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New directions—Pacrim and Driftwood HALIFAX, NS—Glenn Squires, CEO of Pacrim Hospitality Services, spent the better part of a year travelling internationally as chair of the IHG Owners Association, and it changed his view of the world. “I made a decision to do two things: first, to enjoy the year; and second to use the year to transition the company,” he said. During his year as chair, from October 2011 until October 2012, Squires met hundreds of hotel owners from around the world, and was presented with a lot of opportunities. “There is such a diversity of owners, from individuals to sovereign wealth funds to royalty,” he said. It’s no accident that Pacrim announced last month that it would participate in a joint venture with Driftwood Hospitality Management. The company is no longer focusing mainly on the Canadian market, but is also looking at the U.S., South America, Central America, and the Middle East. The Driftwood/Pacrim international joint venture is expected to represent nearly $100 million in hotel real estate. It will target 100- to 300-room full-service and extended stay properties across Canada, the U.S. and select foreign markets. “[Driftwood and Pacrim] are philosophically
similar,” said Squires. Pacrim’s interests in the U.S. in the medium term are focused more on acquisition than development. “We have three hotels in the U.S., and if we increase that platform, it makes sense to partner with someone who has the infrastructure on the ground.” Brian Quinn, Driftwood’s executive vice president of development has similar sentiments. “Through this partnership, Driftwood is able to enter the Canadian market at an aggressive pace, further leveraging our flexibility and seizing strategic opportunities in real-time,” he said in a release. Together, the companies have 13,000 rooms with 5,000 employees predominantly in Canada and the U.S. “Our experience is on this side of the border,” Squires said. While Pacrim has concentrated on limited service properties such as Super 8s and Hampton Inns over the past 10 years, Squires’ roots are in full service, and he would like to go back to having more of these types of properties. “There are not a lot of them being built and the barriers to entry are higher,” he noted. He also sees a role for extended stay properties, particularly in the economy sector. “We have the only Candlewood in Canada and there’s a wide open market in Canada for that product,” he said.
With three properties already in the pipeline, the Driftwo o d / Pa c r i m JV will initially target new-build developments in several of Canada’s emerging areas, including: o Kingswood, Fredericton, NB o Bedford/Halifax, NS o Argentia, NL Glenn Squires o St. John’s, NL o Goose Bay, NL o Golden, BC International deals are also underway for Pacrim and Driftwood. Pacrim has recently entered agreements for the development of a 250-room InterContinental Hotel at Muscat Hill Golf and Country Club and a luxury seaside resort in Muscat, Oman. In addition Squires noted that Carlos Rodriguez, executive vice president of Driftwood is looking at properties in Costa Rica.
Best Western: Extended stay update Mark Williams, Best Western
TORONTO—“Everybody wants a piece of the extended stay market,” said Mark Williams, vice president, North American development for Best Western, on a recent trip to Toronto.
Not just for the oil fields Extended-stay properties are not just for areas like Fort MacMurray, AB, which are known to attract transient workers. They’re also going into city centres, where white-collar businesses are transferring or training employees. Those employees don’t
want to be dining out for breakfast, lunch and dinner on a long-term basis. “They can operate as hotels with enhanced rooms—guests can treat them more like a second home,” Williams said. Last year, Best Western announced an extendedstay prototype that could comprise as few as 20 rooms or all of the rooms in a hotel. There’s a lot of flexibility in the design. Best Western already has a 150-room full service hotel under construction in Fort MacMurray, where all the rooms are extended stay. “We’re gearing towards managers of oil and gas companies,” Williams said. A limited number of Best Western properties already have extended stay components, including Best Western PLUS Hospitality House in Manhattan, which is essentially a 37-room apartment building with bedrooms, living rooms and kitchens. In Myrtle Beach, there’s a Best Western on the beach with an apartment
component that is great for families. “We have the product, but we haven’t had a prototype. We want to bring [the prototype] out as a Best Western PLUS, as a solid upper midscale market offering,” Williams said. The growth potential for extended stay is strong in Western Canada. There is some interest in Atlantic Canada because of the oil and gas there, and there is interest in Ontario as well.
