THE MAGAZINE OF THE WORLDWIDE HOTEL INDUSTRY
EDITORIAL Jeff Weinstein , Editor In Chief 1.312.274.2226 E-mail : jweinstein @ hotelsmag . com
Ann Bagel Storck , Managing Editor 1.312.274.2209 E-mail : astorck @ hotelsmag . com
Nathan Greenhalgh , Associate Editor 1.312.274.2229 E-mail : ngreenhalgh @ hotelsmag . com
Dani Friedland , Assistant Editor 1.312.274.2223 E-mail : dfriedland @ mtgmediagroup . com
Queenie Burns , Vice President , Design 1.312.274.2216 E-mail : qburns @ mtgmediagroup . com
Steve Vanden Heuvel , Senior Art Director 1.312.274.2218 E-mail : svandenheuvel @ mtgmediagroup . com
Bert Ganzon , Senior Art Director 1.312.274.2227 E-mail : bganzon @ mtgmediagroup . com
Bill McDowell , Vice President , Editorial Director 1.312.274.2201 bmcdowell @ mtgmediagroup . com
CONTRIBUTING EDITORS Mary Gostelow , Adam Kirby
PUBLISHING Dan Hogan , Vice President , Publisher 1.312.274.2221 dhogan @ hotelsmag . com
INTERNATIONAL ADVISORY BOARD
Nakul Anand Executive Director , ITC Hotels Ltd ., Gurgaon , India
Stephen Bartolin Chairman and CEO , The Broadmoor , Colorado Springs , Colorado
Eric Danziger President and CEO , Wyndham Hotel Group , Parsippany , New Jersey
Geoffrey Gelardi Managing Director , The Lanesborough , London
Laurence Geller President and CEO , Strategic Hotels & Resorts , Chicago
Kirk Kinsell President , the Americas , IHG , Atlanta
Alex Kyriakidis President and managing director , Middle East and Africa , Marriott International , Dubai
Christopher Nassetta President and CEO , Hilton Worldwide , McLean , Virginia
Monika Nerger Chief Information Officer , Mandarin Oriental Hotel Group , Atlanta
Paul Sistare President and CEO , Atlantica Hotels International , São Paulo
Kathleen Taylor President and CEO , Four Seasons Hotels and Resorts , Toronto
Susan Terry Vice President Culinary Operations , Hyatt Hotels North American Operations , Chicago
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WINNING
THE BATTLE
Being based in Chicago , I have opportunities for semi-regular meetings with hometown hotelier Laurence Geller , the irrepressible CEO of Strategic Hotels & Resorts . I know him as a caring gentleman who also likes to wax nostalgic about the past , present and future of the hotel business . The owner of 17 hotels today is also recognized as an outspoken maverick who constantly wants to question the status quo in a capital-intensive business as he battles the brands over fees and the way they manage his assets , which he says are now valued at somewhere between US $ 4 billion and US $ 5 billion .
In my last few meetings with Geller , he has been unendingly enthusiastic about what he views as a systemic change in the way owners and operators work together , likely manifested by both sides being bloodied in the Great Recession of the past five years .
Geller says the hotel industry has changed almost completely — and for the better — pointing to a new generation of brand leaders fighting through this mess without the baggage of the previous generation . He believes traditional confrontations have also eased because chains now must compete for new growth via a smaller pool of mega-owners , which has paved the way to a more collaborative operating environment .
In this new world , Geller , who is a fanatic about industrial engineering , is able to implement food-purchasing and labor-saving systems he claims save him between 200 to 300 basis points in margin . With palpable passion from across the conference room table
alongside his chief lieutenant of asset management , Geller tells me this new era of cooperation is nothing less than “ stunning .” It is the first time since 1973-74 , when big hotels started to be built again , that he is witnessing an operational sea change . “ This is radical ,” he enthuses .
In the opening story of this month ’ s Global Update section ( p . 10 ), I provide more details about Geller ’ s tough-asnails approach to asset management . I think it is important to recognize and publicize the opportunities his ideas represent . In fact , the approach should be a requisite of entry for both owners and operators .
There are a few other successful owners who are zealots as asset managers , all of whom have lessons to share and recognize that the time is right for owners and managers to agree on better ways to operate and profit .
Geller , now 64 , concludes that he is glad to see this development during his career . Let ’ s hope the pack follows .
Editor In Chief www . hotelsmag . com July / August 2012 HOTELS 7