Hospitality Trends
Sheraton Hotels & Resorts | October 11, 2023
Sheraton Fort Worth Downtown approaches completion of a remarkable $45 million transformation, marked as one of the largest hotel renovations in the Fort Worth area.
A dynamic five-member senior executive team, led by General Manager Damien O'Connor, is poised to steer the hotel's vision and elevate the guest experience.
The hotel, managed by Aimbridge Hospitality, is strategically located across from the Fort Worth Convention Center, near the picturesque Water Gardens, and in close proximity to numerous restaurants and entertainment venues in downtown Fort Worth.
The Sheraton Fort Worth Downtown is on the point of completing an extensive transformation, making it one of Fort Worth's most significant hospitality projects. A five-member senior executive team has been assembled to steer the hotel's vision and enhance the guest experience. This team is backed by Aimbridge Hospitality, a globally renowned hospitality management company recognized for its exceptional service. General Manager Damien O'Connor is leading the team, who joined the Sheraton Fort Worth Downtown in April 2022. Together, they bring over 80 years of collective experience to elevate the hotel's profile and provide exceptional hospitality in the Dallas-Fort Worth market.
The Sheraton Fort Worth Downtown, with 403 rooms, enjoys a prime location just across the street from the Fort Worth Convention Center, the scenic Water Gardens, and the new Texas A&M University Law School addition. It offers convenient access to numerous restaurants and entertainment venues, making it a hub in the heart of downtown Fort Worth. Additionally, the hotel is a short drive away from iconic attractions such as The Stockyards, Texas Christian University (TCU), and the Fort Worth Zoo.
The members of the senior executive team at the Sheraton Fort Worth Downtown include:
Courtney Towson, Director of Sales and Marketing, brings over 15 years of experience to her role, previously serving as Director of Sales and Marketing for The Sinclair Autograph Collection in Fort Worth. She spent over a decade with the Gaylord Texan before that.
Rosa Morakis, Director of Human Resources, has held similar roles at various hotel brands, including Marriott, Hilton, Hyatt, DoubleTree, and Radisson. With a diverse background and proficiency in multiple languages, including Portuguese, English, Spanish, and Greek, Morakis is well-equipped for her role.
Bill Richards, Director of Finance, boasts more than two decades of experience in hotel accounting and finance. He has been a valued member of Aimbridge Hospitality for several years.
Kara Anderson, Director of Food and Beverage, is an accomplished professional and the first certified tea master for Starbucks. With several years of experience at the Beverly Hills Marriott, she has returned to her hometown of Fort Worth.
The Sheraton Fort Worth Downtown's $45 million renovation will mark one of the largest hotel transformations in the Fort Worth region. It was started in the fall of 2022; the project is on track to be finalized by the end of the current year. The comprehensive renovation encompasses the hotel's exterior and interior, focusing on creating a more vibrant and spacious environment based on valuable input from guests.
The redesign includes a reimagined entrance, an increased number of suites, and the addition of practical work-space studios tailored for small meetings and versatile use. Adding to the enhanced guest experience is the debut of West+Stone, a signature restaurant bar offering a range of dining options from breakfast to late-night dinners.
The hotel's in-house dining option, &More by Sheraton, will provide an all-day menu and a diverse selection of beverages, catering to both in-hotel dining and takeaway. In addition, the construction has been carried out in stages, allowing the hotel, with its nearly 30,000 square feet of conference space, to maintain operations during most of the renovation process.
Read More
.jpg)
Travel Technology
PR Newswire | October 06, 2023
United Airlines today announced new technologies and policies to improve the travel experience for customers who use a wheelchair, including a new digital filter on united.com that helps determine which aircraft can accommodate different sized chairs, and refunding the fare difference if a higher-fare flight is needed to accommodate a specific wheelchair size. United expects to launch these new tools early next year.
