BTN U.S. Hotel Chain Survey, 2007: Four Seasons Nips Ritz-Carlton To Retain Hotel Buyers' Deluxe Crown

Four Seasons Hotels and Resorts retained its position at the top of the deluxe tier in a neck-and-neck battle with Marriott's Ritz-Carlton. With only three-hundredths of a point separating the brands' final scores, buyer satisfaction with Four Seasons' pricing and value was enough to offset Ritz-Carlton's higher-scoring amenities and service.

This marks the second year in a row in which Four Seasons bested Ritz-Carlton in the U.S. Hotel Chain Survey. Ritz-Carlton held the title for the six years prior. The two brands won first- and second-place honors in nearly every category with the exception of corporate rate programs, in which Fairmont Hotels & Resorts took second place over Ritz-Carlton.

"Four Seasons began as the hotel for the business traveler, and our staff understands the need and expectations, and it's about service," said Barbara Talbott, Four Seasons' executive vice president of marketing.

The luxury tier in 2006 led the industry in occupancy, revenue per available room and average daily rate increases, according to PricewaterhouseCoopers. Estimates for the tier had occupancy up 1.3 percent, RevPAR up 11.1 percent and average daily rates up 9 percent, and those numbers are expected to remain strong.

"The luxury segment of the business has really been strong this year," said Sean Hennessey, president of New York-based Lodging Investment Advisors. "Room rate growth should be on the order of 8 percent for the next two years."

Mixed-use development continues to feature heavily in new deluxe properties and will help keep supply tight. Of all luxury projects under development, 26 percent contain residential components, much higher than any other tier. "With little new supply, it's going to give those hotels really strong pricing power," Hennessey said.

While Four Seasons is not known for its low rates, it outscored its competition both in its corporate rate programs and in the overall relationship of price and value. "We have a more consistent quality for all of the chains," Talbott said. "It's a fundamental need for the business traveler."

Four Seasons also received top scores in the appearance of its properties and arranging group and individual travel. It and Ritz-Carlton tied in facilities for non-resort meetings. Ritz-Carlton scored better in the amenities categories, ranking highest in resort meetings facilities, food, staff, business center and in-room amenities both of the business and non-business variety.

John Harper, vice president of international sales offices for Ritz-Carlton, said the brand, which has doubled from 30 to 60 hotels since 1999, makes sure the most high-demand amenities—upgraded shower heads, flat-screen televisions and coffee makers—are in every room. A coffee maker might sound like a basic addition, but Ritz-Carlton put a lot of effort into developing a specific presentation, making it subtle enough to fit in the room, Harper said.

"It took us a while to get the right product for them, but we have a neat coffee maker presentation," he said. "Little things like that make a difference." Ritz-Carlton also has improved its business services, Harper said. For example, it now gives customers on the club floor e-mail addresses to which they can forward attachments on the road and have them printed and ready for their arrival to the room, he said.

Four Seasons' business services and such personal services as in-room dining and laundry are now 24-hour services, Talbott said. The brand also has introduced room service that can be ordered on the way to the hotel.