Marriott Dominates Buyers Performance Ratings

Marriott Dominates Buyers Performance Ratings Marriott International s brands swept first-place honors for nearly every tier in the U.S. Hotel Chain Survey, in a year when increasing revenues and rates are allowing hotels to invest more in renovations and amenities. With the exception of the luxury tier, in which Marriott s Ritz- Carlton Hotels brand placed second, and the midprice extended stay and economy tiers, in which Marriott had no brands in the running, travel buyers gave their highest scores to Marriott. In the 2006 survey, midprice Courtyard by Marriott and TownePlace Suites both of which were beaten in their tiers by other Marriott brands this year were the only brands to be ranked first. Sean Hennessey, president of New York-based Lodging Investment Advisors, said Marriott s scope is a benefit in keeping its edge, with the systems and sales force better able to cater to travel buyers. Travelers also are noticing adjustments recently made to the companies brands, said Mike Jannini, Marriott s executive vice president of global brand strategy and innovation. We ve made a boatload of changes across all of our brands 2007 U.S. Hotel Chain Survey Methodology Business Travel News U.S. Hotel Chain Survey is an annual measure of corporate travel buyers opinions of the lodging brands their companies use. Business Travel News sent an e-mail to 8,828 corporate readers responsible for hotel buying decisions, asking them to rate hotels with which they did business in the past year in six hotel segments: deluxe, upscale, midprice, budget/economy, and upscale and midprice extended stay. This year, BTN combined some categories it previously segmented, no longer making a distinction between upper upscale and upscale hotels, midprice with and without food and beverage hotels and budget and economy chains. Buyers rated hotels in each segment on six to 13 attributes, including quality of food, physical appearance, corporate rate programs, quality of facilities and overall price-value relationship. Ratings are presented on a numerical scale from one to five, with the number highlighted indicating the highest score for each attribute. Equation Research tabulated 690 responses. BTN reported results only for chains that achieved a significant percentage of usage. in the last two years, Jannini said. We went outside the industry and hired the best innovation firms to create very new approaches to guest room design and public spaces to make a much more engaging hotel experience. The company scored a double victory in the upscale tier with its JW Marriott Hotels and Marriott Hotels & Resorts brands tying for the top position. Westin Hotels, Hyatt Hotels and Hilton International which merged with Hilton Hotels early last year, and the two were separated by onehundredth of a point in the survey completed the top five. Unlike previous years, BTN did not differentiate between upper upscale and upscale brands, merging them into a single upscale tier. Neither of the winners in the two categories last year, Loews Hotels and Walt Disney World Resorts, reached the required usage threshold of 20 percent of survey respondents to be included in the 2007 results. Like the industry as a whole, the upscale segment showed strength in 2006. While occupancy for the tier showed only a slight increase, revenue per available room was up 9.7 percent for the upscale tier and 7.5 percent for the upper upscale tier, compared with an 8 percent increase in the entire industry, according to PricewaterhouseCoopers Lodging Industry Report and Forecast, released in December. Business travel really continued to pick up as 2006 went along, and all indications are that it will be another robust year in 2007, Hennessey said. People are making every effort to travel. With increased revenues, hotel companies have been more successful in convincing property owners to implement capitalintensive upgrades, Hennessey said. Hoteliers said those efforts are reflected in the survey results, as several