Robert A. Rauch recently reached a milestone that no other in San Diego, and few in the country have reached. The Certification Commission of the American Hotel & Lodging Educational Institute (AHLEI) recognized Mr. Rauch for achieving 25 years as a Certified Hotel Administrator (CHA). The 25 year certification status marks an unparalleled commitment and dedication to the hospitality industry and to the standards of professional certification.

Maintaining CHA status for the last 25 years means Mr. Rauch has shown continued professional experience, continued education, continued involvement, and educational service in the hospitality industry.  The AHLEI says Mr. Rauch has demonstrated his commitment to staying on the cutting edge of hospitality management.

“Robert A. Rauch is truly an extraordinary example to those who strive for excellence in the hospitality industry. The 25-year pin does not simply reflect longevity, but also a dedication to continued professional education and a willingness to share one’s knowledge with others for the betterment of our industry,” said Barbara Blankenship, AHLEI’s senior director of professional certification.

Though Mr. Rauch started in the hospitality industry as a dishwasher, he has climbed the ranks, and is now the president of R. A. Rauch & Associates, Inc.  He has served as chairman of numerous tourism organizations nationally and in the western U.S., and currently serves on the board of the San Diego Tourism Marketing District.  He has been directly involved in developing several hotels including the Del Mar Marriott, Hilton Hotel Gaslamp Plaza, Hilton Garden Inn Carlsbad, Hilton Hotel Santa Clara and several more.  Mr. Rauch currently operates the Homewood Suites by Hilton and Hilton Garden Inn San Diego/Del Mar as well as the Quality Inn & Suites Garden of the Gods in Colorado Springs.

As a Senior Olympian, Mr. Rauch is also dedicated to the health of his hotel guests and local community. He invites his hotel guests to “run or train with the owner,” in which he’ll take guests on scenic runs or provide a personal training session in the hotel gym.  Additionally, he is sure to offer healthy menu items at his hotel restaurant, Bistro 39.

“The most rewarding parts of this industry are seeing guests have a great visit and watching associates grow. This enables me to enjoy every single day of work,” says Rauch.

Active in his community, Mr. Rauch serves as the president of Congregation Beth Am, a conservative synagogue. He has been teaching a class on Hospitality Entrepreneurship at San Diego State University for the past eight years and stays active with basketball, softball, running, and golf.  His wife Linda says, “he is like the Energizer bunny… he never stops.”

Today’s economy has had an enormous impact on the fortunes of the U.S. lodging industry. Some markets have been impacted more than others. Thankfully, for San Diego, the access to millions of potential travelers within a short driving distance, along with a diverse economy and a strong convention center, has lessened the blow. This article seeks to show how San Diego is faring vis a vis overall industry financial performance.

According to Smith Travel Research, (STR) the U.S. hotel industry is projected to end 2010 with increases in two of the three key performance measurements, according to their most recent forecast update earlier this month.

STR projects 2010 occupancy will increase 4.4 percent to 57.1 percent, average daily rate (ADR) is expected to end the year virtually flat with a 0.1 percent decrease to US$97.74, and revenue per available room (REVPAR) will rise 4.3 percent.

STR expects that supply will grow 2.2 percent during 2010, and demand will increase 6.6 percent. They further project the industry will end 2011 with increases in all three key metrics. Occupancy is forecast to rise 1.4 percent to 57.9 percent, ADR is expected to be up 3.9 percent to US$101.55, and REVPAR is projected to rise 5.3 percent.

The overall U.S. economy has a significant impact on demand for hotel rooms. The increased demand from the slowly growing economy is led by a combination of leisure travelers, gradually returning corporate profits, and a desire to end this “great recession.” Q1 gross domestic product has been revised downward twice now to an annualized rate of 2.7 percent and employment is growing very slowly. We expect slow growth for the economy with no signs of inflation and no signs of an imminent “double-dip.”

According to e-forecasting.com, the Hotel Industry Pulse index, or HIP, increased 3.8 percent in July. This comes after a two percent increase in June. HIP is an indicator that gauges business activity in the United States hotel industry in real-time, similar to a gross domestic product measure for the industry. The latest monthly change brought the index to a reading of 89.9. The index was set to equal 100 in the year 2000.

