THE GENERAL MANAGERS GUIDE TECTON HOSPITALITY 1101 BRICKELL AVENUE, SUITE 1400 - MIAMI, FLORIDA 33131 305.577-8484 - 305.577.8228 www.tectonhospitality.com
Our Beliefs We are an organization committed to integrity, honesty and a passion for quality and innovation. We have associates that love the human race, are energetic, “show their teeth” and are proud of where they work. We support an environment that allows our associates to grow personally, professionally, and financially. We create positive memorable experiences for every guest. We work hard and have fun in the workplace. We profit by living these ideals.
TECTON HOSPITALITY _________________________________________________________________ ii LEADERSHIP……………………………………………………………………………..1 OPERATING PHILOSOPHIES ........................................................................................2 CONTINUOUS IMPROVEMENT ....................................................................................3 DOCUMENTED ROOM QUALITY REVIEW/DISPLEASERS.......................................................3 ASSOCIATE CELEBRATION, REWARD AND RECOGNITION....................................................3 CULTURE.............................................................................................................................4 GOALS.................................................................................................................................5 SKILLS.................................................................................................................................5 MANAGEMENT TOOLS - DAILY REPORTS ............................................................................6 OBSERVATIONS ...................................................................................................................6 SUCCESSFUL PRACTICES .....................................................................................................6 FRONT DESK RESOURCES ............................................................................................7 REVIEW HIRING AND TRAINING PROCEDURES. ...................................................................7 ENHANCE HOSPITALITY. .....................................................................................................7 ENSURE HOSPITALITY EXTENDS TO THE TELEPHONE..........................................................8 CHECK GUESTS IN AND OUT QUICKLY. ...............................................................................8 RESOLVE AND ELIMINATE GUEST-REPORTED PROBLEMS BY: ............................................9 REVENUE MANAGEMENT...........................................................................................10 REVENUE MANAGEMENT PHILOSOPHY .............................................................................10 PRICING PHILOSOPHY........................................................................................................10 THE THREE “PS” ...............................................................................................................11 REVPAR LOSS....................................................................................................................12 DIRECTING THE SALES & MARKETING EFFORTS .............................................15 ACCOUNTING..................................................................................................................17 HUMAN RESOURCES.....................................................................................................18 ENGINEERING RESOURCES .......................................................................................20 COMMUNICATIONS............................................................................................................20 PREVENTIVE MAINTENANCE PROGRAMS ..........................................................................20 LUMBING. .........................................................................................................................21 TELEVISION AND CABLE SERVICES. ..................................................................................21 HVAC. ...............................................................................................................................21 LIGHTING ..........................................................................................................................22 PEST CONTROL..................................................................................................................22 MILDEW............................................................................................................................23 HOUSEKEEPING RESOURCES....................................................................................24 MAKE A GOOD FIRST IMPRESSION....................................................................................24 ELIMINATE ODORS............................................................................................................24 ODOR CONTROL................................................................................................................25 RESTORATIVE PROCEDURE FOR GUEST ROOMS SMOKING OR MUSTY ODOR...................27 MAKE SURE ALL BEDDING IS CLEAN AND WRINKLE FREE ...............................................28 CLEAN GUEST BATHROOMS THOROUGHLY ......................................................................29
TECTON HOSPITALITY _________________________________________________________________ iii MAINTAIN EVERYTHING IN THE GUESTROOM IN WORKING ORDER .................................29 LINEN INVENTORY ............................................................................................................30 REWASH............................................................................................................................30 FOOD AND BEVERAGE RESOURCES........................................................................31 GREETING AND SEATING CUSTOMERS ..............................................................................31 SERVING CUSTOMERS .......................................................................................................31 FOCUSING ON FOOD QUALITY AND VARIETY....................................................................31 DELIVERING CORRECT CHECKS PROMPTLY ......................................................................32 ASSET PROTECTION/CAPEX PLANNING................................................................33 WHY FOCUS ON ASSET PROTECTION ................................................................................33 RULES OF THUMB FOR ASSET PROTECTION ......................................................................33 PREVENTIVE MAINTENANCE.............................................................................................34 CAPITAL EXPENDITURES ...................................................................................................34 ASPHALT PARKING LOTS ..................................................................................................36 HVAC - GUESTROOM UNITS ..............................................................................................37 HVAC COMMON AREAS…………………………………………………………… 38 EXTERIOR..........................................................................................................................39
TECTON HOSPITALITY _________________________________________________________________ 1 LEADERSHIP he General Manager sets the tone for the day. There is enormous value in “leading by walking around” if you know what to do and say as you walk around. Interaction is really communicating and words are the most sophisticated and practical tools of communication. A visible and approachable General Manager at the beginning of the day signals the team “we are ready for the task at hand”. A positive, warm approach in the morning, stopping by to have a cup of coffee or just generally welcoming the associates to work, will translate into satisfied associates who will in turn take care of our customers. We want you to practice a style of leadership based on the belief that a tough mind and a tender heart are one. The complete leaders of the future will posses a synergistic blend of both. T
TECTON HOSPITALITY _________________________________________________________________ 2 OPERATING PHILOSOPHIES A focus on US. Culture is the engine that drives profit. Use the Red Book daily. Think like an owner. All operating strategies and day to day decision making must be ROI driven and geared towards asset value enhancement. Instill an entrepreneurial and creative environment in all hotels. Move faster and innovate more than the competition. Surround yourselves with great people encouraging associate innovation through empowerment and rewarding positive results. Focus on compliance with SOPs and drive the Quality Six Process through external and internal customer involvement. Utilize technology as a means to improve revenues, operating efficiencies, and internal communication. Execution and “getting it done” is all that counts.
TECTON HOSPITALITY _________________________________________________________________ 3 CONTINUOUS IMPROVEMENT Without question, our labor markets, work force and competitive environments are rapidly changing, and our response must be to manage our businesses differently than we have in the past. Tecton is committed to renewing an environment in which we are constantly improving how we accomplish our work. The goal is higher levels of satisfaction for our guests, associates and investors, while maximizing efficiency and improving profits. Continuous improvement is supported by two main concepts: 1. We must change more than just processes and structures. We want associates to be able to continually learn and acquire new skills. 2. Everyone must be accountable to the concept of a balanced scorecard, where the needs of our guests, associates, current and prospective owners and investors are met. DOCUMENTED ROOM QUALITY REVIEW/DISPLEASERS Displeasers are items or conditions that our guests find annoying, offending or irritating. When a guest experiences displeasure, often the result is that the guest will: • Call the front desk or seek out management to complain. • Ask to have their room or suite changed. • Will question the value of what they have received for the rate they have paid. • Ask for their money back. • Share their displeasure with others. • Leave the hotel, will not complain, and will not return. To properly track room displeasures, it is the responsibility of hotel management to ensure trend reports and comments are reviewed weekly. Every Tecton hotel has the ability to determine what the most important items for their property are. ASSOCIATE CELEBRATION, REWARD AND RECOGNITION 1. Associate celebrations and recognitions occur regularly 2. Hold regularly scheduled team meetings on a quarterly basis typically after information is available. Create a fun and festive environment to enhance the associate celebration. These celebrations are not a meeting with an agenda. The associate celebrations are an effective way to: • Communicate bonuses • Recognize the associates • Update on company news
TECTON HOSPITALITY _________________________________________________________________ 4 CULTURE A major shift in our culture is actively involving hourly associates in the day-to-day decision making process at the hotel. It enables the hourly associates to take an active role in the day-to-day operations of the hotel, and to provide insight and to improve guest and associate satisfaction as well as profitability. • Hotels should hold Quality Improvement Meetings on a monthly basis to identify operational issues at the hotel affecting guest and associate satisfaction and profitability. Recommendations to correct the operational issues identified should be made. • The Quality process encourages all team members to express their concerns and to share their ideas to correct problems. This is accomplished in an open and nonthreatening environment that encourages participation. • Quality Improvement Meetings provide a framework for improving individual and team accountability, group development of solutions, speedy corrective action, and improve effective communications. After solutions to problems are discussed and agreed upon by the team, it is important that implementation occur as quickly as possible. This reinforces that the voices of the team members can really make a difference. • The meetings also provide a forum to discuss team goals and where the the team stands towards achieving their goals. The information should also be shared with associates on the communications board which tracks all goals and current standings. Quality Six Improvement Process Phase 1: Select a Team and Introduce the Basics. Phase 2: Identify the Problem. Analyze Data. Phase 3: Brainstorm Solutions to the Problem. Phase 4: Use the Tools to Evaluate the Possible Solutions (Flow Chart, Pareto, etc.). Phase 5: Develop an Implementation Plan. Phase 6: Measure and Track Results.
