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HOTELS GET Business travelers now place a greater innportance on fitness, moving all segments of the hospitality business to re-evaluate their fitness offerings. N ot many hotel guests expect to use an 85,000-square-foot fit- ness center for free with their $259 per night hotel room. Nor do they expect to take a Zumba class, book a session with a personal trainer or receive nutritional counseling while there. However, at Renaissance ClubSport, they can do just that. Leisure Sports, a development and management company headquartered in Pleasanton, CA, operates five ClubSport athletic clubs. But it also operates two Renaissance ClubSport facilities, one in Walnut Creek, CA, and the other in Aliso Viejo, CA, that are more than fitness cen- ters. Through a franchising arrangement with the Marriott, which owns Renais- sance hotels, each of these facilities is a fitness center and a hotel operating as one business, says Brian Amador, general manager of Renaissance ClubSport and director of hotel and club operations for Leisure Sports. (For more on Renais- sance ClubSport, read the online story at www.clubindustry.com.) "The club is very insulating against the shifts that a hotel can have due to the economy or business moving in and out of the area," Amador says. "A hotel can be very volatile, and the club can be very stable. So as a business model, working together is a sound model." Although Renaissance ClubSport may be unique, fitness has become an important draw for guests in much of the hospitality business, starting in the luxury brands, then making its way to full-service brands and now even at economy brands. One of those economy brands is Days Inn Worldwide, Parsip- pany, NJ, which will introduce a fitness program starting in September. (For more on Days Inn's plan, read the online story at www.clubindustry.com.) Several studies on hotel fitness offerings led to a re-evalution of fitness amenities by many hotels. A 2006 study, in particular, had an effect on Hilton Worldwide, McLean, VA, according to Jodi Sullivan, senior director of ' global fitness for Hilton. That study found that the majority of the more than 500 business travelers surveyed said fitness centers were among the top five most important features of a hotel. Hilton Worldwide's own research in 2006 found that the presence of a well- maintained hotel fitness center featuring high-end equipment could increase guest satisfaction by as much as 30 percent, Sullivan says. "It was extremely important back then, and it continues to grow in impor- tance," she says. After reviewing the research, Hilton determined in 2006 to make fitness a high priority by teaming with Precor, By Pamela Kufahl, editor-in-chief Leisure Sports operates two Renaissance ClubSport facilities, which are hotels and 85,000-square-foot fitness centers. The centers offer hotel quest access to the same pools, kayaking classes. Zumba classes and other amenities as members. Photos courtesy of Leisure Sports.

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Page 1: 2.4.pdf

HOTELS GETBusiness travelers now place a greater innportance on fitness, moving allsegments of the hospitality business to re-evaluate their fitness offerings.

Not many hotel guests expect touse an 85,000-square-foot fit-ness center for free with their$259 per night hotel room.Nor do they expect to take aZumba class, book a sessionwith a personal trainer or

receive nutritional counseling while there.However, at Renaissance ClubSport, theycan do just that.

Leisure Sports, a development andmanagement company headquartered inPleasanton, CA, operates five ClubSportathletic clubs. But it also operates twoRenaissance ClubSport facilities, one inWalnut Creek, CA, and the other in AlisoViejo, CA, that are more than fitness cen-ters. Through a franchising arrangementwith the Marriott, which owns Renais-sance hotels, each of these facilities is afitness center and a hotel operating asone business, says Brian Amador, generalmanager of Renaissance ClubSport and

director of hotel and club operations forLeisure Sports. (For more on Renais-sance ClubSport, read the online story atwww.clubindustry.com.)

"The club is very insulating againstthe shifts that a hotel can have due to theeconomy or business moving in and outof the area," Amador says. "A hotel canbe very volatile, and the club can be verystable. So as a business model, workingtogether is a sound model."

Although Renaissance ClubSportmay be unique, fitness has become animportant draw for guests in much ofthe hospitality business, starting in theluxury brands, then making its way tofull-service brands and now even ateconomy brands. One of those economybrands is Days Inn Worldwide, Parsip-pany, NJ, which will introduce a fitnessprogram starting in September. (Formore on Days Inn's plan, read the onlinestory at www.clubindustry.com.)

Several studies on hotel fitnessofferings led to a re-evalution of fitnessamenities by many hotels. A 2006 study,in particular, had an effect on HiltonWorldwide, McLean, VA, accordingto Jodi Sullivan, senior director of 'global fitness for Hilton. That studyfound that the majority of the morethan 500 business travelers surveyedsaid fitness centers were among the topfive most important features of a hotel.Hilton Worldwide's own research in2006 found that the presence of a well-maintained hotel fitness center featuringhigh-end equipment could increase guestsatisfaction by as much as 30 percent,Sullivan says.

"It was extremely important backthen, and it continues to grow in impor-tance," she says.

After reviewing the research, Hiltondetermined in 2006 to make fitness ahigh priority by teaming with Precor,

By Pamela Kufahl, editor-in-chief

Leisure Sports operates two Renaissance ClubSport facilities, which are hotels and 85,000-square-foot fitness centers. The centers offer hotelquest access to the same pools, kayaking classes. Zumba classes and other amenities as members. Photos courtesy of Leisure Sports.

