Hotel Lawyer in Los Angeles: ALIS - What's the commotion all about? Closing the conference hotel to outsiders.
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By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
19 January 2012
Hotel lawyer in Los Angeles, looking at a new first in the hotel conference industry. The Americas Lodging Investment Summit or ALIS runs next week from Monday through Wednesday, January 23-25, 2012, at the JW Marriott in downtown Los Angeles. ALIS is one of the major annual hotel investment conferences and gets some of the best attendance in the industry. In 2012, it returns to Los Angeles after several years of being held in San Diego. It is always a great way to get a handle on what's happening in the hotel industry at the beginning of the year, and many of us look forward to it as a regular annual event.
However, this year, the conference is creating something of a stir with what seems to be an industry first. For several weeks, rumors have abounded that the conference promoter, BHN, has "bought out" all of the public space at the JW Marriott. The practical impact of this is that only people with ALIS Conference badges will be permitted in any of the public spaces at the conference hotel.
Today, I received an e-mail sent to all registered ALIS delegates. It confirmed the rumors. Among other things, this e-mail from the "Alice Registration Team" said the following:
Security will be tight at both the JW Marriott Hotel and Nokia Theatre. ALIS has secured all public areas at the JW Marriott Hotel beginning Monday, January 23. In order to access both venues, only registered ALIS delegates with ALIS name badge and picture ID will be granted admittance.
"Lobby Lizards" will NOT be admitted to the conference hotel! Is this an industry first?
In short, all of the "lobby lizards" that attend hotel conferences will be shut out. If you don't have a badge, you will not be able to get into the hotel's restaurant, bar, lobby, or any other public spaces.
I've been attending hotel conferences for at least 25 years and this is the first time I have ever heard of public spaces being closed to the general public. I would be curious to know if any of you have seen this procedure at any other industry conferences.
I believe it is the first in the hotel industry.
Why should "lobby lizard freeloaders" be able to take advantage?
There are certainly two sides to this issue. On the one hand, after producing JMBM's annual Meet the Money® conference for 22 years, we can certainly understand the concerns of the conference producers.
The hotel industry is gathered together under one roof for a few days only because the hotel conference is being produced there. A tremendous amount of time, effort and expense go in to producing a successful hotel conference.
Why should lobby lizard freeloaders be able to take advantage of this gathering without paying the price of admission to the conference? Isn't this like stealing from the conference producers? And the lobby lizard trend can become a death spiral. Everyone who sees all the freeloaders wonders why they bothered to "do the right thing" and pay the price. After all a $2,000 admission fee is a significant cost to meet with all the people that you already know or a few new ones you want to meet.
I suspect that in the last few weeks the ALIS conference has received hundreds of new registrations that would not otherwise have received if lobby lizards were permitted in the conference hotel. This is a lot of lost revenue that goes to support the AH&LA and line the pockets of BHN.
So isn't this a smart and innovative move by the ALIS conference producers?
Another side of the coin?
In our experience, there are several types of lobby lizard species. Some lobby lizards never pay to go to any conference and hang out for meetings during the entire conference. Some find themselves out of a job and go to the conferences as unemployed persons hoping to meet a few people for job prospects when they really don't have the money to buy a conference admission.
Some firms pay full registration for a number of their people, and then are joined by a few additional staff members for particular meetings or for the conference, however, the additional people never attend any of the conference sessions, receptions or other events. They just sit in on certain meetings with the registered colleagues -- often in a hospitality suite taken by the firm. Some people just "stop by" for a meeting or two when colleagues attending the conference give them a call because they're in town.
Are there different equities for these people, depending upon the situation? Isn't it an unfair imposition on registered delegates to make them leave the conference hotel if they want to meet with someone in Los Angeles who is not registered for the conference? How will they find a table or seat when they get back? Is it reasonable to make registered delegates spend an extra 30-60 minutes in attending an off-site meeting? Isn't there something a little offensive about taking control of an entire hotel - particularly when there are no other convenient (nearby) meeting places outside the hotel?
What's your opinion? We want to know!
If this move to stamp out lobby lizards is as financially successful as I guess it will be, this approach may soon become universal for all hotel conferences. The only thing that will stop it is broad public outcry that makes conference producers aware of other equities or consequences from their move.
I have never been a lobby lizard freeloader in my hotel lawyer career. I certainly have mused over the expenditure of $2,000 to attend the conference where I rarely go inside a live session. And it galls me that I pay the money while others don't.
Still, something seems a little too heavy-handed about this approach to stamping out lobby lizards. What do you think? We would really like to know!
Give us your thoughts by clicking on "Comments" at the bottom of the blog article, Hotel Lawyer in Los Angeles: ALIS - What's the commotion all about? Closing the conference hotel to outsiders. .
