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Volume 28, Number 5

| July/August 2016

Contents

Features 9 JOINING FORCES M&A activity is beginning to

reshape the Canadian hotel landscape By Amy Bostock Scan to view our website

12 BLUE SKIES AHEAD InnVest REIT, one of Canada’s

top hotel portfolios, is acquired by Hong-Kong-backed Bluesky Hotels and Resorts By Lindsay Forsey

17 THE 2016 TOP 50 REPORT LISTINGS 31 I’M WITH THE BRAND Soft brands resonate with

choosy travellers looking for unique experiences By Iris Benaroia

35 LESS IS MORE The cost-effective select-service

model continues to gain popularity with developers and guests alike By Liz Campbell

39 CLEANING HOUSE Why hotels are re-evaluating

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

laundry and housekeeping operations By Andrew Speller

47 FITTING CHOICES Today’s hotel uniforms are making

a fashion statement By Denise Deveau

Departments 2 EDITOR’S PAGE 3 CHECKING IN 52 HOTELIER: Caroline Viens,

hoteliermagazine.com

Quality Inn & Suites Lévis and Hotel & Suites Le Dauphin Quebec

JULY/AUGUST 2016 HOTELIER

EDITOR’S PAGE

TRAVEL TRENDS

his summer, as the world struggles with threats of global terrorism, mounting geopolitical tension and the Zika virus — it may be the perfect time for Canada to shine with both domestic and international tourists. While the Canadian dollar has struggled, tourism to the country has remained buoyant and, according to the Ottawa-based Conference Board of Canada, it should be another great year. Domestic visits are projected to increase by 2.1 per cent, while overnight visits to Canada from the U.S. and overseas are expected to increase by 5.2 per cent. That same report also shows Canadian travel prices are forecast to increase by 1.7 per cent this year, with Halifax, Quebec City, Montreal, Ottawa, Toronto, Winnipeg, Calgary, Edmonton and Vancouver all expected to attract more visitors in 2016. The nine cities cited above will see varied levels of tourism growth, with Edmonton expected to see the lowest growth at 0.8 per cent. Vancouver will see the highest increase, with overnight visits expected to increase by 4.1 per cent, while Toronto should enjoy a 3.3 per cent increase. Recent surveys examined other factors impacting travel decisions. According to a Choice Hotels survey, for example, 89 per cent of Canadians plan to travel within the country in the next two years. Households with kids are even more likely to take a trip, with 92 per cent saying they are ready to hit the road soon. Not surprisingly, children have a large impact on where a family chooses to travel — 88 per cent of those surveyed said children help determine where families go on a trip. And, according to the survey, travellers are looking for value for their money when they choose a hotel, followed by cleanliness and safety. With consumers’ love affair with loyalty points growing by leaps and bounds, 81 per cent of Canadians surveyed admit they look for discounts or reward points when they travel. On the business side, a survey recently undertaken by Booking.com shows while Canadians travelling on business are more stressed about the logistics of business travel, many of them feel it is one of the best perks of their jobs, with half confirming what they love most about travelling internationally for business is the chance to experience a new culture (50 per cent), or to see a new city (46 per cent). Research also shows a fifth of business travellers take the opportunity to extend their business trip to a holiday. Interestingly, Canada was named the fourth most hospitable country to visit while Thailand, Japan, Taiwan — in that order — were ranked ahead. China and the U.S. tied for fifth. With summer now in full swing, hoteliers across the country hope these postive findings will ultimately make for a hot season.

ROSANNA CAIRA

MANAGING EDITOR abostock@kostuchmedia.com ASSOCIATE EDITOR aspeller@kostuchmedia.com ASSISTANT EDITOR dschalk@kostuchmedia.com

DEREK RAE | COURTNEY JENKINS |

MULTIMEDIA MANAGER drae@kostuchmedia.com GRAPHIC DESIGNER cjenkins@kostuchmedia.com

CHERYLL SAN JUAN | MARIA FAMA VIECILI | MAGGIE SPENCE |

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

WENDY GILCHRIST | SENIOR ACCOUNT MANAGER wgilchrist@kostuchmedia.com CIRCULATION | PUBLICATION PARTNERS kml@publicationpartners.com (905) 509-3511 DANIELA PRICOIU | CONTROLLER dpricoiu@kostuchmedia.com MITCH KOSTUCH | FOUNDER

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:

For daily news and announcements: @hoteliermag on Twitter 2

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and Hotelier magazine on Facebook hoteliermagazine.com

Checking In THE LATEST INDUSTRY NEWS FOR HOTEL EXECUTIVES FROM CANADA

AND AROUND THE WORLD

PLAYING BY THE RULES The hotel industry continues to grapple with the new realities of the sharing economy BY DANIELLE SCHALK WITH FILES FROM ROSANNA CAIRA

illennials continue to fuel the popularity of residence-sharing services in major centres across the country, making it increasingly apparent that sites like Airbnb are likely here to stay. According to Airdna’s Scott Shatford, Airbnb is experiencing rapid market expansion around the world, with a 50 per cent increase in Europe and even greater growth in Asia. The homesharing site’s growth rate is comparatively low in Canada, at three per cent, however Shatford notes “every summer we see a spike.” At May’s Canadian Hotel Investment Conference (CHIC), Shatford and Chris Gibbs, assistant professor at Ryerson University, highlighted the growing influence of the site. Gibbs drew attention to the disparity in ADRs of hotels and Airbnb. According to a recent Ryerson University study, in 2015, the average daily rate for hotels was $193.68 while the Airbnb ADR was $124.05. This disparity, as well as the lack of regulation and appropriate taxation on Airbnb-style accommodations, have become a source of growing concern within the industry. Groups such as the Greater Montreal Hotel Association have taken action to help level the playing field, supporting a provincial bill to regulate home-sharing in Quebec, which was tabled last fall. The resulting legislation came into effect in April, making the province the first to establish home-sharing regulations. The new law requires those who regularly rent their homes through Airbnb to be subject to the same rules and taxes as B&Bs and hotels. The municipality of Tofino, B.C. also cracked down on homeowners listing properties for rent on Airbnb’s website. Last spring, the resort town voted to actively enforce a long-standing law requiring short-term rentals to apply for rental licenses. However, it won’t begin enforcing fines for unlicensed properties until 2017. As the prevalence of home-sharing continues to grow, governments in various regions are turning their attention to regulating these businesses. Though these steps will help level the playing field in the travel accommodations market, it also further solidifies the place of home-sharing within it. As Chip Conley, global head of Strategy and Hospitality at Airbnb puts it: “To be regulated is to be accepted.” hoteliermagazine.com

BUSINESS MINDED Airbnb is making it more convenient for companies to use its services for business travel. The site recently launched a new feature allowing business partners, such as travel managers and executive assistants, to book Airbnb listings on behalf of other employees. Once booked, both the employee who is managing travel and the employee who is taking the trip can see the trip details, make changes to the reservation and message the Airbnb host. At present, business travel accounts for 10 per cent of all travel booked through Airbnb.

THE NEW NORMAL Quebec City will be home to Canada’s first property allowing its units to be used specifically for short-term Airbnbstyle rentals. The three-building Groupe Bolduc development, Condos LB9, will have a condominium agreement allowing tenants to offer legal short-term rentals. Tenants will also be able to take on-site training courses free of charge to help them maximize their profits through shortterm rentals. The Condos LB9 development received approval because future owners of the units will pay the necessary taxes in compliance with municipal laws.

JULY/AUGUST 2016 HOTELIER

COMING EVENTS

VACATION WONDERLAND

Sept. 13-14: Canadian Resort Conference, Hilton Niagara Falls, Niagara Falls, Ont. Website: canadianresortconference.com Sept. 22: Kostuch Media’s Icons & Innovators Breakfast featuring George Cohon, Sheraton Centre Toronto Hotel, Toronto. Tel: 416-447-0888 x235; email: dpricoiu@kostuchmedia.com; website: foodserviceandhospitality.com/shop Sept. 25-26: The Third Annual ILHA Luxury Hospitality Summit, Gaylord National Resort & Convention Center, Washington D.C. Website: luxuryhotelconference.com

DIVIDE AND CONQUER

Sept 26-29: The Lodging Conference, Phoenix. Tel: 610-436-8400; email: harry@lodgingconference.com; website: lodgingconference.com Oct. 4-5: Western Canadian Lodging Conference, Vancouver Convention Centre, Vancouver. Tel: 866-887-4453; email: enneyhoang@bigpictureconferences.ca; website: restortinvest.ca Oct. 25: Manitoba Hotel Association Tradeshow, Victoria Inn Hotel, Winnipeg. Tel: 888-859-9976; email: info@mhashow.ca; website: mhashow.ca

FOR MORE EVENTS, 1 2015-12-18 visit http://bit.ly/Hotelierevents

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Valcartier Vacation Village (VVV) has acquired Canadian landmark Hôtel de Glace and is set to incorporate the iconic ice hotel into its Quebec-based vacation facility. With the acquisition of Hôtel de Glace, VVV has announced Jacques Desbois, concept founder, and key artisans will stay on board and the number of jobs will remain the same. Founded in 2001, Hôtel de Glace has become a symbol of winter at its best in Canada and Quebec. Moving Hôtel de Glace to the VVV site follows the company’s announcement of a major construction project to build an immense indoor waterpark, a four-star hotel, a one-of-a-kind spa and a selection of restaurants. “This will bring our total investment in Valcartier up to $130 million — $60 million to date, $65 million underway, plus the $5 million [recently] announced,” says Guy Drouin, CEO and founder of VVV. “As of this December, the Quebec City area will be home to Eastern Canada’s largest all-season resort.” Hôtel de Glace will open its doors at the VVV site in December 2016.

8:28 AM

Hilton Worldwide Holdings Inc. has formally filed to separate into three distinct, publicly traded companies. As previously Hilton, Mississauga announced, the intention is that the company’s core Management & Franchise business will continue operating under the Hilton name, while its timeshare business and the bulk of its real-estate business become separate entities. “The filing of the Form 10 Registration Statements is an important milestone in simplifying Hilton to a capital-light, fee-based business, while fully activating our real-estate and timeshare businesses as stand-alone companies,” explains Christopher J. Nassetta, president and CEO of Hilton. “We look forward to completing the spins later this year, realizing significant benefits for all three companies and continuing to generate long-term value for Hilton shareholders.”

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INDUSTRY HONOURS KML editor and publisher Rosanna Caira was presented with an Honorary degree, Bachelor of Business Administration – Hospitality from George Brown College during the school’s convocation ceremonies in June. Rosanna Caira and Lorraine Trotter “Rosanna has been a leader and friend to all of us in the hospitality and culinary industry for many years,” said Lorraine Trotter, dean, Centre for Hospitality and Culinary Arts (CHCA) and International Centre at George Brown College. “The tireless passion and enthusiasm Rosanna brings to her connections and relationships in the industry, including her mentorship of students, inspired us to recognize her [with this honorary degree].” A longtime supporter of the CHCA, Caira has shared her expertise with students as a mentor, a guest speaker, a participant on industry panels and networking events and has provided media coverage of CHCA events. Caira was also the keynote speaker at the event, addressing both the morning and afternoon graduating classes of 2016. “I am truly humbled by the recognition that has been bestowed on me with this honorary degree,” said Caira.

