Unmistaken Identity

Today’s business model holds that the brand is supreme, and nowhere is this maxim more applicable than in the hospitality industry. “The hotel companies have done their research. They know consumer expectation has increased,” says Bjorn Hanson, global hospitality leader for PricewaterhouseCoopers in New York City. “And as a result of the accelerating demand, the major brands are offering more options in terms of facilities and services.”

Indeed, the jockeying for position among brands vying for consumer attention -- and loyalty -- has intensified to an all-out frenzy. Hotel chains are revamping their properties, bringing in big-name chefs, and rolling out signature spas and cutting-edge technology in an effort to increase market share.

To shed light on the unfolding battle of the brands, M&C asked senior executives at six major chains -- representing Embassy Suites, Four Points by Sheraton, Radisson Hotels & Resorts, Regent Hotels & Resorts, Renaissance Hotels & Resorts, and Wyndham Hotels and Resorts -- for insight into how they are reinvigorating their product and what it means to planners. What follows is a focus on the burgeoning upscale segment and an advance look at new brands.

Airy atrium:
The Embassy Suites
New York

Embassy Suites
www.embassysuites.com 
Portfolio: 186 in the United States, Canada and Latin America
Opening in 2007: Anchorage, Alaska; Fort Worth, Texas; Valencia, Calif.; Lima, Peru; Montreal
In the pipeline: Atlanta; Birmingham, Ala.; New Orleans; Valencia, Venezuela

In an industry where every player takes great pains to point out just how trendy and cutting edge it is, Embassy Suites is a breath of fresh air. “We don’t own sophistication, and we are not edgy,” says John Lee, vice president of marketing for the brand, part of Beverly Hills, Calif.-based Hilton Hotels Corp. “Our brand personality is warm, easy to do business with and fun. That’s what separates us from other chains.”

When the inaugural Embassy Suites property opened back in 1984, it became the industry’s first upscale, all-suite hotel brand. Today, Embassy Suites has grown beyond its suburban roots and is bent on upping its profile, and Hilton has put enough muscle behind the brand -- nearly $600 million in capital improvements -- to catapult it into the major leagues.

In the past four years, Embassy Suites has moved into major downtown districts in Atlanta, Chicago, New York City and Washington, D.C., with plans to extend beyond U.S. borders. “Our near-term focus is creating critical mass in Canada, Mexico, and South and Central America,” says Lee, who adds there are 28 hotels in the pipeline. “As a brand,” he notes, “we want to have 300 hotels by 2010.”

According to Lee, Embassy Suites is targeting the business traveler and meetings of 250 or fewer. “This is a group size that, if they go to a larger convention hotel with a ton of meeting space, they don’t feel that important,” he says. “At an Embassy Suites, though, they probably are the only in-house meeting, and they get full management attention.”

The brand’s signature feature always has been its singular glass atrium, filled with lots of leafy, green plants, running water and natural light. A slew of new offerings are part of Embassy Suites’ revamped brand standards, which include complimentary high-speed Internet access, a 24-hour fitness center, a daily newspaper, an in-room coffee brewer, complimentary cooked-to-order breakfast and, brand new to the roster, the
upscale Bloom body-care product line as a standard in-room amenity. And then there are the added touches, such as the nightly manager’s reception, a concept widely practiced by boutique brands such as San Francisco-based Kimpton Hotels.

Embassy Suites also is betting its front-line employees will make an impression. “The hotel uniform hasn’t changed in 75 years,” notes Lee. “We thought it was time to brand ours. It’s our way of standing out in a category we created, where we believe we are still the only player.”

Four Points by Sheraton
www.fourpoints.com
Portfolio: 125 in 25 countries
Opening in 2007: Philadelphia; Savannah, Ga.; Dubai, United Arab Emirates; Shanghai, China
In the pipeline: Houston, Argentina, Beijing, Switzerland

White Plains, N.Y.-based Starwood Hotels & Resorts Worldwide has completely repositioned its Four Points brand, beginning with a new logo and fresh architectural and interior designs. The revamp extends to signature in-room amenities and dining options.

Over the past five years, Starwood systematically culled 60 percent of hotels from the brand’s portfolio. Moving forward, only new build and newly renovated properties that meet the new brand standards will be allowed to carry the Four Points by Sheraton flag. “We wanted a portfolio of quality, and we have made a strong commitment to get the right platform out there,” says Sandy Swider, vice president, Four Points by Sheraton worldwide.

“Honest and uncomplicated comfort” is the brand’s new mantra, adds Swider. All hotels feature complimentary in-room bottled water and high-speed Internet access, a Four Points by Sheraton Comfort Bed and a hot breakfast made to order. Comfort foods prevail (think pies), and local and international beers are featured in all in-house eateries as part of the brand’s Best Brews program.

The new Four Points Chelsea, New York City, which opened earlier this year, was the first new build to embody the new Four Points by Sheraton standards. It also put the brand on a trajectory into major urban locations. “When this brand was launched in 1995, there was a dedication to secondary and tertiary locations,” says Swider. “Then we asked ourselves, why aren’t we in the major urban markets and resort locations?”