This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We've done more than $60 billion of hotel transactions and have developed innovative solutions to unlock value from hotels. Who's your hotel lawyer?
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Our Perspective. We represent hotel lenders, owners and investors. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,300 properties all over the world. For more information, please contact Jim Butler at jbutler@jmbm.com or +1 (310) 201-3526.
Jim Butler is a founding partner of JMBM, and Chairman of its Global Hospitality Group® and Chinese Investment Group™. Jim is one of the top hospitality attorneys in the world. GOOGLE "hotel lawyer" and you will see why.
Jim and his team are more than "just" great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them.
Comments
Wonderful information shared...I am very glad to read this article..thanks for giving us nice info. Fantastic walk through.I appreciate this post.
Posted by: Carry Gase | January 19, 2012 11:21 PM
I think this is a great idea of keeping the Lobby lizards away from your area and will not allow any kind of loss in all aspect
Posted by: Dacey | January 20, 2012 3:51 AM
Good discussion. It will be interesting to see how this turns out.
Posted by: Guy | January 20, 2012 10:09 AM
Jim,
Executives would prefer not to be called "lobby lizards" -- rather busy trans-continental executives who have only 2 hours to spend at the conference to meet others from north, south, east and west, then to offices in Dwtn, Century West, Hollywood and Santa Monica before hopping back on a plane. What about a parity of cost for a day in lieu of 3?
You can count on these ladies and gentlemen using ingenuity. Watch the flow when the gates open on Wednesday! At least for a nominal fee offer a dragon pin not a gecko. It's a thought..
Posted by: Jan | January 20, 2012 10:18 AM
They should offer "lobby lizard passes" for purchase at a discounted price. Or free with regular registration.
Posted by: Jay | January 20, 2012 11:15 AM
Outrageous!
I have attended every one of these conferneces for years. I will not now go to this one.
Posted by: Bernard S. Otis | January 20, 2012 12:35 PM
[Posted anonymously at request of sender]
First, I applaud and admire you for having the balls to call Burba out on his new policy.
Like you I see all sides of the issue. You gave a very balanced presentation, but come on there must be a better way to tighten controls over registration.
Times have been really tough for many the last few years and they still are. Being forced to register everyone in your company just so they can sit in the restaurant and talk to a handful of the thousands who attend ALIS is really outrageous, especially when you get hit with $150 an hour sur charge each hour on top of what ever you spend in F&B.
The last few years we have only been able to afford to register one person, and reserve a table in the restaurant so others on our team can drop in and meet clients. I did not attend any scheduled food events or one session the last 4 ALIS's but gladly paid for services rendered by the restaurant.
FYI, you know we deal with the same big companies you do and they all are as pissed off as we are.
The only lizard I think needs being stomped out is the of the Gordon Gecko variety. Greed is not good, it corrupts free enterprise that allows us all to prosper.
Thanks for carrying the standard for those who don't have the bully pulpit you enjoy.
All the best!
Anonymous
[Hotel Law Blog: We have heard similar comments from many upset people. However, we are NOT trying to call out anyone. We are just raising an issue on an approach that seems to be a new "first" in the hotel industry.]
Posted by: Anonymous | January 20, 2012 12:40 PM
I think its a great idea. I would agree however that offering one day passes or some type of pass for those who don't want to attend sessions is a good compromise.
Posted by: Lisa Sommer Devlin | January 20, 2012 1:12 PM
Jim
Great article. I've been attending this conference for 16 years, Phoenix and NY for about the same. The fee isn't the real issue, but the substantual commitment to 3-4 days. I've paid 90% of the time. In NY I enjoyed one single cup of coffee between my 27 meetings. I have always thought there needs to be certain "levels" of attendance. I don't attend any of the sessions, do not eat the food and generally miss the opening/closing events.
Logistically I think you could have different levels so you don't lose the Revenue streams. I understand what Burba is doing and respect his ability to run his program, but I think there are better, less caustic ways in doing this. I will attend this year, pay on site, stay at the JW and spend thousands regardless. But for many who perhaps cant afford it or don't have Hilton/Marriott/Starwood picking up the cost, it is unfortunate. As a dedicated Alum to my college many of our students can't attend due the overwhelming costs. Not just the fee, but flights, lodging, etc. I don't see the excess going back to support this group or perhaps I would be an advocate for this. I continue to beleive these conferences need multi-level attendance models. Figure it out. It can't be that hard to make this a great event, help those that need it and not alienate those like me.
Posted by: Chris | January 20, 2012 4:17 PM
[Anonymous at request of sender. Edited only to preserve anonymity.]
Jim, after reading your valid and very timely piece on ALIS and the Lobby Lizards, I wanted to share some thoughts with your readers.
