INDIANAPOLIS— White Lodging Services Corp. is banking on an old standby— the Marriott International name— as it opens and operates new properties across much of the lodging spectrum. To this end, its latest venture here— the 615-room Indianapolis Marriott Downtown— exemplifies the rule rather than the exception to the firm’s operating credo. As White Lodging Services Corp. Chairman/CEO Bruce White noted, “Culturally, White Lodging Services and Marriott have proven to be a good fit, thanks to numerous synergies. Over the years we’ve found our relationship to be a real ‘value’ proposition.” Clearly, one of the most basic of those synergies White spoke of might well be the fact both organizations are “in it for the long haul.” In White Lodging’s case, that “long haul” could be just a hair short of forever, considering the owner/operator “has never sold-off a hotel [in the 15-year history of the Merrillville, IN-based company].” That sense of long-term commitment to the city, the system and the industry is particularly evident in the development and operation of the Indianapolis Marriott Downtown, the newest addition to the 69-property White Lodging portfolio. But while the development of this hotel— mounted in partnership with Kite Cos. and REI Investments— stands as one of his company’s most ambitious to date, White maintained it in no way marks a departure from the firm’s long-standing business plan of adding hotels where, when and at what level they make the most sense. As such, he said the company will continue to open, own and operate select-service facilities as it has historically done, but at the same time it also has a half dozen, full-service properties well along in the pipeline. To White owning and operating hotels is viewed as something akin to a family affair. “Hotels are a lot like children; each one can be different, but you have to love them all,” he said. Of course, he allowed that when those “children” carry the Marriott family name, it just might make it a little easier for almost all concerned to “love them.” White explained that “it was more than instrumental, it was necessary to get the Marriott flag on this property,” allowing it to more effectively compete with a trio of other convention-center-connected properties such as the Westin, Hyatt Regency and Crowne Plaza. Obviously, the Indianapolis city fathers knew how to show their “love” for the new kid on the block, ponying up cash incentives, tax abatements, land rights and enclosed-walkway connections to the recently expanded Indiana Convention Center and RCA Dome as well as to the parking facilities across the street. In return, it has been estimated that the new full-service Marriott should positively impact the local economy to the tune of roughly $51 million annually. Similarly, the project stirred some “parental” affections within Marriott International as well, what with the Washington, DC-based mega management organization also kicking in with some financial stimulus. However, this fiscal show of affection is also not exactly unwarranted, since the Marriott banner is currently hoisted over 90% of the White Lodging portfolio. The history between itself and White Lodging aside, Marriott has to view any participation in the Indianapolis Marriott Downtown as a sound business investment. Not only is this new property the largest hotel in the state, but it also features the largest hotel ballroom at 21,000 square feet. Moreover, there’s no question the new property has gotten off to a fast start, and, in fact, seems primed to surpass optimistic pre-opening projections. According to Dave Sibley, general manager, occupancy for the first four weeks— the hotel opened Feb. 26, 2001— averaged 67.3%, followed by an average occupancy level of 56.1% over the next four weeks, taking it through the Easter/Passover holiday period. Projected occupancy for year’s end is 69.9%, as compared with a pro-forma for the property of 62%. Sibley further pointe
