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HOSPITALITY by Dave Szymanski | Tampa Bay Editor

John McKibbon continues a family tradition of building and managing hotels, expanding the company throughout the Southeast.

John McKibbon III was 13 in Gainesille, Ga. when he began working for his dad's Holiday Inn. McKibbon knew early on that he liked the dynamics of the hotel operation, from helping customers to maintaining the property.

His grandfather, John McKibbon, started McKibbon Brothers, a grocery business in Georgia in 1927. That evolved into hotels by 1947. His son, John McKibbon Jr., followed in his footsteps.

The third John McKibbon earned a hotel degree from Florida International University in Miami in 1975. He then rejoined the family business and ran a Holiday Inn in Atlanta.

"I grew up in it," says John McKibbon III, now chief executive officer of McKibbon Hotel Management, a Tampa company that builds and manages hotels.

The company, which has 60 hotels throughout the Southeast, from Richmond, Va. to Tampa to Little Rock, Ark., plans to continue to expand in that region.

"We don't focus on how big we are," McKibbon says. "We just focus on quality hotels and managing them. It's all about people. We deliver a service."

McKibbon's profile is a little higher now because the company is involved in its biggest project to date: Avion Park, a mixed-use, $150-million three-hotel development in Tampa's Westshore business district. It includes plans for retail, restaurants and office space.

The turning point for McKibbon was in 1992, the year he met with Marriott Corp. and became one of first franchisees for Courtyard by Marriott.

It was right after an economic downturn and no one was building hotels. The company began divesting old hotels and finding locations for new Courtyards in the Southeast.

One of the first places McKibbon scouted out was Tampa. Plans came together quickly.

"I met with some folks and they had a friendliness and a welcoming attitude," McKibbon says. "The city was so easy to work with. The weather's good and there are lots of opportunities here."

In January 1994, McKibbon opened a new Marriott Courtyard in Tampa. As the company expanded, half of its portfolio of new hotels would be in Florida including properties in Tampa, Fort Myers and Sarasota.

Eventually McKibbon split the company into two pieces. McKibbon Hotel Group in Gainesville, Ga. manages the company's real estate. McKibbon Hotel Management in Tampa manages the hotels.

"We had regional offices and we realized managers could be in Gainesville or here, so things evolved," he says.

His father Jack is retired, but his original company, McKibbon Brothers, still exists as a sort of holding company.

Changes with growth

As the businesses have grown, McKibbon has had to delegate. He appointed Vann Herring president of McKibbon Hotel Management and David Hughs president of McKibbon Hotel Group to free himself up to oversee the entire company and visit sites.

In the next three to five years, the company wants to stay geographically focused on the Southeast because it allows staff to get to hotels more often. McKibbon operates with a cluster of hotels in a city. For example, it has 10 hotels in Tampa.

"That way, we really know the market and get to the hotels frequently," McKibbon says. "We've been on a steady growth pattern since 1992 and it's our intention to continue."

As land gets more scarce and as people look for urban activities, McKibbon sees itself building more urban properties.

Because of land costs and more limited space, they are a lot more difficult to build, but are rewarding, he says.

The company is building a Starwood loft hotel in downtown Tallahassee. It has been five years since it started the project. A suburban site would take two to three years.

McKibbon is also interested in building in historic districts, such as Savannah, where it has expanded.

"We wanted our hotel to be part of the historic district and also be appreciated by the local community," says McKibbon, who is building a second hotel there, in the historic district.

"It's sometimes tough to make everyone happy," McKibbon says. "We realize the building will be there for 40 to 50 years or longer and it needs to build a building that fits well in its surroundings and complements the neighborhood it's in.

The company has also expanded into different brands. It now builds Marriotts, Hiltons and Starwood hotels. Each of those has multiple sub-brands.

"They have a consistent quality and from a real estate perspective, they are very sought-after brands," McKibbon says. "From the guest's perspective, they are very consistent. There is a high level of service. They are well-known."

Every McKibbon hotel has been profitable, although some properties had a slow start. That's where the management company comes in to focus on a struggling hotel and make it successful, he says.

Avion Park and beyond

Despite the slower economy, hotel developers continue to build if they can locate good sites. McKibbon is building its largest project to date, Avion Park, just north of Tampa International Airport on Spruce Street in Tampa's Westshore business district.

When complete, Avion Park will have two Hiltons and one Marriott.

