Friday, December 21, 2012

Bankrupt Hotels and Resorts

It may be me, I could wrong, but I tire of reading about what was once "high class" resorts in the tony foothills of Tucson, Arizona no up for sale, missing their mortgage payments, in foreclosure or, facing bankruptcy.
      Back in the days before " the flood," here in America, when one chose the hospitality field for a career, especially in management, it was considered a classy career move.
      It is my opinion that something bad happened: the industry began to make a lot of money - tons of it. I was in marketing management at the time. It was EASY. Long story short - everybody got greedy. Hotel management was never very good, over zealous accounts at best, really. And, everyone in marketing knows what an accountant's wild night out is - a third glass of wine.
      Anyway, the tide of the industry turned slowly, but definitely away from a "calling" of Hostelry, that of being a vocation - Innkeeper, to just being an investment. That's all, you just bought something at a low price, then sold it at a higher price and pocketed the difference, or re-invested it into something else.
      These land-sharks got so slick, the fins in the water got so fast, they would just announce they were breaking ground for a hotel and someone would offer to buy the land, a developer, maybe, and they would sell out at sometimes a 50% profit before they even turned a spade of dirt. Frenzy.
      The dot-com bubble in early 2002 blew that out the window. That hit the crapper and it hasn't been nose up since. The spiral has been downward since, tourism has never recovered, sales departments are ghost towns, and with this stupid economy it's any one's guess if it ever gets better.
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Monday, August 20, 2012

Things Corporate Hotel Auditors Tell me About Sales

While in town doing an audit on their southwest installation of one of the best resorts, once classified as in the "best ten in the world" we chatted under the wing of a B-17.
     "Things are awful, everywhere," he told me. Like I didn't already know. The local newspaper satisfies itself writing stories about rat-poop in  restaurants and picking nose-hairs out of the county supervisors lunch boxes for "high-profile news stories and on occasion, prints declining tax receipts from area hotels proving they are drowning in debt.
      Anyone who has ever been in the business or close to it knows when the water circles the drain. Management ALWAYS lies when confronted. Even the newsprint guys are smart enough to know that.
      Anywho, said auditor opines that when the water level in the lifeboat rises, the survivors watch the captain cut the notch on the inside of the boat. " Sales is always the first to go," he says.
      No kidding, I retort. Hotel Management has always been rooted in the 13th Century, the dungeons of the chain mail dark ages. Any monkey can sit on their wallet, it's quite easy to train them to do that. So the water finally hits the notch on the inside of the boat, and if the Sales Department has the smarts to have already warmed up their collective resumes, the captain "invites them to get wet.
      If not, that's what the knife is for. If he is any kind of human being, the surgery is done quietly, in his office$. Usually not, though.
      Remember Esquire Magazine's "Stanley Bing"? Everything he ever wrote was true, on point, and I can verify. I was there. The bloodletting (an expression usually coined by mass firings) was done at this point in the hotel biz: Sales first, throat cuts, over board.
     Then Marketing followed by advertising - a General Manager I once knew said, " I guess a sales person is like a billboard, you never really know what value they give you." He started as a cook, then a bell boy, front desk clerk, and so on.
     Another general manager I once knew told me the biggest mistake he ever made was telling the head of the sales department, Yes! He was a chef.
     The Chief Executive Officer (the 'big guy') of a major hotel management company headquartered in the Dallas Fort Worth area never ran a hotel.
      There are creative ways to remedy the disastrous slump in hospitality: don't treat hotels and resorts as investment vehicles. In Europe, they were once known as careers, institutions of learning, creations of a hospitality experience. Their goal was NOT just profit.
      Lastly, sales is the generator of traffic, these are the people who should be kept on to the last. If they are utilized , new and more creative measures can bring in to add to the revenue base.
      But, then again, Management has got to have the creativity to try it. The 7 unholy words need to be scuttled.
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Sunday, August 12, 2012

Hi Profile Big Bucks Resorts ....The end??

