Hilton chief puts faith in a passionate game

The Times  -  David Michels  may be one of the world’s best-known hoteliers but at the moment the Hilton Group chief executive is relieved he also runs the UK’s biggest betting shop chain.

With the hotel industry going through its most torrid time since the Gulf War, the buoyant trading enjoyed by Britain’s bookmaking industry has proved a boon, limiting the half-year profit decline announced on Thursday to just 10 per cent.

Michels is delighted at the performance of the 1,900- strong Ladbrokes chain and its online business and, if there were any doubt over its future within the Hilton stable, there is none now, despite his admission that there are “no real synergies’’ between hotels and betting shops. “Betting has had a cracking year,’’ he beams. “The successful flotation of William Hill and the sale of Coral at a top price have put a value on our company virtually double what it was two years ago when everyone was clamouring for us to sell it.

“We don’t suffer a conglomerate discount and we never have. It’s a bloody good job we didn’t sell it two years ago. There’s absolutely no reason to sell the business. It is probably worth more than £2 billion. It is an extremely cash generative business.’’

As he speaks, Michels is like a small boy talking about his favourite toy. His enthusiasm for the businesses he runs is infectious, although he cannot speak seriously on a topic for more than a couple of sentences without cracking a joke, usually aimed at himself.

I still recall the day he appeared at his first press conference after taking the helm as chief executive of Stakis in the depths of the last recession. Here was the man given the task of saving one of Scotland’s best-known companies from the brink of disaster, yet his first comment was: “The first thing I’ve got to do is get somebody to explain to me what a p/e ratio is.’’

Just over a decade later, and in the face of another dismal period for the hotel industry, the Hilton boss still trots out the same mixture of the serious and the flippant. Recounting how he was in Los Angeles for a board meeting of the Hilton Hotels Corporation, the group’s US marketing partner, on September 11, the pokerloving Michels says that as he couldn’t get a flight home he decided to hire a car and head for Las Vegas.

“I missed my wife’s anniversary and she still hasn’t forgiven me. She’s a hard woman. I also lost a lot of money at Vegas and couldn’t get a flight back until the Saturday. It was a bloody awful week.’’

If his doctor hadn’t advised him to stop smoking — his other great passion for 40 years — Michels admits he would probably be smoking more than ever given the pressure the business has been under since last September, when the terrorist attacks put a big dent in the hotel business.

“We had a very empty October. That was a shocking time. January and February were better than we thought, albeit still worse than the previous year, and everybody — including me — thought that business would continue to climb steadily. Then April and May were less good than we thought, although July was a bit better. The first-stage recovery did happen, but the second stage, to tell you the truth, hasn’t happened yet.’’

But despite the big hit on profits — exacerbated by the fact that Hilton owns many of its hotels in the worst-affected cities such as London and Paris — Michels insists the situation is nothing like that of a decade ago when the Gulf War and recession put the hotel industry into a tailspin that took six years to recover from. “I’ve been through five of these (downturns), and this one is the weirdest. Our worldwide revpar (revenue per available room) across the group is down by 5.4 per cent in the six months to June. It’s still better than in 1998-99 but not as good a year as 2000. Whatever you call it, it’s no crisis. Hotel companies are still making money. We’re used to companies not making money in a crisis.

“What’s most frightening is that we don’t know what’s going to happen. Hotels don’t know what occupancy is going to be next week. If there was a war with Iraq then London, New York, Paris and Rome would plummet dramatically. But Bradford, Düsseldorf and the like would probably only fall 2 per cent.”

Whenever the recovery does come, Michels is adamant that Hilton is better placed than most of its peers to benefit. Such is his confidence that he continues to invest in the product but despite forking out about £680 million for Scandic Hotels 18 months ago, he remains sceptical about the advantages of many big deals: “Consolidation ought to happen, but the trouble is it’s not a business where you can pay a premium. You can’t buy a business and close two of the factories. That’s why the famous consolidation has been much slower than everyone expected.’’