E-forecasting.com indicated that HIP’s six-month growth rate, which historically has signaled turning points in U.S. hotel business activity, continued to improve. After 20 months of the six-month growth rate being negative, the rate has gone up six consecutive months. In July, the six-month growth improved upon June’s growth of 10.8 percent by gaining 17.5 percent. This compares with a long-term growth rate of 3.2 percent.

In San Diego, the leading economic indicators are up for the 15^th consecutive month according to the Burnham-Moores Center for Real Estate at the University of San Diego. Will average rate growth finally return so that profits in the lodging sector will improve? In San Diego’s hotel sector, the second quarter of 2010 is moving toward positive growth in revenue per available room (REVPAR) based on increases in demand (rooms consumed) of 7.7 percent and decreases in average rate of 6.1 percent for year to date 2010 through June.

Nationally, Steve Swope, CEO of Rubicon says, “The average daily rate (ADR) shortfall is narrowing even further than we reported last month.” Ergo, REVPAR trends will be up for Q3 according to my review of the summer Smith Travel Research (STR) reports on San Diego. Hotel financial performance in San Diego will remain well below the peak of 2008 with a significant impact from both rate discounting caused in part by a reliance on the online travel agencies (OTAs) and a lack of group business.

While a return to early 2008 levels of business travel is not yet likely, a significant amount of deferred business travel is having an upward impact on room demand, according to a Tourism Economics report ordered by the San Diego Convention & Visitors Bureau (ConVis). Room demand has grown in each of the first 6 months of 2010. Group hotel bookings remain significantly weaker than transient room demand, but San Diego hotels have outperformed the state of California and the U.S. in terms of both demand and occupancy growth according to the report. For the first time in 2010, average room rates increased in San Diego albeit for a .4 percent increase in June.

Occupancy levels through June, 2010 are 65.6 percent at an average rate of $117.96, up from 63.1 percent occupancy but down in ADR from $124.24. The ConVis forecast is for a year end 65.6 percent at $121.65, well beyond the national average. A return to 70 percent occupancy levels enjoyed by San Diego as recently as 2008 is not forecast to occur until 2013. At that time, there should be sufficient pressure to push rates up above the cost of inflation.

Rauch is a hotel owner/operator. His firm, R. A. Rauch & Associates, Inc. manages and asset manages hotels in the western U.S. Rauch is founder of  www.hotelguru.com and teaches a class on hospitality entrepreneurship at the college level.

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Tourism spending rose at an annual rate of 3.9 percent during the first quarter, led by increased spending on hotels and other accommodations, according to The Bureau of Economic Analysis. The increase is significant when compared with a 1.5 percent drop during the fourth quarter of 2009.  Spending on hotels and other accommodations rose at an annual rate of 11 percent in the first quarter, after falling at a rate of 7.9 percent in the fourth quarter. The BEA said accommodations were the largest contributor to the growth in travel and tourism spending.

In San Diego, the Leading Economic Indicators are up for the 14^th consecutive month according to the Burnham-Moores Center for Real Estate at USD. The overall U.S. economy has a significant impact on demand for hotel rooms. The increased demand from the slowly growing economy is led by a combination of leisure travelers, corporate profits that are beginning to return and a desire to end a recession.

It’s been said that for Americans, a vacation is a birthright, and the results of the new Portrait Of American Travelers clearly confirm this. This new, nationally representative survey of U.S. households with an annual income over $50,000 reveals that American travelers took an average of four trips for leisure purposes during the past 12 months (comparable to the average number taken in previous years). But, they were far more resourceful in their pursuit of affordable fares and rates on those trips, according to YPartnership, the survey’s authors.

The bigger question is whether or not average rate growth will return so that profits in the lodging sector will improve. In San Diego, the second quarter of 2010 is moving toward positive growth in revenue per available room (REVPAR) based on increases in demand (rooms consumed) of nearly 7 percent and decreases in average rate of about 6 percent. As we are now in summer, it appears that the trend is toward marginally positive average rate growth. Nationally, Steve Swope, CEO of Rubicon says, “the average daily rate (ADR) shortfall is narrowing even further than we reported last month.” Ergo, REVPAR trends will be up this summer according to my review of the summer Smith Travel Research (STR) reports on San Diego.

Assuming the above scenario, what will be the impact on net income and hotel values? PKF Consulting reported that 9 of 10 hotels saw a drop in profits in 2009. Naturally, this was based on reduced occupancy and ADRs. In San Diego, HVS International reported a $48,000 per room drop in hotel values in San Diego. This is only bad news if one needs to sell or refinance. The good news is that values will begin to increase once REVPAR goes positive enough to compensate for increases in operational costs.

