The Ultimate Takeover
Author: Carolyn Koenig
March 2008
Features
Move over, Microsoft: Buyouts can be fun
Last summer, Jennifer Maka, trade show and event manager for Synplicity in Sunnyvale, Calif., spent a solid two weeks researching and planning a worldwide sales conference for 103 attendees. The group included more than 50 international delegates, and she also needed a site that was attentive to their particular needs and comfort, including various dietary considerations and the availability of late-night room service. She narrowed down the destination to the Napa wine country, choosing The Carneros Inn over a national brand. “The other hotel was larger and could accommodate our numbers,” she says, “but we preferred to be the full focus.” Satisfied with her choice, the planner committed to a buyout of the property—a course of action she had to justify to her executive staff prior to going and, with great results, at the conclusion.
Maka’s decision to opt for a buyout reflects a growing trend that provides groups with the full attention of the staff, but also offers unlimited flexibility and creativity. For the hotels, they’re guaranteed room nights on the books, a not inconsiderable factor given the uncertainty of today’s economy. At the same time, you may find more properties open to the idea than in the past, and more willing to work with you on the terms.
But is a buyout right for your group? “You have to have the right size for the group, the right fit, the right caliber, a chemistry that makes it happen—like dating,” says Julie Baker, director of sales for the Calistoga Ranch, a 46-room Auberge Resort, also in the Napa Valley, that welcomes group buyouts.
We’ve taken a look at the pros and cons of the concept to help you make that decision. You may find it’s your best meeting yet.
WHY BUY?
Perhaps the most critical reason is the element of exclusivity. “Buyouts provide an exclusive environment to meet your business objectives,” says David Gabri, president and CEO of Associated Luxury Hotels International (ALHI). “Delegates only interface with a common purpose. They keep groups on a common plane.” This is true whether you’ve got an incentive, a sales seminar, a corporate retreat or an educational conference.
Buyouts work around your own agenda, as well. When you book at Alisal Guest Ranch and Resort near Solvang, Calif., for instance, “The ranch becomes yours,” says Sherrie FitzGerald, director of sales and marketing. “Some rules go out the door, because you’re not infringing on any other guests.” Want to go horseback riding at 11 a.m. and the scheduled group ride would be at 8 a.m.? No problem. No coats in the dining room? Take ’em off. Want to erect a tent on the property? A-OK with a buyout. A case in point: According to FitzGerald, when CBC Steel Buildings in Lathrop, Calif., brought a group to the Alisal in January, it was almost like a trade show. They brought in their top vendors and erected a tent in the grassy area near the guest rooms where the company’s products were displayed for the length of the meeting and attendees could browse at their leisure.
The possibility of utilizing venues creatively is another “pro”—from chef-time in the kitchen to, as Maka reports, grape-stomping (through Adventure Tours at The Carneros) on the lawn. You can go all out with decor and signage, with no potential complaints from leisure guests.
One caution: While takeovers generally encompass complete usage of a location’s meeting facilities, guest rooms and banquet facilities, if you’re interested in other, nontraditional areas, it’s best to get that understood from the get-go.
LOCATION, LOCATION
Smaller groups often gravitate to smaller, boutique properties—that’s a given. “There’s a sense of place,” Baker says. “And you don’t have to worry about how you will impact the rest of the guests.”
ALHI’s “Elite Retreat Buyout” program is available across a variety of the properties they represent, from La Posada de Santa Fe Resort & Spa in New Mexico to The Peaks Resort & Golden Door Spa in the Colorado Rockies and Sun Valley Resort in Idaho.
But the parameters of a buyout aren’t limited to one entire entity. Another option is to book a separate “cluster, wing or building” area for a group, Gabri says. Think of Turtle Bay in Hawaii, he says, where you can buy out the villas and own that whole section of the resort.
Or, try the “hotel within a hotel,” the hot new trend that’s springing up throughout the West, in places like Las Vegas, Los Angeles and Denver.
DOLLARS AND SENSE
Price is always the big question: Do buyouts cost more or less? Planners “shouldn’t be looking for a super deal,” according to Gabri. But, he adds, “Generally speaking, hotels absorb some of the costs on both sides of the buyout as they develop the business.”