brands showed acrossthe-board improvements from the Continued on page 17 UPSCALE ARRANGE ARRANGE FACILITIES FACILITIES FOR CORPORATE COMMISSION QUALITY HELPFUL PHYSICAL QUALITY OF QUALITY OF QUALITY OF OVERALL OVERALL INDIVIDUAL GROUP FOR RESORT NON-RESORT RATE PAYMENT OF COURTEOUS APPEARANCE IN-ROOM IN-ROOM BUS. BUSINESS PRICE-VALUE AVERAGE TRAVEL TRAVEL MEETINGS MEETINGS PROGRAMS SYSTEMS FOOD STAFF OF HOTELS AMENITIES AMENITIES CENTER RELATIONSHIP SCORE 1 JW MARRIOTT HOTELS 4.28 4.08 4.17 4.15 3.85 3.90 4.08 4.15 4.19 4.13 4.04 3.94 3.84 4.07 1 MARRIOTT HOTELS & RESORTS 4.28 4.13 4.14 4.16 3.85 3.89 3.93 4.20 4.12 4.09 4.12 4.04 3.90 4.07 3 WESTIN HOTELS 4.14 4.05 3.98 4.01 3.82 3.77 3.99 4.15 4.22 4.13 4.04 3.99 3.86 4.02 4 HYATT HOTELS 4.10 4.04 4.04 4.03 3.79 3.75 3.95 4.13 4.06 3.97 3.94 3.99 3.85 3.98 5 HILTON INTERNATIONAL 4.17 3.95 3.97 4.09 3.69 3.84 4.00 4.07 4.05 3.98 3.91 3.96 3.93 3.97 6 HILTON HOTELS 4.14 4.06 3.95 4.01 3.89 3.70 3.82 4.13 4.06 3.91 3.90 3.91 3.85 3.96 7 OMNI HOTELS 4.10 3.97 3.89 3.80 3.55 3.81 3.89 4.18 4.24 4.13 3.90 3.97 3.91 3.95 8 RENAISSANCE HOTELS 4.07 3.96 3.96 3.95 3.83 3.75 3.90 4.00 4.04 3.99 3.96 3.93 3.90 3.94 9 INTERCONTINENTAL HOTELS 4.07 3.76 3.80 3.79 3.68 3.86 3.78 3.92 4.04 3.94 3.82 3.80 3.84 3.86 9 W HOTELS 4.04 3.81 3.63 3.77 3.50 3.90 3.98 4.07 4.09 3.98 3.95 3.83 3.64 3.86 9 WYNDHAM HOTELS 3.92 3.81 3.81 3.82 3.78 3.71 3.80 3.96 4.04 3.94 3.92 3.82 3.83 3.86 12 EMBASSY SUITES HOTELS 4.07 3.84 3.53 3.73 3.69 3.67 3.46 3.94 3.83 3.82 3.82 3.74 3.80 3.77 12 SOFITEL 3.94 3.81 3.50 3.81 3.44 3.83 3.73 4.04 4.03 3.75 3.79 3.68 3.62 3.77 14 CROWNE PLAZA HOTELS 3.92 3.74 3.59 3.74 3.70 3.51 3.59 3.97 3.86 3.88 3.73 3.70 3.79 3.76 15 DOUBLETREE HOTELS 4.06 3.77 3.49 3.76 3.68 3.63 3.64 3.98 3.73 3.78 3.74 3.68 3.76 3.75 16 SHERATON HOTELS 3.92 3.85 3.71 3.74 3.71 3.70 3.48 3.71 3.54 3.59 3.56 3.54 3.63 3.67 17 RADISSON 3.78 3.62 3.46 3.48 3.51 3.44 3.45 3.70 3.53 3.53 3.60 3.49 3.59 3.56 10 Monday, March 5, 2007 www.btnonline.com Business Travel News

SpringHill Jumps Atop Combined Midprice Rankings Courtyard by Marriott s three-year reign at the top of the increasingly diverse midprice category ended this year as its sister brand, SpringHill by Marriott, edged past it in the U.S. Hotel Chain survey. The evolving SpringHill brand made the leap to the top after a fifth-place finish in its tier last year, receiving high marks for service, amenities and value. Courtyard was second, followed closely by Hilton Garden Inn and last year s winner in the midprice without food and beverage category, Country Inns & Suites. Hampton rounded out the top five. Although the hotel industry continues to distinguish between the midprice with and without food and beverage tiers, BTN this year merged them because the lines between the two are blurring. Midprice hotels without a full restaurant are enhancing their food offerings while the idea of a dedicated in-house restaurant is falling out of favor with many hoteliers, said Sean Hennessey, president of New York-based Lodging Investment Advisors. That model has faded, Hennessey said. It will continue to be around, because people will want a minimum level of food service, but for a lot of travelers, it s not the worst inconvenience if they have Continued on page 16 MIDPRICE ARRANGE ARRANGE FACILITIES FOR CORPORATE COMMISSION QUALITY HELPFUL PHYSICAL QUALITY OF QUALITY OF OVERALL OVERALL INDIVIDUAL GROUP NON-RESORT RATE PAYMENT OF COURTEOUS APPEARANCE IN-ROOM BUSINESS PRICE-VALUE AVERAGE TRAVEL TRAVEL MEETINGS PROGRAMS SYSTEM FOOD STAFF OF HOTELS BUS. AMENITIES CENTER RELATIONSHIP SCORE 1 SPRINGHILL BY MARRIOTT 4.26 3.90 3.81 3.83 3.63 3.73 4.15 4.23 3.93 3.90 4.02 3.97 2 COURTYARD BY MARRIOTT 4.27 3.97 3.78 3.78 3.79 3.62 4.09 4.14 3.90 3.86 3.97 3.94 3 HILTON GARDEN INN 4.27 3.92 3.83 3.76 3.63 3.62 4.07 4.16 3.86 3.88 3.92 3.91 4 COUNTRY INNS & SUITES 4.15 3.94 3.63 3.79 3.84 3.57 4.05 3.89 3.89 3.78 3.97 3.88 5 HAMPTON 4.27 3.92 3.64 3.75 3.75 3.38 4.03 3.98 3.81 3.70 4.01 3.85 6 FAIRFIELD INN BY MARRIOTT 4.12 