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News Updates > STARWOOD FEE MATRIX

News Updates

STARWOOD FEE MATRIX
July 10, 2006,

On July 10th Steve Walch Starwood VP Finance Hotel Centralized Services chaired the second Fee Matrix Conference call.

July 10, 2006  1:00PM-2:00PM - 2007 FEE MATRIX
Franchise & Owners Representatives
John Shingler, ASFONA (JS)
Craig Lambert, CNL Hospitality Corporation (CL)
Ernie Freedman, HEI Hospitality (EF)
Abe Moses, Sheraton Suites Akron/Cuyahoga Falls (AM)

Starwood Hotels
Steve Walch, Vice President, Finance H/C/S & Team 
Steve Walch thanked everyone for their participation and explained that this was the second of the 2007 Fee Matrix review calls.   
FP Marketing Proposal 
Hoyt Harper explained the benefits of the proposed changes.The Board was pleased that the Field marketing costs will be included within the change.
Programs still under review
SW stated that Starwood is still reviewing 2 programs for additional fee revisions:  The SPG program is still being revamped to consider changes to various aspects of the program including:
Expanded control of High Season periods
Amount of points required for property redemption
Increases in basic redemption awards to properties
Supplemental compensation

The existing charge is not under consideration for change.  These recommendations will be sent out from John Peyton of the SPG group by September 1st.  Steve also shared that the SPG audit report for 2005 was now available.
John Shingler and Abe Moses  appreciated the SPG work that is being carried out and said this is exactly what was requested at theApril 5th ASFONA meeting.
Group Lead Capture
SW explained that this new Sales Center fee would consist of a group dedicated to taking leads for smaller groups than the GSO would normally handle and evaluating the lead and potentially input all info directly in the property’s Delphi system.
Starguest Recognition
SW will look into what was told to the group by the Galaxy group 
Six Sigma training
Ernie Freedman (EF) inquired as to how many Green Belts were needed per hotel, and what level hotel personnel should attend the training.EF also wanted clarification on whether the training would be offered in multiple locations and multiple dates which SW confirmed would occur.  JS commented that with staff turnover there could potentially be a high cost associated with greenbelt replacements and suggest SW provide guidelines for which members of mgmt should be chosen to attend. EF also asked if a previously-trained Starwood greenbelt that is now working for him would fulfill the greenbelt requirement; SW confirmed that this is okay.
Starwoodone Portal
The minimal increase is due to the increase in content, applications and functionality of the Portal.
Smith Travel – SW explained there is a 22% cost increase this year. Rates not increased over the past few years. Optional New fees
Centralized Revenue Management

John Shingler shared his opinion of the high value of this program.  Previously skeptical owners are now singing the praises of the benefits of Revenue management.
Optional Increased fees
Decrease in GSI/MPSI fees - This announcement was enthusiastically received by the Franchise community.
Miscellaneous/Final Comments
TO ASFONA MEMBERS
Those ASFONA members who would like to receive more detailed specific information on any of the above items should contact John Shingler directly at johnshingler@asfona.com or 619-756-2424


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