TECTON HOSPITALITY _________________________________________________________________ 5 GOALS The goal is to give people a clear expectation of what they are supposed to do. Goals must be:FASDFASDFASDFASDFASDFASDFASDFASDFADSFASD • Specific & stretch • Measurable • Achievable • Realistic • Time-bound • Goals should cover all relevant performance areas, not just financial (quality, service, productivity, delivery performance, costs, customer satisfaction, etc.) • Goals never go down in direction!!! (excepting seasonality) • As new information appears, it may be appropriate to update measurement standards. • Goals must be meaningful for each department/person, to act as a compass and a guideline for personal achievement of goals. SKILLS An important part of the continuous improvement process is building the skills of all associates. The Training Library should be utilized to objectively identify additional training/skill enhancement needs of all associates and ensure associates have the required skills to perform their duties. It is very important that more than just one person on the team know how to complete a task. When skill assessment is conducted at the hotel, often the management team is the only group to be trained on most of the technical skills. Associates who want to learn more about a specific task or department should be given the opportunity to do so. • It is the responsibility of management to ensure the Training Library is in place at their hotel. • Schedule time for required training. Use the Training Library as a tool to prepare a development/cross training plan for each associate.
TECTON HOSPITALITY _________________________________________________________________ 6 MANAGEMENT TOOLS - DAILY REPORTS Having management tools in place will help managers monitor performance and respond appropriately when needed. Management tools for forecasting and scheduling, payroll and productivity are valuable resources for developing the weekly forecast/schedule, and determining the man hours per occupied room on a daily/weekly basis. Be sure to use the Timeclock system to forecast/schedule associates against business demand is in place to: • Provide a measurement to track actual man hours per occupied room and compare them to scheduled targets established for continuous improvement. Daily Reports provide a complete overview of activities at your hotel from the prior evening. The General Manager must review this early in order to insure the integrity of the information being passed on to managers. Segmentation issues particularly, are essential for historical data, which will assist us in future marketing efforts. Additionally, these reports should be used to monitor trends versus forecast and budget, as well as to insure that revenues per occupied room are on target to prior year and recent trends. OBSERVATIONS Observation by managers is critical to improving the work process at individual hotels. Observing an associate while they are completing a task will enhance the associate’s understanding and enable them to be more productive. SUCCESSFUL PRACTICES Successful “best” practices developed by individual Tecton hotel teams provide a valuable resource of information for improving performance at your hotel and to: • Facilitate learning when your hotel seeks answers to operating questions. • Share and communicate any procedures or practices that have generated positive results at your hotels with other hotel teams in the Tecton system. • Research potential solutions for issues at your property.
TECTON HOSPITALITY _________________________________________________________________ 7 FRONT DESK RESOURCES Guests tell us they prefer service that is “warm and attentive” rather than “cool and efficient”. Five important areas to focus on to ensure friendly, attentive service are listed below. REVIEW HIRING AND TRAINING PROCEDURES. Ensure associates are friendly and attentive by: • Evaluating the staff to determine if the hotel is consistently hiring well-qualified, friendly, energetic individuals and providing them with the proper training before they begin working. • Using the Fair Treatment practices to ensure that all associates are treated fairly and honestly, and that the goals for new associates match that of the hotel. ENHANCE HOSPITALITY. Enhance hospitality by: • Ensuring that all associates participate in “Beliefs” Training within 1 week of hire. • Observing a number of associates to determine if empowerment guidelines are evident in all interactions with others. • Training all associates to use a smile, eye contact, cheerful greetings, and a friendly tone of voice to project a positive, caring attitude. • Scheduling sufficient associates to handle forecasted peak demand periods. Determine if warm, attentive hospitality is being practiced by: • Observing if associates are looking for opportunities to assist guests and coworkers. • Observing if Front Desk associates greet guests warmly, smile, address guests by their last names, reconfirm guest’s departure dates, thank guests for staying at the property and invite guests to return. • Ensuring that any associate who is the subject of a guest complaint is counseled and retrained if necessary.
TECTON HOSPITALITY _________________________________________________________________ 8 ENSURE HOSPITALITY EXTENDS TO THE TELEPHONE. Train associates in proper telephone hospitality by: • Explaining the importance of speaking softly, clearly, and politely. • Calling the hotel on a regular basis and evaluating hospitality. • Using the Training Library. • Scheduling Front Desk associates for periodic retraining on the telephone system. • Contacting the local Bell company regarding seminars on telephone etiquette. • Making a list of the “25 Most-Asked-Questions” at the hotel and making sure all guest-contact associates know the answers to these questions. Observe the Front Desk during peak check-in and check-out times to determine if associates are burdened with too many phone calls. If they are, consider: • Adding a second telephone answering console • Referring reservation calls to a toll-free or city reservation office during peak times. CHECK GUESTS IN AND OUT QUICKLY. Ensure quick check-ins and check-outs by: • Making sure staffing and scheduling tools are used in order to staff appropriately for peak busy times. • Making sure housekeepers clean departure rooms first (HK-SOP-15) • “Staggering” reporting lunch and leave times for housekeepers and Front Desk associates to ensure an adequate supply of clean rooms. • Checking PMS and CRO daily to identify early arrival times and help schedule work flow for Housekeeping and the Front Desk. • Reviewing with Front Desk and Housekeeping associates the impact of call-offs, bad weather, and meetings in the hotel can have on check-ins and check-outs; train them to prepare accordingly. • Have the Front Desk review each guest’s room preference in detail and then provide the room type requested. Use guest history profiles if available. • Having the Front Desk complete the administrative check-in process after the guest has departed for the guest room. • Keeping an appropriate supply of printed directions and complimentary supplies available at the Front Desk. • Making sure an appropriate supply of cribs, rollaways, pillows, etc., are in a readyto-use condition and easily accessible to the Front Desk associates.
TECTON HOSPITALITY _________________________________________________________________ 9 • Explaining to associates the importance of providing guest-loan items without delay. • Use Express Check-Out if available. Any delay or problem at check-in or check-out can be a major inconvenience for the guest. RESOLVE AND ELIMINATE GUEST-REPORTED PROBLEMS BY: • Ensuring the Quality Six Process has been established in the hotel. • Ensuring all associates are trained and empowered to resolve operational and service problems to the guest’s satisfaction. • Determining if the empowerment boundaries developed during the “Quality Improvement” process and the “Handling Guest Complaints” video are in place in the hotel. • Ensuring that when a guest reports a problem:xxxxxxxxxxxxxxxxxxxxxxxxxxx < A manager or associate takes “ownership” of the problem < The problem is acknowledged and an apology offered to the guest. < The guest is advised of the action that will be taken to correct the problem < The problem is resolved promptly. < The guest is contacted to verify guest satisfaction (FO-SOP-45). < When appropriate, a “Repair Card” is placed in the guestroom. < (ENG-SOP-02). • Tracking guest complaints and utilizing the Quality Six Process to eliminate problems identified through the tracking system. • Scheduling management coverage on the evening shifts: many guest-reported problems are brought to the hotel’s attention after 6 P.M. and can be resolved more effectively by a manager.
