Monday, November 26, 2007
Four Seasons - the early days...
Meet Isadore Sharp, one of four children of Polish parents who immigrated to Toronto before his birth in 1931. Issy, as he is known to his friends, worked at his father's construction company after college, and while building a motel for a client, formed the ambition of building and running a motel of his own. Sharp opened the Four Seasons Motor Hotel in 1961 with 125 affordable rooms in a rather seedy area outside the core of downtown Toronto.
At that time, a would-be hotelier had two choices. He could build a small motel with fewer than 200 rooms and simple amenities. The capital requirements were modest, and per-room operating costs were low. The alternative was the large downtown hotel catering to business travellers. Such hotels usually had at least 750 guest rooms and extensive amenities, including conference facilities, multiple restaurants and banquet rooms. Sharp's fourth hotel, a 1,600-room downtown convention hotel featuring a huge shopping arcade, met that description. Like Sharp's first motel, it was profitable and popular.
Each type of hotel had its advantages, as well as distinct drawbacks. For all its comfort and intimacy, the small motel wasn't an option for the business traveller who needed a well-appointed meeting room or state-of-the-art communications facilities. Large hotels produced a big enough pool of revenues to fund the features the market demanded, but tended to be cold and impersonal.
After opening that fourth hotel, Four Seasons Sheraton, in 1972, Sharp sought, in his words, "to combine the best of the small hotel with the best of the large hotel." He envisioned a medium-sized hotel - big enough to afford an extensive array of amenities, but small enough to maintain a sense of intimacy and personalized service.
Sharp reasoned that if the Four Seasons offered distinctly better service than its competitors, it could charge a substantial premium, boosting revenue per room to the point where it could offer top-of-the-line amenities. Before he could ask guests to pay a super-premium room rate, though, Sharp understood that he would have to offer them an entirely different kind of service.
Salience at Four SeasonsWhen he considered what his guests, mostly travelling business executives, were looking for, Sharp's view of salience more nuanced and humane than that of his rivals. "Luxury, at that time, was seen chiefly as architecture and décor," says Sharp. "We decided to redefine luxury as service - a support system to fill in for the one left at home and the office."
Four Seasons became the first to offer shampoo in the shower, 24-hour room service, bathrobes, cleaning and pressing, a two-line phone in every guest room, a big, well-lighted desk, and 24-hour secretarial services. Defying the traditional approach in the industry, which was to set a relatively fixed standard of physical and service quality across the entire chain, Sharp made sure each city's Four Seasons reflected the local colour and culture.
Sharp also recognized the salience of the hotel's ownership structure. To his rivals, operating and owning went hand in hand. But ownership tied up capital and exposed the hotelier to fluctuating local real estate values, and diverted valuable senior management time. Four Seasons shed those burdens by becoming the first big hotel company to manage, rather than own, the hotel facilities that bore its name.
Causality at Four SeasonsCertain causal relationships are obvious to anyone in the hotel business. The traditional belief was that a full-service business traveller hotel needed at least 750 rooms to generate the revenue to pay for its amenities. Sharp saw a more complex relationship between hotel size and amenity. If he could provide his guests with a higher standard of service, they would pay significantly more per room per night.
How could Sharp attain that level of service? By seeing the causal link between the way a hotel treated its employees and the way employees treated their guests. Rather than treating its employees as disposable, Four Seasons distinguished itself, in Sharp's words, "by hiring more for attitude than experience, by establishing career paths and promotion from within, by paying as much attention to employee complaints as guest complaints by pushing responsibility down and encouraging self-discipline, by setting performance high and holding people accountable, and most of all, adhering to our credo, generating trust."
Sharp's management has generated enough trust to establish Four Seasons as the employer of choice in the hotel industry. When the New York City location opened in 1994, more than 30,000 applicants applied for 400 jobs. And until 2007, the company appeared on Fortune magazine's list of the 'Top 100 Companies to Work' every year since the ranking first appeared in 1998. Architecture at Four SeasonsIn architecting Four Seasons' competitive strategy, Sharp did not proceed sequentially. Instead of first deciding how big a hotel would be, then establishing service standards, and then setting human resources policy, he kept the chain of considerations in mind while working on individual links in the chain.
