Hotelier September 2023 Digital Issue

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GLOBAL GROWTH

Strong demand is driving growth

IN-ROOM REALITY

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CONTENTS VO LU ME 36 , NO. 6 | SE PTE MBE R 2023

FEATURES

RECOVERY MODE

10 SETTING THE TONE Mobile check-in increases guest satisfaction

Canadian hotel occupancy predicted to reach 66 per cent for 2023

12 KEEPING IT REAL

The Keep Refillery develops an innovative solution to a global crisis

16

14 VIEW FROM THE TOP

Shannon McCallum’s hospitality career offers an exemplary path to aspiring leaders

26 GLOBAL GROWTH

Strong global demand and operating results drive growth

31 NOMADIC LIVING Hotels adapt to the rise of digital nomads

33 STANDING OUT Hoteliers take advantage of new sales-and-marketing strategies

40 UTILITY MODE AI is changing the way marketing operates for hotels

43 CHECK IT OUT

FREEPIK.COM/@NIA [COVER PHOTO]

Momentum for mobile check-in continues to build in the hotel sector

36 Feelin’ our content? hoteliermagazine.com

46 BREAKING THE CONSTRAINTS Adaptability and efficiency are keys to success for today’s in-room dining operations

HOTELIER Bai Bunpanya, King Blue Hotel, Toronto

DEPARTMENTS 2

EDITOR’S PAGE

5

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EDITORIAL

THE NEW COST OF TRAVEL

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CONNECT WITH US HotelierMagazine @RCaira_Kostuch @rosannacaira

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t’s been a challenging period for hoteliers as they’ve dealt with the lingering effects of COVID. Making it more daunting is the rising costs of goods. Now, according to the 2024 Global Business Travel Forecast, published last month by the Global Business Travel Association, global business travel and event costs are set to increase through the remainder of this year and into next, although increases are expected to be more moderate than in 2022.

According to the GBTA, rising fuel prices, labour shortages, and supply chain challenges, coupled with red-hot demand, caused travel prices to skyrocket in 2022 ― far surpassing some of the increases outlined last year.

“A potent combination of demand and supply-side pressures propelled travel prices higher than expected last year," said Patrick Anderson, CEO of CWT, the business travel and meetings specialist group. “Looking forward, prices seem to be levelling off with much milder increases projected over the next 12 to 18 months. We could now be looking at the true new cost of travel.”

The report shows that the global average ticket price (ATP) of flights booked for business travel rose dramatically in 2022, experiencing record increases. The ATP rose by 72.2 per cent YoY to $749 in 2022, far surpassing 2019 levels ($670). While demand has recovered strongly with passenger numbers quickly approaching pre-pandemic levels, driven primarily by pent-up leisure travel demand, airline capacity continues to be impacted by labour shortages and supply chain issues. Looking forward, ATP growth is likely to be more modest at 2.3 per cent in 2023 and 1.8 per cent in 2024, albeit from an already high base. Still, many corporate buyers now have less leverage to negotiate with airlines, as their travel volumes remain below pre-pandemic levels.

Like air travel ATPs, the global average daily rate (ADR) for hotel bookings exceeded earlier predictions, rising 29.8 per cent YoY to $161 in 2022. Occupancy rates have been high, but so have labour, energy, and food and beverage costs. In fact, several cities across the globe including London, Miami, and Singapore, reported their highest ADRs on record in 2022. Meanwhile, hotel construction remains down from its pre-pandemic peak, creating supply constraints. With fewer properties to compete against, existing hotels can sustain their pricing power for longer, even though ADR gains are slowing. ADRs are projected to climb a further 4.3 per cent in 2023 to $168, followed by a 3.6 per cent increase to $174 in 2024.

North America experienced the highest growth in hotel ADRs of any region in 2022, rising 33.8 per cent YoY to $174. Occupancy in the region is expected to grow at a slower pace in the second half of 2023 and 2024 due to economic concerns, with ADRs forecast to rise four per cent to $181 in 2023 and 3.3 per cent to $187 in 2024.

Finally, the report shows that lead times for events remain short in this post-pandemic world.

However, organizers should now look at 2024 with a 12-month planning cycle if they want to keep prices at a reasonable level. At the same time, consolidating transient travel and M&E spend can give buyers more leverage when it comes to negotiating pricing. ◆ ROSANNA CAIRA rcaira@kostuchmedia.com

2 | SEPTEMBER 2023

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SEPTEMBER 2023 | 3

CHECKING IN THE LATEST INDUSTRY NEWS FOR HOTEL EXECUTIVES FROM CANADA AND AROUND THE WORLD

THE SHIFTING WORKFORCE HITEC highlights technology solutions to labour challenges

BY ROSANNA CAIRA

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he 2023 Hospitality Industry Technology Exposition & Conference (HITEC) in Toronto offered more than 50 education sessions on hot topics and trends.

Of particular interest to hoteliers was a session titled The Workforce Focus Has Shifted, during which the topic of recruitment and retention was discussed in a panel moderated by industry consultant Larry Mogelonsky. The panel featured Neal Patel, past chair of Asian American Hotel Owners Association (AAHOA); Anna Chartres, regional director, Talent & Culture, Central Canada, Fairmont; and Joshua Morgan, director of Technology at the U.S.-based Horizon Properties.

Asked whether technology can solve labour shortages, Morgan said, “Technology shouldn’t be viewed as a means to replace employees. Robots are just a tool, they’re not there to take over our front-desk employees.”

In assessing the growth of technology in the hotel space, Patel reminded the audience, “We’re hotel owners, we’re not tech experts.” As such, Patel believes hoteliers are afraid to fail so they don’t want to be the first ones to adapt. But when the pandemic happened and his hotel company was forced to shut down its night shifts, it was forced to test check-in kiosks. “It was connected to an IT member based in India and walked guests through the check-in process,” he said. “It’s not a perfect solution, but there was a void and we found a way to fill the void.” While guest reaction was mixed at first, Patel said

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through time, guests have come to appreciate the kiosks.

As part of the discussion, Mogelonsky explored the concept of happiness and asked what can be done to make employees happy.

According to Chartres, “We prefer to ask whether an employee is engaged,” adding that the company regularly measures engagement. Among the perks offered by Fairmont to its employees is the option to purchase grocery products four times a year at cost as a means to save on costs and fight inflationary spirals. The panellists also said work-life balance is key. However, Chartres warned that you can’t script the answers to what work-life balance means for everyone. She, and the rest of the panel, believe that flexibility is key to keeping employees engaged. “There’s no-one size fits all approach to flexibility,” said Chartres.

Morgan agreed. “It’s clearly highly individualized. When I was younger, I worked 16 hours a day, but then I got married and had kids and it slowly began to change.” Today, he appreciates having free time to take part in his children’s lives.

Chartres also spoke of the need for women to reach parity at the executive level and stressed it’s important for women to have their voices heard. While she’s never been passed over for a promotion, Chartres admitted her voice was ignored on many occasions in the past. She believes it’s important for women to speak their minds and let their supervisors know of their need to be seen and heard.

As mental health continues to become more important, Morgan stressed the need for employers to be empathetic.

“Be there to support your team through Employee Assistance Program (EAP), and remember that a happier employee is a more productive employee. Everyone is struggling with mental health. You can’t bottle things up.” Chartres added it’s important to be aware of the various resources available.◆ SEPTEMBER 2023 | 5

A NEW CHAPTER

BREAKING GROUND Wyndham Hotels & Resorts has signed 60 new ECHO Suites hotels, including the brand’s first hotels in Canada.

Continuing Wyndham’s long-term strategy of signing multi-unit deals with established and experienced developers — one of the latest being MasterBUILT Hotels, which to date has developed more than two dozen Microtel

by Wyndham hotels across Canada — the additions grow the brand’s global pipeline to 265 hotels and approximately 33,000 rooms.

With the addition of MasterBUILT Hotels, ECHO Suites Extended Stay by Wyndham now has a pipeline of 265 hotels across the U.S. and Canada, making it one of the largest of any extended-stay hotel brand. Multiple projects have already broken ground and are in various stages of construction across Virginia, Texas and South Carolina, with more than a dozen slated to break ground in the months ahead. The company expects to have 100 hotels open over five years, with the brand’s first locations beginning to make a meaningful contribution to Wyndham’s overall portfolio in 2024.

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BWH Hotels has appointed Joelle Park to the role of senior vice-president and Chief Marketing Officer. As a key member of the executive team, Park will lead the company’s global marketing, brand strategy and communications, including oversight of the company’s loyalty programs.

“BWH Hotels is at an exciting chapter in its celebrated history and brand evolution, with a strong portfolio of diverse brands. I’m thrilled to be a part of the journey ahead,” says Park. “I’m passionate about brand building, from uncovering the essence of a brand’s purpose to crafting insight-driven marketing that drives performance.

Each brand in the portfolio is special, making this an exceptional opportunity to curate those unique brand attributes into a compelling story to share with the world.”

NOW OPEN: THE HOTEL AT GREAT CANADIAN CASINO RESORT TORONTO The Hotel at Great Canadian Casino Resort Toronto, the newest addition to its $1 billion campus, has opened.

Blending modernity, comfort and excitement under one roof and just minutes from Toronto Pearson International Airport, The Hotel at Great Canadian Casino Resort Toronto offers 400 well-appointed guestrooms, with nearly half boasting views of the Woodbine Racetrack. These spacious accommodations range from 400 sq. ft. to 840 sq. ft. and include several accessible rooms and suites, catering to the diverse needs and preferences of guests. Premium rooms and suites include premium king, premium two queen, premium accessible king or two queen, king-corner suite, two-bedroom suite and accessible-king suite.

Each guestroom is equipped with modern amenities, including a 55-inch Smart TV, in-room safe, complimentary Wi-Fi, mini fridge and a coffee maker. Prestige suites offer an array of additional features, including a separate living room, a fully equipped bar unit with a fridge and microwave and a spacious bathroom.

As part of the resort experience, The Hotel at Great Canadian Casino Resort Toronto also unveiled its wellness area. This space includes a fitness centre with cutting-edge equipment and a wet area featuring a heated indoor pool, a hot tub and a steam room. hoteliermagazine.com

GROWING TEAM Jennifer Gellatly has joined Beechwood Real Estate Advisors, Brokerage Inc. as vice-president. Gellatly brings more than a decade of hospitality real estate and franchising experience, having previously worked at Northland Properties, Shoeless Joe’s, RECIPE, Boston Pizza and the LCBO’s head office. Her focus at Beechwood will be on hotel and land-development sales.

PURCHASING POWER Four Seasons Hotels and Resorts has partnered with Shahid Khan through Iguana Investments Florida LLC to build a new hotel and private residences in Jacksonville, Fla. The property will be the second Four Seasons for Khan. In 2016, he purchased full ownership of Four Seasons Hotel Toronto.

Anticipated to open in 2026, Four Seasons Hotel and Private Residences Jacksonville will play an integral role in the development of the Jacksonville Shipyards. The property will offer 170 luxuriously appointed rooms and suites, 26 private residences and four diningand-lounge outlets, including a signature rooftop restaurant and bar, all-day restaurant, pool bar and grill and lobby bar.

Additionally, the hotel will feature a world-class spa, multiple outdoor pools with cabana service, a well-appointed gym and an expansive meeting-and-event space.

In addition to Four Seasons Hotel and Private Residences Jacksonville, phase one of the Jacksonville Shipyards will comprise a six-storey office building, a revamped full-service marina, a reinvigorated Metropolitan Park, a marina services building and a public park.

Phase two of the Jacksonville Shipyards will include a fiveacre property slated for mixed-use development. Initial plans include a medical component. Other potential uses include retail, residential, additional parking and green space. Khan has been singularly focused in recent years on making this vision a reality to create hundreds of new jobs, generate vital tourism revenue, attract residents and spark additional opportunities for emerging local businesses. hoteliermagazine.com

CHAIR OF THE FUTURE Destination Toronto has appointed Rekha Khote, CEO of MK2 Hospitality, as Chair of its Board of Directors.

With a distinguished tourism career that includes executive leadership at Starwood Hotels and Delta Hotels & Resorts, Khote has board and committee experience at the Metro Toronto Convention Centre, Greater Toronto Hotel Association, George Brown College and Destination Toronto, serving as Chair of its marketing committee. As the co-founder of business consultancy MK2 Hospitality, Khote gives back to the tourism-and-hospitality community by mentoring seniorlevel women in the industry to achieve their career goals.

“I’m honoured to accept the role of Chair and to serve the Toronto tourismand-hospitality community as the industry continues its recovery,” says Khote. “Toronto is an incredibly diverse city with an inclusive culture that is tangible to our visitors. It’s what makes this city so special.”

SEPTEMBER 2023 | 7

SPONSORED CONTENT

Providing Supportive Workspaces For the New Business Traveler The global health emergency posed by the coronavirus has ended, and hoteliers have finally reached the proverbial light at the end of the tunnel.

Those who found success during the preceding years did so by adapting to near-constant change and expanding their offerings to meet guests’ everevolving expectations. As we look to the future, one requirement has clearly cemented its place within the hospitality industry: remote working.

