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Home My WebLink About[08b] Hotel Concept I ,�'� I �� DATE: July 17, 2013 MEMO TO: Economic Developr�ent Authority Administrator FROM: Cynthia Smith-Strac�k Municipal Development Group Judy Weyrens I RE: Cobblestone Hotels�BriMark Construction Mayor '� Rick schultz Background ' Council Member Renee Symanietz ttended the Minnesota League of Cities Conference in mid- Councilors June in St. Paul. At the conferenc she spoke with John Seibert a representative of BriMark Steve Frank Construction which is a sister comp ny to Cobblestone Hotels. Symanietz requested i follow up Bob Loso with Seibert regarding locating a C bblestone Hotel in St. Joseph. I met with Mr. John Seibert Renee Symanietz earlier this month. , Dale Wick � Seibert informed me Cobblestone' Corporate Office is headquartered in Neenah, Wisconsin. EDA They are a hotel franchise busines which provides an equity injection for approved projects. Doug Danielson Cobblestone positions itself as an upper mid-market limited service chain that is technology Steve Frank driving with a unique marketing app oach and reasonable fee structure. Larry Hosch I Gary Osberg Franchise locations are typically tw�to four story properties described as having 'curb appeal'. Dale wiok Consumers served are leisure gu sts and business travelers. Hotel amenities likely to be provided in a facility in St. Joseph I include workout rooms, conference rooms, and an indoor pool. , Cobblestone is in the hotel franc ise business, not hotel ownership business. Its franchise hotels are designed and constructe by sister company BriMark. Cobblestone differs from some hotel franchises in a few ways. Firs , Cobblestone will secure investors in the event a `need' is shown and the city 'supports' the n ed. Second, Cobblestone's franchise business participates in project start-ups with an injection f equity. Whether or not a City 'supports' a otel project is defined as whether or not they will pay for a market study. The market study co s befinreen $5,000-$7,500 and is conducted by one of three market research firms that specializ in the hospitality industry. I noted the potential presence of `study fatigue' relative to past ED City efforts. Mr. Seibert noted partnering with interested parties is a possibility as well as I mited cost sharing by Cobblestone in certain situations is possible. I inquired as to whether r not market studies ever find there is not enough demand for a hotel. Mr. Seibert indicates th t has occurred in the past, mostly in smaller communities that don't have a strong draw for vis tors and/or business travelers. Mr. Seibert professed to always eing able to raise private equity (primarily locally) when provided with a favorable market tudy. Cobblestone operates 32 locations in ten states of which 26 are in communities with lower population than St. Joseph. We spoke of a hotel location in downtown and adjacent to Lake Sarah. Presumably a hotel in the 'Gateway' area could be a project to drive utility ext nsion to I-94. In addition to Cobblestone Hotels and BriMark Construction the same entities own WHG Companies, a provider of hotel ma agement services. Cobblestone facilities are managed by WHG. � � � ii i l Please find attached informationl on Cobblestone Hotels, BriMark Construction, and a spreadsheet�Ietailing locations wh re Cobblestone Hotels have been developed. If the EDA is interested in 'testing t e waters' to determine potential support for a market study (and participation by other entities) Mr. Seibert would be available to explain the Cobblestone concept and process at a meeting i fi mid to late August. Ideally that meeting would include EDA Members, Council Members, representatives from local institutions, developers, property owners, and potential investors. i Request