Strong growth in rates, occupancy driving new hotels in Charlotte

Thousands of hotel rooms will open in Charlotte over the next several months — some in the coming weeks. The influx will include some flags new to the Queen City, including Kimpton Hotels, a San Francisco-based company that’s recently made a big push into the Southeast, and Marriott International’s AC Hotel, a design-centric brand popular in Europe. There’s an upscale boutique option coming to the former Ivey’s department store on North Tryon. Then there are a few new hotels with established flags here — a Residence Inn being built on top of the AC Hotel at the EpiCentre, a SpringHill Suites across from Spectrum Arena and an Embassy Suites in Second Ward.

“We have a booming market right now,” said Vince Chelena, executive director of the Charlotte Area Hotel Association. “As far as business travel, we’re doing extremely well. The (Charlotte Regional Visitors Authority) is doing a great job working with hotels to drive convention traffic. I think developers are looking at Charlotte long term and want to be in (the market).”

SREE Hotels is building a 195-room SpringHill Suites next to the Center City Green parking deck.

SREE Hotels is building a 195-room SpringHill Suites next to the Center City Green parking deck.

SREE Hotels, based in Charlotte, has developed a number of hotels locally but its 195-room SpringHill Suites next to the Center City Green parking deck is its first in uptown.

Vinay Patel, president and CEO of SREE, said the firm looks at hotel brand availability and site location before embarking on a project. And while SREE has pursued a few opportunities in uptown, the explosive growth of Charlotte’s downtown and a diversifying local economy made the timing right to build in center city.

“We’ve been in Charlotte since 1980 as a company,” Patel said. “The uptown market has developed nicely, with arts, conventions, sports; it’s no longer just a purely corporate destination.”

Kimpton decided to enter the Charlotte market — and broader Southeast — for similar reasons, as the whole region is experiencing accelerated growth. In addition to the uptown hotel, slated to open in the fall, Kimpton is planning a 128-room project in Dilworth.

“For us, our pipeline has never been stronger,” said Mitch Linder, Kimpton director of operations in the Southeast. “The Southeast, in particular, continues to be an area of interest and expansion for us, largely driven by demand generated by job growth and demographic shifts in that part of the country. Like Charlotte, many of the cities in the Southeast are young cities.”

The CRVA tracks performance metrics for Charlotte hotels and, according to results from fiscal year 2016, the market continues to strengthen.

Fiscal year 2016, which concluded June 30, ended with 73.1% occupancy, an average daily rate of $107.27 and $78.41 revenue per available room, all increases from fiscal year 2015. More than 6.5 million rooms were sold in Mecklenburg County between July 1, 2015 and June 30, 2016. That was more than 150,000 additional rooms than the previous year. Total hotel revenue was $698 million in fiscal year 2016, up 8% over the prior year.

Chelena predicted occupancy and rental rates will remain strong, even with the new supply coming online. More than 2,000 hotel rooms are under construction or planned, with 1,000-plus of those delivering in the next 12 months. He cited Charlotte’s strong business environment as a key driver for the robust market.

Patel, who sat on the CRVA board of directors for six years, echoed Chelena’s comments, indicating the city needs new rooms.

“Our economy has been pretty robust from a hospitality and corporate travel standpoint,” he said. “When you lure in conventions and events, it creates a more robust environment. The growth has to be systematic — you have to build the right thing, the right size, and let it get absorbed by the demand.

“As an industry, it’s a very cyclical business,” he continued. “I don’t think we’ve plateaued. It’s a normal business environment. 2016 was a very good year; occupancy is maybe leveling (and) rental rates are pretty solid.”

Ashley Fahey
Staff Writer
Charlotte Business Journal

View the full article here

Charlotte hotel operators see strong market, big concern

While the overall strength of the Charlotte region’s economy is fueling room demand and new hotel development, there are ongoing concerns about the impact of HB2.

Vinay Patel, president and CEO of SREE, whose uptown SpringHill Suites is on track to deliver in March, expressed confidence in the market, despite backlash from HB2. But, he said, it may not be known for awhile how far-reaching and long-lasting the hit will be on the hotel industry.

Vinay Patel, CEO of SREE Hotels, stands in front of the construction site for the new Springhill Suites Marriott that is adjacent to the uptown area. 

Vinay Patel, CEO of SREE Hotels, stands in front of the construction site for the new Springhill Suites Marriott that is adjacent to the uptown area. 

