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BUSINESS NEWS CONSTRUCTION BEGINS ON NEW FOUR-STAR AUTOGRAPH COLLECTION HOTEL IN SILICON VALLEY Ensemble Real Estate and AECOM today broke ground for a 250-room luxury lifestyle hotel, the first in decades to be built in Silicon Valley from the ground up. The 11-story hotel, which will be a member of Marriott’s Autograph Collection, is a key component of Silicon Valley’s landmark Menlo Gateway project, which will transform 16 acres of industrial land east of Highway 101 in Menlo Park into a vibrant work and leisure environment. “This hotel highlights the ability of AECOM Capital and Ensemble to successfully partner with project owners and municipal stakeholders to design an independent lifestyle property that adds value to the surrounding community,” said Brian Ehrlich, chief investment officer at Ensemble Real Estate Investments. “Our goal is to create a boldly original facility that honors the unique ethos and innovative spirit of Silicon Valley – a place that will be a neighborhood after-hours retreat for locals, and a must-stay destination for taste-making travelers and corporate leaders.” “We’re excited to join Ensemble and Bohannon to develop the Marriott Autograph Collection hotel,” said John Livingston, chief executive of AECOM Capital. “This project represents our first investment in the Bay Area, and addresses the need for more hotel rooms in Menlo Park to support the growing demand of the technology industry.”

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Inspired by the culture of innovation in Silicon Valley, the property will be a full-service, four- star hotel featuring an iconic architectural design built to the LEED Silver-level of certification for sustainability. With architectural design elements that pay homage to the curved bow of an elegant sailing ship, the hotel’s rich character and details reflect the personality of Menlo Park while meeting the needs of today’s business travelers. The Autograph Collection hotel in Menlo Park will offer: ❚ ❚ High-design and welcoming comforts that blend understated elegance and ingenuity ❚ ❚ Lushly landscaped courtyards and gardens, with a zero-edge pool and spa, cabanas, and fire pits ❚ ❚ A community centerpiece of social food and beverage experiences created in partnership with a local celebrity chef and restaurateur, including a three-meal restaurant, lobby coffee market, and poolside bar ❚ ❚ And more Minneapolis-based Cuningham Group Architecture has been selected as the project architects. Cuningham Group has designed numerous landmark hospitality and resort properties in the U.S. and Asia. “We’re pleased to have built a strong relationship with Bohannon Development Company and the City of Menlo Park as the Menlo Gateway project has progressed,” said Ehrlich.

1200 North College Ave. Fayetteville, AR 72703 Mark Zweig | Publisher mzweig@zweiggroup.com Richard Massey | Managing Editor rmassey@zweiggroup.com Christina Zweig | Contributing Editor christinaz@zweiggroup.com Sara Parkman | Editor and Designer sparkman@zweiggroup.com Megan Halbert | Design Assistant mhalbert@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com Tel: 800-466-6275 Fax: 800-842-1560 Email: info@zweiggroup.com Online: www.thezweigletter.com Twitter: twitter.com/zweigletter Blog: blog.zweiggroup.com

MARK ZWEIG, from page 1

Another common issue we often see is the insistence of some companies on over- emphasizing employee utilization rates. You’ll hear people saying things such as, “A one-percent increase in utilization makes us another $400K a year,” as if that was the most profound thought anyone has ever had. Problem is, that’s the greatest over-simplification there ever was. Utilization is probably down because there isn’t enough work to be done. You can’t just increase utilization – people don’t charge to jobs because there aren’t jobs with budgets to burn. So management still tracks it, pushes it, reports on it, and penalizes those who can’t hit their utilization targets. And what is the result? Management gets what it has been wanting – higher utilization. Of course, they also get more project budget overruns and lower effective labor multiples. The increase in utilization was for naught. The problem is solved but it was the wrong problem! One last example is the result of over-emphasizing project profitability. I have seen several companies that freak out the moment project profitability declines below a certain percentage. How could that be a problem, you may ask? It’s a problem when PMs begin choosing contract labor over the firm’s permanent staff because there’s no multiplier charged to it. The firm’s own staff suffers utilization problems while the PMs hire (theoretically) less qualified staff as contract laborers because it makes their projects “look better” financially. We see countless incidences of how A/E firms measuring and reporting the wrong numbers can greatly impact their future. What examples do you have that you’d like to share with our readers? Email me at mzweig@zweiggroup.com. See you next week!! MARK ZWEIG is Zweig Group’s founder and CEO. Contact him at mzweig@zweiggroup.com.

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THE ZWEIG LETTER April 11, 2016, ISSUE 1147

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