I, Discussion and direction is kindly rq'quested. � I� I I � I �, � I�� I i i i ; , �I , I I I I I �I '�� V i Cobblestone Hotel locations State City Population Historical Population Colorado Holyoke 2,290 Steady Colorado Wray 2,354 Steady Illinios Newton 2,885 Steady to slight decrease lowa Bloomfield 2,640 Steady lowa Fayette 1,342 Steady to slight decrease lowa Knoxville 7,319 Consistent decline lowa Marquette 373 Consistent decline lowa Vinton 5,260 Steady Kansas Anthony 2,253 Steady Kansas Harper 5,993 Consistent decline Michigan Traverse City 14,894 Steady Minnesota Crookston 7,857 Steady North Dakota Bottineau 2,215 Consistent decline North Dakota Carrington 2,064 Steady to slight decrease North Dakota Killdeer 788 Slight increase to steady North Dakota Langdon 1,852 Consistent decline North Dakota Rugby 2,886 Slight increase to steady Nebraska Broken Bow 3,546 Slight increase to steady Nebraska Hartington 1,533 Steady Nebraska Seward 6,946 Steady Nebraska Wayne 5,613 Steady Texas Big Lake 2,957 Steady Texas Colorado City 4,159 Steady Texas Sta nton 2,561 Steady Wisconsin Brillion 3,182 Steady Wisconsin Clintonville 4,582 Steady Wisconsin Durand 4,046 Steady Wisconsin Evansville 5,012 Steady Wisconsin Oshkosh 66,345 Steady Wisconsin Ripon 7,733 Steady Wisconsin Wautoma 2,218 Slight increase to steady Wisconsin Prairie Du Chien 5,911 Steady 32/ocations total 10 states total 26 in locations with populations less than that in St.Joseph � 9 i I I I � i THIS PAGE IN�ENTIONALLY LEFT BLANK , I'I , ;� �� , �I '� I '� , I i ; I i , i �� I � � I ; � I � ,� � ABOUT COBBLESTONE HOTELS, LLC HEADQUARTERS KEY MANAGEMENT 980 American Drive Neenah, WI 54956 • Brian J.Wogernese, CEO, Co-founder Development: (920)230-2622 • Mark C. Pomerenke, CFO, Co-founder Reservations: (888)693-8262 www.staycobblestone.com POSITION I NG www.cobblestonedream.com • Upper mid-market limited service chain DEVELOPMENT STRATEGY • Technology driven • Unique marketing approach Cobbiestone properties are generally buiit in under- • Reasonable fee structure served markets, which have a strong need for quality upper mid-sca�e ladging. PRODUCT DESCRIPTION Cobblestone Hotels are typically two to four story properties that offer superb curb appeal �vhich gives our guests a ��vonderful sense of arrival. These proper�ties feature state of tt�e a��t technofog; tha� allo�°:s for exceptioral oG�-eration and m;rket�ng fus�ct;on�(ity. Ail guest roo«�s �re e��,a��c��d ��:ith te��,co�i�� un,r�t�� s ;.��d ar :�,��ce.d busness-orient��d a«,en�ties such as hiah sp��,d �vi�e'�•ss r�_, ,;�t acc�ss in a!' c�f the ques'. �ee�rs �� : E �. .. ., Sp7CE?S. S�I"?C8 OUY C��E'I1tE'�t IfIGiUCjeS �C�'�I�I �Fit�S Oi IE'ISUtB C��S'S �tlC� b'�1Si��r,S� fi 31�r�ef"S C�b!�I.E_StO��' N ",-�5 r1P��!S OUI' (7'^v�E?I� nS St�l�' r`c�c�lflC?C S-�'Vi?(1 G�3j'� �3 \'!E,'f',K. COBBLESTONE PROPERTIES FEATURE... CONSUMER POSITIONING At Cobblestone Hotels, we knaw that travei can be challenging. Our properties appeal to both the leisure guest as well as the business traveler with standards including: • Workout facilities Convenience store • Pillow-top mattresses • Business centers • On-property �aundry facilities • Flat panel televisions • Beer and wine bar • Free high-speed internet • Indoor or outdoor pool options • Free hot breakfast WEBSITE GDS StayCobblestone.com is important for your property. These provide travel agents access to your property You get a face on the internet;the most powerfui information, rates and reai time reservations, 24 booking agent in lodging today. We continually hours a day. se�;�en days a �veek. Co:}blestone �vork to ensure that your information important to a represents you on all four ma;or GDS sys±e!