Survey: Buyers Optimistic About Hotel NegotiationsDespite fears of hotel rate increases surpassing those witnessed in recent years, the majority of buyers are sanguine about the 2006 negotiating season, according to a WorldTravel BTI survey of 183 clients. Eighty-five percent of the respondents said they anticipate a "favorable" or "very favorable" negotiating climate. "When compared with air and car supplier negotiations, hotel negotiations rank the highest, with 22 percent stating a 'very favorable' supplier negotiation process," WorldTravel BTI said in its 2005 Client Benchmark Survey. In the airline segment, 14 percent of respondents anticipate a "very favorable" climate, while 56 percent said negotiations will be "favorable." On the rental car side, only 9 percent expect negotiations to be "very favorable," and 67 percent anticipate "favorable" negotiating conditions. WorldTravel BTI said traveler compliance is the primary challenge of supporting a successful hotel program. Of those surveyed, 32 percent have garnered less than 45 percent of preferred hotel supplier utilization. About 40 percent said compliance on preferred hotels ranges between 46 percent and 75 percent.
Separate Starwood, Blackstone M&A Deals ProgressStarwood Hotels & Resorts late last month said it signed a definitive agreement to acquire the Le Meridien Hotels & Resorts portfolio of more than 130 properties in 56 countries. Starwood said it expects the deal to close within the next three months. Until then, Le Meridien's management team will continue to operate independently. "The signing of the definitive agreements is another step towards completing the consensual recapitalization of Le Meridien," Le Meridien CEO Robert Riley said in a statement. "When all the pieces of the transaction come together, the Le Meridien brand, our hotels and our people will be poised to move forward aggressively with one of the world's most dynamic global hospitality companies. Until then, we can assure our owners, partners and guests that it is business as usual at Le Meridien." Starwood in April announced the creation of a joint venture with Lehman Brothers to acquire Le Meridien
(BTNonline, April 28), and the two parties are moving to take on the Le Meridien brand and "all related management and franchise business." The partnership wasn't the first for the two companies. Amid Le Meridien's mounting financial woes, Starwood and Lehman Brothers in late 2003 jointly acquired a majority of hotel brand's senior-level debt
(BTNonline, Jan. 5, 2004). In other hotel M&A news, Wyndham International last month finalized its merger with an affiliate of The Blackstone Group. Wyndham in June signed the agreement to be acquired for $3.24 billion. Blackstone Group, which owns a stake in Prime Hospitality, aggressively has been building up its hotel portfolio. Blackstone in May acquired 16 extended stay properties from Wichita, Kan.-based Sierra Suites
(BTNonline, May 12) and last year combined acquisitions of Extended Stay America, Homestead Studio Suites and Wellesley Inns & Suites into Extended Stay Hotels.
Amex Expands Consortia ProgramAmerican Express during the National Business Travel Association conference in San Diego said it is expanding Preferred Extras—the agency's consortia hotel pricing program—to include "nearly 10,000 hotel properties located in 3,400 cities and 140 countries worldwide." Herve Sedky, vice president and general manager, American Express Global Business Travel said the Preferred Extras program guarantees customers 10 percent less than the best available rate. "American Express has negotiated hotel arrangements in 95 percent of worldwide cities where our clients travel for business, ensuring that our clients, no matter where they go, will not only get the best room available, but also the best deal for their stay," said Andy McGraw, senior vice president and general manager of American Express Business Travel.
Doubletree Links Up With Technology EnhancementsDoubletree Hotels during the NBTA conference said it has completed installing high-speed Internet access in guest rooms—representing some 40,000 rooms—and meeting rooms brandwide. The Hilton brand also said it also is moving toward its year-end goal of installing wireless high-speed Internet access in hotel lobbies, lounges and restaurants. So far, Doubletree said 130 of its properties currently offer Wi-Fi in public areas, with roughly 20 more to go before the end of the year. Additionally, Doubletree, like fellow Hilton brand Embassy Suites, announced a partnership with PrinterOn to incorporate secure printing in business centers, giving business travelers in their guestrooms the ability to print documents directly from personal laptops to the business center or front desk.