Lodging News - June July 2017

JUNE / JULY 2017

Smart Rooms Just Got Brighter

HOSPITALITY TRENDS 2017

see also Restrictive Scheduling OSHA ENFORCEMENT

2016 Lodging Survey

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Lodging News | JUN / JUL 2017

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Provenance Hotels Sayler’s Old Country Kitchen Seaside Lodging LLC Shari’s Café & Pies Uber Vip’s Industries

CHECKING IN ABOUT

Lodging News is published six times a year by Oregon Restaurant & Lodging Association (ORLA), 8565 SW Salish Lane, Suite 120, Wilsonville, Oregon, 97070, 503.682.4422, 800.462.0619.

To learn more about ORLA log on to OregonRLA.org.

PUBLISHER JASON BRANDT / PRESIDENT & CEO

JBrandt@OregonRLA.org

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EMBASSY SUITES BY HILTON LOS ANGELES DOWNEY, CA PHOTO CREDIT: The Allied Group

LORI LITTLE / EDITOR

LLittle@OregonRLA.org

IN THIS ISSUE | JUNE / JULY 2017

HEIDI JANKE / DESIGN

HJanke@OregonRLA.org

MEMBERSHIP

To become a member of the Oregon Restaurant & Lodging Association, please contact Jennifer at JStarr@OregonRLA.org or 503.682.4422.

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FEATURE 16 SMART ROOMS JUST GOT BRIGHTER Hospitality Trends for 2017 When we think about technology, many industry professionals focus on things like Wi-Fi, Bluetooth, touch screens and digital thermostats. However, many of the most innovative technological advancements transpiring in the renovations arena are what we refer to as “not-so-provocative” products.

541.968.3544 Maggie.P@MtAngelPub.com

SUBMISSIONS

To submit articles or other editorial input, please contact Lori at LLittle@OregonRLA.org.

ORLA BOARD OF DIRECTORS

Vijay Patel, Chair, A-1 Hospitality Michael Carbiener, Vice Chair, Oswego Lake Country Club Zach Poole, Secretary, Pig ‘N Pancake Buggsi Patel, Treasurer, BHG Hotels Chris Bebo, Provenance Hotels Richard Boyles, InnSight Hotel Management Group Lucinda DiNovo, The Mill Casino Hotel Treva Gambs, Gamberetti's Italian Restaurant Erin Gilchrist, Bandon Dunes Golf Resort Terry Goldman, DoubleTree by Hilton Portland Jim Hedlund, Bugatti’s Family of Restaurants Wray Hutchinson, Buffalo Wild Wings Vickie Irish, Shari's Restaurant Group Steven Johnson, Vip's Industries Masudur Khan, Seaside Lodging LLC John Lenz, Jaspers Cafe Kent Lewis, Anvil Media Bobbie McDonald, Sysco Jennifer Nelson, Inn at the 5th Komal (Tina) Patel, ALKO Hotels (Ex Officio) Dani Rosendahl, On Deck Sports Bar and Grill Michael Rowan, Deschutes Brewery Jerry Scott, Elmer’s Restaurants Randy Xavier, Food Services of America

PRESIDENT'S PERSPECTIVE 6 OREGON’S TOURISM INCLINE CONTINUES

GOVERNMENT AFFAIRS

8 LEGISLATIVE UPDATE ORLA on the Front Lines Advocating for Our Members 11 RESTRICTIVE SCHEDULING ORLA is Asking for Employees and Employers to Make Their Voices Heard 12 LEGISLATIVE SUMMIT ORLA Visits Capitol Hill 14 OSHA ENFORCEMENT ACTIONS Getting Up to Speed on Oregon OSHA’s

New Recordkeeping and Reporting Rules

MEMBERSHIP

20 2016 LODGING SURVEY Major Findings of What’s “Inn” at Hotels 22 BUSINESS PERSONAL PROPERTY NIGHTMARE Navigating Personal Property Tax 24 MAKING TIME TO TALK Reducing Areas of Risk 27 LODGING PERFORMANCE REPORT Hotel Benchmark Data 27 NEW MEMBERS Welcome to the Association 29 NEWS BRIEFS Information From Around the Industry 29 CALENDAR Industry Events and Activities 31 MEMBER SOLUTIONS ORLA's Endorsed Service Providers OregonRLA.ORG

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Oregon’s Tourism Incline Continues As we all prepare for another fruitful travel season, it should be welcome news that positive metrics continue their upswing within our great state. Calendar year 2016 marked the seventh consecutive year of growth in Oregon’s tourism sector. Travel related spending increased by nearly $500 million last year reaching a record of $11.3 billion. Oregon’s tourism industry employment also rose to more than 109,000.

As the tourism industry grows so does Oregon’s hospitality industry as 54 cents of every tourism dollar is spent in our state’s restaurant and lodging properties.

One of the most powerful attributes to Oregon’s tourism economy continues to be its export oriented nature. By approaching tourism promotion like a business, we continue to create significant multipliers on dollars spent out of state both domestically and internationally to bring dollars from outside Oregon into our statewide economy. Those dollars are driving results for local communities across the board and trends point to continued success for the foreseeable future.

The numbers released for 2016 by Dean Runyan Associates represent a 4.3 percent increase in spending compared to 2015. Oregon’s lodging properties hosted 28.4 million overnight visitors with lodging property revenue throughout the state increasing by eight percent.

Domestic air travel statistics also show positive signs for Oregon as air arrivals to our state grew by 10.5 percent in 2016 compared to 2015.

With such a rosy outlook what challenge should savvy industry leaders be looking to solve? Our signs point to workforce shortages as the #1 issue which will directly impact the ability of Oregon to adequately accommodate the needs of our over 28 million overnight visitors each year.

exploration, development, and advancement opportunities.

Executive Director Wendy Popkin is hard at work launching a new avenue for career exploration in Oregon’s high schools through the approval of a new Hospitality Tourism and Management program as a secondary pathway supported by the Oregon Department of Education. The program, developed by AHLEI, syncs up well with ORLAEF’s management of the ProStart culinary program which currently serves 3,000 students in 36 Oregon high schools.