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

InBrief The Four Seasons Hotel Toronto is expected to be put up for sale by Kingdom Holding Company. The iconic hotel is predicted to fetch between $200 million and $250 million, which would make it the most expensive sale of a Canadian hotel in the country’s history…Starwood’s loyalty program, Starwood Preferred Guest (SPG) has launched a new Snapchat initiative. SPG now offers seven branded geofilters at 650 of its hotels in Canada, the U.S. and the U.K., allowing users to share their location via Snapchat with digital postcards… Wyndham Hotel Group is partnering with PHI Hotel Group to develop 25 Wingate by Wyndham hotels over the next 25 years and 15 Hawthorn Suites by Wyndham hotels over the next 15 years in Canada. Markets will include Calgary, Montreal, Ottawa and Halifax…Atlific Hotels has unveiled

the newly renovated Temple Gardens Hotel & Spa in Moose Jaw, Sask. The property features a transformed lobby complete with custom furniture and an 18-foot waterfall, as well as a new ballroom…Marriott International has partnered with Cruise Lines International Association (CLIA) to offer its members reward benefits such as commissions on qualified hotel bookings throughout its 19 brands. The partnership also allows CLIA agent members, who complete Marriott’s Hotel Excellence training program and who become Marriott-certified hotel sales specialists, to benefit from Marriott’s Fam-Tastic familiarization rate program…InterContinental Hotels Group is slated to open a third hotel with Le Groupe Robin. The new 111-room Holiday Inn Express & Suites in Trois-Rivières, Que. is set to open in early 2018…Ramada Plaza and Conference Centre in Abbotsford, B.C., has been purchased by Vancouver-based Wanson Develop-

ment for an undisclosed sum. The company has begun a refresh of the property’s 116 guestrooms and will appoint a new GM…Wyndham Hotel Group awarded 23 Canadian Super 8 hotels with the title “Pride of Super 8 Hotels” for 2015. The recognized properties reached this status by achieving excellence in categories including performance in qualityassurance evaluations and customer feedback scores…Rosewood Hotel Georgia has partnered with local barbershop Barber & Co to launch the Ultimate Gentleman’s Experience program. Through this new offering, the hotel’s gentleman guest can treat himself to a package which includes a luxurious shave, relaxing massage and hand-crafted cocktails…Le Méridien Versailles in Montreal has unveiled its newly renovated guestrooms, lobby, meeting rooms and public spaces. The revamp also introduced the brand’s signature Le Méridien Hub to the property…Holiday Inn Winnipeg South Hotel has wrapped up its

year-long renovation. The Atlific Hotels-managed property overhauled its 170 guestrooms, lobby, restaurant, meeting space and fitness centre.

People Four Seasons Hotels and Resorts founder and chairman Isadore Sharp was presented with the prestigious Isadore Sharp 2016 Cornell Icon of the Industry Award. The award, presented by the Cornell University School of Hotel Administration, honours the lifetime achievements of hospitality and travel industry visionaries, recognizing their professional and philanthropic contributions which have transformed the global hospitality industry and society…Indu Brar is the new GM of the Fairmont Empress Hotel in

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Victoria. Brar is the property’s first female GM and will be managing the hotel’s $30-million renovation process, due to be completed by June 2017…Larry Law, president and CEO of Living Water Resort & Spa in Collingwood, Ont., has received the 2016 Industry Recognition award for long-standing contributions to the accommodations industry. The award was presented to Law by the Simcoe Region chapter of the Ontario Restaurant Hotel and Motel Association (ORHMA). Law’s community work in Collingwood includes providing Christmas dinners to more than 300 needy people in the community every year, donating $100,000 to Georgian College and getting involved with many charities…Jagdish Nair has joined the Palm Holdings team as its VP of Construction and Project Management. Nair joins Palm Holdings from Starlight Investments, where he oversaw a team managing capital projects for a large portfolio of multi-residential buildings in the country.

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SupplySide German hardware specialist Häfele and Dubai-based Interel have partnered to create the world’s first Bluetooth-based door lock and guestroom control integration for the hospitality industry. The technology integrates Häfele’s Dialock electronic-locking system with Interel’s guestroom management solution, allowing hotel operators to reap all the benefits of an online door lock system… Kaba introduced its new Ambiance access management software at HITEC in June. The software includes a library of web services that enable clients to add active controls to third-party systems such PMS and EMS. Ambiance’s intuitive operation workflows simplify training and support to reduce costs for users. hoteliermagazine.com

THE TOP

REPORT

JOINING FORCES

M&A ACTIVITY IS BEGINNING TO RESHAPE THE CANADIAN HOTEL LANDSCAPE

anada’s Top 50 hotel companies closed out 2015 with gross sales of $19.9 billion, up 6.5 per cent from 2014. Mergers and acquisitions dominated headlines as the hotel companies padded their portfolios to defend against the growing impact of online travel agents such as Expedia Inc. — which

hoteliermagazine.com

BY AMY BOSTOCK

reduces hoteliers’ power to set rates — and competition from homerental companies such as Airbnb Inc. (see sidebar on p.10) But, while the industry was abuzz with M&A activity in 2015, the leading five operators on this year’s Top 50 Report showed little movement in terms of rankings. Four Seasons Hotels and Resorts, which finished 2015 with estimated $4.5 billion in sales, remained in

the number-1 position, opening new properties in Bahrain, France, South Korea, Colombia and Morocco. The brand embraced technology last June when it introduced the multifunctional, content-rich global Four Seasons App, which allows guests to make and manage reservations; check-in and check-out; book luggage pickup and airport transfers; make special requests; order room JULY/AUGUST 2016 HOTELIER

THE TOP 50 REPORT|

CHART CLIMBER Marriott Hotels of Canada moved up three spots on this year’s Top 50, finishing 2015 with gross sales of $1.4 billion

service, book restaurant and spa reservations and tee times; as well as access maps. “With this innovative new app, Four Seasons continues to enhance the guest experience, setting the standard in luxury digital-service delivery,” says Allen Smith, president and CEO, Four Seasons Hotels and Resorts. “Developed based on guest insights and extensive testing, the Four Seasons App is user-friendly and feature-rich, with the services guests have told us they most desire.” Close on Four Seasons’ heels, in second position, FRHI Hotels and Resorts posted estimated gross sales of $4.1 billion in 2015. FRHI, par-

AGE OF DISRUPTION ent company of Fairmont Hotels & Resorts, Raffles Hotels & Resorts and Swissôtel Hotels & Resorts, made headlines last December when it signed a deal with Paris-based AccorHotels worth approximately $2.9 billion U.S. in cash and shares. The deal, expected to close in mid-2016 pending shareholder approval, will add 155 hotels and resorts (40 of which are under development) and more than 56,000 rooms worldwide to Accor’s portfolio. Canadian properties included in the deal are the Fairmont Banff Springs in Alberta and Fairmont Le Château Frontenac in Quebec. Climbing two spots this year to third place, Marriott Hotels of Canada grew from $785 million in 2014 to $1.4 billion in 2015, thanks in part to its acquisition of Delta Hotels. The lodging juggernaut continued to gobble up the competition last year, acquiring Starwood Hotels & Resorts Worldwide for $13.3 billion, following a bidding war with China’s Anbang Insurance. The deal creates the world’s largest hotel company with more than 1.1 million rooms in 5,500 hotels worldwide across more than 30 brands. Starwood Hotels & Resorts

Disruption hit the Canadian hotel industry with a vengeance in 2015 in the form of new companies and technologies, such as Silicon Valley-based AirBNB, eating into the customer base by offering short-term stays in residential properties. Fuelled by the millennial generation, hoteliers are becoming more interested — and invested — in understanding the impact of the residence-sharing online community marketplace. At the Canadian Hotel Investment Conference (CHIC), held at the Metro Toronto Convention Centre, Lyle Hall of HLT Advisory, Chris Gibbs, assistant professor at Ryerson University and Scott Shatford, Airdna, discussed the growing influence of Airbnb, touching on its size, growth and next area of focus. “Like it or not, it’s a topic that’s been discussed at a lot of forums,” said Hall, in introducing the session. “There are those who believe it’s here to stay, while others see it as a flash in the pan.” According to Shatford, Airbnb is growing at a fast pace, with market growth of 50 per cent in Europe, 20 per cent in the U.S. and three per cent in Canada. Citing statistics from a recent Ryerson University study, Gibbs says in 2015, the average daily rate for hotels was $193.68 while the Airbnb ADR was $124.05, explaining that most Airbnb users do so for vacations as opposed to business and that convenience, overall value for money and a home-like feeling are the key factors fuelling its growth. Until recently, growth in Airbnb has traditionally been driven by the leisure market, but Shatford warned Airbnb is now investing more in the business community.

RENEWED PRESENCE Toronto-based Crescent Hotels & Resorts Canada has more than proven its approach of calculated, strategic growth can pay off. In 2015, the management company reported a 280-per-cent increase in sales over the previous year, totalling $95 million. This increase can be largely attributed to the growth of Crescent’s Canadian portfolio, which tripled from five units at year’s end 2014 to 15 units in 2015. “In 2014, we decide to step away from a portfolio that wasn’t in sync [with our goals],” says Tony Cohen, EVP. “We took a big step back by walking away — in terms of our size — but we thought it was the right thing.” Cohen characterized 2015 as a year defined by growth. Crescent not only increased its sales and portfolio, but gained a presence in three new provinces. “We added well over 15,000 guestrooms, [units in] three new provinces and a nice variety of products.” The company has kept this momentum going into 2016. “We’ve already added two hotels; we’ve expanded to yet another province (Saskatchewan) and by the end of this year, we will have another two to four properties,” Cohen adds. Riding this momentum into 2017, Cohen and the Crescent team aim to enter key markets such as Montreal, Calgary, downtown Vancouver, Halifax and St. John’s while “continuing to build our portfolio and infrastructure to support and enhance those assets,” says Cohen. — Danielle Schalk

JULY/AUGUST 2016 HOTELIER

hoteliermagazine.com

Worldwide Inc. experienced rapid expansion in 2015, opening Four Points properties in Surrey and Moncton; the Element Vancouver Metrotown; and signed deals for two new-build properties — the Westin Calgary Airport and the Westin Edmonton Gateway. The brand reported 2015 gross sales of $999 million, up from $912 million in 2014 and good enough for fourth spot in this year’s Top 50. Then, in December, the Stamford, Conn.-based company sent shockwaves through the industry when it announced Marriott International’s bid to acquire Starwood’s assets. From a development perspective,

