Entrepreneurial Success in Today’s Ridiculously Ugly Hotel Environment
Five strategical points that will lead to success: location, product, management, marketing and financial structure.
There are over 450 hotels in San Diego County, representing over 57,000 rooms and suites. Chains and institutions own most of the larger hotels, but small business operators own many. It takes an entrepreneurial spirit as well as a willingness to take financial risk to be successful in this game. After all, hotel performance has ups and downs. The capital markets virtually walk away from the hotel market when times are tough…and tough is an understatement today.
This year, at each lodging conference, analysts talk about the commoditization of the industry due to the transparency of rapidly declining rates, difficulty in obtaining any kind of financing and the inability to determine where the bottom of this cycle is. Generally, the conversations have turned rather pessimistic for the short term. Hence, is it a good time to get in the game? My typically contrarian answer is yes. San Diego’s lodging industry is resilient and growing, and with the proper ingredients, success is very possible.
Today, the supporting team is more important than ever before. The pace of change in technology alone keeps most entrepreneurs close to a technology advisor. Further, investors, partners and lenders are often required and these individuals can make or break a business plan. The quality of and relationship with key employees and team members is paramount to the success of a hotel. One entrepreneur cannot optimize revenues and expenses, go out and make sales calls and handle the financial end of the business.
Found: Affordable Family Vacations at San Diego’s Hilton Garden Inn
Families, especially families with more than two children, need not surrender their Summer (or any season for that matter) vacation to the current effects of the recession. Deals, diversion, and destinations are calling families of all sizes to San Diego.
Why San Diego? “America’s Finest City” has often been voted the number one destination in the world for it’s attractions, arts, beaches, climate, gaming (including the Del Mar Racetrack), sports, restaurants, retail shops, wineries and more. San Diego offers a phenomenal year-round experience. San Diegans’ fun, friendly, yet laid back attitudes welcome visitors. The Hilton Garden Inn and The Homewood Suites, San Diego/ Del Mar, especially aim to provide families with a fantastic and valuable visit to San Diego.
The Homewood Suites by Hilton, Del Mar wants to be your, “home away from home.” To that end, families and guests will receive an all inclusive stay in a suite that includes a kitchen and two TVs in the suite, free breakfast, free internet, and free dinner Monday through Thursday. The Hilton Garden Inn, San Diego/ Del Mar is founded upon the five pillars of deep sleep, eat well, stay fit, work smart, and treat yourself.
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Why Hilton Garden Inn and San Diego?
First, Hilton Garden Inn (HGI) was ranked number one again by J.D. Powers (2009) for midscale full-service hotels.
Second, San Diego has often been voted the number one destination in the world and here is why: attractions, arts, beaches, climate, gaming including the Del Mar Racetrack, sports, restaurants, retail shops, wineries and more. San Diego is built for a phenomenal year around experience.
It’s Not About “W”
No, we’re not talking about former President Bush. The “W” hotel is the talk du jour as they basically handed the keys back to their lender this past week. Is this the first of many to come? While the underlying market value of hotels typically declines only 20-30 percent during a recession, there will be some distressed assets that will trade at an even deeper discount. In the case of the “W,” the owners, Sunstone, made a strategic decision. They are a public company with a non-recourse loan, and the value of the asset as well as the cash flow no longer footed to the debt on the property. Any hotel purchased or refinanced in the “go-go” years of 2006 and 2007 might find themselves in a similar loan default.
What is the proximate cause of the decline in values and subsequent defaults? One is the hotel finance market and the other is declining net income (NOI). (more…)
Leading Producers of Italy’s Most Elegant Wine Come to Carmel Valley
SAN DIEGO, CA- The family owned and operated Beni di Batasiolo Winery and Bistro 39 at the Hilton Garden Inn, San Diego/ Del Mar are teaming up for a Winemaker’s Dinner on June 13, 2009. The evening begins at 6:30 and will feature a five course dinner paired with five fine wines from the Piemonte and Veneto region of Italy.
The Dogliani family, owners of Beni di Batasiolo, is the leading producer of Italy’s most elegant wine, Barolo. With four generations of experience in the Piemonte area, the Dogliani family has mastered the DOC and DOCG wines that are exclusive to the Northwest region of Italy.
“We at Batasiolo are honored to experience some of our favorite wines along with the fantastic foods of Chef DiFolco,” said Stefano Poggi, the West Coast Representative for the Dogliani family. “We look forward to a fun and unique evening where we can all take a trip from the fine living of Carmel Valley to the fine wine-ing of Langhe Hills.”