Individual time horizons will be driven by knowledge of the market and operating skills as well as the current loan status of individual assets. Value creation is made by buying at the right time. Moreover, operating fundamentals are critical. In other words, manage your hotel first and foremost.An explosion of transactions are fast approaching due to the maturity of loans, and values are not quite predictable in the industry due to volatility of financial performance, risks of inflation, terrorism, and the rate of growth of economic fundamentals.

So what are the trends? According to the Lodging Industry Investment Council, these are the top trends:

-Unlevered returns decreasing

-Lots of equity chasing deals

-Occupancy and ADR are going up

-Interest rates are going up (personally I disagree with this for the balance of 2010)

-Loans to value will be stable

-Cash is king

-Investors are still cautious

-Hotels will be bought both from traditional sellers and bank REO

-Quality and quantity of hotels are not good at the moment

The advice that comes from all of this is simple. Do not sell if you are able to hang on for a few years when occupancy and ADR levels return to 2007 levels. This may take several years but it will happen sometime between 2013 and 2015. We are certainly happy to assist lenders, owners, asset managers and managers with any analysis they need to make on their San Diego hotels.

Rauch is a hotel owner/operator. His firm, R. A. Rauch & Associates, Inc. manages and asset manages hotels in the western U.S. Rauch is founder of www.hotelguru.com and teaches a class on hospitality entrepreneurship at the college level. He has served on several boards of directors nationally, regionally and locally in San Diego.

In an effort to combat the most common form of human cancer, Serenity Spa & Salon is now offering the Infinity Sun spray tan to people who want a healthy glow, without the dangerous side effects that come from spending hours in the sun or tanning bed.

In addition to slicing the risks of skin cancer, Infinity Sun uses a cutting edge technology to deliver the most customized tan through anti-aging, hydrating elixirs for the ultimate beautifying experience. Celebrities like Jessica Alba, Giselle Bündchen, Paula Abdul, David Beckham stand by Infinity Sun, and apply the sunless spray tan before red carpet appearances and big events.

“As people are becoming ever more aware of the dangers of sun exposure and tanning beds, we are happy to offer this new service that will give our clients a healthy glow without aging their skin or putting them at risk,” said Jessica Woolfrey, manager of Serenity Spa & Salon. “This system, and our expert tanning consultant will deliver the longest-lasting, most natural looking sunless tan possible.”

Infinity Sun’s “Glow On the Go” eco-friendly sunless tanning aerosol is made with 7 essential oils, Vitamin A, E and vanilla aromatherapy. It is the only spray tan in a can that does not use propellants and alcohol, and keeps the skin soft and hydrated, while creating a luminous glow that lasts for up to 7 days.

Serenity Spa and Salon, a full-service Spa and Salon in Carmel Valley, serves locals and visitors to America’s Finest City. They offer a full range of services including hair, beauty, massage, and nail treatments. For more information about Serenity Spa & Salon visit www.serenityspasandiego.com or call 1-858-369-4900 to book an appointment.

Infinity Sun is featured prominently on many hit TV shows, including Millionaire Matchmaker, Entourage, Sunset Tan, The Style Network’s “Style Scenes”, E! Entertainment’s Academy awards “48 hour make-over”, Dr 90210 and many others. Infinity Sun was also the Official Spray Tanning system on the Britney Spears Circus Tour. For more information about Infinity Sun visit www.infinitysun.com or call 323-782-1049.

Event: Lilian J. Rice: her life, work and legacy
What: Exhibit
Start Time: Saturday, June 12 at 1:00pm
End Time: Saturday, June 12 at 4:00pm
Where: 635 s. Hwy 101, Solana Beach, CA 92075

How many hotels have you stayed in where you’re invited to get fitness training or run 3.5 miles…with the hotel’s owner?

Bob Rauch (far right), keeps his hotel guests on the run.

Meet Bob Rauch. He shares his healthy lifestyle in a hands-on manner as he runs and works out with hotel guests at his Hilton Garden Inn and Homewood Suites in Del Mar.

The two properties attract many business travelers. The 7 a.m. runs and grunt sessions provide an ideal outlet for guests to receive personal instruction, sweat hard and attack their days with clear heads. Among other regulars, the properties are home-away-from-homes to entertainers who pass through town to perform at the Del Mar Race Track.

