farmboy Fine Arts. “They also did the artwork in the rooms,” says Rankin. “We collaborate with them often and each piece is custom. We want the art to be something that can’t be replicated in other hotels.”

n 2014, the 185-room boutique-style Hotel Arts partnered with Toronto-based design firm Chil Interior Design on a $7-million renovation of its guestrooms and corridors. The existing design, says Adele Rankin, senior associate Chil Interior Design, proved a bit anticlimactic for guests who were initially wowed by the hotels artistically stunning common spaces. “It’s a very art-focused property and [the client] had a desire to bring the rooms up to speed with the rest of the hotel area,” says Rankin. “The rooms and corridors were dark, very plain and, ironically, lacking in art.” The conundrum, she says, was living up to the hotel’s name, but without the budget to put original art in every room as they had in the common areas. “We had to make the rooms speak to the rest of the spaces and be fashion-forward in some respects. We made it an artful experience — instead of one item in the room saying ‘art’ we wanted these rooms and corridors to speak to an artful immersion,” she says, adding every floor has its number painted the on the wall and floor. But while the design of the graphic element is different on each floor, the colour scheme is consistent. For the guestrooms, the Chil team chose a classic base palette — charcoals, creams, whites and blacks — which would never go out of style. “We used pops of citrusy green and bright oranges to brighten it up,” says Rankin. “If it gets tiring for [the client], it can be changed affordably — being too trendy gets clients in a bind.” The furniture was designed specifically for the hotel, including the centerpiece of each guestroom, a custom headboard. “The headboard was a way to affordably do something that made a statement. The Robert Allen fabric became a backdrop for the room, while being a statement unto itself.” hoteliermagazine.com

DESIGNER SHOWCASE

JW MARRIOTT PARQ VANCOUVER

The chandelier hanging in the Marriott Parq Vancouver’s luxurious spa lobby was customdesigned by Studio Munge. “It gives a personality and a uniqueness to this brand and to this property; nobody else has it,” says Munge of the piece. “We have an entire department at Studio Munge that focuses on customization of furniture, fixtures and lighting.”

Vancouver, B.C.

BY AMY BOSTOCK

BEHIND THE DESIGN

et to open in September 2017, the Marriott Parq Vancouver is a luxury hotel in the heart of downtown Vancouver. Set against a backdrop of coastal mountains on Canada’s Pacific coast, the hotel, designed by Toronto-based Studio Munge, features a collection of 329 guestrooms; including 44 suites, three presidential suites and a two-floor villa. The public spaces include a spa, state-of-the art fitness studio, private club lounge and six restaurants and lounges. “The developer wanted the project to have a resort feel to it,” says Alessandro Munge, principal at Studio Munge. “It’s tied to a casino development and another Marriott hotel brand so it’s really a destination — an all-in-one venue for those travelling to Vancouver, as well as locals. It’s more than just a hotel experience; it’s an amenity experience.” Munge is no stranger to the Vancouver hotel scene, having worked on projects in the city — including Rosewood’s Hotel Georgia — over the last 10 years. “I saw a city that is spectacular. The vistas are beautiful but it can be a bit dark and dreary at times,” he says. “However, when it’s sunny, the entire city explodes.” With that in mind, Munge says he created a palette full of light, fresh and all-season colours. “I wanted people to come into a room that felt alive, open and fresh — even a little feminine.” The majority of the guestroom furniture was custom designed by the team at Studio Munge — beds, headboards, nightstands and desks — and boasts an international flare “but local in the sense you know where you are.” Elements within the art program are 100-per-cent local, ensuring the city’s talent is showcased in the project. “The public spaces are the natural areas to draw attention to, but we didn’t want the rooms to feel like they were an afterthought,” says Munge.

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Alessandro Munge, principal at Studio Munge in Toronto, is the mind behind the design of the new luxury Marriott Parq Vancouver. With more than 20 years’ experience in the industry, Munge’s global perspective and unfailing quest for the perfect solution have propelled Studio Munge to become a global design leader. “We focus on our love for hospitality — all things hotel, F&B, bar, lounge, nightclub, as well as residential,” he says. “I’ve always had a love for hospitality so it was natural for me to fall in love with hotel design.” Munge say he’s seen hotels evolve tremendously in terms of their offerings. “I don’t think a hotel is a destination for guests only — they want to be as much local as they want to be international.” He’s also seen the demise of the cookie-cutter hotels, those that look the same no matter which property you visit. “Designers today will be a lot more challenged to ensure the hotel work they do also doesn’t become cookie-cutter in its nature,” he warns. SEPTEMBER 2016 HOTELIER

DESIGNER SHOWCASE

Lighting: from Bocci Lighting

Tiles and stones: by Ciot

Paint: Benjamin Moore

DELTA HOTELS OTTAWA CITY CENTRE Ottawa, Ont.

