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LodgingNews February 2016 | Vol. 13 | No. 1
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FOX CREEK HOTEL FEE FIASCO
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C O V E R A G E
DRINK RETHINK AT RENAISSANCE MTL.
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F O C U S
HILTON’S NEW BRAND COMES TRU
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Magnuson ready to expand in Canada
Tom and Melissa Magnuson.
Canada Post Publications Mail Agreement No. 40010152
LONDON, U.K. — Tom Magnuson of Magnuson Hotels wanted to make sure the global hotel company he founded with his wife, Melissa, had its ducks in a row before they expanded to Canada. He says they’re ready now. “We wanted to make sure we had our brands right before we expand with our friends to the north,” said Magnuson, whose company is based in Spokane, Wash., as well as London, U.K. “We do have that now — we’re not 60 years old; we’re a younger, cleaner, more contemporary company.” Growing up in Wallace, Idaho, not far from the Canadian border, Magnuson had a condo in Red Mountain, near Rossland, B.C., for many years and has many fond family memories of those times. There are five Magnuson Hotels in Canada so far including: Magnuson Hotel Creston in Creston, B.C., and Magnuson Hotel Grace Inn in Quesnel, B.C.; plus three independent properties, Skyline Motel, Kamloops, B.C., Travellers Inn, Summerside, P.E.I. and Relax Inn,
hoteliers have the same overhead. Collingwood, Ont. “We offer hotels a way to get business from On Feb. 3, Magnuson Hotels celebrates its 13th birthday. The company now has 1,100 outside the local area at the lowest cost. It’s a hotels in the U.S. and Canada, including 150 cost relief for hotels built as a Hilton, Choice, Magnuson-branded properties and the balance Best Western or Wyndham — we can deliver made up of independent associates who want to all of the franchise-type services such as PMS, keep their own name, but have access to Mag- distribution and brand support — at a flat fee.” And yes, Alberta is one area Magnuson is nuson’s highly managed service platform for intargeting. dependents, Magnuson says. Magnuson says they handle property imThe company has signed a deal with Jin Jiang, and with Louvre hotels, owned by Jin Jiang, provement plans (PIPs) with “encouragement for a cross-distribution platform, much like the and love.” For example, other brands might airlines’ marketing alliances. Combined inven- require an 85-room hotel to install 85 new flattory with these hotels adds up to 600,000 rooms screen TVs. Magnuson would suggest that they or 6,000 hotels. “We’ve gone from Canada, U.S. start with 20, and set those units up as premier and U.K. hotels in the middle of this year, to rooms. Then, once they have the money, they can go buy some more. expand to 50 countries,” explains Magnuson. “One thing we’re proud of is our 48-hour The reason for their success is that “we identified a universal need in the marketplace — brand approval,” he notes. “If a hotel wants to how can I as a hotelier drive the most business make a brand change and renovate, other brand approvals can sometimes take six months.” at the lowest cost?” Magnuson says. The company offers a simple fee structure of 5 per cent of gross revenue, compared to 12.5 per cent for the average midscale brand in the U.S. and Canada, Magnuson adds. “During the last few years in Alberta, anybody could make money, but when times change, the down cycle becomes a lot more challenging since Magnuson Hotel, Creston, B.C.
FEATURE: MORNING GLORY UNPRECEDENTED BREAKFASTS
Hotel GrandeAllée Ascends
QUEBEC — Choice Hotels Canada now has a presence on Quebec City’s main drag since Le Grande-Allée Hotel & Suites has become the 13th property in The Ascend Collection. “It’s a 100-plus-year-old real historic gem, right in the heart of Old Quebec, just outside the wall,” said Brian Leon, managing director of CHC. He added that owner Jean-François Côté, president of Hôtels Nouvelle France, has done a good job updating the hotel and that it is in great shape. Hôtels Nouvelle France is a group of four hotels and two restaurants, located in and around Old Quebec. “We’ve had a great run with Ascend. Two years ago, there were six and now there are 13 and more in discussion,” Leon noted. “It’s a reflection of owners seeing the value of the Ascend program, because it offers global presence but with a local identity.” Continued on page 7
Recent conversion: Days Inn - Vermilion
CONVERSION SUCCESS STARTS HERE. Ready for a change? Our Canadian-based support team is here to help you every step of the way. 416.966.8387 daysinn@realstarhospitality.com