LAS VEGAS— Ramada Franchise Systems is setting out to dramatically upgrade its product, in a move that will cause under-par properties to exit the chain, the quality of conversions to improve and the number of full-service properties to increase. The news, previously reported in an exclusive interview in the March 21 issue of HOTEL BUSINESS®, was announced by Steve Belmonte, president/CEO of the Cendant-owned, mid-service brand, at the 2001 Ramada/RINA Conference held here recently at The Venetian. Coupled with Ramada’s race to produce a higher quality hotel product is the launch of a new television and print advertising campaign, starring the clay, cartoon character Mr. Bill, which begins this month on network and cable venues, as well high-profile consumer print publications. Belmonte’s move to improve the Ramada system began late last year, when he called together a number of executives involved in the brand. After an intensive, think-tank-style process, a number of changes were implemented throughout Ramada’s entire corporate body, all aimed at enhancing the Ramada product. The clean-up program has already had tangible effects; in the past six months, 42 properties have been booted from the 1,100-property Ramada system. • Franchisees attending the Ramada conference applauded the news of what Belmonte called the “Great Ramada Revival Plan,” a strategy launched “to toughen enforcement of quality standards, promote hotel development in under-represented regions and revamp the organization to promote better service to franchisees and guests.” While Belmonte later told reporters that owners of failing properties seldom attend the brand’s annual conferences, he did make it a point to speak directly to them at the conference. “You have been warned,” he said at the confab’s general session. “Unless you become part of this commitment, you will not be part of this chain for very long.” Properties, meanwhile, converting to the Ramada flag, will not open until all of the necessary upgrades to meet brand standards have been fulfilled. “Properties will not open until the vast majority of the [necessary]work has been completed,” said Belmonte, a message that also drew applause from attendees. “Truthfully, we have let properties open in the past on a basis of commitment, because we were trying to be a friendly franchisor,” Belmonte said. “Those commitments have not always been kept.” As for what kind of Ramada product will be opening under new-build status, Belmonte said he sees a clear shift toward full service, away from limited-service properties. “We anticipate a large change to the mix,” he said. “There has been a very significant shift taking place. Consumers calling into our call centers are saying, ‘Is there a restaurant, is there a bar?’ The consumer has said that they don’t want to get somewhere at 9 p.m. and find there’s no food available,” said Belmonte. “There is definitely a swing back to full-service lodging.” As a result, Ramada has 12 properties following its new Ramada Inns & Suites prototype model under development. • However, it wasn’t all warnings about quality at the conference, as attendees also got news that the number of their field support personnel has been increased, in order to assist properties in enhancing their revenues. As a result, two new senior corporate directors charged with supporting Ramada regional directors have been added to the ranks. Stu Sapp will lead the Western U.S. region, while Caryl Porter will oversee the Eastern U.S. in the newly created positions. Four regional directors have also been added to the field, bringing the number of Ramada personnel holding that title from 12 to 18, meaning that the number of properties in each region goes from 100 to 60. “We’ve increased the level of support to the highest ever,” said Mark Young, Ramada’s vp/operations. • As for Ramada’s new ad campaign, watch for Mr. Bill, the nostalgic cartoon character who often faced sadistic mishaps