��s. ��'d�'h booking decision for�ach of our locations, such as real time seamless processing ai�d r�jte rian;�qer,;<�nt. services, amenities, area restaurants, businesses, we put your property in front of 600,000+ travel and attractions, are compiete, accurate, and up-to• agents everywhere. date... and easy to find. BRAND, SALES & MARKETING BRAND, SALES & MARKETING S�IPPORT IN EVERY ASPECT OF THE INDUSTRY! Cobbiestone Hoteis is devoted to helping you make sure you have a wonderful return on your investment.At no additional charge we offer a mass quantity of quality sales and marketing programs to ensure your success. SALES & MARKETING • Group Booking Tool • Nationai Sales and RFP Services • Cobblestane Hotels Sales and Marketing Tools • Cobblestone Hotels Sales and Marketing Training Checkiist • Market Specific Sales and Revenue Management Action Plans • 24 Hour GDS/Internet Reservation System • Marketing/Advertising Design Services • Discounts on United States Travel Guides • Discounts on Highway Billboards Nationwide • Discount on all promotional materiai needed at your Cobblestone Hoteis Location • Cobblestone Hotels Brand Recognition • Cobblestone Hotels Directory Placement • GDS Marketing Campaigns ONLINE OPTIMIZATION • Key Focus on Search Engine Optimization • Social Media Management Consuiting • Online Group Booking Partnerships • GDS Representation, Putting Your Property In Front of Over 600,000 Travel Agents and Over 2000 Internet Booking Channels • And Much More... If it is not Usted,just ask us for heip. 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J!� ; . ° .1��'� ' �w'y_, . . . ..t. . , . . � . . _. � COBBLESTONE HOTELS Address: 980 American Drive, Neenah, WI 54956 Phone: (920) 230-2622 Web: www.staycobbiestone.com www.cobblestonedream.com APPIICATION & DEVELOPMENT PROCESS COBBIESTONE NOTEIS CONSTRUCTION DEVELOPMENT PROGRAM Once the membership agreement and supporting paperwork is complete, the member wiil begin the Cobbiestone Hoteis canstruction pragram. • Design,construction and procurement services:the design and construction teams have thP experience and knowledge of building many properties; experience which al(ows us to adapt our prototypes to meet to the individual and market ne�ds. Our team understands ho��v to b�fiexib!e v:hife stiil m�:nfair� n� ±�i� h ;;� quai�ty standards that are required of each Cobbiestone praperty. � Pre•opening services:Cobblestone Service Oirectors, along with our service support team, are always availabie to provide assistance throughout thQ opening process. • Operations and service support: it takes a deep and diverse collection of resources, systems, and services,to support the quality of product and performance we expect at Cobblestone Hotels. You're not in this 31one. 1'Ve provide eve,rythin� you need to develop the kind of operation that li�.�f•s u� ±o a��r ��7�� ;�r:d your exp�ctations. • Design, standards and building requiremen s:our design and construction team has devefoped prototypes that offer flexibility and efficiency each design. Each prototype design can adapt and be adjusted to meet the needs that your location demands. Every design includes our iconic b�,!I te:^:er. AII of OLIY �(Ot0`;;�3�?S f`�i'�t� hE3t�i1 '�.�U�?-E'rC�l'1F?efc?Cj �l'1G f(Y17f01't=tC� Ofl O'=:F_'(t��it?�y'i_'�l'S; �Tl�f?� O� i';t "��, ,t ' . th��t h �v� ��„��-�n im;�!err�n±��+ r��e c.o�ne frorn c��r ,��.y o:•rn �;��, _ �t,��,:�y. �NITIAL FEE Follawing approval from the brand review committ e,the applicant will be sent a completed brand agreement to be signed and returned with the entrance fee. COBBLESTONE HOTELS APPLICATION A prospective member decides that Cobblestone �lotels brand is right far them,the next step is to complete a Cobblestone Hotels application. 7he applicant n�eeds to pravide information about the site and the entity entering into the�c�reement. tNe do require a non-refundable�1,000 app!ica*ion fe� in ad�-,znce. Cln�� <.i't�� , , I!