SPECIAL REPORT : INDEPENDENTS
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Possati notes . “ Many travel agents are working from home . So we need to reach them there where they live . “
Capex flexibility rules Independents claim they spend as much money on capex as any branded hotel — but on their own terms .
“ We partnered to buy our Vail property at a bankruptcy in 2010 ,” Spencer says . “ We talked with major brands . They said they would fill us up with loyalty points . How will that monetize real estate ? We put in US $ 9 million and made certain bets on what would work . We decided to get the energy up in the lobby and tried to get the pool right . The brand would have said ‘ furniture package number 649 .’ We ended up selling US $ 25 million in real estate at the property .”
At Hersha ’ s Independent Collection , according to Ahmed , the approach to a “ five-year plan ” is very different and local . “ We ’ re installing bicycles at every member hotel , and they ’ re different colors in each market ,” he says . “ Our Brooklyn bikes have a basket with the Brooklyn Bridge on it .”
Independents also claim they can now find renovation financing far more easily . “ We have financed with everything from life insurance companies to CMBS to pension funds ,” says Bashar Wali , president of Provenance Hotels , Portland , Oregon . “ If we can show two to three years of trailing income , banks will be just as enthusiastic financing an independent . “
Indications are that the lines between brands and independents will continue to soften . One trend is networks of independents taking on more of the aspects of brands . At Destination Hotels & Resorts , which claims to be the world ’ s largest management company composed of independents , CEO Jamie Sabatier says the company definitely has a “ Destination customer ” and can bring in all the benefits of a larger company while at the same time allowing each property to have its own identity .
Bauers Palladio
Hotel & Spa in Venice uses images of its locale to compete . www . hotelsmag . com May 2014 HOTELS 27