New Product and Service Development

SRKimpton Hotel Group

Table of Contents

About Kimpton Hotel GroupEvery Hotel Tells a Story

Overview: New Product Development Process

In Depth look at every stepPost Launch Review – What did we

learn?

Kimpton Hotels

Kimpton Brand Focus - Kimpton MomentsKimpton Strives to be the Best Loved

Hotel Company

For our guests: Our mission is to create an emotional connection with every one of our guests; to deliver highly personalized service across our entire collection of hotels and through our marketing efforts.

About Kimpton Hotels

Founded in 1981 by Bill Kimpton Innovative and Creative Management TeamKimpton CaresKimpton EarthCare ProgramComplimentary Evening Hosted Wine ReceptionKimpton in Touch – Guest Loyalty ProgramSignature Elements: Care, Comfort, Style,

Flavor, and FUNThe Future of Kimpton Hotels

Every Hotel Tells a Story

What is a story?– Stories are an encapsulation of an experience– Pictures are worth a 1,000 words but stories live forever

Why do our hotels tell a story?– Differentiated product that delivers unique benefits– Create an intimate connection with guests

A hotel’s story– Hotel Vintage Park Seattle – Washington Wine– Marlowe in Boston - Discovery

I coulda been a

contender

Lights, Camera, Action

Show me the

money

All right Mr. DeMille, I’m ready for my

closeup

You can’t handle the

truth

Houston we

have . . .

Testing 1, 2, 3

Give ‘em the old razzle

dazzle

New Product Development Process

New Hotel: Ground UpWhen you come to a fork in the

road, take it

Ideation/Discovery Stage#1 Success factor is a unique superior productProduct innovation is a processKimpton Hotels is known as #1 boutique hotel Voice of customer – focus groups

– We know the basics– Deliver what the guest wants before they know they

want it

Creation of Idea Bank– Hotel Story and Concepts– Amenities, Design, Gidgets and Gadgets, Buzzzzz– Competitive Set Hotels, Trade Shows, Suppliers

Screen 1 - IdeasI coulda been a contender

Fit our vision and goals– Room keys– Type of Project

Can the market support our style of hotel– Smith Travel Research Report (STR)

Market Assessment– Location in relation to competitive set– Concept elimination− Danger: “If we build it they will come” philosophy

Act 1 - ScopingLights, Camera, Action

More in depth or preliminary market research– Smith Travel Research Report (competitive set)– Previous market success = lower market risk

profile– SWOT Analysis immediate competitive set– Industry contacts, friends, counterparts

Analysis of business partners– Experience in the market– Quality of project sponsorship– Strategic Alliances with developerAvailability of capital

– Capital financial equity partners – Feasibility study on return and risk assessment

Screen 2 - ViabilityAll right Mr. DeMille, I’m ready for my closeup

Cross Functional Team

- Home Office VP Revenue, Sales, Engineering, IT, Operations

Take 2 – now that we know more re-analyze Screen 1

Verify with Legal that everything is okay and to codePrioritized Scored List of Projects (Q-Sort)Risk Reward Bubble Diagram

Screen 2 - Viability

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

0246810

Reward (NPV)

Prob

ability of S

ucce

ss

Pearls

Oysters

Bread and Butter

London, UK

Chicago, IL

Low

High

White Elephant

New York, NY

Maui, HI

Hell, MT

Charlotte, NC

Miami, FL

Risk Reward Bubble Diagram

Act 2 - Build a Business CaseWhen you come to a fork in the road, take it

22% of failed projects had no detailed market study

Cost of project - Contractor price out as favor

Entitlement of the site; create “envelope” of project

Start schematic planning

Preliminary design and Performa with operationSWOT and market analysis (convention space,

development, etc)

Create the story- The single strongest predictor of investment value is “degree of innovativeness of the company”

- The single strongest predictor of investment value is “degree of innovativeness of the company”

Screen 3 - Go to Development Show me the money

Cross Functional Team– Regional Director Revenue, Sales, Engineering, IT,

Operations

Review Results of market analysisReview Preliminary operations and marketing plansMust Meet Questionnaire (pre-developed)Ratio and balance between risk and returnSign off and presentation to CEO, COO, and CFO

Total Company Commitment and Buy InPresentation to potential financial partners

Act 3 – Development Give ‘em the old razzle dazzle

Fast paced parallel processingConstruction/Development

– Creation of Model Room> Cross functional team reveiw> Punchlist of items> Measurements, functionality, design

Strategery and other funness – Hire Director of Sales and Marketing– Create Marketing Plan– Regional Director of Revenue– Develop detailed budget and market projections

Milestones and periodic project reviewsDetailed Checklist with due dates and action items

Act 3 – Development

Screen 4 - Go to testingTesting 1, 2, 3

Cross Functional Regional Level Team analysis- Product functionality, marketing plan, strategies

- Ask the question: “Did we do this right”- Revised Financials in line with original goals

- Compare to original criteria and plan- Verify market place expectations unchanged

65% of projects do not include a pre-launch business analysisComplete site walk through by:

–Designer, Project Manager, Director - Hotel Openings

Alpha Testing – Current management spends night in room

Act 4 - Testing and ValidationYou can’t handle the truth

Beta Testing – complete questionnaireInner Circle Members complete a predetermined

questionnaire– Include price sensitive questions/interest to purchase– Weighted scores on usability/functionality of amenities

Opening Hotel Team– Selected manager’s from around country come in to help– Role play with new staff; intense training; Kimpton

CheerleadersHotel story in place?Kimpton Service Standards in place?

Screen 5 - Go to Launch Houston we have . . .

Final review of:– Marketing Plan, Business Strategies/Tactics– Rate structures, Pricing strategies– System integrations– E-Channel content and visibility

CEO, COO, and CFO complete site walk through and visit

Kill Criteria – Lobby and public space are 100% complete− Living room and stage have to be set

before guests can arrive

. . . L I F T O F F

Coyle Report Scores

Watchlist Performance Hotel Call

New Project Conference Call

Smith Travel Reports (RevPAR Index)

Employee Satisfaction Survey

Guest Service Surveys (Sterling Report) New Project review Questionnaire

IT’S A WRAPWe’re bringing sexy back