The Best Hotel Values in America, Volume I

Cheapest room, $339. Internet available "for a nominal fee".

The CYC authors travel, a lot. And we’re proud to say we’ve never stayed in an expensive hotel that a client wasn’t paying for. Even then, given the opportunity we’d prefer to have traded down to a business-traveler hotel and pocketed the difference. But that damn social propriety gets in the way again, and considers that to be the height of cheapness.

Business-traveler hotels. Somewhere well south of the Ritz-Carlton, but not Americas (sic) Best Value Inn, either.* Antiseptic and uniform, they represent a piece of new Americana that we can’t help but love. In this post and the next, we rank the nation’s predominant chains and see if we can’t save you some real money.

Sure, no chain hotel has the charm of that delightful little bed-and-breakfast you stayed in that one time in Vermont; you know, the place where they served maple Anadama bread for breakfast and scheduled daily tours of the county tea-cozy-and-doily museum.

That b&b doesn’t exist, and even if it did, it wouldn’t offer privacy, superfast download speeds, freedom nor quiet. You’ll eat when the innkeepers tell you to, and you’re going to make conversation with the Austrian tourists in Room 2 whether you want to or not.

Individuality is overrated, at least in the service merchant world. That’s why when most people visit a strange town and can’t access Yelp reviews, they’ll eat and sleep at a chain rather than take a chance at some place that the locals like but that an unbiased observer would probably hate. It’s nothing personal, in at least two senses of the adjective; it’s just commerce. Most enterprises fail. The long tail is long for a reason. The successful business models proliferate. That’s why Walmart sells tens of billions of dollars of merchandise annually, and why 19th-century dry goods stores where you gave the clerk a list of what you wanted and he went in the back and got it no longer exist.

What we love about business-traveler hotels is that they have all the important amenities to distinguish them from fleabag motels, and none of the unnecessary perks that expensive hotels attempt to justify.

(Turndown service? They brag that they peel a corner back on your bed after making it? And if you patronize a minibar, you’re not just an alcoholic, you’re a financially suicidal one. Nor should you be buying in-room movies in this, the Golden Age of Internet Porn. Again, one of our unbreakable commandments is to always look at the transaction from the other party’s perspective. What are they getting out of it? In the case of all those luxury hotel perks, nothing but titanic profit margins.)

Between us, here’s a list of the things we look for in a hotel. (And just because the category’s called “business-traveler” doesn’t mean we don’t stay at these places when vacationing or doing something else.)

-Reasonable price. Details henceforth, and obviously this is the ultimate criterion after we cull the list to its finalists (this is a personal finance site, after all.)
-Smokelessness.
This one goes without saying, right? People don’t still smoke in 2011, do they? And spare us your non-smoking room on an otherwise smoking floor. We’ll take a train whistle and a rendering plant outside the window before inhaling carcinogens or even carcinogen residue.
-Internet included.
Yes, online access isn’t technically “free”, but we prefer a place that includes it in the price of the room instead of chipping away at your bank account incrementally.

By the way, did you know that free internet is largely an American phenomenon? We’ve been charged rates ranging from 11¢/minute in Cape Town to $14/day in Brisbane to $100/week in Vancouver. The Vancouver hotel (the cleverly titled Hotel Vancouver) only had internet access in one little 100-ft2 area in the lobby. Fortunately, that area included a couch. This was in 2007, by the way.
-Quiet.
This is a tough one, and not completely under the control of the hotel itself, but…let’s just say we prefer hotels that attract the kind of guest who doesn’t need to be asked to keep the TV volume down at 1 a.m.
Breakfast included. If you’re the kind of person who skips breakfast (see “smokers”, above), maybe this isn’t so important to you. To us, its absence is almost a dealbreaker. And none of that Continental foolishness, either; the boy needs protein or he’ll starve.

For at least one CYC author, the typical move is to get downstairs when breakfast starts, inhale some carbs and coffee, leave 20 minutes later to find a nearby gym (see below), return and then load up on something involving eggs. Best of all, the self-serve setup means you set the portion limits.

The alternative is to find a Denny’s or an IHOP, which can set a party of two back $33 or so. In some instances, that’s almost 40% of the price of the room. Nor does either stand-alone restaurant let you have seconds. Failing the included breakfast, we can be persuaded to settle for:

-Microwave/fridge. We don’t know what our stomachs are going to do, and neither do you. The idea of being arbitrarily forbidden from eating at any given time just because some 1960s technology isn’t readily available to satisfy our hunger just won’t do.
Laundry room. Contingent on how long of a trip you’re on. After 5 days in the canyons of southern Utah, with only 4 changes of clothes in the truck, a giant washer and dryer represent the ultimate in luxury. Especially when the alternative is lugging your stuff across town and waiting patiently while it spins in a room full of current and future parolees.

