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5 things to know: 16 May 2012

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16 May 2012


Story Highlights

• US District Court blocks union ‘ambush rule’
• Orient-Express names new interim CEO
• Partnerships crucial for global brands in India
• Marriott’s ‘Courtyard Refreshing Business’ renovations moving along
• Supertel reports higher Q1 RevPAR for upper-midscale hotels

The U.S. District Court for the District of Columbia has blocked the so-called union “ambush Rule.”

The American Hotel & Lodging Association and Coalition for a Democratic Workplace filed a lawsuit against the National Labor Relations Board regarding its enactment of the measure. The U.S. Senate last month failed to block the measure, which shortens the union election process.

The court blocked the NLRB ruling because it was published without a quorum of at least three commissioners present. “AH&LA applauds this decision, which protects the rights of workers and employers as well as the integrity of our federal labor laws,” the AH&LA said in a statement.

Philip R. Mengel has been named interim CEO of Orient-Express Hotels Limited, replacing former interim CEO J. Robert Lovejoy.

Lovejoy, interim CEO since July 2011 when former President and CEO Paul White resigned, will remain Chairman of the Board at Orient-Express.

"On behalf of the entire Board, I would like to express how grateful we are to Bob Lovejoy for his willingness to wear two hats as Interim CEO and Chairman of the Board over the past 10 months,” Mengel, a board member, said in a statement. “The Board's decision to combine the roles of the Chairman and Interim CEO was always intended to be a temporary one. The search has taken longer than we had originally anticipated when Bob agreed to serve as Interim CEO in addition to Chairman, and we have now decided once again to separate these two roles. As we continue to work diligently to identify the ideal candidate with the unique skill set necessary to lead Orient-Express, I am pleased to step in to the Interim CEO role."

Sourcing experienced partners has proved to be a successful strategy for global brands looking to gain a foothold in India, reports HotelNewsNow.com’s Patrick Mayock.

Last month, for instance, Vantage Hospitality Group announced the formation of a joint venture with three experienced Indian players to launch VanMYT Hospitality. The new membership company will oversee development of the Value Inn Worldwide and Value Hotel Worldwide brands in India.

Roger Bloss, president and CEO of Vantage and chairman of VanMYT, said the experience of his three partners is crucial. “India is very difficult to maneuver,” he said. “The lending rules and banking laws are much different and unique. There are a lot of nuances to doing business in India.”

Approximately two-thirds of the hotels branded under the Courtyard by Marriott flag have completed the “Courtyard Refreshing Business” lobby renovation, reports HotelNewsNow.com’s Jeff Higley.

The 30-year-old brand, once considered a “category killer” because of its appeal to business travelers, is pushing hard to stay on top of the select-service segment, said global brand manager and VP Janis Milham.

The redefined lobby includes pedestals instead of a front desk to allow an associate to easily move about the lobby, Milham said. “It provides a completely different check-in experience,” she said.

Another signature piece for the new lobby is its “Go Board”—a 55-inch digital touch screen that allows for guest interaction. There’s also a business center, a library and a home theater with a 72-inch screen. The entire roster of 915 Courtyard by Marriott hotels is scheduled to be updated by mid-2013.

Supertel Hospitality said revenue per available room for its upper-midscale portfolio increased by 10.2% to $40.11 during the first quarter. The real-estate investment trust, which has historically been an acquirer of lower-end chain-scale hotels, recently said it plans to begin acquiring higher-end chain-scale hotels.

Overall RevPAR edged up slightly to $27.96 during the quarter, from $27.46 a year ago.

“The 2012 first quarter began to bear the fruits of our new strategic direction, both financially and operationally,” Kelly A. Walters, Supertel’s president and CEO, said in a statement.

Compiled by Shawn A. Turner.

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