3.81 3.65 3.73 3.73 3.41 3.86 3.77 3.67 3.61 3.80 3.75 7 COMFORT SUITES 4.12 3.79 3.74 3.63 3.63 3.33 3.98 3.72 3.50 3.57 3.87 3.72 8 HOLIDAY INN EXPRESS 4.09 3.79 3.57 3.68 3.62 3.17 3.94 3.77 3.62 3.62 3.79 3.71 9 FOUR POINTS BY SHERATON 4.02 3.78 3.59 3.60 3.60 3.53 3.81 3.64 3.48 3.50 3.65 3.66 10 AMERISUITES 3.90 3.63 3.42 3.70 3.46 3.29 3.73 3.56 3.64 3.55 3.70 3.63 11 HOLIDAY INN 3.94 3.80 3.60 3.58 3.71 3.31 3.83 3.43 3.43 3.51 3.61 3.61 12 RAMADA INN 3.68 3.63 3.56 3.33 3.12 3.38 3.73 3.32 3.33 3.43 3.48 3.46 13 COMFORT INN 3.90 3.56 3.36 3.35 3.48 3.19 3.67 3.40 3.22 3.24 3.42 3.44 14 LA QUINTA HOTELS 3.91 3.58 3.20 3.37 3.11 3.08 3.71 3.30 3.33 3.15 3.62 3.42 15 BEST WESTERN INTERNATIONAL 3.58 3.51 3.26 3.40 3.43 3.02 3.73 3.37 3.32 3.15 3.58 3.40 16 QUALITY INN 3.75 3.41 3.09 3.23 3.05 3.00 3.56 3.30 3.42 3.24 3.54 3.34 BUDGET/ECONOMY ARRANGE CORPORATE COMMISSION HELPFUL PHYSICAL OVERALL OVERALL INDIVIDUAL RATE PAYMENT COURTEOUS APPEARANCE PRICE-VALUE AVERAGE TRAVEL PROGRAMS SYSTEMS STAFF HOTELS RELATIONSHIP SCORE 1 TRAVELODGE 3.83 3.18 3.40 3.58 3.58 3.67 3.55 2 RAMADA LIMITED 3.64 3.17 3.88 3.69 3.50 3.21 3.49 3 DAYS INN 3.79 3.29 3.30 3.42 3.19 3.56 3.44 4 MOTEL 6 3.44 3.00 3.14 3.44 2.78 3.56 3.24 5 RED ROOF INN 3.44 3.00 3.14 3.28 3.17 3.17 3.20 6 SUPER 8 3.50 3.00 2.77 3.35 3.00 3.39 3.19 7 ECONO LODGE 3.09 3.00 2.90 3.09 2.55 2.73 2.89 12 Monday, March 5, 2007 www.btnonline.com Business Travel News

Four Seasons Nips Ritz-Carlton To Retain Hotel Buyers Deluxe Crown Four Seasons Hotels and Resorts retained its position at the top of the deluxe tier in a neck-and-neck battle with Marriott s Ritz-Carlton. With only three-hundredths of a point separating the brands final scores, buyer satisfaction with Four Seasons pricing and value was enough to offset Ritz-Carlton s higher-scoring amenities and service. This marks the second year in a row in which Four Seasons bested Ritz-Carlton in the U.S. Hotel Chain Survey. Ritz-Carlton held the title for the six years prior. The two brands won first- and second-place honors in nearly every category with the exception of corporate rate programs, in which Fairmont Hotels & Resorts took second place over Ritz-Carlton. Four Seasons began as the hotel for the business traveler, and our staff understands the need and expectations, and it s about service, said Barbara Talbott, Four Seasons executive vice president of marketing. The luxury tier in 2006 led the industry in occupancy, revenue per available room and average daily rate increas- Continued on page 16 DELUXE ARRANGE ARRANGE FACILITIES FACILITIES FOR CORPORATE COMMISSION QUALITY HELPFUL PHYSICAL QUALITY OF QUALITY OF QUALITY OF OVERALL OVERALL INDIVIDUAL GROUP FOR RESORT NON-RESORT RATE PAYMENT OF COURTEOUS APPEARANCE IN-ROOM IN-ROOM BUS. BUSINESS PRICE-VALUE AVERAGE TRAVEL TRAVEL MEETINGS MEETINGS PROGRAMS SYSTEM FOOD STAFF OF HOTELS AMENITIES AMENITIES CENTER RELATIONSHIP SCORE 1 FOUR SEASONS HOTELS 4.57 4.33 4.37 4.32 3.92 4.04 4.45 4.60 4.66 4.50 4.36 4.34 4.12 4.36 2 RITZ-CARLTON HOTELS 4.54 4.30 4.38 4.32 3.64 3.93 4.46 4.64 4.65 4.51 4.39 4.43 4.00 4.33 3 FAIRMONT HOTELS 4.38 4.16 4.16 4.16 3.71 3.81 4.15 4.44 4.35 4.14 4.00 4.05 3.89 4.12 UPSCALE EXTENDED STAY ARRANGE CORPORATE COMMISSION HELPFUL PHYSICAL QUALITY OF QUALITY OF OVERALL OVERALL INDIVIDUAL RATE PAYMENT COURTEOUS APPEARANCE IN-ROOM BUSINESS PRICE-VALUE AVERAGE TRAVEL PROGRAMS SYSTEM STAFF OF HOTELS BUS AMENITIES CENTER RELATIONSHIP SCORE 1 RESIDENCE INN BY MARRIOTT 4.31 3.96 4.02 4.33 4.31 4.21 4.17 4.12 4.19 2 TOWNEPLACE SUITES BY MARRIOTT 4.41 3.94 4.00 4.17 4.12 4.00 4.06 4.06 4.10 3 HOMEWOOD SUITES BY HILTON 4.32 3.83 3.81 4.05 4.14 4.05 4.00 4.00 4.03 4 SUMMERFIELD SUITES 3.91 4.00 3.43 4.00 3.82 3.82 3.91 3.91 3.87 5 STAYBRIDGE SUITES 4.00 3.78 3.54 4.06 3.67 3.83 3.67 3.67 3.78 6 CANDLEWOOD SUITES 3.86 3.57 3.80 4.00 3.79 3.38 3.38 3.71 3.69 7 HAWTHORN SUITES 3.83 3.45 2.83 3.92 3.67 3.45 3.64 3.50 3.59 MIDPRICE EXTENDED STAY ARRANGING CORPORATE HELPFUL PHYSICAL QUALITY OF QUALITY OF OVERALL OVERALL INDIVIDUAL