While hotels have always accommodated traditional business travelers, their ranks are currently swelling as employees in various sectors strive to maintain the remote working arrangements they attained during the pandemic, and also begin to seek out ‘Work From Anywhere’ programs that will allow them to visit other countries for extended periods of time without putting their careers on hold. In an effort to attract and retain top talent, many organizations – such as Spotify, Siemens and Airbnb – are catering to these desires, which are further supported by governments around the world (presently, 52 and counting) offering visas that permit visitors to work remotely for foreignbased employers for an extended period of time.

As a result, hoteliers can expect to see more guests in the “digital nomad” and “bleisure” categories.

Whereas these were formerly dominated by millennials and Gen-Zers whose life stage afforded more flexibility to take on freelance work and shortterm contracts, the 40 to 59 age group now accounts for 35% of the global digital nomad community. In any case, certain core requirements have emerged as guests of all ages have become more concerned with their health and wellbeing and more aware of the downsides of business travel, such as stress, loneliness, weight gain, and sleeping problems.

They’re not only looking for amenities that support productivity while ‘on the road,’ but also those that help maintain healthy habits.

Well-designed lobbies and co-working spaces provide valuable socializing and networking opportunities for business travelers, but the guest room remains an

important refuge: a hybrid space for truly heads-down focus, as well as relaxation and rest. Providing the four Bs (a great bed, bathroom, breakfast, and bandwidth), in addition to a desk, chair and accessible power is par for the course. What’s often overlooked – or more challenging to address – is the room’s acoustics, which can disrupt concentration as well as the ability to get a good night’s sleep. Indeed, noise remains a top guest complaint across all property types.

Many hoteliers have tried to address noise problems by making structural changes to windows, walls and doors. These methods are costly and often ineffective because they don’t address the low ambient sound level inside most guest rooms – ‘library-like’ conditions that leave occupants exposed to even the most minor acoustical disturbances. That’s why innovative properties under various brands are turning to MODIOTM Guestroom Acoustic Control: a sound masking technology specifically developed for hotel use by a company with over 45 years’ experience implementing this acoustical solution in offices, hospitals, military and government facilities.

Because MODIO can be mounted beneath or behind furnishings, to a wall or the back of any flat-screen TV, this technology can be quickly retrofitted to any property without sacrificing space, style or room nights. Guests can then use the control pad to adjust their room’s ambient sound level as needed or desired, in much the same way they control its temperature and lighting. No app or network connection is required.

While most guests compare the MODIO masking sound to softly blowing air, it follows a particular spectrum designed for noise control and occupant comfort, completely covering or greatly minimizing disruptions, even in rooms exposed to external noises, such as highway, airport or train traffic. Data collected in a wide variety of properties shows it can reduce noise complaints by up to 85% and dramatically improve guest scores for quality of sleep.

By supporting focus, relaxation and sleep, MODIO Guestroom Acoustic Control is an amenity that both business and leisure travelers alike will truly value. And by significantly reducing noise complaints, it’s certain to become your favorite as well.

“I travel weekly for work and stay routinely in a hotel that uses your product. I love it! I get the absolute best sleep.”

RISE... AND SHINE?

Make sure your guests wake refreshed and ready to face the day – with MODIO, the only sound masking device specifically designed to let them control their room’s acoustics, just as they do temperature and lighting. The result? Fewer sleepless nights for them. Fewer noise complaints for your hotel.

And a lot of praise for MODIO. It’s a win-win-win situation.

CONTACT US FOR A DEMO | WWW.MODIO.AUDIO © 2023 K.R. MOELLER ASSOCIATES LTD. PATENT INFORMATION AT MODIO.AUDIO/PATENTS. MODIO AND LOGISON ARE TRADEMARKS OF 777388 ONTARIO LIMITED

MOBILE CHECK-IN

BEYOND CHECKING IN Mobile check-in technology enhancements can increase guest satisfaction

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10 | SEPTEMBER 2023

when front-desk agents are most needed so you can staff efficiently. Moreover, bringing in the data from the mobile app will give you better intelligence on the average check-in time, letting you adjust housekeeping schedules. As this is but one function that these platforms perform to help finesse operating costs, they are worth investigating regardless of whether you’re going mobile or not.

Next, for economy, select-service and midscale properties, the advent of check-in kiosks offers a healthy middle ground between front-desk clerk and fully mobile. While a number of vendors now incorporate proper biometric verification so that falsified identities are not a concern and so that guests can more frictionlessly obtain their keycards, what we stress again is guest context.

Many travellers will be fully zoned out by the time they arrive in the lobby — not exactly a mood conducive to upselling.

In other words, like the website, the newsletters, the social-media

posts and the dedicated pre-arrival upselling platform, kiosks facilitate ‘window shopping.’ Some customers want to evaluate their potential purchases from afar, without the perceived discomfort of monopolizing the staffer’s time or any semblance of ‘decision fatigue’ from having to choose on the spot. The same guest who says, “I’ll think about it,” then never does after being prompted by a front-desk clerk about add-ons may instead spend a few extra seconds evaluating some promotional offers at a kiosk.

As a result, we can circle back to what the latest is with mobile checkin where the concepts of intelligent labour management, biometric identification and window shopping all apply.

Like kiosks, mobile apps have progressed to the point where remote identification can be completed in a secure manner. This is an important step in becoming ‘incrementally frictionless.’

And with that as the goal, another captivating feature for mobile check-in is the ability to provide more detailed arrival info so that the software can interpret the estimated time of arrival to then co-ordinate onsite activities.

As a simplified example, suppose that a guest who purchased a chilled bottle of champagne as a welcome amenity is discovered to be checking in from the airport and you know that on average it takes half an hour to get to your hotel.

This alone would help to guide smoother timing of the required service order to hoteliermagazine.com

FREEPIK.COM/MARTA1995K

he check-in experience is perennially under the microscope because first impressions mean everything.

When you consider the context of the guest that’s arriving — jetlagged, with lower-back pain from being crammed like sardines into an airplane, stressed from being in a foreign city — it makes sense to prioritize upgrading this aspect of the hotel stay, particularly when there are so many tech vendors who can help you solve the challenges of long lineups and disgruntled travellers who may not want to deal with a front-desk agent.

First and foremost, we must mention the non-mobile upgrades, because they are important, too. Yes, certain guest segments would likely prefer to check-in and out directly from their phones and remain largely invisible to the frontoffice team. Consider the solo corporate traveller who wants to be as efficient as possible with their time, or members of the younger generation who are addicted to their phones and may even get minor anxiety from having to contend with the front desk. Then there are luxury hotels or resorts where meeting the guests at check-in is a way to set the tone for an enjoyable stay.

For all these instances where mobile check-in is out of the running, a good first step is developing strong data connections to business intelligence or a dedicated labour-management platform.

Such systems would be able to give you actionable insights on the exact times

BY LARRY AND ADAM MOGELONSKY

the room through the ops platform.

The key here is ‘smoother’ wherein tight labour controls are a consummate goal for hotel management. Once you understand how geofenced check-ins can help to more accurately time service delivery, it lets you get more creative with the type of welcome amenities you can offer and what the arrival experience looks like.

Then, just like the kiosks, the app interface is yet another way to upsell and cross-sell without the subconscious pressure of keeping real people waiting.

As a result, you can test different offers or the specific ordering of offers to see what resonates the most. To be clear, we aren’t talking about night-and-day

revenue growth, but a win is a win, and if you can incrementally drive a few percentage points each quarter for suite upsells or additional F&B orders, then that’s worth celebrating.

It’s important to note the actual hardware that facilitates the mobile check-in process. Your door locks may need some upgrading, which is a potential scheduling roadblock for the low season. That means you have to decide whether to allow for silent

near-field communications so guests can enter the guestroom simply by approaching the door or if you require an extra point of security — and friction — by making them open the hotel app before the door can be unlocked.

Moreover, you will also need backup replacer for when with in the event that a guest's phone dies. Like anything in this regard, permitting mobile check-ins has its uses and its tradeoffs, but we hope this clears up a few points. ◆

Larry and Adam Mogelonsky are partners of Hotel Mogel Consulting Limited. You can reach Larry at larry@hotelmogel.com or Adam at adam@hotelmogel.com

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Headlines SEPTEMBER 2023 | 11

PROFILE

CLOSING the The Keep Refillery aims to rid the world of single-use plastics

BY NICOLE DI TOMASSO

A

fter filming a documentary in the slums of Nairobi, which are littered with plastic waste, husband-andwife duo Andrew Murray and Jacquie Rushlow, set out to develop an innovative solution to a global environmental crisis.

Enter, The Keep Refillery — a retail store designed to help communities reduce their single-use-plastic consumption by offering the option to reuse and re-fill containers with bulk household and personalcare products.

“With no adequate waste infrastructure, Nairobi is literally swimming in plastic,” says Murray. “When we returned, we started doing everything we could to reduce our waste, but it’s challenging because the reality is, consumers aren’t set 12 | SEPTEMBER 2023

up to be able to shop that way.

So, we decided to do something about it.”

With no real experience in retail or entrepreneurial ventures, Murray and Rushlow opened the doors to their first brick-and-mortar location on March 1, 2020 in their hometown of Creemore, Ont. in a 200-sq.-ft. shed. Known for being environmental activists in their community, especially Rushlow, the concept proved to be successful from the start.

“Previously, the shed was being used to store winter tires. There was no heat or running water,” says Murray.

“We bought $10,000 worth of products and knew within an hour of opening that it would work in our small town.”

Three months later, Murray and Rushlow adapted quickly and moved The Keep Refillery into its current space on Main hoteliermagazine.com

Andrew Murray and Jacquie Rushlow

hoteliermagazine.com

owner of The Naramata Inn in B.C. “Since the first time I visited The Keep Refillery in Creemore, Ont., it was clear this was more than a business — it was a mission,” says Vollebregt.

“The real challenge The Keep faces as a company is trying to change the way people think about the way they consume. I believe the hospitality industry has a responsibility to do something about this too. By partnering with like-minded friends, Paul Hollands and Christine Day, to lend our guidance to Jacquie and Andrew, I’m confident we can accomplish just that.”

Earlier this year, Langdon Hall Country House Hotel & Spa became the first hotel in Ontario with an in-house refillery for all in-room amenities by tapping into the expertise of The Keep Refillery, preventing more than 2,000 plastic bottles from ending up in landfills and waterways. Murray says Quebec-based ONEKA is the company’s main supplier for standard in-room amenities, such as shampoo, conditioner, body wash and body lotion. Since then, The Keep Refillery has also partnered with Cobble Beach Golf Resort near Owen Sound, Ont. and the Royal Harbour Resort in Thornbury, Ont. Generally speaking, the refillery offers a range of natural, biodegradable and micro-plastic-free products from more than 100 suppliers. In addition to standard in-room amenities, the store

also offers laundry detergent, dish soap, mouthwash, deodorant, cosmetics and more. Zero-waste accessories, such as bamboo toothbrushes, are also available.

“One of the things that makes us unique in the re-filling space is we hold all of our suppliers accountable for their waste,” says Murray. “We return empty bulk containers to the product manufacturers to be re-filled again and again, creating a closed-loop system.”

Murray continues, “There seems to be an assumption that natural products don’t work properly, but that couldn’t be farther from the truth. If our products don’t work better than what people are currently using, they’ll simply go back to consuming plastic products. Every product that comes into our stores has been vetted by multiple employees.”

In the last couple of years, Murray and Rushlow have officially walked away from the television business to focus full time on their fight against plastic.

“At the end of the day, we are climate activists looking to disrupt the hospitality industry,” says Murray.

“We are leaders in this space and are capable of making real change ― a change that’s essential to the future health of the planet.”◆ SEPTEMBER 2023 | 13

CHRIS ARMSTRONG [ANDREW MURRAY AND JACQUIE RUSHLOW]

Street in Creemore, Ont. Since then, three additional corporate locations have opened in Meaford, Ont. (May 2021), Kingston, Ont. (December 2021) and most recently Toronto (March 2023). Murray says they’re looking to start franchising once the Toronto location finds its footing. In fact, the duo has already received approximately 40 inquiries about franchising.

“Each store is in a completely different market by design,” says Murray. “Our goal is to make re-filling available to all people in all places. We’re trying to educate and change consumer behaviour, which isn’t the easiest thing to do.”

Additionally, an important piece of growing awareness and calls to decrease single-use-plastic consumption involves partnerships with hotels, which Murray says are responsible for nine per cent of all global waste.

To help expand both sides of the business, Murray and Rushlow have taken on three investors: Nicole Vollebregt, former head of Global Sustainability at Adidas, who happened to walk into the Creemore, Ont. location a couple of years ago and reached out a month later; Christine Day, former CEO of Lululemon and current co-founder of sustainable fashion house, The LR&C, which she founded with Russel Wilson and his pop-star wife Ciara; and Paul Hollands, former CEO of A&W and current

Q&A

VIEW

FROM THE

TOP

An interview with Shannon McCallum, VP Hotel Operations at Resorts World Las Vegas

BY ADAM AND LARRY MOGELONSKY

C

alling Shannon McCallum’s career a success is an understatement.

As vice-president of Hotel Operations at Resorts World Las Vegas (RWLV) — which opened in June 2021 as the newest and most technologically advanced casino resort on The Strip — she is responsible for a vast team and an even greater number of guests.

Yet her career traces back to humble roots in British Columbia, offering an exemplary path that any aspiring hospitality leader can learn from.

Growing up in Kelowna, McCallum fell into hospitality by accident. Living a mile away from a luxury property, she started working there during highschool over the weekends and during summer vacations. Working in hotels not only put her through college, but also inspired her to stay in hospitality instead of pursuing law.

