Montreal Hoteliers Upgrade
<B>Montreal Hoteliers Upgrade</B>
By Carolyn Green
A vibrant economy coupled with a major expansion to Montreal's convention center, the Palais des Congrès de Montreal, are two major factors prompting local hoteliers to invest millions of dollars to refurbish their properties. Additionally, a major U.S. chain, Marriott Hotels & Resorts, is building its first Canadian Springhill Suites property here, while Starwood Hotels & Resorts actively is pursuing an appropriate site for a Westin hotel.
"There is more going on now than in the past because the general economy in Montreal and in the province of Quebec is doing very well," said François Goulet, senior vice president of sales for the Greater Montreal Convention and Tourism Bureau. "Unemployment is going down and Montreal has made a great turnaround with the addition of a lot of new businesses, especially in the high-tech and multimedia sectors."
In addition to a strengthening economy, Tony Pollard, president of the Ottawa-based Hotel Association of Canada, said many hotels that were impacted by the recession of the 1990s, had delayed upgrading their properties until they were financially stable. Indeed, occupancy is slowly creeping up, while average daily room rates are increasing.
According to hotel consultants Pannell Kerr Forster, the occupancy rate in 1997 was 67 percent. In 2000, it was expected to hit 71 percent, inching up to 72 percent this year. Average daily room rates are growing at a faster pace. In 1997, the ADR was US$68, jumping to US$78 in 1999. PKF predicted it will rise to US$85 in 2000 and US$90 this year. Pollard said if rates increase, guests expect a quality product that is comparable with hotels in other metropolitan areas.
Jean-Louis Narboni, director of sales and marketing for the Hotel Wyndham Montreal, said one reason the hotel spent US$11.4 million was "to get higher rates and to go after a larger share of the business travel market. Most hotels have gone through major renovations and it was just time for us to do it."
The first phase of the Hotel Wyndham renovation was completed in late 1999 and included the addition of a fitness center, the refurbishment of 400 of the 600 guest rooms and about 80 percent of the hotel's 34,000 square feet of meeting space. As well, guest rooms now have wireless Internet access, while the meeting rooms have state-of-the-art equipment, including high-speed Internet access. Narboni said the hotel invested another $3.4 million in 2000 when it renovated another 100 guest rooms.
The Ritz-Carlton Montreal also recently received a major US$6.7 million facelift to its 230 guest rooms and suites. In addition to replacing soft goods, such as wall and window coverings, armoires and television sets, each room now has high-speed Internet access. To assist guests in using their computers or hooking up to the Internet, the hotel has added a 24-hour technology butler service.
Meanwhile, Le Centre Sheraton Montreal, in conjunction with American Express Canada Inc., has invested US$536,000 to create the American Express Traveler Club floor. It is the second co-branded enclave in Canada. In 1998, Amex and Sheraton joined forces to create a similar floor at Toronto's Sheraton Centre hotel. Located on the eighth floor of the 825-room property, the new American Express Traveler Club has 27 guest rooms, with various business amenities, including a large desk and a combination printer/photocopier/fax. The floor also boasts a self-serve business center with high-speed Internet access, a desktop computer with a printer/copier/fax, a boardroom that can accommodate 10 people and a large lounge.
The 711-room Delta Centre-Ville, the city's second and newest Delta Hotel to join the chain, spent about US$10.1 million to create 128 Club Signature rooms, Delta's business class product. Delta took over management of the hotel from Radisson in early 1999 and rebranded it later in the year. It also built a Signature Club lounge. Delta is planning to invest another US$3.4 million to upgrade an additional 200 guest rooms early this year.
French hotelier Accor North America recently spent US$3.4 million to expand the building and add 26 guest rooms to the existing 200, as well as a dedicated 4,000-sq.-ft. multimedia conference suite.
Designed for small to midsize corporate meetings, the four-room conference center features state-of-the-art technology that includes high-performance sound systems, featuring wireless microphones and high-speed ISDN lines for Internet connections. Three rooms have ceiling-mounted projectors, while the other room has rear-screen projection. Unlike traditional meeting rooms, where banquet chairs and tables are reconfigured to suit a client's meeting or food and beverage requirements, conference suite rooms have permanent U-shaped tables and ergonomic chairs.
In addition to its 42,000-sq.-ft. convention floor, the Queen Elizabeth Hotel, part of the Fairmont Hotels & Resorts chain, also is focusing on small corporate meetings. Early last year, it opened a new executive level on the third floor that offers corporate clients 43 guest rooms, seven meeting rooms that can accommodate 10 to 80 people and an exclusive concierge service. "We created the third-floor concept at the Queen Elizabeth to ensure that small groups searching for a secluded and private area could do so," said Richard Payette, general manager of the hotel.
A year after acquiring the former 300-room Westin Mont-Royal Hotel, Texas-based Omni Hotels invested US$6.7 million to upgrade all guest rooms, 16,000 square feet of meeting space and public areas. In addition to new furniture and soft goods in the guest rooms, it added high-speed Internet access.
Although Starwood Hotels has indicated its desire to return to Montreal with a Westin property, the only major new hotel development underway is the US$11.4 million Springhill Suites by Marriott being built in Old Montreal. The property, when it opens early next spring, will have 124 one-bedroom suites, a health club, an indoor pool and whirlpool, and four meeting rooms.