To sell its new brand image, Starwood is retraining its corporate sales team, owners and developers on the reinvigorated culture of Four Points by Sheraton. As part of that, all general managers are required to take part in a three-day brand-indoctrination program.

Next to be targeted in the branding scheme, says Swider, are meetings. “We know meetings is an area to which we need to extend our notion of combining the basics with simple pleasures, and we are working right now on ways to deliver that experience,” she says. “Expect to hear some exciting initiatives later this year.”

Revamped amenities:
The Radisson Lexington
New York

Radisson Hotels & Resorts
www.radisson.com
Portfolio: 400 hotels in 65 countries
Opening in 2007: Anaheim, Calif.; Bloomington, Ind.; Bordeaux and Marseille, France; Dublin, Ireland
In the pipeline: Beijing and Shanghai, China; Dubai, United Arab Emirates

Unlike the majority of U.S. hotel chains that establish their product on home soil before making a global reach, Radisson’s branding strategy was just the opposite. The parent company, Minneapolis-based Carlson Hotels Worldwide, has spent the past decade systematically building the Radisson name into a well-established, highly recognizable brand throughout Europe. This was accomplished by tapping into Belgium-based franchisee, Rezidor SAS Hospitality, of which Carlson owns a 25 percent stake.

Now, with Europe firmly under its belt, Radisson is turning its attention to home soil. “Like other hotel companies, we realize there is a need to rejuvenate brand images that have been allowed to be tarnished by some inferior products. Radisson was no exception,” says Nancy Johnson, executive vice president of full-service hotels, Carlson Hotels Worldwide.

According to Johnson, Carlson has spent the past three years focused on a rebranding strategy, and she estimates the chain has spent $516 million in redefining and repositioning to bring Radissons in the United States up to speed. After all, she notes, “We have some fantastic properties in Asia and Europe -- they are works of art, and we want the same for our U.S. product.”

Several new concepts have been introduced brandwide. Every Radisson guest room now features complimentary high-speed Internet access and the Sleep Number bed by Select Comfort, which Johnson says has elicited “phenomenal response” in guest feedback. An online registration program was implemented, which allows guests to address all their needs, from room preference to morning newspaper delivery. To help overhaul the in-house restaurant experience and room service, the Hyde Park, N.Y.-based Culinary Institute of America was called in. After rounds of taste tests and even more customer feedback, completely new menus were created, rejuvenating Radisson’s food and beverage offerings.

In 2006, Radisson refocused its sales efforts to target meetings and group business, which had been identified as a growth opportunity. The effort proved successful: By year’s end, meetings accounted for more than 570,000 room nights brandwide, a 16 percent increase over 2005, with the same growth projected for 2007. Among efforts driving interest, the company invites planners to create their own web page for attendees and attach it to the website of the Radisson property where the meeting will be held.

There’s more to come, says Johnson. “We have developed a new service-
training model based on quality,” she says. “It is a prescriptive support system for what the hotel needs to have in place, based entirely on our customer feedback. In fact, we are in the midst of training our people right now.”

Regent Hotels & Resorts
www.theregentexperience.com
Portfolio: Eight properties in the United States, Asia and Europe
Opening in 2007: Bal Harbour, Fla.; Turks and Caicos
In the pipeline: Boston; Bangkok, Thailand; Dubrovnik, Croatia; Papagayo, Costa Rica

The average traveler can be forgiven for asking, Regent who? After all, this is a brand with just eight properties under its flag. But if Minneapolis-based parent company Carlson Hotels Worldwide has its way, the Regent name will slip easily from the lips of savvy travelers in the very near future.

Last year, Carlson stepped up the branding and positioning of this portfolio in a major way. First it merged Regent Hotels, now renamed Regent Hotels & Resorts, with Radisson Seven Seas Cruises to create Regent Seven Seas Cruises, in a strategy that aligned branded vessels and hotels in one seamless ship-to-shore experience. An upgrading of the cruise line’s fleet and itineraries came next. “The attention is now focused on the hotel side, and we are relaunching ourselves globally,” says John Cardona, Fort Lauderdale, Fla.-based vice president, sales, Regent Hotels & Resorts.

What sets the Regent branding process apart from other chains is the intentional lack of product similarity. There isn’t even a logo. The Regent style is to match potential destinations to the brand, and then fit each new hotel snugly within its particular locale. Properties will run the gamut in architectural design and size. In the States, hotels will top out at 150 rooms, while in Asia, particularly in major cities such as Beijing and Shanghai, China, they will run to 500 rooms or more. Architectural designs will range from conspicuous glass and steel high-rises to understated resort luxury.

Still, there will be some unifying standards. All Regents will feature exceptional cuisine and a brand-name luxury spa. “Right now we are in the process of partnering with a recognizable European luxury spa company, whose name brings a lot of cachet to the table for us,” says Cardona, who adds that partnering with established spas made better business sense for Regent than launching its own brand. With regard to service standards, he says customers need look no further than those set by its cruise ships.

