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1. The Arizona Republic
April 8, 2006
Scottsdale firm finds lodging niche
Firm hones
art of deal LODGING
in lodging continued from D1
Since starting up in 2002, the firm has
seen revenue rise from $2.9 million in its
first year to $39.4 million last year. it an-
By Stephanie Paterik
ticipates it will haul in $52 million by the
The ArizonA rePuBlic
end of this year.
When Jan underwood pro- Joe Forster and Bill Kilburg launched
motes the new Sheraton Phoe- the company after working together at
nix Downtown hotel, she the Scottsdale Plaza resort in the 1990s.
knows she is not selling only to Tired of making their bosses rich, they
groups. decided to use their experience to start
She has to win over the mid- a company that would be the liaison be-
dlemen. tween hotels and groups.
About 11 percent of all meet-
Personalized service
ings nationally are booked
through third-party meeting- There are larger firms out there. hospi-
procurement companies that tality Performance network has 52 sales
help groups find the ideal loca- associates spread throughout the country
tion and hammer out a fair con- and doesn’t want to grow beyond 125.
tract with the hotel. Forster said the size makes the compa-
These companies play a siz- ny an exclusive place to work and fosters
able role in putting heads on personalized service for clients.
beds when you consider that Most of the company’s independent
the meeting industry gener- contractors worked in hotels and know
ates $67 billion in gross annual how to cut a good deal with their former
room revenue. colleagues, Kilburg said.
one of those up-and-coming “our prime recruit is someone who is
middlemen is homegrown hos- bound by the restrictions of working in
pitality Performance network the hotel industry and misses their kids
of Scottsdale. and events,” he said.“What we allow them
to do is become their own entrepre-
See LODGING Page D6 neur.”
‘Almost virtual’ business
Forster describes the business as “al- MiKe ryneArSon/The ArizonA rePuBlic
most virtual.” Some employees work in co-owners Joe Forster and Bill Kilburg set a casual tone at hospitality Performance network
in Scottsdale and strive to allow their employees to be their own entrepreneurs.
the office, but many work from home or
on the road and set their hours.The exec-
utives wear flip-flops and Tommy Bahama cent to 20 percent lower than groups extra incentives hotels offer sales assocates.
shirts to keep the atmosphere casual. could negotiate on their own, and groups Forster said the big challenge today is
hospitality Performance network of- pay no fee for the service. hPn does convincing groups to book early. When
fers hotels as many as 30 leads a week charge for meeting planning, including business travel ground to a halt after
and already has supplied a few to the arranging rental cars or theme parties. Sept. 11, 2001, groups could find conven-
1,000-room downtown Sheraton, which The sales associates become experts tion space six months in advance. now,
will open in 2008 and exist almost en- in the world’s hotels. if a group is looking hotels are filling up 12 to 18 months in
tirely for convention business. for a four-star property with 1,000 rooms advance.
“We really do try to build strategic part- by a beach, wireless internet access and While business is good, Kilburg said
nerships with (hPn),” said underwood, a gourmet menu, hospitality Perform- there is room to grow.
group sales director for the hotel. “Most ance network will suggest a good fit. “i look at the industry and see only 11
of them come from within our industry, it has funneled business to 500 to 600 percent of groups are serviced by a third
so they have built a bond with customers. properties. party,” he said. “i don’t want to say our
They know the ins and outs of the hotel growth is limitless, but it’s still got a lot of
Keeping business honest
business and try to negotiate on their cus- legs.”
tomers’ behalf.” Favoritism is a hazard of the industry. Reach the reporter at
hospitality Performance network hospitality Performance network said it stephanie.paterik@arizona
leverages its business to get rates 12 per keeps its business honest by refusing the republic.com or (602) 444-7343.