Thank you Chip!

This past week I had the pleasure of hosting my friend Chip Conley and his partner Donald at The One Hotel. I have known Chip through our weekly basketball days in the Castro dating back more than a decade. In addition to being a good basketball player, Chip is my hotel idol in that he has built his company Joie de Vivre from one hotel into a 38 boutique hotel empire, the second largest boutique hotel company in the world. While I moved to SE Asia about seven years ago, I have tried to keep in contact with Chip and get together with him for a coffee when I am in San Francisco. Chip has always been so helpful and generous in that regard.

Now that I have my own two hotels, I was delighted but a bit nervous about Chip coming to visit. I should not have been as he, Donald and myself had a wonderful time together. I had only met Donald briefly about eight years ago so it was a pleasure to get to know him better. But, best of all, through re-connecting with Chip it has made me take a good hard look our business and how we can get better. For Christmas of 2007 my brother Alan gave me Chip's book:

Peak: How Great Companies Get Their Mojo From Maslow.

As I told Chip, no offense, but I had not yet read the book. Why? Well, quite frankly I have read very little during this time, maybe less than ten books. How pathetic of me! Also I was a bit too wrapped up in our business and not taking the time to step back and do some assessments. I asked Chip to autograph the book and after he and Donald left I read the inscription and was really touched by what Chip wrote about how we had created a Peak experience in Siem Reap, Cambodia. But, while I am happy with what we have accomplished, I always knew we had to keep pushing ourselves to be better, to be innovative and to provide even more to our guests. Then I began to read Chip's book and I was amazed. Everything I could have hoped for to help us in this book. I feel re-energized, re-invigorated and ready to work with my team towards reaching more Peaks in our business. So, more on that to come but for now: Thank you Chip!

Getting The Best Price

I thought that I had written about this earlier, but I guess not. And it is a good follow-up to my last post about the economic crisis ending soon. In response to the failing economy, I knew this low season (April to September) was going to be a challenge. With just a one room hotel we have never really felt the need to discount, except for last minute bookings within 10 days of arrival. And we purposely priced Hotel Be affordably so again not a great need to slash our prices. But, seeing that low season was going to be difficult we came up with a couple of strategies to offer a great value to our guests. We introduced a two night Quick Break package that was less than two nights at our regular rate but also included a bottle of wine and 60 minute massage for two. Then, we added a "Pay Three Nights Get The Fourth Night Free" deal. I am happy to say that both packages have been well received and I enjoy the fact that we are showing our appreciation and determination to get guests by giving them a good deal. Again, I always thought we were a good value before but during this low season we are an even better value. And, today I read on MSNBC that haggling is now in. To which I say, no problem! We will always offer the best deal available for the dates requested. Just today we received a request for a three night stay in May. Of course I could have easily quoted them the our normal price for three nights but instead offered them our two night Quick Break package with an add on third night. The way I look at it is, I am a consumer too and I would rather get the best offer up front rather than having to haggle or worry that I could have gotten a better deal. Then again, with a one room hotel and a three room hotel that are both well priced, we do not need to discount much. After all, what most hotels do is come up with their "rack rate" which almost no one ever pays because they can find many other ways to book a cheaper room. Even though I spent 20 years in that side of the hotel business, I do not subscribe to that theory. I prefer to come up with what I think is a fair price and then, when warranted, offer discounts as needed (especially if you are calling to book a room for the next day and we have availability). And, let us add on something else of value for the same great price and everyone is happy. Hope to see you soon!

It Is Over (At Least That Is My Hope)

As I said in the last post, the challenges of the Siem Reap infrastructure are difficult but we have met every challenge. After all, it is not rocket science is it? That is what keeps us going and keeps us addressing our guest's needs.

I say it is over, and what is that exactly? I believe the US recession has hit the bottom already and is on the slow climb back up. And that will be followed soon by the global economy. Why do I believe that, given that we had a terrible night of sales at Linga Bar and only one room occupied in our hotels. Well, I say that because this has been going on for nearly two years, and then the meltdown of last September and October has passed. I feel like our guests have seen the worst and our continuing to carry on with their lives. I feel this because I have talked to and met our last few guests and they echo that sentiment. Actually, the last guest of The One Hotel consisted of an employed real estate lawyer and an unemployed spouse. We gave them a great deal at The One Hotel and they loved their stay.

I say the global recession is soon to be over but we may not feel it real terms for another month or two but this is the most optimistic I have felt in more than six months. After all, we have to get on with our lives and enjoy it to the fullest, right? Of course, this is a result of the efforts of the Obama administration since taking office. I can not say enough good things about him: he is thoughtful, competent, inclusive, deliberative, etc. And the renewal of America's standing with the world is a great thing to see happen. We will get through this, and be stronger for it I hope.

Now, all we need is for you to book a room or stop by Linga for a drink. We hope to see you soon!

PS - As I have written before, there are plenty of great ways to get to Cambodia without going through Bangkok or Thailand so don't let their political dramas deter you. We are even getting guests that fly directly from the US to Siem Reap (via Seoul) which has been nice to see.