Her early experience encompassed 15 years at Canadian Pacific Hotels

14 | SEPTEMBER 2023

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and Fairmont, including time at the Lake Okanagan Resort (managed by Canadian Pacific), opening the Fairmont Vancouver Airport in 1999, and then at the Fairmont Scottsdale Princess. In 2010, she was recruited to join MGM Resorts for the newly opened ARIA Resort & Casino.

Aside from her duties for RWLV, McCallum is currently a board member for the Nevada Hotel and Lodging Association and past chair of the Nevada Hotel and Lodging Foundation.

She’s a member of the Hospitality Financial and Technology Professionals Association and a current co-chair of the 2023 HITEC Advisory Council. She is also co-chair of the 2024 Super Bowl Host Committee for Hotels and Housing and was a prior member of the Forbes Travel Guide Standards Advisory Council representing global gaming properties. In 2015, she was recognized as Hotelier of the Year for the State of Nevada.

Q. What is your current role at RWLV? SM: I’m vice-president of Hotel Operations at RWLV, overseeing all aspects of the hotel operations with more than 1,500 team members.

This includes three luxury hotels (Hilton Las Vegas, Conrad Las Vegas and Crockfords Las Vegas), totaling 3,506 rooms and suites combined. RWLV’s forecast hotel revenue alone is north of $300 million for 2023, while the property itself has more than 50 restaurants and lounges, a vibrant nightlife as well as a hoteliermagazine.com

notable individuals in such an exciting way. I am so fortunate to have taken this path.

THE HOSPITALITY INDUSTRY HAS SO MUCH TO OFFER, AS IT CAN BE PRACTICED ALL OVER THE WORLD AND BRINGS NEW AND DIFFERENT EXPERIENCES EVERY DAY. THERE IS NEVER A DULL MOMENT

Q. Do you believe there is a glass ceiling in our industry?

SM: In the past few decades, there has been an increase of women in executive roles in hospitality. I have never felt a limit to the growth of my career as I have grown my areas of responsibility.

Q. What advice would you offer women working in hospitality?

4,000-seat theatre featuring top A-List entertainment.

Q. Why did you enter the hospitality industry?

What factors continue to excite you?

SM: Working in hotels and taking care of people came naturally to me…it never felt like work. It was exciting to meet new people that were from faraway places and to speak about the city or the property. I still get excited walking through our property, hearing our guests having fun and seeing them enjoying our offerings. As for the present day, hotels are always adapting to changing trends, new menus, updating experiences and it never gets stale or routine — every day is different.

Q. Which individuals or events have fuelled your career?

SM: When I was 16, a hotel I worked at hosted a Commonwealth of Nations with a high level of security due to the leaders of the countries in attendance. I clearly remember Margaret Thatcher, the Sultan of Brunei, Rajiv Gandhi and Brian Mulroney in attendance, among many other high-level leaders.

During the event, I thought to myself, “What a rare opportunity to be involved in such a momentous gathering.” It was indeed a very exciting moment for someone my age to be a part of, and there are very few careers that have this ongoing interaction with

SM: I do feel strongly that building my personal legacy in a positive way, working in a dedicated manner and also treating people well — both internally and externally — played a large part in the opportunities that were open for advancement.

I would also emphasize getting involved in the community by joining industry associations and volunteering, as well as building the pipeline of talent for the future of our industry by mentoring up-and-coming individuals.

Networking with other hospitality individuals and vendors is always important, while building relationships with my guests over the years and caring about their experiences has also been rewarding.

The hospitality industry has so much to offer, as it can be practiced all over the world and brings new and different experiences every day. There is never a dull moment. ◆ SEPTEMBER 2023 | 15

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EDITORIAL

16 | SEPTEMBER 2023

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RECOVERY MODE Canadian hotel occupancy predicted to reach 66 per cent for 2023

BY NICOLE NGUYEN, SENIOR VICE-PRESIDENT, CBRE HOTELS

or the first time since 2019, the hotel industry in Canada in 2023 is operating at full capacity without the restrictions, limitations and disruptions that defined the pandemic years. This is forecast to result in RevPAR growth of 17 per cent this year, which is being led by the major markets. Although this growth pales in comparison to the 2021 and 2022 RevPAR gains of 45 per cent and 95 per cent respectively, in the context of longer-term year-over-year RevPAR

growth, this improvement will be almost double any other single year of growth since the inception of the CBRE Trends database in 1998.

Looking back at 2022, even with the soft first quarter due to the Omicron wave, the market realized incredible gains in all top-line metrics, with occupancy improving 20 points to 61 per cent, while ADR grew almost 33 per cent to $179. Taken together, these improvements resulted in a RevPAR growth of 95 per cent, or $53, to $109.

This brought RevPAR to 103 per cent of 2019 levels. Interestingly, while the national RevPAR recovered beyond 2019 levels, occupancy finished five

Indicator Occupancy

ADR

to six points below prior peak, with the industry short about five million occupied room nights. The recovery of RevPAR in 2022 was driven by the strength of the performance in the secondary and tertiary markets across the country.

Just as the pandemic caused a demand shock unlike anything the industry had previously experienced, the ADR-led nature of the recovery that the industry has experienced to this point is also unique. Previously, the recovery following a demand shock such as 9/11, SARS or the Great Financial Crisis was led by a relatively rapid return of demand levels (typically

Year Over Year Change RevPAR

Supply

Demand

OCC

ADR

RevPAR

Historic 2019

65%

$163

$106

1.4%

0.8%

- 1 pt

5%

5%

2020

30%

$128

$39

0.7%

--53%

-35 pts

-21%

-64 %

2021

41%

$135

$56

0.5%

39%

11 pts

5%

45%

2022

61%

$179

$109

0.6%

48%

20 pts

33%

95%

10%

5pts

8%

Forecast 2023

66%

$193

$128

0.9%

17% Source CBRE Hotels

hoteliermagazine.com

SEPTEMBER 2023 | 17

National Supply Change Long Run Average 1998-2018

2019

2020

2021

2022

2023

1.4

1.4

0.7

0.5

0.6

0.9

Supply Change (%)

one to two years) with ADR recovery taking several more years (typically three to four) with total RevPAR rebound taking between four and six years.

Based on the 2022 results and the current forecast, ADR and RevPAR recovery took 2.5 years and three years respectively, while occupancy is on track for a four-year recovery timeline.

18 | SEPTEMBER 2023

DEMAND HAS RECOVERED, BUT HAS IT? While supply is certainly playing a role in the forecast occupancy, the strength seen on the demand side is contributing as well. According to Conference Board of Canada, although domestic overnight visits (which accounts for almost 80 per cent of Canada’s total overnight visitation) are forecast to surpass 2019 levels this year, the visits are still skewed more towards pleasure visits, which will be 110 per cent of 2019 levels with business overnight visits at only 88 per cent of 2019 levels. The strength of domestic visits is helping to mitigate the lower U.S. and overseas visits, which are at 92 per cent and 86 per cent of 2019 levels respectively.

While the hotel industry is forecast to capture more than 113.6 million occupied room nights in 2023, a higher proportion than normal is coming from leisure demand. It would appear that some of the pent-up leisure-travel demand, which played a significant role in 2022, continues to be a factor in 2023 and for the time being is enough to offset the softness on the businesstravel side. Going forward, the question is how long business travel may take to recover to 2019 levels, which based on the Conference Board forecasts could be 2026 or 2027, and how to fill any gaps that may be created as Leisure demand normalizes.

ADR GROWTH DECELERATING As noted, national ADR increased by almost $44 or 33 per cent in 2022 growing to $179. The improvement of ADR was a major contributor to the industry being able to recover to 2019

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SUPPLY GROWTH: LOWER FOR LONGER? As noted, the forecast for 2023 will see national occupancy improve to 66 per cent, a peak for the industry and generally accepted to be functional capacity given the seasonality of the markets and traditional travel patterns of the various demand sources. However, in the shortterm there is the potential that national occupancy could exceed these levels given the modest supply growth anticipated.

Between 1998 and 2018, annual supply growth nationally averaged 1.5 per cent.

Unlike previous downturns, where it took several years for the supply curve to adjust to the change in demand levels, during the pandemic, supply reacted immediately. This, of course, was because in many areas of the country, construction sites were shut down at various points, there were significant supply-chain issues and the uncertainty caused lenders and developers to pause or reconsider going ahead with new projects.

As a result, there were very few projects which commenced construction in the latter half of 2020, 2021 or even the first half of 2022, this, coupled with several closures and conversions to alternate use has resulted in supply growth which has been in the range of 0.6 per cent per year. While there is a robust pipeline of new projects which are proposed or in the planning stages, it is likely going to be a few

more years before supply growth catches up with the demand curve and the market supply/demand conditions rebalance and moderate occupancy.

RevPAR levels in 2022. Operators have been able to drive significant ADR growth for several reasons, including the general economic inflationary conditions, a higher level of leisure demand due to pent up travel desire and excess discretionary income. Since early 2021 the 12-month rolling average of ADR growth has been in the 30 per cent to 40 per cent range, but in the last few months, the pace of this growth has slowed. For July, the growth was about 16 per cent. While this growth is still very strong it suggests that some of the yield pressure, particularly during peak periods, is starting to soften.

The recent travel-intentions survey pointed out that Canadians, specifically middle-income earners, are planning to scale back on travel as cost pressures related to the cost of living is cutting into their discretionary income.

THE NEW NORMAL: SAME BUT DIFFERENT As noted in 2023, all of the top-line

Coast Capri Hotel - Kelowna, BC

performance metrics are forecast to recover to, or exceed, prior peak levels and the industry will be considered fully recovered from the impacts of the COVID pandemic. However, not everything has returned to the way it was. At present, the occupancy recovery continues to rely heavily on higher-thannormal levels of leisure demand, which has also made a significant contribution to rate yield. Business travel forecasts do not expect for this source of demand to return to 2019 levels until 2026 or 2027, which may present a challenge if leisuredemand levels and travel patterns return to more historic levels.

Additionally, increasing pressure on discretionary spending, both for households and businesses, is likely to slow the pace of ADR growth. Overall, the second half of 2023 is expected to generally be on par with the same period last year, which will mean that the gains realized in the first half will be the driving force behind the 17 per cent RevPAR growth forecast for 2023.

CBRE HOTELS 2023 MARKET FORECAST

BY CBRE HOTELS AND CBRE TOURISM CONSULTING

At the end of last year, the expectation was that 2023 would bring increasingly diverse segmentation and the return of more contracted rate demand was going to push national occupancy back to peak levels with more temperate ADR growth and RevPAR improving 11 per cent.

Based on the current forecast, national RevPAR performance will exceed these expectations on the basis of stronger ADR growth.

For many people, the resiliency of ADR and the continued yield pressure has been a pleasant surprise as almost every market is expected to see high single digit or low double-digit rate

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growth. These conditions have created an “upside-down” recovery where ADR has recovered more quickly than occupancy. By the end of 2023, the forecast projects RevPAR to be at 120 per cent of 2019 levels.

It is against this backdrop that CBRE has prepared its 2023 Market Forecast.

MAJOR METRO MARKET OUTLOOKS Canada’s major markets account for more than 42 per cent of all rooms across the country and have a significant influence on the national performance for the industry year to year. In every one of Canada’s major metro markets, the forecast projects double-digit RevPAR growth in 2023 with relatively little new supply, strong demand growth and continued rate yield.

VANCOUVER After relying primarily on domestic and U.S. visitation in 2022, international visitation is expected to pick up pace in 2023. Despite challenges this year at Canadian airports, including in Vancouver, passenger statistics at YVR in 2023 are pacing well ahead of last year. Similarly, the number of cruiseship passengers and number of vessels in 2023 is pacing ahead according to yearto-date statistics. In fact, the cruiseship sector is expecting a potential 1.3 million passengers this year, which is well ahead of 2019 figures.

Strong guestroom demand and market occupancy is expected across all metro Vancouver markets in 2023. While downtown Vancouver hotels contribute significantly to the region’s performance, the suburban markets are also experiencing their fair share of demand growth. However, room supply is also a contributing factor to the region’s occupancy performance.

There has been no substantial increase in rooms since 2010 and, in fact, available rooms are currently below 20 | SEPTEMBER 2023

historic levels due to the permanent closure of several properties, particularly for the purpose of conversion to alternative use.

Room supply is expected to increase only moderately in 2023, at approximately one per cent. On the other hand, room demand is projected to increase by 9.5 per cent for the year, pushing occupancy to 80 per cent for the Metro Vancouver region, which is in line with 2019 levels. Coming off of 42-percent rate growth in 2022, the market is projected to see another 14-per-cent growth in 2023 driven by strong first quarter ADR yield and high demand levels. This growth is expected to push rate up by $32 to $270. RevPAR for Metro Vancouver is projected to improve almost 24 per cent, which will put it at $41 ahead of 2019 pre-pandemic RevPAR performance.

VANCOUVER

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

2019

2020

2021

2022

2023

Occupancy ADR RevPAR

80% $219 $175

32% 48% $147 $167 $47 $80

74% $237 $175

80% $270 $216

Source: CBRE Hotels

CALGARY GDP growth for Alberta and for the city of Calgary was strong in 2022.