RATE COURTEOUS APPEARANCE IN-ROOM BUSINESS PRICE-VALUE AVERAGE TRAVEL PROGRAMS STAFF OF HOTELS BUS. AMENITIES CENTER RELATIONSHIP SCORE 1 HOMESTEAD STUDIO SUITES 4.00 3.56 3.85 3.68 3.63 3.53 3.71 3.71 2 EXTENDED STAY AMERICA 3.43 3.38 3.52 3.32 3.18 3.14 3.30 3.33 Residence Inn, Homestead Pace Bouyant Ext. Stay Extended stay brands, running at record occupancy levels in 2006, showed almost across-the-board improvement in buyer satisfaction in the U.S. Hotel Chain Survey, with nearly all brands improving their score compared with last year s survey. Marriott s Residence Inn placed first in the upscale extended stay tier, which merged the upscale and upper upscale extended stay tiers used in previous years surveys. Marriott s other extended stay brand, TownePlace Suites ranked first in the upscale extended stay tier in the 2006 survey placed second. Third place went to Hilton s Homewood Suites, followed by last year s upper upscale winner, Hyatt s Summerfield Suites, and InterContinental Hotels Group s Staybridge Suites. IHG s Candlewood Suites and Hawthorn Suites rounded out the category. In the midprice extended stay tier, Extended Stay Hotels Homestead Studio Suites repeated its 2006 victory, obtaining the high score for every criterion. Extended Stay America, a sister brand to Homestead Studio Suites, finished second. Upscale extended stay properties reached record occupancy levels last year and all extended stay properties continued to operate at more than 10 percentage Continued on page 18 14 Monday, March 5, 2007 www.btnonline.com Business Travel News

SpringHill Leads Evolving Midprice Continued from page 12 to go to the T.G.I. Friday s around the corner. As a further indication, SpringHill garnered the top score in food quality despite being classified in the without F&B category last year, and Country Inns & Suites food quality also scored well. Although SpringHill s breakfast remains continental in nature, it was upgraded to provide seasonally appropriate food and attendants to help guests, said Marsha Scarbrough, Marriott s vice president of brand strategy. Choice Hotels Comfort Suites, which increased its score in every criterion from last year, also rolled out a hot breakfast, said Kimberly Shells, the brand s senior director of strategy. Expectations have really gone up in terms of what a complimentary continental breakfast means, said Rita Santelli, senior director of brand strategy for Choice Hotels Comfort Inn. When we rolled out a new breakfast waffles, fresh fruit and cereal, toast and muffins our guest satisfaction went up two percentage points, which represents more than 300,000 guests. Performance-wise, the tiers remain distinct, with midprice with F&B showing daily rate and revenue per available room growth a little softer than midprice without F&B. PricewaterhouseCoopers estimated 2006 annual average daily rate growth of 8.4 percent and RevPAR growth of 10 percent for midprice without F&B hotels and Four Seasons Rings Deluxe Bell Continued from page 14 es, according to PricewaterhouseCoopers. Estimates for the tier had occupancy up 1.3 percent, RevPAR up 11.1 percent and average daily rates up 9 percent, and those numbers are expected to remain strong. The luxury segment of the business has really been strong this year, said Sean Hennessey, president of New York-based Lodging Investment Advisors. Room rate growth should be on the order of 8 percent for the next two years. Mixed-use development continues to feature heavily in new deluxe properties and will help keep supply tight. Of all luxury projects under development, 26 percent contain residential components, much higher than any other tier. With little new supply, it s going to give those hotels really strong pricing power, Hennessey said. While Four Seasons is not known for its low rates, it outscored its competition both in its corporate rate programs and in the overall relationship of price and value. We have a more consistent quality for all of the chains, Talbott said. It s a fundamental need for the business