The controversial state law that limits anti-discrimination protections for LGBT people cost Charlotte a range of major events last year including the 2017 NBA All-Star Game.

“It would have been great to have the All-Star Game, but we won’t know (the impact) until we know,” he said. “I would say it’s probably not as bad as (some) people are saying, but we potentially won’t see the upset until further down the road. We might say that everything is going along fine because people already doing business contractually have to, but will they come back and do it again? That could be detrimental to the business.”

Mitch Linder, director of operations in the Southeast for Kimpton Hotels, expressed the San Francisco-based company’s “disappointment” with former Gov. Pat McCrory’s decision to sign HB2 into law.

“The bill does not reflect our value of inclusiveness, and we continue to advocate for change,” Linder said. “We continue to strongly urge the governor and North Carolina legislature to move swiftly to repeal this law.”

But would the law impact any decisions by Kimpton to develop future hotels in Charlotte and North Carolina? Not necessarily.

“We believe that we can affect the most change by leading with our mission and our brand message and by being an active part of our communities, including North Carolina,” Linder said. “That will remain core to our brand wherever we see the opportunity to grow.”

Vince Chelena, executive director of the Charlotte Area Hotel Association, said the biggest impact in the hotel industry from HB2 has been on hospitality workers, many of whom count on major events like the NBA All-Star Game to clock in overtime at fully-booked hotels. The cancellation of major events has led to employees having to share shifts rather than taking on additional shifts and, consequently, less take-home pay.

“They count on (overtime pay) to feed families, pay rent, pay power bills,” Chelena said. “It’s impacted us from the standpoint that we need to keep those employees. When times are extremely busy, we need every single one of them. With all of the hotel development, it’s a competitive environment for hotel employment.”

Ashley Fahey
Staff Writer
Charlotte Business Journal

View the full article here

General Assembly returns with HB2 looming as unfinished business

RALEIGH — As N.C. lawmakers met for the first time since a failed special session in December to repeal House Bill 2, the controversial law limiting protection for lesbian, gay, bisexual and transgender people emerged as a likely topic during the upcoming General Assembly session. Legislators mentioned the possibility of reconsidering a repeal during media interviews following a brief ceremonial and procedural opening day that included the re-elections of the Senate president pro tempore and the House speaker.

Those jobs will again be held by Phil Berger of Rockingham County and Tim Moore of Cleveland County, respectively. Both are Republicans. The GOP maintains veto-proof majorities in both chambers with 74 of 120 House seats and 35 of 50 in the Senate.

N.C. lawmakers greet one another on Wednesday in Raleigh, moments before the 2017 session started.

N.C. lawmakers greet one another on Wednesday in Raleigh, moments before the 2017 session started.

They returned for the usual abbreviated, opening-day session and will begin work in earnest on Jan. 25. For the first time in four years, state government is dividedPat McCrory, a former Charlotte mayor, lost his re-election bid in a race that stretched into December, ultimately sending the Republican home after one term. Roy Cooper, a Democrat and former four-term attorney general, is the new governor.

“Folks are still discussing that issue,” Moore said Wednesday of HB2, during a session with reporters on the House floor. “As we’ve talked about before, we were very close to seeing some action happen, but for what happened with the Charlotte City Council. In all candor, conversations continue to happen and I think you’ll see some trying to find compromise on that issue. You won’t see the General Assembly betray its principles of where it is, but if there are ways to try to deal with the concerns that were there and allay any issues or concerns with the business community, I think you can probably see something like that.”

Those remarks run counter to the stated goal of Gov. Cooper and advocacy groups including the Human Rights Campaign and Equality NC. The Charlotte Chamber, Mayor Jennifer Roberts and council also want a full repeal of the law.

McCrory signed HB2 into law hours after it was introduced and approved by state lawmakers during a one-day special session on March 23.

Those actions followed a decision by council in February to back a local ordinance adding LGBT characteristics to the existing nondiscrimination policy while also allowing transgender people to use public restrooms on the basis of identity rather than birth gender. HB2 overrode the local ordinance, prevented similar ordinances anywhere in the state, clarified the lack of protection for LGBT people in state law and prevented local governments from establishing minimum wages.

Since then, North Carolina has become ground zero for debates on gender identity, LGBT nondiscrimination rights and the politics and perceived perils of who uses which restroom.