STRONG YEAR FOR SUNRAY Sunray Group of Hotels had a stellar year. The Oshawa-based company saw its gross sales increase from $52.7 million in 2014 to $75.2 million in 2015, an increase of 42.7 per cent, propelling it four spots to number 31 on this year’s Top 50. Founded in 2006, Oshawa-based Sunray Group is a family owned, multifaceted corporation specializing in hospitality and development. The group has successful partnerships with popular hotel brands such as Marriott, Starwood, Carlson, Best Western and Choice Hotels. Sandeep Gupta, VP, Sunray Group of Hotels, says the company will continue to grow in 2016. “We’re finishing a conversion of our TownePlace Suites Windsor, our Courtyard in Oshawa and our Fairfield property in Montreal. Once these properties are converted, we expect to beat our 2015 sales,” he says. Gupta says the company’s success is not just due to its properties. “We have an in-depth executive team; we have been able to cut costs where necessary; and put a strong regional sales force in place to garner business that wasn’t there before.” Gupta says 2016 has been extremely productive thus far. “In the next 90 days, we’re closing on five more properties,” he says. “But, we expect next year to be even stronger than this year because we are opening 10 new properties and conversions.” — Andrew Speller hoteliermagazine.com

STAYING STRONG FRHI held on to the number-2 spot on this year’s Top 50, posting estimated sales of $4.1 billion

Four Points by Sheraton continued to lead Starwood’s pipeline in 2015, while demand for the Aloft brand generated a 65-per-cent increase in signings over the prior year. Deals for brands such as St. Regis, The Luxury Collection, W Hotels and Sheraton also experienced growth. “This was a remarkable year of record-breaking growth for Starwood Hotels & Resorts, with the highest number of both signings and organic openings in any single year in the company’s history,” says Simon Turner, president of Global Development. “We continued to enjoy balanced growth across both mature and emerging markets and across all of our brands, with a notable increase in the number of conversions. Approximately one-third of our openings in 2015 were conversions.” Wyndham Hotel Group dropped one position this year, rounding out Hotelier’s top five companies. With estimated gross sales of $859 million, the publicly traded company based in Parsippany, N.J. added six new units to its portfolio, bringing its total Canadian properties to 511. Last year, Wyndham signed a deal with Morgan Hill, Calif.-based Corinthian Development Company to grow Wingate by Wyndham in the U.S. and Canada. The agreement will see $250 million invested in 15 new-construc-

tion Wingate by Wyndham units during the next two years in top markets such as Toronto, Vancouver, Denver, Seattle, Nashville and Boston. In October, the company launched a new rewards program for meeting planners. Go Meet allows meeting planners to earn points for every dollar spent at participating hotels. Making a reappearance on the Top 50 after a few years’ absence, Travelodge/Thriftlodge came in at number 21 with gross sales of $140 million. The Calgary-based company currently has 98 units in Canada. In April 2015, Florida-based Waramaug Hospitality Canada LLC, in partnership with Alberta’s Superior Lodging Corporation, announced the purchase of the master license rights to Travelodge Canada from Halifax-based Holloway Lodging Corporation. The newly formed joint entity, Superior Lodging Development TL Corporation, led by CEO Marc Staniloff, CEO, oversees the continued growth of the Travelodge brand in Canada. “The market is ripe for continued expansion,” says Staniloff. “We intend to remain on the forefront of the market and appeal to new and existing franchisees and investors alike to realize a solid investment from our foothold in Canada.” u JULY/AUGUST 2016 HOTELIER

THE TOP 50 REPORT|

INNVEST REIT, ONE OF CANADA’S TOP HOTEL PORTFOLIOS, IS ACQUIRED BY HONG-KONGBACKED BLUESKY HOTELS AND RESORTS 12

JULY/AUGUST 2016 HOTELIER

STORY BY LINDSAY FORSEY

here are a lot of things about Canada that leave other countries envious: The Rockies and the Great Lakes; bison burgers and craft beer; friendly folks and phenomenal cities coast to coast to coast. From a foreign investor perspective, our relatively strong and stable economy yields a strong appeal. Put it all together and Canada is downright irresistible. Or so it would seem, given the recent announcement that InnVest Real Estate Investment Trust – one of Canada’s largest hotel portfolios–will be scooped up by Bluesky Hotels and Resorts, Inc., for a cool $2.1 billion. Bluesky, which describes itself as a Canadian-based company backed by Hong Kong capital, will acquire Torontobased InnVest, including net debt, along with its 109 hotels

hoteliermagazine.com

P H O T O G R A P H Y B Y J O S H F E E , I M A G E C O U R T E S Y O F C O L L I E R S I N T E R N AT I O N A L ’ S K N O W L E D G E L E A D E R M A G A Z I N E

BLUE SKIES AHEAD

DREW COLES president and CEO of InnVest REIT

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JULY/AUGUST 2016 HOTELIER

H O S P I TA L I T Y I N D U S T R Y *

THE ADVANTAGE TO GETTING IN WITH A LOW DOLLAR IS THAT YOU HAVE THE POTENTIAL OPPORTUNITY TO GET OUT WITH A HIGHER DOLLAR, PLUS MARKET APPRECIATION DAVID LARONE, senior managing director at CBRE Hotels

representing 14,500 rooms, a 50-per-cent interest in franchisor Choice Hotels Canada and a 20-per-cent stake in Toronto’s historic Fairmont Royal York. The deal was announced May 10th and was set to close in the third quarter of 2016 following InnVest’s annual meeting of unitholders, which was scheduled for June 28th, where it had to be approved by no less than 66.66 per cent of votes. The arrangement is already unanimously supported by InnVest’s board and also has the support of 29.1 per cent of unitholders, including KingSett Real Estate Growth LP No. 5. This comes as no surprise, given the $7.25-cash-per-unit offer — a 37-per-cent premium over the 30-day volume-weighted average trading price of $5.28 per unit on the Toronto Stock Exchange – plus a $100 million deposit.

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FOREIGN INTEREST In February 2015, China’s Anbang Insurance Group Co. Ltd. bought a 66-per-cent stake in Vancouver’s Bentall Towers

“The deal was totally unsolicited and was not part of our strategic plan, but Bluesky presented an offer through our board chair in early April that was extremely compelling,” says Drew Coles, president and CEO of InnVest. “Their offer demonstrated they are serious about wanting to be in the hotel space in Canada. They did their research and were extremely well-advised by McCarthy Tétrault law firm. We took the offer to our board of direchoteliermagazine.com

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THE TOP 50 REPORT|

tors and they unanimously approved to accept it and move forward with proposing the transaction to the unitholders,” he says. The deal follows another significant purchase by Asian capital in Canada earlier this year. In February, Beijingbased Anbang Insurance Group Co. Ltd., which reportedly holds US$14 billion in assets, purchased a 66-per-cent stake in Vancouver’s Bentall Towers I, II, III and IV — a 1.5-million-sq.-ft. office complex with retail space. The Chinese company was also set to buy Starwood Hotels and Resorts Inc. for US$14 million in March, but walked away from the deal. “Some investors view Canada as more stable than other foreign markets,” explains Coles. Outside of Alberta, the economy is looking stronger all the time and there’s a good balance between safety and opportunity for investors. Certainly, hotels in particular are considered very good performers right now.” David Larone, senior managing director of Torontobased CBRE Hotels, agrees the Canadian marketplace appeals to foreign investors. “If you look at the major industry transactions over the past couple of years, they are predominantly Canadian, and about 60 per cent of that private equity has come from offshore capital,” he says. “There is money looking to come from Europe and the Middle East as well. Offshore investors look at the

HISTORIC ASSET BlueSky will acquire InnVest’s 20-per-cent stake in the historic Fairmont Royal York in Toronto

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THE TOP 50 REPORT|

stability of the Canadian market. It’s not in the same wild swings as the U.S., so when it comes to moving dollars into hard assets, Canada is on the shopping list for sure. The weak loonie ups the game, too, making an acquisition in Canada even more attractive. The advantage to getting in with a low dollar is that you have the potential opportunity to get out with a higher dollar, plus market appreciation.” When the transaction closes, InnVest will become a private enterprise, meaning there will be significantly fewer opportunities for the public to invest in the industry, but it’s a boon on the flipside. “Currently we are reliant on the public markets to raise capital and in order to grow this company we are dependent on capital,” says Coles. “Bluesky is able to provide private capital and that means we can accelerate our strategy. In 2014, InnVest became focused on internalizing the organization, rather than relying on outside third-party assistance in departments including human resources, asset management and back-office finance. Since then, the company has developed a robust platform driven by asset management.” “Bluesky was attracted to InnVest because they know we’re capable of driving results out of the assets,” explains Coles. “It’s about the portfolio itself, which gives scale and diversity of assets, from Fairmont to Holiday Inn, as well as diversification of geography across Canada. But,

they also like the internalization of the company and knowing we have the talent and capabilities to make it happen; plus we have strong, established relationships with all of the hotel brands and managers, lenders, consultants and financial institutions.” Bluesky is intent on keeping the entire management structure of InnVest in place and continuing with the company’s ongoing strategy to improve assets by selling off those in lower markets and acquiring higher-market properties. Case in point: InnVest recently acquired the Hyatt Regency Vancouver, the Marriott in Ottawa and a partnership stake in Toronto’s Fairmont Royal York. “We’ll continue to grow and reinvest in our assets,” says Coles. “We’re growing our talent and focusing on asset management to drive results and if that causes competitive tension, it only makes the Canadian hotel landscape even stronger. Overall, we view this transaction as a very positive thing for our exiting unitholders, our management team, the industry and Bluesky.” Bluesky chief executive officer Li Chen echoes those goals in a statement released when the deal was announced, saying “This transaction is an investment that will establish a global platform from which Bluesky will continue to pursue growth opportunities in North America.” u

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THE TOP 50 REPORT| RANK COMPANY UNITS ’16 ’15 2015

GROSS SALES 2015 (millions)

GROSS SALES 2014

BUSINESS OPERATIONS

(millions)

1 1 Four Seasons Hotels 98 ‡*$4,538.9 ‡*$$4,400.0 and Resorts Toronto, ON

A private company, Four Seasons Hotels and Resorts manages three units in Canada and 95 internationally. During the past year, Four Seasons opened new properties in Bahrain, France, South Korea, Colombia and Morocco. This year, Four Seasons launched three new Four Seasons Private Jet journeys, one of which partners with Copenhagen-based Noma and its acclaimed executive chef René Redzepi.

2 2 FRHI Hotels & Resorts 115 ‡*$4,135.9 ‡*$4,100.0 Toronto, ON

A private company, FRHI Hotels & Resorts manages 20 units in Canada and 95 internationally. FRHI plans to open five hotels internationally in 2016. Late last year, the company signed a deal with Paris-based Accor Hotels that will see FRHI join Accor’s portfolio of luxury hotels. The transaction is expected to close mid-2016.