Amenities we don’t care about:

“Fitness center”. A treadmill and a couple of pairs of dumbbells? Thanks, but we’ll find a real local gym. Our chain memberships (hey, there’s that word again) usually enable us to, thus costing us nothing extra.
Premium cable. You have ESPN and Fox News? Then we’re good. If you don’t, we’re still good. After all, the only reason for watching TV, ultimately, is football and if you want to see a particular hard-to-find game that badly (e.g. one that’s broadcast on the NFL Network, which no commercial client carries), then you can find a local bar. Besides, a business-traveler hotel will likely have the same cable package that the 5-star hotel across the street has. And is TV really that important? Read a book. Every hotel room has a Bible in it anyway.
Business center. Shorthand for “extra fax machine that we put in a room next to the front desk.” No one needs this.
Iron, blow dryer, coffeemaker, included newspaper. Take these out of the average hotel room, and no one would notice.

Next week, the results.

*Oh, what utter toilets. And the worst Americas Best Value Inn of all is the one in Anchorage. They recently reglossed it “Executive Suite Hotel”, and if Radio Shack called itself “Ultra-Luxurious Consumer Electronics Boutique” it wouldn’t change a thing. If you’re ever in Anchorage and counting pennies, pay the extra $10 and stay at the Motel 6 instead.

Nothing says “I love you” like the actual words

Come on in! We're having a special on 2002 Valentine's Day gifts!

So say it. By talking, not by impoverishing yourself.

It’s tough to determine whether Mothers Day or Valentine’s Day is the biggest crock of garbage on the retail liturgical calendar. After a few seconds of weighing this, we’ll go with Mothers Day. At least Valentine’s Day has been celebrated for centuries*.

This isn’t an anti-capitalistic jeremiad. Spend all the money you want, but at least spend it on something of value. Look, we’re not sociologists. Nor are we in that camp of reactionaries who think that consumerism and its sidekick, advertising, are the work of the devil. But come on. If you’ve seen the messages and feel even a hint of obligation toward spending money on something with minimal inherent value, we can come over there and slap you if that’s what it takes. There are plenty of Western customs you can honor (shaking hands, exhibiting good table manners, failing to torture cats) without throwing money away.

Just look at the slogans:

Helzberg Diamonds: “I am loved.”

Ergo, any woman who isn’t in a relationship with a Helzberg customer is being taken for granted and/or treated like garbage.

It’s the same as that “2 months’ salary” rule of thumb that jewelers came up with sometime in the mid-20th century and somehow got a grossly gullible public to swallow. Think about that for a second – an industry suggests that you should spend 1/6 of your annual income on its product, and people take it to heart.

Imagine if an industry that produces something far more useful – like groceries, or better yet, health insurance – tried to get away with that reasoning.

Seriously. Mental exercise time. What if an HMO used a similar tactic?

Hi. We’re your friends at CIGNA. Do you have enough protection against unforeseen accidents and illnesses? You never know when disaster might strike you or your loved ones, and possibly turn into tragedy. That’s why we recommend that you spend at least 10% of your pre-tax income on coverage. It’s a small price to pay to minimize the childhood leukemia deaths in your family.

The only question is which senator would chair the 2011 hearings on Unconscionable Advertising Messages Foisted By A Mercenary Industry On The Public. Our money’s on Chuck Schumer.

If you want to listen to a jeweler’s message, Zales’ slogan from the 1940s is particularly forthright, especially if you contemporize it for inflation – “A penny down and a dollar a week.”

The practice of buying jewelry, especially at this time of year, is the loudest and most imbecilic real-world rebuttal of Control Your Cash Mantra #1 – bolded, italicized and underlined here for your pleasure: Buy assets, sell liabilities.

Finance something if there’s a legitimate economic reason for it – the example we give repeatedly is homebuying. If you want a house, better to finance it than to pay rent for years and years when you could have been enjoying a home on credit. Even if your circumstances lead you to disagree with that sentiment – you live in an area with a chronically poor housing market, or your data indicates that it’ll become one before you plan to move out of any house you might buy – you have to agree that at least a house has utility. Financing a car is harder to justify than financing a house, but again, utility: we still haven’t developed a more efficient way to get from point A to point B at your leisure (assuming points A and B are on land) than by driving.

Where’s the utility in a non-industrial diamond? You’re not going to use it as a drill bit. No, it’s a totem of some emotion that you can only truly convey with actions, not expensive objects.

We’d include a chart showing how much what you spent on that tennis bracelet could grow to over the next x years, but you’ve seen similar charts before and the inevitable conclusion is so obvious that it doesn’t require mathematical reinforcement.

If you don’t care about your future together, act like you mean it: by dropping money on – or better yet, financing – a shiny trinket.

And ladies, if you need a bauble to validate your relationship, or your man, you’re one step above your colleagues whose husbands smoke cigars. (Why not just wear a button that says, “With all the tasty parts of me available to put in his mouth, he instead chooses the foulest-smelling thing this side of the public toilets in Calcutta. No, no hypermasculine phallic symbolism to see here”?)

Look, moments don’t sparkle. And if they do, it’s only a figure of speech. A Vermont Teddy Bear might not be imaginative, but it’s fun to hold. More importantly, the recipient isn’t going to wear it in public – making it a private token of a relationship that you shouldn’t be sharing with the rest of us anyway. And, the one we researched on their website costs only $80.