TECTON HOSPITALITY _________________________________________________________________ 10 REVENUE MANAGEMENT Our view of the revenue management effort of our hotels can best be described by our revenue management mission statement. “To develop and implement flexible reservations, yield, pricing, inventory, and sales strategies while maintaining an excellent price/value relationship and operating within each franchises’ or Desires’ hotels pricing and positioning philosophy.” REVENUE MANAGEMENT PHILOSOPHY Our revenue management philosophy is to be the revenue share leader within our market and consistently drive share away from our competition. One way of measuring our accomplishments is through consistently attaining a 100+ Revpar Index and a positive Revpar Index percent change. Our strategy will be a flexible one of demand and price based on market conditions. We use the following rule of thumb when determining when to drive occupancy and rate. 1) When under 70% occupancy we will drive occupancy by effectively managing rate by day of week. 2) Between 70% and 85% occupancy we will manage our market mix through tiered LOS restrictions and rate fences. 3) Over 85% occupancy we will drive rate by taking absolute rate increases. This strategy allows us flexibility within the different franchise or Desires hotel systems. PRICING PHILOSOPHY Our pricing philosophy also provides us with flexibility to optimize revenues. We need to subscribe to the following; 1) Adjust rates based on relative strength of demand. 2) All key accounts will have a sound price/volume relationship based on demand levels. 3) Do not make the spread among your rack, qualified and non qualified discounts more than 20% because you may be leaving money on the table. 4) All discount rates should be qualified (AAA, AARP, Govt) or fenced (LOS, advance purchase, prepaid). 5) Weekday, weekend, and day of week pricing will be used. 6) The will be a sound price/value relationship. 7) Rate parity will be practiced among all e-commerce distribution channels with the exception of opaque sites.
TECTON HOSPITALITY _________________________________________________________________ 11 THE THREE “Ps” There are three keys to any successful revenue management effort. They are Products, Processes, and People. The products (tools) we use and their effective use are based on the people we train and hire to execute them. Some examples of the products we use are: • Revenue Management Systems (IDEAS, RMS, ONE YIELD, Profit Manager). • Property Management Systems. • CRS, GDS, Internet Sites and Website Booking Engines. • Sales and Catering Automation Systems (Hotel Sales, Pro, Delphi, Daylight.) • Real time competitive rate reports (Rate View), Hotelligence Reports. • Weekly, Monthly, Weekday/Weekend, and Ranking Star reports provided by Smith Travel Research. • Distribution Channel rate and inventory software (Channel Manager, EZ Yield). The processes we use are guided by the Tecton SOP’s. Some of these are: • Daily/Weekly Revenue Management Meetings. • Price Value Evaluator (PVE). • Group/Transient Displacement. • Training (Revmax, Signature, HSA). • Monthly Key Account and Website Traffic, CRO/GDS/Internet tracking. • Monthly Revenue Management Critiques. • Weekly/Monthly Star Report Analysis. Lastly the people involved in the revenue management process and their focus and dedication is the key to brining it to the top line. The effort is team based and should involve the following key players at your hotel; General Manager, Revenue Manager, Director of Sales, Assistant General Manager, Front Office Manager, and Controller. Although these individuals are the driving force, don’t forget to manage these additional people and their role in the process: • Reservations and Front Desk Associates. • Group/Transient/Regional Sales Managers. • Third parties, i.e. CRO Agents, NSO’s, Travel Agents and Tour Operators. • Corporate and Franchise affiliated support staff. • Customers. Awareness of how you are performing and proactively shifting with trends will enable you to attain your greater share of the market. Charles Schwab once said: “Keeping a little ahead of conditions is one of the secrets of business; the trailer seldom goes far”.
TECTON HOSPITALITY _________________________________________________________________ 12 Below you will find several questions to constantly ask yourself if you are suffering Revpar and Revpar Index loss. Subsequently there will be some questions that focus on revenue options to eliminate the losses. REVPAR LOSS Questions to ask if you are suffering Revpar losses: 1. What is going on in the market that is causing an overall loss in market revenue per available room? 2. Is your (STAR data) competitive set accurately defined? 3. Are you analyzing the Smith Travel Research reports on a weekly and monthly basis? 4. Where is the room night shortfall taking place in your hotel, (group, transient or contract)? Have business conditions changed for your key customers? 5. What are the segment trends recently? Do you expect these trends to continue in the foreseeable future? What are you doing to respond to each of these segment changes? 6. What has happened to each of your individual segment price points and overall average rate? 7. 7. Did you see this revenue downturn coming? Was it forecasted? Has the downturn met the forecast? If not, why not?fghdfghdfghdfghdfghdfghdfg 8. How are customers reacting to your prices? Have you looked recently at your guest satisfaction score trends in your hotels’ price/value and intent to return relationships? Is your staff utilizing the price turndown capabilities of your CRS/PMS? 9. What is happening to your product and service scores? Are key departments delivering optimal levels of guest service? Is your competition able to serve your customers better? What specific strengths/weaknesses of your competitors must you deal with or turn to your advantage? Questions to ask about the behavior of your competition: 1. Who in your competitive set is gaining share and why? What are these competitors doing better? 2. Are you losing revenue share to your direct competitors or indirect competitors? Why and how will you react differently?
TECTON HOSPITALITY _________________________________________________________________ 13 3. Are your competitor’s selling strategy different than yours? Why? What might their selling strategy be getting them? 4. Do you have any new direct or indirect competition in your marketplace? Are you fully aware of their pre-opening pricing/rate strategy? What will their strategy be after they have been open for 3 months? 6 months? 1 year? How will you respond to their strategies? 5. In what way(s) are you most vulnerable to the competition? 6. Consider the most desirable 3 to 5 customer segments and the benefits sought by these key customers; how well do you provide the benefits sought versus your competitors? Questions to ask that focus on revenue options (and that might suggest potential solutions or courses of action): 1. Have you considered increasing the availability of transient discount rates ? Have you tested a bottom-up selling strategy with fenced rates, or tested lowering prices on existing upper tier rates? The key is to gain incremental lower rated business (i.e., Joe Cheap) while minimizing trade-down from higher rated customers. Are you practicing rate parity among all distribution channels? Are you using bundled package pricing and opaque websites to capture business outside your normal booking windows or short term respectively? 2. What have you done to focus on the sales abilities and sales execution of both your group and transient sales staff? As you know, time management is a critical issue for our sales people. Suggest that your staff closely examine the amount of time they actually spend selling (in the case of sales people) or in inventory/rate management (in the case of your Revenue Manager). Are the Sales department and Reservations working well together? 3. Are your sales people doing a better job than the competition in building and maintaining excellent customer rapport for group and transient accounts? What is their action plan to optimize account servicing? 4. Is your staff regularly analyzing your competitors to determine their current selling strategies and price points? Have they noticed any shifts in strategy? What has been done to modify your strategies to take advantage of the changing market? 5. Consider taking more group or contract business. Examine group ceilings and consider reallocating for peak and non-peak nights. 6. Is the sales staff aware of all repeat groups and contract business that is currently utilizing the competition? What are their plans to steal key accounts from your competitors? Does the Sales Department consistently do Reader boards?