While the pace of growth is expected to be slower in 2023, economic growth is still expected to be positive due to high agriculture and energy prices and a population boom. The growth in population helps the labour force, which in turn improves consumer confidence and spending despite the recent wildfires, inflation and interest-rate pressures. All in all, the economic growth is positive for the accommodation sector as it keeps demand strong.

Despite an office vacancy rate that remains above 30 per cent in downtown Calgary, the market experienced its fourth-consecutive quarter of positive net absorption as of Q2 2023. Calgary has generally seen a higher rate of employees working from the office consistently, which provides optimism for the office market for the long term.

While the city typically hosts the Global Energy Show each year, in September 2023 Calgary will also host the World Petroleum Congress, which is expected to attract up to 15,000 visitors. This event, as well as the boost in visitation to the Calgary Stampede, is contributing to the overall tourism forecast for Calgary, which is a five-percent lift in visitation over and above pre-pandemic levels. The pace of growth in passenger volumes at the Calgary International Airport in 2023 is very strong, led by U.S. and international visitation. Overall occupancy for the Calgary market for 2023 is projected to reach 63 per cent, which is ahead of 2019 results. While demand growth in downtown Calgary is expected to be very strong in 2023, the suburban markets are all performing very well and are expected to achieve occupancy ahead of 2019 performance. In terms of ADR, growth of 5.5 per cent for Calgary overall is projected for 2023, reaching $165. This is ahead of 2019 results and is in line with the level of rate achieved in 2014, the previous peak of the market. RevPAR in Calgary is projected to improve approximately 14 per cent overall to $104.

CALGARY

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

2019

2020

2021

2022

2023

Occupancy ADR RevPAR

61% $145 $88

24% $113 $27

33% $119 $40

58% $157 $91

63% $165 $104

Source: CBRE Hotels

EDMONTON The strength of the Alberta economy in 2023 is playing into the health of Edmonton. The city is experiencing strong employment and job growth, as well as population growth, which is contributing to an uptick in housing starts and growth in the construction sector in general. As with Calgary, a healthy energy sector in the province is beneficial to the Edmonton economy.

Continued investment into the tourism sector is helping to keep attractions fresh and new. It further helps that Forbes named Edmonton as one of the best places to travel to in hoteliermagazine.com

2023. Passenger statistics at Edmonton International Airport show significantly improved traffic through the airport – with volume up nearly 50 per cent relative to the same period in 2022.

From an accommodation perspective, supply growth in the Greater Edmonton market has been moderate over the last few years after experiencing years of relatively significant growth. As a result, the gains in market demand are leading to improvement in occupancy, which in 2023, is projected to reach ahead of 2019 at 57 per cent. Rate growth is expected in downtown and in each of the submarkets, which is leading to projected ADR growth of 9.5 per cent overall, or more than $10 by year end 2023. RevPAR for the Greater Edmonton accommodation market is projected at $78 in 2023, up from $65 in 2022.

EDMONTON

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

2019

2020

2021

2022

2023

Occupancy ADR RevPAR

56% $127 $71

28% $112 $32

34% $101 $35

53% $125 $65

57% $136 $78

Source: CBRE Hotels

REGINA The accommodation market in Regina continues to benefit from the steady provincial economic conditions and from unchanging accommodation supply. With the exception of the entrance of one new property in 2021, the market has not experienced supply growth since 2017. Prior to that, market supply had grown at a rapid pace for five years. The recovery in market occupancy from the past supply increases and from the pandemic has been healthy as the market works toward achieving occupancy above 60 per cent for the first time since 2015.

Room demand in Regina is projected to increase by eight per cent in 2023, with occupancy reaching 56 per cent, up from 52 per cent in 2022.

Encouragingly, market ADR is projected to be $133 in 2023, which is a level that hasn’t been achieved since 2013/2014. Overall, RevPAR for the Regina market is projected to increase hoteliermagazine.com

to $74 in 2023, up approximately 14.5 per cent and well ahead of prepandemic results.

REGINA

2019

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

2020

2021

2022

2023

Occupancy ADR RevPAR

57% $120 $68

29% 35% $103 $102 $30 $35

52% $126 $65

56% $133 $74

Source: CBRE Hotels

SASKATOON Early sentiments for Saskatoon’s economy for 2023 suggest healthy GDP growth driven by demand for the province’s natural resources, solid employment gains including in the hotel sector, and some consumer resilience which can buoy retail spending. The stable and healthy economy bodes well for the accommodation sector, as has been demonstrated thus far in 2023.

Guestroom demand in 2023 is projected to increase by eight per cent, leading to a four-point increase in occupancy to 61 per cent, up from 57 per cent in 2022. Guestroom supply in Saskatoon has remained constant since 2021, which has helped in improving occupancy to reach 2019 levels. As with many markets across the country in 2023, ADR growth is projected to be healthy at 11 per cent for Saskatoon, equating to a $14 rate lift over 2022.

Overall, RevPAR is projected to improve by approximately 20 per cent in 2023 to $88, which is well ahead of pre-pandemic results.

SASKATOON

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

2019

2020

2021

2022

2023

Occupancy ADR RevPAR

61% $125 $76

31% $111 $34

39% $110 $43

57% $129 $73

61% $143 $88

Source: CBRE Hotels

WINNIPEG A steady and diverse economy helps to keep Winnipeg in a good economic position year over year. In 2023, the manufacturing sector is performing well and is contributing to a positive GDP outlook. The accommodation market

in Winnipeg is also generally very steady with a good mix of corporate, crew, and leisure travellers. In 2023, group demand is largely back and the city is expected to benefit from playing host to the World Police and Fire Games, which can attract up to 8,500 athletes plus spectators in late July/early August. The province and city have also been a welcome refuge to Ukrainian immigrants, many of whom spent at least the initial days of their arrival in area hotels.

In fact, the Winnipeg accommodation market is off to a roaring start in 2023. Occupancy has been pacing at approximately 80 per cent each month since the early part of the year. As a result, market occupancy is projected to increase to a robust 77 per cent in 2023, up 11 points from 2022 and well ahead of historic results. Demand growth is pacing well ahead of supply growth, which is expected to increase this year and next. The strong demand is helping operators generate sizeable increases in ADR. Overall, ADR for Winnipeg for 2023 is projected at $161, up from $143 in 2022. RevPAR is projected to increase to $124 in 2023, the first time in the sector’s history to reach RevPAR at more than $100.

SEPTEMBER 2023 | 21

WINNIPEG

2019

2020

2021

2022

2023

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Occupancy ADR RevPAR

70% $128 $90

30% 40% $118 $117 $35 $47

68% $143 $97

77% $161 $124

Source: CBRE Hotels

TORONTO The Greater Toronto Area (GTA) has continued to see solid tourism recovery in 2023, after the easing of pandemicrelated travel and gathering restrictions in early 2022. However, like a number of other major markets in North America, it continues to see a delayed return to pre-pandemic corporate demand in addition to office vacancies rising significantly, reaching 15.1 per cent through Q2 2023. Business-related visitation in the city not expected to return to pre-pandemic levels until 2026.

Despite this, economic growth in the GTA is expected to remain positive, although more temperate in 2023.

The downtown market has seen a strong return of domestic and international leisure travel, as well as meeting/conference travel. A full return of major conferences and festivals such Collision Conference, Pride, and Caribana have indicated the return to major events throughout the city and have helped support the growth in the suburban markets as well. Overall room demand for the GTA market is projected to increase by approximately 12 per cent in 2023. Following a couple of years where the region generally saw room supply run flat due to permanent closures off-setting new openings and other projects being delayed or pushed out, in 2022, supply in the GTA is increased about 2.2 per cent in 2022 with a just over 1,000 new rooms opening. It is expected that supply will continue to grow at a similar pace in 2023, increasing another 2.3-per-cent in 2023. Overall, occupancy in the GTA is projected to increase by six points, to 73 per cent in 2023.

In 2022, after two years of ADR declines, rate shot up more than 54 per cent adding $70 and surpassing 2019 levels by a little less than $20. As noted earlier, strong leisure and meeting-andconference demand and rate yield was a 22 | SEPTEMBER 2023

significant force behind the very strong ADR recovery. In 2023 it is expected that further ADR growth will occur as demand levels continue to recover in the region. While the downtown and airport markets will lead the ADR growth, all the sub-markets are projected to see double-digit rate increases. Overall, it is expected that the GTA ADR will increase by an estimated 12 per cent, or about $25, in 2023. The strong growth in both occupancy and ADR are expected to drive RevPAR improvement of approximately $30, or 23 per cent for 2023.

highspending cross-border and domestic travellers, the market ADR growth is projected to moderate to one per cent, reaching $203 in 2023. This change is attributed to increased demand in the lower-rate shoulder and off peak time periods. Even with this moderation, the market ADR is expected to finish more than $35 ahead of 2019 levels.

As a result, Niagara Falls is projected to achieve RevPAR growth of 23 per cent. improving to $135 in 2023.

TORONTO

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

2019

2020

2021

2022

2023

Occupancy ADR RevPAR

66% $168 $112

25% $116 $29

33% $156 $51

55% $201 $110

67% $203 $135

NIAGARA FALLS

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

2019

2020

2021

2022

2023

Occupancy ADR RevPAR

74% $184 $137

28% $138 $38

44% $131 $57

67% $202 $136

73% $227 $166

Source: CBRE Hotels

NIAGARA FALLS As one of the predominant leisure markets in Canada, Niagara Falls tourism is the main driver of the economy and a major source of employment in the market. The market welcomes travellers from across the country and around the world who visit each year to experience the Niagara Falls and various attractions in the area. Visitation to Niagara Falls was significantly impacted during the pandemic due to the prolonged border closure, travel, and gathering limitations.

However, as the restrictions were eased, and ultimately lifted in early 2022, there was a significant rebound in visitation to the region. Overall visitor spending in the market is expected to continue to grow in 2023 off the base of this demand, surpassing pre-pandemic levels with strong and continued growth over the medium term.

The market is not expected to see any new supply growth in 2023, and with market demand projected to increase by 22 per cent, occupancy is projected to rise by 12 points to 67 per cent this year as the return of higher rated U.S. individual and group (i.e. tour) travel has helped drive demand since mid-2022.

Following a 28 per cent ADR growth in 2022, driven by a strong summer travel season and the comeback of

Source: CBRE Hotels

OTTAWA Ottawa, the Nation’s Capital, and as the seat of the Federal Government, sees public administration account for approximately 31 per cent of GDP in the region. Historically, the region has been a government and meeting/conference market with a good base of seasonal leisure travel. Beginning in mid-2022, there has been strong growth in leisure travel which has been bolstered by the return of large events such as Winterlude, and Canada Day celebrations, among others.

Further, CNN Travel named Ottawa one of the top-10 places to visit in 2023.

Activity in the market from government sources is also expected to improve with the return of in-person government sessions and return-to-work policies.

However, as with many major markets across the country, the office market has seen continued increases in vacancy rates, reaching 13.6 per cent thorough Q2 2023, and prolonged negative net absorption.

With less than a oneper-cent increase to overall room supply projected for the hoteliermagazine.com

region, market occupancy is projected to improve by seven points to 69 per cent in 2023 with demand from government, meeting/conference and other sources expected to continue to ramp up activity.

Following growth of more than 35 per cent in 2022, the market ADR is projected to improve by 10 per cent or $17 to $194 in 2023. The strong ADR growth has primarily been driven by rate growth in the suburban markets, which are following the trend driven by the downtown market. As a result of the very good growth in both occupancy and ADR market, RevPAR is expected to finish at $134, a 23 per cent or $25 improvement relative to 2022.

OTTAWA

Occupancy ADR RevPAR

2019

2020

2021

2022

2023

71% $167 $119

30% $136 $41

41% $130 $54

62% $177 $109

69% $194 $134

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

Source: CBRE Hotels

MONTREAL In 2022, GDP growth for the Greater Montreal Area was good. While growth is expected to be relatively flat in 2023, economic growth is expected to be improve more positively over the medium term. Montreal benefits from a welldiversified economy, which is supporting the return of corporate and meeting/ conference demand.

It is expected that these segments will play significant role in the demand recovery going forward. However, the Montreal office market has seen growing vacancy rates since the start of the pandemic, as with many major markets in Canada, reaching 17.4 per cent through Q2 2023. This is expected to continue in the short term as corporate hoteliermagazine.com

demand in major urban centres lags prepandemic levels.

The Greater Montreal Area saw someof the most significant impacts during 2020 and 2021 as a result of strict provincial government-mandated travel and gathering restrictions, in addition to the national border closures.

Montreal sees a significant number of international visitors, not only from the U.S., but also from Europe (namely France) due to its linguistic and cultural ties. The return of these demand sources throughout 2022 and 2023 has supported a strong recovery in accommodation demand in the Montreal market.

Occupancy in 2022 improved to 63 per cent on the back of the strong return of leisure travel, however still below prepandemic levels as corporate demand continued to lag. This is expected to continue to drive improvement through 2023, with accommodation demand increasing 15 per cent, and supply increase of about two per cent leaving market occupancy at 71 per cent in 2023. The higher-rated leisure-travel demand helped drive a significant improvement in ADR in 2022 to $206, surpassing pre-pandemic highs. It is projected that strong rate growth will continue in 2023, with growth of about seven per cent resulting in an ADR of $221 for the year. Overall, RevPAR in the Greater Montreal market is expected to improve about 21 per cent as a result of continued demand and rate growth, improving to $157 in 2023.