In addition, ORLAEF has officially launched a new career development tool - Guest Service Gold Tourism® Oregon Edition. The new product provides an opportunity for industry professionals to earn their internationally accredited guest service professional designation, a credential they carry with them to all future industry opportunities. You can learn more about this new development tool at OregonRLA.org/ ORGUEST. And lastly, we are very excited to continue our strong partnership with Oregon State University’s Cascade campus in Bend. The four-year degree program focused on hospitality is a great pathway for career advancement. Joining OSU-Cascades is Marylhurst University in the Portland Metro area which has officially launched a new four-year hospitality management program beginning this Fall.

As we wrestle with workforce shortages please know we look forward to creating exploratory, development, and advancement opportunities for Oregon’s hospitality industry.

For more information on the current efforts being undertaken

by ORLAEF, please email Executive Director Wendy Popkin at wpopkin@oregonrla.org > CONNECT JASON BRANDT • JBrandt@OregonRLA.org

Current industry estimates, provided by an OSU-Cascades Hospitality Management study, suggest we have approximately 15,000 job openings in Oregon’s hospitality industry alone.

And estimates go on to suggest that the labor shortages may persist well into the future. To help address this challenge, the Oregon Restaurant & Lodging Association Education Foundation (ORLAEF) is working diligently to bolster career JASON BRANDT, PRESIDENT & CEO OREGON RESTAURANT & LODGING ASSOCIATION

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Lodging News | JUN / JUL 2017

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GOVERNMENT AFFAIRS

LEGISLATIVE UPDATE

ORLA ON THE FRONT LINES ADVOCATING FOR OUR MEMBERS

N

ow that we have passed the deadline for first Chamber, the following represents the status, as of this writing, of the key bills we are currently following in the Oregon State Legislature.

PAY EQUITY HB 2005 – Provides definitions relating to comparable work for purposes of pay equity provisions. Adds additional remedies for pay equity and wage-related violations that include right to jury trial and right to compensatory and punitive damages. ORLA opposes this bill.

OREGON EDITION

SB 828 has been moved to the Senate Rules Committee with a “do-pass” recommendation. If it passes in the Senate Rules Committee, it will move to the Senate floor and then to the House for review.

There have been numerous amendments and revisions to this bill including reducing the predictability pay from four hours to one hour, eliminating the private right of action, and including a permanent statewide preemption on local scheduling ordinances.

HB 2193 has been moved to the House Rules Committee and is in a holding pattern awaiting a vote.

This bill was moved to House Revenue Committee, but requires a 3/5ths vote of the Chamber (36/60 votes in the House and 18/30 in the Senate). It does not appear 06515WKB01ENOR likely it will receive the required number of votes and will likely die in committee.

RESTRICTIVE SCHEDULING SB 828 & HB 2193 – Require employer to pay employee if employee is scheduled or called in to work but, due to employer, does not work entire shift. ORLA opposes these bills due to their restrictive and punitive nature and because research has shown that three out of four employees do not want the government interfering with their work schedules.

8 Lodging News | JUN / JUL 2017

have allowed cities, counties and other municipalities to use lodging taxes for purposes other than what has traditionally been defined as tourism related, including beautification projects and sidewalks.

This bill was not passed out of committee and is effectively dead.

HB 2049 – Lodging Tax & OTCs; Expands definition of "transient lodging intermediary" to include person that requires transient lodging provider to use specific third-party entity to collect consideration for occupancy of transient lodging.

ORLA supports this bill with amendments.

Those amendments were made thanks to ORLA’s involvement and input. The bill is currently in the House Revenue Committee.

This is a bill that was going to pass this session no matter what efforts were done to kill it. The bill passed the House 36-24 and is currently in the Senate. By working with the Senate leadership, and with numerous amendments and revisions, the business lobby believes it has the best possible version of this bill moving forward.

PAID FAMILY LEAVE HB 3087 – Creates family and medical leave insurance program to provide covered employee with portion of wages while on family medical leave or military leave.

ORLA opposes this bill.

Tourism

SB 745 – Establishes Ocean Beach Fund.

Directs amount of transient lodging tax revenues from state recreation area lodgings along ocean shore received by State Parks and Recreation Department to Ocean Beach Fund. Directs department to spend moneys from fund for expenses of managing state recreation areas along ocean shore. ORLA opposes this bill.

TOURISM HB 2744 – Amends definition of “tourismrelated facility” to include improvements to real property that have substantial purpose of supporting, promoting or accommodating tourism or tourist activities.

ORLA opposes this bill. This bill would change the definition and allow lodging taxes to be used for benches, light posts, and hanging baskets.

This bill would set a dangerous precedent of carving out lodging tax money for specific areas of the state and allow the money to be used for tasks or items other than what is expressly outlined in the 2003 legislation on lodging tax revenue and the distribution and purposes.

Participant’s Workbook

This bill was not passed out of committee and is effectively dead.

HB 2768 – Expands definition of “tourism promotion” for purposes of local transient lodging tax revenue expenditures.

ORLA opposes this bill. This bill would

The bill passed Environment & Natural Resources Committee and was moved to House Revenue. This bill is likely dead in the Senate Finance Committee.

HB 3101A – Facility Fees; Prohibits hotels or inns from charging facility fees in addition to price of guest room rental unless facility fees are disclosed prior to guest room reservation or rental. ORLA opposes this bill.

This bill was amended so that facility fees were not prohibited but lodging operators must disclose any facility fees to guests prior to their room reservation or rental.

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It is currently scheduled for a work session and possible Public Hearing in the Senate Committee on Business and Transportation.

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This bill would have effectively eliminated the employers’ ability to fire an employee for using marijuana. There was a Public Hearing and Work Session in Judiciary. This bill was not moved and is dead.

HEALTHCARE SB 997 – Establishes penalty to be imposed

by Department of Consumer and Business Services on employers that offer health insurance coverage to employees but that have employees working at least 20 hours per week who receive healthcare coverage through medical assistance program. ORLA opposes this bill. This bill would penalize employers who offer healthcare coverage to employees but the employee chooses the Oregon Health Plan instead.

This bill did not move out of committee and is effectively dead.

For more information, please visit OregonRLA.org/GA or email Astley@OregonRLA.org. LN GREG ASTLEY,

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Lodging News | JUN / JUL 2017 OregonRLA.org/GOLF 10

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GOVERNMENT AFFAIRS

Restrictive Scheduling

ORLA is Asking For Employees And Employers to Make Their Voices Heard

T

here are two bills in the Oregon House and Senate, HB 2193 and SB 828 respectively, placing restrictive scheduling requirements on employers in certain sectors, including restaurants; at the same time, implementing punitive penalties and unfair reporting requirements for businesses.