He also maintains that the present downturn has been insufficiently deep to flush out bargains. “Nobody has to sell, because nobody’s going to go pop. Companies are still too expensive. I don’t mean forever, but now.”

The big deal that everybody has been looking to Michels to pull off is a stitching back together of the company with its US counterpart, Hilton Hotels Corporation (HHC), after almost 30 years as separate companies. His predecessor, Peter George, came very close to sealing the merger four years ago, but his counterpart at HHC, Steve Bollenbach, is understood to have got cold feet.

Although many of the benefits of a merger are already being accomplished through a wide-ranging alliance covering such areas as marketing and reservations, Michels admits that it will happen one day. “I think it must happen at some point but I think there are only two things that will provoke it: either one share price is so out of kilter with the other that one can buy the other. Or a third party does something to change the balance entirely either by trying to buy one or the other, or both.’’

But for now, Ladbrokes remains the apple of Michels’s eye, buoyed by the Government’s enlightened decision last autumn to scrap betting tax on the punter and replace it with a gross tax on bookies’ profits. Michels says the uplift in sales since the scrapping of the tax is “heading towards 50 per cent. It’s been marvellous”.

He is also excited by the introduction of FOBTs — fixed odds betting terminals — of which about 1,000 have been introduced in the past three months. They look like a big fruit machine and offer several games that are controlled centrally. They avoid breaking rules on the number of fruit machines a shop can have. “It’s already big and we’ll soon have them in every shop. They are absolutely what the punter wants,’’ Michels enthuses.

Deregulation promised in the wake of the Budd report is the reason why, just 18 months after selling Ladbrokes’s casino division to Gala, the bingo operator, for £235 million, he is plotting a return to the casino arena. But the casinos he envisages will be different from Gala’s.

If the report’s proposals for US-style gaming resorts in seaside towns are implemented, Michels wants to turn Hilton’s hotels in Brighton and Blackpool into Atlantic City-style venues. “We have the buildings and the brand name and there is no doubt that in 2003 or 2004, or whenever they pass the legislation required, we will open casinos there. We’d be mad not to.’’

Yet, despite his enthusiasm for Hilton’s gaming plans, it is clear that hotels are what really fires his imagination, and the Scandic acquisition has prompted him to review the company’s exclusive focus on four and five-star hotels.

“I’ve got Hilton, that’s my main brand. That’s who we are. But I think I can make money out of the midmarket.’’

He is also not about to cash in his chips and take early retirement. “They’ll carry me out kicking and screaming from this job,” he says. “I love it. It really is a great privilege doing what I’m doing.”

Singapore:  Education gap plugged

The two existing institutions, Shatec and TMIS (Tourism Management Institute of Singapore), say they welcome the setting up of HMS.

Pakir Singh, chief executive of Shatec, the most established hospitality training body in Singapore, said, “I welcome it. It completes the whole training cycle.

“This is a move that reinforces Singapore’s position as a leading tourism education hub. The existing players will benefit from the expertise that HMS will garner from all over the world.”

Shatec, which has 1,200 students at any one time, runs systematic year-round programmes from Mauritius to Beijing. It offers courses up to diploma level and is accredited to American and Australian universities. It recently bought its own premises for S$12 million.

Despite the economic slowdown, its intake this year is higher than last year. It has had no increase in course costs for the last 10 years. The school operates two restaurants – Petals and the OCBC Executive Club – with a third, Rosette, re-opening shortly. It will also run the Regalis Court, a 40-room hotel, shortly.

Such outlets offer students exposure to “real life learning methodology”, said Pakir.

At TMIS, chief executive HP Loi said, “Tourism and hospitality is a wide ranging interdiscipline and there is still room for a good training institute catering to the senior level.

“This is indeed a good chance for Singapore to develop herself into a hub for such senior level training.”

He said TMIS would continue to focus on its forte which is the travel agency industry. “This is what we have been doing for the last 15 years and we will continue to do so. We will focus on our strong training areas which cover tourist guide training, fares and ticketing, travel agency operations, customer service and a host of other skill-based courses related to tour operations. These are very specialised courses not covered specifically in hospitality school.”