*If you care about this kind of arcana, the idea that the Hallmark Corporation created Mothers Day is an urban legend. Mothers Day is the brainchild of Anna Jarvis, a 19th century woman who wanted to honor her own mother. Jarvis mère spent the Civil War attending to wounded soldiers, both Blue and Gray. Jarvis fille, as women often do, kept pestering the authorities to make the holiday official. She died poor and childless.

**This post is featured in the Carnival of Wealth #27**

OMG THE MARKETS TOOK A HIT TODAY

No, they didn’t.

The markets are among the least volatile things in commerce.

EVERY trader looks like this, all the time. He could have just found out that his daughter got engaged and he'd still look the same way. "Crap, now I have to pay for a g.d. wedding."

Last Thursday, the Dow fell 11 points, which is a big enough story to lead the business news. Considering that the Dow opened the day at 12,037, that means it lost a crushing .09% of its value.

Granted, that means that at that rate, the Dow’s entire value would be worthless by May 2015.

By the same logic, the temperature in Fairbanks, AK was 85º on July 9 and -15º this morning. At that rate, by May 2015 Fairbanks will hit absolute zero, everything will turn solid and motion will stop.

These things are cyclical. Everything rebounds, and it usually doesn’t take that long.

Biggest Dow % losses of the last 75 years
October 19, 198722.6
October 26, 19878.0
October 15, 20087.9
October 18, 19377.8
December 1, 20087.7
October 9, 20087.3
October 27, 19977.2
September 17, 20017.1
September 29, 20087.0

The chance that 6 of the 7 biggest losses of all time would happen in the same 19-day annual period are 145,337 to 1.

Why was October 19, 1987, a/k/a Black Monday, such an outlier?

Two major reasons.

The market was unduly, maybe artificially high that morning, fueled by speculation that had kept the Dow rising all summer. The Dow was actually higher at the end of 1987 than at the start.

Also, it took the traders a while to get used to new technology. This was the first time that firms could program computers to take certain orders at certain prices. Not only that, but for the first time brokers could now process orders contingent on what level other stocks were selling at. A shareholder of railroad operator XYZ could order his broker to sell if railroad stock JKL fell to a certain price. We take this for granted now, but back then the traders were still only recently removed from executing every trade by hand.

What happened a week later?

Overworry. The traders were reeling from the previous week’s fall, plus all weekend long they were anxious to get to work and act conservatively – i.e. get into cash and not be part of the volatility. That works fine for one trader, but when everyone does it, you get the very volatility you were trying to avoid – the human equivalent of cows overgrazing on public lands, then ultimately going hungry.

Same thing. This one is attempting to negotiate with God, swearing to quit snorting coke once and for all if He'll only let the dry cleaner not notice the baggie he left in his suit pocket

What are the chances of 4 of the top 9 losses coming in the same 9-week period in 2008, during which we not only elected a new president, but had one of the two biggest ideological shifts in history between a president and his successor?

283,026,075 to 1. Almost the same as the chances of us choosing a person at random in the United States, and that person turning out to be you.

Does that mean we’re heading to an inevitable future of up-and-down stock prices? Not necessarily, and this will wrap up nicely with one more chart, below.

Look at the numbers. A 7% loss happens about once a decade. People frequently lose 7% of their savings balances – withdrawing $140 when you have $2000 in the account – and rarely feel aghast about it. How is that different than if it happens with any other investment (or in the case of the Dow, a representation of a mere 30 investments of the hundreds of thousands available)?

Oh, one more thing:

Biggest Dow % gains of the last 75 years
4 days after the 6th biggest loss11.1
15 days after that, i.e. 13 days after the 3rd biggest loss10.9
11 days after the biggest loss10.1
3½ months after the 5th biggest loss6.8

If you want to sell your position in a Dow index fund, and you’re worried that it isn’t at a high enough price, wait a couple of weeks.

Here are the top 20 advances and declines of 2010:

May 103.90May 20-3.60
May 272.85May 6-3.20
July 72.82June 4-3.15
June 102.76June 29-2.65
September 12.54February 4-2.61
December 12.27July 16-2.52
June 22.25August 11-2.49
June 152.10January 22-2.09
July 221.99May 4-2.02
August 21.99January 21-2.01
November 41.96April 27-1.90
September 241.86November 16-1.59
October 51.80May 14-1.51
February 161.68October 19-1.48
August 271.65June 22-1.43
November 181.57April 30-1.42
February 91.52June 24-1.41
January 41.50August 19-1.39
July 131.44August 30-1.39
May 121.38May 7-1.33

Just about every large movement (to the extent that these movements are large) is nullified by a comparable movement on the other side of the ledger. If this doesn’t convince you to buy-and-hold, and not obsess over daily market movements, nothing will.

**This post is featured in the cupid edition of the Carnival of Personal Finance**

and

**Baby Boomers Blog Carnival Eightieth Edition**