On June 27, McKibbon is scheduled to open the Townplace Suites by Marriott in Avion Park. Aug. 1 it opens the Hilton Garden Inn and Dec. 5 it is scheduled to open the Homewood Suites by Hilton. It has pads for restaurants and retail and sites for office space.

"It's a little tough because of the economy and gas prices," McKibbon says. "Those guys are a little nervous now."

Despite the economic cycles, McKibbon has had to push on. His hotels take three to four years to develop, from permitting through construction to occupancy.

"We continue our development plan," he says. "Long term, it's a great country. Florida is a great place to do business and Florida will do fine."

Working around Tampa's airport has been challenging and expensive, but McKibbon sees occupancy rates there better than other hotels because of all the places business and leisure travelers visit in Westshore.

"There are a lot more demand generators, such as the airport, sporting events, the malls and office buildings," McKibbon says.

The company is always looking for new hotel sites in strong markets. When it finds a site, it decides which brand would be the best for that market. If it's a Marriott, McKibbon contacts Marriott and requests a license. If it gets it, it builds it.

Industry trends

For the hotel industry nationwide, occupancy is down slightly, rates are up and revenue is stable. But business varies by market, McKibbon says.

The Fort Myers hotel market has very soft occupancy because so much of that economy was tied to residential growth, McKibbon says. All of Florida has been affected.

In Savannah, Ga. and Chattanooga, Tenn., those economies are more diversified and hotels there are doing better.

The spike in gasoline prices has shortened vacations, which is helping some hotels and hurting others. McKibbon primarily develops business hotels, but part of their customers, especially on weekends, are leisure travelers.

While technology has shaped how hotels are built and outfitted, it hasn't hurt business at McKibbon hotels. Business people still need to meet face to face.

One of the main issues that affects McKibbon is the airlines. Airlines are cutting flights. It is more expensive to travel because of gas prices.

"That affects us," McKibbon says. "Business travelers need to meet customers and need a good place to stay."

McKibbon isn't a doom-and-gloomer.

"The economy is soft, not in a recession," he says. "GNP is still increasing, but slower. It should have never gotten that hot. Service industries, like medical, are still expanding. There's a lot of good out there. Residential will recover. Florida is such a good place to live."

Nationwide and in Florida, the hotel industry has specialized, building different products for diverse travelers, so McKibbon has had to pay attention. There are extended-stay hotels, luxury hotels and hotels for one-night transient travelers.

Hotels have added flat-panel televisions, Internet access, business centers and stores where guests can get a sandwich if they cannot get to a restaurant.

Women are driving changes in the industry, including menus in hotel restaurants, McKibbon says. Some hotels are migrating toward lighter meals, espresso and lighter breakfasts.

"We have to make them happy," McKibbon says.

McKibbon travels a lot and sees what's new in the marketplace as well as looks at any new competition in its markets.

Lessons learned

Because of the contact with customers in his hotels, from the front desk, to room service and maintenance, McKibbon stresses the importance of hiring the right employees.

"It's all about your people," he says. "It's the people you work with that make and break you."

He also stresses ethics with his staff. On the company Web site, McKibbon, a deacon in his church, includes a Biblical reference about the good Samaritan caring for a wounded traveler and asks his staff to be like that good Samaritan.

"It's not how big you can go," McKibbon says. "Our goal is not to grow and be successful, but make a lot of friends along the way.

"If we deal with someone and walk away with every nickel, that's not the kind of deal we're going to do," he adds. "We also have occasions where people aren't honest. We try our best to be honest and up front."

To encourage communication from the bottom up, McKibbon posts his cellular telephone number on the employee bulletin board in every McKibbon hotel. Anyone can call him. And they do.

"Every single associate is important," he says. "It creates loyalty."

The company also has a program called McKibbon Cares. It is a voluntary program available to every McKibbon employee. Using the outsourced services of Marketplace Chaplains USA, a local chaplain visits each hotel regularly where they are available to talk with associates about work, family or personal items confidentially. The benefit has been well received by many McKibbon employees.

As an extension of McKibbon Cares, the company also offers the "Guest Care" Chaplain Services Program to guests staying at McKibbon hotels. Guests are introduced to this program through in-room Bible study guides, and can contact front desk staff to be connected to the property's local chaplain. Front desk staffs have been trained to handle these calls confidentially.

It all comes back to trying to provide the best customer satisfaction in and industry that is all about satisfying the customer.

REVIEW SUMMARY

Company: McKibbon Hotel Management Inc.

Industry: Hotel development and management

Key: Finding the right locations for new hotels and managing existing properties well.