3 5 Marriott Hotels of Canada 130 $1,384.5 $784.7 Mississauga, ON

A subsidiary of Marriott International, Marriott Hotels of Canada is the franchisor and management company of 130 hotels in Canada and 4,290 internationally. Last year, Marriott Hotels of Canada opened 11 properties in Canada and gained 37 hotels due to Marriott International’s acquisition of Delta Hotels. The company plans to open 18 hotels in 2016 and expects to significantly increase its portfolio when the merger closes later this year.

4 3 Starwood Hotels & Resorts 69 $999.1 $912.2 A publicly traded company, Starwood Hotels & Resorts Worldwide Inc. owns, franchises and Worldwide Inc. manages 69 hotels in Canada and 1,228 units internationally. Last year, the company Stamford, CT continued to expand the Four Points brand in Canada. In 2016, Starwood expects to complete a merger agreement with Marriott international Inc. which will result in the world’s largest hotel company. 5 4 Wyndham Hotel Group 511 *$859.0 $849.9 Parsippany, NJ 6 6

InterContinental Group (IHG) Atlanta, GA

170

*$762.5

*$776.0

A publicly traded company with 511 properties in Canada and 7,301 outside of Canada with brands such as Wyndham Hotels and Resorts, Wyndham Garden Hotels, Tryp by Wyndham, Wingate by Wyndham, Microtel Inn & Suites by Wyndham, Ramada, Baymont Inn & Suites, Days Inn, Super 8, Howard Johnson, Travelodge and Knights Inn. (The Wyndham Hotel Group has a master franchisee/franchisor relationship with Days Inn.) InterContinental Hotels Group is a publicly traded company that owns, franchises and manages 170 units in Canada and 4,862 internationally. It is the master franchisor of InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn Hotels, Holiday Inn Express, Staybridge Suites and Candlewood Suites. Last year, IHG acquired Kimpton Hotels & Restaurants Group LLC. Early this year, the company opened its 5,000th hotel, the Hotel Indigo Lower East Side New York.

7 7 Hilton Canada Co. 115 $708.0 *$620.6 Hilton Canada Co. is a publicly traded company, which is a subsidiary of The Blackstone Group Mississauga, ON and the franchisor of 115 hotels in Canada and 4,505 internationally, with brands such as DoubleTree by Hilton, Embassy Suites by Hilton, Hampton/Hampton Inn & Suites by Hilton, Hilton Garden Inn, Homewood Suites by Hilton and Home2 Suites by Hilton. The company currently has seven hotels under construction in Canada, which will add 998 rooms to Hilton’s portfolio. 8 9 InnVest REIT 109 $553.4 $534.8 InnVest REIT is a publicly traded real-estate investment trust (REIT) with 109 properties in Mississauga, ON Canada. In 2015, InnVest REIT acquired the Hotel Saskatchewan in Regina, as well as a 33-per-cent interest in the Courtyard Marriott Downtown Toronto. This spring, the company entered into a buyout agreement with Bluesky Hotels and Resorts worth approximately $2.1 billion. 9 8 Best Western International Phoenix, AZ

200

542.7

$540.1

10 10 Choice Hotels Canada Inc. 319 $538.4 $526.0 Mississauga, ON

Best Western International is a private company that licenses 200 properties in Canada and 3,545 outside Canada. Over the past year and a half, Best Western introduced a new urban, boutique brand, Vīb; a soft brand, BW Premier Collection; and a new construction, midscale brand GLō. It plans to continue to focus on development of the company’s Core, Plus and Premier brands in Canada in 2016, with 17 hotels in the pipeline. Choice Hotels Canada Inc. is a private company that is the master franchisor of the Comfort, Comfort Suites, Quality, Sleep Inn, Clarion, Econo Lodge, Rodeway Inn and the Ascend Hotel Collection. It has a master franchise agreement with Choice Hotels International. In 2015, the company grew its Canadian portfolio by 10 properties.

*Denotes estimate ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units hoteliermagazine.com

JULY/AUGUST 2016 HOTELIER

THE TOP 50 REPORT| RANK COMPANY UNITS ’16 ’15 2015

GROSS SALES 2015 (millions)

GROSS SALES 2014

BUSINESS OPERATIONS

(millions)

11 12 Atlific Hotels 60 $480.0 $461.0 Montreal, QC

A privately owned hotel-management company, Atlific Hotels has 60 units in Canada. During the past year Atlific added the dual-branded Courtyard by Marriott and Residence Inn by Marriott Calgary South to its portfolio, as well as the newly opened Residence Inn Regina and Algoma Water Tower Inn, Sault Ste. Marie, Ont.

12 13 Oxford Properties Group 7 $459.8 $427.3 Toronto, ON

A privately held company, and a subsidiary of the Ontario Municipal Employees Retirement System (OMERS), Oxford Properties Group is an owner, developer, management company, lessor and real-estate company with seven properties in Canada.

13 18 SilverBirch Hotels & Resorts 28 *$366.2 $196.2 Vancouver, BC

A private company that owns, develops and manages 28 properties in Canada with brands such as Marriott, Best Western, Hilton, Choice Hotels and Radisson. This year, the company is set to open the Marriott Calgary Airport.

14 16 O’Neill Hotels & Resorts Ltd. 83 ‡$250.6 ‡$206.9 A private, Canadian-owned company that manages 83 properties, including one in Canada and Vancouver, BC and 82 in the U.S., with brands such as Marriott, Hilton, IHG, Starwood, Choice Hotels, Carlson Rezidor and 45 Oak Tree Inns. During the past year, O’Neill added 20 hotels to its portfolio; 16 of the company’s branded properties also underwent $10.3 million in capital improvement plans. 15 15 Sandman Hotel Group 51 *$230.1 *$207.6 (Northland Properties) Vancouver, BC

A division of Northland Properties, which operates Sandman Hotels and Sutton Place hotels as well as a collection of restaurant brands with 49 hotels in Canada and two in the U.K. In 2016, Northland Properties plans to renovate several properties. The company also has six hotels scheduled to open in the next few years, including locations in the U.S. and the U.K.

16 17 Coast Hotels Vancouver, BC

A private company that owns, franchises and manages 28 properties in Canada and 10 internationally. In 2016, it plans to continue expansion throughout Western Canada and the Western U.S.

17 14

$220.7

$201.5

Superior Lodging Corp./ 142 $201.0 $260.0 MasterBuilt Hotels Calgary, AB

18 19 Temple Hotels Inc. Winnipeg, MB

$177.8

$188.4

19 20 Days Inns - Canada 108 $179.2 $180.0 Toronto, ON

Superior Lodging Corp./MasterBuilt Hotels is a privately held company that operates as an owner, developer, management company, franchise company and real-estate developer. In 2015 it acquired the master license rights to Travelodge Canada and Thriftlodge, and partnered with Waramaug Hospitality LLC to form a new joint entity, Super Lodging Development TL Corporation, to oversee the growth of the Travelodge brand in Canada. The company has 14 hotels in the pipeline for 2016. Temple Hotels Inc. is a publicly traded company with 29 properties in Canada. Last year, the company opted to internalize its management services. A privately owned company, Days Inns - Canada is the master franchisor of the Days Inn brand in Canada. The company has 108 units in Canada with plans to franchise another 10 new units in 2016.

20 22 Carlson Rezidor Hotel Group 25 *$152.8 *$159.0 A subsidiary of Carlson, Carlson Rezidor Hotel Group is a privately owned company with 25 Minnetonka, MN units in Canada and 1,100 internationally. Its global brands include Quorvus Collection, Radisson Blu, Radisson, Radisson Red, Park Plaza, Park Inn by Radisson and Country Inns & Suites By Carlson. The company plans to add two units in Canada in 2016 and 80 internationally. 21 - Travelodge/Thriftlodge 98 $140.0 Calgary, AB

—

The Travelodge/Thriftlodge brand has 98 units in Canada. In 2015, Superior Lodging Corporation and Florida-based Waramaug Hospitality Canada LLC acquired the master licence rights to Travelodge Canada from Halifax-based Holloway Lodging Corp.

22 23 Easton’s Group of Hotels 15 $134.7 $109.6 Markham, ON

A private company that is the owner, developer and management company of 15 units in Canada. During the past year Easton’s Group of Hotels acquired the Westin Bristol Place Airport Hotel, Four Points by Sheraton Toronto Airport and the Holiday Inn Mississauga. The company currently has several new builds in the pipeline including the Element Toronto Airport Hotel and Canopy by Hilton Downtown Toronto.

23 24 Executive Hotels and Resorts Vancouver, BC

A privately held company with 17 units. During the past year, the company opened the Executive Hotel Cosmopolitan in Toronto, as well as the Executive Hotel Le Soleil in New York.

*$111.5

$105.0

*Denotes estimate ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

JULY/AUGUST 2016 HOTELIER

hoteliermagazine.com

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THE TOP 50 REPORT| RANK COMPANY UNITS ’16 ’15 2015

GROSS SALES 2015 (millions)

GROSS SALES 2014

BUSINESS OPERATIONS

(millions)

24 25 Holloway Lodging Corp. 35 $110.7 $97.8 Halifax, NS

A publicly traded company that is the owner and management company of 35 properties in Canada and one internationally. In 2015, the company rebranded several properties across the country, including the newly reopened Doubletree by Hilton in London, Ont. and Travelodge in Sydney, N.S. The company also internalized management of its entire hotel portfolio and sold the Travelodge and Thriftlodge franchise business. In 2016, Holloway plans to add three new hotels to its portfolio.

25 24 Accor Canada Inc. 8 $95.0 $95.0 Mississauga, ON

A subsidiary of AccorHotels in Paris, France, Accor Canada Inc. owns, franchises and manages eight Sofitel and Novotel properties in Canada. Late last year, AccorHotels announced the signing of an agreement for the acquisition of Fairmont Raffles Hotels International, with the transaction expected to close in mid-2016. The company has also recently acquired several luxury service home-rental companies.

25 44 Crescent Hotels 15 $95.0 $25.0 Crescent Hotels & Resorts is a private company that manages 15 properties in Canada. & Resorts Canada During the past year, Crescent added more than 1,000 rooms to its portfolio and enhanced culi- Toronto, ON its culinary division. 26 27 Groupe Germain Hôtels 12 $86.1 $73.8 A private company that owns 12 units in Canada. During 2015, Groupe Germain added the Montreal, QC HÔtel Le Germain Charlevoix (formerly HÔtel La Ferme) and Alt Winnipeg to its portfolio and invested $5 million in renovations at the Hotel Le Germain Toronto. In 2016, the company has opened the Alt Ottawa and has begun construction on a Hotel Alt in St. John’s, Nfld. and the Hotel Le Germain in Ottawa. 27 35 Sunray Group 26 $75.2 $52.7 Sunray Group is a privately owned company that is the owner and management company of Toronto, ON 26 units in Canada. The group added four properties in 2015 and plans to continue growth in 2016 with new acquisitions, as well as new builds. Sunray is set to open a TownePlace Suites in Windsor, Ont., Courtyard by Marriott in Oshawa, Ont. and a Four Points by Sheraton in Vaughan, Ont. later this year. 28 28 Genesis Hospitality Inc. Brandon, MB

$75.1

$73.5

Genesis Hospitality is a private company that owns 10 hotels in Canada. During 2016, the company plans to add one to two properties in Western Canada.

