Service With Integrity . . .

A family run hotel management company has produced some real winners for Choice

Spring 2007 - choicesolutions :: by Rob Heyman

No one can deny that these are better times for the lodging industry. After the economic downturn in the aftermath of 9/11, when travel came to near standstill, the industry has returned to sturdier ground. People are traveling again and revenues are up. But better business has brought with it an unfortunate downside-expenses are also up. And as the guests' expectation for better services and amenities continues to grow, so too will the cost of running a hotel.

Probably, no company understands the challenges faced by property owners better than Jackson Hospitality Services, Inc. (JHS), a Birmingham, Ala.,-based hotel development and management company that oversees lodging properties throughout the United States, including several Choice brand properties.

"The cost of running a hotel has become more expensive," says Neal Jackson, CHA, a vice president for JHS who runs the company with his brother, Cory Jr., and their father, Cory Sr. "The customers are demanding a higher level of amenities and services. I remember the days when there was a debate to get HBO in a guestroom. And then of course you had to have it. This also extends to everything from the breakfast to bedding."

To help its hotels save money, JHS became one of the first management companies to sign on to Choice's new hotel insurance program offered through Arthur J. Gallagher Risk Management Services and Argonaut Great Central. The program, which was launched this year, is aimed at offering value, flexibility and dependability to franchisees, whose existing policies may have subjected them to a host of financial difficulties, the most relentless of which has been soaring premiums. In the past five years alone, hotel insurance costs have doubled, equaling as much as 3 to 4 percent of total revenue for many properties.

Available exclusively through Arthur J. Gallagher Risk Management Services, the program offers complete coverage that meets or exceeds Choice's minimum insurance requirements, including general liability, property coverage, hired and non-owned autos, all excess limits required by Choice, and workers' compensation. The program also offers excellent customer service, an exclusive program dedicated solely to Choice franchisees and improved value-added consultation services, such as loss control, claim management and premium-lowering tools and guidance.

Jackson says he couldn't be happier with the decision to join the insurance program. "I think the habit is, you go into an insurance program and you're comfortable with it and you never really look at it again. Last year, [Director of Operations] Ben Koopman researched [the program] and worked with Arthur J. Gallagher for several months and developed a fantastic program. The more we learned about it, the better we liked it," Jackson says. "It's tailor-made to the hotel industry. The rates are extremely competitive."

"Almost all of our hotels saved money. The one that didn't, Arthur J. Gallagher informed us that the hotel was under-insured," he adds. "We informed the owners and said, 'Look, you're not going to save any money- that's the bad news. The good news is, your hotel is now properly insured." Jackson says the insurance program has also been a great marketing tool for the management company.

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