FOR IMMEDIATE RELEASE
CONTACT: Cynthia Roberson Carolyn Izzo Integrated Communications 845-358-3920 x14 croberson@ciicnews.com

The New Role of the General Manager in the Era of Ownership

LAKE PLACID, NY (November 8, 2007) -- Mixed use hotel developments used to be the exception rather than the rule. But with the growing number of hotel condos, private residence clubs and hotel-residential models, the scale has started to tip the other way, bringing evolutionary, and, in some cases, revolutionary changes to the role of the hotel general manager, particularly with luxury properties.

The level of hotel amenities and service are intertwined with the decision to purchase top-tier full or fractional ownership. General managers, therefore, play an integral part in both the hotel and real estate, and, to prosper in this new era, must adopt a new skill set. In my case, as managing director of The Whiteface Lodge Resort & Spa, a private residence club and resort located in Lake Placid, New York.

At the high end of the fractional ownership market, private residence clubs offer partial or full ownership in a five-star level resort with larger size residences than most fractional properties and the 24-hour services that are unique to luxury hotels and resorts. In this model, the general manager continues to market the hotel but also has real estate as a shared goal. With hotel owners focused on the "big picture" of a quicker return on investment with real estate and lenders monitoring performance closely, a general manager's decisions regarding how to manage and market the overall product are much different than before, especially for independent properties.

The GM of an independent hotel with an ownership component has three primary roles: (1) innkeeper, (2) sales and marketer, and (3) owner-guest liaison.

Steward of a Lifestyle
Why do hotel guests pay a premium for a fraction or full ownership at a world-class resort? Prestige and lifestyle. Clients who used to stay at Little Nell or The Whiteface Lodge now own at Little Nell or The Whiteface Lodge. The lifestyle offered at these private residence clubs centers upon location, amenities and service--a complete luxury experience that is maintenance-free. A private residence club's general manager must develop and maintain this lifestyle for guests, prospective buyers, and homeowners.

Responsibilities have increased in scope with millions of dollars in real estate sales at stake, and they are directly linked to the level of service and recognition that the resort uses to generate buyers. For independent properties, s/he must oversee affiliation with a luxury brand (i.e., Leading Hotels of the World, Small Luxury Hotels) and generate accolades to give the resort credibility and prestige--with the ultimate goals of driving real estate sales at a higher price.

Real Estate Sales & Marketing
General managers of high-end hotels with private residence clubs have to understand and embrace the role of real estate in the luxury hotel model, as real estate enables the resort to be debt-free within a short period of time -- significant given today's interest rates. While hotel operations must show a profit, the level of success and speed of real estate sales allows ownership to more easily obtain financing for future projects. The general manager will have successfully managed the process and done his job if he assists in the growth of ownership. To his further advantage, real estate sales generate owners' fees to assist with operational costs, allowing the hotel to run even more profitably.

The new general manager markets not only the hotel but also the real estate and therefore, needs a clear understanding of the property's positioning from the very beginning. For example, a resort and private residence club might consider two Web sites--one dedicated to real estate and one dedicated to the hotel. They have the same demographics but address the consumer at two different stages of the process.

Real estate networking is critical, and a GM's day-to-day responsibilities now include hosting receptions for brokers and entertaining buyers. The person in this position should also work intimately with public relations and advertising firms. For independent hotels without a brand and with limited corporate support, s/he should be involved to ensure consistency which is critical to the integrity of the brand.

Homeowner Relations
As general manager of a luxury resort with a private residence club, I serve two roles for homeowners. The first is as the hotel operator for items like rental agreements or space-available programs offered by the resort management to residence owners on an individual basis. In this capacity, I provide continual information about the resort's activities, construction, and enhancements.

However, I also act as the president of the homeowner's association (HOA), so I may address any topics related to the offering plan and its meaning. Involvement with the HOA includes managing relationships with hundreds of owners on a daily basis--from hosting one-on-one informal coffee gatherings with residence owners to responding to the owners' Web site on topics related to the resort, the sponsor, the management company, future developments, or the HOA. Part of this role is gathering residence owners together, creating a community of people who will, over time, develop friendships and refer future real estate leads to our broker. At our weekly coffee gatherings, my primary goal is to ensure owners are informed; however, it is also a way for them to network with one another and part of my role is to promote this network.

It's also my responsibility to review the expenses of the resort with the homeowner's association on a monthly basis, as occupancy levels affect the costs of running the resort. Many owners make emotional purchases of condominium/second-home models with little understanding of the offering plan, and often, the education of the new owner starts after they have already purchased the property. It is best that the real estate broker explains the plan with clarity at the time of sale, along with the assistance of the hotel operator, who is responsible for providing the luxury resort lifestyle and service experience.

Much of this education involves branding and finance. While Four Seasons and Ritz-Carlton have clear, formalized standards as major hotel companies, independent properties should educate their owners that organizations like Leading Hotels of the World are more than member/marketing organizations--they set brand standards for the resort. We need to clearly communicate benchmarks and position the resort appropriately not only with hotel guests but also with owners.

Because owners assume many of the operational costs of the resort, they understandably want to know how and why their money is being spent. Part of this process is educating the owners that they are buying into a luxury hotel not a typical condominium, and with a luxury hotel come amenities like turn-down service and 24-hour valet parking. If these services were to be removed, the real value would drop in proportion to its status as a highly reputable hotel.

While it is true that the general manager's role has changed radically over the past 30 years, this new role is really an amalgam of old and new. In today's luxury hotel and private residence club, this person plays the innkeeper role, as homeowners have brought about the need for the traditional innkeeper to maintain personal relationships for the property. The new general manager also has to handle a more complex business model, so all operations, from finance to marketing, require different knowledge and management. Now, too, this person serves as support for the real estate team because the entire project thrives on this knowledge and sensibility.

Entering the industry with the mindset of a traditional hotelier, one focused solely on managing the hotel, no longer makes sense with the advent of new, more productive models. We must embrace and excel at all of these elements if we are to be successful in the new role of today's luxury properties' general manager.

The above is courtesy of Olivier Bottois, Managing Director and Chief Operating Officer of The Whiteface Lodge Resort and Spa in Lake Placid, New York. Bottois has 25 years of experience at exclusive hotels and resorts, such as The Connaught in London, Hotel Ritz in Paris, The French Presidential Palace in Paris, and The Peninsula New York--plus 10 years in various management positions with Four Seasons Hotels and Resorts.

The Whiteface Lodge Resort & Spa is a 94-suite luxury resort and private residence club located in scenic Lake Placid, New York. This AAA Four-Diamond Award-winning resort was named one of Zagat's 2007/2008 World's Top Hotels, Resorts, and Spas, and has appeared on Conde Nast Traveler's "Hot List," The Robb Report's "Best of the Best" (one of only two in North America) since its 2005 opening. A member of The Leading Hotels of the World and designated a Virtuoso Preferred Hotel, The Whiteface Lodge is distinguished by Steak and Stinger, its celebrated restaurant, full-service Adirondack-style Spa, the Canoe Club on the shores of Lake Placid, indoor fitness center, indoor/outdoor pools, outdoor ice skating rink, movie theatre, family game room, and more. For information on full or partial ownership or reservations, call 1-800-903-4045 or log on to www.TheWhitefaceLodge.com.

# # #

Back to Press Releases