BY ERIC ALISTER

hen Delta Hotels and Resorts was looking to expand its business traveller demographic and grow its leisure market share, it looked to Toronto-based HOK to provide the appropriate design, branding and engineering work needed to create a consistent experience across all 45 of its Canadian properties. HOK’s design for Delta was inspired by Canadian pride and a desire to build a strong tie between each property and the setting in which it’s situated. This philosophy ultimately guided the firm’s design team, led by Randa Tukan in its design concept and approach as well as choice of materials, furniture and manufacturers. The Delta Hotels Ottawa City Centre renovation took two years and cost approximately $35 million. With the Canadian theme as the overall inspiration, Tukan’s team took cues from Ottawa’s history, diversity and urban setting. The firm did a major re-design of the property in order to improve guest and visitor flow, attract more meetings and conventions and create a stronger connection to the surrounding neighborhood. The redesign called for the removal of the hotel’s drop-off ramp at the second floor and relocating the front desk and reception to the first floor to establish a street-level presence. The bar lounge area references the Parliament library with the all-white painted books and pockets of tongue-in-cheek Canadiana accessories. The application is modern, smart, fun and clean-lined with an understated elegance. This new design has resulted in a 48 per cent increase in business for the hotel since the completion of the renovation. It has also opened doors to the entertainment and film industry in Ottawa and has become a background setting for film and commercial productions. 48

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BEHIND THE DESIGN HOK, a global architectural firm founded in 1955, provides planning and design solutions for highperformance, sustainable buildings and communities. Across its 23 international offices, HOK employs 1,800 professionals in the areas of architecture, engineering, interiors, planning, workplace strategy, sustainable consulting, lighting, environmental branding and graphics, facilities planning and assessment and construction services. The firm’s objective is to deliver exceptional design ideas and solutions for its clients through creatively blending human needs, environmental stewardship, value creation, science and art. HOK administers its own research in areas such as hospitality in order to find innovative ways to solve clients’ specific challenges. The firm’s Canadian offices are located in Toronto, Ottawa, Calgary and Vancouver.

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More than meets the eye

Mobile Access compatible Online capability (wireless) RFID reader with improved reading distance New stylish reader design Minimalistic design by having electronics inside the door* Works with most door materials

When it comes to smart security, less is more. With the new VingCard Essence, you get more advanced technology in a clean, minimalistic design that blends with any hotel decor. And now the industryâ&#x20AC;&#x2122;s most uniquely beautiful and functional locking system is even smarter. Available with wireless online capabilities, VingCard Essence is now also available with ASSA ABLOY Hospitality Mobile Access, powered by secure Seos technology. This revolutionary solution allows guests to bypass the front desk, using their smartphone or watch as a secure digital key. Learn more: www.assaabloyhospitality.com/essence. *US patent number 8047030

HITEC ROUND-UP

HITEC 2016 SHOW ROUND-UP Innovative new products were the order of the day at the annual HITEC Show

LOST AND FOUND Chargerback, Inc. provides web-based lost-and-found solutions to help ensure items are returned quickly and efficiently to their rightful owner. The company offers a cash incentive when guests pay to have their item shipped back, which turns the typically revenue-sucking lost and found department into a revenue generator. Chargerback, Inc.

SPECIAL DELIVERY Savioke’s Relay, an autonomous delivery robot fulfills room delivery requests, thanks to its wheeled platform with sensors for navigating hotel floors and elevators. Staff members load the items into Relay’s bin and enters the guest’s room number. Relay quickly navigates tight hallways, crowds and elevators and calls the guest via the hotel’s phone system when the delivery arrives. When the guest opens the door Relay opens the bin for the guest to retrieve the delivery. Savioke hoteliermagazine.com

ENTERTAINMENT UPGRADE iMediaCast enables guests to effortlessly mirror and stream content from their mobile devices to the in-room TV. iMediaCast is intuitive and comes with four wired connection options that support most mobile devices, along with a wireless connectivity module that supports Miracast and Airplay. It connects easily to the existing TV’s HDMI port and does not require network or TV upgrades. Bittel

