LOS ANGELES--Some of the
nation's top hotel
chains hit a speed bump on the information superhighway in
recent weeks, after losing service from their bankrupt
high-speed Internet access provider, hotel representatives said
on Friday.
As a result of problems that left some
properties without service for as much as a month, hotel
operators Hilton Hotels, John Q. Hammons Hotels and Cendant
Corp. said they are all looking for replacements for Ardent
Communications, now in Chapter 11 bankruptcy
protection.
Officials from the three companies
could not quantify how much business they lost due to the
problems, but some damage occurred, said James Lingle, director
of information technology for Hammons, which owns 52 hotels
under the Embassy Suites, Holiday Inn and Hampton Inn names.
Lingle said that Hammons will terminate
its relationship with Ardent on Feb. 1.
Ardent, which filed for bankruptcy
in October, had initially specialized in providing broadband
Internet access to hotels and apartments.
"I don't have any hard numbers to
say we've lost this much business, but it's pretty fair to say
that's definitely happened," Lingle said. "When you're
down a month with a service you tend to provide to your guests,
it's fair to assume it's affected your revenue."
Lingle said that outages at Hammons
hotels began as early as October, and have affected at least a
half dozen properties since then. He added that service
disruptions lasted anywhere from two to as many as four weeks
with some clients avoiding the hotel because it could not offer
Internet service.
"The explanations varied," he
said. "Sometimes they would say the circuit was turned down
by the provider, or there was a physical problem with the
equipment. ... There was never a clear explanation of why."
Help wanted
Cendant, meanwhile, is in the process of finding a replacement
to provide high-speed Web service for more than 6,000 of its
franchisees for the Days Inn, Ramada, Super 8, Howard Johnson,
Travelodge, Knight's Inn and Villager chains.
Cendant spokesman Michael LaCosta said
the company was in the midst of installing high-speed Internet
access for many of its franchisees when the problems began to
occur.
"We've formally ended our
relationship with (Ardent) in terms of installations," he
said. "But the company itself and Cendant itself are in the
process of working out details about their future
relationship."
The situation was similar at Hilton,
which first learned of problems in December when one of its
hotels called to say that its high-speed Internet access had
stopped without explanation, said spokeswoman Jeannie Datz.
"It wasn't a collective shut-down.
It was sporadic," she said, adding that about 150 Hilton
and Hilton Garden Inn hotels were wired with high-speed access
from Ardent.
Ardent spokeswoman Alison Tobin
confirmed that the company decided to stop providing in-room,
high-speed Internet access as part of its reorganization after
it filed for Chapter 11 bankruptcy protection last October.
"That's been the reason for why
we're no longer doing the hotel services," she said.
"If a hotel wanted to buy access from us they could, but
we're not doing in-room access."
To Rewire or not
The problems at Ardent and suspension of service have provided a
time-out for hotel operators to reevaluate their plans for
providing in-room high-speed access--once considered a must-have
during the dot-com boom.
While some chains said they will forge
ahead with service from new partners, others said they may
reconsider their previous plans.
Lingle said John Q. Hammons has chosen
WorldCom as its new in-room service provider, but is still
deciding how many high-speed lines to install.
"We need to make sure that where
we provide our access makes sense for us," he said.
LaCosta said that Cendant is also
reviewing its Internet strategy.
"We'll continue forward as long as
we find a provider that's beneficial to us as well as the
consumer," he said. "It's an amenity that's in high
demand in the marketplace." 