"By offering customers an easy way to know if their personal wheelchair fits on a particular airplane, we can give them the peace of mind they deserve when they fly with us," said Linda Jojo, Executive Vice President and Chief Customer Officer for United. "Plus, collecting this information ahead of time ensures our team can handle these special items with proper care and attention."
New Flight Filter and Fare Reimbursement
The new flight filter on united.com will enable customers to enter the unique dimensions of their personal wheelchair as part of the flight search. The search results will then prioritize flight options on aircraft with cargo hold doors large enough to accommodate the wheelchair dimensions. The size of aircraft cargo hold doors varies, so some aircraft are better able than others to handle larger motorized wheelchairs, which must travel upright.
If a customer is unable to take a preferred flight because their wheelchair will not fit through the aircraft's cargo door – and takes a United flight with a higher-fare that can accommodate their wheelchair on the same day and between the same origin and destination – the customer may seek a refund of the fare difference. Customers seeking a refund of the fare difference will need to follow United's process, including completing a short form after they've traveled. United will promptly ensure they receive the difference in fare after review.
Airport Experience Improvement Program
Later this year United will begin a six-month pilot program at George Bush Houston Intercontinental Airport to explore ways to better accommodate customers in the unlikely event their wheelchair was damaged or delayed while traveling. The program will focus on the timeframe between a customer's arrival and when United returns the wheelchair or provides an appropriate loaner wheelchair if the original is damaged. United will collaborate with its Accessible Travel Advisory Board to explore several initiatives aimed at improving the airport experience during this challenging period, including providing specialized seating onsite and reimbursing the customer for transportation expenses should they choose to wait at a location other than the airport.
United entered an agreement earlier this month with the U.S. Department of Transportation to deliver these initiatives through a mutual commitment to increase accessibility and improve the travel experience for customers who require the use of a wheelchair. United carried about 150,000 wheelchairs in 2022.
United's other recent measures to improve accessibility include:
Providing ramp agents new mobile technology that indicates when a wheelchair is on a flight to ensure they are prepared to receive and load it. The technology also inhibits ramp agents from closing out a flight until they acknowledge that they've loaded all wheelchairs.
In August, United became the first U.S. airline to add Braille to aircraft interiors, helping millions of travelers with visual disabilities more easily navigate the cabin independently. United expects to outfit its entire mainline fleet with Braille by the end of 2026.
The United mobile app was recently redesigned to make it easier to use for people with visual disabilities with increased color contrast, more space between graphics and reordering how information is displayed and announced to better integrate with the screen reader technologies like VoiceOver and TalkBack.
United's latest Inflight Seatback Entertainment screens offer a wide range of accessible features such as closed captioning, text-to-speech controls, magnification, explore-by-touch capabilities, audio-described movies, and adjustable and high-contrast text and color correction. As part of United Next, the airline's historic growth plan, the carrier expects to take delivery of about 700 new narrow and widebody aircraft by the end of 2032, all of which will include the latest in seatback screen entertainment options.
Through Bridge, United's Business Resource Group for people of all abilities, employees help create a workplace environment where all can strive to achieve their maximum potential and support our commitment to being an ally for customers with disabilities.
For the eighth-straight year, United was recognized as a Best Place to Work for Disability Inclusion and earned a top score on the Disability Equality Index benchmarking tool, a joint initiative of the American Association of People with Disabilities and Disability:IN, to advance the inclusion of people with disabilities.
About United
At United, Good Leads The WaySM. With U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers and is now the largest airline in the world as measured by available seat miles. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL".
Read More
Hospitality Management
PR Newswire | October 18, 2023
Choice Hotels International, Inc. announced a proposal to acquire all the outstanding shares of Wyndham Hotels & Resorts, Inc. at a price of $90.00 per share, payable in a mix of cash and stock.
