advertisement

RAR Hospitality Recognized on Inc. 5000 List of America's Fastest-Growing Private Companies

RAR Hospitality - 17 August 2017
SAN DIEGO -- Today, Inc. Magazine unveiled its 36th annual Inc. 5000 list of the nation's fastest-growing private companies and San Diego-based hotel management firm, RAR Hospitality is pleased to announce its ranking of No. 2383. This is the first year RAR Hospitality has been featured on this exclusive list."The RAR team is honored to receive this recognition as we have relentlessly worked to make a difference in the hospitality industry," said Robert Rauch, founder, chief executive officer and president of RAR. "We have grown because of our partner commitment, employee dedication and comprehensive ability to adapt to the evolving industry."The 36th annual Inc. 5000 list represents a multitude of fast-growing, privately-owned companies and industries. To qualify for the list, Inc. examined each company's growth percentage and revenue, analyzing data from 2013 to 2016. RAR Hospitality achieved the No. 2383 spot because of the company's remarkable growth rate of 152 percent. Since the company's establishment in 1990, RAR has expanded its hotel portfolio of branded, independent and boutique properties in Southern California, Arizona and Colorado including The Lafayette Hotel, Swim Club & Bungalows, The Keating Hotel, Fairfield Inn & Suites San Diego North/San Marcos, Hilton Garden Inn San Diego/Del Mar, DoubleTree by Hilton Phoenix North and Arabella Hotel Sedona.The rarefied 2017 Inc. 5000 list can be accessed online at www.inc.com/inc5000 along with company profiles and results and the Inc. 500 list will be published in the September issue of Inc. Magazine.The company has been awarded with prestigious accolades such as San Diego Business Journal's fastest-growing private companies,LODGING Magazine's top 50 management companies and Hotel Business Magazine's top management companies. RAR Hospitality is located at 10840 Thornmint Road #110, San Diego. For more information, please visit www.RARHospitality.com or call (858) 239-1800.

JMBM's Global Hospitality Group Announces the Publication of an EB-5 Handbook for Developers

JMBM - 17 August 2017
LOS ANGELES -- JMBM's Global Hospitality Group(r) and EB-5 Finance Grouptm are pleased to announce the publication of The Developer's EB-5 Handbook for EB-5 Construction Financing, a "must-read" resource for developers who are considering using EB-5 financing to complete or enhance their capital stack for construction projects. This is the much talked-about and often (inappropriately) maligned EB-5 program, also known as the immigrant investment visa program.While there are many pending developments that could affect the EB-5 program, this is still a good time to learn how the program works and why so many developers have used EB-5 financing as part of the capital stack for their new projects. The Global Hospitality Group has developed an approach to guide clients through the EB-5 process with a minimal amount of financial risk to find and evaluate the reliable players and execute financing with a high degree of confidence.The Developer's EB-5 Handbook is written to help developers assess the potential opportunities for EB-5 financing while avoiding potential traps for the unwary. Written by legal and business advisors to top developers with great projects in the United States, the Handbook includes articles addressing the following topics:What is EB-5 all about? What are its essentials?Is EB-5 still viable for developers with everything going on today?How can you evaluate an EB-5 construction financing opportunity for your project?What is the optimum EB-5 construction financing structure for development projects?What drives the size and terms of EB-5 financing in the capital stack?How much? How cheap? How certain? How long?How can you spot key "show stoppers" before you get too involved?What are the most common mistakes developers make with EB-5 financing?Who do I need on my EB-5 financing team?To download a free copy of The Developer's EB-5 Handbook, go to the Resource Center on HotelLawyer.com.If you would like to discuss any of the issues presented in the Handbook, please contact us:

HFTP Announces 2017 CHAE of the Year Recipient Guus Martinus Heijmans, CHAE

HFTP - 17 August 2017
Hospitality Financial and Technology Professionals (HFTP(r)) will honor Guus Martinus Heijmans, CHAE as the 2017 Certified Hospitality Accountant Executive (CHAE(r)) of the Year at its upcoming Annual Convention this October. The CHAE of the Year award honors the individual that scored the highest on the CHAE certification exam within a given year. HFTP's Annual Convention will be held from October 25-27, 2017 at the Omni Orlando Resort at Championsgate in Championsgate, Florida USA.Heijmans' accounting journey began from an F&B internship that he had under a J1 visa program that brought him to the United States in 2008. This was the year he received firsthand experience working within hotel management at the Marriott Renaissance Hotel in Baltimore, Maryland USA, and realized his passion was in hotel accounting. After returning to The Netherlands, Heijmans decided to continue his education at Stenden University in Leeuwarden where he earned his bachelors in International Hospitality Management and Business Administration in 2012. Alongside his studies, he had the opportunity to do a cluster traineeship in internal auditing for the Renaissance Amsterdam Hotel and the Amsterdam Marriott Hotel.With a bachelor's degree and certificate in hospitality real estate, Heijmans took his first job out of college as a hotel night auditor at the Grand Hotel 'Huis ter Duin' in The Netherlands. In 2013, he became an assistant hotel controller before moving back to the United States in 2014. After moving to Long Beach, California USA, Heijmans received a job offer from The DoubleTree by Hilton Los Angeles-Commerce. Currently, Heijmans is an accounting/HR manager at Residence Inn by Marriott Los Angeles LAX/Century Boulevard."Receiving my CHAE designation and being nominated as 'HFTP's 2017 CHAE of the Year' has been one of my proudest and most rewarding accomplishments," said Heijmans. "The designation has already helped me so much in my day-to-day tasks and responsibilities as an accounting and HR manager for the Residence Inn LAX/ West Century Boulevard Hotel. I am thankful to those who offered moral support while I prepared to take my CHAE exam, and am thankful to HFTP for the opportunity to take the next step in my career and demonstrate my skills as a finance expert."The CHAE professional designation is an industry designation showing competency in the area of accounting, and is acknowledged throughout the hospitality industry as it elevates the professionalism of both the recipient and the industry. More than 1,500 hospitality accountants, from several countries, have earned the CHAE designation through HFTP since the certification program began in 1981. A new CHAE exam is now available, and features a more global finance focus. HFTP also administers the examination and awards the Certified Hospitality Technology Professional (CHTP(r)).For more information on HFTP's certification programs (CHTP and CHAE), please contact HFTP Certification Manager Robin Bogdon at Robin.Bogdon@hftp.org. For immediate information, visit the FAQ pages for both CHTP and CHAE certifications.HFTP will produce its inaugural HITEC Dubai counterpart event, in partnership with Naseba, from November 14-15 - serving as the third, and final, HITEC of the year. In 2018, HFTP will bring back HITEC Amsterdam on April 11-14 in addition to the larger HITEC Houston on June 18-21. For more information about HITEC and HFTP's other global activities, contact the HFTP Meetings & Special Events Department ateducation@hftp.org or visit www.hftp.org and www.hftp.org/hitec/.For the latest news, follow HFTP/HITEC on HITEC Bytes, PineappleSearch, Facebook, LinkedIn, Twitter (@HFTP), Instagram (HFTP_HITEC), Flickr and YouTube. For more information about HITEC Amsterdam, contact the HFTP Meetings & Special Events Department at education@hftp.org, +1 (512) 249-5333.About HFTP Hospitality Financial and Technology Professionals (HFTP(r)) established in 1952, is an international, nonprofit association, headquartered in Austin, Texas, USA, with offices in Hong Kong, United Kingdom and the Netherlands. HFTP is recognized as the spokes group for the finance and technology segments of the hospitality industry with members and stakeholders spanning across the globe. HFTP uniquely understands the industry's pressing issues and assists its stakeholders in finding solutions to their challenges more efficiently than any organization. It does this via its expert networks, research, certification programs, information resources and conferences/events such as HITEC. HFTP also owns the world's only hospitality-specific search engine, PineappleSearch.com. For more information about HFTP, email membership@hftp.org or download the HFTP/HITEC media kit via the HFTP website. Read industry updates on the suite of HFTP hospitality news sites: HITEC Bytes, Club Bytes, Finance Bytes and HFTP News.
commercial

AHLEI Publishes New Edition of Hotel and Restaurant Accounting Textbook, Workbook