One organizing principle runs through the entire Four Seasons organization. Everyone is guided by the Golden Rule: in Sharp's words, "to deal with others - partners, customers, coworkers, everyone - as we would want them to deal with us." Every phase of hotel operations coheres around this strategy. Significantly, Four Seasons has no separate customer service department. Everyone at the Four Seasons is not just a member of the customer service department, but in charge of it.Resolution at Four SeasonsSharp set out to create "a reputation for service so clear in people's mind that Four Seasons' name will become an asset of far greater value than bricks and mortar." The results speak for themselves. With 73 hotels in 31 countries, and with 25 properties under development, Four Seasons is considerably larger than the next biggest luxury player. Condé Nast Traveler ranks 18 Four Seasons hotels in its global Top 100 list, more than three times the next most cited chain. A Four Seasons signifies that a city has become a global destination.
Sharp succeeded because he was willing to consider a broader set of salient features, delve into more complicated causal relationships, and architect holistically the decision facing him. His resolution produced a system of reinforcing activities, each of which fits with and strengthens the whole. In the process, he did nothing less than fashion a new way to succeed in the luxury lodging business.
Wednesday: Bob Young and the rise of Red Hat Software
Reprinted from The Opposable Mind: How Successful Leaders Win Through Integrative Thinking by arrangement with Harvard Business School Press. Copyright 2007 Roger Martin. Prof. Martin is Dean of the Rotman School of Management, University of Toronto. He holds the Premier's Chair in Competitiveness and Productivity and serves as Director of the AIC Institute for Corporate Citizenship at Rotman.
Monday, November 12, 2007
Austria switches the ski lifts on early...
Schladming-Dachstein opened for the season on Thursday, one month earlier than originally scheduled.
The resort had initially coincided its opening with its fellow Ski amadé resorts, comprising Gastein, the Großarltal, Hochkönig and Salzburger Sportwelt on November 24th.
However, with the excellent early snowfall dumping at least 12 inches all the way down to middle station, as well as the revamped snow-making facilities, the resort chiefs decided to open early in what is one of the earliest non-glacier ski openings of the year. With 270 lifts covering the 860km of slopes, Ski amadé is Austria's largest network of ski lifts and excellent value for money.
Tuesday, October 16, 2007
One to watch out for: Trump Hotel Collection
 Ten years after Donald J. Trump unveiled his vision for a luxury condominium hotel at Manhattan's Columbus Circle, the internationally renowned developer and his three grown children -- Donald Jr., Ivanka and Eric -- are taking the concept worldwide.
Trump Hotel Collection represents the next generation of luxury hospitality -- one that promises to raise the bar on the top-end travel experience with a style of customized service that is unmatched.
The brand's forerunner, Trump International Hotel & Tower New York, will soon be joined by distinctive new sister properties: Trump International Hotel & Tower Chicago (December 2007) and Trump International Hotel & Tower Las Vegas (early 2008). Several additional hotel projects are under development in locations ranging from downtown Manhattan, where the Trump SoHo Hotel Condominium New York is slated for a Spring 2009 opening, to Dubai.
"The creation of the Trump Hotel Collection is a natural extension of our brand in the luxury sector of the hotel industry," announced Donald J. Trump, chairman and president of The Trump Organization. "Each hotel will be distinguished by outstanding architecture created by some of the finest architects in the world and complemented by the highest level of personalized service. These are great hotels in established and emerging destinations, and we are very proud to launch them around the world."
"The preeminence of the Trump name in the real estate market makes us uniquely qualified to succeed in the luxury hotel arena and bring it to a global market," added Jim Petrus, chief operating officer of Trump International Hotels Management LLC. "As a new brand, Trump Hotel Collection offers a unique opportunity for the Trump family to make its mark on the international luxury hospitality market. It is an entrepreneurial venture that is a true project of passion for two generations of Trumps."
Each hotel in the Trump Hotel Collection will be new construction, with distinctive architecture that will add a bold statement and a sense of intrigue to the local landscape. And each will be further distinguished by world-class dining experiences, the personalized services of a Trump Attache, and the unprecedented pampering of The Spa at Trump. Several current developments have a residential and/or condominium component, combining luxury residences with spacious hotel accommodations.
Trump Attache
Introduced at Trump International Hotel & Tower New York a decade ago, Trump Attache is expanding into a brand-wide program that dedicates an entire department to delivering uncompromising, individualized service to every hotel guest upon request. Complementing the concierge and going beyond butler service, the Attache meticulously records individual preferences and maintains a detailed guest history to ensure that no stay feels like the first and no request needs repeating. This includes everything from arranging for an in-room chef or personal trainer to stocking kitchens with favorite groceries, printing personalized business cards and stationery, shopping for gifts, arranging special in-suite appointments for children, and meeting transportation needs from limousines to private jets.