ORLA opposes HB 2193 and SB 828 and is asking for employees and employers to make their voices heard on these critical bills.

A stated goal of these bills is to help workers balance the demands of their jobs with family responsibilities. However, the actual result is reducing the flexibility of employers to make important business decisions, and employees who chose flexible jobs for that reason.

Adopting one-size-fits-all regulations hurts all Oregon businesses and employees.

• Employees and employers shouldn’t be penalized for bad weather. Severe weather has an adverse impact on businesses because it suppresses demand.

For some businesses, the added costs would make it difficult to stay in business.

• Employees and employers should be able to adjust to changes in supply and demand. Demand is not always predictable. Anything can affect consumer behavior, and businesses must have the flexibility to adapt in order to remain viable.

• Employers shouldn’t be penalized for making employment decisions.

This bill would penalize employers for “retaliation” against employees for asking for scheduling changes, even when the employee is wrong about their claim and there is no retaliation. This puts employers in a difficult position of not being able to make the choices right for their businesses, for fear of being charged with an unlawful employment practice.

• Employees and employers benefit from flexible hiring and need-based driven schedules. Flexibility in scheduling

for both employees and employers is essential to expanding a small business. In addition, penalties for hiring temporary or seasonal employees result in less hours for all and poor customer service for the business’ guests.

• Employees and employers should be able to deal with unexpected life events. Scheduling mandates make it harder for employers to approve lastminute time-off requests.

ORLA recently conducted a scientifically significant study in the Portland Metro Area of restaurant employees on their work environment, including scheduling practices.

Among other findings: • 85 percent say the way their job is currently scheduled allows them to choose how they spend their time and enjoy life • 84 percent say they can talk to their employer or manager and give input about the work environment, scheduling needs and what employees need to do a good job at work • 89 percent say there is no change needed or only minor change needed to improve the effectiveness of how often employers change the work schedule In addition, a recent report from the California Retailers Association, approximately one year after the implementation of restrictive scheduling, shows it is not working for either employees or employers.

From the report (emphasis added): “FRE (Formula Retail Employers) Employees have encountered problems with scheduling flexibility and lifestyle changes, including but not limited to the demands of school, parenting, caregiving, and potential unexpected and changing daily responsibilities. In addition, FRE Employees (especially part-time employees) in need of extra income are having more difficulty adding extra work hours.

Moreover, FRE Employers have experienced added unnecessary administrative burdens, removal of their ability to be flexible in running their businesses with changing economic and inventory demands, increased administrative and penalty costs for Predictability Pay and scheduling mandates, and unreasonable interference in their communication and relationships with their employees – many of whom went into retail for the scheduling flexibility due to school, family, and lifestyle choices.

Additionally, the impact upon the local economy could become significant with decreased retail profitability, lower retail sales taxes, decreased customer service, and the reduction in work hours and income to FRE Employees across the City.”

We are providing legislators with these surveys and reports and are asking them to oppose SB 828 and HB 2193. There is a website for employees and employers, both to visit and learn more about these bills and their negative impact on flexible scheduling: WeWorkForOregon.com.

Go there today and use the “Take Action Now!” widget to contact legislators and tell them you’re opposed to these bills and the harm they will do to employees and Oregon’s restaurant industry.

It is clear there is little or no change needed in how scheduling is handled between employees and employers. The kind of broad, sweeping changes these two bills would make will harm employees, employers and customers.

No state has adopted a statewide predictable scheduling policy. Oregon shouldn’t be the first. LN GREG ASTLEY, OREGON RESTAURANT & LODGING ASSOCIATION

> CONNECT GREG ASTLEY • Astley@OregonRLA.org

OregonRLA.ORG

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GOVERNMENT AFFAIRS

with our Congressional delegation and their staff, including:

Legislative Summit ORLA Visits Capitol Hill

R

ecently, ORLA members and staff went to Washington, D.C. to talk to Oregon’s U.S. Senators and Representatives. The trip was part of the American Hotel & Lodging Association (AHLA) and Asian American Hotel Owners Association (AAHOA) 2017 Legislative Action Summit, which included a day of meetings, presentations and networking, and a day of meeting

• • • • •

U.S. Senator Ron Wyden U.S. Senator Jeff Merkley U.S. Representative Greg Walden U.S. Representative Suzanne Bonamici U.S. Representative Kurt Schrader

We covered the following issues with all the members and their staff: Promoting Tax Reform The hotel and lodging industry is made up of a wide array of corporate structures and business models with many of them falling under S corporations, partnerships, LLC or LLP or other non-C Corporation versions. We asked our Senators and Representatives to make sure they consider these when looking at tax reform and specifically, to protect the 1031 exchange which helps create jobs and grow the lodging industry in Oregon.

Stop ADA Drive-By Lawsuits In an industry of small businesses including independently owned properties and franchised locations, it is unfortunate lodging facilities have recently become a target for meritless lawsuits intended to extort tens of thousands of dollars from those small business owners under the guise of helping individuals with disabilities.

ORLA asked our Congressional delegation to co-sponsor the ADA Education and Reform Act of 2017 (HR 620) which would provide a “notice and cure” provision to give small business owners time to address ADA violations before any legal proceedings could move forward and to introduce companion legislation in the Senate.

Stop Online Booking Scams In 2015, six percent of U.S. travelers reported booking on a fraudulent website for a hotel room, showing up and finding

SUBSCRIBE TO BOILED DOWN Hospitality industry insights, intelligence & discussion ORLA's new podcast series, Boiled Down, condenses valuable information and intelligence on the world of Oregon hospitality.

Subscribe to Boiled Down on iTunes or wherever you get your podcasts so new episodes are delivered directly to your device!

We'd love to get your feedback.

Email us: Info@OregonRLA.org Tweet us: @ORLABoiledDown.

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Lodging News | JUN / JUL 2017

From Left: Masudur Khan, Jason Brandt, U.S. Representative Kurt Schrader, Dhruti Patel

From Left: Greg Astley, Shirin Patel, Tina Patel, U.S. Senator Jeff Merkley, Dhruti Patel, Masudur Khan, Jason Brandt

In addition to Jason Brandt, President and CEO and Greg Astley, Director of Government Affairs for ORLA, a big thank you to ORLA members who joined us in D.C. including: • • • •

they had no reservation or room. Today, just two short years later, 22 percent report the same experience. We asked our delegation to cosponsor the Stop Online Booking Scams Act and help protect consumers from online hotel booking scams by prohibiting websites from pretending to be the hotel and requiring these websites to prominently display that information.