TECTON HOSPITALITY _________________________________________________________________ 14 7. Have you studied your price turndowns in PMS/CRS? Compared them to last year? Are your agents recording and analyzing specific price point turndown information at the rate program level? You can use this information to set appropriate price points for each rate you might offer. 8. Check the weekly turndown report for your property and compare the number of availability denials to the number of Minimum Length of Stay (MLOS) denials. The MLOS denials should be much higher than the number of availability denials. A higher number of availability denials may signal the need for the Revenue Manager to more closely manage your demand. 9. Are you fully utilizing the lead referral program? 10. Have you met with other Tecton lodging products in the area to determine if your problem is shared? Are there mutual actions that you can take to solve joint problems? 11. Have you checked with your respective CRO to see if your hotels’ selling strategy is clear and easy for agents to sell? 12. Have you shopped your own hotel to see if your group and transient sales people are quoting and executing agree upon strategies? Have they noticed any shifts in strategy? Are they following the Signature Program? 13. Are special corporate accounts that are holding rate agreements with your hotel being carefully tracked to monitor room night production? Is there anything that can be done to increase share from these accounts? 14. Have you reviewed catering space release policies to be sure that you are not blocking significant amounts of group business?
TECTON HOSPITALITY _________________________________________________________________ 15 DIRECTING THE SALES & MARKETING EFFORTS We want to be the most proactive, tenacious hotel sales team in any given market. If we follow a consistent and methodical manner of operation and focus on customer loyalty, we will achieve our goals. As General Manager, it is your responsibility to keep the Sales staff focused through key measurements that will enable you to track their progress in relation to soliciting new business and improving revenue from our base of accounts. In order to do this, the following Standard Operating Procedures must be executed effectively: A. S.O.P. – 16, Managing Reservations Sales. The daily portion of S.O.P.16 includes the General Manager. In the past, we have mismanaged the reservations system in many properties. The General Manager must focus in on this area in order to insure that we are receiving maximum benefit from our Reservation Systems. B. S.O.P. – 06 Weekly Sales Meeting . The key opportunity for the General Manager to focus in on Sales activities weekly. The format is intended to focus your attention on, again, key measurements and revenue enhancements which could potentially drive new business into the hotel. This is an opportunity for team brainstorming and also accountability. Primarily, the Sales meeting should be used as revenue generation hour. C. S.O.P.-12, Revenue Strategy Meetings. The Revenue Strategy Meeting is your primary tool for insuring that we take advantage of all demand opportunities. The Revenue Strategy format of reviewing the current month on a daily basis and the next 90 days on a weekly basis is a must. Revenue Strategy meetings are revealing and give us the opportunity to change strategies at a moments notice. Holding Revenue Strategy Meetings is considered the most revenue enhancement exercise you can do. D. S.O.P. - 13, Prime Selling Time. Prime Selling Time must be adhered to. Keep your staff focused on selling all the time. Insure that all meetings, operational or sales, are held before or after Prime Time selling. E. S.O.P.-05, Customer Feedback. We must interact frequently and consistently with our customer base. Soliciting their opinions and feedback on our operation, positive or negative and sharing it with our associates. Then, follow through on their recommendations and let them know how you plan to resolve challenges and attract more of their business, while involving associates in the process. F. S.O.P. -22, Annual Business Plan and Quarterly Action Plan, Blue Sheets are important metrics by which you will hold your Sales team accountable. Quarterly Action Plans and the strategic Blue Sheet process are to be reviewed at weekly meetings and updates on completed action plans are to be presented on a regular basis. Quarterly Action Plans will be scored for effectiveness.
TECTON HOSPITALITY _________________________________________________________________ 16 G. S.O.P. – 26, Key Account Management. Imperative if you are to succeed in your respective marketplace. The “80-20” rule always applies. That is 80% of your business comes from 20% of your accounts. Insuring that all staff members are familiar with key accounts from the area and also that the General Manager is an integral part of the relationship with these accounts, is pivotal for your success. H. S.O.P. -29, Central Reservations Shopping. It is essential for verification of accuracy and selling strategies in the CRO. One of the most common mistakes that hotels make in reference to the CRO is the notion that it is a self-managed system, when in fact, accountability and validation are sorely lacking. This is key to transient revenue increases. I. S.O.P. - 30, General Manager Role in the Sales Process- This SOP is a review of the critical role the General Manager plays in the process. Because these activities and strategies play a key role in the success of the hotels’ top line revenue, the General Manager is held accountable to insuring that they are carried out consistently and effectively. J. S.O.P. – 35, E-Commerce Strategy. In order to maintain a strong presence on the Internet with the goal of increasing revenues and market share from this ever growing distribution channel, a strategic plan must be formulated using the guidelines established in this S.O.P .
TECTON HOSPITALITY _________________________________________________________________ 17 ACCOUNTING The focal point of our operating philosophy is our Primary Financial Controls. Although we do not expect the General Managers to be able to do the Controller’s job, there are certain financial controls that a General Manager should audit. Additionally, the Controller/Regional Controller should be a team member and be involved in all aspects of the hotel. In the event that the property has a dedicated Controller, that individual should attend meetings and bring information and assistance and participate in the Accounting related training and planning. If the property is serviced by a centralized accounting organization, the Regional Controller will coordinate the monthly close and conduct property visits, audits and training as needed. 1. You should thoroughly familiarize yourself with the Primary Financial Controls from Tecton. If in place, they will help us in minimizing losses and insuring strong profitability. 2. Credit meetings must be held on a monthly basis. Accounts Receivable and aging standards must be met and reviewed at credit meetings monthly. Any Red Flag receivables are to be discussed with Tecton immediately. 3. Cash flow review weekly with the General Manager is imperative for the operation. Without proper cash flow controls, capital expenditures and other direct expenses may have a detrimental impact on your property’s ability to meet budgeted cash goals. 4. Checkbook Accounting is the key for departmental expenses. The Checkbook Accounting System is the only manner in which you can hold your Department Managers directly accountable for expenses in their respective areas. Checkbook Accounting must be reviewed on a regular basis at Departmental Meetings and Executive Committee meetings. 5. Forecasting. Is the team approach being done? Without exception, properties which have forecasted within the accuracy benchmark for Tecton, have met or exceeded their budgets consistently. Properties which have deviated have had difficulty forecasting cash flow and achieving budgeted goals. 5. 6. Balance Sheet. Every quarter, review status of property Balance Sheet with Controller/Regional Controller. Complete, sign and return to Tecton by the designated date. 7. Mid-Month Reports are to be completed and sent to Tecton by the designated date. 8. Daily Reports are to be completed on property and reviewed by the General Manager and other managers as appropriate. ;ljlkjdfalkdsjfalkdsfjaldkfasldkfa 9. Monthly financial critiques are to be prepared by the General Manager and submitted with the Monthly Financial package to Tecton by the designated date.
