Westin Wins Upper Upscale

<B>Westin Wins Upper Upscale</B>

By Bruce Serlen

A year ago, Westin Hotels & Resorts was celebrating because it had moved into the upper upscale category of the U.S. Hotel Chain Survey for the first time--and finished in first place. A year later, the party continues: Westin, a unit of Starwood Hotels & Resorts Worldwide, again clinched the number-one spot. Tying for second place for 2001 were the Peabody Hotel Group and Inter-Continental Hotels & Resorts, which is part of Bass Hotels & Resorts. In last year's survey, Peabody also placed second in this category, while Inter-Continental tied for the number-three spot.

For 2001, Westin placed first for its overall price-value relationship as well as in two of the other 13 criteria that BTN asked buyers to evaluate: Westin's facilities for meetings and its corporate rate program. Westin also tied for first place using a fourth criterion, the quality and variety of its in-room amenities.

Memphis-based Peabody, meanwhile, scored highly for its quality of food, helpful and courteous staff and physical appearance of its properties.

Travel buyers ranked Inter-Continental highest this year on two counts: ease in arranging both individual and group travel.

Sue Brush, Westin vice president of marketing, attributed the brand's repeat success this year to its focus on the business traveler's comfort and well-being. Echoing a theme often heard in the deluxe hotel category, she said the brand's goal was "to get as close to the individual customer as possible, to better understand that person's needs and preferences," and to provide the most meaningful service.

Westin's focus on guests' physical comfort centered on its continuing Heavenly Bed promotion. "The momentum we saw in 2000 was really tremendous," Brush said. While 80 percent of rooms in existing Westins now have been outfitted with the upgraded, all-white bed product, 100 percent of the rooms in new properties will have them. The bed program has been so successful for Westin, it's spawned a mini-retail operation for the chain, giving it an additional source of revenue. "Catalogues in guest rooms allow travelers to order assorted linen items along with bathrobes and breakfast trays," Brush said, noting that the chain is selling an average of four complete beds a day.

Brush also said Westin had the highest proportion of women business travelers--42 percent to 47 percent--of any Starwood brand in 2000 and that customer research indicated that the Heavenly Bed was one of the reasons why: "Women travelers even told us they would pay a premium, up to $20 a night, to stay in a room with the new bed."

Complementing its renewed focus on the guest, Westin also put an accelerated growth plan into place in 2000. Europe was the scene for much of this growth. "In the first quarter, we rebranded nine Luxury Collection properties as Westins," Westin's Brush said. "Considering they're in such gateway cities as Rome, Madrid and Milan, they gave the brand a lot of international visibility." The properties, which had been part of Ciga Hotels, subsequently were put up for sale by Starwood, though the company intends to retain management.

Growth also was the operative word at the Peabody Hotel Group, though the focus was strictly domestic. "We're in the process right now of renovating our newest property, which will debut as the Peabody Little Rock, Ark., early in 2002," said Barry Anderson, vice president of marketing. Peabody also includes a portfolio of owned and managed properties at lower price points that fly various Bass Hotels & Resorts and Hilton Hotels Corp. flags, ranging from Holiday Inns to Hampton Inns.

At Peabody's flagship property in Orlando, a two-phase expansion was announced last year that will add two towers, 1,700 rooms, by 2007. "Each phase is timed to the continuing expansion of the Orlando/Orange County Convention Center, which sits directly opposite the hotel," Anderson said. Upon completion, the hotel will boast about 2,600 rooms.

Inter-Continental Hotels & Resorts has found that frequent business travelers, given their hectic schedules, are more discriminating. "Our market research indicates that these travelers increasingly want to control their own destinies while on the road," said Chuck Brownfield, senior vice president of marketing and sales for Bass' Americas division. "They're sophisticated and they know what they like. Accordingly, we saw increased usage of our 'business options' program in 2000. This allows travelers to tailor their stay by choosing from among a list of options when they book their reservations." Depending on the property and availability, options might include upgrades to the club floor or a suite, extended weekend stays at a discount or complimentary breakfast. In 2000, Inter-Continental opened three new properties in the Americas: Austin, Texas, Miami and San Juan.

The Westin brand's success aside, Starwood had additional good news in the upper upscale category of this year's Top U.S. Hotel Chain Survey: Its trendy new W brand made its debut on the survey in the number-five spot. "Given that the brand is only a few-years old, we've worked hard to ensure it had its own special identity in the business travel marketplace," said Diane Briskin, corporate director of sales and marketing for W Hotels. "What we're trying to do is build on the whole concept of being a 'style brand.' This means creating something with a striking design that's refreshing to look at, but also is backed up by great business services."

At the heart of each hotel's public space is a "sexy living room," said Briskin. "While there are no rules that must be followed, we found that the placement of the restaurant and bar were crucial to establishing the kind of ambience that set the tone for the project," she said.

W opened six hotels in 2000, doubling the size of the brand to 13 in two years. In 2001, five more properties are scheduled to open, including two in Chicago and one in New York.