29 January 2010

Name change is last resort for struggling hotels

NEW YORK - The latest U.S. fashion in recessionary times is name changing, particularly when youââ¬â¢re trying to sell luxury hotel services with descriptions such as ââ¬Åâœresortââ¬~ that have become stigmatised after lavish taxpayer-paid retreats. ââ¬~¨

Examples:ââ¬~¨

ââ¬~¢ The Ballantyne Resort in Charlotte, N.C., changed its name during the summer to the Ballantyne Hotel & Lodge after several corporate clients indicated it would have a better chance of landing their business if it weren't called a resort. ââ¬~¨

ââ¬~¢ Same story for the Westin Stonebriar near Dallas, formerly the Westin Stonebriar Hotel & Resort. ââ¬~¨

ââ¬~¢ And ditto the Renaissance Orlando at Sea World, no longer the Renaissance Orlando Resort at Sea World.ââ¬~¨

ââ¬ÅâœOther than the name-dropping, little else has changed,ââ¬~ says the Wall Street Journal.ââ¬~¨

The same golf-and-spa style amenities are still there.ââ¬~¨

That such trivial compromises are needed to salvage business is a sign of the times for struggling luxury hotels and resorts -- some of which are finding that the name changes are actually improving business.ââ¬~¨

ââ¬ÅâœThe resort stigma was stoked by widespread outcry late in 2008 about a $400,000 sales retreat that American International Group Inc. (AIG) planned to host at the St. Regis Monarch Beach Resort in Dana Point, California,ââ¬~ said the newspaper. ââ¬~¨

AIG, the recipient of US$180 billion in taxpayer assistance, cancelled the event after bitter criticism.ââ¬~¨

The 400-room St. Regis did not recover from the bad publicity and was foreclosed upon by one of its lenders, Citigroup Inc.ââ¬~¨

Hoteliers call the resulting fallout the AIG effect. ââ¬~¨

Politicians railed against companiesââ¬'especially those that received federal aidââ¬'meeting at resorts in live-it-up locales like Las Vegas. In turn, companies and government agencies revised travel policies to discourage, if not prohibit, resort stays. ââ¬~¨

Companies "are just being very conscious of the location selected, because everybody's so paranoid about perception," said Jennie Jacobson, president of event-planning company Unique Events Inc.

The result has been a spate of meeting cancellations.ââ¬~¨

Some hotel chains such as Marriott International Inc. have reported that revenue from group meetings declined by more than 20 percent in last year's third quarter from a year earlier. ââ¬~¨

But thatââ¬â¢s not true for everyone.ââ¬~¨

Dale McDaniel, general manager of the 493-room Loews Lake Las Vegas, says a name change has improved his property's bottom line after the word ââ¬Åâœresortââ¬~ was removed.

"There could be as much as a 10 percent swing in business," McDaniel said. "All it takes is a couple of large pharmaceutical groups to book here because we don't have resort in our name."ââ¬~¨

By David Wilkeningââ¬~¨

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