Masudur Khan, Seaside Lodging LLC Shirin Patel, Canterbury Hotel Group Tina Patel, ALKO Hotels Dhruti Patel, ALKO Hotels

Their commitment to our industry and our issues went a long way in helping to share the story with our elected officials about how important the lodging and hospitality industry is to Oregon.

This is an annual trip so if you’re interested in joining us next year, please contact Greg Astley at Astley@ OregonRLA.org. LN GREG ASTLEY, OREGON RESTAURANT & LODGING ASSOCIATION

> CONNECT GREG ASTLEY • Astley@OregonRLA.org

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GOVERNMENT AFFAIRS

OSHA Enforcement Actions Getting Up to Speed on Oregon OSHA’s New Recordkeeping and Reporting Rules

I

n November 2016, Oregon OSHA issued new rules regarding recording and reporting workplace injuries and illnesses. These rules were adopted in response to similar rule changes at the federal level and went into effect on May 1, 2017. While the new White House administration has delayed implementation of certain rules for the time being, employers in Oregon should still be prepared to comply once the federal recordkeeping program comes on board.

The OSHA 300-A Summary shows the total number of injuries and illnesses for each year, separated by type of case. At the end of the year, employers must post the Summary in a visible location so that employees are aware of the injuries and illnesses occurring in their workplace. The Summary must be posted by February 1st of the year following the year covered and remain posted until April 30th of that year. The Log and Summary need to be kept for five years following the year to which they pertain.

As has always been the case, if your company has had more than 10 employees at any time during the previous calendar year, Oregon OSHA rules require you to use and maintain OSHA 300 Log, OSHA 300A Summary, and DCBS Form 801 to record work-related fatalities, injuries and illnesses.

New Electronic Recordkeeping Rules Under the previous rule, there was no requirement to submit the completed Log and Summary to Oregon OSHA unless specifically asked to do so. However, the new rule requires certain employers to electronically submit information from the 300 Log, 300-A Summary, and 801 Forms, directly to federal OSHA. This information must be submitted once a year, but no later than July 1st for 2017 and 2018, and no later than March 2nd beginning in 2019.

The rule applies to employers with 250 or more employees or establishments with 20-249 employees in certain industries,

The OSHA 300 Log is used to classify workrelated injuries and illnesses and to note the extent and severity of each case. An injury is work-related if an event or exposure in the work environment caused or contributed to the condition or significantly aggravated a pre-existing condition.

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Lodging News | JUN / JUL 2017

including traveler accommodation such as hotels, motels, and bed-and-breakfast inns.

Notably, the Oregon rule requires employers to submit this information to a “secure website” created by federal OSHA. Despite the looming deadline, however, OSHA has not yet rolled out the website for submitting information electronically, nor has OSHA provided an update on when the secure website will be available. Although the future of the electronic reporting rule remains unclear, covered employers in the lodging industry should still be prepared to submit the required information by the July 1, 2017, deadline.

New Anti-Retaliation Protections Along with the new electronic reporting requirements, Oregon OSHA also adopted the new federal rules prohibiting employers from discouraging workers from reporting an injury or illness. Under the previous version of the rule, employers were only required to inform employees of how they were to report an injury or illness. Now, employers must “establish a reasonable procedure for employees to report injuries

and illnesses promptly and accurately.”

The rule also specifically states that if a procedure would deter or discourage an employee from accurately reporting an injury or illness, it is not reasonable. As an example, procedures that do not allow a reasonable amount of time for an employee to realize they have suffered a work-related injury or illness could violate this rule.

Where this rule has had the most significant effect, is in regards to post-injury drug testing. Under the new rule, mandatory post-injury drug testing would be considered “not reasonable” because of the deterrent effect the policy may have on reporting injuries. Instead, employers must have an “objectively reasonable” basis for drug testing employees who report workrelated injuries.

Under the new rule, post-injury drug testing should be limited to situations where there is a reasonable possibility that drug test results could provide the employer insight on the root causes of the injury or there is a heightened interest in determining if drug use could have contributed to the

injury due to the hazardousness of the work being performed. In either instance, drug testing should not be limited to the injured employee and should include all employees whose conduct could have contributed to the incident.

citations available to employers that may not be obvious on the face of the citation.

Typically, it is not until after a citation is appealed and the inspection file is reviewed that you can properly analyze the strengths or weaknesses of a particular case. LN JOSH DENNIS, COSGRAVE VERGEER KESTER LLP

The new rule does not prohibit drug testing conducted under a state workers’ compensation law or other state or federal law. Nor does the new rule prohibit employers from having a zero-tolerance drug policy, nor would it prohibit prehire, random, or for-cause drug tests.

Some federal OSHA discussions leave the impression that drug testing is not allowed unless it measures impairment, but Oregon OSHA has specifically stated that is not their approach.

> CONNECT JOSH DENNIS • JDennis@cosgravelaw.com

ABOUT

Josh Dennis is an associate at Cosgrave Vergeer Kester. He advises and represents employers regarding OSHA compliance and litigation. Contact him at 503.276.6085 or JDennis@cosgravelaw.com.

Oftentimes, if an inspection is initiated by an Oregon OSHA Compliance Officer, the inspection will be opened and closed without a citation being issued. However, if a citation is issued, it is important to consult with experienced legal counsel prior to simply paying the penalty. There are a number of potential defenses to OSHA OregonRLA.ORG

| Lodging News

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Smart Rooms Just Got Brighter Hospitality Trends for 2017

F

or over three decades The Allied Group has supported

“Not-So-Alluring” Advances in Technology

the renovation initiatives of local and national

When we think about technology, many industry professionals

brands, with a rich history in the hospitality sector

focus on things like Wi-Fi, Bluetooth, touch screens and

and a portfolio of distinctive projects including leading hotels,

digital thermostats. However, many of the most innovative

resorts and restaurants across the United States.

technological advancements transpiring in the renovations arena are what we refer to as “not-so-provocative” products.