Republican Bill Brawley of Matthews, a key player in House budget issues who helped stave off a previous attempt to take more sales-tax revenue from Charlotte and other large cities, told me Wednesday he has ideas and tactics in mind for improving urban-rural relations and finding common ground on HB2. But, Brawley added, those aren’t issues he wants to discuss in the media.

Berger, the Senate president, jabbed reporters and some Democrats in his remarks, criticizing them for emphasizing the most divisive issues to either increase viewer and reader interest in the case of the media and to provide fundraising fodder in the case of partisan politicians.

“I think we’ll find out in the next month how close we can get to full repeal,” state Sen. Jeff Jackson (D-Mecklenburg) said. More broadly, discussing state government, he said, “In all honesty, things are really tense right now between Charlotte and the Republican leadership in the General Assembly, but, hopefully, over the next few weeks, we can thaw that.”

Political analysts attributed at least part of the cause of McCrory’s election loss to voter frustration over HB2. In his home county of Mecklenburg, McCrory lost by 136,000 votes to Cooper after winning it four years earlier by 3,100 votes. Disputes with state government over the ownership of the Charlotte airport and McCrory’s support for a privately managed toll-lane project in north Mecklenburg also hurt.

Lawmakers spent almost no time Wednesday focusing on Cooper or McCrory. Berger, in his opening remarks, took one thinly veiled swipe at having a Democratic governor, promising the General Assembly will not revert to what he described as failed tax-and-spend policies. Mostly, he praised Republicans’ five-year stewardship as majority party, listing income tax and unemployment rates slashed by more than half during that time.

Moore and Mecklenburg lawmakers, among others, acknowledged likely continuing rifts between urban and rural legislators. Those divisions almost always break down along party lines — Democrats control most city governments while Republicans often lead smaller towns and less-populated counties — and between liberal and conservative policy stances.

Those tensions could be exacerbated by another round of proposals aimed at redistributing a larger share of urban sales tax money to the poorer rural parts of the state.

“I have been telling people across the state that we have to take urban and rural leaders at the local level, get together in a region, talk about those things you have in common and the things you can work together on and then have representatives from the urban and rural together to introduce legislation,” Rep. Becky Carney (D-Mecklenburg) told me. “It’s local officials reaching across to their counterparts (in addition to state legislators).”

Carney believes Charlotte needs to do more to showcase what the area contributes statewide to the economy, she added.

Freshman Chaz Beasley, a Mecklenburg Democrat, told me, “I sincerely hope we’re able to bring back up HB2, I think that’s important. ... I’m one of the few urban representatives that actually grew up in rural North Carolina — I grew up in Catawba County — and that’s a bridge we have to build.”

Erik Spanberg
Senior Staff Writer
Charlotte Business Journal

View the full article here

New Hotel Rooms Will Get Absorbed Quickly

Several hotel projects in center city Charlotte are scheduled to deliver over the next few quarters, bringing more than 1,000 new rooms to a market that a local hospitality association says is “very good.”

Vince Chelena, executive director of the Charlotte Area Hotel Association, said that despite bad news circulating nationally over the fallout from North Carolina's House Bill 2 — a contentious bill passed last March that has led to canceled events, conventions and corporate relocations — the Charlotte hotel market is enjoying strong occupancy and rental rates. And, he said, several planned short- and long-term mixed-use projects containing hotels signal long-term positive prospects for the Queen City.

“We can absorb those additional rooms without affecting occupancy because of the growth of corporate business,” Chelena said. “There’s pressure on the hotels to satisfy the needs of large room blocks and conventions and (also) take care of corporate guests at the same time. The additional rooms downtown will be welcome because we can satisfy both.”

Data from the Charlotte Regional Visitors Authority, which tracks performance metrics for area hotels, indicated fiscal year 2016 (July 1, 2015 to June 30, 2016) ended with 73.1% occupancy (up 2.1% from fiscal year 2015); an average daily rate of $107.27 (up 5.3% from 2015); and $78.41 revenue per available room (up 7.6% from the year before).