TECTON HOSPITALITY _________________________________________________________________ 18 HUMAN RESOURCES Our Beliefs We are an organization committed to integrity, honesty and a passion for quality and innovation. We have associates that love the human race, are energetic, “show their teeth” and are proud of where they work. We support an environment that allows our associates to grow personally, professionally and financially. We create positive memorable experiences for every guest. We work hard and have fun in the workplace. We profit by living these ideals. Tecton’s leaders are fully committed to the beliefs stated above. True leaders empathize with their associates and aim for 100% associate satisfaction; you understand that happy associates make for happier guests. Leaders listen to their associates daily. Our company fully understands that the associates are our most important assets – and as a hotel leader, you should make sure the associates know and feel this as well. Our leaders set the example. Hands-on, walk the talk behavior is a standard in our company from the top down. Knowing that empowerment is the key to overall guest satisfaction helps us maintain above average Guest Service scores and improves staff loyalty. Tecton has provided the management teams with a thorough collection of Human Resource SOPs. There are, however, specific SOPs that we would like to draw your attention to as the most focus and emphasis is placed on the completion and maintenance of them. We have found them to be central in relation to our company culture as well as to be among the top “best practices” in the human resources realm. 1. Support the Tecton “Beliefs” in word and deed. Read, train and know the “US” red book from cover to cover. Wear your dog tags. Carry the pocket cards. 2. Understand that the Open Door Policy and Fair Treatment policies are central to the ebb and flow of communication among your associates. Encourage and discuss their use regularly. Act upon information received in a timely manner. 3. Practice progressive discipline as outlined in the SOP. Utilize the VPHR to make the best possible decisions for the company and for the Associates. Cut out the Nays! 4. Utilizing the “Listen and Respond” format improves communication and drives associate satisfaction. Pay attention and expect that your management team does the same.xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 5. Performance appraisals must be timely and fair. Identify the associate’s strengths and tie monetary increases to the measurable and to the specific. Utilize the company performance appraisals. Motivate!xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
TECTON HOSPITALITY _________________________________________________________________ 19 6. After making careful selection using the outlined qualification criteria (namely attitude and smile width), get those new hires through a super high energy orientation! Use of the Orientation Checklists is mandatory. Welcome them to the family as they should be welcomed, involve your management team. The technical, on-the-job training should be on every manager’s mind – trained associates are more comfortable, more productive and more satisfied. 7. Be sure and update the communication centers a.k.a. bulletin boards. The break room should be better than any other break room out there. In effect, this break room should be the most popular place in the hotel. Why not re-create a play room for all to enjoy. 8. Celebrate - a lot. Celebrate the “Yeas” and promote WOW stories! Award those associates monthly that make us proud and quarterly with the management team. Make it public, loud and fun. 9. Begin days and afternoon shifts with a Daily Huddle. These sessions should be quick, informative, celebratory, quick, guest service focused, quick and FUN! Make them yours and share the leadership of them occasionally. The staff should love them... 10. Contribute to the newsletter and Extranet postings. Associate “human interest”, “best practice” and “did you hear about...?” stories are welcomed at our corporate office.
TECTON HOSPITALITY _________________________________________________________________ 20 ENGINEERING RESOURCES Guests expect that everything in the hotel will be in good working order. There are eight important areas relating to maintenance and upkeep. COMMUNICATIONS Improve your communications for maintenance and upkeep by: • Establishing a Maintenance Log at the Front Desk to record and track problems and guest complaints (FO-SOP-45). • Ensure the Engineering department is reviewing the Maintenance Log at least twice a day to monitor progress and identify chronic problems. • Ensuring each problem or complaint is investigated promptly and appropriate steps are taken to correct the problem and keep it from recurring. • Setting clear empowerment guidelines for housekeepers to repair or replace minor items, such as remote control batteries, light bulbs, and scratched furniture. • Making sure a “Repair Card” is placed in the guestroom when a guest-related problem has been corrected (ENG-SOP-02). PREVENTIVE MAINTENANCE PROGRAMS • Ensure the hotel’s PM program is effective by: • Fully utilizing the preventive maintenance program (ENG-SOP-26). • Reviewing open preventive maintenance work orders on a weekly basis (the reports are in the PM system). (ENG-SOP-26). • Ensuring guest rooms are receiving PM on a 60-90 day cycle: more frequently if Repair & Maintenance scores are below 75. (ENG-SOP-26) • Making sure the Engineering Department has set up their PM Program to generate work orders on a weekly, monthly, semi-annual, and annual schedule. (ENG-SOP-26) • Meeting with your Engineering Department at least once per month to review recurring problems and spot checking the frequency and quality of the PM performed.
TECTON HOSPITALITY _________________________________________________________________ 21 PLUMBING. Identify and correct chronic plumbing problems by: • Training the housekeeping staff to identify guest room plumbing problems (e.g. leaky faucets, slow tub drains, poor water pressure) and report those as priorities to the Engineering Department. (ENG-SOP-15) • Ensuring the hot water boilers are being monitored daily by the Engineering Department. (ENG-SOP-15) • Reviewing trends on guest tracking and front desk log that indicate temperature and/or pressure problems in specific sections of the hotel. (FD-SOP-45) • Contact Tecton regarding unusual or continuing problems and complaints. TELEVISION AND CABLE SERVICES. Ensure TV and cable services are properly maintained by: • Contacting the hotel’s cable TV provider rep regarding problems with the TV system; the rep will respond within 24 hours. • Training the evening staff to fix or repair common TV problems • Making sure housekeepers check TV’s daily for poor reception, incorrect channel programming and weak or dead remote control batteries. • Group change out of batteries before they go dead. • Your hotel’s cable TV provider rep provides television, satellite dish, and cabling maintenance to the hotel. HVAC. Ensure HVAC units work properly by: • Completing PM on all HVAC units as prescribed by the PM system • Contracting the regular inspection and cleaning of your HVAC room units to national companies like Fibercare or National Steam Clean.
TECTON HOSPITALITY _________________________________________________________________ 22 LIGHTING Make sure lighting is working properly by: • Having housekeepers carry replacement bulbs on their carts. • Training housekeepers and other associates to report defective lamps and fixtures to Engineering for immediate repair. • Inspecting exterior lighting on a daily basis to ensure it is visible and in good working order. • Checking timed units periodically, particularly in the early fall and late spring months, to verify they are operating on the correct cycles. • Having Engineering and Housekeeping maintain an adequate inventory of spare bulbs. • Ensuring that Engineering and Housekeeping groups are replacing fluorescent circling bulbs on a 15-18 month rotation. PEST CONTROL Control and eliminate pests by: • Reviewing the Maintenance Log for guest complaints regarding pests. • Training housekeepers and other associates to look for droppings or other evidence of insects and pests; have Engineering use Raid to correct minor problems. • Being alert to any increase in outdoor pest activity; e.g. fire ant mounds. • Looking for evidence of rodents during the fall and early winter and taking immediate action if necessary; lower outside temperatures during these times tend to drive rodents indoors. • Checking for evidence of flying insects in public areas, especially along windows and curtains; control flying insects in these areas by installing a “stealth” bug catcher from ECOLAB. • Making sure the hotel retains the services of a reputable pest control company such as ECOLAB which treats the hotel once per month for pests and responds immediately when a problem occurs.xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
TECTON HOSPITALITY _________________________________________________________________ 23 • Insisting that guest rooms are receiving preventive treatment on a 1/12 rotation. With Tecton’s national contract with ECOLAB, the hotel is reimbursed for customer reported problems. MILDEW Check for mildew in these areas: • Bathtubs, tile surrounds and shower curtains • Drapes, carpet, walls and ceiling, particularly around HVAC units • Carpeting near HVAC units, suite refrigerators and sliding doors • Inside ice buckets and wastebaskets Counteract mildew and mildew odor by: • Making sure bathroom exhaust fans draw properly. • Using Ecolab products on the tile and grout to retard mildew growth. • Using approved wastebasket liners or replacing mildewed wastebaskets. • Installing “Ecosphere” refills in HVAC units. • Contacting Tecton and Ecolab for help in identifying and correcting physical problems that cause mildew. Use the correct solutions to treat mildew. Bleach derivatives such as Lemon Lift should only be used if absolutely necessary; misuse of these can stain carpets and harm associates.