Meeting and group business looms large on the brand’s radar; in China, it represents 30 percent of business, and in Europe, 20 percent. Regent, says Cardona, wants those same margins for its U.S. properties. “We have two salespeople in the United States dedicated to getting our name out there, because we are heavily going after meeting and incentive business,” he affirms.

Renaissance Hotels & Resorts
www.marriott.com
Portfolio: 130 properties in 28 countries
Opening in 2007: Boston; Mobile, Ala.; Providence, R.I.; Washington, D.C.; Shanghai, China
In the pipeline: Austin, Texas; Montgomery, Ala.; Beijing

In 1997, Bethesda, Md.-based Marriott International acquired the Renaissance brand from Renaissance Hotel Group. Unlike other Marriott brands that stress adherence to room prototype and brand conformity, however, the Renaissance portfolio historically prided itself on individuality, with each hotel distinguished by its own unique attributes. At times, that strategy created confusion for the customer, and the brand found itself struggling with an identity crisis. Not anymore.

Last October, Marriott announced it would spend $1 billion over the next three years to expand and enhance the brand’s presence throughout North America through renovation, conversion and new construction. As such, a number of key brand standards are being incorporated at all Renaissance hotels to support the brand’s platform of “Expressive Destination, Delightful Luxury and Savvy Service.”

Lobbies will be transformed from functional exit-and-entry spaces into great rooms, outfitted with niches for entertaining or relaxation, wireless Internet access, and unique architectural details, scents and sounds. Guest rooms will feature two new styles, Renaissance Red and Renaissance Blue, featuring the new Renaissance Revive bedding, flat-screen televisions, and sophisticated technology, such as panels that offer iPod ports and Ethernet connectivity, and the ability to transfer displays from cameras, laptops, digital camcorders and other electronic devices directly to the TV screen.

Signature cocktails and heart-healthy menus will be introduced. “Wellness zones” will feature fitness centers with the latest in exercise equipment, and spas that pamper the mind and body. In compliance with Marriott’s smoke-free initiative, all North American properties will prohibit smoking.

Enhanced services for planners will include the Enlightened Event, Renaissance’s new approach to distinctive meetings and events, which is but one of several major initiatives that will be announced this fall regarding new brand standards to be rolled out across the portfolio.

Distinctive design:
The Wyndham
Gettysburg (Pa.) Hotel

Wyndham Hotels and Resorts
www.wyndham.com
Portfolio: 92 properties in North America, Asia, Africa, the Caribbean and Europe
Opening in 2007: Austin, El Paso and McAllen, Texas; Xiamen, China
In the pipeline: Chantilly, Va.; Orlando; Seattle; Springfield, Mass.

Two years ago, then Dallas-based Wyndham Worldwide was acquired by Parsippany, N.J.-based Cendant Hotel Group, before being spun off last year into its own entity. Now, a brand that once seesawed between dingy, outdated downtown hotels to luxurious spa resort properties is poised to gain some measure of consistency -- and respect. “This is a brand that grew through acquisitions, so they were all over the place,” says Peter Strebel, president of Wyndham Hotels and Resorts. “In the past, we were strapped financially. We are now capital fluid, and we are out there getting our brand message out.”

The Wyndham name encompasses five product lines: The Grand tier, Wyndham Hotels and Resorts, Wyndham Garden, the select-service tier and the vacation resorts tier. Meetings and conventions fall squarely into Wyndham Hotels and Resorts, the brand’s core product.

Driving Wyndham’s rebranding and repositioning are three main elements: flexibility, innovation and personalization. Flexibility, says Strebel, means each hotel can decide when to implement check-in and checkout, for example, based on what works for that property’s demographics. On the innovation front, a new architectural prototype for the brand was created by the world-renowned firm of Michael Graves & Associates. Standard in-room products include the Wyndham signature Smart Chair, complete with table arms to hold a laptop and Internet outlet. Guests also will find ice buckets, lamps, a coffee maker and a mini-fridge, all designed by Graves. In addition, all hotels are being outfitted with the new Wyndham Be Well signature bed.

Public spaces also have been transformed. The traditional front desk has been tossed out in favor of a “pod” system, to promote a friendlier guest experience. Food and beverage menus are being overhauled, and a new wine and spirits program, emphasizing boutique wineries, is being rolled out.

Coming later this year is a new branded spa to replace Golden Door, which did not follow Wyndham to Cendant; new restaurant concepts emphasizing simple fare; and a refocused training program that will outline brand standards for every position in a hotel, which will ensure standardization of back-of-the-house operations.

With Wyndham’s efforts on track, Strebel says it is now time for the brand to strike. “We have eight target markets where we are aggressively working to find the right hotel fit for us,” he says. “San Diego, New York, Miami and Boston are a few. Plus we have our eye on Cancun, and we have a very hot prospect in London.”