General manager of Holiday Inn Parkview, Dinky Puri, observed “The HMS seems to be designed for research at the master level and for executive education. It is unlikely to have any impact on the hotel industry immediately.

“It remains to be seen whether it will be relevant to the industry in terms of research and the kind of training given at the executive level. It may fulfil knowledge and information needs by way of research findings but some may argue that it is cheaper to employ a few consultants to carry out studies.

“It is good to know that Jennie Chua is involved with the project as she can keep in tune with industry needs which include forecasting, performance measurement and organisation strategy.”

Puri said the one institution that has made its mark nationally and internationally for its ability to deliver manpower to meet enterprises needs is SHATEC. “It is partly a model of the very successful Hotel School of Lausanne and makes no secret that it focuses on training for acquisition of crafts and supervisory abilities rather than research.

“It combines the apprenticeship system with the teaching of management.”

He added, “Whether it is SHATEC or HMS or TMIS, they are all Singaporean institutions and if each one plays out its role, it will take Singapore many steps closer to becoming the tourism training hub.”

Source:  TravelWeeklyEast.com

Six Continents Hotels to expand the number of Holiday Inn hotels in Australia, New Zealand and the South Pacific

ASIA Travel Tips.com  -  Six Continents Hotels is gearing up to expand even further the number of Holiday Inn hotels in Australia, New Zealand and the South Pacific over the next three years following strong performances from the brand, according to Six Continents Hotels Chief Operating Officer for Australia, New Zealand and the South Pacific, Phil Lee.

Celebrating its global 50th birthday in August, Holiday Inn has seen a rapid expansion in Australia, New Zealand and the South Pacific, moving from five hotels in 2000 to twenty-one in 2002 - a major contributor to the 25% growth the Holiday Inn brand has seen across the Asia-Pacific region over the last two years.

"According to Holiday Inn's revenue generation index, hotels operating under the Holiday Inn brand in Australia, New Zealand and South Pacific have generated 17% more revenue per available room than its direct competitors in the year to date to June 2002 - a 7% increase on year 2000 figures," Phil Lee said.

"This alone makes Holiday Inn one of the most successful brands in this region, despite the difficult environment this industry has been faced with over the last twelve months. The Holiday Inn brand is the mainstay of Six Continents Hotels' business and we have seen a huge explosion in the number of properties taking the brand on board in the Asia-Pacific region."

Six Continents Hotels' expansion plans for Holiday Inn in Australia, New Zealand and the South Pacific were reiterated following the brands' recent strong performance and growing interest from owners.

"Six Continents Hotels is building a strong strategic network throughout this region. We are currently looking to establish the Holiday Inn brand in locations that will represent the best placement for the brand and yield the highest return for our owners and stakeholders.

"We have already established a powerful network of Holiday Inn hotels in Sydney and Melbourne and will be looking to replicate this throughout other major traffic areas and regional centres in Australia and New Zealand. Portfolio additions such as Holiday Inn Darling Harbour and Holiday Inn Rooty Hill are the most recent example of this process," Mr Lee said.

As one of the world's most established hotel brands, Holiday Inn's appeal to both domestic and international travelers has made it an attractive proposition for owners throughout the region. It's phenomenal growth in developing centres throughout Asia such as China has also had a significant effect in Australia, New Zealand and the South Pacific, with an increasing number of international travelers from Asia choosing to stay with Holiday Inn instead of less established brands.

"Every year, 85 million guests stay at the 1600 Holiday Inn hotels around the world. Not only have domestic travelers embraced the brand since its introduction to the region, but we have been able to capitalise on its position as the world's most recognised hotel brand and maintain a strong share of international travelers as well - a huge achievement in such a short time.

"Six Continents Hotels is intent on establishing itself as the leading operator in this region in terms of placement of hotels, levels of service and market share within our competitive sets - a goal that is definitely within our grasp with Holiday Inn," Mr Lee said.