I met a Controller, Auditor....from New York in town to re-work the books of one of the country's big high finance high dollar resorts of this town here in Arizona.
    When we talked, quietly in a corner over a coke, I explained my background now retired, in his business.
     " things are tough - all over, " he said. The economy has hit everyone hard. Occupancies and revenue are tough to come by.
     Sitting in the B-17 Museum here in Tucson, I meet a wide variety of people from across the nation and the world and engage in deep conversations of intense interest.
     It's always the people who work the numbers who tell you the truth. Management will never tell you. They lie. They always lie. When revenues are down, he said, they always fire the sales staffs, then the move up  to Marketing, then advertising, and lastly - front desk clerks
     Any idiot can sit on his wallet.
     All the high end resorts in this town  are in rough shape, he said.
     This we know, I told him. Our wonderful newspaper is covering the story pretty thoroughly.
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Saturday, July 21, 2012

Hotel Careers in Sales & Marketing - It's Over

If you define target markets by segments, a decent size sales staff and a well educated Marketing Director with years of education and experience behind him/her: if you mean a reasonable operating budget for sales people and a computerized sales operation and intrnet sophistication.
      If, in the lexicon, of the 21st Century business vocabulary of the hostelry lexicon, a nation-wide
positive search and destroy mission objective of the top leadership and the connection between operations management and the marketing department is hand-in-glove: yes, hotel careers in America have had it.
     It is truly over.
     General Management of htels and resorts in America have usually been operations or food and beverage/kitchen troops directly out of the trenches. They are experts at counting dollars, cents, spoons, overages, losses in quarters, percentage points, and napkins.
     Scratch their hairlines, and underneath you will find a frustrated sales person. They all feel the same way about their sales departments:
  • I can do it as good as they can without them, or
  • I do it without them and save their salaries.
Neither of which is true, but, unfortunately, they never believe you, will ultimately in bad economic times will have to find out the hard way.

     The economy is as bad in the Hotel and Resort sales and marketing side for so long, there appears to be no end in sight. Economic indicators and the John Kenneth Galbraiths of the country prognosticate no turnaround this year, at least, so, those that hang on, are doomed to....well, endure the unpleasantness and/or termination at will.
     You heard it here, first.
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Wednesday, April 4, 2012

My Hotel Career - Short Version

First hotel job was at a Hilton franchise. It was run by a foodie who sold catering business to the locals, and get this, all the money was cash. Right, the customers, HAD to pay in cash. The Ass't F&B ditto. I can remember him pocketing piles of cash in his desk drawer. I, fresh from the airlines, and naive as hell, didn't know the difference. The bar waitresses spun in and out of the cocktail lounge, upstairs with the local businessmen in shifts, back onto the floor after a half hour, the cash drawers loaded with checks. Checks! ! Who the heck pays for drinks with checks, large ones. The owner of the hotel, a franchise operation, frequently drunk out of his mind, owned a hotel in Miami, got bombed one night, was found the next morning by a maid, naked, dead, and robbed. Two hookers were arrested a day later.
    This was my first exposure to hotels. Later, in another famous chain, at an airport, I was treated to the "merry bank of 5" local hoods who sat in the bar, flocked with fur. Think a sophisticated Badda-bing. Better English, no Tupperware breastages. As the Director of Sales, one of da' boys asked me to prepare a Suite for a Mr. Capone, arriving that night.
    I quit, moved across the street to a competitors hotel and was threatened by da boys. I went to the DA's office who threatened them, I was there, and was warned to forget ever working there. Happily I complied. I moved to Arizona to protect my wife and children, now grown and gone.
   Since then, I have worked in hotels for Indian owners, drunks, warped and weird megalomaniacs, one Nazi, a five foot high crippled sociopath and several top level management types that would make Hitler seem a gentler sort.
   I have learned that women managers are a different sort, more suspicious, far less trusting than male superiors, far quicker with the blade. In the hotel business, it is all an ego driven business, a modern day serfdom. In my capacity as a medium to top level marketing and sales manager I had made millions for the owners and operators of hotels and resorts for every type of hostelry I could think of - yet, very little for me. Each had a way of carving my class out of the pie.
   One General Manager said, " they don't want to pay sales people that kind of money." Amazing, eh? As an after thought, I regret it all, the hotel business. Statistically, it is the highest employer for non-skilled labor, and as the therapist community has reported, for low-self esteemers. What a waste of time.
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Monday, February 6, 2012