The HD Expo in Las Vegas (which took place at the Mandalay Bay Resort and Casino from May 3-5, 2017), is a tradeshow/

While these commodities often go unseen by consumers, they

conference The Allied Group participates in every year. As

allow our hospitality clients to address vital operational issues,

one of the premier hospitality design shows, the three-day

such as reducing energy usage and lowering water consumption.

event unveils exciting industry trends and showcases from

These products can also create efficiencies during a renovation

hundreds of international manufacturers, products ranging

project that, at the end of the day, save ample time and money.

from lighting and seating to wall coverings and furniture. It offers an incredible opportunity to connect with clients and

At this year’s HD Expo, we found a number of not-so-seductive

introduce services to key decision makers. Additionally, another

technologies – as well as several design-driven trends – that we

significant aspect of the HD Expo is the chance to identify

feel confident will truly make an impact on the way we renovate

with key suppliers of product lines and technologies that will

a hotel.

ultimately impact the future of hotel renovation.

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Lodging News | JUN / JUL 2017

PHOTOGRAPHY: The Allied Group EMBASSY SUITES BY HILTON LOS ANGELES DOWNEY, CA Backlit walls invite guests to the main lobby reception desk.

Smart Technology is a Smart Investment

the hotel. “Smart Room” technology allows the front desk to

The hospitality industry’s ongoing integration of smart

adjust the temperature of a room for a guest during check-in,

technology is driven by both the need to improve operational

which helps save energy and improve the guest experience.

efficiencies as well as to enhance guest experiences. While our renovation work has long reflected the industry’s push to offer

In addition, these smart devices capture guest trends as they are

Wi-Fi and Bluetooth technology as guest amenities, all signs

happening, enabling management companies to use the data

at the HD Expo pointed to increasing the comfort of guests

to measure guest experience, gather metrics and better manage

through the use of Building Management Systems (BMS).

their sites. What loyal traveler wouldn’t appreciate having customized in-room music or a snack bar stocked according to

These systems give operations staff the ability to use a hand held

their preferences?

device to control lighting, sound and temperature throughout

OregonRLA.ORG

| Lodging News

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can be close to catastrophic. Products like these that can save time, material, and even longevity of use help prevent future problems resulting in significant savings to your overall renovation.

Lighting and Flooring: Innovations Integrate Efficiency and Aesthetics Innovations in lighting have taken a huge leap forward, not only in terms of the efficiencies that we have seen with LED but also in the way light is being used as a design element. Backlit wall systems, fountains, and the use of colorized lighting are being incorporated as accents as well as making bold design statements in areas ranging from lobbies and restaurant bars to hotel hallways. Incorporating smart phone technology allows management to control the lighting in common areas as well as guest rooms.

New technologies in flooring that combine efficiency and aesthetics are also making a splash. One product that has been getting noticed, wood plank flooring that resists water, does not expand with temperature change and has high sound mitigation qualities.

W HOBOKEN, HOBOKEN, NJ Upscale bath to shower conversions increase spa-like amenities.

Furnishings and Doors: A Moveable Feast Several design trends are also making their mark on current and

Bathtub and Shower Trends

future hotel renovation projects. In line with the increasing demand

The conversion of bathtubs to showers is a trend that shows

for sleek, uncluttered and uber-functional rooms, we are seeing more

no signs of slowing, and in most cases, is driven by listening to

modular construction concepts and moveable furniture. These are

hotel guests. Additionally, showers increase spa-inspired features

replacing furnishings that have previously been hung or built into

such as steam and body jets.

the room. In addition to saving space, something as practical as a rolling desk can be repositioned near a window for business and

In the area of shower installation, we’re seeing many new backer

double as a dining table after hours.

systems, membrane materials, modular units, and mold and mildew resistant materials on the market.

Another space-saving idea that is gaining traction is the migration from pocket doors to “Barn Door” systems, a particularly popular

When you are installing anywhere from 100 to upwards of

option in bathroom renovations. There are now numerous designs

500 showers during a renovation project, inconsistencies in

on the market, making it possible to choose a style to match any

installation alone can result in damage due to water leakage that

interior. LN BOB SMITH, THE ALLIED GROUP

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Lodging News | JUN / JUL 2017

> CONNECT BOB SMITH • AddAStar.com

ABOUT THE TASTE BAR, SHERATON PHILADELPHIA SOCIETY HILL, PA The creative use of color is enhanced, generating an inviting ambience.

The Allied Group, headquartered in Neptune, NJ with a second office in the Dallas/Ft. Worth metropolitan area, is licensed in 40 states as a General Contractor and provides comprehensive renovation services in major markets. Our services range from facilitating major brand approvals, design coordination, and project cost estimating to logistics management and warehousing. We also offer ongoing maintenance and repair, turnkey renovations and environmentally/socially sustainable Sustainovation® services.

BOB’S STEAK & CHOP HOUSE, OMNI BERKSHIRE PLACE, NEW YORK, NY Another example of influential illumination; the display lights enhance the presentation of the restaurant’s prestigious wine list.

EMBASSY SUITES BY HILTON LOS ANGELES DOWNEY, CA Lights creates a unique, cool design aesthetic for the fountains at The Atrium.

OregonRLA.ORG

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2016 Lodging Survey Major Findings of What’s “Inn� at Hotels

A

nticipating the needs and wants of hotel guests and providing a rich and rewarding work environment are vital to the success of the hotel industry. Hotels are fully committed to offering exceptional customer service and implementing initiatives that are important to both guests

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Lodging News | JUN / JUL 2017

and employees, such as a strong commitment to sustainability, technological advances and charitable giving.

The 2016 Lodging Survey, presented by the American Hotel & Lodging Association and the American Hotel & Lodging

Educational Foundation, highlights some of the latest trends, amenities, technologies, and innovative efforts hotels are pursuing to advance, accommodate and innovate for a better guest experience and a more rewarding workforce. LN

OregonRLA.ORG

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Business Personal Property Nightmare Navigating Personal Property Tax

J

oan builds widgets. Well, not really… but she is in light manufacturing. And she had more orders than she could fill with her current equipment. So, she found used equipment for a great price, brought it back to her shop and started ramping up production. She added this new equipment to her Business Personal Property tax return in the county where she is headquartered.

Eighteen months later, she got a Business Personal Property tax bill from the neighboring county where she purchased the equipment. That bill was for almost $8,000. Joan called the tax clerk who sent the bill and explained that she had no taxable nexus in their county. No stock of goods, no employees, no storefront.