Educational Institute - 17 August 2017
The American Hotel & Lodging Educational Institute (AHLEI) has published a new edition of Hotel and Restaurant Accounting, by Raymond Cote, CPA, CCP. This introductory hospitality accounting textbook accentuates the relationship between business principles and accounting in hotel and restaurant operations. Students will learn accounting information that can be applied in hotel and restaurant environments.The eighth edition of Hotel and Restaurant Accounting has been significantly revised, incorporating several chapters and two case studies previously included in the author's Accounting for Hospitality Managers textbook and eliminating or combining several other chapters. Every chapter has been enhanced with key terms, definitions, review questions, and practice problems.Hotel and Restaurant Accounting is also a required textbook in several of AHLEI's multiple-course curricula for schools and Distance Learning students, including the 12-course Hospitality Management Diploma, eight-course Hospitality Operations Certificate, six-course Hospitality Fundamentals Program, and five-course Accounting and Financial Area of Specialization.For schools using the textbook, AHLEI also offers a Hotel and Restaurant Accounting Student Workbook. Chapter-by-chapter activities give students additional practice with a variety of hotel and restaurant accounting procedures and transactions. Problems include multiple-choice, true/false, definitions, and computations. Answers are provided in the instructor solutions manual, which is available free with purchase of 10 or more workbooks, by contacting Academic Sales at 1.800.344.4381 or +1.407.999.8100 or sales@ahlei.org.
commercial

We've been selected as one of Inc. 5000's Fastest-Growing Companies of 2017!

ICE portal - 16 August 2017
Inc. 5000’s annual Fastest-Growing Private Companies list was released this morning with ICE Portal coming in at spot 1649! We could not be happier to be recognized for our hard work and continued innovation in travel technology.
commercial

Why Banks Are Paying So Little Interest

CFO Magazine - 16 August 2017
From December 2015 through June 2017, the Federal Reserve raised the short-term benchmark interest rate four times, each time in an increment of 25 basis points. But according to national average deposit rates published by the Federal Deposit Insurance Corp., the interest rates banks are paying depositors have barely budged.
commercial

Is Tesla Really a Disruptor? (And Why the Answer Matters)

harvardbusiness.org - 16 August 2017
Tesla, Elon Musk’s automotive start-up, is having a very good year. In September, the company expects to begin shipping its all-electric Model 3 to non-employee customers, who have already logged 500,000 pre-orders. After reporting earnings earlier this month, its stock jumped, rocketing the 14-year-old startup’s valuation to over $53 billion, ahead of every other U.S. car manufacturer and all but three worldwide. This despite the fact that the company lost nearly two billion dollars in the past two years alone.

HOSPA announces exciting Autumn 2017 line-up of seminars and discussions

HOSPA - 16 August 2017
HOSPA - the Association providing unparalleled support for hospitality's Finance, Revenue Management, Marketing and IT professionals with career development, networking and up-dating on industry trends and developments - is delighted to announce its highly topical autumn line-up of discussions and seminars, open not just to HOSPA members but the hospitality industry as a whole.The HOSPA autumn programme for September 2017:Thursday 21 September: Bridging the gap between traditional and technologyVenue: The Rubens at the Palace, 39 Buckingham Palace Road, London SW1W 0PSTime: 6pmCost: PS10 for non-HOSPA members; free for HOSPA membersBookings: E: hospa@hospa.orgT: 0203 418 8196How Red Carnation's Rubens at the Palace and Hotel 41, both in London's Buckingham Palace Road, have themselves met the challenge of blending traditional service with the cutting-edge technology demanded by today's guests.Thursday 28 SeptemberStaff and Skills Issues in the Tourism and Hospitality SectorSeminar hosted by Mazars and run in conjunction with the Institute of Chartered Accountants in England and Wales (ICAEW) Tourism and Hospitality Group, and the British Hospitality Association (BHA).Venue: MazarsTower Bridge House, St. Katherine's Way, London E1W 1DDTime: 5.30pm for 6pmCost: PS10 for non-HOSPA members; free for HOSPA membersBookings: E: hospa@hospa.orgT: 0203 418 8196Speakers include: Jon Claypole, Partner, Tax Investigations and Employer Solutions, Mazars; Richard Karmel, Partner, Business and human Rights, Mazars, John Guthrie, Employment Policy Adviser, British Hospitality Association, Moderator: Gareth Jones, Partner - Head of Entrepreneurial Services and Head of Hospitality and Leisure, Mazars. Topics will include the sensitive service charge/tronc issue; the National Minimum Wage; staff uniforms; employee accommodation; and the impact of the Modern Slavery Act.The HOSPA autumn programme for October 2017:Thursday 5 OctoberFor hoteliers ONLY: HOSPA and Atos 1st Annual Roundtable Event: 'Transforming Hospitality, embracing Digital'Venue: Atos Business Technology and Innovation Centre, 4 Triton Square, Regent's Place, London NW1 3HGTime: 3.30pm to 7pmCost: Free for non-HOSPA members and HOSPA membersBookings: Limited spaces available.Speakers include: Juan Antonio Gomez Garcia, Research Analyst BDO UK Leisure and Hospitality. Focusing on how embracing digital can transform hospitality. An opportunity for hospitality leaders to meet and discuss latest trends impacting the sector, in a strictly no sales environment; and learn from keynote speakers. Delegates will have direct input into the inaugural 'Directive on Digital Transformation: Hospitality' report.Wednesday 18 OctoberHotel Asset Managers - Minimising the PainHow can the relationship between owner and manager - and the value of the hotel - be optimised?Venue: Sofitel St James's Hotel, Waterloo Place, London SW1Time: 6pm for 6.30pmCost: PS10 for non-HOSPA members; free for HOSPA membersBookings: E: hospa@hospa.orgT: 0203 418 8196Speakers include: Katie Benson, Vice President Operations, Jumeirah Hotels & Resorts, Cody Bradshaw, Senior Vice President and Head of European Hotels, Starwood Capital, Frank Croston, Partner, Hamilton Hotel Partners, Richard Nottage, Owner, Sofitel St James's and Sofitel Grand, Amsterdam, Hugh Taylor OBE, Chief Executive, Michels & Taylor, Moderator: Russell Kett, Chairman, HVS London OfficeHotel operators expect their operators to increase their hotels' revenues, profits and values. Increasingly they are turning to professional hotel asset managers to help ensure this is achieved. So, what are the advantages - and limitations - of bringing in an asset manager? What are the various options - in-house or outsourced? Shouldn't an experienced hotel operator be able to look after all the owner's interests without such 'interferences' or can each bring out the best in the other? How can it be a mutually rewarding, enlightening and productive relationship? These questions and more will be addressed by the expert panel.
commercial