"Rooseum Lobby at Radisson SAS Hotel: Suggestions for Empty Spaces, by Luca Frei"

Absolutearts.com   -  Rooseum Lobby is a new collaborative project between Rooseum and Radisson SAS Hotel that gives Rooseum the opportunity to present contemporary art outside the institution and the public a chance to experience art in a different context. Four young, Malmö based artists will work in the hotel space during 2002: Christina Erman Widerberg, Andreas Nordström, Luca Frei and Anna Ling. Now it’s time for Luca Frei.

The exhibition Suggestions for Empty Spaces, by Luca Frei, opens on 30 August. The group of collages and drawings in the exhibition presents his latest works, and visualises the artist’s concerns with the idea of space as an open territory for questioning and possibilities.

Luca Frei’s latest projects have all in some ways been concerned with educational and working models exploring ideas of mediation relating to architecture, design, context and communication. Recent public projects included the realisation of the office space + lounge at Index gallery in Stockholm and the class-room for the Critical Studies program at Malmö Art Academy. Recent exhibition projects included Fria Aktiviteter/ Free Activities in collaboration with Anna Ling, Wight Gallery, University of California ( Los Angeles, 2001), a project that questioned the relation between education and control; A Laboratory for Proposals/ Proposals for a Laboratory, graduation exhibition, Peep Gallery (Malmö 2002) and participation in the Gwangju Biennale (Korea, 2002).

Rooseum Center for Contemporary Art

World tourism study puts Scotland last

Scotsman.com  -  SCOTLAND has come bottom in a league table of tourist destinations across the world.

A study by consultants forming part of an official inquiry into the industry gave Scotland less than half marks for current performance.

And it said lessons should be learned from the way tourism was treated in places such as Ireland, Catalonia in Spain, the Veneto in Italy and Ontario in Canada.

The research was commissioned by the Scottish Parliament’s enterprise committee, which has launched an inquiry into the future of tourism in Scotland.

The industry produced some £4.5 billion for the Scottish economy in 2000 and ranks as the country’s fourth-largest employer.

But for the past five years it has shown a decline in real terms.

Today committee convener SNP MSP Alex Neil said it showed there were major challenges ahead.

"Scotland’s relative position has slipped significantly in recent years and in particular the number of foreign tourists coming to Scotland has fallen back quite considerably."

He said the debate should not be about the future of Scotland’s 14 area tourist boards. "We have to stop navel gazing and concentrate on how to sell Scotland internationally. We will only achieve that if we sell Scotland as a whole and get rid of this parochial nonsense of one area trying to outbid another."

Using case studies of 16 comparable destinations around the world to identify key factors in a successful tourist industry, the consultants said the dominant message for Scotland was the need for strong leadership and vision. And they said the problems facing the tourism industry should be addressed in a "bold, aggressive manner".

The study by consultants Stevens and Associates, in collaboration with the Scottish Tourism Research Unit at Strathclyde University, called for:

A clear and focused national tourism strategy with major private sector involvement

More strategic co-operation between service providers, allowing the private sector to take the lead, with the public sector playing a support role.

Promotion of innovative products to meet new demands of the market, not simply defending existing products.

A clear market branding that promotes Scotland as a whole, if necessary at the expense of regions within Scotland.

Quality research with up-to-date information easily available to tourism businesses.

The report emphasised the "essential" need for high-quality integrated transport and said Scotland must be accessible to key international markets, especially by air. And it argued tourism policy should reflect the recognition that the quality of the environment is Scotland’s primary tourism asset.

Comparing Scotland’s performance with the other destinations, the report stated: "Whereas Ireland has a similar size population, land area and population per square km to Scotland, it is receiving higher numbers of international tourist arrivals and corresponding receipts. The same is true for the regions of Catalonia and Veneto."

The study said Ireland had enjoyed 15 years of strong, sustained and impressive growth in tourism thanks to strategic leadership from the government and a fully engaged private sector, along with an emphasis on quality and service.

Catalonia’s tourism industry involved close public-private sector collaboration and aggressive marketing . Veneto was notable for its low taxation, good access by road, rail and air and a well-organised private sector.