Joan’s only business activity there consisted of shipping finished goods to customers in that county – which she’d done for almost 30 years without ever once receiving a tax bill.

After some internal checking, the tax clerk confirmed that the bill was for Joan.

But, why?

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Lodging News | JUN / JUL 2017

Joan purchased her equipment from another manufacturer that was liquidating his business assets. He’d previously sold the same equipment to another buyer – but that buyer couldn’t afford to pay the entire total due at the time of purchase. The original owner carried a contract and received monthly payments. Things started out well, but that first buyer made a late payment one month, then started missing payments altogether. The original owner had to repossess the equipment. This time, he vowed to sell to a cash buyer. And along came Joan, cash in hand and ready to buy.

The first buyer didn’t file a Business Personal Property tax return. And Joan didn’t know about the existence of that other buyer when she purchased the equipment.

dishware. It’s not the food you prepare or other types of inventory you may carry (branded t-shirts, mugs or other retail inventory). Current inventory lists with associated market value for each item are required, so CPAs often don’t file this return for their clients.

Business Personal Property is assessed annually at a specific point in time – January 1st at 1:00 a.m. Whoever owns the equipment at that moment pays taxes for the year that just ended.

When an owner fails to file a return or pay the related taxes, the county has to try and track them down to collect. If the county cannot find that person or business, the new owner of the equipment is liable for the unpaid taxes under Oregon statute.

Businesses in Oregon are required by state statute to file an annual Business Personal Property tax return with their county.

Who knew? And knowing this, how do you protect your business?

What is Business Personal Property? It’s the stuff you use to do business. For restaurants, it’s their kitchen appliances and equipment, tables, chairs and

Since January 1, 2016, business owners have been able to do a quick, three-step, due diligence process within three days of purchase to ensure that they are not

purchasing used goods with related tax debt. Here’s how the process works: 1. Ask the seller for a signed and dated disclosure statement printed on company letterhead. It should contain the following information (If the seller doesn’t have this information, they should say so in the disclosure): a. Whether there is tax debt and/or liens associated with the personal property; b. The name of any Oregon county in which the personal property has been assessed other than the county where purchase is taking place; c. The name and address of any other person who has owned, had possession or control of the property; and d. The fact that ORS 311.641, regarding due diligence to achieve Bona Fide Purchaser status, may apply to the transaction.

2. Contact the tax clerk in the Oregon county where the purchase is taking place. Ask if there are tax liens against the property you want to purchase. If

multiple counties are listed in the seller’s disclosure statement, contact the tax clerk in all listed counties.

3. Search the Oregon Secretary of State’s UCC system with the name of the previous owner(s). Print the results of your search.

LEARN MORE You can contact your tax professional, county tax assessor or the Secretary of State’s Office of Small Business Assistance with questions. County tax assessors and the Office of Small Business Assistance cannot provide legal or financial advice.

LN RUTH MILES, SMALL BUSINESS ADVOCATE, OFFICE OF THE OREGON SECRETARY OF STATE

Keep the results of your three-step due diligence process. If you find tax debt associated with the property, you can 1) opt not to purchase; 2) ask the seller to clear the debt/lien prior to purchase; or 3) discuss alternative payment arrangements with the county, such as a compromise payment to settle the lien.

Here’s the beautiful part. If you have completed this process, you achieve Bona Fide Purchaser status. If, like Joan, you receive a bill for taxes incurred by someone else before you owned the equipment, you provide your due diligence documents to the tax clerk and you will not have to pay the tax.

> CONNECT OFFICE OF SMALL BUSINESS ASSISTANCE

• • •

SOS.Oregon.gov/BusinessSOS Business.SOS@State.or.us 844.469.5512

ABOUT

Ruth Miles is the Small Business Advocate for Oregon Secretary of State. She runs with scissors.

Joan is a real person; and this is a true story.

Let’s be sure it doesn’t happen to you.

OregonRLA.ORG

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23

Making Time to Talk Reducing Areas of Risk

24

Lodging News | JUN / JUL 2017

L

ifting, lowering, pushing, pulling, and carrying (also known as manual materials handling) are common activities for those who handle luggage. These activities can cause injuries. Good ergonomic design can help increase productivity and help reduce health and safety problems.

Tips for Workers Locate and use appropriate carts and racks when handling guest luggage. Keep this equipment in designated areas on each floor for quick use when needed. Be sure carts and racks work well and that all wheels are in good condition.

Why it Matters There are numerous ways to improve your comfort level and decrease your chance of suffering muscle pain or injury while handling luggage. Material handling equipment may be available and should be used to help reduce or eliminate manual handling injuries.

What to Do • Use a luggage cart or hand truck to load/unload luggage.

• Keep items close to your body when lifting or lowering.

• Get a good grip on the object and lift smoothly and slowly.

• Use the wheels on suitcases if they are present.

• Push or slide luggage rather than lift or lower it.

• Ask for assistance if luggage is heavy or bulky.

A Liberty Mutual Insurance study of low back pain showed that 64 percent of claims occurrence and 60 percent of claims costs were attributed to materials handling. The overwhelming majority of back claims are related to overexertion (or force), which usually occurs during a manual handling activity.

What Not to Do • Never twist and bend at the same time.

• Avoid jerking to lift or pull the load.

• Do not overload luggage carts.

GOOD THINGS HAPPEN WHEN YOU BRING US IN. Upgrades to energy-efficient equipment saved this inn money.

But that’s not all. Improvements also made the facility more comfortable and safer for employees and guests.

Energy Trust of Oregon will work with you every step of the way to see your upgrade through. And our cash incentives help make upgrades more affordable.

+

SAVE ENERGY. BRING US IN. Visit www.energytrust.org/BringUsIn or call 1.866.605.1676.

Serving customers of Portland General Electric, Pacific Power, NW Natural and Cascade Natural Gas.

OregonRLA.ORG

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25

• Do not use broken carts as they can be hard to push/pull.

• Do not place smaller objects on the floor if they must be picked up again later. Use a table or platform.

Questions to Ask Your Team • Do you know where luggage carts are stored?

• Do you use them regularly?

• Is there curbing or outdoor walkway surfaces where luggage carts cannot travel?

• How does this affect injury risk?