Here's my take. I cannot speak for all the others who have shown up "un-registered" at past ALIS conferences. My case is simple. ALIS draws attendees every year to an important event that is held in and/or near where I live and work. The event attracts present, past, and even future clients of my firm, colleagues, alliances, and strong friendships of mine. Since I am a sole practitioner with limited funds for advertising, travel and industry event registration expenses, I would be stupid not to find a way to connect with those attendees during the days and evenings of the ALIS event.
Over the past three decades I have presented at ALIS breakout sessions and I have also been a full-registered attendee as well. If I was not issued a comp registration as a speaker or in my past positions within [XYZ], I justified paying the (then) $785.00 fee as a legitimate business expense for my firm. When the registration fee climbed to $1,785.00, ALIS ceased to be a legitimate business expense for me.
As far as I am concerned, the $$$ I spend for travel, hotel accommodations, spousal programs, and registration fees for the annual [XYZ] conferences represent my total budgeted amount allocated for conferences, industry events, etc.
As you wrote so well, I, too, agree with the argument that ALIS has the right to protect its registration fee (and its brand) and that any attendee should question whether or not the $2,000 fee is a wise investment when/if non-registrants have "free" access during the event.
But there is another side of the story. I have been invited by attendees who happen to have been clients and/or prospects to meet face-to-face with them in their corporate suite at the headquarter hotels. Clients, who have contacted me beforehand, have carved time out of the ALIS schedule to meet with me over significant pending consulting/expert witness assignments - - at their request, and their preference. How could I have turned down those invitations (and opportunities)? Would it be a good business decision for me to pay $2,000 whatever just for the "right" to meet with a prospect/client at their request? I don't think so.
Mindful of the growing ALIS concern over non-registered individuals having "free" access to the subject hotel's public areas, a number of us have met with Jim Burba since last year's ALIS conference. I recommended to him ALIS create a new pricing tier. If a non-registered individual wants to have access to public areas during the ALIS conference - - and not be allowed to attend any F&B events or meeting/networking venues, etc. - - that individual could pay a nominal fee ($750.00 to $999.00) and be given a legitimate badge, easily recognizable by ALIS ushers & security. Jim said he would take it under advisement, but I guess the decision was "no".
So, I'm not bothered by those who consider me a lobby lizard, a cheapskate or what have you. What others think of me is none of my business. I will be there Monday only, I guess part of the "Occupy ALIS" crowd standing outside the JW Marriott's main entrance. I have two meetings already booked, both to take place at the Starbucks next to L.A. Live. Go figure.
Best,
Anonymous
Posted by: Anonymous | January 20, 2012 6:05 PM
What a blunder by BHN not thinking of customer service to attendees.
This procedure will create a huge inconvenience for delegates who are attending the conference and plan on meeting non attending clients, bankers or hospitality associates while they are in LA at ALIS.
I sincerely doubt the amount of revenue received by the lounge lizards will compare to the loss of revenues and opportunities experienced by delegates who now cannot attend meetings on site due to a ridiculous new rule.
Posted by: Richard | January 21, 2012 2:44 PM
Great article! I agree with several of the comments you received to date. A tier structure is used by other conferences to allow limited access for participants not interested in the sessions or only there for meetings. Conference areas with presentations and food are only accessible for full fare participants.
I'm not so sure I agree on the $750 price tag for limited access. Generally a day pass and the privilege to spend money at the bar or restaurant should work for those that are only there to meet clients. Other conferences charge $200/day. You can even control that by having different color badges per day.
Even when the markets were down and hotel transactions sparse the over the top production of ALIS was not reduced since the pricetag also wasn't. It's a great conference but does it need all the bells and whistles to make it that great? When was it decided that all these conferences should cost $2000? $750 or even $1,000 are reasonable, could attract an even bigger audience and eliminate this topic. It's the price tag that is daunting for us professionals with smaller budgets trying to connect with clients.
Posted by: Anonymous | January 23, 2012 11:11 AM
Dear Jim: I am a recent graduate from a hospitality masters program and went to the conference to meet with people who is going to be crucial on my job search. By the time I had found out that the whole hotel would be closed off I was not able to make any changes to my trip or schedule meetings outside the hotel with those who were already registered.
As a recent graduate and unemployed it is impossible for me to pay the $2000 fee for the conference at this moment but when I had a job I did pay for it even though I attended less that 20% of the sessions and concentrated mostly on networking with all the executives present.
I agree that there is a tremendous effort that goes into organizing these types of events but just like in any other business they cannot leave out those who in other ways contribute to the AH&LA (for example: paying for membership fees).
I hope the organizers find a way to integrate those of us who for one reason or the other cannot pay the fee but find these conferences beneficial for our careers and the industry altogether.
Thanks for giving us the opportunity to talk about this issue.
Posted by: EF | January 27, 2012 9:11 AM