Toronto Hotels Ramp Up Amenities, Expect Biz Boost

<B> Toronto Hotels Ramp Up Amenities, Expect Biz Boost</B>

By Carolyn Green

Toronto - Fueled by a strong economy, Canada's largest city and the country's premier commerce center is seeing significant increases in both the number of business travelers and the amount of money those visitors infuse into the economy.

Tourism Toronto estimated that four million business travelers--about 25 percent from the United States--visited Toronto last year and spent $1 billion, compared with the 3.6 million visitors in 1997 who spent $792 million. Catherine McKellar, spokesperson for the Metro Toronto Board of Trade, said there's little reason to expect that the trend will not continue and pointed out a clear indication that business travel is growing--hotel occupancy rates. According to consultants Pannell Kerr Forster, hotel occupancy last year was 74 percent, up from 71.9 percent in 1997. Projections for this year call for an increase to 77 percent.

Similarly, average daily room rates have been steadily climbing. Last year, Toronto's ADR was $74.64, a 9 percent increase from a year earlier. This year, PKF estimated, rates will jump 10.5 percent, to $82.50.

Anne McCall, general manager for the Skydome Hotel and chair of the Greater Toronto Hotel Association sounded a more cautious note about occupancy rates, suggesting they could increase a maximum of two percentage points above 1998 levels, while room rates could climb, on average, by $6.60. McCall's more conservative estimate is based on her view that despite a robust economy, the business cycle could be heading for a slight downturn. As well, she said, "even though companies have been quite successful, many travel budgets are not expanding. They're being watched carefully, if not reduced."

Still, McCall said, Toronto remains "one of the best bargains in North America," due in part to the sagging Canadian dollar now worth about US$0.66. According to Runzheimer International, the business travel per diem for Toronto last year was $173.50, compared with $313 for Boston and $262 for Chicago.

To meet the expected ongoing business travel demand, the city is welcoming back a long-lost friend, Chicago-based Hyatt Hotels Corp., while its existing properties spend millions to upgrade amenities aimed directly to this market.

After a 20-year hiatus, Hyatt has returned to Toronto with the purchase of the former Park Plaza hotel, located in the upscale Yorkville district. The 70-year-old property had been purchased in 1996 by the Houston-based Gencom Group and was to become a Grand Bay property after a $35 million renovation. However, earlier this year Hyatt announced plans to take over the 348-room property and rename it the Park Hyatt Toronto.

Although little new hotel construction has occurred in recent years, the city's existing properties have been upgrading their facilities to capture a larger chunk of the market. For example, Delta Hotels & Resorts has invested $10 million at the Delta Meadowvale Resort & Conference Center. In addition to refurbishing the lobby and all 374 guest rooms, there was a major facelift to the property's 40,000 square feet of banquet and conference space. All 41 meeting rooms and pre-function areas have new wall coverings, enhanced lighting and are equipped with ISDN lines.

At the Hilton Toronto Airport, $6 million has been spent on renovations, which include: the installation of a new sprinkler system, expansion and refurbishment of the hotel's health club and a redesign of 256 guest rooms to better accommodate business traveler needs with the addition of large working desks, two-line speaker phones and a reclining chair.

The Westin Harbour Castle Hotel, located on the waterfront overlooking Lake Ontario, recently has undergone a $10 million renovation, which included the refurbishment of its south tower guest rooms, as well as a facelift to the hotel lobby, fitness center and Marine Lounge. Guest rooms in the north tower soon will receive a similar facelift. And in addition to aesthetic and structural changes, the hotel recently introduced a free shuttle service between the hotel and the city's financial core.

Like the Westin, the Skydome Hotel, part of the Canadian Pacific Hotels & Resorts chain, recently has introduced a complimentary shuttle service to the nearby financial district. And the hotel--attached on the north side to the Toronto Blue Jays Skydome Stadium--recently opened a new restaurant, Le Bistro, an adjoining lounge called the Diamond Bar and a private function room, which provides guests with a bird's-eye view of games and other events at the Skydome.

During a sports event, restaurant patrons sitting at premier viewing tables are charged $26 for a seat, an amount that is rebated if food and beverage costs per seat meet or exceed that amount. Similarly, the minimum cost to rent the private Club Room is $1,320. However, the fee is credited toward food and beverage charges.

Specifically for the business traveler, the Sheraton Center has introduced a flexible room-cleaning service called Clean at Your Convenience. By ticking off a two-hour time period on a card and leaving it on the doorknob the night before, the hotel's housekeeping staff services the room according to the guest's request. At the same time, the mini-bar staff are notified so it can service the guest room during the preferred cleaning period.

At the downtown Delta Chelsea, one of the city's largest hotels with almost 1,600 rooms, personal fax machines and dedicated phone lines that bypass the hotel operator have been installed in each guest room.

Aimed directly at the well-heeled senior executive, the Windsor Arms, an ultra-luxury boutique hotel, which closed in 1991, reopened its doors this spring. Totally reconstructed, the hotel has seven guest rooms and 21 one- and two-bedroom suites, some with fireplaces and their own boardrooms. Rates range from $247.50 to $990.

Originally built in 1927, the Windsor Arms has five meeting rooms, including two boardrooms, one with teleconferencing facilities, and both with computer networking capabilities.

The city's venerable Royal York Hotel, part of the CP chain, recently completed a $660,000 overhaul to its 77-room concierge section, known as Entree Gold. Guest rooms have been spruced up with new carpeting and upholstery. New amenities include umbrellas and CD/alarm clock radios. However, Entree Gold rates rose to $171 and $276, from $142 and $247.

At CP's Hotel Toronto East, a 20-room Entree Gold floor opened in March and like most other business class enclaves, offers exclusive checkin, a lounge serving free continental breakfast and hors d'oeuvres, a dedicated concierge and upgraded in-room amenities.