His gym workout includes an eight-minute warm up, seven minutes of mat work, seven minutes utilizing the stability ball, finishing with seven minutes on the floor and a final minute to cool and down and monitor your heart rate. He could call it: “Around the Body in 30 Minutes.”

Guests receive personal instruction from Rauch, who, despite no formal training, continues to compete in Senior Olympic racing events, softball, basketball and swimming, as well as perspiring with his guests and logging some 60 hours per week on the job.

Rauch’s weight has remained within two pounds of his high school days. His 15- and 19-year-old daughters are excellent soccer and softball players, but have yet to beat their “old man” in a sprint.

Rauch loved playing competitive baseball, and one day he had a conflict with a Senior Olympics sprinting event. He asked a race official if he could instead run the 400-meter race so that he could make his baseball game on time. When the official realized Rauch had never before run a grueling 400, he replied, “You can switch races, but you’re nuts!” With that dubious vote of confidence, Rauch lined up with seven others and took off. From his Lane One position he soon mistakenly ascertained that he was embarrassingly behind so he did as any road runner would, and sprinted as hard as he could until he hit the tape.

The ultimate “Who Was That Guy!?” took the gold medal.

Nutrition-wise, Rauch has a high-fiber cereal every morning (oatmeal in winter), one cup of coffee and is “very fruits and veggies oriented.” His staunch rule: “I don’t eat big portions;ever!”

In addition to a multivitamin each day, Rauch takes extra E, C, fish oil and blue-green algae. Every other day he takes half an aspirin.Several years ago, his doctor noticed his cholesterol rising and talked of getting him on statin drugs. Rauch’s solution: Cut back on eggs and run more. Voila!

Guests working out with Rauch can glean much from his actions and wise counsel.

SAN DIEGO, Calif (May 19, 2010) –  Stanger Vineyards and Bistro 39 Executive Chef, Larry DiFolco are teaming up to present a five course Paso Robles Winemaker’s Dinner,  June 10 at the Bistro 39 ballroom, attached to the Hilton Garden Inn, San Diego/ Del Mar.  A reception will begin at 6:30 PM, while the dinner will begin promptly at 7:00 PM.  The Paso Robles Winemaker’s dinner runs $39++ per person.

“This is a great opportunity to taste the finest wines of Paso Robles Ranch,” said Kelleigh Canty, the wine representative who put this event together.  “Each of the Stanger Varietals are 100 percent estate grown and nothing is added. That is extremely rare to have 100 percent pure varietals.  However, at Stanger, it is the norm because we need not tempt the gods.”

“We have specifically selected foods to bring out the flavor of the Stanger Library Reserve Wines,” said Larry DiFolco.  “The Lamb T-bone with a Tempranillo Reduction will really complement the Stanger Vineyards Tempranillo.  Also, the Grilled Hanger Steaks with Chimichurri will be fantastic with the Stanger Vineyards Cabernet Sauvignon.”

The evening will begin with a Mumm Napa Cuvee Sparkling Wine.  The first course will feature a shrimp and scallop kabob with fresh ginger and orange glaze paired with Paso Robles Winery and Vineyards Viognier.  The second course will present a lamb T-bone with a Tempranillo reduction complemented perfectly with the STANGER Vineyards Tempranillo.  The third course will delight taste buds with Chicken Mole and STANGER Vineyards Syrah.  The fourth course will feature a grilled hanger steak with chimichurri and STANGER Vineyards Cabernet Sauvignon.  To end the evening, Chef Larry will serve his chocolate hazelnut cake along with the Pasovino Port-style wine.

Wine Maker’s Dinner Menu

Mumm Napa Cuvee Sparkling Wine                      Reception

Paso Robles Winery and Vineyards Viognier     Shrimp and Scallop kabob with fresh ginger and orange glaze *

STANGER Vineyards Tempranillo                         Lamb T-bone with Tempranillo reduction* STANGER Vineyards Syrah   Chicken Mole*

STANGER Vineyards Cabernet Sauvignon          Grilled hanger steaks with chimichurri*

PASOVINO Port-Style Wine                               Chocolate Hazelnut Cake

*Seasonal grilled vegetables and Lemon and herb couscous will be served throughout the dinner.

