New properties offer attendees a unique experience. “It’s always nice to go where nobody else has gone before,” adds Roach. “The ‘wow’ factor is fantastic. I actually like the ‘wow’ factor of a renovation more than a new build. Your expectations are that the new build will be fabulous. But I’ve seen some renovated properties that blow my mind with what they did to take the property to a new level.”

Nearly all of Roach’s experiences with new and renovated properties have yielded great experiences for attendees. But one booking, a five-day incentive for a sales group at a property under renovation, proved disappointing.

Roach says the U.S. resort property — a favorite among planners did not have enough time to complete the full renovation. “I didn’t find out until two or three days before my group was going to show up that basically they were still running Bobcats (construction machines) around the property, laying down sod and doing lots of landscaping. The pool wasn’t complete. The spa wasn’t open, and retail shops weren’t going to be available,” Roach explains.

Turning Lemons Into Lemonade

Roach, like all savvy planners faced with such a situation, turned lemons into lemonade. “I certainly had enough of the agenda programs and activities taking place off property. We just smoothed right over it and said, ‘You know what, the pool deck isn’t open, they’re having a maintenance issue, so we are taking everybody to the beach. (Attendees) never really felt it. It was a small group, and it was easy to manage. I suspect that with a larger group it would be more difficult.”

Roach says the resort didn’t properly and regularly communicate construction progress. “Some people at the hotel thought that others were communicating with us, but they weren’t. Make sure you have a close working relationship with your director of sales and convention services manager. The good news in this case is that the property had enough integrity to respond in a wonderful way and financially compensate us for the inconveniences,” says Roach.

It also may be worth considering asking for at least some financial concessions from a DMC if it recommends a new or renovated property that doesn’t complete construction on time. Hanson Ansary, president and CEO of AlliedPRA Chicago, believes in taking some financial responsibility for recommending new and improved properties that don’t deliver.

For example, in one instance, Ansary’s company recommended a property because of its promises of improvement. “The client took our advice. The contract stated that construction would be done by a specific date, but they weren’t done with one floor when we arrived. They gave everybody notice that, starting 9 a.m., there would be construction sounds.”

And exactly at nine, jackhammers started. “There was also odor from new carpeting and paint,” says Ansary. “Participants and planners weren’t happy, and I made a huge fuss about it. I’m not contractually obligated to give a concession but I did. I have a moral obligation to somehow compensate clients if a recommendation doesn’t pan out,” says Ansary.

Planners can face construction delays for a variety of reasons. “This happens all the time,” says Sheila Cleary, second vice president, recognition and conferences for Montpelier, VT-based National Life Group. “Sometimes the developer may make changes to the (construction) plan. It could be changes in the number of rooms, changes in terms of the parking lot or anything that causes a delay. Then, the developers have to go back before city or town officials for re-approval. That additional process can cause a delay.”

Cleary suggests considering a hotel’s owner or operator as one decision-making factor. “When you are going through the process of determining whether a newly built product is in the best interests of your event, a key piece of that is who is your hotel partner,” says Cleary. She adds that planners should consider whether the hotel has a track record of building properties on time.

Roach agrees. “There are certain hotel brands you can go down that road with because they have a reputation for finishing builds on time and for ensuring that, when a hotel’s doors open, everything is in working order. Any experienced meeting planner will know who the hotels are and have a level of comfort working with them.”

The No. 1 thing planners can do to protect themselves is negotiate an iron-clad contract. “Have a clause that covers major renovation, construction or new build and that outlines the scope of the project, the completion schedule, and the anticipated impact on the areas your group will utilize,” Roach advises. “Have an absolute ‘out’ in the contract that gives you no financial obligation if construction is not completed by your program date, and that gives you at least 90 days’ notice. If the meeting can’t be conducted or guests can’t enjoy their accommodations as promised, there should be a ‘walk’ clause or some form of compensation.”

Site Visits Are Vital

It’s also important to visit the property as construction proceeds. Planners typically don’t have the time to make several site visits as construction progresses. That’s why some planners depend on trusted local DMCs to pop over to properties and check on progress.

Some DMCs receive requests from planners to record a video of new and renovated properties. Lynn Lee, global sales director, AlliedPRA San Diego, has received a handful of such requests, including one from a financial firm to videotape a renovated property. The financial company wanted to hold a meeting for about 200 sales executives.