Make the time to have frequent safety discussions with your team. Quickhitting safety talk training sessions are a great way to train your team and can be customized for specific tasks within your workplace. LN LIBERTY MUTUAL INSURANCE

> CONNECT LIBERTY MUTUAL INSURANCE • CConsultingCenter@LibertyMutual.com

About For more than 60 years, the award-winning Liberty Mutual Research Institute for Safety has helped to improve the safety and health of people throughout the world. Liberty Mutual has been partnering with the Oregon Restaurant & Lodging Association for more than 30 years. For more information, contact your independent insurance agent or call 800.463.6381.

The principles contained in this material are general in scope and, to the best of our knowledge, current at the time of publication.

Liberty Mutual Insurance specifically disclaims all liability for damages or personal injury alleged to arise from reliance on the information contained in this document.

Aug./Sept. edition. sales end.

June 26, 2017.

Buyer’s Guide

Put your message in the. hands of the right people.

Don’t miss out!

Contact Maggie Pate • 541-968-3544 maggie.p@mtangelpub.com 26

Lodging News | JUN / JUL 2017

Mt. Angel Publishing, Inc.

MEMBERSHIP

LODGING PERFORMANCE HOTEL BENCHMARK DATA

MONTH - APRIL 2017 VS APRIL 2016

Occupancy (%)

Avg Rm Rate ($)

RevPAR ($)

Percent Change from August 2016

2017 2016 2017 2016 2017 2016 Occ ADR RevPAR Room Room Room

Rev Avail Sold United States

74.8 74.3 156.50 152.53 117.12 113.30 0.7 2.6 3.4 4.9 1.5 2.3

Oregon

66.9 67.0 112.57 109.87 75.32 73.59 -0.1 2.5 2.4 4.6 2.2 2.1

Portland, OR

77.0 75.9 129.38 124.91 99.62 94.86 1.4 3.6 5.0 8.2 3.1 4.5

Oregon West Area

59.6 60.1 102.17 102.60 60.94 61.68 -0.8 -0.4 -1.2 -1.2 -0.0 -0.8

Oregon East Area

54.5

67.5 68.0 126.26 123.32 85.19 83.81 -0.7 2.4 1.7 3.5 1.8 1.1

Pacific

52.3

87.15

83.90

47.51

43.85

4.3

3.9

YEAR TO DATE - APRIL 2017 VS APRIL 2016 Occupancy (%)

Avg Rm Rate ($)

RevPAR ($)

Percent Change from YTD 2016

8.3

10.6

2.1

6.5

PARTICIPATION Properties

Rooms

2017 2016 2017 2016 2017 2016 Occ ADR RevPAR Room Room Room Census Sample Census Sample

Rev Avail Sold U.S.

62.7 62.4 124.83 121.82 78.26 76.02 0.5 2.5 3.0 4.8 1.8 2.3 53840 32679 5091591 3777472 Pacific

71.3 71.0 157.31 153.69 112.12 109.13 0.4 2.4 2.7 4.2 1.4 1.8 7966 4385 740451 575483 OR

59.6 59.9 108.11 105.42 64.49 63.14 -0.4 2.6 2.1 4.1 1.9 1.5 900 471 64359 44785 PDX

70.5 70.3 123.57 119.72 87.16 84.17 0.3 3.2 3.6 6.3 2.6 3.0 276 206 27529 24253 OR West

52.4 52.9 97.04 96.52 50.81 51.04 -1.0 0.5 -0.4 -0.7 -0.2 -1.2 277 108 16397 8172 OR East

44.3 44.7 82.86 81.54 36.71 36.42 -0.8 1.6 0.8 3.1 2.3 1.5 153 72 8818 5443 The information contained in this report is based upon independent surveys and research from sources considered reliable, but no representation is made as to its completeness or accuracy.

This is intended solely for internal purposes of your company and should not be published unless authorized by STR, Inc. ORLA members have access to these reports on OregonRLA.com.

NEW MEMBERS

ORLA WOULD LIKE TO WELCOME THE FOLLOWING • 21st Avenue Bar and Grill, Portland • Babica Hen Café, Lake Oswego • Barsurance, Kennewick, WA • Brix Grill, Roseburg • Bumpers Grill & Bar, Fairview • Chai Yo Restaurant, Portland • CoHo Res (Connect Hotel Reservations), Vancouver, WA • Common Block Brewing Co., Medford • Dave's Pizza, Coos Bay • Desert Lanes, Hermiston • Dick's Primal Burger, Portland • Drake, Bend • Enterprise Merchant Solutions, Seattle, WA • Evergreen Pub & Café, Rainier, WA • Farmers Insurance Hoffstot Agency, Creswell • Fisher Phillips, Portland • Foster Farms, Livingston, CA • Island Café at McCuddy's Marina, Portland

• Latigo, Sisters • The Larkspur Landing, Hillsboro • Mackey's Steakhouse & Pub, Ontario • Malin Country Diner, Malin • Molina Insurance Group, Hillsboro • Nicholas Restaurant, Portland • Olympic Inn, Klamath Falls • Papa Murphy's Pizza, Bend • Pasaban Accounting Solutions, Beaverton • Positive Technologies, Inc., Portland • Ritter's Homemade Foods, Salem • Rosso's Trattoria, Grants Pass • Schmizza Public House, Lebanon • Seaside Vacation Homes, Seaside • USA Subs, Hermiston • World Wide ATM, Portland • Xeros Inc., Manchester NH • Zenbu, Portland OregonRLA.ORG

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27

Customized Guest Service Training For Oregon's Hospitality Industry CURRICULUM INCLUDES SEVEN PRINCIPLES: 1. Recovery: Turn it around 2. Personalization: Provide an individualized experience 3. Knowledge: Be in the know 4. Passion: Inspire others 5. Commitment: Be all in 6. Inclusion: Include everyone 7. Personality: Be yourself PARTICIPANTS WILL RECEIVE: • Downloadable workbook • Video featuring true Oregon employee stories that illustrate core concepts • Diploma and lapel pin upon passing • Bonus course: TripAdvisor’s Reputation Management for Front-Line Staff

Two Guest Service Training Options for Oregon: Tourism Gold: Oregon Edition applicable to a broad cross-section of hospitality-related organizations including restaurants

Golden Opportunities hotel scenarios, applicable to accommodations-based organizations FOR ONLINE TRAINING: go to AHLEI.org/Oregon. Special Oregon rate of $30 (regularly $58-85) FOR ON-SITE TRAINING: contact ORLAEF at 800.462.0619. Special Oregon rate of $30 (plus instructor fee)

For more info and to view the introductory video visit:

OregonGuestService.com 28

Lodging News | JUN / JUL 2017

MEMBERSHIP

NEWS BRIEFS

HAPPENINGS FROM AROUND THE INDUSTRY

AT THE TABLE AND IN THE KNOW ORLA’s government affairs and membership teams are on the road for several regional meetings around the state. These 90 minute meetings provide members an opportunity to discuss issues like restrictive scheduling and lodging taxes with ORLA representatives, ask questions, and hear best practices in order to make thoughtful decisions in running their business. Visit OregonRLA.org/Grasstops.

