Benjamin West Quarterly - June 2011

Alan Benjamin

Alan Benjamin, ISHP, ISHC
President

Upcoming Industry Events

ALIS: The Americas Lodging Investment Summit

January 23-25, 2012
Los Angeles, CA
Click here to contact BW attendees

HD Summit

February 29 — March 2, 2012
Palm Beach, FL
Click here to contact BW attendees

Hunter Hotel Investment Conference

March 18-20, 2012
Atlanta, GA
Click here to contact BW attendees

HD Expo Conference

May 15-17, 2012
Las Vegas, NV
Click here to contact BW attendees

NYU International Hospitality Industry Investment Conference

June 3-5, 2012
New York, NY
Click here to contact BW attendees

Please Contact Our Team!

For Project Proposals and Consultation, call today to get the level of attention and dedication you deserve!

Boulder

Jennifer Starck
Strategic Account Manager
jstarck@benjaminwest.com
303.996.8135

Chicago

Toby Nudelman
Project Director
tnudelman@benjaminwest.com
847.441.1892

Dallas

Ed Phaby
Purchasing Director
ephaby@benjaminwest.com
972.407.9950

Hong Kong

Bill Cheung
Managing Director
bcheung@benjaminwest.com
+852.2723.2890

London

Daniel Englender
Managing Director
denglender@benjaminwest.com
+44.20.7101.9740

For further info please visit
www.benjaminwest.com

Letter from the President

 

Happy Holidays to all and with 2012 just around the corner, I would like to take the time to thank our great client’s that we are honored to serve around the world as well as our amazing Benjamin West team, many of which recently celebrated 10 and 15 year anniversaries with our firm. And, of course, I must thank the superb vendors fabricating our client’s FF&E and OS&E, often with schedule, budget and technical challenges that only their dedicated teams of craftsmen can meet.

In 2011, Benjamin West handled over 300 hotel projects, both new builds and renovations, in over 20 countries. Our average daily purchasing spend is now over $1.5 million per business day, and the Benjamin West team is striving and continuing to innovate and create budget, schedule and product “wins” for our clients every day. With our offices in Boulder, Chicago, Dallas, Hong Kong and London, we have over seventy dedicated employees who are passionate about creating the best, most innovative FF&E and OS&E solutions for our very diverse clients.

From NYSE REIT’S to individual entrepreneur developers, the Benjamin West team is producing results for our clients 24/7/365. Benjamin West is currently providing the purchasing services for some of the world’s best luxury hotels, such as the Mandarin Oriental San Francisco, The Little Nell in Aspen, the newly constructed Waldorf Astoria Syon Park in London and the GT Club in Guangzhou, China. In addition, the Benjamin West team is providing the purchasing services for a portfolio of 30 Courtyard by Marriott properties and iconic, grand landmark hotels including the 2,002 room Marriott Marquis Times Square and The Fairmont Copley Plaza Boston.

 

After the successful 2009 launch of RPM – “Revolutionary Purchasing Management” - Benjamin West’s proprietary, industry leading and client focused purchasing system, Benjamin West clients are now able to have access to many documents at the touch of a button, 24/7. See more about the latest updates to RPM in the accompanying article.

Additionally, our accounting team has grown to ten dedicated project accountants. Using the general ledger accounts provided by our clients, we are able to code each FF&E asset to the proper asset categories and have the transaction detail uploaded directly to the client’s IT system. In addition, we provide monthly cash flow reports outlining what has been paid to date as well as defining future expenditures. Finally, for our USA-based clients, Benjamin West has continued to invest in software enhancements related to sales and use tax regulations throughout the United States.

2011 is ending strong for the hospitality industry, and all indications are that 2012 will be even stronger as transaction volume increases and the vast inventory of hotels that are desperate for CapEx are finally receiving the capital to address their deferred expenditure and brand standard needs.