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Hiiton Woridwide tries tolocate its fitness centers inpremium spaces witiiin itshotels (right). Photocourtesy of Hilton Worldwide

brands (right), Inter-Continental HotelsGroup is launching awellness brand calledEVEN. Photo courtesyof IntercontinentalHote

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HOTELS GET FITWoodinville, WA, to launch co-brandedFitness by Precor fitness facilities at full-service Hilton, Doubletree and EmbassySuites hotels in North America and atthe Waldorf Astoria in New York City.A year later, it was rolled out across theentire portfolio. Today, Hilton has fitnesscenters in 3,900 hotels, Sullivan says.

Also in 2006, Hilton Worldwide creat-ed a fitness department to oversee fitnesscenters and Wellness programming acrosseach of its brands. Sullivan leads the de-partment with support by the property,operations and other departments.

"It is my responsibility to create thatstate-of-the-art environment to motivateand empower our guests to continue ahealthy Hfestyle on the road, especially whenthey are staying with us," Sullivan says.

TAKING MEASUREMENTSOther hotel chains also began respond-

ing to these survey insights, moving theirfitness centers out of converted formerconference rooms to more prominent

locations. At least one hotel group, Inter-Continental Hotels Group (IHG), Den-ham, UK, which operates nine brands, hasannounced a Wellness hotel brand calledEVEN Hotels. (Read more about EVENHotels online atwww.clubindustry.com.)

Since 2004, the number of hotels thatoffer a fitness option has grown, accord-ing to the American Hotel and LodgingAssociation's (AHLA) 2012 LodgingSurvey of 12,000 hotels. In 20Í2, 84 per-cent of hotels at all levels offered a fitnesscenter, up from 63 percent in 2004.

Ninety-nine percent of luxury hotelsoffered a fitness center in 2012 comparedto 92 percent in 2004, and 99 percentof upper upscale hotels had an exerciseroom or fitness center in 2012 comparedto 95 percent in 2004.

Ninety-eight percent of upscale hotelshad a fitness center or exercise room in2012 compared to 95 percent in 2004.Almost as high were the upper midscalechains with 96 percent in 2012. The 2004survey did not include this category.

Eighty-three percent of midscalechains had exercise rooms or fitness cen-ters in 2012, an increase from 2004 whenthe midscale hotels were broken out bythose with food and beverage (72 percenthad a fitness option) and those without(78 percent had a fitness option).

In the economy market, 46 percentoffered a fitness center or room in 2012,an increase from 2004 when 29 percentoffered the same.

Despite these numbers, Joe Mclner-ney, president and CEO of AHLA, saysthat the importance of hospitality fit-ness centers often depends on the hotel'slocation. Hotels on an interstate highwaytypically attract travelers who are justpassing through and are less interested inworking out. However, hotels in cities-even economy hotels—typically attractmore multi-night business travelers whoare more focused on fitness.

For hotels with a large contingent ofbusiness travelers, competition can befierce, so meeting expectations is key.

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"Everything now for the hospitalityindustry is about the guest experience,"says Kent Collins, director of globalnational accounts at Life Fitness, SchillerPark, IL. "Everything they are trying todo is enhance that guest experience. Thefitness center is no different from anyother common area in their facility."

Hotel operators also know that guestsexpect more of their hotel's fitness centertoday, Sullivan says.

"They are expecting the same if notbetter workout experience than they haveat their local gym," she says.

The growing importance ofthe fitnesscenter can be seen in the fact that theyare no longer relegated to the basement.Sullivan's department works with everyHilton Worldwide property globally toassist them with building out the space,advising them to seek premium space onupper levels.

Luxury hotels often had a good mixof equipment, but now, more mid-pricedhotels are adding a better mix of equip-

Later this year, Intercontinental Hotels Group will open its first EVEN Hotel, a wellness-oriented brand. Image courtesy of Intercontinental Hotels Group.

ment that includes balance along withcardio and strength equipment, accord-ing to Steve Suchanek, director of prod-uct management at Cybex International,Medway, MA. Cardio still takes up themajority of space in most hotel fitnesscenters, he adds.

The importance of cardio means thatthe options on cardio are becoming morevital, including entertainment options andtechnology that allows users to track theirworkouts. Tracking has become easier withthe networked fitness options on the latestgeneration of most cardio equipment.

Because fitness offerings are more

important to the hospitality market, thatmarket has become more attractive tovendors. Even though most hospitalitygrowth is occurring in Asia Pacific whereCollins estimates two hotels open everyday, the U.S. hotel market also remainsattractive. In 2011, the United States had51,214 hospitality properties, accordingto AHLA. Those properties refresh theirequipment every four to six years, Col-lins says.

Beyond that, inclusion in a hotel fitnesscenter is good advertising for vendors.

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HOTELS GET FITsales developer-hospitality for Tech-nogym, Cesena, Italy. Guests use thatvendor's equipment for the length of theirstay, which equals brand exposure thatcould translate to an equipment sale.