TECTON HOSPITALITY _________________________________________________________________ 24 HOUSEKEEPING RESOURCES Our guests see cleanliness as an indicator of quality. Focus on improving cleanliness in the six key areas that Guest Tracking shows are most important to guests. MAKE A GOOD FIRST IMPRESSION Create a good first impression by always making sure: • Exterior signage is visible and illuminated properly. • Parking lot lighting is working and timed correctly. • Parking lot and grounds are free of trash and debris. • Front doors are free of fingerprints. • Establish a regular lobby flooring maintenance program to maintain clarity and reflection of floor. ELIMINATE ODORS Check for mildew in these areas: • Bathtubs, tile surrounds and shower curtains. • Drapes, carpets, walls and ceilings, particularly around HVAC units. • Carpeting near HVAC units, suite refrigerators and sliding doors. • Inside ice buckets and wastebaskets. • Counteract mildew and mildew odor by: • Making sure bathroom exhaust fans draw properly. • Using Ecolab products on the tile and grout to retard mildew growth. • Using approved wastebasket liners or replacing mildewed wastebaskets. • Installing “Ecosphere” refills in HVAC units. • Contacting Tecton for help in identifying and correcting physical problems that cause mildew.
TECTON HOSPITALITY _________________________________________________________________ 25 ODOR CONTROL “What can I do to keep my rooms smelling fresh?” We have found odor to be a strong component to the key driver “cleanliness upon entering the room”. Odor is very important to the customer’s decision to return to your hotel and overall guest satisfaction. For starters, there are many possible sources for room odor and solutions. The attached chart has some sources of room odor and their solutions. We want to give you the TOOLS to help you meet customer’s expectations in managing odor control. Here’s what we have included in the packet: • An explanation of the “science and art of controlling odors”. • Specific recommendations for special areas - smoking rooms, public space restroom areas, and workout room. • A new “fogging” procedure to help with those really tough rooms. REMEMBER the following as you develop your property specific odor control plan: • You can use a combination of odor counteractants and deodorizers on your property. There are a number of areas where Oasis deodorizers will do the job. Odor counteractants are most costly so be selective when using them (i.e.: smoking rooms). • Rotate oasis deodorizers on a quarterly basis. Just as you become accustomed to a particular perfume, continual use of the same deodorizer leads to “odor boredom,” The staff will become so accustomed to the scent that they will tend to overuse the product. The customer can be overpowered when entering a room, giving the impression that we are trying to “mask” a problem. • Your ECOLAB Territory Manager is a good resource to help in developing an odor control plan.GHJFGHJFGHJFGHJFGHJFGHJFGHJFGHJFGHFGHJFG
TECTON HOSPITALITY _________________________________________________________________ 26 Possible Sources of Room Odor Solutions Barriers to Improving Room Odors Room Odors • Mildew -Kill bacteria in air handling vents -Paradigm shift –no smell is -Regularly wipe down walls ok! -Odor free paint products -Properly dry out room from flooding -Odor desensitization. Rotate deodorizers so • Flood damage -Replace pad with carpet housekeeping staff -Drapes (Euro machine) does not become -Clean ducts desensitized. -Repeat mildew treatment (not a one-time fix). -No odor policy • Cigarette smoke Clean it (see Eco-Lab handout) -Turnover -Carpet • Ozone -Bedding -Too much trouble to fix -Upholstery items, trash cans • Old soft goods -Walls -Better training on Ozone usage • Chemicals (training) -Do not use deodorizer unless • HVAC necessary (then use odor counter- actants that dissipates) • Outside smells -Open windows during cleaning • New smell (paint, process Carpet, shower curtain) -Aggressive “standards” for No Smoking and Smoking rooms -“Smoke-care” cleaning process for smoking rooms
TECTON HOSPITALITY _________________________________________________________________ 27 RESTORATIVE PROCEDURE FOR GUEST ROOMS SMOKING OR MUSTY ODOR Recommended procedure for Smoking Room conversion to Non-smoking Room. Item Standard Carpet Shampooed Walls and wood furniture Washed Upholstery, sheers and drapes Vacuumed Blankets, spreads, and mattress pads Washed or dry-cleaned Pillows, facial tissue, toilet tissue, shower curtain, lampshades, all paper supplies, terry items, and HVAC filter Replaced Air/overall room The ozone machine, or an alternative smoke elimination process, must be run in the room for at least 30 minutes with all windows and doors closed.
TECTON HOSPITALITY _________________________________________________________________ 28 MAKE SURE CARPETING AND UPHOLSTERY ARE IN GOOD CONDITION Ensure carpet and upholstery is always in good condition by: • Cleaning, repairing or replacing carpeting with visible spots, stains, buckles, or burn damage. • Spot-cleaning carpet and upholstery regularly with multi-purpose spotter. • Touring the hotel and reviewing comment cards to identify rooms and public areas which require immediate attention. • Establishing a regularly scheduled carpet care program that includes routine, interim, and restorative methods (contact Ecolab Representative). • Making sure housekeeper vacuums receive regular PM. MAKE SURE ALL BEDDING IS CLEAN AND WRINKLE FREE Actions that will ensure bedding is in good condition include: • Reviewing the condemned linen log, inventory in service, cribs, rollways, and guest loan items at least every six months and cleaning, repairing, or replacing any stained, burned or torn item. • Continually discarding worn, stained, and damaged linen and terry. • Replacing guest room pillows on a 3-year cycle or as soon as they become lumpy, flat or stained. • Repairing minor tears in bedspread with MendAid, and replacing bedspreads and blankets every 4 to 5 years of as soon as they become stained or torn beyond repair. • Maintaining a minimum 3.0 par of linen to ensure all linen goes through the proper washing, drying, and self curing routine. • Actions to minimize and eliminate wrinkling, which gives an unclean appearance include: • Making sure the laundry is well-staffed with trained associates who can keep up production times. • Processing sheets, pillowcases and terry items in separate wash and dry cycles; each product has its own specific formula.
