Table of Contents
About Kimpton Hotel GroupEvery Hotel Tells a Story
Overview: New Product Development Process
In Depth look at every stepPost Launch Review – What did we
learn?
Kimpton Hotels
Kimpton Brand Focus - Kimpton MomentsKimpton Strives to be the Best Loved
Hotel Company
For our guests: Our mission is to create an emotional connection with every one of our guests; to deliver highly personalized service across our entire collection of hotels and through our marketing efforts.
About Kimpton Hotels
Founded in 1981 by Bill Kimpton Innovative and Creative Management TeamKimpton CaresKimpton EarthCare ProgramComplimentary Evening Hosted Wine ReceptionKimpton in Touch – Guest Loyalty ProgramSignature Elements: Care, Comfort, Style,
Flavor, and FUNThe Future of Kimpton Hotels
Every Hotel Tells a Story
What is a story?– Stories are an encapsulation of an experience– Pictures are worth a 1,000 words but stories live forever
Why do our hotels tell a story?– Differentiated product that delivers unique benefits– Create an intimate connection with guests
A hotel’s story– Hotel Vintage Park Seattle – Washington Wine– Marlowe in Boston - Discovery
I coulda been a
contender
Lights, Camera, Action
Show me the
money
All right Mr. DeMille, I’m ready for my
closeup
You can’t handle the
truth
Houston we
have . . .
Testing 1, 2, 3
Give ‘em the old razzle
dazzle
New Product Development Process
New Hotel: Ground UpWhen you come to a fork in the
road, take it
Ideation/Discovery Stage#1 Success factor is a unique superior productProduct innovation is a processKimpton Hotels is known as #1 boutique hotel Voice of customer – focus groups
– We know the basics– Deliver what the guest wants before they know they
want it
Creation of Idea Bank– Hotel Story and Concepts– Amenities, Design, Gidgets and Gadgets, Buzzzzz– Competitive Set Hotels, Trade Shows, Suppliers
Screen 1 - IdeasI coulda been a contender
Fit our vision and goals– Room keys– Type of Project
Can the market support our style of hotel– Smith Travel Research Report (STR)
Market Assessment– Location in relation to competitive set– Concept elimination− Danger: “If we build it they will come” philosophy
Act 1 - ScopingLights, Camera, Action
More in depth or preliminary market research– Smith Travel Research Report (competitive set)– Previous market success = lower market risk
profile– SWOT Analysis immediate competitive set– Industry contacts, friends, counterparts
Analysis of business partners– Experience in the market– Quality of project sponsorship– Strategic Alliances with developerAvailability of capital
– Capital financial equity partners – Feasibility study on return and risk assessment
Screen 2 - ViabilityAll right Mr. DeMille, I’m ready for my closeup
Cross Functional Team
- Home Office VP Revenue, Sales, Engineering, IT, Operations
Take 2 – now that we know more re-analyze Screen 1
Verify with Legal that everything is okay and to codePrioritized Scored List of Projects (Q-Sort)Risk Reward Bubble Diagram
Screen 2 - Viability
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
0246810
Reward (NPV)
Prob
ability of S
ucce
ss
Pearls
Oysters
Bread and Butter
London, UK
Chicago, IL
Low
High
White Elephant
New York, NY
Maui, HI
Hell, MT
Charlotte, NC
Miami, FL
Risk Reward Bubble Diagram
Act 2 - Build a Business CaseWhen you come to a fork in the road, take it
22% of failed projects had no detailed market study
Cost of project - Contractor price out as favor
Entitlement of the site; create “envelope” of project
Start schematic planning
Preliminary design and Performa with operationSWOT and market analysis (convention space,
development, etc)
Create the story- The single strongest predictor of investment value is “degree of innovativeness of the company”
- The single strongest predictor of investment value is “degree of innovativeness of the company”
Screen 3 - Go to Development Show me the money
Cross Functional Team– Regional Director Revenue, Sales, Engineering, IT,
Operations
Review Results of market analysisReview Preliminary operations and marketing plansMust Meet Questionnaire (pre-developed)Ratio and balance between risk and returnSign off and presentation to CEO, COO, and CFO
Total Company Commitment and Buy InPresentation to potential financial partners
Act 3 – Development Give ‘em the old razzle dazzle
Fast paced parallel processingConstruction/Development
– Creation of Model Room> Cross functional team reveiw> Punchlist of items> Measurements, functionality, design
Strategery and other funness – Hire Director of Sales and Marketing– Create Marketing Plan– Regional Director of Revenue– Develop detailed budget and market projections
Milestones and periodic project reviewsDetailed Checklist with due dates and action items
Screen 4 - Go to testingTesting 1, 2, 3
Cross Functional Regional Level Team analysis- Product functionality, marketing plan, strategies
- Ask the question: “Did we do this right”- Revised Financials in line with original goals
- Compare to original criteria and plan- Verify market place expectations unchanged
65% of projects do not include a pre-launch business analysisComplete site walk through by:
–Designer, Project Manager, Director - Hotel Openings
Alpha Testing – Current management spends night in room
Act 4 - Testing and ValidationYou can’t handle the truth
Beta Testing – complete questionnaireInner Circle Members complete a predetermined
questionnaire– Include price sensitive questions/interest to purchase– Weighted scores on usability/functionality of amenities
Opening Hotel Team– Selected manager’s from around country come in to help– Role play with new staff; intense training; Kimpton
CheerleadersHotel story in place?Kimpton Service Standards in place?
Screen 5 - Go to Launch Houston we have . . .
Final review of:– Marketing Plan, Business Strategies/Tactics– Rate structures, Pricing strategies– System integrations– E-Channel content and visibility
CEO, COO, and CFO complete site walk through and visit
Kill Criteria – Lobby and public space are 100% complete− Living room and stage have to be set
before guests can arrive
Coyle Report Scores
Watchlist Performance Hotel Call
New Project Conference Call
Smith Travel Reports (RevPAR Index)
Employee Satisfaction Survey
Guest Service Surveys (Sterling Report) New Project review Questionnaire