29 29 Skyline Hotels and Resorts 5 *$71.1 $71.1 Toronto, ON

A publicly traded company and a subsidiary of Skyline International Development Inc., Skyline Hotels and Resorts manages five properties in Canada and three internationally. Last year, the company acquired the Renaissance Hotel in downtown Cleveland.

30 30 Airline Hotels Saskatoon, SK

A privately owned company with nine properties in Canada. The company plans to acquire one full-service hotel property per year for the next 10 years, starting in 2016.

*Denotes estimate

$68.1

$67.5

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THE TOP 50 REPORT| RANK COMPANY UNITS ’16 ’15 2015

31 50 Vista Hospitality Group Kitchener, ON 32 31 at

Pomeroy Lodging Grande Prairie, AB

33 33 Lakeview Management Inc. Winnipeg, MB 34 40

GROSS SALES 2015 (millions)

GROSS SALES 2014

BUSINESS OPERATIONS

(millions)

$60.0

$20.0

A private company that owns and manages four properties in Canada and six internationally, Vista Hospitality Group has invested more than $20 million in enhancing its assets over the last 12 to 18 months. Last year, it converted the Delta hotel in Kitchener, Ont., to a Crowne Plaza hotel. Vista Hospitality plans to add five hotels to its Canadian portfolio, as well as five to seven properties to its international portfolio in 2016. It is also in the process of renovating its New York properties.

$55.2

$67.2

Pomeroy Lodging owns, develops or manages 18 units in Canada. Last year, the company launched a new brand — Hotello by Pomeroy — opening its first location in Vegreville, Alta. It also opened its seventh Pomeroy Inn & Suites location and purchased the Delta Lodge Kananaskis. Construction is currently underway on a new Pomeroy Inn & Suites property in Prince George, B.C.

‡$55.1

‡$63.7

A publicly traded, Canadian-owned company that owns, develops and manages 22 properties in Canada.

Urgo Hotels, L.P. 9 *$51.9 $40.4 Bethesda, MD

Urgo Hotels is the owner, developer and management company of nine units in Canada and 38 internationally. The company currently has seven hotels under construction.

35 36 New Castle Hotels & Resorts 7 $50.9 $47.7 A private company that owns, manages, franchises and develops seven properties in Canada Shelton, CT and 15 internationally. The team recently completed renovations at the Residence Inn Moncton, N.B.

*Denotes estimate ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

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THE TOP 50 REPORT| RANK COMPANY UNITS ’16 ’15 2015

GROSS SALES 2015 (millions)

GROSS SALES 2014

BUSINESS OPERATIONS

(millions)

36 34 Gouverneur Inc. 11 $50.0 *$57.0 Montreal, QC

A private company that is the owner, franchisor and management company of 11 units. Last year, Gouverneur completed guestroom renovations at Gouverneur Hotel Rimouski. The company is also in the process of renovating its Sherbrooke and Saguenay hotels. Both projects are expected to be completed this year.

37 38 Rosdev Hospitality 8 ‡$47.4 ‡$43.5 Montreal, QC

A private, Canadian-owned owner, developer, management company, lessor and real-estate company of four properties in Canada and four internationally. Rosdev Hospitality added the Courtyard by Marriott Montreal West Island/Baie D’Urfe to its portfolio last year.

38 42 Palm Holdings 11 ‡$45.0 ‡$36.0 Toronto, ON

A private, Canadian-owned company that owns or manages six properties in Canada and five internationally. During the past year, Palm Holdings purchased two properties including the Quality Inn Halifax and Calypso Cay Resort in Orlando, Fla. The company also opened the Marriott Towne Place Suites, London, Ont. and Holiday Inn Express Halifax – Bedford. In 2016 the team plans to add two properties in Canada and two internationally.

39 32 Concord Hospitality 8 *$43.3 *$65.0 Enterprises Company Raleigh, NC are

Concord Hospitality Enterprises Company is a private company that is the owner, developer and manager of eight units in Canada and 76 units internationally. During the past year Concord Hospitality Enterprises Company opened or assumed management of 14 properties. In 2016, the team anticipates opening eight new premium select-service properties. There currently 10 hotels under construction.

*Denotes estimate ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

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THE TOP 50 REPORT| RANK COMPANY UNITS â&#x20AC;&#x2122;16 â&#x20AC;&#x2122;15 2015

40 37 Sawridge Group of Companies Edmonton, AB

GROSS SALES 2015 (millions)

GROSS SALES 2014

BUSINESS OPERATIONS

(millions)

$37.4

$44.0

Sawridge Group of Companies is a private company that owns five properties in Canada. The company opened a Best Western Plus in Fort McMurray, Alta. in 2015.

$37.3

$40.9

A privately owned company with 28 properties in Canada. Realstar Hospitality Corp. is the master franchisor of Motel 6 and Studio 6 in Canada; its master agreement is with G6 Hospitality LLC. In 2015, Realstar Hospitality Corp. opened two franchised properties and plans to open between six and eight properties in Canada in 2016.

42 41 Stagewest Hospitality Calgary, AB

$30.7

$36.1

A privately owned company that owns and manages four properties in Canada. Stagewest Hospitality is a subsidiary of Mayfield Investments Inc.

43 43 Canadas Best Value Inn Coral Springs, FL

*$29.2

$28.6

A private company, Canadas Best Value Inn is a subsidiary of Vantage Hospitality Group, Inc. that franchises 33 units in Canada and 1,170 internationally. Vantage plans to add eight to 12 Canadas Best Value Inns across Canada and two to four Lexingtons hotels in 2016.

41 39

Motel6/Studio 6 (Realstar Hospitality Corp.) Toronto, ON

44 48 D.P. Murphy Hotels 9 $28.7 $20.8 Charlottetown, PE

A private company and division of D.P. Murphy Inc., D.P Murphy Hotels & Resorts owns nine properties in Canada. Last year, the company completed the conversion of the Future Inns Moncton to a Four Points by Sheraton.

45 45 One King West Hotel 1 $27.5 $24.5 ` & Residence

One King West Hotel & Residence is a privately owned hotel in downtown Toronto properties in Canada. Last year, the company completed the conversion of the Future Inns Moncton to a Four Points by Sheraton.

*Denotes estimate

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THE TOP 50 REPORT| RANK COMPANY UNITS ’16 ’15 2015

GROSS SALES 2015 (millions)

GROSS SALES 2014

BUSINESS OPERATIONS

(millions)

46 49 Bellstar Hotels & Resorts 8 $26.2 $20.7 Calgary, AB

Bellstar Hotels & Resorts is a private company that is the management company of eight units in Canada.

47 - Remai Hospitality Group Saskatoon, SK

Remai Hospitality Group owns hotel properties in Saskatoon and Sherwood Park, Alta. During 2015, the company rebranded its MainStay Suites – Sherwood Park to a Days Inn & Suites.

$25.6

—

48 - APX Hotels Group 8 $23.0 — Edmonton, AB 49 46

Brookstreet Hotel 1 $23.1 $22.5 Ottawa, ON

50 47 Monte Carlo Inns Mississauga, ON

$22.0

$21.1

The team at Hotelier magazine strives to present as accurate an overview as possible of Canada’s hotel industry. This spring, surveys were sent to operators across the country, asking hotel executives to indicate the number of units and gross sales of their companies as of Dec. 31, 2015 as well as expansion plans for the coming year. Keep in mind, Canadian-owned companies report sales for all its units in Canada and internationally (denoted on the list with the symbol*). Please note that Four Seasons Hotels and Resorts, and Fairmont Raffles Hotels International (FRHI) continue to be listed as Canadian companies because they are headquartered in

APX Hotels Groups is the owner, developer and management company of eight units in Alberta that include Hampton Inn by Hilton, Holiday inn, Ramada and Super 8 brands. The company plans to open three to five new hotels in the next five years. A private company, Brookstreet hotel is a subsidiary of Wesley Clover International Cooperation, which owns one property in Canada and four in the U.K. In addition to expanding the meeting facilities by 14,000 sq. ft. at Brookstreet Hotel in Otttawa. The company added equestrian facilities. It is set to open a new property in Whales in 2016. Monte Carlo Inns is a private company that owns, develops, manages and is the franchisor of eight hotels located in the Greater Toronto Area. Canada. However, given that there have been significant changes to FRHI’s ownership structure, we will only be reporting its Canadian unit sales on next year’s edition of “The Top 50 Report.” Keep in mind there is some duplication on the list given the complex structure of the hotel landscape. In cases where companies refused to divulge sales figures, Hotelier has provided estimates based on the company’s historical data, industry growth averages as well as average unit-volume sales. This ensures consistency on our report and provides as accurate a representation as possible of the major players in the industry.

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TRENDS

I’M WITH THE BRAND

SOFT BRANDS RESONATE WITH CHOOSY TRAVELLERS LOOKING FOR UNIQUE EXPERIENCES P H O T O G R A P H C O U R T E S Y O F PA L M E R H O T E L S B Y H I L T O N

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ast month, a group of ladies enjoyed afternoon tea inside the Palm Court at Chicago’s iconic Drake Hotel. Billowy white drapes flowed from the pillars and a spray of blooms from a massive floral arrangement lorded over the trio, as they sipped tea from china cups and selected tiny sandwiches off of a three-tiered tray. The hotel specializes in afternoon tea and hosts splendid wedding receptions. Such events are singular, tailored, exciting — the exact opposite of corporate. Yet, many people would be surprised to learn the Drake is actually owned by a chain (Hilton to be exact) and has been for the past 50 years or so — though you’d be hard-pressed to find a blue “H” logo anywhere, as a recent visit proved.