8 Awesome Tips to Write a Strategic Plan

EDUCBA - 16 August 2017
A strategic plan is a systematic or a strategically oriented drive to give business or company its route towards is growth. Talk to any CEO about why a strategic planning is important, there would be no single answers: As there are limited resources it become imperative to have clear cut plan on why, how and in what quantity resources should be allocated to meet objective.
commercial

Orkin Reveals Financial Impact of Bed Bug Infestations in Hotels

National Association of Hotel & Lodging Engineers (NAHLE) - 15 August 2017
A new study from pest control leader Orkin finds that eight of 10 hotels have dealt with bed bugs in the past year, and 40 percent have treated for bed bugs in the past month. In addition to revealing that bed bugs are not a rare occurrence in hotels, the study also uncovered the average cost of bed bug remediation. Orkin partnered with The Bantam Group, a market research firm, to survey hoteliers nationwide to discover the impact of bed bugs on a hotel’s bottom line. According to the research report released today, Behind the Cost of Bed Bugs: Hospitality Industry Report, hotels spend on average $6,383 per bed bug incident. This cost includes the replacement of soft-goods, treatment and lost business. The report also shows that almost half of all hotels have been the subject of litigation because of bed bugs, which according to our research costs, on average, $17,177 per incident. All in, that could be as high as $23,560 for litigation and remediation costs – not a small concern for a single bed bug incident. The study also found that respondents on average treated for bed bugs 7.1 times every five years, making the cost of bed bugs as high as $167,276 assuming all incidents involve remediation and result in litigation.
commercial

U.S. Households Pile On the Debt

CFO Magazine - 15 August 2017
Are consumers’ balance sheets getting too stretched? Aggregate U.S. household debt in the second quarter reached a new high, hitting $12.84 trillion. That total is $164 billion above the previous peak, which was set in the third quarter of 2008.

Hotel executives share their hopes for tax reform

hotelnewsnow.com Featured Articles - 15 August 2017
With the limited progress of tax reform efforts, executives at U.S.-based hotel companies seem to have a mix of hope and frustration that tax reform will be enacted at the federal level to benefit their businesses and potentially spur more companies to spend on corporate travel. That was a recurring theme during second-quarter earnings calls. Here’s a quick collection of remarks from some executives on tax reform and the overall regulatory environment.
commercial

EB-5 Finance Lawyer: The Developer's EB-5 Handbook is now published

Hotel Law Blog | By Jim Butler - 15 August 2017
JMBM’s Global Hospitality Group® and EB-5 Finance Group™ are pleased to announce the publication of The Developer’s EB-5 Handbook for EB-5 Construction Financing, a “must-read” resource for developers who are considering using EB-5 financing to complete or enhance their capital stack for construction projects . This is the much talked-about and often (inappropriately) maligned EB-5 program, also known as the immigrant investment visa program.
commercial