traveler. Four Seasons also received top scores in the appearance of its properties and arranging group and individual travel. It and Ritz-Carlton tied in facilities for non-resort meetings. Ritz-Carlton scored better in the amenities categories, ranking highest in resort meetings facilities, food, staff, business center and in-room amenities both of the business and non-business variety. John Harper, vice president of international sales offices for Ritz-Carlton, said the brand, which has doubled from 30 to 60 hotels since 1999, makes sure the most rate growth of 6 percent and RevPAR growth of 8.3 percent for hotels with F&B. Several brands have ambitious development plans, including the seven-year-old SpringHill brand, now in the course of a major repositioning, Scarbrough said. As the brand grows, it will incorporate spa-like bathrooms and multifunctional lobbies with Internet connections and social areas and better use of light, she said. Our growth has been tremendous, with 155 hotels for us and 110 in the pipeline, she said. It s our next power brand. Courtyard scored highest in arranging group travel and was part of a three-way tie with Hilton Garden Inn and Hampton for arranging individual travel. Bates said the brand especially benefited from Marriott s new bedding program, and Courtyard will be introducing a new room décor package this year. Continued on page 19 high-demand amenities upgraded shower heads, flat-screen televisions and coffee makers are in every room. A coffee maker might sound like a basic addition, but Ritz-Carlton put a lot of effort into developing a specific presentation, making it subtle enough to fit in the room, Harper said. It took us a while to get the right product for them, but we have a neat coffee maker presentation, he said. Little things like that make a difference. Ritz-Carlton also has improved its business services, Harper said. For example, it now gives customers on the club floor e-mail addresses to which they can forward attachments on the road and have them printed and ready for their arrival to the room, he said. Four Seasons business services and such personal services as in-room dining and laundry are now 24-hour services, Talbott said. The brand also has introduced room service that can be ordered on the way to the hotel. 16 Monday, March 5, 2007 www.btnonline.com Business Travel News

Continued from page 10 2006 survey. The improvements also echo hoteliers internal metrics, they said. One such brand was Hyatt, which has invested more than $600 million in its North American hotels during the past year, including $60 million in the Grand Hyatt New York, said Tom O Toole, senior vice president of strategy and systems for Global Hyatt Corp. The company also invested in such technology upgrades as checkin through personal digital assistants. Hyatt s improvement in every category is the result, without hyperbole, of the most intensive and multifaceted effort in the company s history to upgrade our brand in every manifestation, O Toole said. Higher tiers continue to be the primary focus of hotels rolling out new brands. Seven of nine new brands introduced in 2006 were in either the upscale or luxury tiers. In 2005, 12 out of 15 of the new brands introduced were in those tiers. Meanwhile, hotels have focused on promoting amenities. Upscale and luxury are most definitely pouring more resources into comfort-type amenities, like flat-screen TVs and premium upgraded mattresses, said Priscilla Campbell, practice leader of hotel advisory services for American Express Business Travel. Hoteliers said they are reaping the rewards with improved guest satisfaction numbers. That said, buyers have faced a difficult fight in keeping rates down, and that is not likely to change anytime soon. Average daily rates for the tier in 2006 increased year over year more than the overall industry estimated increase of 6.8 percent. Upper upscale rates increased by 7.1 percent and upscale rates were up by 8.9 percent, and upper upscale rates should continue to rise at