Focus Areas 2012/13/14

A meeting of the ASFONA Board of Directors was held at the Sheraton Tarrytown on November 7th 2011. One Agenda item was to discuss and agree the 2012/13 "Areas of Focus" projects to be agreed with Starwood management at the Executive meeting later that day. The "Areas of Focus" Projects are as follows.

Board of Directors Meeting
Monday November 7th – 2011
The Sheraton Hotel – Tarrytown – New York
Agenda:

In Attendance:

John Shingler ( Chairman ) – Hung Luk – Paul Wischermann – Howard Zetley – Jay Mahan – Gerry Chase – Troy Pentecost – Greg Miller – John Belden – Mark Sharkey – Bob Morse – Federico Sanchez – Jim Dina

Agenda

To Present & Discuss Area of Focus Meetings Summary 2011 / 2012 / 2013:

Strategic Intent of ASFONA / Starwood Focus Areas:

1. To establish a dedicated process for ASFONA and Starwood 
   
2. To align, engage, and strengthen the ASFONA / Starwood relationship while sharing joint expertise, which will ultimately fuel success for all parties.”
   

FOCUS AREAS:

1/Franchise Operations & Starwood “Strategic Franchise Initiative” Project:

ASFONA Team Members:

John Shingler, Jay Mahan, Paul Wischermann, John Belden

Starwood Lead Executives:

Lynne Dougherty, Mary Hynes-Talhouk, John McGovern, Richard Veilleux
Todd Petty, SVP, Finance & Strategic Initiative, Andrew Bodziak, Stephen Joe, Charles Macon

North America “Strategic Franchise Project” Initiative:

GOAL: To be “Best in Class Franchise Organization” for the Mutual Benefit of Owners & Starwood

Establishment of: Owners Interests / Starwood Interests / Economic Profitability

Phase One: Diagnostic / Phase Two: Design Solution & Blueprint / Phase Three: Implementation

Owner Engagement & Active Feedback During Process

Franchise Operations:

Philosophy of Strategy of Franchised & Managed Hotels

Franchise Operations Team Goals – 2012/13

ASFONA Involvement in Pilots

Advance Communications: – ISAC / Sales Kick Off Messages / Managed vs Franchised

Starwood Regional Management:

• Support of the Franchise Community
• Specific Goals of Regional VP’s and their Teams
• Overall Measurement Criteria & Specific Goals – Rev Par / Starwood Fee Income

Focus For 2012:

• Owner Feedback Platforms – Owners & Brand Advisory Boards
• General Manager On-Boarding/Property Visit Templates
• Key Brand Standard Implementation – 2012/13

Six Sigma & Kaizen

• Continuous Improvement Methodologies
• Leaner More Efficient Hotel Operations

2/Brand Management:

ASFONA Team Members:

John Shingler, John Belden, Paul Wischermann

Starwood Lead Executives:

• Phil McAveety, Executive Vice President & Chief Brand Officer
• David Marr, SVP Brand Management - North America
• Brian McGuinness, SVP Specialty Select Brands

Agenda Items & Topics of Discussion:

Evaluation & Suitability of Brands:

• The supply of Information Required by Franchisees / Investors / Owners
• Total Return on Investment (NOI vs Investment Cost)
• Projected Long-Term Performance of Brands (Twenty Year License Agreements)
• Flexibility of Brand Availability vs Competitive Brands
• Current & Projected Guest Mix of Brands

Goal Setting / Measurement Criteria set By Starwood:

• The Specific Target Goals Set & Measured by Starwood Brand Management
• Establishment & Measurement of RevPar Targets by Brand
• Establishment Typical Hotel Profiles of Brands 
• Growth Goals Set by Brands in North America

Brand Standards:

• Global vs North America 
• The Establishment of Brand Standards 
• The Involvement of Franchisees & Owner Community
• Owner Advisory Boards

Communications:

• Reporting Parameters (Subjects / Frequency / Timing)
• Marketing Initiatives (Hotel Website Guest Comments Initiative)
• SPG – Initiatives & Changes to Program
• Brand Advisory Boards
• Owner Meetings

3/Sales & Marketing - Revenue Management:

ASFONA Team Members:

John Shingler, Gerry Chase, Bob Morse, Greg Miller, John Belden,
Jay Mahan, Paul Wischermann

Starwood Lead Executives:

Tim Roby, Christie Hicks, Anupam Agarwal, Leslie Anderson

Primary Focus: Integrated Sales & Catering Program - ISAC:

Data Ownership:

• At Origination of Booking
• At Hotels Exit from System

Data Sharing:

• With Starwood Sales Teams (Global / Divisional)
• Other Starwood Individual Hotels
• Fairness of Lead Distribution

Information Confidentiality:

• Management Companies 
• Competing Brands 

Projected Benefits of ISAC:

• By Market Segment
• Large Hotels in Primary Markets vs Small Hotels in Secondary / Tertiary Markets
• Benefits vs Costs Ratio Required for System / Division 

Cost of ISAC:

• Full Service Hotels vs Select Service
• Return on Investment Criteria and Cost Benefit Analysis per Hotel in North America

Sales Optimization – Cluster Sales:

Limited Buy-in from Franchise Community – Measurement of Results to Date

Revenue Management:

• Rate Plan Audits / Rate Categories
• TLP Optimization at Hotels
• On Line Travel Agent Strategy

4/Business Systems Results:

ASFONA Team Members:

John Shingler, Paul Wischermann, Troy Pentecost, John Belden

Starwood Lead Executives:

• John Peyton, SVP Operations – North America
• Jennifer Bauchner, Director Rooms Operations & Sustainability

Primary Focus Areas:

The Business Environment:

• Forecast / Trends
• Q 1 to 4 (Including Data Compiled for Conclusions)

Operating Profit:

• Criteria for NOI / GOP Goal Setting & Management
• By Brand / Hotel ( Target Margins / Productivity / Flow )
• By Department – Rooms / Food & Beverage

Benchmarking:

• Determination of: Hotel Goals / Performance achievement (Internal & External Criteria )
• Evaluation of: Hotel Goals “Internal Criteria’ by Brand / Hotel 
• Measurement of: Hotel Goals “External Criteria” - Competitive Set / Other Brands

Operating Expenses:

• Operating Expense Ratio / Ranges Expectations (Brand / Hotel / Segment)
• Cost Savings Initiatives (Brand / Hotel / Company)

Competitive Advantages:

• Performance attributes vs Competition
• Utilization of Property ( Brand / Company Tools & Resources )

Sustainability:

• 30/20 Initiative
• The Energy & Water Assessment Third Party Property Audit
• Property Specific Environmental Action Plan
• Sustainable Meetings Program

5/Information Technology:

ASFONA Team Members:

John Shingler, Troy Pentecost, Hung Luk // John Belden – Galaxy LightSpeed
ASFONA Board of Directors – Galaxy LightSpeed & IT Strategy / Information Security

Starwood Lead Executives:

• Todd Thompson, Executive Vice President & Chief Information Officer
• Dan Hogan, Vice President & General Manager – Galaxy Hotel Systems
• Mark McBeth, Vice President – Information Technology – North America

Primary Focus Areas:

• High Speed Internet & Cell Phone Coverage / Efficiency in Hotels:
• Guests Complaints – Cost / Service
• Competition Status & Projections (Free to Guest / Select Service vs Full Service / Platinum)
• Bandwidth Issues & Potential Solutions / Costs
• Wired vs WiFi in Hotels – Security Issues 
• Tiered Pricing Initiatives - Test Results
• Potential LRA Audit of Hotel Efficiency and Standard of Service

Galaxy LightSpeed:
Project Deliverables:
StarGuest & ISAC Integration
Rational & Dynamic Pricing Coding

Accelerated LightSpeed:
Guest History to Guest Profile