Under Choice's proposal, the $90.00 per share to be received by Wyndham shareholders would consist of $49.50 in cash and 0.324 shares of Choice common stock for each Wyndham share they own. Choice's proposal represents a 26% premium to Wyndham's 30-day volume-weighted average closing price ending on October 16, 2023, an 11% premium to Wyndham's 52-week high, and a 30% premium to Wyndham's latest closing price. In addition, Choice's proposal includes a cash or stock election mechanism, which would provide Wyndham shareholders with the ability to choose either cash, stock, or a combination of cash and stock consideration, subject to a customary proration mechanism. The proposal implies a total equity value for Wyndham of approximately $7.8 billion on a fully diluted basis. With the assumption of Wyndham's net debt, the proposed transaction is valued at approximately $9.8 billion.
Choice is making its latest proposal public following Wyndham's decision to disengage from further discussions with Choice, following nearly six months of dialogue.
Patrick Pacious, President and Chief Executive Officer of Choice Hotels, said, "We have long respected Wyndham's business and are confident that this combination would significantly accelerate both Choice's and Wyndham's long-term organic growth strategy for the benefit of all stakeholders. For franchisees, the transaction would bring Choice's proven franchisee success system to a broader set of owners, enabling them to benefit from Choice's world-class reservation platform and proprietary technology to drive cost savings and greater investment returns. Additionally, the value-driven leisure and business traveler would benefit from the combined company's rewards program, which would be on par with the top two global hotel rewards programs, enabling them to receive greater value and access to a broader selection of options across stay occasions and price points."
"A few weeks ago, Choice and Wyndham were in a negotiable range on price and consideration, and both parties have a shared recognition of the value opportunity this potential transaction represents. We were therefore surprised and disappointed that Wyndham decided to disengage. While we would have preferred to continue discussions with Wyndham in private, following their unwillingness to proceed, we feel there is too much value for both companies' franchisees, shareholders, associates, and guests to not continue pursuing this transaction. Importantly, we remain convinced of both the many benefits of the combination and our ability to complete it," concluded Pacious.
STAKEHOLDER BENEFITS
The proposed transaction is expected to provide important benefits for both companies' stakeholders – franchisees, shareholders, associates, and guests – that will be particularly significant in the current uncertain economic climate:
Franchisees Win with Lower Total Cost of Ownership and Increased Hotel Profitability.
Capitalizes on Choice's proven franchisee success system, dedicated to driving incremental topline reservation delivery to hotel owners' properties, while lowering the total cost of hotel operations.
Nearly doubles the resources available to spend on marketing and driving direct bookings to franchisees' hotels, lowering the cost of customer acquisition.
Establishes an even larger rewards member base on par with the top two global programs in hospitality.
Drives more business to franchisees through lower cost direct booking channels, lower customer acquisition commissions and fees, and lower hotel operating costs and technology-driven labor efficiencies, while continuing to determine their own commercial and pricing strategy.
Improves the value of franchisees' real estate assets by enhancing applicable cap rates and cash flows resulting from affiliation with the proforma company.
Reduces friction by offering guests a broad portfolio of brands across segments, no matter their stay occasions, within a single system.
Promotes increased investment and innovation in proprietary technology systems, processes, and training at the hotel and corporate level, which drives returns for Choice franchisees.
Creates an opportunity to replicate the tremendous success of Choice's recent acquisition of Radisson Hotel Group Americas. During the integration of the nearly 600 Radisson Americas hotels into the Choice platform, Radisson's franchisees have already meaningfully benefited from increased guest traffic to direct and digital channels, improvement in conversion rates, and access to more corporate accounts, among other benefits.
Shareholders Win with Superior Value Creation.
Represents a 26% premium to Wyndham's 30-day volume-weighted average closing price ending on October 16, 2023, an 11% premium to the 52-week high, and a 30% premium to the latest closing price.
Anticipates meaningful annual run-rate synergies, estimated at approximately $150 million, through the rationalization of operational redundancies, duplicate public company costs, and topline growth potential.
Enables Wyndham shareholders to benefit from Choice's historically 3x higher EBITDA multiple on a go-forward basis and receive deferred tax treatment on their stock consideration.