Hotel Careers Today - Buy Boardwalk or Park Place??

So, you want to be a General Manager? Or maybe a "Director of Marketing and/or Sales? Chief Chef, Kitchen Manager or Rooms Manager? Make it your career...for a lifetime?
    Move to Switzerland where you start at the bottom, young and eager, and work your way to the top, white table linens and all, check in guests, carry bags, hand out keys, call on convention clients, sign contracts, manage staff.
    Do it all. Then, at 40, you're in.
    Not here in America, that has now gone by the way of high button shoes. In Tucson, the fanciful Marriott nestled into the Tucson Mountains, thrown up in 2005, indebted to $145 million, crashed a year later in the boom/bust, has now gone up for auction. The big deal money guys can't float any more credit and on the auction block steps March 2, it goes to the highest bidder. I'll be there.
   It looks like Versailles. No kiddin.
   The staff? Oh, I imagine they're well paid and the new owners will say, " no need to panic, we can use you, please stay."
   And the staff, if they are smart, will warm up their resumes, put them on the market and get the hell out as soon as possible. NOT THEIR FAULT. It is the nature of the biz today in the good ole US of A. Staff is fungible, expendable and turned around like laundry cart loads. That's why the quality of new-hires ain't so good any more....they probably won't be around career-wise if you catch my drift.
   There are two other high-powered high-dollar, world-class resorts in the mountains high over the Tucson, Arizona landscape headed in the same direction. And the fate of the staffs all down hilled for the same rock pile as the Quality Inns and Holiday Inns of the past.
   They are just jobs now, Check out the resumes of these folks: no more 5 years, or 8 or 10 years of rich, full experience at any one employer. You will be lucky to find three (3) full years of length at any one hotel or resort for anyone before some hotel "investor" buys or sells their job out of existence to someone who can find a cheaper replacement.
   Welcome to the 21`st century of the Hospitality Industry.
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Wednesday, February 1, 2012