Some other numbers to consider:

  • Several center city hotel projects under construction are scheduled to deliver soon, some in the next several weeks. According to Chelena, the 250-room Embassy Suites at the corner of Martin Luther King Jr. Boulevard and Caldwell Street is on track to open next month as well as the 42-room boutique hotel at the former Ivey's department store on Tryon Street. The 195-room SpringHill Suites near Spectrum Arena is set to open in March. In the fall, the 216-room Kimpton Hotel at 300 South Tryon will open. And by first quarter 2018, a dual-branded Marriott International (NYSE: MAR) project with an 184-room AC Hotel (Charlotte's first) and 116-room Residence Inn will open.
  • But hotels aren’t just popping up inside the Interstate 277 loop. Planned boutique projects outside of uptown, such as West Elm’s 150-room hotel at the Design Center of the Carolinas and Kimpton’s 128-room hotel in Dilworth, are providing new rooms in markets that traditionally haven’t had lodging options. In fact, as Chelena noted, there is a significant lack of hotels between uptown and SouthPark.
  • Likely a longer-term objective, city leaders and the CRVA have touted the huge implications that developing a convention center hotel would mean for center city. A convention center hotel, which could include 1,500 to 2,000 rooms, would help the CRVA solicit major conventions that require a significant number of hotel rooms in close proximity to the Charlotte Convention Center. While thousands of rooms are under construction or planned downtown, those projects are adding smaller quantities of rooms across several developments rather than in one mega hotel. The CRVA is amid planning an overhaul of the Charlotte Convention Center that could be worth $100 million.
  • In the Charlotte region, 8,367 new hotel rooms are under construction or in the planning phase, with 2,228 of those in center city, according to CAHA.
  • In 2017, 22 hotels are scheduled to open regionally.

For more about Charlotte’s hotel industry, check out the Charlotte Business Journal’s hospitality special report in Friday’s print edition.

Ashley Fahey
Staff Writer
Charlotte Business Journal

Ashley Fahey covers real estate and development for the Charlotte Business Journal.

Link to the full story here

General Managers Newsletter - December 2016

General Managers Social – 5:00pm December 20, 2016

We are moving the General Manager’s meeting from its traditional date, December 15th to December 20th. The third Thursday in December is a very busy time for all with holiday parties, so we are moving the event to the following week when our catering business is starting to throttle down. With that in mind, CAHA leadership has decided to host our own holiday social gathering starting at 5:00pm on December 20th at the Hyatt Place Charlotte Uptown. We will not be hosting a business meeting on that day.

In addition to spreading a little holiday cheer, we plan to celebrate Sid and Lynn Smith for their service to CAHA over the years. Charlotte’s hotel community would certainly not be as cohesive of a group without Sid’s leadership and the logistical support of Lynn. Mark your calendar and join us for a holiday social and a reflective appreciation for a job well done by Sid and Lynn Smith.

CAHA Bidding for Good Now Online   

CAHA has created a fundraising campaign to support the CPCC hospitality pre-employment training program. You can view the online auction at https://www.biddingforgood.com/CAHA. The funds raised will be applied to student scholarships in the housekeeping and culinary training programs. CAHA members have hired every graduate from the housekeeping program so we know it’s a great resource for recruitment.

Vince Chelena, CAHA Executive Director, with recent graduates from the CPCC housekeeping training program.

Vince Chelena, CAHA Executive Director, with recent graduates from the CPCC housekeeping training program.

The first CAHA Bidding for Good auction is taking place right now and will conclude just before the holidays. A second auction will be held in February just before Valentine’s Day. These weekend packages make a great gift idea and are very popular items on Bidding for Good. Look for the bidding to get serious when the auction starts to close. 

Thank you to the General Managers who contributed to our inaugural auction. It’s not too late to contribute if you didn’t have a chance to participate in the first auction. We are asking member hotels to donate (2) weekend get-a-ways including breakfast for two. With your donation submission, please include the retail value for the package. Please send your certificates to:

Sarah Johnson
CAHA
1307 W. Morehead Street, Suite 207
Charlotte, NC 28208

CAHA Cares – Blankets for Levine’s Children’s Hospital

Thanks once again to the CAHA HR committee for their thoughtful community project that makes a significant difference in someone else’s life over the holidays. The HR committee has once again orchestrated hotel participation in the Holiday Carnival at the Levine’s Children’s Hospital. CAHA member hotel employees have come together to make fleece-tied blankets to give to children who are likely to spend the Christmas holiday in the hospital. CAHA representatives from the HR committee will deliver the blankets to the hospital at 1:30 pm on December 16th.  Way to go!

Trump’s Pick for Transportation Secretary – Impact on Charlotte?

