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Lodging 2014 Hotel Survey

Marriott International Brands Finish Atop Upper Upscale, Upscale Tiers

By Michael B. Baker / October 15, 2014 / Contact Reporter
Business Travel News on X

Traditional triumphed over avant-garde in the upper upscale and upscale tiers in BTN's 2014 Hotel Chain Survey, with Marriott International's flagship brand and Courtyard brand garnering the highest overall scores from buyers.

Marriott Hotels & Resorts' first-place finish, its first since 2007, shows a shift in buyers' attitude compared with recent years, when boutique-style brands ruled the tier. In 2013, trendy Kimpton was the top brand, but that brand slipped to 10th this year.

[Please click here to view the digital edition of the 2014 Hotel Chain Survey, featuring all rankings and downloadable as a pdf.]

Marriott, meanwhile, improved its score significantly year over year and rebounded from a sixth-place finish in 2013. Similarly improved this year were second-place Omni Hotels & Resorts (ranked 11th in 2013) and third-place Westin Hotels (ranked fifth in 2013).

Bjorn Hanson, a clinical professor at New York University's Tisch Center for Hospitality, Tourism and Sports Management, said the top brands shared "what's become one of the attributes of upper upscale hotels: looking for a reliable traveler experience."

"They're three traditional lodging brands, not trying to look flamboyant or create odd architecture," he continued. "Omni's a bit of an outlier, being on a smaller scale and bordering closer to luxury, but it has a strong central control and has become a very respected brand."

Traditional, however, does not mean cookie-cutter. Marriott, top-rated for its public business facilities, several years ago began rolling out its "great room" lobby concept, designed so that "every lobby gives you a sense of locale," said senior vice president of brand management Paul Cahill.

Marriott also scored notably higher than its competitors for its handling of group business, both from a sales and service side as well as meeting facilities. The brand has launched several group initiatives in recent years, including its Red Coat Direct App, which lets meeting planners make simple onsite requests—a change in temperature, for instance—rather than have to track down a hotel staff member. Next year, Marriott plans to evolve that app to handle some billing aspect, Cahill said, and it also is testing a Pinterest-style platform through which planners can share ideas.

Despite sitting at a price point higher than many of its competitors in the tier, Omni earned the top score for the overall price/value relationship. The brand also is one of the few in the tier to offer complimentary Wi-Fi across its portfolio to guests who are loyalty program members, regardless of their status within the program.

Omni—which has significantly bulked up its portfolio in recent years both through acquisitions and new builds, including properties in Dallas, Fort Worth and Nashville—also was top-rated for the physical appearance of its properties. Chief marketing officer and senior vice president of sales Tom Santora said that stems from the brand's development of hotels with "great facilities, though no two Omnis are alike."

"Some brands rely on the same bedspread, mattress and carpet, and that's great, but at Omni, we think our customers are looking for something different as they travel," he continued. "They want local color whether or not they get a chance to explore the city, and we do that through the art, menus and music that's playing through the hotel."

Starwood Hotels & Resorts' Westin brand earned the highest scores in the tier for its service, in-room personal amenities and, in a tie with Marriott, consistency across the brand. Westin was a pioneer in branding in-room amenities—such concepts as its "Heavenly Bed" and "Heavenly Bath" have launched imitators in competing brands—more recent service and amenity development has centered on wellness, global brand leader Brian Povinelli said. Such initiatives have included healthier foods in restaurants and event catering, a meditation program and workout gear available for guests to rent.

Personalized service also has been a key focus, he said. "Last year, we started getting some of that infrastructure in place, to get data in the hands of associates, and we've created a new position around guest outreach," Povinelli said. "Now we can act upon that knowledge. If they've requested things in a reservation, like a connecting room, we can give pre-arrival confirmation."

Overall, the upper upscale tier has had a strong year. As of August, year-to-date upper upscale demand in the United States was up 3.8 percent year over year, while supply increased 1.5 percent, according to STR Global. As such, occupancy during that period increased 2.3 percent, and average daily rate increased 4.9 percent.

Courtyard, Doubletree Lead Upscale Tier

With a mix of select- and full-service brands populating the upscale tier, buyers gave top ratings to one of each. Select-service Courtyard by Marriott earned the highest score in the tier, with Hilton's full-service Doubletree brand very close behind.

Courtyard, improving from a third-place finish in 2013, earned top scores for arranging group travel, data quality, service, physical appearance and business amenities both in guest rooms and in public spaces. Doubletree, up from a ninth-place finish in 2013, was the top brand in terms of its sales staff, meeting facilities and in-room personal amenities. Both brands tied with the highest score for overall price/value equation.

Hyatt Place, which had been the top scoring brand both in 2012 and 2013, rounded out the top three.

Courtyard, which essentially created the select-service upscale model, has evolved to a massive global brand. It's on track to open its 1,000th property next year and is "growing at an extraordinary pace outside of the United States," said Janis Milham, Marriott senior vice president of modern essentials and extended-stay brands.

Renovations within the brand have helped keep its scores for appearance and amenities high, she said. The brand several years ago introduced a multi-functional, socialization-friendly lobby, and it now has spread through more than 90 percent of Courtyard's portfolio. More recently, it developed a new guest-room décor designed to accommodate younger travelers, which now appears in more than 50 Courtyard properties.

Doubletree also is becoming an increasingly international brand, said its global head John Greenleaf. Its 400th hotel opened this month in Cairns, Australia, and the company now is in 34 countries; six years ago, it was only in one. Of the more than 150 hotels in its pipeline now, only 39 are in the Americas, he said.

As to its strong performance in the chain survey this year, Greenleaf said Doubletree is improving both among internal guest surveys and with quality-assurance visits as it "focuses on quality of the product and the experience, which continues to pay off."

As with the upper upscale tier, upscale hotels in the United States have been making strong gains in both rate and occupancy this year, according to STR Global. Upscale hotel development is above the national average overall, with a 3.5 percent increase in supply year over year through August, and demand was up 6.7 percent. ADR during that period increased 4.8 percent, and occupancy increased 3.1 percent, the firm reported. 

This report originally appeared in the Oct. 13, 2014, edition of Business Travel News.

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