MONTREAL

Occupancy ADR RevPAR

2019

2020

2021

2022

2023

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

73% $184 $134

21% 33% $141 $152 $30 $50

63% $206 $130

71% $221 $157

Source: CBRE Hotels

down in 2023/24, it is projected to remain positive over the medium term.

With the largest portion of visitation coming from domestic pleasure travel, this is expected to remain a vital support to the accommodation market going forward. In 2022, the market benefited from a return of major festivals and events, as well as meeting and conference activity and leisure travel.

These segments are expected to continue to ramp up throughout 2023.

In 2022, Quebec City saw a significant improvement in overall accommodation demand, increasing by 73 per cent with the lifting of pandemic-related restrictions in the early part of the year. This demand rebound, against minimal increase to market supply, led to occupancy improving to 57 per cent in 2022.

Demand in the market is expected to see continued growth in 2023, improving a projected 17 per cent, pushing occupancy to 67 per cent for the year. There are no significant supply changes in 2023 expected for the market.

Market ADR saw dramatic improvement in 2022 off the strong growth in leisure demand, increasing 31.5 per cent, surpassing pre-pandemic highs. While not as significant as 2022, rate growth in Quebec City is expected to be positive in 2023 at three per cent, lifting ADR to $222. Overall, RevPAR in the market is expected to improve over 20 per cent in 2023 as a result of the strong demand and positive rate growth, increasing to $149 for the year.

QUEBEC CITY

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

2019

2020

2021

2022

2023

Occupancy ADR RevPAR

69% $177 $122

25% $140 $35

33% $164 $55

57% $215 $124

67% $222 $149

Source: CBRE Hotels

QUEBEC CITY Similar to Montreal, Quebec City sees a significant number of international visitors due to its cultural and linguistic ties to France. The region features a diversified economy and is the seat of the provincial government. GDP growth in the region was strong in 2022 at four per cent, while it is expected to slow

HALIFAX/DARTMOUTH As the economic centre of Atlantic Canada, Halifax is the largest cultural and financial hub in this region with significant employment in trade, health care, professional services, education, and public administration.

Additionally, Halifax is home to several SEPTEMBER 2023 | 23

internationally recognized universities, regional health-care facilities and the military. From a tourism perspective, the region offers some significant heritage and cultural attractions such as the Halifax waterfront, the Citadel Hill, and Peggy’s Cove.

Over the last couple of years Halifax/ Dartmouth has seen robust GDP growth and although this is expected to moderate in 2023, down 0.5 per cent, economic fundamentals remain strong with a falling unemployment rate, strong housing starts and population growth.

The accommodation market in Halifax/Dartmouth is expected to see a recovery to pre-pandemic levels in 2023, with occupancy rates projected to reach 70 per cent. This rebound is attributed to increaing demand during the shoulder and off-peak periods, along with a 1.9 per cent growth in supply. The strong rebound in leisure related travel and general economic conditions helped drive a significant increase in rate for the region in 2022 as ADR increased to $180, a 55-per-cent improvement over 2021. Rate growth is projected to remain strong in 2023 with an additional 10 per cent growth projected to finish the year at $199. Overall, RevPAR in the Halifax/ Dartmouth region is projected to grow almost 16 per cent in 2023, reaching a new high of $139.

related to the Ukranian refugee arrival program being facilitated in the city.

Finally, St. John's is also seeing an increase in tourism-related activity with domestic pleasure travel nights more than six per cent of 2019 levels.

These conditions coupled with stable supply is expected to result in occupancy increasing by 11 points to 71 per cent in 2023. These occupancy levels for the market are comparable to 2014 performance. Month-over-month rate growth has been extremely strong because of the high demand levels providing compression and supporting good yield. As a result, ADR for the year is projected to grow by almost six per cent, or $9, over 2022 to $152. The strong improvement in occupancy and ADR is projected to drive to a RevPAR increase of approximately 26 per cent HALIFAX/DARTMOUTH to $108 for 2023. This RevPAR level will bring the market performance back

2019 2020 2021 2022 2023 to 2014 levels, before the oil and gas

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F) industry downturn.

Occupancy ADR RevPAR

70% $155 $108

28% $112 $31

41% $116 $47

67% $180 $120

70% $199 $139

Source: CBRE Hotels

24 | SEPTEMBER 2023

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

2019

2020

2021

2022

2023

Occupancy ADR RevPAR

56% $133 $74

23% 35% $104 $105 $24 $37

60% $143 $85

71% $152 $108

Source: CBRE Hotels * All projections are rounded.

NATIONAL MARKET OUTLOOK The forecast for the national accommodation market are a combination of projections completed for the various major markets as well as the provinces and territories across Canada. These forecasts consider the various economic, travel and supply and demand dynamics

NATIONAL

ACTUAL ACTUAL ACTUAL ACTUAL CBRE(F)

2019

2020

2021

2022

2023

Occupancy ADR RevPAR

65% $163 $106

30% $128 $39

42% $135 $57

61% $179 $109

66% $193 $128

Source: CBRE Hotels

hoteliermagazine.com

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ST. JOHN’S St. John’s is the largest, and capital city of Newfoundland and Labrador.

In recent decades, the economy in the region has become heavily focused on natural resources, including several offshore oil and gas developments, which has resulted in fluctuating economic conditions depending on the “health” of these commodities.

The resumption of the West White Rose project and related activities has bolstered demand. Most significant though is the special-purpose demand

ST. JOHN'S

at play. While the National forecast provides a macro, directional indication of industry performance, there are numerous factors that will impact the recovery and performance of individual markets, such as sources/mix of guestroom demand and seasonality which impact the performance results for 2023 and beyond.

National accommodation supply remained muted in 2022, growing marginally at 0.6 per cent.

In every market across the country, occupied room night demand accelerated in 2022 and is expected to see additional growth in 2023. While the return of corporate demand has been slower, especially in major markets, meeting/conference and government demand is growing as leisure demand continues to be the most-significant driver. Nationally, demand is projected to increase by approximately 10 per cent in 2023, with occupancy improving five points to 66 per cent.

Nationally, the rate growth has remained very strong, with large gains built in the first several months of the year. Although the pace of rate growth for the rest of the year is expected to soften, rate growth is still projected to increase eight per cent or $14 in 2023, finishing $30 ahead of 2019. As a result of the growth in both occupancy and ADR, RevPAR is projected to increase by 17 per cent, to $128, up $19 over 2022. ◆

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GLOBAL UPDATE

GLOBAL GROWTH Strong global demand and operating results drive growth

BY MORAG MCKENZIE

ISTOCKPHOTO.COM/YMGERMAN

26 | SEPTEMBER 2023

hoteliermagazine.com

ith borders re-opened to travel, pent-up demand has resulted in strong hotel operating performance and demand across all regions and sectors in 2023.

This is expected to continue through the balance of 2023-2024 with project construction and conversion pipeline projected at two to eight per cent following relatively flat growth for three consecutive years. The three regions with the strongest projected growth are the Middle East, Asia Pacific and United States.

Demand and growth vary by region as affected by global and regional factors, including changing lifestyles, high financing costs, supply challenges, increasing operating costs and environmental challenges.

BLURRING THE LINES Driven by the growing evolution of the workfrom-home mobile lifestyle, hoteliers are investing in non-traditional hospitality concepts, blurring the lines between hotels, long-term stays, residential and co-living. “Service-level apartments have continued to grow in popularity in the luxury and premium markets as it brings a certain cache to the address and provides both short- and longer-term guests with all the resort-style amenities they are looking for. It also diversifies the risk to the developer,” states Bruce Ford, SVP, Lodging Economics.

As one of the world’s largest hospitality companies, Accor operates 5,400 locations in more than 110 countries. Agnès Roquefort, Chief Development Officer-Luxury & Lifestyle says, “Our Fairmont and Raffles residential brands, which offer mixed-use living have grown 170 per cent since 2010. Our recently opened Raffles Boston is an excellent example of this, as 50 per cent (146) are branded residence and the balance (147) are hotel rooms. Both brands have very strong F&B, wellness and other resort-style amenities and experience strong demand for both lifestyles.”

HIGH COST OF FINANCING Global interest rates remain high, making obtaining the financing required for new builds

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increasingly difficult to obtain and maintain.

“While strong global demand and operating performance have given investors’ confidence in the hotel sector, the high cost of debt and scarcity of funding remains a significant issue for the U.S. and Europe. The only exception to this is the Middle East,” explains Roquefort.

The confluence of these factors has led to an explosion in growth of conversions and renovations of existing buildings. This is particularly true in the luxury and premium market as it can take three to five years for a new build to open. More than 50 per cent of growth in our premium brands will come from conversions, primarily from independents or another brand,” adds Camil Yazbeck, Global Chief Development Officer, Premium, Midscale & Economy, Accor.

He adds, “Independent-hotel owners barely had a chance to recover from the pandemic and are now facing new challenges from labour shortages, spiking supply costs and rising interest rates, so the support of a global company like Accor is very compelling.”

LEANER AND GREENER While the Environment, Sustainability and Governance (ESG) has been top of mind for hoteliers for many years, it has now become a key differentiator and growth driver for many brands.

An excellent example of that are SH Hotel’s 1 Hotels. “As a mission-driven lifestyle hotel brand inspired by nature, 1 Hotels cultivates the best of conscious design, architecture, lifestyle and sustainable operations. 1 Hotels has experienced tremendous growth, including our flagship property in Hanalei Bay (Kauai), and Mayfair (London),” explains Abhay Bakaya, SVP, Development, SH Hotels & Resorts.

ESG has become even more critical in hotel growth and development as mounting research and financial tools now allow hotels to more effectively measure ESG’s impacts. This will allow it to be reflected in a hotel’s valuation — good news for operators who have made a longstanding and deep commitment to maintaining the highest standards at their properties.

Increasing concern about climate change and its impacts, high energy and other operating costs will also force hoteliers to invest in new technologies, energy reduction and elimination

SEPTEMBER 2023 | 27

of unnecessary services leading to more efficient and sustainable operating models.

Hotel Morris, Sydney (Australia)

Perth (Australia)

Hotel Shanghai Sheshan Oriental, Shanghai (China)

Bucharest (Romania)

BE LOCAL — GLOBALLY Today’s hotel guest is looking for much more than a room — they’re looking for an experience that reflects the local foods, community and culture of the area they are visiting. This is particularly true in mature and unique markets such as Europe, the U.S. and Asia-Pacific.

Leading global hoteliers are recognizing this, adding brands to their portfolio that celebrate the unique nature of an independent hotels’ architecture, design, culture and location. “Our Handwritten Collection celebrates the unique charm and personality of each hotel, their community and the people that look after them. We have two hotels open with secure signings and pipeline leads for approximately 100 more,” explains Yazbeck.

GROWTH IN THE MIDDLE EAST The Middle East has become one the world’s fastest-growing tourism destinations — hosting major cultural, religious, and sporting events — which has helped propel demand and operties with a occupancy throughout the region. As addition, stated its locations

by Lodging Economics, countries e the hospitable in the Middle East with the greatest number of projects are Saudi Arabia aveler’s journey with (260 projects/70,069 rooms) and United Arab Emirates (UAE) with 108 projects/28.973 rooms.

The cities of Dubai, Riyadh, Jeddah and Doha account for 52 per cent of this growth. “The Middle East is a true showcase for complex luxury and midscale development as clients are looking for holistic experiences. We are also seeing growth in all-inclusive resorts and very large (400+ rooms) hotels as tourism becomes more significant every year,” explains Roquefort. “It is also under-serviced in terms of supply.”

The largest brands in Middle East pipeline are Hilton’s upscale DoubleTree brand followed by Accor’s Novotel and Marriott’s Courtyard.

TELS

SPORTING EVENTS DRIVE EUROPEAN MARKETS Another positive year is projected in 2023-2024 for European markets as a 28 | SEPTEMBER 2023

result of increases in Average Daily Rate (ADR). Paris is expected to lead this growth, hosting major events including the Rugby World Cup and Summer Olympics in 2024. Simon Vincent, EVP and president, Europe, Middle East & Africa, Hilton, said, “We’re experiencing record growth in France, with 2023 set to be a historic high for hotel openings. As a key market for Hilton, we’re focusing on developing hotels in regional French towns and cities, the south coast and continued expansion in Paris as France gets ready to host major global sporting events.”

This has helped offset the negative impact of supply-chain challenges, labour shortages and inflation. Concern remains over a potential recession and

the effects of Russia’s war with Ukraine, which could result in less disposable income for consumers. However, forecasters expect an increase in business and meeting travel should offset any potential slowdown in leisure demand.

Lodging Economics reports that these factors have led the region’s hotel construction pipeline to stand at 1,776 projects/226,901 rooms. Of this, approximately 45 per cent are under construction and 25 per cent are projected to start within the next year.

And while new construction continues in Europe, conversions are also a key driver of growth.

“Conversions are a one-stop investment as they provide bespoke F&B concepts, procurement, marketing and our hoteliermagazine.com

powerful Accor loyalty programs.

Europe is ripe for conversions as they are known for the quality, uniqueness and number of independents,” adds Yazbeck.

The European construction pipeline is led by United Kingdom, Germany and France followed by Portugal and Turkey.