Ex-SEC Attorney Raps WSJ Report on Enforcement Activity

CFO Magazine - 15 August 2017
If the first half of the year was any indication, the Securities and Exchange Commission is on track to have another record year for enforcement activity in 2017. Looking at data compiled in our SEC Sanctions Database, which tracks a subset of enforcement actions that resulted in monetary sanctions exceeding $1 million, the agency shows no sign of easing its efforts to sanction bad actors.
commercial

How One Insurance Firm Learned to Create an Innovation Culture

harvardbusiness.org - 15 August 2017
More and more companies are realizing they must reinvent their cultures by infusing innovation into their DNA. Unlike startups that get to shape culture from scratch, established companies must transform existing norms, values, and assumptions in ways that inspire everyone to innovate — not just at the top of the organization, but at all levels.
commercial

People and culture, the one thing you can't copy, and here's how Sabine Hansen Peck intends that to be Amadeus' competitive advantage

Web In Travel (WIT) - 15 August 2017
Yeoh Siew Hoon catches up with the power woman who runs people and culture at Amadeus IT Group, Sabine Hansen Peck, and talks Asia, diversity, gamification, and even animals and flying. If she wasn’t yet convinced, her latest whirlwind trip through Asia Pacific, which covered Bangkok, Tokyo, three cities in China, Sydney and Singapore, has left Sabine Hansen Peck with no doubt in her mind that “the future is happening here”.

HFTP Hospitality DPO Task Force Holds First Meeting in Amsterdam, Moves Ahead on Building Resources

