ARTICLE - HOTELIERS TO TURN HAITI AROUND

HOTELIERS HUSTLE TO TURN AROUND HAITI
(Hotel News Now) - By Stephanie Wharton

REPORT FROM THE U.S. — The devastating earthquake that struck Haiti during January 2010, followed by a massive cholera outbreak, was not enough to keep the nation’s hoteliers down.

Two years later, many have rebuilt their properties and are working to make the industry stronger than ever.

There were 43 hotels in Haiti, totaling 1,674 rooms, as of December 2011, according to data from STR, parent company of HotelNewsNow.com. Two more are in the in-construction phase, while three properties are in the final planning stage.

Renovation plans

Hotel Florita, located in the Jacmel region of Haiti, was destroyed in the earthquake, and owner Joe Cross went to Haiti to inspect the damage with the intention of shutting the hotel down.

Upon arrival, Cross realized how many employees would be left without jobs if he closed the hotel, which would further contribute to the nation’s high unemployment rates. Instead, Cross decided to rebuild the property, and by mid-2010, Hotel Florita was up and running.

Cross said the frequent visits from the government organizations, aid workers and church groups helped boost hotel performance. “Once we repaired, the second half of (2010) after the earthquake was actually a lot better than the last six months (of 2011) because a lot of them have left,” he said.

Hotel Florita is the No. 1 rated hotel in Jacmel on TripAdvisor, and Cross said because it is one of the only historic buildings open in the Jacmel district. All others incurred significant damage. He is trying to find ways to make it even better.

“We’ve gone green to some extent. We don’t use any plastic … we’re trying to go solar and trying to revive the historic district,” he said.

“There’s a misconception that Haiti is a total hell hole … by far it is the most interesting country in the Caribbean because it’s the least touristic,” Cross said.

On the opposite side of the peninsula in Cap-Haitien, SCI Haiti, S.A., a property improvement and development company, is renovating and expanding six independent hotels in the city.

All the properties are owned by separate families and are operated by second or third generation family members, said Keith Simpson Jr., director of SCI Haiti.

The company evaluates property damage, focuses on business plans and feasibility market studies.

“We have a management consultant partner in Miami that will be providing some skilled advice to (the property owners) on the way they do business and offer suggestions on how to put some spit polish on the place,” Simpson said.

SCI Haiti is bringing in architects, engineers and housekeeping specialists to help the owners come up with master operational plans. A third-party organization also was brought in to assist the six properties in developing environmentally sustainable operations.

Simpson said a big source of demand for the hotels comes from the tremendous amount of business travelers in the northern region of Haiti. “… There’s a big industrial park, and there are several thousands of people coming and going for that,” he said.

There are no intentions by any of the properties’ owners to affiliate themselves with a brand, Simpson said. “(The independent property owners) got a reputation over the years that works just fine for them.”

Brand development

In fact, the first major brand to debut in Haiti is Best Western International’s 105-room Best Western Premier, which has plans to open during the third-quarter.

Mark Williams, international VP of North American development for Best Western, said plans for the hotel have been ongoing for six years.

The earthquake put the development behind by approximately two years, Williams said. “We approved this project probably about a year and a half before the earthquake.”

The Best Western Premier, which will be located in Petionville, a suburb of Port-au-Prince, is being developed with business travelers in mind. Williams said the owners, who are Haitian natives, felt there was a demand for a higher-end project to host government officials and business colleagues.

“We’re very excited because once it’s completed, it will probably be one of the best properties, if not the best,” Williams said.

Other major brands also are looking to expand to Haiti.

Marriott International announced in November it will open the 173-room Port-au-Prince Marriott Hotel under an agreement with Digicel Group Limited. Construction on the property is expected to begin during 2012, with an opening slated for mid-2014.

Executives of Carlson Hotels also had preliminary discussions with developers for a potential Park Inn by Radisson property in Haiti, according to Joan Cronson, senior director of public relations for Carlson. No deals have been signed.