Four Points Takes Midprice W/ Food, AmeriSuites W/O

Four Points by Sheraton and Hilton Garden Inn traded places at the top of the midprice with food and beverage category this year, with Four Points narrowly beating out Garden Inn for first place in a field of 10 chains.

By contrast, AmeriSuites this year succeeded in holding on to the number-one slot in the midprice without food and beverage category. Country Inns & Suites by Carlson, however, was able to edge out Hampton for second place. Hampton, a unit of the Hilton Hotels Corp., was third in a field of seven.

Of the 11 criteria with which readers were asked to measure midprice hotels with F&B, Four Points, which is part of Starwood Hotels & Resorts Worldwide, scored highest in four, including the effectiveness of its corporate rate programs.

Likewise, Hilton Garden Inn scored highest in four criteria, including the ease in arranging individual travel. Club Hotels by Doubletree, another Hilton brand, which placed third in the category, achieved the highest scores for its meeting facilities, while Courtyard by Marriott, which finished in fourth place, earned the highest scores for the physical appearance of its hotels. Club Hotels and Courtyard tied for the highest scores in the overall relationship of the brand's price to value category.

Meanwhile, readers responding to the midprice without food and beverage category judged the brands on 10 criteria, quality of food being moot. AmeriSuites, which is a unit of Prime Hospitality, scored highest in six, including the effectiveness of its corporate rate programs and the overall relationship of its price to value. Country Inns & Suites scored highest in two areas, including the properties' physical appearance. Hampton also scored highest in two areas, including the ease of arranging individual travel.

While the midprice sector experienced drops in occupancy and room revenues in 2001, along with other industry sectors, the declines overall were more moderate. For example, according to Smith Travel Research, occupancy in U.S. midprice chains without F&B in November, which is normally a peak month for business travel, was down only 5.4 percent over the prior year. By contrast, occupancy for the month at the upscale level was down more than double, 11.2 percent. The discrepancy between the midprice chains with food and beverage and upscale brands wasn't nearly as great.

"Performance for the year held up pretty well, though the environment was still difficult," said Doug Vicari, CFO of AmeriSuites parent Prime Hospitality. Vicari attributed this to two factors: price point and location. "Considering that business travelers were under pressure to keep costs in line, rates in the midprice sector were more in line with budgets," he said. "And given many travelers' reticence to fly after Sept. 11, the fact that many of our suburban locations are suitable for travelers who are driving was another positive."

Across the country, larger markets were among those hardest hit by the downturn. "Our research indicated that the top 25 markets were often the most negatively impacted and these tend to be served by airports," said Paul Kirwin, Country Inns & Suites president. "A brand like ours, on the other hand, tends to have greatest distribution in suburban, drive-up markets and they fared better. These markets are more likely home to Fortune 1000, rather than Fortune 500, companies."

Midprice chains with food and beverage, meanwhile, saw their competitive advantage in 2001 in terms of price and service levels.

"When you factor in that our properties offer onsite restaurants and meeting space, corporate buyers actually are getting the same features of a full-service property, though at a midprice rate," said Starwood Hotels & Resorts vice president of brand operations Sue Brush, who has responsibility for the Four Points by Sheraton brand.

In an attempt to close the gap further between the industry's full-service and midprice sectors, midprice chains with food and beverage are rolling out programs to improve their delivery of guest services.

"In 2001, we grew very quickly, opening 36 hotels around the country, giving us a total of 125," said Adrian Kurre, Hilton Garden Inn senior vice president of brand management. "When brands grow very quickly, consistency of experience can often be an issue. Accordingly, this year we're focusing on service delivery, with the introduction of a program we're calling, 'Ultimate Service,' empowering all of our staff members to think as though they were concierges."

As with chains at any price point, individual properties at the midprice level occasionally initiate business traveler-friendly programs on their own. That was the case with the Four Points at Los Angeles International Airport. Its 24/24 program allows guests to check in at any time during the day or night and keep their room for a full 24 hours.

"Considering that we're an airport property, travelers often need access to their room at an untraditional time," said Phil Baxter, vice president and general manager of the hotel. "By providing their arrival and departure information when they make the booking, we're able to guarantee a room on this basis."