��f�(1�«.`.IOrI IS (JIO:IC:E'L�, li I`�i e:h,'4Ui�}' (", . , .JE''� fij' t'lE'. �at"��.):� _ S:�_'�1• f�.):.. � f� �:flL, C,O�il.� .... .:� �: ��`,_ , , � (7!'O� Ct fC'�7�,E'._ "l?S t�l"3 E1C �� 0(�Fl-`f1Ullli}' L'i tfl' f'1:3f%._.. T'lt'. C 7 � �ll.. . !. . ..._ t�'�t !� .L�� `,C� . .. _. . , i?�j�i:�,3±!Oil. � COBBIESTONE HOTELS HIGHIIGHTS OF BRAND AGREEMENT PHlLOSOPHY & CULTURE • We want to see profits come to the hotei own�r/owners • Lead by exampie • Client driven organization • Cobbiestone properties are committed to every hotel within our brand The brand agreement grants the member the right to use the Cobbiestone Inn and Suites or Cobbiestone Hote! &Suites system for specific site for a term of 10*years.The agreement provides for an exclusive territory in the primary trading area surrounding the site for the life of the contract. Each "area of protection" is determined by mutual agreement of the member and Cobblestone Hotels, LLC. on a case-by-case basis. OBLIGATIONS OF BRAND + Provide detailed prototype drawings and design standard • Review preliminary and final architectural plans, specifications,and FFBE to assure compliance vrith system standards • Conduct opening training at the facility as well as management and o�^rnership traininq and orientation at designated locations • Provide reservation system • Promote a�s�areness for the Cobblestone Hotels brands • Establish Cobblestone Notels stanCards OBLlGATIONS OF HOTELIER • Commitment to guest satisfaction • Design, build, and equip the facility in strict conformity with prototype plans and specifications, subject to site and code requirements. • Participate in mandatory training and marketing programs • Operate the facility in strict conformance�vith standards � COBBLESTONE H OTE LS aa��- _""" r.� ��" . � .�� ,� ... � .. . ,a �.....-i ,s .'�', `�i� ri:�,q, �."' }� ��..r/_�- '�1 � i.�� :F,S � �y t .� E � ` �� -�� -.i � ' � =�+w�ii`r�..�...— tj, � WHG Companies, LLC }I�.�,I,�n.�rterc.l in \ccn,th, ��'1, ��VH(i h:i. l�uilt ,in,l in,ii�:i;�r�l {�rc�je�t., in «�•er,�l�tate�thr�,u_h�,ut nc� \1i�l��r�t. The comp;,,,y� h�� hcen ahlc tu rr.in�l:�rr in wcre<s intn marn• .lifferent markun � � � .�n�l n� �•xE�,�ncl it� �rc�E�crtics cxpc,nenti;�ll�, t�fulc m.�inr:ii�lin�.;.� h:an�l�„n a��ro,i�lt to eadt pr<ij�ct. 1 1 I Thr c��m��any creclirs its success and gro«th r�� it. � � � � m.ukct-Jri�cn :ip�roanc �u c:�ch projctit. �ti'h�thcr it�>.i nc�� r,inil. .� n«� m:irkrt,��r a nct� E�n��crn. \1�i li � r:,�:.�:;:�. ,itiri��l�,� iii�.,!��.I ,�t tlic �,r,�t�cr� .�`•��. _ ..., ; !��'��iFCitli�il ,111:� ��ili'�`,�I't I1C<+.�,��.�t��. Ii, ,.�. . .: .i ��f:��'::I"f�,' 1�11'1At'. Thc,r;iff of WHG has a comhincd hi•tory in thc ,`-., h�,.�,ir:�liry in.lustry of rn•er 75 ycars. t�c�innin;t as �, ''��'n,`,.': aninJcE�cnclenrou•ncr/��prratur.V�'HC;ha.��ru��•n ''y a . .luc t�� its�uc�e�.implementin�;�rca�ive m;irkrtin;,� ��.., �,,, � ..rr:ite��irs arnl comhinin� them u�ith excrpticina) <., r..,�'.1`�T� � � �� :u.t„mcr.rn�i�r pm�rams. '� � . � � +t..-� —�--.__.�a .�� ., ��--�w."�' "`°-�«-=� ` `�',� ` ..�;*: . ��- Fu:inr� Jc��clopment services with operational '��* �'j""°��.� - �u��,rt,WHG is positioneJ ro contcibute to e��ery '�� " -J�� j�,. � . � � , aspe�t uf a hotel. From a conceptual i�ea to an ��,; ` ` ' _ _ _ .____ exi�tin�; macure property, H•e can assist w•ith any " " '� _ ,-_ - , ^ '� ,. . >. .. facrt�pecific ta your needs. • ,� ''.. ,� . _ . ~° ... _ �- �:... _ . .. - _ � 1 • . , , , . , www.whgco.com „ , . , L y r. � � � a a � m � � � .x �' � sn �i „� v �., a4e � � '4°c` � � � c � � p� � c �-�tc '� ��°ff� � � � V � Q �- u�„ Ci ,f � � � e►' L �' � y, n �° r �� I �t � � :' � � C � `� � 'C � 7 ,w � ;� � Cts � � � � 7G � p�t� v�^ _ .��, � Vi � � � � !%� � � C � tn � '�' � �; � .� r. 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