President-Elect Donald Trump announced Elaine Chao as his nomination for transportation secretary. Chao is an experienced politician and former cabinet member having served as Labor Secretary under George W. Bush from 2001 through 2009. Prior to that, her service includes deputy secretary of transportation from 1989 to 1991.

Why does this matter to Charlotte?

The current transportation secretary and former Charlotte Mayor, Anthony Foxx, has ties to Charlotte transportation projects and his Federal Aviation Administration (FAA) had a hand in the controversial battle over ownership of the Charlotte Douglas International Airport. Foxx also was highly invested in Charlotte transportation projects like the Gold Line streetcar and the Gateway Station in Uptown. What will become of these and other Charlotte projects now that Foxx is leaving his transportation post and the new administration begins to transition its own infrastructure priorities?

As the new transportation secretary, Chao will have a key role in helping Trump pass a new infrastructure bill through Congress and initiating a slew of new federally funded projects. This won’t go without scrutiny as Chao is married to Senate Majority Leader Mitch McConnell. McConnell will likely be a key player in infrastructure bill negotiations and have considerable say in where those funds are allocated.

With Foxx, everyone knew he had an affinity for Charlotte and maybe his political loyalty created a certain window of opportunity for the city. Chao has no emotional attachment to Charlotte, but the Trump administration must now deliver on big promises for infrastructure improvements. It’s too early to tell how the politics will play out, but it’s bound to capture our attention when it does.

ACC Football Championship Records Low Attendance in Orlando

Although ACC Commissioner John Swofford claimed “a smooth transition” in moving the ACC Football Championship from Charlotte to Orlando, attendance at the game was less than optimal by historic standards. In fact it was the lowest attended Championship game in ACC’s 12-year history.

Last year in Charlotte the Clemson Tigers met the North Carolina Tar Heels and set an attendance record with over 74,000 tickets sold. In its five year association with the game, attendance in Charlotte has averaged nearly 69,000.

By contrast, the lower deck of the Camping World Stadium in Orlando was mostly full with Clemson fans, seemingly holding a slight edge over Virginia Tech fans, but the upper deck was sparsely populated. The official attendance was 50,628 and multiple reports suggest the ACC gave free admission to Disney employees, one of the ACC’s business partners. The ACC acknowledged that free tickets were given to Orlando business partners but disputed reports that “tens of thousands” were given to fill the stadium.

Is Airbnb Stealing Your Corporate Business?

Studies show that Airbnb is becoming more popular among business travelers. Managed travel groups such as American Express Business Travel, BCD Travel and Carlson Wagonlit Travel now have relationships with the site, and Airbnb recently launched Airbnb for Business specifically to penetrate the business travel and group markets.

Several corporate travel departments haven’t yet endorsed the site. One study shows one in 10 travel departments include Airbnb in their travel policies. However another study shows that 67% of millennial business travelers are interested in staying in shared accommodations.

Using STR data, it’s pretty easy to know which hotels are in a competitive set with Airbnb but it’s nearly impossible to know how many Airbnb options are available on any given night or what they charge or what amenities they might offer. A recent search for Airbnb offerings in Charlotte resulted in over 300 available units. That number is likely to increase substantially in 2017 given the flood of new apartment developments under construction or in the planning stages.

Even if we can’t truly quantify the threat, there are reasonable strategies to entice business travelers to choose hotels over the uncertain experiences offered by Airbnb.

Create a Community: Millennials are Airbnb’s strongest demographic and they tend to enjoy a sense of community. Apartments, homes, condos, especially in residential neighborhoods are less appealing because residents are not always appreciative of transient guests. And while some hotels can be viewed as impersonal, creating communal events where business travelers can gather in an informal setting will help to build a sense of community. 

Promote Peace of Mind: Safety and security issues are always forefront when booking a new Airbnb unit. There are no reasonable assurances someone will be there to help when you need it. If a guest becomes ill or needs help, their only option in an Airbnb unit is to seek medical attention on their own or call 911. In a hotel the front desk is a one-button call away.  

Find the Right Personal Assist: Road warriors come from a different mindset. The ones who book Airbnb are more likely to seek experiences which remind them of home than being overwhelmed with service. Still, they have one or two things they can’t do without. Find them.   