HFTP - 15 August 2017
Preparing for the new EU General Data Protection Regulations (GDPR), a framework legislated by all EU member states with a required compliance date of May 25, 2018, international nonprofit association Hospitality Financial and Technology Professionals (HFTP(r)) recruited a team of experts to develop Hospitality Data Protection Officer (HDPO) guidelines and supporting resources for the industry. In addition, the group is designing a certification program specific for HDPOs to demonstrate their competence with the specialized position. A key requirement of the GDPR is that companies who handle large stores of sensitive personal information must assign a DPO, and it is estimated that this could open approximately 28,000 positions across all industries.The HFTP HDPO Task Force held its first meeting last month from July 14-15, 2017 at the Sheraton Amsterdam Airport Hotel and Conference Center in Amsterdam, The Netherlands."I am very pleased with the outcome of our first meeting held in Amsterdam this summer," said Alvaro Hidalgo, managing partner at FIRSTLOGIC Consulting and HFTP HDPO Task Force co-chair. "We have identified areas in which specific solutions (registration challenges, integration of DPO, communication with IT providers and others) are being analyzed, and we are confident to bring those solutions to the industry this autumn."The HFTP HDPO Task Force consists of 23 members representing a three-dimensional cross section of the hospitality industry including: global, regional and local hotel operators; IT and service provider vendors (distribution, marketing, CRM, etc.); academics and counselors specialized in data protection regulations; members of large multinational groups as well as medium and small companies from the United Kingdom, France, Germany, United States, Switzerland, UAE, Belgium, Netherlands and Spain.The HFTP HDPO Task Force committee consists of the following hospitality industry leaders:Nigel Allport, vice president of EMEA at Digital Alchemy, United KingdomKen Bailey, managing director of public sector at Fortalice Solutions, USASjoerd Blum, CIO at Amsterdam Airport Schiphol, The NetherlandsStephen Carter, OBE, general manager at Old Course Hotel, Golf Resort & Spa, United KingdomDennis Collet, CEO at NextRound Ltd, United KingdomLuis del Olmo Pinero, president and chairman at Idiso, SpainRichard Harrington, director of finance of luxury at Splendid Hospitality, United KingdomLucinda Hart, CAE, MBA, COO at HFTP, USA Alvaro Hidalgo, managing partner at FIRSTLOGIC Consulting, SpainDaniel Johnson, COO at Venza, USATimo Kettern, director of IT at Lapithus Hotel Management GmbH, GermanyDennis-Kenji Kipker, research managing director at Universitat Bremen, GermanyJose Medio, Attorney, CIPP/us, CIPP/E, managing director at Privalis Group, USAIan Millar, CHTP, professor of IT at Ecole Hoteliere De Lausanne, SwitzerlandBenny Nur, technical services director at Interstate Europe Hotels & Resorts, United KingdomTar O'Neill, CFO for Jamie Oliver Group, United KingdomSophie Pommois, project director of global distribution at Global Hotel Alliance, SwitzerlandStephanie Timsit, director of finance at Mandarin Oriental Hyde Park, United KingdomRajesh Vohra, director at Sarova Hotels Ltd., United KingdomCarl Weldon, FIH FHOSPA, COO Europe at HFTP, United KingdomFrank Wolfe, CEO at HFTP, USAJames Wright, vice president of IT field services EMEA at Hilton Worldwide, UAEOguz Can Yildirim, CHT, associate director of information risk management EAME at Starwood Hotels and Resorts, Belgium"By its nature, the hospitality industry manages a vast amount of personal data. The GDPR will set a new standard for data processing/management that will impact both the finance and technology sectors, and any company that offers goods or services to EU residents," said Wolfe. "Unlike previous frameworks, GDPR includes companies outside the EU who either have customers that are EU citizens or who monitor the online identifiers of EU data subjects. HFTP has deemed it critical to develop resources to alleviate the hospitality technology operational changes ahead."HFTP will host a HDPO education session at its upcoming Annual Convention on October 25-27, 2017. Wrapping up 2017, HFTP will produce its inaugural HITEC Dubai counterpart event, in partnership with Naseba, from November 14-15 - serving as the third, and final, HITEC of the year. In 2018, HFTP will bring back HITEC Amsterdam on April 11-13 in addition to the larger HITEC Houston on June 18-21. For more information about HITEC and HFTP's other global activities, contact the HFTP Meetings & Special Events Department ateducation@hftp.org or visit www.hftp.org and www.hftp.org/hitec/.For the latest news, follow HFTP/HITEC on HITEC Bytes, PineappleSearch, Facebook, LinkedIn, Twitter (@HFTP), Instagram (HFTP_HITEC), Flickr and YouTube. For more information about HITEC Amsterdam, contact the HFTP Meetings & Special Events Department at education@hftp.org, +1 (512) 249-5333.About HFTP Hospitality Financial and Technology Professionals (HFTP(r)) established in 1952, is an international, nonprofit association, headquartered in Austin, Texas, USA, with offices in Hong Kong, United Kingdom and the Netherlands. HFTP is recognized as the spokes group for the finance and technology segments of the hospitality industry with members and stakeholders spanning across the globe. HFTP uniquely understands the industry's pressing issues and assists its stakeholders in finding solutions to their challenges more efficiently than any organization. It does this via its expert networks, research, certification programs, information resources and conferences/events such as HITEC. HFTP also owns the world's only hospitality-specific search engine, PineappleSearch.com. For more information about HFTP, email membership@hftp.org or download the HFTP/HITEC media kit via the HFTP website. Read industry updates on the suite of HFTP hospitality news sites: HITEC Bytes, Club Bytes, Finance Bytes and HFTP News.
Article by Robert Mandelbaum