Budget was a major concern for Synplicity’s Maka. “Moving up from the [national brand] to Carneros Inn was a big jump, but we were going to get our money’s worth,” she says. “I had to prove that [to the executive staff] with just the proposal.” So, the planner approached the resort after doing all her detailed analysis and prep work; in turn, the hotel “gave us a lot for our money. They made our numbers work, and didn’t make us look like we were skimping. We got first-class accommodations, food and service.” At the end, “all the numbers they committed to held true; there were no markups or hidden costs. They abided by it,” she adds. And although only two of her attendees scheduled use of it, room service was available until 1 a.m.
Some properties offer buyout packages, which make it easier to know up front what the bottom line is. Alisal offers three packages, all of which include their entire complement of 73 guest studios and suite accommodations. The basic package for the 10,000-acre resort also includes a Western-style outdoor barbecue, breakfast horseback ride, gourmet dinner and unlimited golf, boating and fishing. The premium version also features additional amenities and team-building activities, plus a winemaker dinner (a treat, as Alisal is located in Santa Barbara’s well-regarded wine country).
There are other ways to trim costs as well. Just like arranging a standard meeting, booking during off-peak or off-season dates is a money-saver. Buyouts over a weekend are tough; midweek times are better, says Alisal’s FitzGerald.
And, depending on the type of property you’re working with, Maka says of her experience, transportation costs can go down and you can put your attendees in a nicer room.
OTHER CHALLENGES
One major challenge of buyouts, says Calistoga Ranch’s Baker, is that you’re booking far out (typically nine months to a year), and you need to be willing to take a risk with the rooms. “Your numbers may fluctuate, and if you lose people, you are still on the hook.” But there are those groups that say “I want the whole thing” and are willing to pay for it, she says.
Conversely, if you’ve bought out the property and the meeting becomes so popular that you need additional rooms, squeezing in extra attendees might not be possible.
Restaurant and spa charges can become an issue as well. Restaurants often depend on hotel guests (and outside diners) to fill their tables and peruse their wine list. Spas may open their treatment rooms to the public and hotel guests (and, in the case of condo-tels, owners). You will need to negotiate your F&B minimum—and if your program doesn’t include spa treatments—a spa minimum as well. For example, The Lodge & Spa at Cordillera, a RockResort near Vail, Colo., has a world-class spa that derives a good portion of their business from hotel guests; the resort requires a spa minimum depending on “your overall needs and the time of year.”
“If you’re buying out the place, the rest of the facilities will be under-utilized. That goes into consideration when calculating the cost,” Gabri says. “It takes mature deliberation between planner and property, often bringing into play the general manager and director of sales, so there are no surprises.”
Remember that providing your attendees with a variety of venues while on-site can make or break a buyout experience. Two days of PowerPoint meetings in a standard ballroom can make your attendees “feel like they’re being punished,” Maka says. It’s essential that you do a site visit, rather than view a web video, to discover all the interesting and unusual places to hold receptions, breaks and other activities, such as team-building.
With so many properties in the West to choose from, meeting professionals can find an ideal spot for their ultimate takeover. “It’s all about your vision. We’re focused on you, who you are, and what you’re doing,” says Baker, of Calistoga Ranch. And that’s the whole idea.
RESOURCES
The Alisal Guest Ranch and Golf Resort
alisal.com
73 cottages/up to 200 people
Situated on 10,000 acres. Fifty miles of riding trails, a hundred-acre spring-fed lake for fishing, two 18-hole championship golf courses.
Associated Luxury Hotels International
alhi.com
Represents a diverse luxury portfolio of more than 80,000 rooms and suites and more than 9 million sq. ft. of meeting space. Twelve national sales offices.
Calistoga Ranch
calistogaranch.com
46 rms/6,724 sq. ft.
Located on 157 acres in a private canyon in the Upper Napa Valley. Wine cave, Creekside Clubhouse.
The Carneros Inn
thecarnerosinn.com
86 rms/5,000 sq. ft.
Unique resort set amid acres of lush vineyards and orchards in the Carneros wine region near San Francisco.
La Posada de Santa Fe Resort & Spa
laposada.rockresorts.com
157 rms; up to 200 people
Six-acre resort in the heart of Santa Fe; full-service spa.
The Lodge & Spa at Cordillera
cordillera.rockresorts.com
56 rms/2,700 sq. ft.
Chateau-style retreat on a private mountaintop. Four golf courses, Nordic Center, European-style spa.
Turtle Bay Resort
turtlebayresort.com
443 rms/31,000 sq. ft.
Exclusive resort on 880 acres on Oahu’s North Shore. Pacific Rim Conference Center.
