In an interview with Invest:, Jesse Martinez, former general manager at the Alfond Inn, discussed the hotel’s expansion, technological advancements, and strategies for staff retention. He highlighted the evolving hospitality landscape and the inn’s prospects.
Over the last year, what have been some highlights and achievements for The Alfond Inn?
In the past two years, we’ve started a new chapter with an expansion. We’ve added 71 rooms, bringing our total to 183. Additionally, we expanded our meeting space by 3,500 square feet, totaling around 23,000 square feet indoors and outdoors. We also introduced a new café and, most notably, completed a beautiful spa with seven treatment rooms, an amenity deck, and an exclusive area for our guests.
With the major expansion, how has the project contributed to the company’s growth and the local economy?
Our local community has been 110% supportive of The Alfond Inn. Due to high occupancy rates in the seven years before COVID-19, we knew expansion was necessary. Winter Park needed more hotel inventory at that time. Nearby, there’s a Hilton Garden Inn and a Marriott Courtyard, but we needed more. The expansion was initially halted due to COVID-19 and financial constraints as a college owns us. Once we resumed in 2021, the project, though challenging, was a collaborative effort with our general contractor. We managed to keep the hotel operational during the construction.
We recently launched the spa and have all rooms and spaces operational. The community response has been positive. Our occupancy rate is healthy at around 80% for 183 rooms, compared to 90% for 112 rooms previously. We aim to increase this slightly to meet our aggressive budget projections. We’re still assessing the impact of our new facilities, such as the café, spa, and meeting spaces.
Our marketing and social media efforts have intensified. To optimize our operations, we’ve added high-level positions, including an in-house marketing manager. With continued support from the community and Central Florida, we’ll be in a strong position in the next six months.
What have been some major changes in the industry over the past year?
Being heavily involved in the tourism community, I regularly connect with regional general managers, owners, and asset managers to understand the market dynamics. We’re located in Winter Park, north of downtown, which sets us apart from the areas around International Drive, Disney, and Universal. Our offering is a unique experience compared to these locations.
Post-COVID, we observed a significant pent-up demand for tourism. When it was unleashed, it was overwhelming, like a “herd of elephants.” This surge caught the hospitality industry in Central Florida somewhat off guard, primarily due to staffing challenges. We welcomed a large influx of guests, especially from closed states or states less open to tourism.
As we move forward, we notice that occupancy rates are stabilizing, and the ADR isn’t as high as previously, including on the coasts. Occupancy in Central Florida is leveling off, but it’s important to remember that we are still the number one travel destination in the United States. So, when I say ‘leveling off,’ it’s relative to the highest levels in the country.
Competition is now more about adjusting ADRs. There’s a consideration of whether everyone will lower their ADRs or stay within their market segments. We continue to aim high in the luxury segment where we operate. We offer a unique experience, and there’s still a market for it in business and leisure travel. We plan to continue running business as usual, catering to those who can afford our services.
What technological advancements within the hospitality sector are being implemented at The Alfond Inn?
Technology is crucial in today’s world. At The Alfond Inn, we’ve embraced this by introducing amenities like smart TVs that allow guests to cast their favorite shows from Netflix and Hulu using their phones. This feature is becoming a necessity in hotels.
We’re also exploring tablet-based room controls. Robotics is another area we’re interested in, such as robots delivering items like toothpaste to guest rooms. However, this technology is expensive and may only suit some settings.
While I recognize the importance of technology, I believe in the irreplaceable value of human interaction, especially in luxury hotels. Guests paying premium prices expect a personalized VIP experience, which robots can’t provide.
Another trend we’re focusing on is sustainability. We’ve eliminated plastic products, opting for paper or plant-based alternatives. We’ve installed new water stations on each floor and are considering sustainable aluminum water bottles for guests to use and take home. These efforts align with our goal to be environmentally friendly.
How are you hiring and retaining staff, and how does your company culture play a role in this?
Our staffing situation has improved significantly. However, the housekeeping department remains challenging. We still rely on third-party staffing for the housekeeping department. We’ve found recruiting individuals who are willing to do tasks like making beds and cleaning toilets to be difficult.
Overall, every department is doing well, and we’re close to overcoming our staffing concerns. Our strategy has been to sell our brand and culture, emphasizing the value and uniqueness of each role. Our staff isn’t just doing a job; they’re part of a family and contribute to our mission. We highlight the uniqueness of working in one of Florida’s most historic cities and being part of a living museum.
Flexibility has been key in attracting and retaining staff. Considering factors like transportation, we’ve moved away from traditional shift patterns to accommodate individual needs. By sharing our story and culture, we’ve attracted more people who align with our values than some other hotels might.
What is your outlook for The Alfond Inn over the next one to two years?
Our outlook is very positive as we enter our next chapter with the additional rooms and amenities. Over the past decade, The Alfond Inn has become iconic, recognized by Travel and Leisure as a top 500 world destination, and received accolades from World News and Report and Conde Nast. This recognition has given us validity and helped us tell our story, making us well-known and respected.
With our expanded meeting space, we can now accommodate larger groups, leading to more extended stays and attracting a different clientele, particularly in the major group and corporate sectors. The outlook is extremely promising. The exceptional service provided by our staff will continue to showcase our capabilities and make us the right choice for those visiting the north side of Orlando.