The Components of Payroll

CBRE Hotels - 15 August 2017
Based on the results of CBRE Hotels' Americas Research's 2017 edition of Trends(r) in the Hotel Industry, hotel management was able to contain the growth of labor costs in 2016. On average, the combined cost of the salaries, wages, other compensation and benefits paid to both employees and contracted/leased personnel at the hotels in the Trends(r) sample increased by just 2.8 percent during the year. Given in the 3.6 percent rise in compensation, the 2.8 percent growth in total labor costs implies that hotel managers implemented cost saving measures such as reducing the total hours worked at their properties, or improving employee productivity.Despite their best efforts, labor costs still accounted for 90 percent of the 1.6 percent rise in total operating expenses from 2015 to 2016. Further investigation reveals that it was the non-benefit component (payroll) that was the main driver of labor costs during the year. Payroll by itself accounted for 66.8 percent of the 1.6 percent total operating expense growth rate.The CBRE Trends(r) survey tracks five payroll sub-categories within each operating and undistributed department of a hotel. The sub-categories are consistent with the 11th edition of the Uniform System of Accounts for the Lodging Industry (USALI). They are:Salaries and Wages: Non-ManagementSalaries and Wage: ManagementService Charge DistributionContract, Leased, or Outsourced LaborBonuses and IncentivesA sixth sub-category is used to track other compensation data that is not identified, but this totals just 0.6 percent of payroll costs.Analyzing the salaries, wages, service charges, contact/leased labor and bonus payments made by U.S. hoteliers in 2016 provides some insight into how they were able to contain the increase in labor costs to just 2.8 percent. The following paragraphs summarize our analysis of the 2016 labor cost data from 4,028 properties in the Trends(r) sample that provided detailed labor cost information in conformity with the 11th edition of the USALI. For the purposes of this analysis, we are going to refer to the entirety of non-benefit compensation as "payroll."Payroll ComponentsThe salaries and wages paid to non-management personnel comprised 63.8 percent of payroll in 2016, followed by the salaries and wages paid to management (24.1%). The remaining 12.1 percent consisted of service charge distributions, payments to contract/leased labor, bonuses, and unassigned payroll.Non-management salaries and wages measured as a percent of payroll was greatest at limited-service hotels (69.5%), while management salary and wage payments were the most at extended-stay hotels (29.8%). Given the high incidence of mandatory gratuities, it is not surprising the service charge distributions made up the greatest percentage of payroll at convention (6.6%) and resort (6.2%) hotels. All-suite hotels allocated the greatest percent of their payroll dollars to contracted/leased employees (6.7%). Resort hotels, the property type that achieved the greatest gain in gross operating profits (GOP) in 2016, also spent the greatest percent of payroll on bonus payments (4.4%).From 2015 to 2016, the payroll component that saw the greatest percentage increase was service charge distributions (12.3%). In many jurisdictions, management has limited control of these mandatory payments that must be made to employees. The increase in payments made to contact/leased labor (5.4%) exceeded the growth in salaries and wages paid to management (3.0%) and non-management (2.8%). The slowdown in GOP growth most likely contributed to the 5.5% decline in bonus payments made in 2016, compared to 2015.Incidence of ComponentsThe use of contract/leased labor is frequently cited by operators as a tactic that can be implemented to overcome labor shortages, and potentially control the rising costs of compensation. In 2015, 42.7 percent of the properties in the study sample reported payments made to contract/leased employees in at least one of their departments. In 2016, this number increased to 45.2 percent. Resort hotels reported the highest incidence payments made to contract/leased employees (67.5%), while extended-stay hotels appear to use contract/leased employees the least (35.7%).Among the operating and undistributed departments, the greatest use of contract/leased employees in 2016 occurred in the food and beverage department (33.7% of hotels), followed by the rooms (33.3%) and administrative and general departments (17.5%). The greatest increase in the use of contract/leased employees was observed in the food and beverage and rooms departments. Conversely, it appears that the use of contract/leased labor declined in the other operated, information and telecommunications, and maintenance departments.Overall, the incidence of paying service charges grew from 17.7 percent of the sample in 2015 to 18.1 percent in 2016. Resort hotels are the property type most likely to pay a service charge to their employees (62.9%). As expected, the distribution of service charges was most frequently observed in the food and beverage department (39.7%), followed by the rooms department (4.6%).While the aggregate dollar amount of bonus payments made by the study sample declined by 5.5 percent from 2015 to 2016, the number of hotels that paid bonuses during the year increased. In 2015, the properties that paid bonuses comprised 89.2 percent of the total sample. In 2016, this metric increased to 89.7 percent.Employees in the sales and marketing (91.6% of hotels) and administrative and general (80.1%) departments were mostly likely to be paid a bonus. This is consistent with the typical compensation agreements for general managers, as well as sales personnel. Least likely to receive a bonus in 2016 were employees in the other operated and information and technology departments.It is interesting to note that the percent of hotels reporting bonus payments made to sales and marketing employees increased from 2015 to 2016, while the percent of hotels reporting bonus payments made to administrative and general personnel declined. In 2016, the number of hotels that enjoyed an increase in rooms revenue was greater than the number of properties the achieved a rise in GOP. Most sales and marketing incentives are based on revenue achievements, while general managers are more frequently rewarded for growth in profits.Payroll PressureGiven the political and economic landscape for the next few years, it appears there will be more pressure on the payroll component of labor costs versus the benefits piece. Accordingly, hoteliers need to pay attention to the increased labor reporting standards introduced in the 11th edition of the USALI. With greater transparency, owners and operators are better able to analyze the many components of labor costs, and act accordingly.1 Before deductions for management fees and non-operating income and expenses.
commercial

