NEW YORK—Less than a month into her new job as president of Preferred Hotel Group, Lindsey Ueberroth has big plans for growth in the number of member hotels, global sales offices and consumer awareness.
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Lindsey Ueberroth |
Ueberroth succeeded her mother, Gail Ueberroth, who will continue in her role as chief marketing officer and become vice-chair; Preferred is a family-owned company headed by Lindsey’s father, CEO John Ueberroth. She had been serving as executive VP. PHG is a marketing and sales group for independent hotels that comprises these brands: Preferred Hotels & Resorts, Preferred Boutique, Summit Hotels & Resorts, Sterling Hotels, and Historic Hotels of America. It has more than 800 hotels in more than 75 countries.
In a wide-ranging media talk on Tuesday in New York, Ueberroth covered the following areas:
Growth
• Preferred is aiming to grow across all its brands—with an immediate goal of 1,000 hotels. Ueberroth believes that rapid growth is sustainable because there are so many brands. She said the company wants to have more hotels in “underserved markets” such as San Francisco and Los Angeles—and to have more brands in locations where there is just one or two. Emerging markets are a hotbed of growth; member hotels in Africa have grown from just three to 32 in the last year or so. Currently, a third of the members are in North America, a third in Europe and a third in emerging markets.
• The company has 29 sales offices, but will open more as necessary to support regional growth. An office will open soon in China, a destination where “We have spent a lot of money to come up with a name; the word ‘preferred’ does not mean anything there,” Ueberroth said.
• The company is open to acquiring or creating more brands, which would be in niche segments, like Historical Hotels of America.
• For the first time, Preferred will accept unopened hotels as members.
• While sales are key to Preferred’s mission, the company wants to broaden its portfolio to include purchasing, revenue management and other operational services.
• The three-year old loyalty program, I Prefer, is on track to reach 1 million members. It is a recognition and benefits, rather than points, based program.
Brand Building
• There will be consumer advertising for the first time aimed at brand messaging rather than at messaging about corporate programs. The first ads are expected to launch in the fall.
Technology
• The company recently completed a transition from the Pegasus to Sabre reservations systems in an effort to achieve a broader and more comprehensive platform. Preferred is now Sabre’s largest hotel partner, Ueberroth said. The transition was challenging and she is “thrilled that it is over.”
• “Nobody is knocking it out of the park as far as social media,” Ueberroth said.
The Outlook
• Preferred weathered the economic storm pretty well, and Ueberroth was very optimistic early in the year, but is now cautiously optimistic after a weaker-than-expected April and May. However, group business came roaring back from March to May with some of the best numbers in the company’s history.
• Ueberroth does see new groups of independents like Marriott’s Autograph Collection as a threat, but Preferred’s contractual arrangements and experience put it in a stronger position, she said. Preferred has a 92 percent member retention rate.
• Ueberroth will focus on quality; the days of “brand stretch” are over and that each hotel must maintain the standards of its brand, she said.