a pace above the industry average for at least the next two years, according to PricewaterhouseCoopers. Travel buyers ranked Hilton Hotels as the brand with the best corporate rate programs, and Hilton International was ranked as having the best overall price-value relationship. The two Marriott brands carried most of the rest of the top spots for the upscale criteria. Both tied for the best in arranging individual travel. Marriott Hotels & Resorts was rated highest in arranging group travel, facilities for non-resort meetings, staff, inroom business amenities and business center. JW Marriott was either number one or tied for the top spot in the remainder of the categories, with the exception of the hotels physical appearance, for which Omni Hotels was the top ranked. John Hackett, corporate director of sales and business travel for Omni, said that distinction could be attributed to the relatively short turnaround time for renovations. Since it is not as massive as Marriott, Hyatt or Hilton, Omni can complete brandwide renovations in a matter of years rather than a seven- or 12-year cycle, he said. Omni joined JW Marriott and Starwood Hotels and Resorts Westin brand in a Two Marriott Brands Top Upscale three-way tie for the best quality of in-room amenities. All three recently have upgraded their bedding, a major competitive point among hoteliers, but all also pointed to other amenity upgrades. The bed and bath wars are here to stay in the upscale segment, Omni s Hackett said. Beyond that, it becomes what you can do to find that point of differentiation. Hackett said part of Omni s rank undoubtedly came for the brand s free highspeed Internet offering, which still is a rarity among upscale brands (BTN, Feb. 5). This spring, your clients can earn triple the rewards starting with their second stay. Also, Omni overhauled its minibars to provide such high-end offerings as eucalyptus bath salt and gourmet chocolates, Hackett said. Westin, meanwhile, developed a recovery kits for guests suffering travel ailments like jet lag and stomach aches, said senior vice president Sue Brush. Continued on page 18 Triple the rewards. Infinite possibilities. Your clients can choose triple Choice Privileges points or triple Airline Rewards with our 11 airline partners starting with their second stay between February 1 ST and April 30 TH. There s no limit to how many rewards they can earn at any Comfort Inn, Comfort Suites, Quality Inn, Sleep Inn, Clarion, Cambria Suites TM or MainStay Suites hotel in the U.S., Canada, Caribbean or Mexico. Remember, the Choice Privileges rewards program is easy, fast and free to join. Call 800.228.5050 or visit choicehotels.com and click on Travel Professionals. 800.228.5050 choicehotels.com Click on Travel Professionals CI COMFORT INN CZ COMFORT SUITES QI QUALITY INN SZ SLEEP INN CC CLARION CR CLARION GALILEO EZ CAMBRIA SUITES MZ MAINSTAY SUITES EC EXCLUSIVELY CHOICE Guests earn triple Choice Privileges points or triple Airline Rewards for qualifying stays beginning with their second stay with arrival between February 1 and April 30, 2007. A stay is defined as any number of consecutive nights at one hotel regardless of check-ins or check-outs. Guests must notify the front desk at time of check-in whether they choose to earn points or Airline Rewards. See choicehotels.com for information on posting of points or Airline Rewards and other details. 2007 Choice Hotels International, Inc. All rights reserved. Business Travel News www.btnonline.com Monday, March 5, 2007 17