TECTON HOSPITALITY _________________________________________________________________ 29 • Curing all non-ironed linen on the shelf for at least 24 hours to self-press and dry; fold linen promptly when it comes out of the dryer – don’t allow it to accumulate in laundry bins. • Making sure an ECOLAB rep visits the hotel once a month; this service is free. • Having an ECOLAB rep check wash and dry cycles and temperatures to make sure they are properly set. CLEAN GUEST BATHROOMS THOROUGHLY Make sure that: • The floor, tub, sink, and walls are free and clean of any evidence of use by previous guests. • The bathroom and vanity area is stocked properly with soap, shampoo, tissue, etc. • Doors and mirrors are free of fingerprints, hair spray, etc. • The vanity is free of cigarette burns or stains • Any rust or grout discoloration around the commode and bathtub is removed; this can be an indication of more serious problems. MAINTAIN EVERYTHING IN THE GUESTROOM IN WORKING ORDER Have housekeeping check the following appliances, systems and items and fix problems on the spot or refer them to Engineering. • TV: have housekeepers carry spare remote batteries and check remotes daily; TV’s should receive a minimum of 12 channels: all channels must come in clearly; the Pay Per View rep can correct poor TV reception at no cost. • Lamps: make sure housekeepers carry replacements bulbs and report defective lamps or lighting fixtures to Engineering for immediate repairs. • HVAC: make sure the hotel has a PM program for HVAC units in place. Plumbing and Hot Water: have housekeepers report broken, constantly running/leaking or mislabeled water faucets commodes and sinks to Engineering for prompt repair; track and investigate guest complaints regarding lack of hot water to identify problems caused by ineffective or ill-times boilers.sfgdsfgsdfgsdfgsdfgsdfgsdfgsdfgsdfgf
TECTON HOSPITALITY _________________________________________________________________ 30 • Phones: Maintain an adequate inventory of spare phones 6' - 25' cords. • Furniture: train housekeepers to use Star Chemical Furniture Markers to repair small scratches; have housekeepers report chipped, burned, peeling or stained furniture to Engineering. • Insects and Pests: train housekeepers and other associates to look for droppings or other evidence of insects and pests; have Engineering use Raid to correct minor problems; refer to the Maintenance and Upkeep section for additional information. LINEN INVENTORY It is recommended that each hotel perform a full linen inventory once per month. The value of conducting an inventory is: • To maintain a 3 par; enough linen/terry to do all rooms 3 times. • To facilitate understanding of linen loss due to multiple reasons. • To create an opportunity to inspect all linen (stain free, no tears, crisp, etc.). While there may be several methods that work for counting linen/terry, the following recommendations may be considered helpful. • Start your count after the laundry has finished for the day. • Make sure you are as “caught up” as possible (clean and folded). • Make sure all laundry chutes are clear & all dirty linen separated • Refer to Standards Manual or the source for inventory forms (HK-SOP-19) (LDYSOP-08) to count each linen/laundry room. These forms can also be used by associates to inventory their carts. • Make sure that all guest rooms are at a correct room par. • Be sure to count all linen in dry storage. • Total all sheets for final count. REWASH The amount of linen/terry that must be re-washed due to stains should be 5% or less. By utilizing the “Daily Laundry Production Log” (LDY-SOP-08), located in the Standards Manual, one may compute the percent, either daily or weekly. Being knowledgeable of rewash percentages is crucial in being proactive with regards to: • Chemical strength • Laundry associates production • Machine cycle programming
TECTON HOSPITALITY _________________________________________________________________ 31 FOOD AND BEVERAGE RESOURCES Customers appreciate good food served promptly and with courtesy in clean pleasant surroundings. Focus on the following four key areas of food service and quality to improve performance in each area. A good way to assess your restaurant’s performance is to visit the restaurant during breakfast and talk to customers. You will see more guests between 6 AM and 9AM than at any other time of the day. GREETING AND SEATING CUSTOMERS Ensure customers are greeted and seated properly by: • Communicating to all associates the importance of a sincere, warm, friendly greeting. • Staffing a Host or Hostess during busy times. SERVING CUSTOMERS Ensure customers are served promptly by: • Maintaining appropriate par levels of china, glassware, and silverware. • Training associates to prepare properly for each meal period, with the right equipment, utensils, and supplies in place. • Meeting on a regular basis with associates who prepare and serve food and beverages to share customer comments with them and solicit their suggestions on ways to expedite and continuously improve service. • Having tables bussed and cleaned as soon as customers leave. • Making sure food inventories are correct, workflow is organized and associates know and execute their assignments. • Training servers to be able to explain all aspects of the menu and to know ingredients for regular menu items and specials. • Merchandising the buffet through suggestive selling by highlighting freshly prepared and seasonal items. • Assure proper staffing levels are present. FOCUSING ON FOOD QUALITY AND VARIETY Ensure good food quality by: • Serving hot foods hot and cold foods cold. • Having all kitchen equipment in proper working order; fix or replace broken items. • Taste-testing the coffee every morning and checking brewing equipment regularly to ensure it is clean and operating properly. • Dating inventories when they are received and using them on a first-in-first-out basis (FIFO).
TECTON HOSPITALITY _________________________________________________________________ 32 • Verifying that all restaurant associates understand Tecton food storage, preparation and buffet service standards. • Establishing buffet par levels for peak and slow periods so that all food is fresh. • Making sure the presentation of all items is appetizing and appealing. • Training servers to verify with the customer at the time an order is served that the order is correct. • Soliciting customer comments and encouraging all associates to ask customers if the enjoyed their meal. • Empowering associates to act immediately to correct problems. Ensure variety by: • Rotating buffet selections daily. • Offering a variety of breads and rolls and 8 different cold cereals on the breakfast buffet. • Making sure the buffet contains healthy alternatives such as egg beaters, yogurt and fresh fruit. • Reviewing with associates the importance of balancing variety and of the need to continuously clean up and maintain a fresh buffet appearance. • Talk to customers to determine if they enjoyed their meal and to find out what can be done better. • Providing Unifocus cards. DELIVERING CORRECT CHECKS PROMPTLY Ensure checks are correct and delivered promptly by:xxxxxxxxxxxxxxxxxxxxxxxxx • Training servers to make certain that every check is 100% correct. • Training servers so that a check is never given to a customer unless all writing on the check is clear and legible. • Having servers leave a check with the customer during the meal (immediately upon service at breakfast) so the customer can depart when ready; servers should continue to serve and meet all guest requests until the guest departs. • Having servers write “Thank You” and their name on the back of the check thank the customer and invite the customer to return. • Observing if servers address customers by their last names when possible. When the process of receiving and paying the check goes smoothly the customer departs on a positive note.
TECTON HOSPITALITY _________________________________________________________________ 33 ASSET PROTECTION/CAPEX PLANNING Our physical plant (building) must not only be clean, but must be properly maintained. This section covers the key areas a General Manager must focus on in order to properly maintain a multi-million dollar asset. WHY FOCUS ON ASSET PROTECTION There are four reasons why it is important to focus on maintaining the building: • Aging Product - Like an automobile, your hotel building and equipment requires ongoing, regularly scheduled maintenance to keep running in top condition. Preventive maintenance and smaller amounts of capital invested on an ongoing basis can help to avoid large capital expenditures for major repairs down the road. • Increased Owner Involvement - Just as homeowners hope to sell their house for more than they paid for it, our owners expect to get their building back in better shape and worth more than when they gave it to us. Owners are taking an increased interest in how their money is reinvested back into their asset. • Increased Competition - Remember when you were the new hotel on the block? The moderate and economy segments have been experiencing a tremendous amount of new supply entering into the market. Your hotel must be in “like new” condition if you are to effectively compete with the newcomers. • Customer Feedback - Market research tells us that guests associates “new” with “quality”. If the building and equipment are not properly maintained, you put yourself at risk to lose your customers to the competition. RULES OF THUMB FOR ASSET PROTECTION Make sure you follow the five rules of thumb: • Know what you don’t know - a hotel building and its equipment can be very complex. As a General Manager, it is important to recognize both your competencies and limitations and work within these boundaries. • Call experts when you need them - our primary focus is on preventive maintenance and it is not expected that the Maintenance Chief be able to repair every problem every time. Sometimes, even professionals need help! • There is no such thing as a stupid question - by not asking a question because you are afraid it is a stupid question, you deprive yourself of new knowledge.
TECTON HOSPITALITY _________________________________________________________________ 34 • Think long term - when presented with options, the “quick fix” may be less expensive and more timely, but may end up being more costly if the problem recurs because if was not fixed right the first time. • More expensive fixes aren’t always better - it is possible to choose a more expensive repair option than what is needed to accomplish the desired outcome, resulting in a poor value or payback for the capital outlay. PREVENTIVE MAINTENANCE The major areas of the building where the majority of capital funds are spent and which require your attention and aggressive preventive maintenance can be divided into two categories: • “Studs In” includes everything inside the building < Property Equipment < Food & Beverage equipment < Laundry < Rooms < Furniture < Fixtures • “Studs Out” includes everything outside the building: < Roofs < Facades < Mechanical systems < Parking lot The Maintenance Chief must organize the preventive maintenance effort using the PM schedule. The General Manager is required to review and sign-off on completed work. CAPITAL EXPENDITURES As stated earlier, if a building is to appreciate in value, it must be properly cleaned and maintained. The General Manager and Maintenance Chief are responsible to see that preventive maintenance is performed on an ongoing basis. As the building ages and warranties expire, larger amounts of capital will also be required on an ongoing basis to properly maintain the asset. The Capital Expenditure Planning Guidelines included in this Quality Assurance Kit should be used to help develop an overall strategy for the protection of the asset. Hotels that are properly maintained maximize the value to the owner.
