PHOENIX—The groundbreaking of the Cambria Suites Phoenix-Desert Ridge, which took place during the 19th annual Lodging Conference marks a reinvention of the brand’s f&b offerings and a focus on the full-service segment for Choice Hotels International, Inc.
The four-story, 121-room hotel, a first for the brand in Arizona, will be home to the brand’s new national training kitchen. Celebrity Chef Michael DeMaria will develop and manage the culinary program for the Cambria Suites brand. This includes creating cuisine for all of Cambria Suites core and urban core a la carte menus, approving all local and regional additions to individual property menus, instructing future Cambria Suites’ culinary teams in the national training kitchen and managing the revitalized banquet and events culinary program.
An inductee to the Arizona Culinary Hall of Fame, DeMaria’s resume includes events ranging from intimate social gatherings to the PGA Tour’s Phoenix Open. His banquet and events menu for Cambria Suites includes selections like mushroom and basil meatballs with morel sauce; martini-glass salads with a beet and goat cheese combination; and half-cut burgers on a carving block display.
“The thing about this brand is it’s a better mousetrap; it’s a better hotel,” said Steve Joyce, president/CEO, Choice Hotels International. “I’ve been in the full-service business for 30-plus years: the food has always sucked and they always try to do too much.” He noted that the caliber of labor in hotel kitchens typically isn’t Johnson & Wales University-trained chefs. “You’re getting a guy paid by the hour,” he said, noting that hotels have to be able to maintain quality because of the high turnover in those positions. “We think we’ve got a good handle on that.”
Joyce said that what he loves about DeMaria’s work is he keeps it simple. “It’s the idea of simple food that’s tasty and well-presented, but that’s basic,” he said. “We’ve got a lot of chefs that have seen bad cooking shows and attempt to do that, and it’s just bad. If you look at our menu, it’s comfort foods—well seasoned, well-presented, but it’s all simple. That chef who was cooking at McDonalds, who got promoted to work our line—we can get them to execute and produce, and it’s good food.”
And, Joyce said, that’s key for owners, since many have considered F&B a losing proposition for hoteliers. “The nice thing for our owners is not only is it better done, but they’re going to make money out of it,” he said. They’re not going to make a fortune, but [they won’t be]losing money.”
Situated in one of the largest master-planned communities in Arizona, the Phoenix property is just minutes from Desert Ridge Marketplace, a shopping and entertainment destination; major employers like American Express and Henkel; the Mayo Clinic; and Choice Hotels International Western Corporate Headquarters. “It’s nice because it’s in our backyard so we’re a ready-made customer for them,” Joyce noted.
O’Reilly Hospitality Management, LLC, a Springfield, MO-based hotel and restaurant developer and management company, partnered with Choice on the deal. It is the second of two Cambria Suites to be developed and managed by the company following the Cambria Suites Hotel, Plano, TX.
While the Cambria Suites Phoenix-Desert Ridge will be the base of operations for the new F&B program, it’s also representative of a strategy to build the upscale, all-suite brand in key locations. “The brand started out with a bang,” Joyce said, adding that then the financial crisis hit. “When they started the brand, they did a lot of deals, but not in the markets you want to be in.”
Currently, the brand has 18 properties open across the country, representing nearly 2200 guest suites, and 26 properties in various stages of development, representing an additional 3700 guest suites. And, according to Joyce, these deals are happening in the right locations, with the focus on the top 50 MSAs. He noted that the brand has been building in key areas like New York and Miami and “we’re going to announce something on the West Coast momentarily.” He added that the brand has gotten a lot of interest and buzz, but the deals are “real” and not “drive by.” Said Joyce: “That’s why we’re pretty confortable that we will have 30 under construction in the next 12 months.”
The company has allocated some $250 million with much of that earmarked already. “The key in this business is to get to a level that you can actually market nationally to folks, corporations as well as travelers, and so I’m hoping if we keep it this level, and we get to 30 within 12 months, we’ll be at 100 in three years,” Joyce said. “When you’re at 100 in this segment, that’s enough to be a brand and to actually start making some noise.” Joyce pointed to the hotel’s Ascend Hotel Collection as inspiration. “That was 18 hotels three years ago,” he said. “It’s 110 today.”
Joyce noted that there’s an untapped set of customers that want Choice product in urban markets. “Cambria represents the new full-service hotel,” he said. “We stopped trying to do things that people don’t care about and we focus on what they do. The guest reaction to the brand is the highest I’ve ever seen.” While everyone’s focus is on millennials, Joyce said the brand appeals to them as well as baby boomers. “We think we’ve got the right formula and just need the distribution, and that seems to be coming pretty rapidly,” he said.
“Today is the day to do it because there’s going to be a tailwind for at least 3-4 years, and I think, probably more like six or seven,” he said. “Let’s get as much done as we can and benefit from that ride.”
While Joyce foresees good times ahead, he noted that, in thinking of the next downturn, the company’s strategy has changed to include other avenues like it’s technology platform, SkyTouch Technology, or its vacation ownership partnership with Bluegreen Corporation. However, lodging will always be its core, and Cambria Suites will be a major focus area in the coming years. “The company has always been known as a place of great value,” he noted. “But it’s where you’d stay when you’re going someplace else.” He added that Ascend and Cambria Suites have now made Choice the destination hotel as well.
“It’s a different look and feel for the company and the folks that work there,” Joyce said. He noted that when he joined the company five years ago, it was successful, but the employees didn’t really view themselves as being in the same league as some other hotel companies. “Now they do. It’s fun to see that whole transition.”