Roll Out Of Certification Program Spotlights Eventful HMBA Confab
by Jeff Wilder
Reprinted from Advanstar's Hotel & Motel Management Magazine
I've traditionally kicked off my yearly series of columns with a report on the Hotel & Motel Brokers of America's annual conference. I enjoy that tradition, so here's the column.
This year's meeting, held in late January in sunny Cancun, Mexico, was so substantive that it's hard to know where to begin. Perhaps an overview of the excellent service that these elite hotel brokers bring to the lodging industry might provide a jump-off point.
During 1993, HMBA brokers closed more that $400 million in hotel sales representing in excess of 200 transactions. It is easy to understand why senior executives of industry leaders such as Cooper & Lybrand, Holiday Inn, Choice Hotels, PMC Capital, Hostmark Management and Interstate Hotels were all drawn to speak to the organization's brokers.
The business sessions brought home the clear message that debt capital was beginning to flow; that equity capital is chasing deals; that prices are slowly but perceptibly beginning to rise; that occupancies are improving though ADR's were only grudgingly advancing; and that, to a man, everyone felt the lodging industry was poised for a profitable decade of growth.
Exciting News
However, unquestionably the most exciting news at the conference was made by the HMBA board of directors, which announced the birth of the Certified Broker Program. This program is meant to assure the lodging-investment public that when they use an HMBA broker, they're dealing with a "pro's pro." To qualify for CHB certification, HMBA brokers must undergo a rigorous 70-hours course study, attend continuing education programs, attain certain levels of brokerage achievement and provide ongoing service to the lodging industry.
The CHB program, developed by the University of Texas in conjunction with HMBA executives, is the product of close to two years of intensive study and development. The University of Texas was chosen over five other nationally recognized colleges because of its instructors, and its background in real estate and management. Top HMBA brokers will also provide instruction and guidance to certification program participants.It is the HMBA's purpose to drive and maintain its members' hotel-brokerage skills to the top level of industry excellence. Of course, many members of HMBA are recognized as high-quality brokers, but the standard of excellence achieved through enhanced educational opportunities will surely be appreciated by principals and brokers alike. Everyone learns something new and useful in such a cross-pollinating environment.
- information technology and hotel brokerage;
- economics of the lodging industry;
- hotel investment analysis;
- sales strategies;
- marketing plans and hotel packages.
Those of you who are not involved in lodging-property deal-making on a regular basis may find it hard to appreciate the escalating premium placed on professionalism and effectiveness that this market demands. When I first started doing brokerage, the salesman of hotels did a two-page set-up, attached a hotel brochure and mailed it to 10 to 15 buyers. Today, it is universally recognized that property presentations must provide far more detailed descriptions of local market conditions, franchise options, upgrading needs, ADA and environmental report summaries and appropriate financial data. And that is just the beginning.
Most brokers have hundreds of principal and co-broker contracts to call on when serving a seller's needs. The information on each client must be stored, recalled and manipulated so that it can provide a powerful tool in marketing a property. Clients and customers must be able to be contacted by phone or fax. Only the most facile users of computer programs can hope to compete in the lodging-brokerage industry of tomorrow.
The Certified Hotel Broker designation that will be awarded to experience HMBA brokers upon completion of the CHB Program education modules will become a recognized seal of expertise that clients and customers of tomorrow will come to appreciate and value.