ASIA PACIFIC GROWTH REMAINS STEADY The outlook for Asia Pacific looks bright in 2023, as the return of travellers from mainland China drives regional performance and results in a projected full recovery by 2024. Asia presents a $10-trillion consumption growth opportunity with more than one billion Asians set to join the middle class by 2030. This burgeoning middle class is expected to be value-driven, making regional expansion of mid-upscale hotels timely. “Hilton Garden Inn hits a sweet spot for owners and travellers alike in terms of value and quality. In Asia Pacific there are 85 properties in operation with over 100 in the pipeline,” explains Clarence Tan, SVP Development, Asia Pacific, Hilton.

Pent-up travel demand continues for major tourist hubs (mainland China, Japan and Hong Kong) as each reopened borders to the rest of the word. Markets such as Australia, Korea, India and most of Southeast Asia have been open for travel since 2022 and have already seen hotel performance surpass 2019 levels.

Lodging Economics reports India leads the region with the largest pipeline at 427 projects/51,350 rooms, increasing 35 per cent by projects and 26 per cent by rooms YOY compared to 2022.

Vietnam and Indonesia follow, with these three countries accounting for 46 per cent of the Asia-Pacific (excluding China) pipeline.

Cities with the highest growth are Bangkok (Thailand) hoteliermagazine.com

followed by Jakarta (Indonesia), Melbourne (Australia) and Kula Lumpur (Malaysia).

CHINA GROWTH RESUMES The re-opening of mainland China’s borders will affect the global travel industry as the Chinese are responsible for up to 40 per cent of travel in Asia-Pacific, Europe and beyond.

Lodging Econometrics reports construction pipeline at 3,659 projects/680,959 rooms, which is down one per cent and three per cent respectfully. However, while counts may be down, both domestic and international travel is gaining significant momentum, which is expected to continue through 2023 and 2024. Cities in China with the largest pipelines include Chengdu, Shanghai and Guangzhou.

BOLSTERED DEMAND AND RATES IN THE U.S. Hotel occupancy and operating fundamentals in the U.S. are returning to near pre-pandemic levels as recordlow unemployment, modest consumer debt and flexible work have driven demand and rates. Another catalyst for a strong U.S. travel season is a weaker U.S. dollar and 29 per cent increase in international air fares. Forecasters predict strong topline growth of 5.8 per cent for 2023 combined with healthy

operating profit and healthy demand.

Marriott (1,499), Hilton (1,436) and IHG (809) continue to dominate the U.S. construction project market.

The U.S. also had a recordhigh conversion pipeline of 1,079 properties. “In key gateway cities there is real opportunity to grow through conversions as they might take six to seven months to complete while new builds can take three to five years. They are a real growth opportunity in mature markets like the U.S., Europe and Asia,” adds Ford.

GROWTH IN LATIN AMERICA/CARIBBEAN While new construction pipeline grew two per cent by projects and three per cent in rooms in Latin America in 2023 to 549 projects/90,139 rooms, it is down three per cent and two per cent YOY. Top cities include Mexico City (Mexico), Riviera Maya (Mexico) and Lima (Peru).

Increasing flexible work patterns and group travel demand has driven continued growth for all-inclusive resorts in the Caribbean by 75 per cent in new construction in recent years.

Growth in Latin America continues to be driven by renovations and conversions which rose 22 per cent by projects. The luxury and premium markets dominated these renovations and conversions. ◆

SEPTEMBER 2023 | 29

No more

binders.

No more

books.

No more tasks

overlooked.

A smarter way to manage your hotel.

TRENDS

ISTOCKPHOTO.COM/WHYFRAMESTUDIO

T

he world of work has evolved dramatically in recent years, with the rise of digital nomads who have the freedom to work remotely while travelling the globe. A report from MBO Partners found nearly 17 million Americans identified as digital nomads, more than double the number from 2019, and they work in a variety of industries.

Globally the number of digital nomads, currently stands at more than 35 million (according to a report by Statista).

Countries and governments are helping this trend with more than 50 offering digital-nomad visas because these group of people are valuable, spending more money than short-stay tourists.

This new generation of professionals is also shaping the way hotels and other accommodations are adapting to meet their needs. So how can hotels appeal to digital nomads and generate increased revenue by leveraging communal spaces, hoteliermagazine.com

THE RISE OF DIGITAL NOMADS Hotels can maximize revenue and attract travelling

professionals by re-imagining how they do business

BY FRED BEAN

amenities, and event spaces through alternative distribution channels?

RE-IMAGINING COMMUNAL SPACES As the demand for remote workspaces increases, hotels can capitalize on this trend by transforming their communal

spaces into co-working areas. By investing in comfortable seating, highspeed Wi-Fi, and ample power outlets, hotels can create environments that cater to digital nomads who require dedicated spaces to work productively.

This approach not only attracts digital nomads to stay at the hotel but also SEPTEMBER 2023 | 31

MONETIZING EXISTING OFFERINGS Digital nomads often require access to professional facilities, such as meeting rooms, event spaces, and business centres. Hotels can monetize these spaces by offering them as bookable assets through alternative distribution channels such as eVenues and Daycation.

This enables hotels to tap into a new revenue stream by reaching digital nomads who may not be staying at the hotel but are in the area and seeking professional facilities. Offering flexible packages and pricing models will also make these spaces more appealing to digital nomads who may require them for short periods or on an ad-hoc basis.

COLLABORATION IS KEY To further appeal to digital nomads, hotels can collaborate with local coworking spaces, networking groups, and businesses to offer discounts, special events, and other exclusive perks. By fostering a sense of community and providing access to resources, hotels can 32 | SEPTEMBER 2023

create an environment that digital nomads will want to return to. In addition, these partnerships can help to drive foot traffic to the hotel, leading to increased revenue from non-guests who use hotel amenities or attend events on-site.

MARKETING THE HOTEL AS A DIGITAL-NOMAD HUB To effectively attract digital nomads, hotels must ensure their marketing efforts highlight the available amenities and co-working spaces. By promoting the hotel as a digital-nomad hub and showcasing the unique benefits it offers to this demographic, hotels can establish themselves as the go-to accommodation choice for remote workers. Utilizing social media and targeted online advertising, along with creating content relevant to digital nomads, will help hotels reach this audience and ultimately drive bookings.

According to recent statistics, this group of people contributes a global economic value of $787 billion per year.

The rise of digital nomads presents a unique opportunity for hotels to capitalize on this growing market segment. By re-imagining communal spaces, monetizing hotel amenities and

event spaces, collaborating with local businesses, and effectively marketing to this demographic, hotels can attract digital nomads and generate increased revenue. By staying ahead of the curve and adapting to the needs of this emerging group of travellers, hotels can maximize their long-term success in an ever-evolving industry. ◆ Fred Bean is the CEO of HotelPORT, a hospitality distribution solutions company. For more information visit hotelport.co

hoteliermagazine.com

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encourages them to spend more time on the property, which can lead to increased revenue from food and beverage sales.

OPERATIONS

Hoteliers are pursuing innovative sales and marketing strategies for a new era

BY ROBIN ROBERTS

ISTOCKPHOTO.COM/MARCHMEENA29

NOW

that travel is back in gear and the worst of the pandemic is in the rearview mirror, hotels are clamouring to steer heads into beds with innovative new sales and marketing strategies.

Of course, the road ahead is not all smooth: the industry continues to navigate other challenges, such as inflation, political unrest, and the longstanding labour shortage.

But, according to STR, the forecast is sunny, as “global occupancy is strong and growing,” with occupancy at 70.7 per cent at the start of the summer, close to the post-pandemic high of 70.8 per cent. As well, RevPAR is seeing year-over-year growth of 29.3 per cent, its highest since March 2020. In Canada, occupancy was at 62.6 per cent, up 4.2 per cent; ADR at $177.72, up 19.6 per cent, and RevPAR at $111.23, up 24.6 per cent. hoteliermagazine.com

SEPTEMBER 2023 | 33

ISTOCKPHOTO.COM/PETERSCHREIBER.MEDIA

To take advantage of the good news, hoteliers big and small, brand and independent are devising crafty new ways to stand out from the crowd.

PARTNER POWER Partnering or aligning with powerhouse promoters can give you a leg up when pushing your name front and centre. Toronto’s Chelsea Hotel is capitalizing on its strategic position as the official hotel of the CNE (Canadian National Exhibition), which is including the independent in the Exhibition’s marketing and advertising campaigns. “It’s those larger partnerships that help drive our brand awareness when we don’t have the higher-end budgets the bigger brands do,” says Desha Sampson, director of Marketing & e-Business for the Chelsea.

Jesse Nagle, Marketing manager for Travelodge Canada, agrees linking with a big name helps big time, but where the Chelsea rides the CNE wave and its heart-of-the-city locale, Travelodge capitalizes on its properties’ proximity to parks such as Banff, natural wonders such as Niagara Falls, as well as big and small cities across the country. “[Our campaigns] showcase our brand as the base camp for adventure, and the place to fuel up and face the day’s events,” he says. “And finding partners that can fill gaps in your existing strategy is really important.”

To that end, Travelodge taps into online news agencies with targeted audiences. “Not only are we able to share our brand messaging that way, but we’re able to target it directly to our key demographics who are highly engaged and interested in the type of travel and accommodation that Travelodge offers.”

Laura Pallotta, regional vice-president, Sales and Distribution, Canada, Marriott International, says partnerships with MLSE, Montreal Canadians, LIVE Nation and TIFF helps them attract new guests. “The power of our Marriott sales channels helps our B2B customers buy, and our customer-relationship-management tools provide our stakeholders with key information, such as account history and potential sales opportunities.”

34 | SEPTEMBER 2023

TAPPING INTO TECH Nagle says that, rather than relying on a specific ad set or medium to carry Travelodge’s message, its campaigns cast a wider net to include other platforms such as streaming audio services such as Apple Music and Spotify, as well as paid social media, and partnerships with other brands that share the same passion for exploration.

“Streaming and other audio companies have fantastic tools where you can get what basically would have been the equivalent of a radio ad out to a very specific demographic,” says Nagle. “The free versions run ads where we’ve put some initiatives, on top of paid social on Instagram, Facebook, et cetera. It’s a way to hone in and deliver our messaging to people who will be receptive to it.”

While Sampson agrees keeping on top of new tech is important, the Chelsea doesn’t necessarily jump on board instantly. “We monitor what is happening, and if we see an increase of guests booking through a certain channel or requests for information or reports, we’ll source the initiative and see where we can come into play,” acknowledging the challenges of a smaller budget that may price them out of certain initiatives.

“That said, we try to place ourselves in front of guests who are looking to travel to Toronto. That’s really the only way we can steal share from other hotels. We don’t try to capture guests, necessarily, in the inspirational stages where they’re researching where they want to travel. We leave that up to our destination-marketing companies like Destination Canada and Destination Toronto to attract those guests.

Once that guest has decided to travel to Toronto, whether it’s booking through an online travel agent or doing the research for Toronto, that’s where we try to serve our ads or have placement in organic listings. As the largest hotel in Canada, at 1,590 rooms, we have the space to cover a lot of different target audiences, whether it’s corporate, group, leisure, family or couples.”

hoteliermagazine.com

F&B From vegan to vegetarian to glutenfree to dairy-free, it can be a challenge to keep on top of changing dietary needs from a diverse travelling public.

James Cushinan, director of Food and beverage at the Chelsea Hotel, says the kitchen team cooks up a variety of options to accommodate.

“All the raw chicken used in the hotel is 100 per cent Halal, for instance,” he says. “In our Market Garden restaurant, we introduced some of our past favourites and our new ‘bowl’style offerings. In T Bar, we re-introduced our breakfast menu to cater directly to our guests’ feedback. Eggs Benedict, a staple for any hotel restaurant, avocado toast, and overnight oats are a few items we engineered to meet our guests’ needs.”

He says ongoing training ensures the team is on top of varying demands, not just in the restaurants, but during banquets and conferences. As an example, he cites the Chelsea’s partnership with Lavazza coffee company to provide a range of espresso-based drinks — and know-how. “It not only adds value to our guests’ experience, but also provides enhanced training opportunities for our team members.

Through the Lavazza training centre in Toronto, they can further develop their skills and expertise.”

Pallotta says Marriott’s F&B teams focus on healthy menus, including organic, sustainable, locally sourced ingredients as well as zero-proof alcohol cocktails to meet the increasing demand for creative mocktails.

OTA VS. DIRECT BOOKING Direct bookings drive direct dollars, but hotels recognize the value inherent in partnering with OTAs (online travel agencies).

Sampson says that, while the Chelsea is listed on Expedia and aligns with Aeroplan for rewards, discounting its rates “doesn’t line up with our rateparity strategy. We rely on our pricing structure to attract those who aren’t necessarily brand loyal or care about

hoteliermagazine.com

loyalty points. And I think our value-added services almost outweigh the points that guests might be receiving if they book with a bigger brand, and pricing.”

Pallotta says the key to luring the traveller to Marriott’s site is “constantly upgrading the functionality of our website and our Marriott Bonvoy app with video and photography that focuses on both the product and experience, and to ensure these platforms are dynamic, easy to navigate, and provide a seamless booking experience through functions such as flexible calendars to search by dates and price. We also provide best available rates and loyalty-member offers on Marriott-owned sites, as well as instant booking options for meetings and events through GroupSync, which we promote through marketing, social and PR efforts.”

