Hilton Garden Inn Blossoms Into Top Midprice W/ F&B

<B>Hilton Garden Inn Blossoms Into Top Midprice W/ F&B</B>

By Bruce Serlen

Among other similarities, the three hotel brands that placed first, second and third in the midprice hotels with food and beverage category of the 2001 Top U.S. Hotel Chain Survey share one very prominent characteristic: Each is part of a large multi-brand company. What's more, these multi-brand organizations make it a practice to promote their variety of brands to buyers so the brands can be included in these accounts' national hotel programs.

Finishing in first place was Hilton Garden Inn, a unit of Hilton Hotels Corp. In second place was Four Points by Sheraton, which is part of Starwood Hotels & Resorts Worldwide; Courtyard, a unit of Marriott International, came in third.

Asked to rank hotels in this category according to 11 criteria, respondents gave Hilton Garden Inn top scores in four areas: the properties' overall price-value relationship, ease in arranging group travel, the quality of food and the properties' physical appearance. On helpful and courteous staff, Hilton tied with another chain, Club Hotels by Doubletree. Four Points scored highest on three counts: ease in arranging individual travel, its facilities for meetings and its corporate rate programs. Courtyard, meanwhile, was recognized for its timely commission payments and the quality of its business centers.

With 89 properties in the portfolio at year-end 2000, and another 35 to 40 scheduled to open in 2001, Hilton Garden Inn now has sufficient critical mass to participate fully in Hilton's national accounts programs. "We began to see the positive effect of this expansion in the negotiations that concluded in December for 2001 rates," said Adrian Kurre, Hilton Garden Inn senior vice president of brand management. "And as new properties continue to enter the system, this benefit will only increase for travel buyers looking to get the national coverage they need for their programs."

The range the multi-brand company has to offer becomes a selling point in itself. "We're able to offer buyers different brands at different price points," Kurre said, "and a midprice alternative with food and beverage would be a logical choice for corporate travel buyers to want to include."

Typically, buyers might want to include a full-service brand in a particular market but find that the brand doesn't have a property in that location. "We'll have hotels in airport, secondary and tertiary locations where there isn't a full-service Sheraton, for example," said Peter Rogovin, vice president of marketing for Four Points by Sheraton in North America. "So, even though we have a separate brand identity, business travelers who know and trust the Sheraton name feel a certain comfort level with us."

The Four Points portfolio grew to 140 properties in 2000, including one transaction that added 13 former Wyndham Garden Inn hotels to the brand. The properties are located in the United States, but are owned by the Barcelo Hotel Group, a hospitality company based in Spain.

"Looking to 2001, half of our new development will be outside of the United States," Rogovin said. "Half are also new constructions, which is a departure for us since most of the existing Four Points portfolio had been conversions. "

Marketing executives at Marriott have refined the midprice segment so different brands are specifically targeted to different types of business travelers. Much depends on the price point the traveler is prepared to pay within the midprice range and the particular nature of the business trip itself. As an established brand that already had a significant following among business travelers, Courtyard has taken the lead in much of this thinking.

"Courtyard travelers are extremely loyal and very comfortable with the amenities and level of service they find there," said Craig Lambert, Marriott senior vice president of select service lodging, which includes Fairfield Inn and SpringHill Suites, in addition to Courtyard.

Lambert said the Courtyard brand is complementary to the full-service Marriott brands: "The core values are the same."

The way the company's reservation system is structured, travelers looking to book a Courtyard, for example, that is already booked are first directed to the closest Courtyard where there is a room available. Only if this choice is unacceptable, usually because of distance, does the agent recommend another brand under the Marriott umbrella. If location is strictly driving the decision, midprice as well as full-service options are offered. "It's one of the strengths of the multi-brand approach," Lambert said.

In 2000, Courtyard celebrated the opening of its 500th hotel. The fact that this milestone property is located in Hanover, Germany, is indicative of the fact that much of Courtyard's recent growth has been outside the United States. This includes seven properties in China.

"The global economy is quite variable but, where it makes sense, Courtyard can be very successful," Lambert said. "At present, there's really no global midprice brand. Certain brands in individual parts of the world do a good job, but none are truly global." Marriott's Lambert is hoping to rectify that.

During the year, the brand also began an extensive renovation program that started with a new lobby concept, and in 2001 will include a redo of the guest rooms as well.

"It's a bit of a balancing act," Lambert said, "taking what had been successful and trying to bring it to the next level, while at the same time not disturbing what had made the brand work in the first place." The new lobby stresses an open, flexible approach that's more residential in feel. "In addition, much more technology, including stations for hooking up laptops, has been incorporated into the design," Lambert said.

Existing Courtyard properties are being refurbished gradually, while new entries will be designed with the brand's latest concepts.