TRAINING TRENDS Netherlands-based Novility, has launch two new products — Novility L.I.V.E. and Novility P.A.L. Novility L.I.V.E. is a comprehensive training program delivered in a simulative hotel environment that focuses on core operating procedures, ergonomic training and English language essentials. P.A.L. is a compact and flexible training solution which covers the core procedures of an employee’s job role. Novility

KNOW YOUR CUSTOMER Knowcross has added a new social feature to its Know Mobile service, which will compile and analyze data from each guests’ public social-media handles, allowing hoteliers to identify and anticipate the needs of their guests and ultimately, provide a higher level of personalized customer service. The new Know Mobile avatar combines information from the PMS profile, reservation notes, history of frequent requests and complaints of repeat guests. Knowcross

ANALYZE THIS The Triptease platform, which helps hotels increase direct bookings, integrates with a hotel’s website and booking engine, analyzing guest behaviour and delivering targeted messages to increase conversion. Triptease’s first innovation was the Price Check tool — a widget on a hotel’s booking engine — which shows guests live prices from three competing online travel agencies. Triptease

ENJOY SOME VUTYME vuTyme by ADB joins LG Electronics USA’s Pro:Centric Partner Program to provide hoteliers with more in-room entertainment device choices. Hoteliers can enjoy the unique benefits of the vuTyme interactive TV platform from ADB while preserving their investment in LG equipment installed in the majority of leading hotels. ADB

ALL CHARGED UP The new multi-device charger for guestrooms from Kube Systems features unmatched versatility in its charging output. The Kube Essentials alarm clock with multi-function LCD display power can charge all mobile electronics and its AC output enables guests to charge laptops as well. Built-in charging cables are also upgradeable to next generation charging formats, including USB Type-C (reversible plug capability). Kube Systems SEPTEMBER 2016 HOTELIER

HOTELIER

On the Waterfront Tim Reardon goes above and beyond for guests and associates alike at Toronto’s Westin Harbour Castle BY ROSANNA CAIRA

SEPTEMBER 2016 HOTELIER

hotel. “We facilitate meetings and events for groups as small as 10 persons to conventions and signature galas for thousands of attendees,” Reardon explains Reardon is quick to point out the hotel’s location on a parcel of prime real estate is part of its appeal. “There is significant growth and development on Toronto’s waterfront and we are positioned at the crossroads of this impressive evolution.” Like all hoteliers, Reardon understands the importance of innovation. “We continue to have programs that focus on both front and heart-of-the-house areas.” A couple of years ago, the hotel teamed up with celebrity chef Corbin Tomaszeski to give additional cachet to its F&B department. “He’s been a phenomenal addition to our team and brought an entrepreneurial spirit to our food-and-beverage experience.” Looking ahead, the hotel is scheduled to undergo a major renovation of its North Tower guestrooms and corridors with completion set for early 2017. Always pivotal to the hotel’s success, says Reardon, are its 620 associates “They’re the ones who have made the hotel what it is. When we look for solutions to questions, to solve problems or enhance a current practice, the best answers, suggestions and ideas come directly from team members.” u hoteliermagazine.com

PHOTOGRAPHY BY ANDREA STENSON

hen Tim Reardon was growing up in Dudley, Mass., he never imagined he’d work in the hotel industry. But shortly after becoming a bartender at an Orlando resort, he began to see the appeal “I knew with conviction this was something I wanted to do for the rest of my life” he recalls Cutting his teeth in Orlando proved instrumental. “Hospitality is engrained in the culture of [the city], so I was able to learn not only service basics from the ground up, but what it really meant to go above and beyond for guests.” QUICK QUIPS: Today, the GM of the mamPersonal status: Married and moth 977-room Westin Harbour the father of a five-year old daughter, who reminds him that Castle, overlooking Lake Ontario in Toronto, gets to put the prin“she’s the boss.” What makes you successful?: ciples of hospitality into practice, “I never forget where I came helping create memorable experifrom nor the lessons I learned ences for his guests. The 17-year coming up through the ranks.” veteran of the Starwood hotel Stress busters: “Time with chain has been at the helm of the family and going to the gym iconic waterfront property for the whenever I can.” past two years. “The hotel is unique and Westin is an engaged brand focused on “a better you” for both guests and associates, centered on wellness and well being,” he says. Among its myriad initiatives are the Run Concierge, Westin Gear Lending, SuperfoodsRx and its signature Westin Heavenly Bed and Bath, which Reardon calls “amazing programs and services that differentiate and elevate our guest experience, while focusing on the six pillars of well-being.” One of the hotel’s unique features is its more than 74,000 sq. ft. of meeting space, including a free-standing conference centre located across the street from the

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