Nagle says being part of the Wyndham rewards program has been “incredibly powerful for our brand,” even though the OTAs have their own rewards programs as well. He says travellers across the board ― not just an age group such as millennials ― but a more educated traveller, are very aware of the rewards programs and other ways to get more value out of their hotel stay.

And if it’s an OTA that helps drive a traveller to complete a booking, he says it’s still beneficial to Travelodge. He does acknowledge, however, that direct bookings are on the rise. “Some of the leading OTAs have recently announced historic drops in commission rates in order to be more competitive on this front, and to me that signals they’re fully aware of the gains direct booking in our industry are making.”

He hasn’t noticed a “new kind of traveller,” per se, but does note the necessity of having a presence on as many different platforms as possible to appeal to a broad range of traveller. “You do have to be bold and willing to try new things in this changing travel landscape,” he says. “We’ve done some work with social and athlete influencers online, which is all part and parcel with display advertising. The key is finding partners that mesh well with your brand. It’s one thing to convey your messaging across all these platforms, but if you’re not doing it with the right groups, you risk being lost in the shuffle.” ◆

SEPTEMBER 2023 | 35

DECOR & DESIGN

Flow and Flexibility As lines between business and leisure travel dissolve, guests need fluid spaces

BY DANIELLE SCHALK

W Toronto (above); Delta Hotels by Marriott Calgary In-Terminal (right); Le Centre Sheraton Montreal (below)

hoteliermagazine.com

BRANDON BARRE [W TORONTO]; EVAN DION [DELTA]

36 | SEPTEMBER 2023

AS

travel continues to recover and new patterns take root, we’re seeing the lines between business and leisure travel blur and evolve in new ways. And, these shifts in behaviour are inevitably influencing approaches to hotel design.

“The changing work and travel landscape has prompted hotels to adapt their design strategies,” explains Steven Gilbert, director, Procurement, Choice Hotels Canada.

“We continue to hear from our guests that they are blending their trip purpose — for example, adding days pre- and post-conference, looking for ways to include family and friends before or after a meeting, or simply extending their business travel to include a few days of leisure,” agrees Karyn Faryna, senior Interior Design manager, Global Design, U.S. & Canada, for Marriott International. “This impacts the way our hotels think about their physical spaces, amenities and programming as the guest makes that transition from the business trip to the leisure trip.”

And many of these shifts are focused on better leveraging public spaces. “As the desires of our guests shift, we’re now taking full advantage of every space the hotel has to offer,” says Faryna. “We’re seeing this shift of the public space being reactivated — people want to meet, they want to get together and collaborate, and we’re seeing these spaces come alive again.”

At the heart of this new approach are flexible spaces that don’t rigidly dictate a use case — becoming whatever the

ELAINE KILBURN

guest is seeking. “Traditional lobbies are being transformed into multi-functional areas that can serve as co-working spaces and relaxation areas,” Gilbert adds.

“We look at spaces differently than we did five years ago. In the past, a lobby was just a lobby, a lounge was just a lounge, and now we are seeing these spaces blend and shift to cater to travellers’ flexible needs while creating new opportunities for our hotel owners,” explains Faryna.

As an example, she points to the lobby of Delta Hotels Calgary Airport In-Terminal, which completed renovations in December 2022.

Adele Rankin, principal and global design lead, CHIL Interior Design — the design firm that completed the renovation, explains that the space is designed in such a way that you discover different layers of functionality depending on the lens you view it with.

“There’s something really great about a communal table for large parties, for social gatherings and for dining with your family, but at the same time, it is also such a conducive space for perching by yourself with your laptop,” she offers as an example. “If we looked at it from an F&B perspective, you’re designing these tables with purse hooks. And, at the same time, you’re designing these tables with outlets, charging stations and the appropriate lighting to ensure it offers the right working environment.”

And, as Kate Allen, founding principal of Calgary-based FRANK Architecture & Interiors, explains, guests are being drawn to spaces that can do it all. “Guests are looking for comfortable, flexible spaces where they can plug away at their work or take a virtual meeting,” she explains. “Serviced lobby bars, lounges and cafés are very popular for the working traveller, because they can multi-task; drink their espresso and tackle their inbox at the same time. Rather than being isolated in a private workspace, travellers want to feel connected to their surroundings while they work and are seeking spaces that are welcoming, warm and hip.”

Rankin notes that brands, such as Delta Hotels, that count business travellers among their key demographics/ psychographics, are among those most influenced by guests’ desire for spaces that flex to fit their mutable needs.

And, the Delta brand has been shifting to meet this demand.

“There has been some evolution there on accommodating that [desire for] flexibility,” Rankin observes, pointing to another recent renovation done at Delta Hotels Saskatoon Downtown.

“The lobby and coffee shop, and the positioning of the restaurant is very transparent — very much [communicating], ‘whatever you need, it’s here for you.’”

This was achieved using “space planning and screening, [utilizing] a lot of millwork screens that were put in to give a sense of privacy, but also [maintain] a quite a clear sense of transparency,” Rankin shares.

This idea of creating a variety of zones and semi-private nooks within a larger open space can also be seen in Sheraton Hotels & Resorts’ new brand identity. Newly renovated Sheraton properties — including Sheraton Gateway Hotel at Toronto’s Pearson International Airport, Sheraton Centre Toronto Hotel, and Le Centre Sheraton Montreal Hotel — now feature signature design elements such as communal tables,

tech-enabled studios and soundproofed booths.

As Allen notes, this strategy can also be leveraged to create moments of discovery for travellers. “We try to include zones within our hotels, which may be unexpected and evoke a sense of delight when stumbled upon. These areas may include libraries, lounges, and intimate seating areas,” she explains.

“We see these zones used for solitude, a quiet space for a phone call/virtual meeting, or for small groupings of corporate travellers in need of a collaborative space to meet or strategize.”

When it comes to the guestrooms, Rankin notes “You don’t want to dictate to people how they should use the room.”

However, there is a limit to the degree of flexibility you can accommodate within the constraints of these spaces. “But you absolutely can prioritize technology,” she explains. “We’ve [also] been doing a lot of work with the brands, as well as with our furniture manufacturers, to ensure that the old-fashioned idea of ‘the desk’ now becomes a completely flexible zone…

The challenge of that [is ensuring] we’re really working with the right shapes; the right kind of chairs and ergonomics that support that; and of course, the right aesthetic.”

This furniture is also being made lighter and more movable to allow guests greater flexibility. “Guests get turned off when a space is dictated towards them…so we can’t make that furniture too clunky that they can’t move it around,” says Rankin.

As an example, she points to the King Rooms at The Dorian, an Autograph Collection hotel in Calgary. “We decided to forego a chair and actually did an L-shaped sofa that curves around the [small] dining table,” Rankin explains.

“We did so many studies on how heavy that dining table should be, because we knew that it was going to be moving the length of the sofa. Sometimes you’re going to need it in front of you sometimes you want to get it out of your way.”

On the technology front, Allen notes, “With more guests taking virtual meetings, we need to consider the technology provided in the rooms. The guestroom is now often being used for virtual meetings, and as designers we are considering the site lines, the backdrop and how our guests are being framed by their surroundings on virtual meetings.”

“Some hotels are also providing in-room amenities like whiteboards, video conferencing equipment and smarttechnology interfaces to enhance productivity,” adds Gilbert.

“Each hotel is such an individual challenge to take on, because you’re taking into consideration what’s around it, who’s visiting and what the psychographic are for that traveller,” Rankin says. “But intuitive design is probably what we’re trying our very best to create for each space because, ultimately, if the guest feels that they don’t have to work hard to massage the space to [suit] their purposes, then [there’s] a level of comfort achieved that equates to the level of luxury.” ◆

hoteliermagazine.com Sheraton Centre Toronto Hotel Studio

SEPTEMBER 2023 | 37

F&B

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38 | SEPTEMBER 2023

The New R

ROOM S

Adaptability and efficiency today’s in-room din

BY DANIELLE

room-service operations have a set staffing model, if the team has an especially busy period, they can draw extra staff from the property’s events kitchen to supplement the team.

Leveraging technology, such as the Marriott loyalty app, also helps streamline operations.

Dighe explains that through the app, guests are provided with detailed and up-to-date information about menu items and how customization can be facilitated to accommodate tastes and dietary preferences. Because users can browse menus before check-in and order meals ahead of time, use of the app can also help in managing staffing and prep levels.

Acknowledging the efficiency technology can bring to these operations, Bruchez notes the team at Germain Hotels has been looking into introducing more technology to support its in-room dining operations. “Using this technology can bring us another option [for guests to] place an order and [for us] to be more efficient,” he says.

This is especially valuable in this age of increased hoteliermagazine.com

FREEPIK.COM

These days, operating a thriving in-room dining service doesn’t come easily. There are a number of factors shaping this staple full-service offering, including supply and labour management, as well as competition from local foodservice and third-party delivery offerings.

“The new reality is, it’s harder to guarantee 24hour, seven-days a week room service,” shares Jacky Bruchez, national director of Food and Beverage for Germain Hotels. And, while Germain Hotels doesn’t advertise its in-room dining as a 24-hour service, he notes that its full-service hotels, “are always going to try to be sure there’s an option to accommodate guests upon request.”

“Most people will order [room service] at similar time, so they have a similar hours during the day,” says Buchez. He reports the usual peaks are around 8:30 a.m. and between 7:30 p.m. and 8 p.m. That means the team’s staffing and prep levels can be planned in accordance with this pattern.

However, demand isn’t always so neat and predictable.

For the hotels of the Parq Vancouver casino resort, Kunal Dighe, executive chef at JW Marriott Parq Vancouver and the DOUGLAS, an Autograph Collection hotel, highlights breakfast as the busiest time for roomservice, “because everyone wants their breakfast on time.” But, demand for the other key dayparts hinges heavily on factors such as the weather and the events taking place on site.

And, due to these fluctuations, it can be challenging to efficiently manage in-room dining operations.

JW Marriott Parq Vancouver and the DOUGLAS place a focus on sustainable operations, so limiting food waste is topof-mind for chef Dighe. “Everything is very communicative,” he says of his strategy for managing food supplies. “We check our occupancy levels and plan accordingly.” This also includes considering how many of those guests are attending conferences that have meals included.

The in-room dining menus are also designed to be complementary to the property’s events menus by making use of many of the same ingredients.

And, when it comes to staffing, Dighe notes that while

SPECIALTY EXPERIENCE During the era of pandemic restrictions, Germain Hotels had rolled out package offerings centred on in-room dining experiences.

For example, at Le Germain Hotel Toronto Maple Leaf Square, guests can indulge in an ‘In-Room Gastronomy Package,’ which features a four-course meal for two, curated by Bar Le Germain’s chef Julius Murdhani, served in the comfort of their room. The package also includes a bottle of wine selected to pair with the meal, as well as breakfast in bed for two.

On a slightly smaller scale, Alt Hotel St. John’s offers a ‘Romance Package’ that features a one-night stay, a box of chocolates, a bottle of sparkling wine and breakfast in bed from the hotel’s Terre Café.

Reality of

SERVICE

y are keys to success for ning operations

E SCHALK

competition because, during peak hours, if guests can’t get through to place their order right away, “they’re just going to find an alternative,” Bruchez explains. “And, the thing is, there are so many alternatives. So, if you want to capture as much [business] as possible, you have to make sure that it’s easy for [guests].”

“One thing that’s very different, if we compare now to, say, 10 or 20 years ago, is that there’s much more competition,” Bruchez adds. “It’s just so much easier [for guests] to get food from pretty much any restaurant because of DoorDash, UberEats and SkipTheDishes.”

And, because of the prevalence of these services, Buches notes, “You’re competing against [all the local restaurants] in terms of pricing, but also in terms of [menu] diversity.”

This means it’s more important than ever to clearly understand what guests are looking for when dining in-room vital to a program’s success.

For Dighe’s luxury-resort guests, “People gravitate towards hoteliermagazine.com

luxury comfort food these days,” he notes. “One of the biggest top-sellers we have right now is a butter chicken. We [also] have seafood fried rice and a lobster mac and cheese.”

And, as you move beyond dinner hours, Dighe says, “You won’t be surprised [to hear], overnight, our most popular [item] is the chicken fingers and fries.”

Made in-house, the chicken is brined and marinated to create a more elevated take on the late-night comfort food, which Dighe notes usually sells between 200 and 300 orders per month.

“Usually, people who are looking at room service want to have an easy night in — they want to relax and have some comfort food,” Bruchez explains, pointing to familiar items such as Caesar salad, burgers and club sandwiches.

“The only exception [to this] is when they’re booking a romantic night, and in that case, they’re usually going [to book it] as a package,” he adds (see sidebar).

However, Dighe notes that health, nutrition and dietary preferences are also key considerations for many of his hotels’ guests. This not only means offering a range of healthconscious menu items, but providing detailed information on the room-service menus.

As he notes, “[Guests] are very aware of what exactly they want. For example, they’re asking for wild salmon or organic vegetables.” As a result, it is important that menus reflect this desire for responsible, sustainable and healthful offerings.

This is, perhaps, reflected most in breakfast orders. “Our most popular item on the menu right now is avocado toast,” shares Dighe. “Then, as the second item, we have the eggwhite omelette.”