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JULY/AUGUST 2016 HOTELIER

PUR GENIUS Quebec’s Pur Hotel features innovative designs and unique F&B options

JULY/AUGUST 2016 HOTELIER

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HOTELS

brands within the Hilton Worldwide portfolio. “While there are a significant number of soft brands out there, such as Curio Collection (Hilton Worldwide), OE Collection (Loews Hotels & Resorts), Autograph Collection (Marriott International) and Ascend Hotel Collection (Choice Hotels International), there is an extremely limited number of actual softbranded assets in Canada,” says Brian Stanford, senior managing director, CBRE Limited. “As such, there really is no performance data which can be shared.” Data aside, Stanford says the concept is a sound one. “These soft brands allow the uniqueness of the individual hotel to prevail through its own name and branding, while letting the hotel owner/operator benefit from the marketing power of the major hotel companies.” The soft-brand model proved so attractive, says Curalli, that Hilton launched the Curio Collection in 2014. “Each Curio hotel is authentic and reflects the region it’s in,” he says. “Our thinking is ‘no design by design.’ Each hotel has its own look and feel and the owners love that freedom. That’s why we’ve got 22 [Curio] hotels (though none in Canada) in two years — clearly the formula is working.” Before the properties became Curios, the “hotels were doing well in their own markets,” adds Curalli. “They came to us because they have a great hotel that is recognized locally but they needed to be in the global system.” Getting heads in beds, after all, is much more challenging than it was 25 years ago when guests could rely on travel agents to verify a remote hotel’s quality. “In the absence of [travel] agencies, this mediation is attempted by websites such as TripAdvisor, but this, as anybody who has tried to book a hotel room in Rio can attest, very

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

WEDDING BELLS The elegant ballroom at Hilton’s Palmer House is a popular wedding venue

The Drake is a soft brand, meaning it operates under a powerful parent, leveraging the big player’s connections while retaining its independent spirit. Staff, for instance, can wear funky uniforms, the room design can be unique and the food playful — all of which is very attractive to the operator of a culturally rich hotel that doesn’t want to sell out by looking too commercial. “The Drake is a good example of what a soft brand can become over time. It’s classic Chicago. We love that hotel,” says Vito Curalli, executive director Canada, Latin America and International for Hilton. He notes the Palmer Hotel in Chicago is also “technically a Hilton that adheres to our standards but has always been known for its name.” The Drake’s (and the Palmer Hotel’s) owners harness Hilton’s marketing prowess and global reach. The partnership has a multitude of other advantages: good deals on supplies, access to financing, revenue management and reservations systems, as well as IT support. Travellers can rack up points through the Hhonors guest-reward program, which offers free stays at more than 10

I M A G E O F C H I C A G O ’ S PA L M C O U R T C O U R T E S Y O F H I L T O N

often just adds to the confusion,” writes Laurence Bernstein, a consultant at Toronto’s Protean Strategies, a company which helps businesses stimulate their brands. “Knowing the small, local hotel that looks so good online is endorsed by Marriott and is connected, however loosely, goes a long way to making the choice easier.” “What’s really driving this [trend] is entrepreneurial people entering the hotel space and creating really cool, unique brands,” says Allison Reid, SVP, North America Development, Starwood Hotels & Resorts. But, she says, there’s room for both soft and hard brands in the Canadian hotel landscape. “It just depends on what that real-estate owner wants to spend their time and money on. Sometimes it’s just easier to take it off the shelf because their main business is yield for their investors, not creating entrepreneurial-type products.” Travellers clearly trust Starwood Hotels & Resorts. When the stalwart launched its soft brand, Tribute Portfolio, in April 2015, it quickly opened 20 properties in one year. Hotel locations range from Japan to Jakarta and a Hotel Pur Quebec will debut in Canada in early 2017. “The hotel will undergo a full renovation of its 242 guestrooms and suites before joining the Tribute Portfolio system,” says Dave Marr, global brand leader for Tribute Portfolio/Starwood. “The hotel is filled with design touches and intriguing culinary options that truly exemplify the essence of the Tribute Portfolio.” Pur’s Quebec location was a big draw for Starwood: “Saint Roch has undergone a recent revitalization, seeing an energizing influx of new restaurants, locally owned boutiques and innovative businesses, all of which have inspired a true indie neighbourhood vibe,” says Marr. Whether it’s the food or the places being visited, being unique appears to be the hottest of trends. In tandem, the independent hotel segment has continued to grow exponentially, “With consumers increasingly desiring travel to hotels and resorts that don’t fall under a cookie-cutter brand,” says Marr. In 2010, Marriott Hotels and Resorts tapped into the allure of the soft brand when it launched the Autograph Collection. Its motto and hashtag explicitly conveys its one-ofa-kind attitude: #exactlylikenothingelse. That’s not hyperbole. Each site is special, such as the historic Brown hoteliermagazine.com

Palace Hotel in Denver, Col., which has rooftop honeybee hives that supply fresh honey to the six onsite restaurants (Autograph Collection hotels in Canada include the Algonquin Resort in St. Andrews-by-the-Sea, N.B., and the Hotel Saskatchewan; the luxury Civic Hotel in Surrey, B.C. and The Douglas in Vancouver are expected to debut in 2017). Marriott’s marketing for the Autograph Collection is genius, exemplifying the brand’s savviness — it’s angling after and understands the discerning traveller as curated snaps on its website might show a giant balloon dog sculpture by the contemporary artist Jeff Koons or ingredients for an artisanal salad suspended in mid-air. “There has been a clear acceleration from consumers to be unique when they do all kinds of things, especially travel,” says Julius Robinson,

WHAT’S IN A NAME? Chicago’s Palmer Hotel by Hilton harnesses the brand’s marketing power while maintaining its own identity

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Brand Leader for Autograph Collection, adding, “At the same time they want to know they have the comfort of the Marriott portfolio in terms of standards.” Owners of Autograph Collection hotels enjoy Marriott’s buying power and guest-reward program (which include the soft-brand perks outlined earlier). They also have carte blanche to run their hotels as they see fit. “We have just about 100 hotels in our

collection and I love to say we have 100 different branded hotels,” says Robinson. “Each brand has its own identity, story and history. But, he points out the Marriott team keeps an eye on things: “We visit each hotel twice a year to make sure the quality and level of service is consistent in the hotel.” “We’ve done six Autograph Collection conversions over the last two or three years and many of the

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other soft brands,” says Tony Cohen, partner and EVP, Crescent Hotels & Resorts. “You get the benefit of the distribution, the reservation system and the loyalty [program] without the stringent brand restrictions. It’s a great way to plug in to a network that you wouldn’t otherwise have access to as an independent. It’s a win-win.” According to Stanford, these conversions are the right way to go. “As new-build [prospects], there may be a few opportunities for niche hotels benefiting from the soft-branding affiliation,” says Stanford, “although conversion and re-branding of established unique properties may be a stronger opportunity for owners, operators and the hotel companies.” Manlio Marescotti, VP, Lodging and Development for Marriott Hotels and Resorts Canada, says Autograph Collection boasts a mix of both existing hotels and purpose built ones (which goes to show how popular soft brands have become). “Initially, they were going to be conversions of existing hotels that maybe were operating independently but wanted to maintain their brand and be part of a larger infrastructure with the sales engines behind it,” says Marescotti, offering the Algonquin Hotel Times Square, in Manhattan and the Hotel Saskatchewan in Regina as examples. In terms of demographics, Robinson says they’re varied. “These kinds of hotels give millennials energy when they travel on business — they’re staying in a cool hotel but their company is paying,” he says, adding guests “could be married with children but when they’re travelling to Autograph Collection Hotels, unless it’s a resort, they’re [solo],” he says. “So, we know they see these hotels as treats.” Soft-brand hotels, essentially, resonate with choosy travellers across the board who demand a non-commercial travel experience — from the millennial who Instagrams her heirloom tomato sandwich like it’s a rare jewel, to the middle-age businessman who enjoys great architecture and demands to stay at a cool and safe non-brand branded hotel. u

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SEGMENT REPORT

LESS IS MORE

The cost-effective select-service model continues to gain popularity with developers and guests alike BY LIZ CAMPBELL

he room isn’t large, but the furnishings are stylish and the bed comfortable with good quality linens. The petite bathroom features a high-end shower and plush towels. The hotel lobby is compact, but offers comfortable seating where guests can gather for a drink or coffee. ‘Less is more’ could be select-service hotels’ mantra. There will always be guests who want luxury without compromise — turn-down service with chocolate on

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the pillow; dry cleaning; minibar; spa with massage; an elegant dining room. But, the ongoing global economic recovery has taken its toll on expense accounts and wallets, fuelling the growth of a new breed of hotels that offer fewer extras while simultaneously maintaining a high level of service and comfort. “Several years ago, we noticed guests who weren’t seeking five-star luxury hotels or pricey boutiques had very limited options — and those that were available JULY/AUGUST 2016 HOTELIER

were bland, with no personality or ‘life’ to them,” says Paige Francis, vice-president, Starwood Global Brand Management for Specialty Select Brands, which includes Aloft, Element and Four Points. “So, we created designforward [properties] with future-forward guest experiences at an affordable rate.” Francis is describing the select-service hotel, where the price-point for guests is lower, but the quality and facilities remain well above the basic, economy hotel offering. While it is proving popular with guests, it is also cost-effective for the brands developing them. With fewer amenities such as foodservice, valet services, et cetera to maintain, operating margins tend to be higher. “In recent years, more select-service hotels have been developed than full-service hotels,” says Tony Cohen, EVP and partner with Crescent Hotels & Resorts Canada, whose management portfolio includes a wide range of properties. “The cost to build and operate these [hotels], certainly in secondary and tertiary markets, is more economical. From an operational standpoint, the room is always the most profitable part of the business, so the less service and fewer moving parts, the better the financial model.” Calgary-based Masterbuilt Hotels Ltd., a leader in the entrepreneurial development of select-service lodging, owns the master territorial development rights to the Microtel Inn & Suites by Wyndham brand in Canada. COO Eric Watson echoes Cohen’s view: “This is most profitable part

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of the hotel market and the least complicated to operate,” he says. “Labour costs are much lower — 15 to 20 people can run 80 to 90 rooms. We’re all about smart design. We have an almost maniacal focus on what the guest needs and what they are prepared to pay for. If the guest doesn’t value something, why put it in our building?” But what does today’s guest need? The list of select-service essentials includes a room with high-quality bedding, free WiFi, free parking, breakfast, coffee and a comfortable lobby space with grab-and-go snacks. Nonetheless, what has become known as “amenity creep” — the trickle down of refinement from more expensive properties — has slowly added other extras. High-speed Internet with strong bandwidth is a must so guests can stay and play without interruption. Most selectservice hotels offer a fitness centre and some, even a pool. Other guests require a business centre. There’s also the hot breakfast and foodservice options. As the list grows, the lines between select-and full-service begin to blur. Achieving this balance takes ingenuity. “The Marriott Courtyard in Calgary verges on full service,” says Watson, whose company manages the property. “There’s a restaurant, which we operate and a spa, which we lease to a tenant. With our Microtel brand, we’re quite strategic in putting them beside a full-service restaurant or even developing a restaurant.” The newest Alt hotel by Le Germain in Ottawa features a lobby bar/café, which offers both refreshing, as well as hoteliermagazine.com

