BTN U.S. Hotel Chain Survey, 2008: Four Seasons, Ritz-Carlton Tie As Deluxe Tier Leads Rate Growth(2)

Four Seasons Hotels and Resorts and Ritz-Carlton have battled back and forth for years to be buyers' top deluxe brand, and this year they share the U.S. Hotel Chain Survey crown.

After averaging scores for the 13 criteria considered in the tier, Four Seasons—the winner last year—and Ritz-Carlton, part of Marriott International, tied to lead the category. Fairmont Hotels & Resorts maintained its third-place position, and luxury collection Preferred Hotels & Resorts placed fourth, receiving top marks from buyers for its corporate rate programs.

The deluxe tier continues to lead the industry in rate and revenue growth, according to PricewaterhouseCoopers' 2007 U.S. Lodging Industry Report and Forecast. Average daily rate grew by 6.9 percent in 2007 and is expected to do the same this year, higher than in any other tier. Although revenue growth in 2007 finally slipped out of the double-digit percentage levels it had seen since 2004, it still is expected to grow at 6.8 percent this year, higher than in any other tier, PwC said. Deluxe and economy are the only tiers not expected to lose occupancy this year.

As the top-dollar tier maintains its strength, luxury hoteliers are raising the bar in their design standards. Four Seasons, which was top-rated for its meetings facilities, physical appearance, food quality, business center and amenities, began in 2007 investing more than $1 billion to enhance its properties, including meeting rooms, guest rooms, spas and restaurants, according to Barbara Talbott, the brand's executive vice president of marketing.

"Consumers want to be pampered more than before, and they'll pay top dollar even if it means cutting their stay short by a day or two so they can get the most out of their experience," said Calvin Dix, senior designer at hospitality design firm Hirsch Bedner Associates' Santa Monica, Calif., office.

"Today's hottest trends are luxury, meticulous attention to detail and comfort, with ultra-sophisticated interiors, guest rooms that make the indoors seem more like outdoors and opulent spas, restaurants, lounges and other amenities," Dix said.

For travel buyers and business travelers, however, hoteliers and analysts said service levels distinguish the top-scoring properties in the survey.

"Years ago, to have a luxury experience was unique. Now, as luxury has become more mass-marketed, people are very familiar with it," according to John Roberto, senior vice president and managing director of the quality assurance practice for customer experience management firm LRA Worldwide. "These brands are successful because they've focused on the personalization and the custom approach to service."

Ritz-Carlton, rated highest by buyers for its staff, its ability to handle both transient and group travel, its commission payment systems and its overall value, has focused on a number of service values during the past 18 months, said senior vice president of sales and marketing Bruce Himelstein. McGraw-Hill at the end of June will publish a book specifically about Ritz-Carlton's service levels, he said.

"I don't think Ritz-Carlton guests seek us out because of the stuff we have," Himelstein said. "If you're traveling, it's not so much how innovative or technologically advanced you are as a brand. None of that matters if you're not at the service level you would expect at Ritz-Carlton."

Four Seasons' Talbott said her brand's service offerings—one-hour pressing, four-hour dry-cleaning and 24-hour fitness options, for example—also have become more important than ever.

"It sounds simple, but in fact it's hard to provide highly consistent service with genuine kindness and care," according to Talbott. "Our guests really value both, and it's reflected in how they rate Four Seasons."

The two brands continue to increase their footprints. The luxury tier is expected to increase supply by 2.5 percent this year, slightly about the overall U.S. average, according to PwC.

Four Seasons is now in 30 countries, having added three new properties in the past 12 months, including a St. Louis property that opened in February, and will add properties in Seattle, Mumbai and six other locations this year, Talbott said.

Ritz-Carlton, meanwhile, opened several new properties last year, including new properties in Dallas and Denver, and will continue its growth pattern in 2008. "We've had some very significant openings, and the consumer will start seeing this brand show in more new places than before," Himelstein said.