CHICAGO—The US hospitality industry has entered a period oftransition, and Steve Belmonte, the chiefexecutive officer of Vimana Franchise Systems, ledoff the wide-ranging opening session of theTHINConference, the hotel investment networkingconference, held yesterday and today at the ChicagoHilton, by asking some tough questions. He pointed out toa panel of industry leaders that “all across America, we have thesegiant full-service boxes,” and many are struggling. He asked themwhat advice they had for these operators.

These properties need new investments, said MurrayDow, the president and chief executive officer of theDow Hotel Co., but the key to making thoseinvestments productive is decentralized decision-making, so localswho understand their markets can direct the dollars. “I agree withMurray,” said Michael Conway, the president ofWinegardner & Hammons, Inc., the solutions are“local, local, local.”

“Corporate doesn't know the market,” added SamToia, president of the Illinois RestaurantAssociation, “but the franchisee knows.” Many areas haveseen grocery outlets such as Whole Foods set upshop, for example, and this influence can change eating habits, andthe expectations that customers have for the restaurants locatedwithin the hotels. “People are now cooking as a hobby; they did notdo that twenty years ago.”