TECTON HOSPITALITY _________________________________________________________________ 35 ROOFS - All New Roofs Installations are typically under warranty for the first year. Shingled roofs carry a 20-year product warranty and flat roofs are usually under warranty for 10 years. Age Activity Projected Cost of PM Step Desired Outcome 1-2 years Annually complete a visual inspection. Cost of non-warranty work should be R&M funded. Identify and repair any small problems before interior damage takes place. 2-5 years Physically walk roof areas 2 times per year, preferably spring and fall. Ensure attic ventilation is working properly. Cost of non-warranty work should be R&M funded. Identify early signs of roof failure and make repairs to avoid interior damage. 6-8-10 years Invest in hiring an outside consultant to complete biannual inspection. Property should continue to complete annual visual inspections. $900.00 plus travel expenses for consultant. Ensure roof is being properly maintained in order to maximize useful life. 12-20 years Continue with biannual inspections by an outside consultant. $900.00 plus expenses for consultant, as well as budgeted R&M or capital dollars for repairs. Project remaining years of useful life and schedule major repairs or replacement: Update capital plan.
TECTON HOSPITALITY _________________________________________________________________ 36 ASPHALT PARKING LOTS A new lot requires seal coating within 6 months after the initial installations and is typically done as part of new construction agreement. NOTE: The cycle will vary based upon climate conditions. Cold climates will impact the condition of the asphalt. Warmer climates tend to allow parking lots to defer sealing until year 5 or 6. Activity Projected Cost of PM Step Resources (Suggested) Desired Outcome Walk the lot and visually inspect for cracks, standing water, and depressions, particularly in parking stalls. 1st year repairs should be covered under warranty. Chief Engineer General Manager Identify early sign of lot failure and address before subbase is damaged. Prior to the winter season, walk the lot to identify cracks, depressions, and ponding Minor repairs are R&M. Bigger issues should be funded from Capital. In-house Engineering Staff Correct minor problems before water infiltration and winter weather damages sub-base of lot. Walk lots and develop a scope of work to include all repairs prior to seal coating. Schedule the parking lot seal coating and striping. Be sure that the accessible parking complies with ADA. Typical seal coat is approximately $5,000-$8,000. Repairs vary by hotel. Chief Engineer Outside Contractor Bluebook Engineering Manual for spec on seal coat material Protect and extend life of parking lot through scheduled maintenance. Year one cycle starts over again and is repeated every four years.
TECTON HOSPITALITY _________________________________________________________________ 37 HVAC - GUESTROOM UNITS Most hotels use package terminal air conditioning units (PTACs) to heat and cool the guestrooms. Units should be PM’d as part of a total maintenance program and pulled out for thorough cleaning once per year. This can be done by your Engineering staff or a contractor. Units Timing Activity Projected Cost of PM Step Desired Outcome Room PTAC 90 Days Clean filter and check for proper heat and cooling operation R&M Ensure PM is completed to maximize operating efficiency and extend the life of the asset. Room PTAC Annually Pull unit and steam clean or pressure wash coils. $6-10 if outside contractor is used; R&M Ensure PM is completed to maximize operating efficiency and extend the life of the asset; reduce the noise and odor to reduce complaints from customers.
TECTON HOSPITALITY _________________________________________________________________ 38 HVAC - COMMON AREAS (E.G. LOBBY, RESTAURANT) These units provide heat and cooling to public areas throughout the hotel. Most of the units are located on the flat roofs with some exceptions for split systems where there is an indoor (evaporator section) and outdoor (condenser section). Units Timing Activity Projects Cost of PM Step Desired Outcome Indoor Unit (evaporator and Fall coil) Spring and Fall These units should be inspected 2 times per year to ensure proper PM is being completed. The General Manager should: 1. Ask the Engineer to show the location of the indoor unit. Some are located in ceilings, closets, storerooms, etc. 2. Have the Engineer remove the access panel and visually inspect the coil. It should be clean on both sides to allow free flow of air. No cost unless outside contractor is used. Ensure PM is being properly completed to extend the life of the asset.
TECTON HOSPITALITY _________________________________________________________________ 39 EXTERIOR There are many types of exterior facades used on our hotels, ranging from vinyl siding to brick. Once you have identified the exterior finish on your hotel, follow the chart below to complete a visual inspection. Type Activity Projected Cost of PM Step Desired Outcome Vinyl Siding Complete visual inspection 2 times per year. In winter, vinyl will shrink and in summer it will expand. 1. Ensure all horizontal seams are snapped tight, broken sections are quickly replaced, and loose sections are removed and reinstalled. 2. Inspect caulk around windows and doors. There should be an even bead that seals out water. R&M expense Complete regular maintenance to protect asset and avoid capital expense. Wood Exterior Annual inspections should identify “popped” nails, mulch piled too high against the building, early signs of wood rot, and open seams in outside corners. Paint and caulk typically will last 4-5 years, but can and will vary based on location and weather conditions. Property should be inspected after the winter to assess the need for spring maintenance. R&M expense Complete regular maintenance to protect asset.
TECTON HOSPITALITY _________________________________________________________________ 40 EXTERIOR (Continued) There are many types of exterior facades used on our hotels, ranging from vinyl siding to brick. Once you have identified the exterior finish on your hotel, follow the chart below to complete a visual inspection. Type Activity Projected Cost of PM Step Desired Outcome Stucco Inspect the exterior for cracking, shrinkage, and watertight sealant joints. Joints in stucco panels that use a sealant material are called expansion joints. These joints are designed to take the expansion and contraction of the panel as weather conditions change. Joints that are cut in the stucco but DO NOT have sealant material in them are called control joints. They are designed to limit the cracking of the panel to the horizontal and vertical joint area. R&M expense; Larger repairs could be CEP Catch small cracks in early stages and make repairs to prevent moisture damage.
TECTON HOSPITALITY _________________________________________________________________ 41 EXTERIOR (Continued) Brick EIFSExterior Insulated Finish System Spring and Fall - the General Manager and the property should walk the exterior of the building and inspect the brick facade for: 1. Cracking or separation in mortar joints. If this condition exists, repairs should be completed ASAP. 2. No shrinkage or cracks in the sealant joints where the brick meets a different material. If sealant joints are even slightly open it should be repaired or replaced to avoid water infiltration. Every 8-10 years brick should be sealed with Siloxane. 1. Two times per year (Spring and Fall) visually inspect area where different products meet and/or terminate. For example, around PTAC sleeve, sliding door , windows, and balconies. These areas should have a 3/4" to 1" sealant joint that bridges between the products. Sealant should be bonded tight to both sides of joint. 2. Do not pile mulch against any part of the EIFS System. Wet mulch against the building allows moisture infiltration resulting in mildew. 3. Inspect lower sections for damage caused by weed workers. Patch any areas where the Styrofoam backing board can be seen. R&M for repair work. Capital for projects over $2,000. Siloxane sealant will run $10-15,000 Note: Most EIFS Systems have 5 year warranties which include an annual free inspection. Check your warranty file. No cost if completed by property. Warranty inspection also no cost for first 5 years. Minor repairs R&M expense. Complete coating / waterproofing Capex. Prevent water from getting behind the brick and causing structural damage to substrate of the building. In colder climate the goal is to prevent the brick from pulling away from the building as a result of water freezing. Extend the life of EIFS System to perform as a water barrier for at least 5 years. Catch minor deficiencies and repair before substrate damage occurs. Take full advantage of Warranty Inspection Program by scheduling annual free inspection.