The Spa at Trump
The Spa at Trump will make its brand debut at Trump International Hotel & Tower Chicago. Each spa will be distinguished by world-class facilities and an unprecedented level of luxury and personalization. Signatures of The Spa at Trump will include a choice of Trump-inspired Personal Intentions with corresponding signature treatments, an exclusive line of skin-care products and services by Kate Somerville, a selection of treatments designed for each location, and a personal Spa Attache to guide each guest through the spa journey.
Accommodations
All guest accommodations in the Trump Hotel Collection -- ranging from spacious guest rooms to expansive, three-bedroom suites -- will be residential in style, luxurious in appointment, and supremely comfortable, with custom-designed furnishings and the latest technology for business and entertainment. Premium bedding will include fine linens such as 500-thread-count Bellino Italian sheets, feather/down comforters and pillows, and Trump signature sleep systems by Stearns & Foster. Gourmet kitchens will be fully equipped with elegant wood cabinetry and top-of-the-line appliances by such world-class names as Subzero, Wolf and Miele, while sumptuous bathrooms will pamper with deep soaking bathtubs, separate showers, and elegant details from premium fixtures to custom vanities. Each location will offer special amenities such as fresh flowers, in-suite coffee service, local books and magazines to enhance the elegant, residential ambience and provide a sense of place.
Future Developments
Trump Hotel Collection is poised for a global expansion. Currently under development are projects in Baja, Mexico, Cap Cana, Dominican Republic, Chicago, Dubai, U.A.E., Fort Lauderdale, Fla., Las Vegas, New Orleans, New York's SoHo, Panama City, Panama, Toronto, Aberdeen, Scotland, and Waikiki, Hawaii. Trump Hotel Collection, a division of The Trump Organization, is headquartered at Trump Tower, 725 Fifth Avenue, New York, NY 10022.
Wednesday, October 10, 2007
Sheraton Seattle Now Largest Hotel In Pacific Northwest
$130 Million Expansion and Renovation Project Complete Making the Sheraton the Largest Hotel in the Pacific Northwest
The Sheraton Seattle, located in the heart of downtown Seattle, Wash., is excited to announce the completion of its $130 million multi-phase expansion, making it the premier meeting and convention hotel destination in the Pacific Northwest. The hotel now boasts 1,258 guest rooms - 420 of those rooms in the new 25-story Union Street Tower - as well as 75,000 square feet of flexible meeting and banquet space, a contemporary new lobby featuring the Link@Sheraton, a lobby lounge and a Daily Grill restaurant. Since the Sheraton Seattle opened in 1982, it has hosted numerous world leaders, presidents and entertainers, and with this new renovation will continue in that tradition of providing an exceptional experience for events and guests from around the world.
To celebrate this milestone and the hotel's 25th anniversary, the Sheraton Seattle hosted a full day of exciting events beginning with a free concert with Kool & The Gang in the porte cochere for thousands of downtown businesses and Seattleites to show their appreciation for their continued support. Celebration events continued into the evening with a VIP party where the new Union Street Tower lit up the new Seattle skyline.
'We are thrilled to be welcoming our guests to the new Sheraton Seattle,' said Keri Robinson, general manager of the Sheraton Seattle Hotel. 'This major milestone builds on the hotel's premier status as a destination and allows us to continue to be an international gateway to visitors of this incredible city.'
The expansion project included 420 new guest rooms complete with flat panel televisions and modern furniture creating an overall feeling of warmth and comfort. The lobby was renovated with classic and rich textures with inviting seating around a centrally located fireplace for an upscale ambiance. Two new entrances to the hotel were also created on Pike Street and Union Street, allowing easier access to and from the Washington Convention & Trade Center. Original artworks by renowned glass sculpturist, Dale Chihuly, are featured throughout the hotel. The Sheraton Seattle is recognized as being the first large hotel in the nation to feature original artwork in all its guestrooms and public areas, and that tradition continues in the form of paintings, lithographs, sculptures and photographs - a collection of art valued well over $1 million.
'We are extremely excited about this grand opening and the new opportunities that the Sheraton Seattle will bring,' said Hoyt Harper, Senior Vice President - Sheraton Brand, Starwood Hotels & Resorts Worldwide. 'This enthusiasm from the entire Starwood team stems from the continued growth of the Sheraton Seattle, and its wonderful staff that embodies the values and customer experience of Sheraton.'
The addition of the guest rooms and the expansion of the ballrooms and meeting space have already enabled the Sheraton Seattle and Seattle's Convention and Visitor's Bureau sales teams to book over $275 million in convention center business for 2007. As the Pacific Northwest's largest hotel adjacent to the convention center, the Sheraton Seattle now has the ability to commit group blocks of 1,000 rooms.