Hotels, Resorts, in the modern day - 2012 Regrets to all

It is said that the Swiss are the world's Innkeepers. Probably, they still are, because the Americans now are just investors, keepers of the assets, passers on of the properties, cash-in, cash-out, profits in the till, employees to the street.
    Once-upon-a-time in a time now gone, hospitality was an industry where the soup ladle was taken seriously in the back-of-the-house (kitchen), and the front desk was operated with the skill of a war-room. "Service" was a trained art and skill at the higher and lower end of hotels and resorts around the country.
    No more.
    "Investors" now buy 'assets' with beds and restaurants that hopefully gain value in their market place. Old adages fly high here, buy-low, sell high, and if you can't raise the bridge you lower the water. A.K.A - fire the highest paying layer of staff: i.e. gentlemen, warm up your resumes.
    I once worked at a Denver hostel where within one year the same hotel was bought and sold four times within twelve months and the color of my paycheck changed four times. I got an ulcer waiting to get canned and never was. Finally, after threats from the management, I hired an attorney, found a better job in the Pacific Northwest and left quietly.
    Funny, how the heat cools off when you mention, LAWYER. My wife had died in a hospital up the street, I fell to pieces, so did my work, and my employer started backing me out the door. Lawyers in concert with my doctors banded together and protected me until I could recover and get a better job elsewhere.
    The 'investors' finally sold that dump to somebody else with the increased value  received while I was there. Investors made millions, I left penniless, due mostly to cancer bills from the local hospital, mind you.
    The owner of that hotel had also built a sleep-cheap property in the Seattle Tacoma area and hadn't even opened it yet when someone made him an offer "he couldn't refuse" at twice his construction cost, so he sold it. Staff hired and trained, the new owner blasted them right out the door, hired his relatives, and that, as they say - was that.
    Another resort I can think of in Chekotah, Oklahoma was built by the state and later bought by a couple from Arkansas. The husband lost it to the wife in a divorce settlement and she "decorated" it - every one of the 250 rooms. Due to a lack of money, they opened the doors to the locals who trashed the rooms at $29 a night, smoked up the property and cooked pigs in outdoor cookers and balconies. Okies.
   A management company was hired to forestall bankruptcy, minimal funds were raised for a cosmetic overhaul. The General Manager quipped he could spend a half million and the public would "never see it." The owner, I'll call her "Daisy Mae" flew in from shit-creek Arkansas and demanded high priced food for a re-grand opening, something we couldn't afford to do. We lost money.
   The biggest event in downtown "Chekotah," in the past five years was the opening of a Walmart where the citizenry showed up in Tuxes.
    Last I heard, she still owns it and the new General Manager was found inebriated on the lobby couch at nine in the morning. Such is the "Hospitality" industry in central Oklahoma these days. One of their sales people was arrested in the middle of the night, naked in the lobby. Details were sketchy as to how he got there.
    Industry reports that most of the high-priced world-class resorts in sunny Tucson, Arizona are either in receivership or are filing for bankruptcy. In the language of the investor class, things are NOT panning out at the bank. The ONLY downtown Tucson convention hotel of any consequence is so bad
it is being used as a pin-cushion by the daily morning newspaper. About 20% of it's available rooms are not even in working order, they reported.
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Friday, January 20, 2012

Hotel Sales, Marketing and Hotel General Manager - My Regrets

I was thinking - again - as I passed through a lobby of a Tucson hotel, would I ever go back?
    Probably not. probably never...maybe. I am of the age where my fingers would never go back to the fire, wobbling or not as Rudyard Kippling once quoted in Gods of the Copybook Headings once quoth.
    I've learned my lesson, the hotel biz is not a career for the long run in any sense something for your life's work. It is a job, albeit a fascinating one. Sometimes, others characters it akin to slave labor, full of booze, sex, intrigue, illegalities, civil lawsuits, hostile work environment...you get the idea and other unpleasantness, but nay thee less, NOT something compared to the business as it practiced in Switzerland, the world's BEST innkeepers. My advice: avoid all management companies, if you can.
   The one saving grace of the business here in America was that I got to rub elbows, meet, converse with, become pen-pals with very famous, and influential public figures.
   From Philadelphia, Tulsa, Tucson, Oregon, and other locations around America, while operating sales and management positions in various hotels and resorts for a number of employers I have met and become friends and/or acquaintances with: -
  John Wayne, Betty White, Gene Cernan (Astronaut), the last Astronaut on the Moon, French Movie Director Claude LeLouche, Nixon's Secretary Rosemary Woods, Dallas's JR Ewing - Larry Hagman, VP Al Gore, Pres Clinton, VP Hubert Humphrey, Charleton Heston, Col Oliver North, George Gordon Liddy, William Kleindeinst, Alexander Haig, Baseball legend Johnny Mize, Pope John Paul (on Colfax Avenue in Denver), and various other movie actors too numerous to name who have drifted into the mists at this hour.
   The question dogs me: has this improved my character, because the career did not, either my character or my financial status. Hotels generally will not provide stability for job growth or finances. My advice is to avoid management companies only in dire circumstances - eating being one of them. They are a good source of employment only if you have the heart of an alligator. Otherwise I suggest you will not be successful.
   Consider the source, please.
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