JULY/AUGUST 2016 HOTELIER 2015-02-18 10:52 AM

LUXURY WITHOUT COMPROMISE (clockwise from left) Alt Ottawa, Courtyard by Marriott and Microtel by Wyndham abide by the ‘less-is-more’ rule without sacrificing style

alcoholic, beverages and hot meals throughout the day. “We partnered with Epicuria, a local caterer, to do something a little more elaborate than the usual grab-and-go snacks and the response has been great,” says Julie Brisebois, general manager of Alt Ottawa. “Guests returning in the evening may not feel they want to go out for a meal. They can eat in the lobby and grab a glass of wine or sample a local beer.” Catering to customers to this degree has traditionally been the purview of full-service hotels. But, designing an internal economy around those needs has proven successful for major chain hotels. “People have loyalty to brands — maybe they collect points,” explains Cohen. “Under the brand umbrella, the select-service hotel can cater to a specific market and a specific demographic.” Starwood’s three select-service brands each have their own distinct passion points. Element, for instance, is Starwood’s eco-innovation lab, says Francis, “We have completely re-

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imagined the extended-stay experience, focusing on healthy food offerings, distinct eco-design and bike share programs, so guests can stay fit.” Its Aloft brand offers a different, yet refreshing vibe, showcased by the Live at Aloft Hotels series. This global music series features emerging artists. Acts such as Ed Sheeran and Better Than Ezra took part before they became famous. At Four Points, a Best Brews and BBQ program offers guests the chance to sample local craft beers in their hotel pubs across the brand’s 200+ worldwide property portfolio. Along with their brews, guests are invited to indulge in seasonal, complimentary barbecue-style appetizers. With smaller room sizes, creating social centres — such as a pub or lobby — is strategic,” says Alt’s Brisebois. “People, especially those travelling alone, need social interaction. They really live in our lobby. I work there myself with my laptop so I can get to know our guests. Morning, noon and night, it’s buzzing.” According to Cohen, the proliferation of boutique hotels throughout the past 20 years forced brands to approach design and functionality in a meaningful way. “Can I still get a design-based, functional experience for a fraction of the cost?” he asks. “All the brands have put a lot of energy into creating a really great guest experience that’s cost effective. That’s why there’s been such a significant uptick in this market.”

In the rooms, Brisebois adds, the beds are the same superior quality as those in all Le Germain properties. Rooms are chic, comfortable and quiet. “What’s essential is comfort, but style is important, too,” she says. “Here, you don’t feel you’re in a generic place. Our guests are pleasantly surprised when they see what they’re getting for their money.” Meeting and exceeding customer expectation is key, says Watson. “Microtel wins awards because we offer comfort and unparalleled consistency. But these are not cookie cutter; each property has some local authenticity.” For the operator, the cost of land in major cities is a driving factor for the development of hotels with smaller footprints. Most major brands are represented by very successful select-service hotels in major cities such as Vancouver, Toronto and Montreal. However, traditionally, select-service hotels have been concentrated in smaller markets — inlcuding Saskatoon, Sask. and St. John’s, Nfld. Alt by Le Germain currently has properties under development in both cities. Microtel expanded rapidly to smaller Ontario towns such as Kirkland Lake and Timmins and recently added locations in Kitimat and Fort St. John, B.C. Watson says the company’s 13 locations will expand to 50 by 2021. While Four Points has more than 30 hotels in Canada, with more scheduled to open in the coming months, Aloft and Element only have a handful of hotels here. Both are in Vaughan, Ont., a rapidly growing community north of Toronto. While the properties are not side-byside, “demand is on the rise for dual-branded hotel developments featuring Starwood’s Aloft and Element brands in key metropolitan markets,” says Francis. According to Tony Pollard, president of the Hotel Association of Canada, two major changes have taken place in the hotel industry throughout the past 25 years. “The first is changes to technology,” he says. “The second is the widespread growth of multiple brands, which includes select-service hotels. These serve a very important role and meet a significant demand in Canada.” u

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LOOKING OPERATIONS BACK

CLEANING HOUSE WHY HOTELS ARE RE-EVALUATING LAUNDRY AND HOUSEKEEPING OPERATIONS BY ANDREW SPELLER

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he team at Hampton Inn & Suites Moncton understands the importance of laundry service. The property recently changed its laundry practices and procedures to become more efficient and cost-effective. “We opened in 2008 and began with laundry outsourcing,” says Cindy Bourque, general manager of Hampton Inn & Suites Moncton. “However, we noticed not all of the linens and bedding we sent to be cleaned would be returned to us. Whether that was due to damage done during cleaning or getting lost en route, we don’t know, but when we hit the $50,000 mark of lost product, we knew we had to find another way.” Bourque says the savings were noticeable immediately, with laundry costs for the 126-room property decreasing by approximately 50 per cent after bringing laundry operations in-house. However, since the hotel’s laundry loads increased, it also had to increase its appliance stockpile. “We only had one machine when we started and we used that to clean our towels,” Bourque says. “Once we started doing things inhouse, we purchased three 60-pound industrial washers and three 75-pound driers to handle the process.” According to Ryo Utahara, executive director, Business Performance at Toronto-based K-Bro Linen Systems Inc., outsourcing is the preferred industry option. “There are always hoteliermagazine.com

JULY/AUGUST 2016 HOTELIER

STOP THE PRESSES A new stainless-steel flat-profile design for ironing and folding laundry, which reduces linen contact with metal, is taking hotel laundry operations by storm. Last March, Peachtree City, Ga.-based Tingue premiered Mato Lacing as an exclusive service in North America. The process utilizes a flat-profile design with unibar fasteners, which drastically reduces linens’ contact with metal and replaces the wires, which create rises and bumps on conveyer belts, with flat wires. This results in a smoother process and eliminates rust and lacing marks on linens.

exceptions, however, the best prac- room linens, food-and-beverage and tice is hotels outsourcing their laun- uniforms, K-Bro processes hundreds dry services,” he says. “Given the of thousands of pieces of linen every state-of-the-art equipment and the day,” Utahara says. high degree of automation K-Bro Best Western Hotels Canada utilizes, our customers achieve cost also outsources its laundry needs. savings and a higher quality finished “Outsourcing services works, in genproduct by outsourcing to reputable eral, due to lack of storage, equipment and human resources at the hotels,” laundry providers.” With nine processing facilities says Morgan Stemler, public relations and more than 1,600 employees, account executive for Best Western. K-Bro services more than 200 hotels, “The biggest drawbacks are the qualincluding Marriott, Shangri-La, ity of the linens that return to us, Trump Hotels, Four Seasons, Westin, as well as not having them done on Delta and Sheraton brands. “Between a daily basis. If laundry were done COI 005 Dont sheets, Get Taken Ad_Halfpg_resize_Layout 1 11/18/14 4:08 PMthe Page 1 in-house, hotels could control pillow cases, towels and other

quality — stain removal, re-washing and the amount of chemicals being used in the wash. This would result in the linens lasting longer and not having to coordinate linen pick-up and delivery.” CLEAN AND GREEN

“Many of our suppliers are introducing new products which allow us to be eco-friendlier,” says Stemler. “Individual Best Western hotels do everything from having in-room recycle bins and linen re-use programs to geothermal and solar-powered hotels that actually sell power back to the grid. Several hotels are switching over to cold water Tide to reduce energy costs and further green initiatives allow guests to opt-out of housekeeping and earn extra loyalty points or discount coupons at the hotel.” Trends in hotel amenities are having a direct impact on laundry services, says Utahara. One noticeable difference, he says, is hotel beds are getting bigger. “We now have extra-

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wide ironers, which allows us to clean larger sheets and bedding. If you go to some of the higher-end hotels, you’ll notice some of the beds are even larger than king-size beds. By having an extra wide ironer with three rolls on it to press the sheets, it allows us to process high-end, extra-large sheets fairly efficiently.” According to Mark Halberstadt, president of the GTA-based Faster Linen Service Ltd., the biggest chal-

lenge to laundry service providers is water. “There are a lot of rules now for the hotel industry [and their laundry practices with regard to] water,” Halberstadt says. “I’m in the process right now of putting in a $1-million water treatment system at my facility, which takes out oil, grease and chloroform. The city of Toronto is cracking down on every big water user and testing [them] for water going down the drain. This industry is no longer

DIRTY SECRETS Although Bourque says room cleaning is a fulltime operation year round, during the peak summer travel season she hires an extra 10 employees for a total housekeeping staff of 30. “On average, it takes about 15 to 45 minutes to clean a room,” she says. “We do daily washes of our linens and beddings and even if the rooms are not being used by guests, they are still inspected for cleanliness on a daily basis.” She says she’s still surprised by the mess guests can make, even during short stays. “Sometimes, we’ll go in to clean a room that’s been occupied for a day or two and it will look like someone has been living there for months,” she says. “But, most of our guests are very generous tippers to our cleaning staff, especially those who stay with us for longer periods of time. Even if guests leave a dollar, it’s always appreciated, because cleaning a hotel room is very hard work.” It’s not just money her team appreciates. “Sometimes, people will leave notes that just make my and the staff’s day,” she says. “Every so often I’ll have a staff member stop by my office and show me a nice note a guest left for them and they are just beaming. Knowing their hard work is appreciated actually means a lot.” According to Bourque, a dedicated team with the right tools for the job can make a world of difference. “We just bought a new floor cleaner for our lobby,” she says. “It will save a lot of time and effort for our cleaning staff as opposed to having to do it the old-fashioned way with mops and buckets.”

‘go buy a big machine and you’re in business’”. Halberstadt says Ontario is cracking down on businesses not abiding by the new water regulations — inspectors make surprise water inspection visits to his 40,300 sq.-ft. Etobicoke facility regularly. “The city has sent inspectors every four to six weeks and they do tests on the water,” he says. “They take samples and notify you if you are above the city limits of Biological Oxygen Demand, PH balance, fats, oils, greases. It’s getting very technical now.” Utahara says being environmentally friendly is both an industry and company standard these days and K-Bro has adapted with the times. “Our hotel customers place significant importance on minimizing their environmental footprint, which is in line with K-Bro’s philosophy on environmental stewardship,” he says. “We have large modern 42

JULY/AUGUST 2016 HOTELIER

hoteliermagazine.com

PHOTOGRAPHY FROM DREAMSTIME.COM

plants which typically consume less than half the heat, water and energy of an in-house or small commercial laundry. Our commitment to reducing our environmental impact has netted K-Bro the coveted ‘Clean Green Certification,’ which recognizes companies in the laundry industry that demonstrate responsible leadership in sustainability and conservation to protect the environment.” K-Bro has also developed its own enviro-initiative — the Pooled Linen Program. “With five Fairmont hotels in Vancouver and Whistler combined, a unique opportunity to ‘pool’ the participating hotels’ linen was realized in 2014,” he says. “The participating hotels’ linen is treated as linen from one large customer and linen from the pooled inventory is delivered to each hotel based on weekly orders and forecasted occupancies. As a part of the program, K-Bro manages the inventory and ensures there are up to five PAR of linen in circulation.” Utahara says program benefits

include the elimination of linen shortages, which results in more productive and happier housekeeping staff, as well as lower linen acquisition costs. This is accomplished by directly purchasing linens through the textile manufacturer and eliminating warehousing costs. “K-Bro has been able to secure

better pricing on linen, which has been passed on to the participating hotels,” he says. Bourque also stresses cleaning in an environmentally conscious manner is good for business and good for the planet. “We do cold washes so we don’t rely on and use hot water to clean our fabrics. We use Diversey from Sealed Air Corporation.” As for chemicals, Halberstadt says green is the only way to go. “We use soft water [which is better for the environment] and all my chemicals are green,” he says. “We’re as green as we can be. Our chemical providers have to abide by the laws, too. We use bleach in our washes because it sterilizes the product. Then they get pressed so that they’re nice and white and crisp.” Halberstadt says while there are changes in the sector, the bottom line remains the same. “In this business, you gotta have grit and you gotta have desire because at the end of the day, the laundry’s got to be done.” u

