NEW YORK— The 25th NYU Hospitality Industry Investment Conference drew to a close under a backdrop of uncertainty as very few hoteliers expressed any real hope of significant RevPAR or rate growth in the industry for the remainder of 2003. Among the highlights of the conference was Tuesday’s luncheon that featured a keynote address from former New York Mayor Rudolph Giuliani. The New York icon urged those in the private sector to be as proactive as the government has been in preparing for terrorism and helping consumers feel safe. Meanwhile, Jonathan Tisch, Chairman and CEO of Loews Hotels, detailed his work with the Travel Business Roundtable, calling the $4.1 trillion travel & tourism sector “America’s industry.” Tisch addressed the troubled state of the hotel industry and the urgency of getting key issues in front of lawmakers who can help. “These are some of the most challenging times we have ever faced, our elected officials need to make policy changes that will produce better results,” said Tisch. Tisch added that in a 36-hour period recently President Bush sent an unprecedented three cabinet members to meet with leaders from the hotel industry. Among the proposed law changes were a return to 100% exemption on business meals and travel expense, as well as a reintroduction of a spousal reduction. Some of the sessions featured more speculation among industry figures regarding if, and when, things may actually turnaround. During a “ A Different Take,” a seminar featuring unique hotel companies, Ian Schrager, Chairman and CEO of Ian Schrager Hotels, expressed some doubt. “I don’t think anybody really knows [when the economy will turnaround], there has been no basic fundamental good news,” he said. Adam Aron, Chairman and CEO of Vail Resorts, noted during the same session that recessions “have a carthartic effect on hotel companies by weeding out the fat.” Aron drew on his experience in the airline industry during such times, but insisted any comparisons to that troubled business were not valid. “We’re likely to see better RevPAR numbers [in the second half]only because of [favorable]comparisons, I don’t think we’ve turned the corner yet,” said Ed Walter, executive vp, CFO, Host Marriott Corporation, during a session entitled “The Bottom Line.” The conference was also host to some significant industry news. For example, MeriStar Hospitality announced during the conference that it had retained The Plasencia Group to market non-strategic 23 hotels located across the country, according to Lou Plasencia, president/CEO of the Tampa, FL-based brokerage, investment-banking, consulting and asset-management company. In addition, Choice Hotels International is ready to announce an agreement with TravelWeb to give consumers access to Choices branded hotels, company executives told HOTEL BUSINESS® here. Such an agreement comes just two weeks after the hotel company inked a similar arrangement with Travelocity, and marks just the second merchant hotel agreement by Choice. However, the company is looking to add other online travel sites to the mix in the coming months, according to David Goldberg, vp, strategy and business development for Choice.
Ian Schrager