Canadian market appreciated Canada has an advantage, because financing for Best Western properties has always been very low, and construction did not slow down as much as it did in the U.S. “We are very appreciative of the Canadian market,” Williams noted. Best Western currently has 13 properties in the pipeline. The majority are new construction properties in Alberta and BC. The next property slated to open is in Rivière du Loup, QC. It’s Best Western PLUS—“almost a PREMIER,” said Williams. It will likely be Best Western’s 200th property in Canada.
Kong continues at the helm In other Best Western news, president and CEO David Kong has extended his contract and will continue to lead the brand through 2018. The announcement comes on the heels of Kong receiving a prestigious industry award.
Hotel Elan caters to business clientele Continued from page 1
With easy access to the restaurants on 17th Ave. and to 11th Street, a main artery downtown, Hotel Elan caters mainly to a business clientele. Business clients include executives from the oil and gas industry, IT firms, engineering companies, law offices and the film industry. “But on weekends, it’s good for romantic getaways, family vacations and girls’ weekends,” says Web. There are kitchens in 14 of the suites, including induction ovens, stovetops and fridges, and all rooms have microwaves. Seven two-bedroom suites feature private fitness areas with bikes, yoga mats, floor-to-ceiling windows, small TVs and resistance bands to
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aid in workouts. Bedrooms have a Italian-designed open concept closets—“so that people don’t forget things in drawers,” says Webb.
Thoughtful space planning “We put a lot of thought into how people use the space, and tried to meet their needs. There are plenty of plugs in the headboards, and side lamps as well as dedicated reading lights. And you can turn off all the lights with one switch.” Rates range from $170 to $250 on weekends, and from $220 to $400 on weekdays. “We are really optimistic and excited,” Webb says. “We’re the first hotel just off 17th Avenue and we’re thrilled to be here.”
Sarah Webb, Hotel Elan’s director of marketing
NEWS
BRIEFS
Austrian hotel seeking jester VIENNA—A hotel in Austria is seeking a modern-day court fool and looking for extroverted and musically talented applicants. The Rogner Bad Blumau in the province of Styria will pay the jester 1,400 euros a month, according to reports, and is welcoming creative costumes to the job interview. The hotel’s director, Melanie Franke, told the Austrian Times she was looking for someone creative and fun. “At the royal courts, jesters were a luxury that kings allowed themselves,” she said. “Today, the client is king.” The hotel was designed by famed Austrian artist Friedensreich Hundertwasser and Franke said a jester would fit its hotel’s colourful appearance.
Hotels.com Club Sandwich Index shows price changes TORONTO—Geneva has taken over the title of most expensive city in the world to order a club sandwich, which was previously held by Paris. According to the Hotel.com’s Club Sandwich Index (CSI), which uses the chicken, bacon, lettuce and mayonnaise staple as an affordability barometer, it costs and average of $31.34 in the Swiss City. The Genevan average is lower than last years’ most expensive, which was $32. 64 in the City of Light. Closer to home, Toronto and Vancouver saw average prices decrease from $15. 86 to $15.71 and $15.71 to $15.67, respectively. Calgary, Montreal and Halifax saw increases, coming in with CSI averages of $14.59, $16.51 and $12.65, respectively.
Shared Ownership Investment Conference moves to Miami MIAMI BEACH, FL—This year’s Shared Ownership Investment Conference has moved from Orlando to Miami Beach. It will be held Oct. 28-29 at the Eden Roc Renaissance, Miami Beach, FL. Delegates will hear the latest about shared ownership trends and opportunities, including traditional timesharing, resort conversions, fee-for-service, and fractional development. They will learn how projects are financed, and discover how timeshare sales and marketing practices are evolving, and their unique operating characteristics. The conference provides a chance to share insights and make valuable contacts, including developers, hoteliers, lenders and investors, vacation ownership experts, government tourism officials, and others. In addition, delegates will obtain complimentary research studies with a combined retail value of $850 including: o State of the Vacation Timeshare Industry: United States Study, 2013 Edition o Interval International U.S. Member Profile, 2013 Edition o Financial Performance Study, 2013 Edition o The Shared Ownership Resort Real Estate Industry in North America: 2013 For more information, phone: 305668-3495. Website: http://www.regonline.com/2013SharedOwnershipInvest mentConference.