Future CAHA Events

  • CAHA General Membership Meetings: December 20 – Holiday Social (Hyatt Place Charlotte Uptown)

  • CAHA HR Committee Meetings: January 12 (tentative) (Second Thursday of odd-numbered months, 9 AM, subject to change.)

Support Our Supplier Members:

Afterdisaster-Metrolina; Gordon Food Service; Ipswich Shellfish Group; Moneysworth Linen Services; MSS Solutions; PIVOTek; Rainbow International Restoration; Show Pros Event Staffing Services; Tarheel Linen Service; The Charlotte Destination Group; TruGuard Construction Group; U.S. Foodservice; Visit Charlotte; and Where Charlotte Magazine

(Disclaimer:  The information contained herein comes from many reliable sources.  Every effort has been made to ensure its accuracy, but neither CAHA nor SALCO Consulting can assume any liability for omissions or inaccuracies. We are not attorneys and cannot give legal advice. You are urged to seek appropriate legal or professional council on all legal, accounting, tax or employment issues.)

General Managers Newsletter - October 2016

“An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive business advantage.”… Jack Welch, corporate leader and author

Global Soap Calls for Massive Help in Getting Soap to Storm-Ravaged Haiti

As you’ve seen, Haiti was ravaged by Hurricane Matthew, a strong category 4 storm that dumped up to 40 inches of rain in the hardest-hit regions. Clean the World (our CAHA preferred partner in soap recycling) is preparing to send soap and hygiene supplies to the impacted regions of Haiti, as well as the Dominican Republic, Jamaica, and the Bahamas, which also have been impacted by the storm. They report they will have tens of thousands of bars of soap on the ground in the next few days, and even more in the weeks and months to come. But they need financial help to get the shipments there. If you can help, click on this link to make a donation https://cleantheworld.org/forms/donation-form/.

And after getting the soap they already have delivered down there, they will need more in their warehouse in Orlando, FL. While there is a small fee to participate in their recycling program, it’s worth it. Once you sign up, they ship you a container to collect and store the used soap in. Once it’s full you simply send to them and they send you another container. Their need for used soap will continue; but you will also be getting these soap bars out of your solid waste disposal, which is of course, charged by the weight, so you’re also helping your bottom line. To get started, contact Riki Iverson at: riverson@cleantheworld.org.

CAHA’s Annual “Christmas Blankets for Children” at Levine’s Children’s Hospital

For the last several years, the CAHA HR Committee has orchestrated the participation by all of our hotels in the Levine’s Children’s Hospital “Holiday Carnival” (usually the Friday before Christmas). Organizations are invited to have a table and give a way gifts to the children that are, and probably will be, in the hospital over the holidays.

The hotels have always made fleece-tied blankets, and last year we set a new record with over 300. They are made by taking two pieces of fleece (the bottom one usually plain and the top one with some kind of characters or print); then you cut them in sizes for infants, small children and even teenagers; lay one piece over the other; cut a slit every few inches around all four edges of both pieces of fabric; then tie the resulting strips into knots to hold the two pieces together;…and you’ve got a blanket!

Hotels have set up tables in their employee dining areas, or a vacant room, and over a period of weeks, employees stop by and make a blanket or two. Then on the day of the “Carnival” they bring them over to Levine’s Children’s Hospital and hand them out to the kids that come by; some walking or in wheelchairs with IV drips; others with their parents; sometimes the child is too sick to come down and their parents or their nurse come down for them. This is the BIGGEST thrill and joy for all of the hotel folks that are there, handing out the blankets!

So, it’s time to start thinking about participating this year. Instructions on how to make a fleece-tied blanket are shown at the end of this newsletter. Let’s set another new record this year…and you sure don’t want to miss being there.

Another Way to Help Kids at Levine’s

Another great way to help children in Levine’s Children’s Hospital is the Annual Torch Relay for Children’s Miracle Network, which will take place on Saturday, November 5, 2016 at the Charlotte Motor Speedway. The theme for this run/walk relay is “Be an Everyday Hero.”

By giving to this amazing cause, you’ll be supporting local children and helping put smiles on their faces while they receive the medical care they need at one of the top 5 hospitals for children in the country. The goal is to raise $25,000 for this phenomenal local facility. But to do that, the Torch Relay needs participants…lots of participants. This is where our regional hotels and their employees can not only help, but have a great, fun day.