When it comes right down to it, convenience for guests lies at the core of any in-room dining operation’s success. So, Bruchez explains, the most important piece of the puzzle is for guests to be able to easily find and access the room service menu. Menu offerings, ease of ordering and quick turn around all come after.◆ SEPTEMBER 2023 | 39

EDITORIAL TRENDS

INTELLIG INNOVATI

AI has moved into utility mode for hotels

BY DIEGO GOMILA

A

rtificial Intelligence (AI) has been steadily weaving its way through digital marketing for some time now, from analytics and measurement to chatbots. But while there’s been plenty of excitement around generative AI and ChatGPT, AI has already moved into the wider market.

ChatGPT is on everyone’s lips at the moment and marketing strategists are already using it in many different ways, from research on certain topics, audience insights and questionnaires, to creating a client pitch. The results may not necessarily be innovative or original, but they’re helping to kickstart the ideas process. The same applies to different forms of digital marketing and we are seeing how the travel industry is applying AI across many disciplines.

SEO continues to be a key marketing tactic for travel businesses and comprehensive travel SEO touches on a wide range of different tactics and strategies. AI is helping SEOs tackle some of the industry’s biggest challenges.

SEO takes time, a great deal of resources and consistent effort. With Google’s algorithms continually updating, the job is never really finished. AI is being used to scale growth and outrank competitors faster and hotels are using AI to automate keyword research and provide analytics. Content creation is the pillar of SEO, especially as Google gets better 40 | SEPTEMBER 2023

at understanding language. High-quality content creation that ranks well takes time, but ChatGPT can create content at scale and hotels are using this to their advantage.

Content tools generate metatags, sentences, full paragraphs and entire articles with just a few inputs. With AI copywriting tools, writers can multiply their content production and draft content in a fraction of the time. We know that the results are not perfect — yet — but building upon AI-generated content using tools such as CopyAI saves time and scales content creation more quickly.

Helping SEOs generate copy for landing pages is one thing, but blog posts and metatags, are being driven by AI-powered writing tools to help marketers with ad copy, social posts and other types of content.

Producing original content on a daily or weekly basis is an essential part of an effective SEO strategy. Affiliate marketers are also exploring how AI can help make life easier and more effective. An effective affiliate marketer requires communication skills, data analysis and sales knowledge and AI is helping with these tasks, freeing up affiliate marketers to focus on strategic business goals. By analyzing large data sets to find trends, AI is improving the effectiveness of affiliatemarketing campaigns, boosting conversions by personalizing hoteliermagazine.com

offers and ads for each individual user. For example, when a user has shown interest in a hotel ad, AI can show users similar or related hotels they may be interested in. Affiliate marketers use this information to create better-targeted marketing campaigns.

Hospitality marketing is a resource-heavy task. Data analysis, content creation, SEO and new-lead generation are all time-consuming. AI is automating these repetitive tasks, freeing up teams to focus on strategy. For example, if you had a database of potential customers, reviewing each record and deciding whether or not they’re a good fit for you takes time.

Driven by tools such as Gainsight, a B2B sales-prospecting platform, AI will do the job in a fraction of the time, offering recommendations based on your criteria. Similarly, email marketing tools use AI to set up specific emails based on customer behaviour.

Affiliate marketing keeps changing, so tactics that worked yesterday may not work tomorrow. AI is being used to identify new opportunities for affiliate products and services. Helping hoteliers find innovative ways to reach their target audience.

We use AI to analyze relationships and generate high-quality connections with potential partners and new leads. AI provides information on these prospective customers and hoteliermagazine.com

The four main types of AI useful to affiliate marketing are: 1. Machine learning (ML) - a type of AI that can learn from data and improve its performance over time 2. Natural language processing (NLP) - artificial intelligence that understands human language 3. Predictive analytics - AI that examines and interprets historical data 4. Computer vision - analyzing images and videos

ISTOCK/ T:ISMAGILOV

GENT ION

possible leads that may evolve into sales opportunities.

The goals for affiliate campaigns vary depending on the type of hospitality business, but the process is generally the same.

Once you’ve decided on an offer, start testing different landing pages. By optimizing your campaign, you’ll be able to generate more sales for your business.

AI is changing the way marketing perates. It streamlines repetitive resource heavy tasks, identifies new opportunities, and drives sales. Just the same as the supply of power and water is to the hotel, AI is becoming the next utility for hotel marketers. ◆

Diego Gomila is the CEO of Affilired.

For more information visit affilired.com

SEPTEMBER 2023 | 41

TECHNOLOGY

CHECK IT OUT

Momentum for mobile check-in continues to build in the hotel sector

BY NICOLE DI TOMASSO

FOR YEARS, TRAVELLERS

have relied on their mobile devices to check in for a flight and not surprisingly, travellers want this same convenience when checking into a hotel.

It’s one of the many pieces of technology transforming the hospitality industry and it’s here to stay.

“Mobile check-in technology has been around for a while, but COVID exacerbated the need for a contactless solution,” says Chaz Farris, senior account executive and market head – North America at RoomRaccoon, a hotel-management software for independent hoteliers. “Guests are looking for simplistic ways to arrive at hotels, but that process can look different depending on how a hotel operates.” hoteliermagazine.com

In a recent study entitled Hospitality in 2025: Automated, Intelligent…and more Personal, Skift and Oracle Hospitality surveyed more than 5,000 consumers about what they expect from the next phase of hotel technology and services and more than 600 hoteliers about what they’re most likely to implement. Conducted across nine global markets, the survey revealed that 53.6 per cent of travellers would like to see contactless check-in/out permanently adopted by 2025. On the hotel side, more than 60 per cent of executives worldwide said that “a fully contactless experience for all basic hotel transactions, including check-in/out, food and beverage, room keys, et cetera” would be the most widely adopted in the next three years. Generally speaking, 34.4 per cent of executives said they’re already heavily invested in contactless technology, while another 26.6 per cent in early stages.

Only 3.7 per cent said they don’t plan to invest in this technology.

Marriott, Hilton and Accor are

a few early adopters of the mobile check-in process, but the option was limited to members of their loyalty programs. Marriott has offered mobile check-in through its Marriott Bonvoy app since 2013, and has now expanded the offering beyond its loyalty program.

Hilton began giving members the option through the Hilton Honors app in 2015 and by 2019 had rolled out the technology to approximately 4,000 properties.

And, Accor deployed digital checkin at approximately 1,000 hotels by the end of 2014 for all loyalty card or subscription-card holders, as well as guests who booked directly through Accor via brand websites, mobile apps and direct phone with the hotel.

Taking it one step further, Accor began rolling out a digital-key solution called Accor Key to all new hotels opening in 2021, in collaboration with StayMyWay, to streamline the check-in process further and reduce the amount of plastic used for traditional key SEPTEMBER 2023 | 43

cards. Guests can access the keyless door entry solution via Accor’s digital key app using their smartphone for entry into guestrooms, meeting rooms and floor access via lifts. The company is aiming to equip at least 50 per cent of all rooms across its network by 2026.

That same year, IHG Hotels & Resorts

made digital check-in available through mobile devices, computers and tablets at more than 3,000 properties across Canada and the U.S. Built on the cloudbased IHG Concerto platform, guests receive a notification with the option to check-in from their phone or the IHG App. Once the process is completed, guests go to a designated lobby area, show their identification and pick up their room key.

“Digital check-in is a crucial part of the Stay with Confidence program,” says John Weiss, VP, Guest Products and Platforms, IHG Hotels & Resorts in a release. “Building this capacity on our IHG Concerto platform allowed us to work quickly to deliver a product our guests want. It also creates an integrated experience for our hotel colleagues and helps support our owners through recovery. This is beneficial to our hotel teams because it minimizes transaction

time and complexity, giving them more time to engage guests on-property in other meaningful ways.”

On a smaller scale, Fantasyland Hotel in Edmonton announced its partnership with INTELITY in July 2023 to provide guests with mobile check-in/out and mobile keys, while streamlining the day-to-day operations for staff through GEMS – INTELITY’s suite of stafffacing tools. By using the property’s mobile app and INTELITY’s BLE Lock integration with ASSA ABLOY, guests can bypass the front desk and securely access their rooms.

“At Fantasyland Hotel, our goal is to create a fun guest experience for more than just the weekend,” says Jay Vashi, director of Operations at Fantasyland Hotel in a release. “We strive to make our guests feel at home, and today

Fully Loaded In 2021, Accor unveiled its first pilot property in Northern Europe to be equipped with a 100 per cent digital ecosystem. The ibis Styles London Gloucester Road combines the following technologies: online checkin and secure payment with Pay By Link; the use of Accor Key to access guestrooms and other areas of the hotel; digital catering services with Click Pay Collect; and contact

that means bringing the convenience of technology to the guest’s stay. Our attention to detail doesn’t stop with our themed rooms, but continues through to our digital guest journey, allowing customers to access their rooms and communicate with staff on their terms.”

On the supply side, RoomRaccon recently integrated with Nuki to enhance and modernize hotel check-ins. The two-way integration will enable guests to check-in and access their room through their smartphone with automated access codes shared in the online check-in.

“In most cases, guests aren’t required to download any apps. The codes are embedded into a pre-arrival email and the guest simply clicks a URL to access the code and is re-directed to a web browser,” says Farris. “Nuki is an out-ofthe box solution where hoteliers receive the software and hardware together, whereas other providers might need you to outsource the hardware.”

Farris says RoomRaccon has roughly 80 customers using some kind of remote-access app. In addition to Nuki, its full list of lock integrations includes RemoteLock, Flexipass, SALTO Systems, SALTO KS, dormakaba and ASSA ABLOY. He says most North American customers pay between $100 and $300 per lock, including installation.

“Frog Point Inn is a newly renovated six-room property using a contactless model including booking, check-in and check-out. We do not have a front desk,” says Shane Molson, owner of Frog Point Inn in Courtright, Ont. “Mobile checkin from RoomRaccoon integrated with RemoteLock keyless entry is a perfect solution that saves us administrative costs and effort. Guests also enjoy the flexibility, ease and convenience of gaining secure access to their rooms no matter when they arrive.”

“The main challenge is knowing what hardware is needed for the locks and getting them installed because there’s so many models and manufacturers,” says Farris. “It’s important for hoteliers to know exactly what they need in order to secure the best available option for their property and provide a seamless checkin experience.” ◆

of hotel teams throughout a stay via WhatsApp.

44 | SEPTEMBER 2023

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A DRIVING FORCE For Bai Bunpanya leading with care is the only way to succeed

BY ROSANNA CAIRA

T

46 | SEPTEMBER 2023

QUICK QUIPS Service Philosophy I want to re-define or develop a new service culture for luxury service ― where humanity, dignity and luxury co-exist in a way that is uplifting for all stakeholders. We will be service-obsessed but not subservient. ”

Advice for hoteliers?

Challenge the status quo. Managing with an iron fist will no longer be effective or sustainable.

What do you attribute your success to?

My upbringing, Thai cultural roots and values.

Courtesy, respect and politeness are part of our culture. Always be considerate of others’ well-being and emotions.

hoteliermagazine.com

HUYEE CHAN

he role of GM may be all encompassing, but for Bai Bunpanya, GM of Toronto’s King Blue Hotel, his mission is laser focused: “Foster an environment where the best aspects of humanity can thrive. The goal is to create a workplace where kindness, compassion and empathy become the driving force behind decisions, and become part of the fabric of our culture and the basis for how we treat our guests and, more importantly, our employees.”

The native of Bangkok, Thailand, is committed to the development of those around him through transparency and empowerment.

Bunpanya’s love of hospitality was imbued in him from a young age. “Thai people have a reputation of being very hospitable. I’ve learned to be welcoming, accepting, respectful and hospitable towards everyone I come across. Growing up in a heavily influenced Buddhist society has taught me to strive to be sincere, genuine, humble and develop a strong belief in the concept of karma.”

It was during his time at York University, where he studied Political Science, that Bunpanya had his first exposure to hospitality through a part-time job as a server/bartender. “I fell in love with being able to make human connections and make an immediate positive impact in people’s lives (as opposed to the red-tape in politics).”

Upon graduation, he worked as a server at the Delta Hotel across the street from Seneca College where he continued his studies in Hospitality Management. “I worked my way up and became a GM of the hotel shortly after graduation. I had a goal of becoming a hotel GM by the age of 30, and within five years of working my first hotel job as a server, I became a GM at the age of 27.”

These days Bunpanya leads a team of 100 at the 118-room King Blue Hotel, situated in Toronto’s Entertainment district. He’s currently immersed in re-branding the Northland Properties-owned hotel into a Sutton Place Hotel.

As part of the re-branding, the hotel lobby is undergoing renovations that will see the addition of a Mediterranean restaurant, Abrielle, operated by Ascari Hospitality Group. Abrielle will showcase vegetable-forward plates from sun-kissed and sea-sprayed regions with bright flavours as well as outstanding cocktails. The hotel’s almost-new guestrooms are also receiving cosmetic updates ahead of the re-branding, scheduled for late 2023.

Bunpanya looks forward to making the Sutton Place Hotel a timeless, prominent figure on Toronto’s hotel landscape. “I want the brand to offer refined service that is approachable and inclusive ― a place where guests and employees alike feel comfortable in their own skin; that thrives on genuine human connection, not trendy, hip, pretentious, or patronizing; a place free of judgement where nobody has to try to fit in to be treated like a human being.” ◆

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E42. AT YOUR SERVICE CARLOS NG FAIRMONT ROYAL YORK

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E41. LEADING WITH CARE TIM REARDON GENERAL MANAGER, SHERATON CENTRE HOTEL TORONTO

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