NEW YORK— Despite the cost, having a frequent-stay program will help mid-priced hotels stay competitive with higher tiered, full-service properties going forward. Panelists at the 24th annual NYU Hospitality Investment Conference agreed that those programs, along with providing more bang for the buck, is the best way to gain a competitive edge in today’s market. According to Jim Rosenberg, president/CEO, Winston Hotels, “You can’t be competitive without [a frequent-stay program].” However, he noted that “the cost [of the programs are]strong for this segment.” Indeed, while the investment may be pricey, it is well worth it, said Tim Sheldon, svp/brand management, Marriott International. Frequent-stay programs are an added benefit for mid-priced hotels. But it’s important for brands offering these programs to keep the costs down, said AH&LA President/CEO Joe McInerney, “especially as we come out of this recession.” Just as important as frequent-stay programs is providing value to guests, and selling room-nights not based solely on price. Panelists agreed that it is especially important for mid-priced hotels in this poor economy to be able to offer extras like free breakfast, as well as some other F&B outlet. A superior amenities package that includes F&B is key, said Rosenberg. That allows mid-priced hotels to emphasize something other than “cost per night per stay”— particularly when travelers in the business sector are trading down. Offering extras, even more so than frequent-stay programs, will enable mid-priced hotels to compete with higher tiered, full-service properties now and in the long-term, noted panelists, as it will help them capture and keep new customers. “It all comes down to value,” said Doug Vicari, svp/CFO, Prime Hospitality Corp. Lastly, when moderator John Paul Nichols, president/RCI Resort management and evp/RCI Leisure Property Management Division, asked panelists what the “next best thing” was for the mid-market segment, they all said “suites”— something that’s not new, but that’s been gaining ground over the last several years. Because guests desire a larger, more productive hotel room these days, the suites concept has been able to flourish by meeting that need, said panelists. “Clearly, it’s the biggest opportunity in the market,” said SHeldon. “It’s been the fastest growing segment in the last 10 years. There are second- and third-tier markets still available,” said McInerney. “There’s more tremendous growth ahead for [suites]… as people want bigger areas.”