OPERATION PLANSEven with the growing emphasis on

providing higher quality fitness centers,few hotel operators have the expertiseto manage the larger centers that needoversight. Some hotel operators haveturned to management companies oreven commercial clubs, Mclnerney says.Other hotels partner with health clubs toplace a club inside their hotel walls.

None ofthe U.S.-located IHG brandshave third parties manage their gyms,the company says. However, in certainmarkets and where appropriate, IHG haspartner gyms. For example, the com-pany's Crowne Plaza Times Square hotelpartners with New York Sports Clubs,which is located inside the hotel.

Management at Hilton brands varies.Some manage their own fitness centerswhile others use third-party manage-ment, Sullivan says. Hotels with com-mercial clubs in close proximity may havean agreement allowing guests to use thecommercial club.

In 2010, Core Performance, Phoenix,began designing workout programs forSheraton Hotels & Resorts Worldwide,which invested $120 million in rolling outthe program that also includes healthier foodoptions in hotels and room service menus,in-room workouts and healthy snacks.

Exhale, New York, operates its clubsin several hotels. The Sports Club/LAhas agreements with The Ritz-CarltonBoston and Washington and several FourSeasons hotels.

RETURN ON INVESTMENTAlthough some hotels do charge for

the use of the fitness center, many donot. The 2012 AHLA study found that

25 percent of hotels charge, down from41 percent in 2004. Luxury hotels aremost likely to offer free use ofthe fitnesscenters (93 percent in 2012 compared to92 percent in 2004) while that numbersteadily declines with each price seg-ment, ending with just 24 percent ofbudget clubs offering free use of thefitness center, compared to 26 percentin 2004.

Because few hospitality fitness cen-ters provide a direct financial reward, thereturn on investment can be intangible,measured solely by scores on guest sat-isfaction surveys.

"Sometimes the return on investmentis that if you don't have it, you won'tget the customers so you have to haveit, but you can't put a number to that,"Mclnerney says. "You can't say that Igot another 20 people because I had thefitness center."

However, Clyde Guinn, president ofDays Inn, part of the Wyndham Hotel

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The DayFit program that Days Inn will introduce in September will convertone to two guests rooms (depending on the size of the hotel) on the grouhdlevel into a fitness room. Image courtesy of Wyndham Hotel Group.

Group, says one ofthe main ways to measure return is throughthe STAR Report, developed by Smith Travel Research. MostU.S. hotels participate in the STAR Report, which collects allthe occupancy and average rate data for the majority of NorthAmerican hotels. Smith Travel Research puts each hotel in acompetitor set, which is a group of at least five competitors inthat hotel's tier level and neighborhood. The participating hotelscan then compare their performance to that of their competi-tive set on a weekly and monthly basis. Guinn says that throughthis report, operators can determine if adding a fitness centertranslates to higher occupancy rates than competitors withoutfitness centers.

However, the more immediate indicator of a return on thisinvestment comes from feedback online, particularly throughTrip Advisor, Guinn says. Days Inn's first statistics from its TripAdvisor scores (which allow ratings from 1.0 on the low end to

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HOTELS GET FIT5.0 on the high end) showed that the dif-ference in revenue per available room fora hotel that rated a 4.0 vs. a 3.0 was $10more per day per room, Guinn says. Fora 100-room hotel with 36,500 availableroom nights per year, that equates to anadditional $365,000 per year in revenue.

"That is a difference in every roomyou have available in a year regardless ofwhether you sold it or not," Guinn says."That difference is almost pure profit."

Guinn says he is convinced that hisbrand's DayFit program will help DaysInn franchisees improve their rankingsand increase their revenue.

"You can monetize this," Guinn says. "Iam extremely confident that it will result ina better market share for our brand and abetter financial situation for our owners."

HOTELS FOLLOW CLUBSDespite the greater focus on fitness

in the hospitality business, the industry

has room for growth in this area. MuUersays that some hotels still shop by pricepoint, but as the world continues to be-come more social and mobile, hotels willlook for partners to provide content thatoffers guests a unique, entertaining andengaging experience. To do so, hotelswill need to know their guests, how theylike to exercise and their motivations forexercising.

"Understanding what motivates themto move to help personalize the experienceis probably the most critical thing in thefuture for the properties," Müller says.

As the equipment at more commercialclubs become networked, hotels will feelthe pressure to offer the same, says DavidDiehl, global hospitality sales managerfor Precor, because people will expectmore from their equipment, including theability to track their progress. This move-ment means opportunities for creativemarketing and loyalty programs, which

could turn hospitality fitness centers intorevenue generators. These types of mar-keting opportunities are already beingused in commercial clubs.

"I think the club industry is settingthe pace for the hotel industry becauseclub members are the heart ofthe travel-ing sector," Amador says. "And they arebecoming more knowledgeable, and theyare driving a lot ofthe decisions that weare making in the hotels these days be-cause it is a very educated clientele."

Equipment quality, environmentalquality, and the cleanliness and conditionof the facility drive successful clubs andwill drive successful hotel fitness centers.Amador says.

"People have come to realize thattravel may not be the healthiest thing todo," Amador says. "People are lookingfor healthy travel, and I think hotels havepositioned themselves to accommodatethat need. They have to." •

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