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FITTING CHOICES Today’s hotel uniforms are making their own fashion statement BY DENISE DEVEAU

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otel uniforms have come a long way. Gone are the days of the stiff, formal front-desk suits and all-polyester housekeeping garments. Today, it’s about stylish comfort-wear, breathable fabrics and, in some cases, even high fashion. The female service staff at ShangriLa Hotel Toronto’s Lobby Lounge sport stunning Ming-era inspired dresses from high-end fashion designer Sunny Fong, creative director for Vawk. The collaboration captured global attention when MailOnline Travel named Shangri-La Toronto among the world leaders for best-dressed hotel staff. Not only are the uniforms a fashion showpiece, they are an important visual representation of the hotel’s brand, says Jens Moesker, area general manager, Shangri-La Toronto. “When people walk through the main floor, those uniforms help tell our story.” The Lobby Lounge is just one of many areas of the hotel where the right uniform can deliver a strong brand message. Moesker says after the property design, uniform selection is one of the more complex jobs. “Not only does a uniform speak to the brand, it also has to speak to the local architecture and culture of each property, as well as the seasons.” He notes the property has “Quite a battery of uniforms. Naturally, we also have special uniforms for people working in more hazardous areas such as engineering or the kitchen.” Whatever the choice, a uniform has to be a blend of form, design and functionality, as “It’s better to have staff act naturally and be comfortable,” he says. Moesker estimates each set of uniforms runs about $300 per employee (based on two uniforms per staff member). Typically, uniform designs are reviewed on a three- to four-year cycle. At that point, he works closely with employees, department by department, to reach a consensus. “A uniform redesign is a great opportunity to get employees involved in the process,” Moesker says. JULY/AUGUST 2016 HOTELIER

While some stylistic choices are unique to the Shangri-La Hotel Toronto’s property, many of the backof-house uniforms are standardized throughout the chain with some slight variations. This allows operations to take advantage of economies of scale. “We try our best to maximize on purchasing power in terms of volume,” Moesker says. STANDARDS WITH A TWIST

Even where brand standards have to be maintained, there’s always room for creative thinking. Christophe Le Chatton, general manager at the Omni King Edward, says the company has specific standards to follow when selecting uniforms. The standards set out by Omni fall under four distinct hotel categories: city centre, traditional, resort and golf. “We fit into the traditional category because the King Edward has a historical element,” says Le Chatton. He works with Cintas and its Swisssol_HH_Layout 1 2/25/2014 11:17 AM for Page 1 designers to select uniforms vari-

PRÊT-À-PORTER Hotels such as Shangri-La Hotel Toronto and Le Germain emphasize chic staff uniforms as important representations of their brands and culture

ous functional areas: food and beverage, doorman, front desk, banquet servers, housekeeping and engineering. The hotel purchases all its uniforms with the exception of the kitchen uniforms, which are rented. While uniform styles are similar for historical properties, there is variance in colour schemes, depending on each hotel’s decor. “ Fabric choice and comfort are

important, especially for employees with labour-intensive roles, Le Chatton says. “Housekeeping and doormen need fabrics that breathe easier and follow their body movements without going baggy. The good news is that today’s fabrics are much more elastic and less rigid.” But, that doesn’t mean sacrificing style, he says. In addition to selecting classic modern motifs, hotels in

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Just like the fashion industry, hotel uniforms need to constantly evolve in order to keep up with the times. According to Wilmington, Mass.based UniFirst Corporation, some of the newest trends in hotel fashion include:

FABRIC OPTIONS There’s a growing demand for innovative “comfort” fabrics, such as spun-polyester and other fabrics which are lighter, more breathable and wrinkleresistant.

BRAND ELEMENTS Whether working the front or back of the house, operators maintain consistent branding elements with regard to workwear accessories (ties, scarves, etc.), colour accents and/or company logos.

FUNCTIONAL FASHION Anti-microbial and moisturewicking garments are essential when selecting apparel for kitchen and housekeeping staff.

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There is a growing interest in organic or “green” workwear, but the implementation of managed uniform programs remains slow. At the same time, organic cottons are not suitable for uniforms which experience a lot of wear and tear and which require industrial laundering (e.g. kitchen staff).

MANAGED SERVICE While many hotels run their own uniform programs in-house, operators can opt for a managed rental program where the contracted supplier provides, maintains, repairs and stores uniform inventories.

the Omni family individualize their uniforms based on the city they represent. For example, a doorman in Nashville may sport a cowboy hat, while a counterpart in Toronto may be seen wearing a Canada Goose jacket on the coldest winter days. “Every hotel has a bit of personalization,” Le Chatton says. Depending on the function, staff members are assigned two or three uniforms. The hotel provides dry cleaning, but laundering is handled by the individual. Le Chatton estimates each uniform lasts six months to a year. Like most establishments, footwear is chosen by employees based on hotel standards and recommendations, he adds. “People love to differentiate themselves with shoes. You can’t blame them.” Each employee is provided a $70 allotment every year for footwear, with additional support for special needs. As far as the overall image, Le Chatton says it’s important that uniforms reflect the guest experience. “There’s a certain formality given we serve a lot of business people, but we don’t want to be ostentatious or stiff either. It’s important to not just reflect the Monday-to-Friday business guest, but the weekend leisure ones as well.” FASHION-FORWARD THINKING

At Groupe Germain, uniform choices come in many colours and sizes. For Le Germain Hotels, the company works with Montreal designer Marie Saint-Pierre for female staff uniforms and Toronto designer Bustle for male staff. It also works with Image Folie for room-attendant uniforms. Going the designer route is not without its challenges, says Paul de La Durantaye, GM for Hotel Le Germain, hoteliermagazine.com

Maple Leaf Square. “Working with individual designers on custom-made uniforms tends to make the selection process longer than with off-theshelf. We have to make sure what we choose fits with our identity and each location, because every Le Germain has its own flair.” Le Germain Hotels ensures its employees’ uniforms are standardized across the country. Currently, the colour palette of choice is grey and black with some elements of the brand’s signature emerald green. Each site can still add its own touch by accessorizing with bowties or other colour accents. La Durantaye says the hotel goes through the added work to bring custom fashions to the hotels because “It’s essential that staff feel good about what they’re wearing. When employees feel good in their own skin, they project a positive image. If they’re uncomfortable it will show in their demeanour around people.” Alt Hotels has gone a slightly different route, says Julie Brisebois, general

manager of Alt Hotel in Ottawa, who has been charged with uniform choices for the banner since it opened nine years ago. “We decided from day one we would work with jeans,” she says. “But, we don’t want to look too laid back. We also wanted to maintain a professional look.” The jeans of choice are sourced from Second Clothing Yoga Jeans. For the brand’s female staff, the jeans are paired with tunic-style tops from Quebec-based designer Myco Anna. Men’s shirts are sourced from No Limits Design. Housekeeping represents the largest team in each hotel, so attention must be paid to durability and comfort. “You

HEMMED TRENDS Shangri-La Hotel Toronto staff sporting their lobby lounge wardrobe by Vawk designer Sunny Fong

have to keep in mind they will wash the clothing every day,” says Brisebois. “More importantly, a design also has to fit all sizes which is the biggest challenge. That’s where we pay the most attention with the designers to make sure what we choose looks good on all shapes and sizes.” However, Brisebois admits it’s not easy getting consensus. “I’ve learned over the years that it will never be unanimous.” u

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Winning Ways Caroline Viens oversees a small but mighty team at Quebec’s Quality Hotel BY ROSANNA CAIRA

JULY/AUGUST 2016 HOTELIER

most proud of the team of 20 she manages. She’s quick to admit, however, having a small team does present challenges. “Our biggest [challenge] is dealing with last-minute guests and walk-ins. It’s important to staff for the number of guests we have on a given day.” But that’s difficult to do, she says, when there are unexpected visitors. Though she works hard to ensure the team operates efficiently, she trusts them to do their jobs. “I have a strong team that can handle any kind of situation. It’s important to trust them and build a strong team environment.” In an effort to continually evolve its offerings, the hotel recently renovated its breakfast area to make it more accessible and practical, adding more menu items to its free hot breakfast, as well as 24-hour free speciality coffee and juice. “We want to accommodate families, so we’ve installed a play area and an outdoor playground beside the existing indoor pool. I’m very excited about our new electric-car charging station, which builds upon our hotel’s green initiatives.” At the end of the day, she is quick to add, success is driven by happy guests. “Our staff is always one step ahead — always ready for whatever a guest may require. That kind of experience is not something you can easily copy.” u hoteliermagazine.com

P H O T O G R A P H Y B Y F R É D É R I C L AV O I E

or a time, Caroline Viens imagined she would one day work on a floating hotel — a cruise ship. But, as luck would have it, she ended up on terra firma, landlocked in the hotel industry, where she found her true calling. The 36-year-old Baie Comeau, Que. native graduated from the province’s College Merici, earning a Hotel Manager diploma in 2000 before venturing to Nice, France, where she performed a variety of roles at the Hotel Masséna — including front desk, housekeeping and breakfast manager. “I learned a lot during my QUICK QUIPS: training in France. I dealt with Service philosophy: From workmany European guests who ing as a maid and a front-desk didn’t speak English or French,” agent in the past, I understand she says. She also spent time the staff reality — we work travelling throughout France together to reach the same goal. Hobbies: I love to read, spend getting to know the area — time with friends and family, a trait that served her well swim, garden and take off on working the front desk. day-trips during the weekends. Since 2015, the mother of two has been managing the 96-room Quality Inn & Suites Lévis near Quebec City and Hotel & Suites Le Dauphin Quebec. Since taking the helm of the Quality Inn & Suites Lévis, the hotel has won a slew of awards, including Choice Hotels Canada 2016 Platinum Hospitality Award, which honours the top-rated hotels in the Choice Hotels system. “We were also awarded the 2016 Canadian Hotel of the Year at the 62nd Annual Choice Hotels International Convention in Las Vegas, Nev. The hotel has also received TripAdvisor’s Certificate of Excellence five consecutive times and is a member of its Certificate of Excellence Hall of Fame,” she adds. Certainly the accolades are gratifying, but she’s

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