Lee visited the hotel, with its permission, and recorded a detailed video. “I started out at the front entrance to give a sense of arrival and show the curb appeal as you drive up to the hotel,” says Lee. “I videotaped staff I encountered to see whether they said hello or looked me in the eye to get a feel for the property’s hospitality. I videotaped how a guest would walk into meeting rooms, ballrooms, guest rooms, a restaurant, golf course and spa. Those are the kinds of things planners look at.”

Lee also has videotaped a new property for another corporate planner. “The hotel was giving the planner a low rate, but the client thought it was too good to be true,” says Lee. “So he had me go over there and film the property. It all worked out fine. It turned out that the hotel had holes in their dates and were able to offer a great rate because they wanted to fill them with business.”

Improving Economy Spurs New Builds and Renovations

New hotel construction and renovations continue to grow along with the resurgent economy. Development projects are popping up nationwide in first- and second-tier destinations. Large, established destinations are adding and expanding properties to stay on top as smaller competitors do likewise to compete for meetings and incentives.

The outlook for hotel construction and expansion is bright, partly due to the improving economic performance of properties. Revenue per available room (RevPAR) is expected to rise 6.6 percent in 2014 and 7.5 percent in 2015, according to the December 2013 Hotel Horizons by PKF Hospitality Research (PKF-HR). As a result, interest in developing and investing in hotels, especially luxury upscale properties, is high, according to PKF-HR.

Here’s a rundown of some construction and renovation projects that are planned or underway.

