A Personal Autograph at The Algonquin St. Andrews

As a child, I spent my summers in Saint John, New Brunswick. The highlight of my family’s 10-week stay was a 90-minute car ride south to St. Andrews by the Sea on the Bay of Fundy, where the grand Algonquin Resort beckoned (no relation to the Algonquin Hotel in New York City). For the 99% of readers who have never visited or heard of this property, the Algonquin was a Fairmont property of historic proportions.

A visit to the property just after its 100th anniversary in the 1990s was less than inspiring, though. Old and faded, it reminded me of the scenes from “The Grand Budapest Hotel” depicting a luxurious property’s fall from grace after years of neglect. While a new, lavish wing was added, the main building was tired at best.

Less than a decade ago, New Castle Hotels & Resorts (based out of Shelton, Connecticut) took on the role of both investor and management firm. With a scheduled opening for spring 2014, I wanted to be among the first visitors to see for myself whether the “old lady” would have her renaissance. And indeed she has! The overall curb appeal remains unchanged; the Tudor style and colors are identical. The only noticeable difference on the exterior was the removal of the shuffleboard courts, replacing them with fire pits. No doubt, this is just one minor detail in the strategy of modernization.

Entering the lobby, there is no question this is a complete renewal. Moncur Design Associates of Toronto has accomplished a visual treat — modern yet still sporting the broad lines and casual feel of a summer ocean-side resort. Guestrooms at the hotel, which is part of Marriott’s Autograph Collection, were also treated to a full revitalization. In total, some $30 million was spent to revitalize this 233-room property, which, due to inflation, is many times the cost of the original 1889 construction.

It is not hard to spend money on a renovation. What is more challenging is finding a leader and team who can quickly complete the project and launch into peak season without cutting corners. Getting it right and aligning all staff and operations accordingly is no easy task.

Enter Tim Ostrem as general manager, who has the unique distinction of being the only person I know in hospitality management taller than me! My conversation with Tim focused on the challenges he has faced through this critical launch phase and the first year of operations.

Larry Mogelonsky: Why Marriott Autograph?

Tim Ostrem: The Autograph Collection allows us to take the best of the Marriott system yet maintain our own distinctive branding and identity. You only see the word “Autograph” on a plaque in the entranceway. This ensures that our guests establish a close relationship with us. At the same time, we enjoy all of the benefits of Marriott’s reservation system, distribution network and, importantly, their recognition as a group segment leader. I might add that they have been a tremendous supporter to us during the opening.

LM: How important is the convention segment to the business mix?

TO: Groups are vital, as we plan to be a 12-month resort. The challenge is not to fill the hotel from May through October. Rather, and where groups will be critical, is the period from November through April. This property used to be a seasonal operation, necessitated by the lack of adequate HVAC systems and 100-plus-year-old insulation. We know the challenge that is facing us, and the Marriott support system — as well as intensive sales efforts to local corporate and regional government — will be critical.

LM: This property was closed for well over a year, and your team is being built from scratch.

TO: True! The advantage we have is that New Castle has a wide range of properties from which we were able to draw some key team leaders. It is refreshing that the local talent pool is surprisingly strong, yet at the same time our trainers really have their hands full. Admittedly, our first few days were a bit dicey, but our initial groups and visitors recognize that we are in startup mode, and the TripAdvisor and direct feedback has been nothing short of exceptional. This is a continual process, and I cannot overstate how important this is given our 4-star-plus guest requirements.

LM: What advice can you give other developers planning their own launch?

TO: Expect the unexpected. Be prepared for some long nights and keep in physical shape, as you might be lifting furniture into guestrooms the day prior to guest arrivals. Inspect things yourself. Be a problem solver rather than a blame pointer. Encourage your team to take action and learn by doing. And oh yes, keep a change of clothes in the office to greet guests.

LM: What about advice from an ownership-relations perspective?

TO: Keep owners abreast of what is happening so that there are no surprises. Share information with everyone so that there is zero communications breakdown. Never decline offers of support. Keep your RevPAR projections on the light side — that is, don’t overcommit. Focus on the successes, recognize the challenges and act on the proposed solutions. Remember, a property launch is more about establishing processes than immediate numerical success.

(Article published by Larry Mogelonsky in HOTELSmag on September 23, 2014)


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