Ivan Broussine, chief executive of the Scottish Tourism Forum, praised the consultants’ report and backed its call for more private sector involvement. "It is important to have a national lead for overseas marketing, but the private sector are the ones who are able to suss out the market," he said.

Tourism touted as solution to global poverty at Earth Summit

(AP) -- International tourists could help address global poverty, tourism industry officials at the World Summit said Friday.

Tourism "brings money to rural areas, creates lots and lots of jobs and helps to create small businesses -- from transport to accommodation," said Dawid de Villiers, of the World Tourism Organization.

International tourists spent an estimated $462 billion last year.

Delegates attending the 10-day World Summit on Sustainability are discussing ways of saving the environment and combating poverty.

The World Tourism Organization, in conjunction with the U.N. Conference on Trade and Development, launched a new initiative Friday aimed at helping poor nations boost their tourism industry.

The project's main goal would be to encourage investment in poor countries' infrastructure to enable them to develop their tourism sectors, said Francesco Frangialli, the tourism organization's secretary.

Last year, about 693 million people went traveling, providing income for many of the world's least developed countries. However Africa, the world's poorest continent, attracted just 3 percent of the international tourism market.

The new initiative would aim at changing this, Frangialli said.

Groups like the World Wildlife Fund and Greenpeace have often criticized the tourism industry for damaging the environment and eroding local culture.

"I don't think they should encourage poor countries to rely on tourism," said Daniel Salan, who was representing Kenya's Maasai people at the summit. "Our communities don't benefit from tourism. It is organized and operated by foreign companies, and they are the ones who earn the money."

The World Tourism Organization said it was aware of the risks of mass tourism and that it would seek ways to "balance the impacts of tourism socially, ecologically and economically."

Hideous Sydney Hilton to be reborn

Smh.com  --  Sydney's Hilton Hotel was a "very ugly, intrusive element on the streetscape" and would be "reborn with a new purpose" after a planned $400 million revamp of the site, the architect of the redesign said yesterday.

But a news conference to announce details of the redevelopment was dominated by questions about workers' entitlements after Thursday's news that 467 of the hotel's staff would be laid off when it closes its doors on November 29.

The general manager of the Sydney Hilton, Andrew Flack, said the hotel had added "a bonus week's payment" to redundancy packages of staff who stayed until the hotel closed, and that long-term employees would receive benefits the equivalent of six months' pay.

However, the hotel union said workers would be entitled to those benefits "even if the Hilton was not shutting its doors".

Once a popular spot for visiting celebrities, the hotel is best known as the site of a 1978 assassination attempt on the Indian prime minister Morarji Desai. Two garbage collectors and a policemen were killed when a bomb hidden in a bin on its George Street side exploded

But the architect Richard Johnson said it had "lost its position as one of the great hotels of Sydney".

"At the moment it's an alien object," he said.

The plan would "open it up and connect it back to the city".

The centrepiece of the project, expected to take 18 months, will be the demolition of the existing George and Pitt street facades, including the much-maligned car park ramps on Pitt Street.

New glass and sandstone facades designed to "relate to the Queen Victoria Building" and other nearby historic buildings would be linked by a large "inner court" running through the centre of the site.

The Marble Bar would remain, but two other famous bars - the America's Cup Bar and the Henry the Eight bar - will disappear.

There would also be 15,000 square metres of commercial office space and a convention centre for up to 3000 delegates.

Upscale, Down Fee

This fall, grand hotels are cutting their rates like never before

USNews.com  -   For a long weekend in October that Juli Echols describes as a "getaway just for the girls," the New Orleans attorney wanted to visit Manhattan with daughters Courtney, 15, and Ashley, 13. But rates were running $450 a night at the kind of upscale property she preferred–a tad rich for her taste.

Then she phoned the Waldorf Astoria. For $349 a night she could stay on the landmark hotel's concierge-level floor, where guests are treated to continental breakfast and evening hors d'oeuvres. The Waldorf even threw in a pair of two-day passes to attractions like the Guggenheim Museum, the Bronx Zoo, and the Museum of Television & Radio. "That clinched it," says Echols.

