Given a venue choice for an event some people and companies will always choose the chain hotel by the airport or interstate over the historic hotel or mansion downtown , for ease of access or lower cost . “ But as meeting planners , we always want to give clients options ,” said Talley . “ There is a broad appreciation of historic places and things . If the event cannot be at a historic venue , then there can be tours of museums or historic sites , or at least a local historian to give a talk at the brewpub .”
Sometimes the structures themselves do the talking . The term “ lobbyist ,” and the verb “ to lobby ,” came from the practice by advocates of different causes loitering in the lobby of the Willard Hotel in Washington , DC , waiting to plead their case with every elected and appointed official who walked through . The Willard is two blocks from the White House and still plays a role in business and politics .
“ It can be a very strong differentiator for a property to highlight its historic value ,” said Talley . “ And generally speaking , historic properties do communicate . It is incredibly helpful for them to have full details on their history as well as detailing their meeting and event capabilities .”
The National Trust for Historic Preservation is a non-profit organization established by President Harry S . Truman in 1949 , which is best known for preserving historic homes and mansions . In 1989 , the organization formed the Historic Hotels of America ( HHA ), which are forprofit businesses . Twenty of the original 32 hotels are still members . The total has grown to more than 300 in the United States and even more as part of the Historic Hotels Worldwide .
The outlook for the US lodging industry , particularly historic hotels , continues to be extremely strong , according to the annual forecast released in February by CBRE Hotels ’ Americas Research . CBRE Group is the largest commercial real estate services and investment firm in the world .
Through the first three quarters of 2017 , the aggregate revenue per available room for historic hotels that are members of HHA placed between the national averages for all upper-upscale and all luxury hotels in the United States . Annual occupancy levels for hotels that are members of HHA remains about eight percentage points above the national average occupancy level through 2019 .
Based on a set of information pulled from CBRE ’ s database , the daily rate for historic hotels is about $ 260 , more than 12 % higher than the $ 230 average for contemporary hotels . Since 2009 , historic resort hotels have achieved greater revenue and profit growth compared to their contemporary counterparts , CBRE found .
“ The data strongly supports the idea that many consumers favor and will pay more for the unique hotel experience historic properties can offer ,” said Mark Woodworth , senior managing director at CBRE .
HHA is a membership organization . Hotels pay a membership fee and have access to guidance on policy , publicity and tax credits . Properties must be 50 years or older and be eligible for the National Register of Historic Places . They also have to maintain their overall architectural integrity . Some hotels are part of the major commercial chains , while others are independent . The Willard is a member .
“ Hotels don ’ t have to be in continuous operation , or have always been hotels ,” said Michael DiRienzo , director of sales for HHA . “ Many of our members are adaptive-reuse of buildings built for other purposes and now turned into hotels featuring that history . The interior can be quite modern .”
It is important to look both inward and outward , DiRienzo noted . The place has to tell its own story , and in doing that often becomes an anchor to a neighborhood . “ They become the reason other things are there .” The National Trust has a program called Main Street that fosters multi-use mixed areas of historic value .
HHA also has a Performance Improvement Plan for members that helps them operationally and in communicating their story . “ Finding space to tell the story can be a challenge ,” said DiRienzo . “ We try to share best practices . I have told several members about an idea I saw at the Mark Hopkins Hotel in San Francisco . They put a mini-museum into the space that used to be pay phones . It was the perfect size and location , close to the lobby but out of direct walkways . It became a focal point .”
DiRienzo acknowledged there is “ maintenance and upkeep for a historic property , just as there would be for an older house .” That said , he cited the CBRE report that historic properties do see an average rate premium . So , indeed , history can be a viable business . “ Historic properties also attract a high level of international delegates to events ,” he added .
Jay Zelkowitz , front office manager for the Glen Cove Mansion on Long Island , concurred . The 55-acre estate was the home of John Pratt , an attorney and executive with John D . Rockefeller in Standard Oil . “ Maintenance is one of the toughest things , but our housekeeping and engineering staff work very closely on that .”
He also noted quirks , such as the restaurant on the third floor , literally under the eaves , with no elevator access . Nevertheless history is part of the business .
Aerial image of the Oheka Castle in Long Island , New York .
Stephen Turner
36 FINANCIAL HISTORY | Spring 2018 | www . MoAF . org