As we bid adieu to 2007, it’s our annual tradition here at Hotel Interactive to look back on the year that was. We’ve seen a lot of great things, and many more things not up to snuff. Here’s what got us most excited during the past 12 months.
Acquisition of the Year
Capping a couple of years of huge deals that took public companies private, The Blackstone Group’s purchase of Hilton (NYSE:HLT) was tremendous. At a monstrous $26 billion, this is quite possibly the crowning achievement of the investment group. While Blackstone was already a major player in the lodging industry, this catapults them to the forefront of the industry. The deal follows in the footsteps of last year’s acquisition of Harrah’s Entertainment by Texas Pacific Group (TPG) and Apollo Management, L.P for $26.8 billion.
New Hotel Development of the Year
The $800 million MGM Grand Detroit opened in October and is already proving to be a boon to the company’s MGM MIRAGE’s overall bottom line. It replaced a temporary casino only facility and is a mega resort on par with those in Las Vegas and has many elements found at its owned Borgata (which is a joint venture with Boyd Gaming) in Atlantic City. It’s got 400 chic and stylish guest rooms and room on site for another 400. They also have restaurants from celebrity chefs such as Wolfgang Puck and two-time James Beard Award-winner Michael Mina.
Best Conferences
There were several really strong conferences this year, including such critical stalwarts as the Lodging Conference and the Americas Lodging Investment Summit (ALIS). The Lodging Conference has found its niche as the place to interact with the industry’s top players in a relaxed atmosphere conducive to making deals happen. ALIS attracts throngs of people with capital to invest. The upcoming Hunter Investment Conference is quickly taking on its role as the ALIS of the Southeast and is one to watch in upcoming years.
For supplier-hotelier business building/educational events, the BITAC www.bitac.net events are proving to be a must-attend. These sessions cut through PR talk and drive straight to the crux of an issue. Most panels seem to be dressed up advertisements for whoever is speaking. These, however, avoid that trap and stay grounded in what’s really in the mind of the hotelier.
Most Intriguing New Brand Announcement
Yeah, I know you thought I was going to say some lifestyle hotel. But I am more interested in the deal between Marriott International and Nickelodeon to create up to 20 new Nickelodeon Resorts by Marriott by 2020. I’ve seen the one in Orlando – which is branded Holiday Inn – so I have seen the potential of this brand first hand. The water park theme combined with such characters as SpongeBob SquarePants and Dora the Explorer has all the makings for a huge homerun. The first one will debut in San Diego and feature 650 rooms, a 100,000 square foot water park and lots more.
Best Emerging Destination
In 2007 Macau started raking in more dough on a monthly basis from casinos than the Las Vegas Strip. This Chinese protectorate is expected to bring in a mind boggling gross revenue of $10 billion for 2007 when all receipts have been added up – an incredible 46.5 percent increase from last year. A lot of the growth is due to properties opening up to meet current demand from major Las Vegas players such as Steve Wynn, MGM MIRAGE and Las Vegas Sands Company. The Sand’s new Venetian is actually the second largest building in the world and three casinos each the size of a football field. The MGM Grand Macau opened earlier this month and took in about $6.6 million in its first two days.
Foreign Markets Generating Most Hotel Buzz
It has to be India and China. With seemingly every major hotel company fighting to make a play in these developing countries, it’s game on in Asia. Suddenly the doors have swung open and the race is on to see which brands can capture the minds of consumers. There will be plenty of competition, but these two markets happen to be the most populated countries in the world, together representing about 2.5 billion people. Incredibly India has less hotel rooms than Orlando, so expect to hear these markets dominate conversations in years to come.
Best Unsung Hotel Heroes
Though it wasn’t widely reported, hotels in San Diego hotels opened their doors to fire evacuees without gouging them at tip top rates. It was refreshing to see the industry giving back to those that were in the midst of a possibly life altering crisis. I’m sure these hotels will be rewarded with future loyalty.
Glenn Haussman, Hotel Interactive's Editor In Chief, has been specializing in the hospitality industry for more than 10 years. He often speaks at lodging industry events, is quoted frequently as an expert source by newspapers and is an adjunct professor at New York University. |