Bob Rauch, Managing Partner of the Hilton Campus San Diego will serve as Master of Ceremonies. JP French, General and Vineyard Manager, will also be there to discuss the wines.

SAN DIEGO, Calif (Apr. 1, 2010) – The Hilton Campus, San Diego/ Del Mar is pleased to announce Matt Seamons is the new General Manager, Amy Buitenhek is the new Assistant General Manager, and Viera Kovalejva is the new Director of Sales for the Hilton Garden Inn, San Diego/ Del Mar.

Matt Seamons assumes leadership of the Hilton Garden Inn, San Diego/ Del Mar after just one year of working as the Assistant General Manager at the hotel. He brings a wide array of skills and experience to the Hilton Campus.

“It’s an honor and a fantastic opportunity to lead a relatively new hotel that already has established itself as a local hot spot,” said Seamons.  “Despite the challenging economy and its effect on tourism in San Diego, the Hilton Garden Inn, San Diego/ Del Mar stands strong in its commitment to provide unmatched hospitality.”

Mr. Seamons received a BA from the Marriott School of Management at Brigham Young University in 2003, and was recruited to San Diego to begin his hospitality career with Marriott. He worked as the Restaurant Manager at the San Diego Marriott Hotel and Marina downtown.  Two years later, he was promoted to be the Senior Assistant Controller for the property. Three years later, he was recruited by Managing Partner Robert Rauch to become Assistant General Manager of the Hilton Garden Inn. According to Rauch, “Matt is an ‘A’ player in the hotel industry and is ready for this challenge.”

Amy Buitenhek brings impressive expertise and energy to the Assistant General Manager position at the Hilton Garden Inn, San Diego/ Del Mar.  Buitenhek’s meteoric rise within the Hilton brand, proves she is a “go-to” person who “gets things done,” according to Rauch.

Buitenhek started as an intern at the Homewood Suites by Hilton, San Diego/Del Mar, and was quickly promoted to be a front desk agent. Soon thereafter, she was named Human Resources Coordinator. When the Hilton Garden Inn San Diego/Del Mar opened in April 2008, she was promoted to Human Resources Manager for both properties as well as the Operations Manager for the Hilton Garden Inn.

“I am excited to further the standards of excellence at the Hilton Garden Inn, San Diego/ Del Mar,” said Buitenhek.  “I love being a part of the Hilton Hotels family. Our guests and staff make this job really enjoyable.”

Ms. Buitenhek has a Bachelor of Sciences Degree in Hospitality and Tourism Management with an emphasis in Hotel Operations and Management from San Diego State University. She serves on the board of directors for the Torrey Hills Community Planning Committee.

Viera Kovalejva brings more than ten years of diverse hotel experience to the Hilton Garden Inn, San Diego/ Del Mar.  Despite the recent economic challenges facing San Diego’s hospitality industry, Kovalejva increased annual corporate and leisure sales by nearly 30 percent at two San Diego Hotels. According to Rauch, “Viera is a great fit with her combination of guest services and sales talent…she will be a star.”

“I am excited to join the Hilton Garden Inn, San Diego/ Del Mar,” said Kovalejva. “The commitment here to serve the corporate and leisure clientele is quite impressive, and something I am committed to carry on.”

While she started as a Guest Services Representative at the Hilton Garden Inn, Carlsbad, Kovalejva, has experience at the Four Seasons, Encinitas Inn & Suites, The Hilton San Diego Resort, and Win Time Hotels.

About Hilton Campus, San Diego/ Del Mar

Located in the tranquil setting of San Diego’s Del Mar area in California, the Hilton Campus San Diego combines affordable luxury for locals and visitors to San Diego. Whether you are planning an event or corporate gathering, or craving a satisfying meal or massage, the Hilton Campus San Diego has something for everyone.

The campus features 200 comfortable and relaxing guest rooms at the Hilton Garden Inn, San Diego/Del Mar and Homewood Suites by Hilton/Del Mar.  The new Bistro 39 restaurant serves a variety of fresh and flavorful Bistro Classics with a creative and contemporary California twist. Also, visitors and locals can grab a quick bite at the NY Garden Deli, which offers a fresh New York-style deli, Peets Coffee and Teas and plenty of patio seating.  To unwind the body and soul, visit Serenity Spa, which offers a variety of relaxing massages, body treatments, and salon services.  For additional information visit www.HiltonDelMarCampus.com or call 1-858-720-9500.