Extended Stay Occupancy Explodes Continued from page 14 points higher than the industry as a whole. With such high occupancy, hoteliers have said that room rates will be the primary method of achieving revenue growth in BUSINESS COMES FIRST. THAT S OUR MOTTO, TOO. coming years. Analysts said the tier can do so without driving away demand. There s not a substantial risk that you re going to see it deteriorating, said Sean Hennessey, president of New Yorkbased Lodging Investment Advisors. The segment is differentiated enough in terms of facilities from other hotels that you won t see cannibalization of demand. Laura Bates, senior vice president of extended stay for Marriott International, said she estimated extended stay demand to be about one-third of the market but less than Business Luxury Experience classic elegance in the heart of the city. Luxurious rooms, sophisticated dining, graceful service. Eligible corporate preferred guests receive double American Airlines miles.** $ RATES FROM 169 * RESERVATIONS 1-800-245-8673 thebiltmore.com 10 percent of the supply. Even though most brands have ambitious expansion plans that include many untapped urban markets, it s a balance that will continue to work in the hoteliers favor. Residence Inn topped nearly every criterion in the tier, scoring highest for its commission payment systems, staff, physical appearance, amenities, business center and overall value. We have the highest revenue per available room index of any brand in the industry, and guest satisfaction is in the 80s, Bates said. That s phenomenal for a brand that s 30 years old. The brand s ratings reflect its enhanced amenities, including free high-speed Internet access, a new hot breakfast and new bedding incorporated across all Marriott brands, she said. The brand will renovate lobbies and better optimize outdoor space with such amenities as fire pits and grills. TownePlace Suites scored highest in arranging individual travel. Peggy Fang Roe, Marriott s senior director for extended stay brand management, said the brand is repositioning itself and focusing on providing local knowledge to guests through staff expertise and floor-to-ceiling town maps in all lobbies. In addition, rooms are being redesigned to offer more workspace, she said. Seventy percent of the brand is scheduled to be renovated this year, and we ll be completely done by 2009, Roe said. It s unique for a brand to have that high of a percentage renovating at one time. On the midprice side, Extended Stay Hotels president Gary DeLapp said his company s Homestead Studio Suites was the first to offer wireless Internet access in all rooms and also has updated room design. ESH is working to bring that same standard of consistency to the Extended Stay America brand, which is about three times the size of Homestead, he said. ESH has focused more on acquisitions and improving existing properties rather than new builds. When we bought the company, the previous ownership focused on being developers, DeLapp said. We re focusing on how we operate the business, and it s a much bigger challenge. Upscale Upgrades ANCHORAGE BOSTON BOULDER BUFFALO CHICAGO CINCINNATI DURHAM LOS ANGELES MINNEAPOLIS NASHVILLE NEW YORK ST. LOUIS SCOTTSDALE More than 100 hotels worldwide. Visit millenniumhotels.com/onview to find out how your business at Millennium Hotels and Resorts supports the arts. In the Financial and Cultural Heart of Downtown Los Angeles *Valid through 5/31/07, subject to availability. Excludes tax. Some restrictions apply. **AA mileage promotion valid through 6/30/07. Continued from page 17 The key, Brush said, is keeping track of amenities guests want rather than trying to emulate other brands. For example, Westin has abandoned in-room fax machines in exchange for flat-screen televisions and high-speed Internet access. You can t keep adding costs to the economic models, she said. Sometimes we have to take things out in order to justify the cost of new things. Expanding on the Marriott brands top scores in facilities, Jannini said renovations have configured lobbies with social business zones, with better lighting, music and aromatherapy adding to the atmosphere. Similarly, Westin has spruced up its happy hour with local customs and foods, making it a more social event, Brush said. 18 Monday, March 5, 2007 www.btnonline.com Business Travel News