Hotels (and our Supplier Members), want to get a team together and participate? To register go to www.torch-relay.org. Would you consider a sponsorship donation of $1,000? Your donation will be recognized at the event in several ways. As a sponsor, your name will be placed on all materials and banners that publicize the event as well as announced verbally at the event itself.

If you want more information or have any questions, contact our own Crissy.wright@marriott.com.

US Economy: Retail Sales Down in August; Holiday Sales Forecast Up Strongly

Retail sales continued to zigzag in August after a strong June and a relatively flat July. The National Retail Federation (NRF) announced that retail sales, excluding automobiles, gasoline stations and restaurants, decreased 0.3 % over July. On a year-over-year basis, however, NRF calculates that retail sales have increased 4.1 %. This pattern of summer slowing was evident last year. In August, the three-month moving average of retail sales on a year-over-year basis increased 3.6 % unadjusted.

The US Department of Commerce also reported a decline in August of 0.3 % from July, the first drop in five months, after a revised 0.1 % advance in the previous month. The median projection of economists surveyed by Bloomberg called for a 0.1 % decline.

The NRF has also announced it expects sales in November and December, excluding autos, gas and restaurant sales, to increase a solid 3.6 % to $655.8 billion— significantly higher than the 10-year average of 2.5 % and above the seven-year average of 3.4 % since recovery began in 2009. Additionally, NRF is forecasting non-store sales to increase between 7 and 10 % to as much as $117 billion. Holiday sales in 2015 increased 3.2 % over the previous year.

Pay Attention to Your ADA Compliance Concerning Pregnant Employees

The EEOC has filed a lawsuit against a New Orleans motel company asserting it violated the ADA when it placed a pregnant employee on leave solely because of the fact that she was pregnant. The suit alleges that the employee told management that she was pregnant and that her pregnancy was considered high-risk.

The Employee later called her manager to inform him that she would be unable to work one day due to a pregnancy-related illness. Her manager told her that he was modifying the work schedule and taking her off the schedule for the entire week, despite the fact that she only needed one day off.

Six days later, the employee contacted her manager to ask when she would be placed back on the schedule but received a text message from him stating that she was being placed on a leave of absence until her pregnancy was over. The EEOC lawsuit says the company placed the employee on forced leave of absence without pay due to her pregnancy in violation of Title VII as amended by the Pregnancy Discrimination Act.

Nationwide Hotel Demand Softening?

Successful Meetings magazine published a report from the hotel consultancy firm TravelClick that suggests hotel demand across all of North America may be softening. Based on July numbers, while ADR held solid with a 2% increase over last year, the pace of new future bookings was down. New July bookings (overall) decreased by 3.6% compared to last July. Year-over-year future bookings through July still show growth, but many of those future bookings were made in the first and second quarters of this year. Individual business traveler bookings have fallen 4% in the last 30 days, even though ADR is up 2.8%. For the group sector, bookings are still up strongly at 6.1% for the month and ADR up 3.2%.

The article suggests that the fear or concern going forward is if bookings continue to soften, the lower tier limited or no-service, none-meeting and convention hotels tend to start cutting rates. TravelClick advises the middle and top-tier hotels that now is the time to “…become more proactive…in your online presence with consumers and travel agents alike…” to maintain or shore-up bookings in order to maintain ADR.

Yes we know this is common sense and we all know it. But sometimes it’s good to get a reminder in relation to what’s going on in the larger picture.

Federal Contractors Get Hit with Double Whammy on January 1

The Wage and Hour Division of the US Department of Labor (USDOL) has announced the applicable minimum wage rate to be paid to workers performing work on or in connection with federal contracts. (Many hotels are considered federal contractors by the size and number of government meetings they host each year.) Beginning January 1, 2017, the minimum wage rate will increase to $10.20 per hour and to $6.80 per hour for tipped workers. Executive Order 13658, "Establishing a Minimum Wage for Contractors," signed by President Obama on February 12, 2014, raised the hourly minimum wage paid by contractors to workers performing work on covered federal contracts to $10.10 per hour, beginning January 1, 2015; and annually thereafter by an amount to be determined by the Secretary of Labor. The applicable minimum wage under EO 13658 is currently $10.15 per hour (or $5.85 for tipped employees), having been in effect since January 1, 2016.