Creates additional capacity to further support Choice's revenue intense strategy, ultimately helping drive growth across its organic revenue levers.
Generates predictable high free cash flow through an asset-light, fee-for-service model, providing resiliency through all economic cycles and enabling additional investments for future growth.
Offers Wyndham two seats on the combined company's board and Wyndham shareholders the opportunity to participate in the significant upside potential of the combined company.
Cash/stock consideration mechanism enables Wyndham shareholders to choose between immediate upfront proceeds or long-term value creation, subject to a customary proration mechanism.
Guests Win with More Lodging Options and Value.
Creates a combined rewards program on par with the top two global programs in hospitality and will offer best-in-class program benefits through partnerships and compelling hotel redemption options.
Builds a global network of brands and hotels that meets the needs of the value-driven traveler across geographies, stay occasions and price points, supported by a seamless reservation system that provides guests with a more effective and efficient booking and shopping experience.
Improves data analytics, enabling the combined company to personalize communications and tailor recommendations to best meet the needs of the up to 160 million combined rewards program members.
Associates Win with Expanded Opportunities and Increased Stability.
Offers the ability to retain and attract "best-in-class" talent to one of the world's premier hotel companies focused on employee well-being, bringing together a wide range of experience and deep industry expertise.
Provides more opportunities for advancement and career growth as part of a larger, more diversified organization.
Combines two performance-driven cultures with a continued emphasis on associate development and growth.
RECENT ENGAGEMENT OVERTURES
Choice has been engaging with Wyndham for nearly six months.
In April 2023, Choice sent its initial letter to Wyndham regarding a potential transaction, proposing to acquire Wyndham for $80.00 per share, comprising 40% cash and 60% Choice stock. The proposal represented a 20% premium to the closing price of Wyndham common stock on April 27, 2023, and a 19% premium over Wyndham's 30-day volume-weighted average share price as of such date. Wyndham rejected the proposal and refused to engage in further discussions.
In the days and weeks thereafter, Choice continued to attempt engagement with Wyndham, increasing its proposal to $85.00 per share, comprising 55% cash and 45% Choice stock, explaining that further discussions could clarify Wyndham's hesitation to proceed with negotiations. The companies' respective Board Chairs and CEOs then met in person, and following that meeting, Choice improved its proposal yet again. Choice made its best and final offer which represented an increase of the per-share consideration to $90.00, comprising 55% cash and 45% Choice stock.
In September 2023, the Choice and Wyndham Board Chairs continued engagement, along with each of their respective financial and legal advisors. Wyndham acknowledged the strategic rationale of the proposal and that terms were within a negotiable range but raised questions regarding the value of Choice stock and timing for obtaining regulatory approvals. In response, Choice proposed to enter into a one-way, short-term non-disclosure agreement to facilitate Choice providing information that would address Wyndham's concerns (a draft of which was subsequently sent to Wyndham) and made its external counsel available for several discussions. However, during a follow-up call between the Chair of each company's Board and their respective advisors, Wyndham made clear their unwillingness to proceed with further discussions.
FINANCING, CONDITIONS AND APPROVALS
Closing of the contemplated transaction would be subject to satisfaction of customary closing conditions, including receipt of required shareholder and regulatory approvals. Choice would not make this offer if it were not confident that its franchisees and guests would embrace the proposed combination and that the transaction would receive applicable regulatory approvals in due course.
The cash portion of the purchase price is expected to be funded with a combination of cash on hand, as well as proceeds from the issuance of debt securities. Choice is highly confident in its ability to obtain fully committed financing based on indications from two separate bulge bracket global banks for the entire cash portion of our proposal. Strong free cash flows will allow for continued investments in the proforma business and rapid deleveraging of the balance sheet.
About Choice Hotels
Choice Hotels International, Inc. is one of the leading lodging franchisors in the world. Choice® has nearly 7,500 hotels, representing almost 630,000 rooms, in 46 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® loyalty program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks.
Read More