HEIGHTENED HOSPITALITY

Nov 1, 2001 12:00 PM, By EMILY M. HARWOOD

It is no surprise that recent terrorist attacks and continued threats of violence have wounded the travel and tourism industries. Fear is now playing a large part in the loss of public confidence and has created an economic pinch in the tourism industry as security concerns become more widespread.

Though not directly linked to the Sept. 11 events, there is fear that potential future targets might include sporting events, theaters, theme parks and related venues such as hotels.

Indeed, the hotel industry has been hit especially hard as evidenced by a statement by Thomas J. Corcoran Jr., president and CEO of FelCor Lodging Trust Inc., the nation's second-largest hotel real estate investment trust. “After the tragic events on Sept. 11, 2001, we experienced an occupancy low on Sept. 16, similar to most hotel companies. Since that time, hotel occupancies have begun to rebound on a daily basis and trends continue to be encouraging. Occupancy improved by 6 percentage points from 48 percent in the third week in September to 54 percent in the last week in September with the occupancy high of 62 percent on Saturday, Sept. 29.”

FelCor is the owner of the largest number of Embassy Suites, Crowne Plaza, Holiday Inn and independently-owned Doubletree hotels.

What is the hotel industry doing to counter the effects of this recent downturn?

In addition to traditional physical security measures such as access control and surveillance systems, hotels are adding security in the form of guards, disaster-management training and background screenings of employees.

The good news first: Most hotels seem to have been admirably on top of security demands well before Sept. 11. Although heightened security around the nation has become an unfortunate reality, the appearance of guards outside The Broadmoor Hotel in Colorado Springs, Colo., is unrelated to last month's attacks. “The timing is just coincidental, really,” says Steve Bartolin, The Broadmoor's president and CEO. He adds, the hotel planned months ago to add security because of a rash of vandalism and thefts at the hotel.

For years, the resort allowed visitors to come and go as freely as guests. But after the hotel's movie theater screen was vandalized and guest corridor light fixtures were broken, among other incidents, Bartolin said things had to change. Now, guards known as “greeters” provide an extra measure of security. The guards welcome visitors and guests, ask if they need assistance and direct them to the correct buildings, Bartolin says. Motorists receive visitor passes for their vehicles.

With emergency planning and disaster recovery at the forefront of everyone's mind, many property and facility managers, as well as hotel owners, are re-evaluating their disaster plans to make sure they are up-to-date and that communication with tenants is clear and effective. A tenant's knowledge of how to react during an emergency, and management's responsibility to coordinate those efforts, are essential.

“We have always been concerned with providing good security,” says Ann Layton, vice president of public affairs for Fairmont Hotels. “All of our hotels have security teams in place and all are currently working with local law enforcement to determine whether any additional measures should be taken.”

Fairmont Hotels recently finished a year-long crisis training program this summer at each of its hotels, in addition to normal security procedures. Headquartered in Toronto, Fairmont is the largest luxury hotel management company in North America.

Another leading operator of luxury hotels and resorts, Four Seasons, currently manages 50 properties in 22 countries, primarily under the Four Seasons and Regent brands. “There's no question that the safety and security of our guests is always of primary importance to us,” says Elizabeth Pizzinato, director of corporate public relations.“We have always had well-trained security staff in place at all of our hotels, and this has not changed. While we are giving heightened attention to security, we do feel that all appropriate security measures are already in place.”

Sunstone Hotel Properties Inc. employs approximately 5,600 associates to operate 57 properties and a portfolio of 11,200 rooms in 10 states in the western and mid-western U.S. The properties are mid-priced to luxury hotels including Marriott, Hilton, Sheraton, Holiday Inn, Hampton Inn, Embassy Suites and Hawthorn Suites. Sunstone has given serious consideration to issues involving hotel security and has recently put emphasis on background screening as an integral part of its security strategy.

Sunstone sought a vendor with which it could collaborate to achieve the objectives. InfoLink Screening Services Inc., headquartered in Chatsworth, Calif., met Sunstone's criteria.

InfoLink is a nationwide provider of background screening, drug and alcohol testing programs and products, drug awareness training for employers, behavioral assessments and employment physicals. InfoLink developed The HIRE Program to provide the latest online technology, allowing clients to request background searches, view reports in progress, view completed reports, print reports and store reports online via InfoLink's secure Web site.

Within Sunstone, the initiative and responsibility for implementing an expanded screening program fell upon two individuals: Barbara Cook, senior vice-president of human resources, and Nida Palpallatoc, human resources manager.

“It's no secret that turnover is a challenge to our industry,” Cook says. “We felt that an expanded program of background screening would reduce turnover by deterring some applicants, while at the same time assisting our efforts to attract and retain ‘A’ players. We also felt that improving our security would provide added benefit to guests and employees. A more secure environment could also be expected to enhance Sunstone's appeal as a magnet employer.”

Results of the new program have been impressive. In 2000, the company's properties had experienced turnover rates above the industry average. With the program in place, turnover has dramatically decreased in 2001. The company is now targeting a turnover rate significantly below industry average.

Many firms are feeling economic pain as recent events make them reluctant to increase expenses for added safeguards. For these, the solution may be a government subsidy or tax credit to “prime the pump.”

“These types of incentives have already been used to promote the hiring of disadvantaged workers meeting specific criteria,” says Barry J. Nadel, president and CEO of InfoLink. “The time may now have come to apply this principle in the post-terrorist economy and offset the additional costs of security many industries are facing.”

“The point is that new threats require a new assessment,” he continues. “For some industries, security has always been viewed as a necessary expense — like airlines that check and re-check their flight crews. Other industries are just reaching this conclusion. For instance, high-rise office buildings should be checking the backgrounds not only of their security personnel, but also cleaning crews and parking attendants. The day may even come when we will be checking on hot dog vendors with carts.”

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© 2008 Penton Media Inc.

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