Midprice Brands Build On Breakfast Continued from page 16 Hampton, part of Hilton Hotels Corp., also scored high on its price-value relationship. The brand, with more than 1,400 hotels, is adding hot breakfasts and new bedding and bath amenities, said Judy Christa-Cathey, vice president of brand marketing for Hampton Hotels. Our breakfast and Internet are built into the cost. Corporations are looking at providing a quality stay and maximizing value, and that s why we yield some of the most-traveled premiums, she said. Country Inns & Suites, part of Carlson Hotels Worldwide, had the highest-rated commission payment system and also received high marks for its staff and overall value. Steven Mogck, Carlson s executive vice president of select service hotels, said one of the brand s most recent initiatives has been to develop a method to receive immediate feedback from guests. It allows us to adjust things quickly and turn lemons into lemonade, Mogck said. We ve seen some wonderful results. TRAVELODGE S TURNAROUND In the economy tier this year incorporating both the economy and budget tiers of years past Wyndham Worldwide brands dominated. Its Travelodge brand, which was at the bottom of the economy tier in the 2006 survey, surged to the top slot this year, boosted by high scores in arranging individual travel, appearance and overall value. Wyndham s Ramada Limited brand was second with high scores for staff and its commission payment system, followed by Wyndham s Days Inn, rated best for corporate rate programs. Last year s economy tier winner, Red Roof Inn, fell to fifth place, and 2006 budget winner Microtel Inns did not show enough respondent usage to be included. Travelodge has focused on breakfast and high-speed Internet access and was the first in the tier to mandate in-room safes in every property, said Ken Greene, president of Days Inn and group president of Travelodge and Howard Johnson. Ramada has focused on bed and bath improvements, and Mark Young, senior vice president for the Ramada brand, said its high staff rating could be attributed to improved training for franchisees and sharing best practices among managers. While the economy level has been the weakest performer industrywide for a number of years, according to LIA s Hennessey, Travelodge is a good example of breathing new life into the tier, Greene said. The brand jettisoned more than 120 hotels it deemed of poor quality, representing about one-third of domestic properties, and is replacing them with higher-quality properties. Similarly, Howard Johnson did so with about 40 percent of its system, he said. We ve brought the system up over the last three years, and we re just now starting to see the impact, Greene said. There s been double-digit RevPAR growth and significant reservation revenue growth. Ramada has been on the same path for several years, having pared to about 600 hotels from about 1,000 hotels in 2000, including reducing Ramada Limited properties from about 350 to 250, Young said. Hennessey said the development picture for economy properties could be a win in the long run for brands looking to secure more corporate travel. It tended to be more older and tired as FLEXIBLE, MULTITASKING, INNOVATIVE AND THAT S JUST THE CHEF. ANCHORAGE BOSTON BOULDER BUFFALO CHICAGO CINCINNATI DURHAM LOS ANGELES MINNEAPOLIS NASHVILLE NEW YORK ST. LOUIS SCOTTSDALE More than 100 hotels worldwide. Visit millenniumhotels.com/onview to find out how your business at Millennium Hotels and Resorts supports the arts. a group, but we re starting to see some more growth in the pipeline, Hennessey said. It will keep room rate growth down because of supply but also will provide a better product for corporate travelers. The quality might be as such that they might get a stronger look from corporations. Wait Until You See Our New Space Featuring a top-to-bottom renovation of meeting space and guest rooms, an award-winning new chef and the beautifully restored landmark Hudson Theatre. IACC-accredited conference center, dynamic Midtown location. TO BOOK A MEETING 1-212-789-7546 millenniumbroadway.com On W. 44 th Street in the Heart of Times Square Earn incentives. Call 1-800-920-WLMP. Business Travel News www.btnonline.com Monday, March 5, 2007 19