This autumn is unlike any other in the travel business. A widely anticipated summer recovery in tourism appears to have fizzled, forcing hotels and resorts to extend–or even sweeten–existing specials. "There are more deals out there, and they're concentrated in the weakest parts of the travel industry," says Mary VanMeer, editor of the bimonthly online newsletter ThriftyTraveling.com. And weak spots are everywhere. In Florida, for example, the Boca Raton Resort & Club gives half off an adjoining room for the kids from November 24 through December 1; rates start at $250. Imperial Majesty Cruise Line, which runs two-night cruises from Fort Lauderdale to Nassau, Bahamas, is offering $179 weekend rates this fall, all meals included. Over in Aspen, Colo., rooms at the chic Hotel Jerome go for as little as $125 a night through November 21, a discount of $300. Just keep in mind that it's hurricane season in the tropics–and a little early for snow in the Rockies.

Although bargains abound, the most noteworthy are at high-end hotels in urban destinations. In New York, 9/11 anniversary jitters and the uneven economy are prodding even the most posh properties to prune prices. But nothing can compare with the Houston Omni's Red Carpet Weekend Package, which has plummeted from $2,000 to $199 a night. An honest-to-goodness red rug rolls out to greet you, and champagne and strawberries await in your suite. Some of the best rates for high-end properties are listed on Site59.com, a Web site specializing in last-minute travel packages. "People overcome their fear of traveling," notes VanMeer, "when they're offered a good enough deal."

Nor do they mind condensed trips. Nine out of 10 Americans are planning a weekend trip this year–a 27 percent jump from 1996, according to YP&B, an Orlando travel consulting firm.

True, a shorty won't give you the same mellow afterglow as a two-weeker. Think of it as "a pit stop [that] can help you keep running the race without blowing out the tires," says Mark Gorkin, a Washington-based organizational-stress consultant. But don't make the trip too short. "It takes one night to adjust to your new environment and a second just to feel as if you're on vacation," says Mark Goulston, a medical school professor who wrote The 6 Secrets of a Lasting Relationship. "Then you start to unwind."

Pick one. A little preplanning helps avoid vacation meltdowns. "Recall your best and worst brief trips," Goulston advises. "Keep what was good and eliminate what was bad." If you're taking the kids, he recommends letting each one pick an activity, so they feel included.

Then again, a couple of free days in the city is enough to make some travelers happy. "I dearly love the downtown experience," says Dolores Kanaley, a retired schoolteacher from Wilmette, Ill. This November she's planning to indulge with two nights at the newly refurbished Hotel Inter-Continental Chicago for a well-priced $349. Freebies include parking, hot toddies, gift wrap, and do-it-yourself aromatherapy. She and her 13-year-old granddaughter will stroll up and down North Michigan Avenue, enjoy the holiday lights, and get a jump on Christmas shopping. And if the Windy City lives up to its name? Kanaley plans to seek solace in the arms of Santa, who'll be presiding in the lobby of the Inter-Continental.

Romp in the pomp

ON THE AVE HOTEL

$225 a night

The deal: New York's On the Ave Hotel cut the price of its $475 penthouse suites.

How posh? Belgian linens, four truffles nightly on overstuffed Euro-pillows.

THE OMNI HOUSTON HOTEL

$199 a night

The deal: The Omni Houston Hotel's Red Carpet special is normally $2,000.

How posh? A butler serves a meal in your suite; chauffeured town car.

THE FAIRMONT SAN FRANCISCO

$189 a night

The deal: That's $60 off the rack rate at San Francisco's Fairmont. Plus free parking.

How posh? Locale: tony Nob Hill. Gift basket goodies include Ghirardelli chocolate.

WYNDHAM EL CONQUISTADOR RESORT & GOLDEN DOOR SPA

$154 a night

The deal: Book a $205 room for three nights, get a fourth free at Puerto Rico's Wyndham El Conquistador.

How posh? Six pools and a private island.