USDOL has also released its final rule implementing Executive Order 13706, "Establishing Paid Sick Leave for Federal Contractors." The Final Rule implements the requirement that certain parties contracting with the federal government provide employees up to seven days of paid sick leave annually. Employees will earn one hour of paid sick leave for every 30 hours worked that may be taken if they are sick, need to care for a sick family member, or must see a doctor or take a family member to a medical appointment. Paid sick leave may also be taken for reasons related to domestic violence, sexual assault, or stalking. The Final Rule applies to all covered contracts solicited and awarded on or after January 1, 2017.

Local hotels should check with their corporate headquarters and/or legal counsel on these issues.

Future CAHA Events

  • CAHA Annual Charity Golf Tournament for CPCC Scholarships: April 26, 2017 Pine Island Country Club

  • CAHA General Membership Meetings: October 20 (Marriott Center City), November 17, December 15 (Third Thursday of each month, 3 pm, subject to change.)

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How to Make a Fleece Tied Blanket

Follow these simple directions &you can make a warm, no-sew blanket using two pieces of fleece. The blanket pictured here is baby-sized, but you can use the instructions supplied here to make one of any size. 1½-2 yard-pieces are recommended for a larger child or teenager. The techniques are all the same, just the fabric size changes.

Let's begin by gathering the supplies you need...

What you will need…

Before you start any project it is easiest to gather together all of the supplies. For this fleece blanket project you will need:

  • 2 Coordinating Pieces of Fleece (the bottom piece will be up against the body & the top piece can be decorative & fun)
  • The size of the pieces of fleece will depend on how big of a blanket you want to make
  • You’ll need a ruler; a pen or pencil; & some scissors.

Now we can get started...

Lay Out the Back (Bottom) Piece of Fleece…

Start out by laying the piece of fleece that will be the back of your blanket, right side down, on your work surface. Pictured is a baby-sized blanket so it fit on a kitchen counter, but it works better with a larger blanket to lay it out on a floor. Smooth out the piece of fleece using your hand. 

The next step is to prepare the front piece of fabric...

Lay Out the Front (top) Piece of Fleece

Now, lay the piece of fleece that will be the front of your blanket, right side up, on top of the first piece of fleece. Again, smooth out the piece of fleece with your hands so it lies flat.

Next you need to trim your fabric...

Trim Your Fleece

Make sure you cut through both piece of fleece &trim your fleece to whatever size you want your blanket to be. The cuts do not have to be perfectly even. Please keep in mind, the finished blanket will appear about 8-10 inches smaller than the size you cut because of the fringe!

Now you need to measure the corners...

Measuring the Corners

The first thing you want to do is to prepare your corners to be cut. The key here is to measure in, from the corner, the same length as what you will make your fringe. Here we’re cutting the fringe about 4-inches long, so measure in 4-inches from each side in the corner. Mark your lines & repeat this for each corner.

The next step is to cut your corners...

Cutting Off the Corners

Next, simply cut off each corner square that you marked. Hold both fabrics together & cut through both layers. Don't worry about the lines being perfectly even. Once they are tied together you will never notice any differences.

You are now ready to cut fringe around your blanket...

Cutting the Fringe

All you do now is cut fringe along each edge. Make sure you cut through both thicknesses of fleece. This fringe is about 4-inches long & 1½- 2-inches wide. You can make your fringe longer than this, but don’t go much smaller…anything too much smaller will be hard to tie.

Once your fringe is cut, you can begin tying it...

Tying the Fringe

To attach the top piece of fleece to the bottom piece of fleece, you simply tie the fringe together. Grab a set of fringe pieces (a back &front piece), & tie a simple overhand knot in them.

Now your fleece blanket is almost done...
Continue tying the pieces of fleece together until you have worked your way all around the blanket. Your fleece tied blanket is now done. You can, of course, add some personal touches if you like. We DO NOT recommend adding buttons, plastic or cloth toy ornaments, or even heat-activated crystals as they can become a chocking hazard.

Want to join with us in the Charlotte Area Hotel Association (CAHA) in making blankets between Thanksgiving and Christmas…and then join us in delivering them to the Levine’s Children’s Hospitality during their “Holiday Carnival” at the hospital with the children. Wouldn’t it be great to give a bright, colorful, fun blanket (that you made yourself) to a child that’s probably going to be in the hospital over the holidays? Find out more about how you, your employees, neighbors and friends can participate by contacting us at charlottehotels@aol.com We’re inviting everyone in the hospitality industry (and those that are not) to join in and help us deliver some Christmas cheer this year.