They’re not gone for good, but they’ve been replaced by select-service hotels as the sector darling, according to the experts at Bisnow’s third annual DFW Hospitality Summit at the Westin Galleria Dallas yesterday. (Thankfully, our Texas-shaped waffles will still be on the continental breakfast buffet.)
FelCor Lodging Trust chairman Tom Corcoran told the crowd of 150 that the full-service model was born in the ‘50s (along with other dying art forms, like the TV sitcom and rock and roll) with restaurants and bars in the local Holiday Inn in small-town America. That model worked through the ‘70s, but as restaurant competition heated, people started going to hotels just for the rooms. Margins are better, too, for select- and limited-service hotels, he says.
Tom cracks up at Gatehouse Capital CEO Marty Collins. It was the Tom and Marty Show as the pair opined that Austin is a breeze when it comes to governmental red tape (at least compared to California, where they've confused red tape with red carpet). Markets like Santa Monica are tough, Tom says. He’s still trying to complete a project started there in 2006.
We learned something else about Tom (right, with US Bank’s Kent Howard): for about a 90-day period of his life, he cleaned urinals and toilets on the Kansas turnpike for around 10 cents a potty. Someone call Mike Rowe, because that's a dirty job.
Marty (left, with Hall Financial Group prez Don Braun) says select-service and limited-service hotels account for 60% of supply growth. Without incentives, full-service hotels simply cost more than the value, he says. (And unlike other cost-prohibitive undertakings, like owning a dog or coaching Little League, there's no emotional reward.) Plus, developers can add a third-party restaurant space into a project, which fits well in urban markets.
Hotels are transitioning toward simple, out-of-the-ordinary, boutique experiences and away from the big box brands, says 5G Studio Collaborative partner Scott Lowe (left, with Colleyville economic development director Marty Wieder). Many hotels are also branding their design to match the cities where they’re located, he says. (Free 10-gallon hats with every weekend stay!)
Here’s event sponsor WLS Lighting Systems’ Ken Bronstad (right) with Lone Star Hospitality Services’ Andy Ratchford. Ken tells us WLS is a lighting design company that’s been in business for 40 years manufacturing and sourcing lighting products. Over the years, the firm has retrofitted or upgraded lighting in more than 6,000 shopping center parking lots. A big plus for clients: WLS can improve their lighting and save energy doing it.
Event sponsor BKM Sowan Horan’s Rick Sowan (left, with CoStar’s Maxx Mantooth) tells us the CPA firm specializes in serving the real estate industry.
We couldn’t keep this comparison to ourselves. Here’s Tom from his glory days with a head full of hair (and hanging out with the late Ted Kennedy) and a shot of film critic Gene Shalit. Separated at birth? You make the decision. Stay tuned for more event coverage this Monday.
)
)
)
)
)
)
)
)
)
)
)
)