GlobeSt.com DISPATCH: Hospitality Issues Take Center Stage

PHOENIX-Labor concerns, the rising cost of oil and the drive to increase profits were just some of the topics addressed during this morning's opening session at Lodging Conference 2004 at the Arizona Biltmore.

The attempt by labor organizers to make union agreements co-terminus in a number of major markets, such as Washington, DC, San Francisco, Chicago and Los Angeles has the potential to "create a national strike and greatly impact the major brands and REITs," said Mike Shannon, president and CEO of KSL Recreation Corp. "This is a major issue that we have to get bright about right now. Hilton and Marriott need to understand the long-term cost implications of this."

As for increasing profits, Shannon stated his firm was looking at alternative revenue streams such as spa and golf revenues rather than slimming labor costs, which were "already squeezed as far as they can. You have to get more creative about driving revenues."

Tom Parrington, president and CEO of Lodgian Inc., noted it will take at least a year to 15 months for the Florida and Caribbean markets to recover from the recent devastating hurricane season, in terms of both repairing the damage as well as traveler perceptions. "We have had four properties closed from damage and are getting calls from vultures," he added. "Owners like myself should just hold on and fix their properties because in two years, Florida will be stronger than ever."

In dealing with the rising price of oil, Trudy Rautio, president of Carlson Hotels Americas, said her firm was taking a closer look at its energy management programs. "It is difficult to raise rates" and apply energy surcharges, she noted.

According to organizers, the conference has reached sell-out proportions, with more than 900 industry professionals turning out for the three-day event. The 10th annual conference will feature more than 160 speakers in 53 sessions.