"The eagerly-awaited expansion to the Sheraton Seattle Hotel offers another major convention selling feature for Seattle," said Don Welsh, President and CEO of Seattle's Convention and Visitors Bureau. 'With the Sheraton now offering 1,258 rooms and suites, we now have the ability to offer convention planners the convenience of a 1,000-plus room block within a minute's walk to the Washington State Convention & Trade Center. This is a great enhancement to the convention and meetings market in Seattle.'
The expanded ballrooms and meeting spaces, along with several midsize meeting rooms, three new kitchens and expanded service elements, allow the Sheraton flexibility to host a large number of events, galas and meetings simultaneously. The ballrooms have also been upgraded with state-of-the-art technology allowing for multi-media presentations and expanded meeting capabilities.
'We have always enjoyed a great relationship with the Sheraton for our technical events,' said Forrest Ward, director of global readiness programs, Microsoft. 'And we were very pleased with the beautiful expansion that's currently come on-line and what's planned for the future. It's important for us to keep our events in Seattle, close to our corporate and product group speakers, and adding extra hotel and meeting capacity will support this goal.'
Seattle-based Callison was selected to handle the architectural design of the tower and Skanska USA Building Inc. serves as the project's general contractor.
'Offering a winning combination of signature warm, welcoming service, superior amenities and a prime location the multi-million dollar renovation and expansion of the Sheraton Seattle truly represents the future direction of the Sheraton brand," said Hoyt Harper, senior vice president, Sheraton Hotels & Resorts. 'It is wonderful to stand here today and celebrate this milestone with the entire Sheraton Seattle team.'
About Sheraton Seattle Hotel
The Sheraton Seattle Hotel, recipient of Meetings and Conventions Gold Key Award, is located at 1400 Sixth Avenue in downtown Seattle. Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 850 properties in more than 95 countries and 145,000 employees at its owned and managed properties.
Wednesday, October 03, 2007
Sky's the limit as luxury hotels find prime locations in Union Square
Two of the world's leading luxury hotel groups have booked prime locations at Union Square to serve people using the ICC Tower and visitors to Hong Kong as a whole. The W Hotel chain, the boutique hotel wing of Starwood Hotels & Resorts Worldwide, will take up residence in one of The Cullinan towers alongside the ICC, while the Ritz-Carlton will occupy the top 16 floors of the 118-storey International Commerce Centre (ICC) to make it the tallest hotel in the world.
For the Ritz-Carlton, it also means a farewell to the Hong Kong Island side of the harbour, where its premises in Central will be redeveloped into offices, and a venture into a new era with a six-star hotel helping to form the centrepiece of the West Kowloon project. The new hotel's ballroom, for instance, would be able to accommodate 500 people compared with 280 in the Hong Kong Island ballroom, Mr Lettenbichler, the Ritz-Carlton Hong Kong general manager, said.
The district offers W Hotel what Sherwood sees as the best possible location for the brand's first foray into Hong Kong when it opens its 400-bedroom premises in the first quarter of next year. The 300-bedroom Ritz-Carlton will have to wait until 2010, when the ICC Tower is completed, for its grand opening. "It's true that there were very few suitable locations in Hong Kong. But looking around the whole of Kowloon, this [location] is definitely ideal," said Stephen Ho, vice-president with Starwood Asia Pacific Hotels & Resorts, which also runs the Sheraton chain. Mr Lettenbichler said the location would provide the 300-bedroom hotel with more space and enable it to target a modern, trend-driven clientele without losing its traditional customer base and reputation for comfort.
"It is going to be unique occupying the top floors of a 490-metre high building, not only from a view standpoint but in the direction we are going as a hotel group," said Mr Lettenbichler, who is also regional vice-president of the Ritz-Carlton Group, and chairman of Hong Kong Hotels Association.
"Within the ICC Tower itself there will be massive office space and the area is already being seen as posing a big chance for the corporate finance community to move out of Central," he said. "It is not just the hotel which is an attraction, but the whole complex and its relationship with retail, the workplace, and leisure and entertainment."
Mr Ho and Mr Lettenbichler pointed to opportunities offered by the transport network with the Union Square's proximity to Kowloon Airport Express Station, future rail links to the New Territories and the mainland, and bus and taxi ports beneath the complex and pick-up and drop-off points on the approaches to the ICC entrance and The Cullinan. "We look at it as the future with a lot of activities once the whole cultural hub complex comes about," Mr Ho said.
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