• In New York City, the 1,781-room Sheraton New York Times Square Hotel has completed a property-wide renovation. With nearly 60,000 sf of flexible space within 43 meeting rooms including a separate upscale Executive Conference Center, the 13,768-sf Metropolitan Ballroom hosts up to 2,500 guests and opens into the Central Park Ballroom. One floor up, the 8,715-sf New York Ballroom holds an additional 1,200 guests. About 35,000 sf of event and prefunction space have been redesigned in a classic style similar to glamorous hotel ballrooms of the past. Located between Central Park and Times Square, the hotel also has a fitness center and VIP services.
• The 873-room Westin New York at Times Square has renovated 330 deluxe rooms and 24,000 sf of the property’s 34,000 sf of total meeting and banquet space, which includes three ballrooms as well as 32 meeting and breakout rooms.
• Another high-profile property, the 210-room Park Hyatt New York, will open in 2014 across from Carnegie Hall. The hotel, Hyatt Hotels’ first luxury property in the city, will be part of a 90-story mixed-use project that will include 5,000 sf of retail space.
• In Northern New Jersey, the 427-room Hilton Meadowlands Hotel & Conference Center opened in East Rutherford just in time for Super Bowl XLVIII. The hotel’s 30,000-sf conference center includes a 4,100-sf International Association of Conference Centers certified facilities, two meeting rooms and two ballrooms.
• In Chicago, the 1,260-room Hyatt Regency McCormick Place completed a $110 million expansion and renovation on the existing 800-room tower and added a new 400-room tower. The property has 50,000 sf of in-house function space including the redesigned 4,000-sf Prairie Room. The 25,000-sf Hyatt Conference Center also underwent a complete renovation, and the hotel added three new boardrooms along with a new business center.
• Another Hyatt property, the 2,018-room Hyatt Regency Chicago, also completed a makeover. The hotel now offers 228,000 sf of flexible meeting space, including a 25,000-sf ballroom, 70,000 sf of exhibit space and 15,000 sf of prefunction space.
• Also in Chicago, the Metropolitan Pier and Exposition Authority is building a 1,200-room headquarters hotel next to McCormick Place. Completion is scheduled for late 2016.
• In the Midwest, The Westin Cleveland Downtown, formerly the Crowne Plaza Cleveland City Center, will open in April following a $64 million renovation. Located a half block from the newly rebuilt Cleveland Convention Center, the 484-room hotel will offer 20,000 sf of meeting space, including a 9,000-sf ballroom.
• In Indiana, the 407-room Wyndham Indianapolis West is renovating 35,000 sf of meeting and public space. The property offers some of the largest hotel ballrooms in Indianapolis including the 9,400-sf Hall of Champions, the 8,122-sf Golden Ballroom, the 3,840-sf Fortune Square Ballroom, as well as meeting rooms and dedicated exhibit areas.
• The Omni Nashville Hotel debuted last fall with more than 80,000 sf of meeting and event space, including 15,000-sf and 25,000-sf ballrooms. The 800-room property is adjacent to the 1.2-million-sf Music City Center. The Omni Nashville is connected on three levels to the recently expanded Country Music Hall of Fame and Museum.
• In Texas, the 1,012-room JW Marriott Austin is scheduled to open in early 2015 just two blocks from the Austin Convention Center. The hotel will offer more than 110,000 sf of meeting space. The JW Marriott Austin will seek LEED Silver certification and a two-star Austin Green Energy Building rating.
• Strategically located in the heart of the Art Deco district of South Beach, the Shelborne will be “reborn” this year as Shelborne Wyndham Grand South Beach. The resort’s pool and lounge area leads right up to the boardwalk and a long stretch of beach. The 200-room Shelborne Wyndham Grand will have more than 15,000 sf of meeting and event space, an onsite fitness center and luxury spa suites, as well as an exclusive nightclub. The renowned celebrity chef Iron Chef Morimoto will operate all F&B at the Shelborne Wyndham Grand South Beach including his first outposts in Miami Beach — Morimoto South Beach, the Bistro, The Grill.
• Also in Florida, the 598-room Hilton Sandestin Beach Golf Resort & Spa, the largest beachfront resort on Florida’s Northwest Gulf Coast, has completed a $5 million renovation. The property’s 32,000-sf meeting space features a new beachfront-inspired design. The resort also has the 9,504-sf Emerald Ballroom and 5,600-sf Coral Ballroom with new touchscreen lighting, carpeting, wall treatments and paint. The boardroom features new teleconferencing facilities.
• Located near Tampa, the new Streamsong Resort opened its main lodge in January. The lodge includes a conference center with 14,000 sf of flexible indoor meeting space — creating 24,600 sf of total meeting space on the property — and 40,000 sf of outdoor venues. Also, there is 4,500 sf of banquet space in the clubhouse. The property is home to two nationally ranked golf courses, Streamsong Red and Streamsong Blue, which Golf magazine called “the best new courses you can play.” There also is a 7,000-sf spa, a lakeside pool and fine dining restaurants.
• In Lake Buena Vista, FL, Four Seasons Resort Orlando at Walt Disney World is under construction in the residential community of Golden Oak, near the Osprey Ridge Golf Course. Slated to open in summer 2014, the 444-room property offers more than 37,000 sf of meeting space, including grand and junior ballrooms with 14,000 sf and 6,000 sf, respectively.
• In Ponte Vedra Beach, FL, Sawgrass Marriott Golf Resort & Spa unveiled the results of a multimillion-dollar, resort-wide renovation project, which involved every aspect of the 63-acre oceanfront resort. The 56,000 sf of flexible and dynamic function space includes new wall coverings, seating, light fixtures and carpeting. All ballrooms, prefunction areas, meeting rooms and boardrooms have been completely revitalized with new artwork and golf memorabilia reflective of the entire resort. The Villas at Sawgrass are also available for meetings and breakout rooms for up to 12 people. The resort’s use of Marriott Red Coat Direct program ensures that meeting planners have a seamless event.
• In Arizona, the Hilton Sedona Resort & Spa has begun phase one of a $6 million renovation of the resort lobby, which will include a redesigned layout with additional social and work spaces, the addition of a spa concierge, and new furnishings and finishes from the ground up. The second phase of renovations will include the resort’s 219 guest rooms and suites.
• In Colorado, the Sheraton Steamboat Resort & Villas is undergoing an $8 million renovation that includes 56 new luxury Mountain Suites. The resort will offer a total of 285 rooms. The property features 28,000 sf of indoor and outdoor meeting space, including 17 meeting rooms and the 7,000-sf Grand Ballroom.
• In Colorado Springs, The Broadmoor is completing the second and final phase of renovations in its $100 million, multi-year renovation and expansion project, which is slated for completion May 2014. Focusing on the extensive renovation and enhancement of the original Broadmoor West building, the second phase of renovations includes the addition of a new Adam D. Tihany-designed Italian restaurant, renovated and expanded guest rooms, and a new health-inspired restaurant.
• In California, The Ritz-Carlton, Rancho Mirage, formerly the Lodge at Rancho Mirage, will reopen in 2014 with 244 rooms and 16,000 sf of meeting space, including a 8,400-sf ballroom. Located less than 10 miles from Palm Springs, the resort also features 24,000 sf of outdoor meeting space and a 25,000-sf spa.

Competition among hotels and resorts will continue to boost the number of options for planners. As that happens, planners would do well to keep in the mind the following risks and rewards, as outlined by Cleary: “The risks are that the product may not be all it was cracked up to be. The rewards are excitement over experiencing the latest and greatest — being able to say you are the first. Undoubtedly, the rewards far outweigh the risks. I&FMM