Wait for U.S. Inflation Pickup Drags On, Clouding Fed Outlook

National Real Estate Investor (NREI) - 14 August 2017
It’s becoming an endless wait for U.S. inflation to pick up. And the fifth straight miss on core-price forecasts adds to the burden on Federal Reserve policy makers to explain why they’re moving toward a December interest-rate increase. Consumer prices continued to be subdued in July, a Labor Department report showed Friday, pushing against the idea that unemployment at a 16-year low will help inflation accelerate. Declines in hotel rates, vehicle prices and child care accompanied a continuing drop in wireless-phone service costs that some Fed officials have labeled as transitory.
commercial

What Operational Excellence Really Means for Business Travel

skift.com - Transport - 14 August 2017
High-performing operations are necessary for any airline to build and retain the loyalty of corporate travel managers, travel agents and their travelers. In fact, according to a recent survey conducted by Travizon, one in three business travelers said arriving on time with their luggage was their highest priority when traveling for business.

UK government disarray adds to threat for labor

hotelnewsnow.com Featured Articles - 14 August 2017
Brexit again. And if you feel I go on about this too much (my side lost), it is because the whole situation worries me. I am, however, indebted to Italian State Article 5 of Law 91/1992, which states that “the spouse of an Italian citizen living outside of Italy can apply for Italian citizenship three years after the date of the marriage,” which for me came around last 27 December.
commercial

The Threat to Hotel Financing That Nobody is Talking About

Hotel Business Review by hotelexecutive.com - 14 August 2017
The hospitality capital markets have been liquid and strong since 2011. Rates have been low. Leverage has been reasonable but high. Underwriting has been practical and favorable. Lending has mirrored macro hotel operating performance, which has also been strong and improving since 2009.
commercial

Key Travel Ban Figure in Hawaii Lawsuit Finally Gets a Visa and Arrives in U.S.

skift.com - Destinations - 13 August 2017
The Syrian grandmother at the center of Hawaii’s lawsuit challenging President Donald Trump’s travel ban on people from six mostly Muslim countries arrived in Honolulu Saturday night. Ismail Elshikh, the imam of a Honolulu mosque, said his 52-year-old mother-in-law Wafa Yahia received approval from the U.S. government several weeks ago. She arrived at Honolulu’s Daniel K. Inouye International Airport Saturday evening on a flight from San Francisco in a 28-hour journey that started in Lebanon, he said.
commercial

Why We Prefer Dominant Leaders in Uncertain Times

harvardbusiness.org - 11 August 2017
We are witnessing a worldwide surge in a certain type of leader claiming the highest offices of power — leaders who are confident, controlling, and strongly hierarchical. Indian voters elected the dominant Narendra Modi into power in 2014, Britain’s Nigel Farage saw his sharply argued views endorsed during the 2016 Brexit campaign, Donald Trump was elected president of the U.S. in 2016 after repeatedly promising to be “strong,” and autocratic Turkish president Recep Tayyip Erdogan was reelected this year. The question is: Why are voters choosing this type of leader now? Our research (recently published in the Proceedings of the National Academy of Sciences) attempts to answer this by focusing on when and why such leaders ascend to leadership roles.
commercial

UNITE HERE Files Federal Labor Charges Against Anbang Insurance Group

Hotel Interactive - 11 August 2017
UNITE HERE this week filed federal unfair labor practice charges against Anbang Insurance Group and three of its hotel operators for failing to comply with its request for information on the firm’s ownership and sources of financing. The charges come as China-based Anbang reportedly may be under pressure to sell its overseas assets, which could include its hotel portfolio. In May, UNITE HERE affiliates in San Francisco, Los Angeles and Chicago submitted requests to Anbang and local hotel operators demanding information on Anbang’s ownership, as well as hotel management agreements and documents related to potential condominium conversions of the hotels. Anbang has not provided information responsive to the requests.
commercial

The Cloud: A Better Expense Model

CFO Magazine - 11 August 2017
Cloud computing is one of the biggest tech trends in a generation. It’s changing IT strategy for just about every business on just about every level, and it’s driving a huge shift in spending. The global cloud market is expected to grow to $390 billion by 2020, according to research by Bain, and one of its biggest areas of impact is how it presents a new landscape for chief financial officers to work within.

Newletter

Thank you for subscribing. Your email address has been added to our mailing list.
Close
To subscribe to the Club Bytes Newsletter please enter your email address below.
An error occured, please check your input and try again.
CancelSubscribe