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Branching Out

Interstate Hotels Continues Expansion With Focus On New Channels, Markets

Thursday, March 07, 2019
Steve Pike
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Michael Deitemeyer, President and CEO of Interstate Hotels & Resorts, has one goal in mind: Follow up a successful 2018 with a strong year in 2019.

“The global pipeline was robust for 2018 and shows significant projections for 2019, as Interstate continues to see healthy growth around the globe," Deitemeyer told Hotel Interactive®.

Under Deitemeyer’s leadership, Interstate Hotels & Resorts had an aggressive, three-pronged strategy in 2018 that focused on talent, global expansion and innovative product and program launches. Those initiatives helped Interstate Hotels & Resorts grow its portfolio. In particular, the company made strides in Continental Europe, where it established new regional office in Amsterdam, expanded management offerings in The Netherlands and Belgium and made its entry into France.

Currently, Interstate’s global portfolio represents 530 properties in 12 countries inclusive of a committed pipeline of signed hotels under construction or development around the world.

“We’re leveraging relationships to open new business channels--ones that Interstate hasn’t traditionally been active in," said Deitemeyer, who in 2017 returned to Interstate Hotels & Resorts (the company where he began his career) after 13 years as president of Omni Hotels & Resorts. “Having this big engine in the Interstate headquarters allows us to serve more verticals than ever before and serve them better than we have in the past. Our scale has advantages of economies in IT, procurement and back-of-the-house areas and our brand scale gives us tremendous leverage."

Interstate Hotels & Resorts this past summer moved its global headquarters to the trendy National Landing neighborhood of Arlington, VA.

“The new look and feel of Interstate is represented here with an innovative design that encourages collaboration and productivity, along with areas where associates can recharge, gather and celebrate," Deitemeyer said.

This past January, Interstate Hotels & Resorts signed a management agreement with New York City-based SCG America--the company leading the development of a new Le Méridien hotel in Orange County, CA. Construction is anticipated to commence later this year with the hotel slated to open in 2021.

That deal is part of Interstate’s strategy to grow its high-end hotel portfolio and follows Interstate’s two Westin hotel additions in Alexandria, VA and Portland, ME, as well as the historic Hill Top House Hotel luxury destination retreat project in Harpers Ferry, WV.

“Hill Top House Hotel is a unique, one-of-a-kind project, reimagining and reprogramming the original, grand Hill Top House Hotel for today’s times. It comes complete with the ultimate in food and beverage, wellness and recreational amenities, including premium meeting and catering spaces and world-class lodging and dining, making this a truly unique undertaking unlike any other," Deitemeyer said.

Interstate Hotels & Resort’s “culture of service," Deitemeyer said, continues to drive the company and its hotel owners.

“As part of Interstate’s evolution we are re-launching our core values to modernize them and also to bring everyone around these guiding principles. We are only as good as our talent and we’re investing in our people so we may hire and retain the very best in our industry. Our ability to work outside of our norms is a testament to our reputation and the relationships our team members have built with owners. People want our expertise and we’re ready to deliver for each vertical from select service to luxury and boutique to large meeting boxes to destination resorts.

“This approach is absolutely working. Right now, we’re approved to manage more than 50 brands in all different market segments with approval pending for even more. These opportunities open even more doors for us, which is exciting," he maintained.

Hotels that are grounded in the local market and excel at the basics, such as providing exceptional service, Deitemeyer believes, are the ones that are going to continue to be successful.

“Consumer preferences are changing, and quickly, but almost all travelers are looking to stay somewhere that’s plugged into the surrounding community and offers friendly service with hotel staff that can anticipate their needs. We feel a responsibility to be the best in every vertical and that has changed our hiring and our internal resources. It’s not just full and select, we are growing with lifestyle, luxury, resort, extended stay, and to be the best we need to be ahead with resources and talent," he concluded.
Steve Pike
Hotel Interactive® Editorial Division

Bio: Steve Pike is an award-winning golf writer and author who helped define golf business reporting in the early 1990s as the first Golf Business Editor for Golfweek magazine and later at Golf World and Golf Shop Operations magazines for Golf Digest. Pike further pioneered this genre at the PGA of America and Time Warner as the golf business writer and editor for PGA.com. He started in newspapers more than ...
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