NOMINATE YOUR EMPLOYEE CHAMPIONS What better way to acknowledge an outstanding employee than with a nomination for a statewide Employee of the Year Award. A highlight of the ORLA Convention (October 8-9) will be the annual presentation of the Hospitality Industry Awards.

Open to industry nominations, the Employee of the Year award recognizes a non-management employee who goes above and beyond expected job responsibilities by demonstrating exemplary professionalism and service.

Download the nomination form at OregonRLA.org/awards and submit your star employee by July 17th.

LOCAL HOTELIER WINS NATIONAL AWARD River Inn at Seaside was awarded Independent Hotel of the Year at the annual 2017 AAHOA (Asian American Hotel Owners Association) conference in San Antonio, Texas this past April. The prestigious national award honors an independent hotel that sets a high standard of excellence in quality, service and guest satisfaction.

Masudur Khan, managing director, and property manager, Cinthia Inzunza, received the award in front of over 6,500 AAHOA attendees.

TIP POOLING UPDATE On May 3, 2017, the Supreme Court issued an Order in the tip pooling case (National Restaurant Association / ORLA v. U.S. Department of Labor), further extending the Department of Labor’s (DOL) time to file its response to the Certiorari Petition to and including July 10, 2017.

We are challenging the DOL’s position that it can apply its 2011 federal tip credit restrictions to employers who don't take a tip credit. Given the current uncertainty regarding a final decision from the Court on tip pooling in Oregon, ORLA recommends consideration of alternative options (visit OregonRLA.org/tippooling).

INDUSTRY CALENDAR EVENTS & ACTIVITIES June/July – Statewide ORLA Regional Meetings

July 31 – Aurora, OR ORLA Open Golf Tournament

Oct. 8-9 – Bend, OR ORLA Annual Convention

Engage in discussions on issues and best practices to address new regulations.

OregonRLA.org/Grasstops

Golf scramble and BBQ for all industry with proceeds benefitting ORLAPAC. OregonRLA.org/Golf

Educational programs, awards program, and social + networking opportunities.

OregonRLA.org/Convention OregonRLA.ORG

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JEAN-MARC JALBERT, GM the Nines Hotel, Portland

“As the General Manager of the Nines Hotel in Portland, I am very thankful to Jason and his team at ORLA for their expertise regarding pertinent issues facing our industry as well as for their constant devotion to protecting our interests.�

JOIN NOW! With strength in members comes a stronger voice for the industry. To learn how being a part of ORLA can help you, contact Membership@OregonRLA.org or call 800.462.0619.

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Lodging News | JUN / JUL 2017

ORLA's ENDORSED SERVICE PROVIDERS Your association is dedicated to helping members operate with greater ease, efficiency and savings. Member participants save millions of dollars each year by using ORLA’s Endorsed Service Providers. For more information contact Jennifer Starr at 1.800.462.0619.

CREDIT CARD PROCESSING

Developed specifically for the restaurant and lodging industry, First Data’s Merchant Processing Program makes doing business easier by empowering you accept many kinds of payments including EMV® chip cards, Apple Pay®, Samsung Pay and Android Pay. ORLA members’ rates don’t change, and right now members can receive up to $500 in processing credit with new enrollment in the Merchant Processing Program.

OregonRLA.org/ESP

HOW CAN WE SERVE YOU?

MEMBERSHIP

FOR MEMBERS

Membership in ORLA means being a part of the only organization in the state devoted to protecting and promoting the interests of the hospitality industry. Contact us for questions; let us know what issues are affecting your business and how we can help. We have your back!

MEMBERSHIP REPRESENTATIVE CONTACTS:

STEVEN SCARDINA Regional Representative 503.718.1495 SScardina@OregonRLA.org

MUSIC LICENSING

JOEL POMERANTZ Regional Representative 541.517.3791 JPomerantz@OregonRLA.org HEALTH INSURANCE SERVICES

SEX TRAFFICKING RECOGNITION AND RESPONSE TRAINING

MARLA McCOLLY Director of Business Development 503.428.8694 MMcColly@OregonRLA.org

GOVERNMENT AFFAIRS CONTACTS:

INSURANCE PROGRAMS

JASON BRANDT President & CEO 503.302.5060 JBrandt@OregonRLA.org

OFFICE PRODUCTS & SERVICES

GREG ASTLEY Director of Government Affairs 503.851.1330 Astley@OregonRLA.org

MINIMUM ESSENTIAL COVERAGE

GLENDA HAMSTREET Executive Coordinator Government Affairs 971.224.1509 GHamstreet@OregonRLA.org

HIRING SOLUTIONS

GENERAL INQUIRY:

JOIN YOUR ASSOCIATION TODAY! Contact your regional rep or the ORLA Offices to become a member.

503.682.4422 | 800.462.0619 | Membership@OregonRLA.org | OregonRLA.org

Info@OregonRLA.org Membership@OregonRLA.org 503.682.4422 | 800.462.0619 OregonRLA.org

OregonRLA.ORG

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HE LPIN G MAR KET LOCAL RE ST AUR ANT S! NORTHWEST DINING GUIDES

Website, Facebook and YouTube

DINING OUT IN THE NORTHWEST BLOG

Featuring the people, places and events of the NW

ANDROID APP

Easily find more than 700 participating restaurants

Online Dining Guide • PDX-TV Reports • Radio • Diner Surveys • Shaker Signs • Travel Portland Center Brochures

DININGOUTNORTHWEST.COM

F S A F ood .c o m • 5 0 3 .9 8 0 .2 5 8 6 32

Lodging News | JUN / JUL 2017