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TOURISM
- May 2000 Feature Article
Competing
for Guests WHETHER travelling for business or pleasure, your hotel stay has the ability to either make or break your trip. The type of lodging that you choose also makes a difference. The choices in accommodations are becoming increasingly varied. Do you opt for a large full-service hotel, economy-style lodging, or even a bed and breakfast? Statewide, Kentucky is somewhat overbuilt in the lodging industry, according to D. Ray Gillespie, executive director of the Kentucky Hotel Motel Association. The abundant supply of lodging options is good for the consumer but bad for the hotel industry. "The hotel industry has not been, over the last couple of years, the most healthy industry," said Gillespie. Statewide, occupancy rates have averaged between 59 to 60 percent the last few years. That rate depends upon the time of year and varies greatly by property. As lodging options expand, hotels are forced to compete for consumers. Anyone who has traveled much knows that good service, clean meeting rooms, and an attentive staff can make all the difference. In fact, good service is essential in today’s market, say Kentucky hotel owners and marketing specialists. That may be especially true for the state’s largest hotels, which typically offer more elaborate guest services than smaller properties. "The key to this business is people," said Gillespie, whose trade association has 200-plus members throughout Kentucky. "The hotel industry is a people-oriented business." Kentucky has its share of large hotels and motels – classified as those with more than 200 rooms. The latest available data from the Tourism Development Cabinet’s Department of Travel shows just over 30 hotels and motels in Kentucky with more than 200 rooms each. Those figures are from 1998; last year’s data will be available sometime this month. (May) The majority of larger properties are in Lexington and Louisville. Large properties, however, do not represent the current trend in accommodations, according to Gillespie. The latest trend in the lodging industry is toward smaller properties with anywhere from 50 to 100 rooms and no on-site food service. As a result, the state’s largest hotels are finding their niche may be in the variety of services they can offer to guests. Many have on-site recreation facilities, restaurants, and large meeting areas, in addition to more specialized offerings.
Executive Inn Rivermont The newly refurbished Executive Inn Rivermont in Owensboro is a good example of a property that is bucking the current trend toward smaller lodging places. West Virginia native John Bays bought the run-down inn last year in November. The massive property has 640 sleeping rooms and 140,000 square feet of meeting space. It was built in the 1970s and has a colorful history of attracting performers like Loretta Lynn and Wayne Newton. "It was known for its entertainment," said Bays. But over the past five years, the hotel became run-down and suffered serious financial losses. Bays, 57, is planning to turn the property around. He has made a career of purchasing bankrupt properties and breathing new life into them. "I haven’t had one yet that didn’t turn out to be very successful," said Bays. "I do what I say I’m going to do. That’s the only reason that I’ve been successful." Bays will spend $10 million on the property before its completion this June. He says he’s spent nearly one-quarter million dollars on signage and lighting alone. The first thing he did when he bought the inn was resurface and re-stripe its 17-acre parking lot. His workers replaced almost all the roofs, put in new heating and air conditioning, and replaced 640 bathrooms. "What we’re doing now is putting marble in the lobby," said Bays. Once completed, the hotel and attached convention center will have on-site stores, offices, tennis courts, and an indoor Olympic-sized pool. "It’s a place where you can have a meeting and do just about anything," said Bays. "They (guests) won’t have to leave the hotel. They can do anything they want right here." Bays said he has already booked $7 million in new business for the hotel. "My goal next year is to book $20 million," he said. Bays has high hopes for his newest acquisition. He would like to open a casino in the hotel. While he understands the political ramifications, he believes Kentucky will eventually allow casinos to operate in the state. "I really think that down the road, Kentucky is going to have gambling because every state is taking their money," Bays explained. In the meantime, Bays’ new hotel will focus on customer service, which he says is absolutely critical to the success of a hotel. "I’m a fanatic about customer satisfaction," said Bays. "My employees know what I expect and they understand my philosophy that the customer is always right. You take care of people and make them happy. That’s how you can be successful."
The Seelbach Hilton Much the same philosophy exists at the Seelbach Hilton in Louisville. This property was built in 1905 and has been featured in numerous national and international publications. It was also featured in F. Scott Fitzgerald’s The Great Gatsby. The Seelbach has 321 rooms and meeting rooms for up to 1,000 visitors. It is well known for its five-diamond restaurant, The Oakroom. "We are the first and only hotel in Kentucky to have a five diamond restaurant," said Wendy Cocanougher, the Seelbach’s director of sales and marketing. "There’s quite a few things that make this hotel unique." Cocanougher says the Seelbach is newly renovated and is accustomed to being in the spotlight. It has been the lodging of choice for presidents and movie stars. Closer to home, Miss America Heather French and Lt. Gov. Steve Henry will hold their wedding reception there later this year. "Even though we are in the spotlight a lot, our management staff is very humble," said Cocanougher. "Service is unlike anything else you will experience in Kentucky. You can have a beautiful hotel, but if you don’t have good service, no one will come back."
Marriott Griffin Gate Lexington’s equivalent of high-end lodging is Marriott’s Griffin Gate Resort on Newtown Pike. This resort property is one of only two hotels in Lexington to receive the Triple AAA Four Diamond Award, which is given to lodging places that exhibit a high degree of service. Ray Robichaud, director of marketing for Marriott’s Griffin Gate, said his property caters to those seeking a resort atmosphere. The hotel has 409 rooms, 14,000 square feet of meeting space, and a variety of in-house services. For example, there’s a full-service business center, which offers faxing, mailing, computers, and typing services. An in-house audio/visual department attempts to ensure that all services are met for those in meeting areas. Recreation comes in the form of an 18-hole championship golf course, a pro shop, two lighted tennis courts, indoor and outdoor swimming pools, and a health club facility complete with saunas and an on-staff masseuse. In addition, Marriott’s Griffin Gate Resort also has three restaurants on site plus a hairstyling salon and gift shop. "We kind of look at this hotel as a unique situation," said Robichaud. "We are a resort property. When people come here they expect the resort experience." Robichaud agrees that travelers have more options than ever in the form of lodging. An abundant supply of hotel options has caused some area properties to feel the pinch of competition. As a result, Robichaud’s hotel is focusing heavily on group business. "It (increased competition) probably doesn’t affect us quite as much as some of the other hotels," said Robichaud.
Lisa Summers (lisasummers@lanereport.com) is a staff writer for The Lane Report.
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