THREE DISTINCT CITIES IN ONE AND FIVE TOWNS. WHO SAID THIS WAS SIMPLE?
Understanding the hotel market in Toronto is an oxymoron because there really is no market that can truly be called Torontonian. Just in the same way as one could not truthfully answer the question, "what is the best hotel in Toronto", for there are several Torontos and over two dozen customer types that change segments with seasons and the clock.
Understanding the hotel geography of Toronto is in fact a science. One could almost say a 'Chainging Science'.
Analysing the intricate and evolving markets in the Greater Toronto Area involves the knowledge of the area as it has evolved over the last 40 years and how the neighbourhoods have shaped market sources and influenced market demands through the evolution of great little restaurants and fashionable boutique shops amongst other more mundane influencers, such as offices and industrial areas.
Observing the evolution of the brands as they rise, hover and sometimes fall is another component that only the most advanced observer can fully absorb. With the world renowned New York's Waldorf Astoria now becoming a brand around which a chain is being built, how long must we wait to see The Royal York become a global icon in cities around the world as in fact happened with the far less likely Four Seasons on Jarvis St, smack in the middle of the old red-light district?
Let us not forget or underestimate the effects of the multiple brand-repositionings that have taken place on many of Toronto's famed hostelries,
- Harbour Castle to Hilton to Westin
- Hotel Toronto Westin to Hilton
- Four Seasons Sheraton to Sheraton Centre
- L'Hotel to Crowne Plaza to InterContinental
- Hyatt to Four Seasons
- Park Plaza to Park Hyatt
- Holiday Inn to Colony to University residence
- Inn-on-the-Park to Holiday Inn to Inn-on-the-Park
- Bristol Place to Omni to Westin
- Skyline to Sheraton to Doubletree
- Carlton Place to Best Western to Park Plaza
- Constellation to Regal Constellation to closed
- Holiday Inn Toronto Airport to Crowne Plaza to Holiday Inn Select
- Holiday Inn Don Valley to Radisson to Crowne Plaza.
- King Edward to Meridien King Edward
Imagine the employee dis-orientation as streams of corporate takeover specialists flow through to indoctrinate the masses on the mantra of the day. Picture the customer confusion as loyal followers of one brand scoot around town to find out where the sign is hung this trip. Envision the taxi drivers' confusion as they scramble to explain the chains' musical chairs in a language that is often not their own. All of that to emphasize that re-branding is here to stay for the ultimate benefit of the investors.
Over the course of 35 of those 40 years, I have had the great fortune to be personally involved in every one of those buildings in one way or another and, for your amusement, here are the ways in which I was implicated in no particular order,
- Offered the position of GM by the high-profile illustrious owner when the hotel was fully but unfortunately independent and floundering. Did a valuation & declined.
- Assembled a complex strategic plan for purchase, repositioning and management. Plan was used but my brand choice was not. The other brand has since failed and now has been re-branded to my original plan.
- Created a dream-team pre-opening, opened the hotel , ran 38% GOP in first year.
- Created a dramatic redevelopment plan to include an upscale brand, one of the few remaining brands not represented in the city. Plan was executed in full. Owner scampered away without paying!
- Analysed the upsides of a redevelopment and valued the property. Steered potential purchaser to another property close by. Owner saved $9 million.
- Assisted this new owner to fully enjoy the fruits of his change of plans and repositioned the neighbouring property where asset value rocketed through the roof.
- Offered the position of General Manager by the shady redeveloper. Decided to stay in Acapulco!
- HQ of this now famous brand was located here. In these offices, we conceptualised and then I opened the first purpose-built hotel carrying this luxury brand's name in the world.
- Viciously opposed the brand sub-segmentation of this hotel group's name and we were ultimately proven right as the brand later underwent a multi-million dollar correction excercise worldwide.
- Developed an innovative 3-brand 'sister relationship' to promote the combined facilities of three hotels for conventions to this micro-market area of Toronto Downtown.
- Expanded, re-juvenated, re-branded and re-launched.
- Contracted to take over the direct management of this newly acquired hotel from its Asian owners during the SARS crisis.
- Competed with all of them as the area director for 13 hotels in and around the three cities and five towns.
Yes, this city is complex like every other major city but with the right advisor, you will be miles, if not millions ahead.
For assistance on your Toronto or any other project or under-performing hotel property, contact [email protected]
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