As we enter the Holiday Season, I am reminded that it is the great people in the hospitality business that make going to work every day, in every part of the world, so challenging and energizing. We are all so fortunate to work in such a great, resilient and overall “fun” industry. Best wishes for a great Holiday Season and a fantastic 2012!

Written by: Alan Benjamin, President.

 
 
Winning when it comes to Accelerated Productions:

If this year has shown us anything, it is that the industry is picking up, renovations are back on track and we are dealing with accelerated schedules. So what are ways we as a team can work together to make production and installation move along seamlessly so the project can stay on schedule? This is a tricky question; because while the unforeseen will happen, there are a few strategies, we as a purchasing agent have to help create a successful project outcome.

Following these 10 key points listed below will help accelerated projects:

1. Make sure the team (client, project manager, designer and purchasing team) has a understanding of what the schedule is and what kind of schedule cushion, if any, each project has. Keeping the
entire team in the loop when it comes to changes in the schedule such as: dates being moved up or pushed back, installation schedule changes, alternate vendors selected for lead time reasons, are all key points to communicate.

2. Have a firm budget and make sure everyone is following it. This creates less chance for items to be reselected or put on hold with the potential of missing dates. Oh, and only have one budget that all project team members are working from.

3. If the client has strategic suppliers that they have established relationships with, including pre-approved terms of sale and warranty information, try to use these vendors whenever appropriate, as we will save time in the process.

4. Make sure that purchase order and change order approvals are approved by the appropriate parties as soon as possible.

5. Once vendors have been awarded the job, have them work closely with the design team so submit- tals can be issued and approved quickly and con- cerns can be addressed in a timely manner.

6. Try to keep specification revisions at a minimum. The more revisions the more likely there will be a chance for confusion, misunderstanding, and dates slipping.

7. Before changes are made, make sure vendors are upfront with all team members if the changes have the potential of creating issues with the pro- jected ship dates.

To continue reading this article Please Click Here

Written by:
Christina Carson, Project Coordinator
Tracy Sutter, Project Coordinator

Leverage the Power of Procurement Technology

Information at your fingertips, anytime, anywhere...

At Benjamin West, we have made major investments in technology to benefit our clients around the globe. Our proprietary purchasing software technology provides our clients with a major competitive advantage from both an operational and productivity perspective.

Our Revolutionary Purchasing Management (RPM) provides a warehouse of information and allows our clients to have real-time, 24/7/365 access to purchasing, accounting and reporting functionality, at both the property and corporate levels. It provides a seamless informational link between the client and the procurement firm. Want to know what the spec was for the chair you ordered 2 years ago? No problem; it is a click away for the Benjamin West Project Manager. Our clients can log in at any time and find answers to questions such as: what is the budget? What is the forecast? How much have I spent to date? How much is in the bank account? What is the estimated ship date for the carpet?

Not only can our clients find immediate answers to their operational questions, RPM can also upload data to client I/T systems. This eliminates the front-end data entry portion of a project, such as GL coding, thereby increasing client productivity and accounting accuracy. As any owner that has been through a sales tax audit will know, having a clear trail of every dollar spent, what was attributable to product, tax, freight, fee, and in some states, taxes on freight and fee, is invaluable.

 

To continue reading this article Please Click Here

Written by:
Steven Angelier, CFO and GM

Beware of Factory Closures

With the New Year just around the corner and “model room season” quickly approaching, please keep in mind the Chinese New Year when developing your schedules for your upcoming projects. The year of the Dragon will begin on January 23, 2012 and will last until the first week of February. During this time, factories in China shut down productions in order to allow their workers to return home for the holiday. If you are developing your schedule now please allow for two to three extra weeks during the Chinese New Year to accommodate for these closures.

For additional information regarding current industry lead times, please contact your Benjamin West team.

Written by:
Alexa Docheff, Business Development Coordinator

 
    

To cancel your newsletter subscription benefit, reply to this message with the word
UNSUBSCRIBE in the body of the email. Please do not change the subject line.