“The evening will be comfortable and interactive with a great speaker who knows each of the featured wines personally,” said Larry DiFolco, Executive Chef at Bistro 39. “I’ll be cooking with the same wines being served, which will ensure a nice bridge of flavors.”
The first course features a Pinot Grigio Vento Caposaldo ’07 paired with seared scallops with toasted pine nuts and parsley sauce. The Pinot Grigio Caposaldo, a wine created in honor of the Roman Empire’s most famous racing horse, is a wine with delicate white fruit and apple aromas offset by notes of acacia blossoms and almonds.
The second course pairs the Dolcetto d’Alba DOC ’07 with a grilled Portobello, mozzarella and tomato pizza. The award winning, light and fruity red wine pairs nicely with the fresh flavors of the pizza, and is a great way to start the ascent into bigger red wines.
Course number three combines the smooth, extensively aged Batasiolo Barbera d’Alba, “Sovrana” with a roasted chicken thigh stuffed with sweet sausage and parmesan cheese.
The stars of the show come out in the fourth course, as the Barolo DOCG ’04 is paired with Osso Bucco. The veal shank melts off the bone and into your mouth, as the Barolo creates an ethereal, dry and powerful mouth feel.
Finally, course number five features the Moscato d’Asti DOCG ’08, a dessert wine which is more fruity than sweet, alongside a Ricotta Cheesecake with roasted pears.
Call Bistro 39 at the Hilton Garden Inn, San Diego/ Del Mar (858) 720-9500 for reservations. The five course winemaker’s dinner costs $39.95 (plus tax and tip) per person. Or, buy tickets online.
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What: Winemaker’s Dinner When: June 13, 2009 at 6:30pm Where: Bistro 39 at the Hilton Garden Inn, San Diego/ Del Mar Featuring:
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Dishing it Up: Bistro 39 pulls off the hotel restaurant concept
Hotel restaurants are usually not top of the list, but Bistro 39 pulls it off.
We Have Hit Bottom
“We must live with the consequences of our rate strategies for a long time because when the market turns, and it will, those who sold value will win... Gaining market share and differentiating yourself from your peers is paramount to winning in the long run.”
By Robert A. Rauch, CHA
Economic uncertainty, slowing travel demand, shorter length of stays, shorter booking window, increased distribution channels, shift in buying behavior, low average rates, new supply; take a deep breath…it’s not so bad. That’s right. We have hit bottom. And while we may stay at the bottom for awhile, it will not get worse. The housing market is showing signs that it may have hit bottom and the Dow Jones Industrial average is back up to October, 2008 levels. The biggest challenge that we need to overcome is that revenues, profits and values have been “reset.”
Taste of Ramona Valley is a “Home Run”
More than 100 friends and guests attended “A Taste of Ramona Valley,” an evening of wine tasting presented by the Hilton Garden Inn, San Diego/ Del Mar and five Ramona Valley Boutique Wineries.
Scaredy Cat Ranch, Chuparosa Vineyards, Edwards Vienyard and Cellars, Kohill Winery and Woof ‘n Rose Winery each brought their estate grown, produced and bottled wines, that have yet to be commercially released. It was an opportunity for all to sample local wines from a region experiencing an exciting renaissance of an old tradition. Bob Rauch, Owner of the Hilton Garden Inn, San Diego/ Del Mar, said the evening was a “home run,” and is looking for more opportunities to partner with local businesses to bring hotel guests and locals quality food and wines at a great price.
Take a look at some snap-shots of the evening.
Homewood Suites’s Ann Marie Kimble Awarded General Manager of the Year
Ann Marie Kimble, General Manager of the Homewood Suites, San Diego/ Del Mar, was recently named the 2008 Outstanding General Manager of the Year in a medium Sized property. The CH&LA Stars of the Industry Awards recognized Kimble for her excellent leadership and management skills, personalized service, warmth, and customer and staff loyalty.
Kimble is the “go to” person in our organization. She has been at the forefront for getting this hotel nominated and awarded virtually every possible contest that Hilton Corporation has to offer. The Homewood Suites San Diego/Del Mar has a “Spirit of Pride Winner” (Chris Campbell) as well as “2007 Engineering Team of the Year.” It has also been awarded the “2007 Merit Award Winner.” Moreover, her hotel has been in the top 14 of all Homewood Suites by Hilton hotels in SALT scores (customer loyalty). In her career she has received numerous “Outstandings” on Quality Assurance Inspections, the most recent scoring a 97.5% (July 2008).
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