If you’re contemplating a profitable investment in the hospitality sector, the Australian hotel industry could be an excellent choice. Australia presents a diverse and appealing market for hotel investors, bolstered by robust demand from both domestic and international travellers, favourable economic conditions, and a supportive regulatory framework.

However, it’s important to note that not all markets are identical, and certain regions may offer greater potential than others. In this article, we investigate the process of conducting a market opportunity analysis for profitable investment in hotel development in Australia. We’ll look at unearthing untapped markets, deciphering market demand and industry trends, and how to master hospitality investments through strategy.

Understanding the Current Hospitality Market Trends

When making informed investment decisions, it’s crucial to first understand the dynamics of the current market demand and to stay abreast of industry trends.

This generally involves a thorough market opportunity analysis to identify profitable investment opportunities – but let’s first take a look at what affects profitability in the current hospitality investment industry.

Key Factors Influencing Profitable Investments

Some of the key trends that are shaping consumer preferences and expectations include:

• Embracing Technology: Integration of contactless check-ins and AI-driven experiences.
• Sustainable Practices: Growing demand for eco-friendly initiatives.
• Experience-Oriented Hospitality: Focus on unique and authentic guest experiences.
• Flexibility in Policies: Adapting to post-pandemic needs with flexible booking and cancellation policies.
• Health and Safety Measures: Rigorous hygiene protocols for guest well-being.
• Remote Work Trends: Catering to the rise of ‘workations’ and remote-friendly accommodations.

Another key element is the new wave of hospitality demand set by Gen Z travellers, who are emerging with unique wants from their hotels, with immersive experiences and authenticity coming out as the top frontrunners among other interesting trends.

By understanding and aligning with these current market trends, investors and stakeholders can position themselves strategically to not only meet but exceed the expectations of today’s discerning travellers.

Unearthing Untapped Markets

When conducting a market opportunity analysis, it’s also important to identify regions that hold the most potential for hotel development, such as suburban development opportunities. This can be achieved by examining various indicators such as:

• Population growth
• Income levels
• Tourism arrivals
• Occupancy rates
• Average daily rates (ADR)
• Revenue per available room (RevPAR)
• Gaps in supply and demand

These indicators can assist in evaluating the current and future performance of the hotel market, as well as gauging the level of competition and saturation. Once you’ve got a handle on which regions you want to focus on, you can delve into your strategy.

Competitive Landscape Analysis

A crucial step in conducting a market opportunity analysis is the strategic positioning you’ll gain through competitive landscape analysis. This involves identifying and evaluating your current and potential competitors based on their strengths, weaknesses, opportunities, and threats (SWOT).

This analysis can guide you in differentiating your hotel product and service offerings from those of your competitors, and in identifying opportunities to leverage their weaknesses or circumvent their threats.

By conducting a thorough competitive landscape analysis, you can strategically position your hotel investment for success in the Australian market. This optimises your return on investment (ROI) and maximises your chances of success in the Australian hotel market.

Evaluating Market Entry Strategies

Evaluation of market entry strategies is your next must-do to optimise ROI. This involves a detailed comparison and contrast of the various strategies available for entering and operating in the Australian hotel market.

There are a few different market entry strategies you can choose from, each with its own pros and cons:

Greenfield Development

This strategy involves constructing a new hotel from the ground up on an unoccupied site. It offers complete control and flexibility over the design and operation of the hotel, and the potential for higher returns and growth.

However, it also necessitates a high capital investment and risk exposure, along with a long lead time and inherent uncertainty.

Brownfield Development

If you’re looking to renovate or redevelop an existing hotel or building on an already occupied site, you might want to opt for a Brownfield Development strategy. It offers lower capital investment and risk exposure, along with a shorter lead time and higher certainty.

However, it may limit the flexibility and control over the design and operation of the hotel and may also constrain the potential for returns and growth due to the limitations of the existing structure and location.

Acquisition

The acquisition simply means purchasing an existing hotel, which offers immediate operation and revenue with an established brand and customer base – quite an appealing prospect to many investors.

It’s important to note that despite its benefits, Acquisition requires a high capital investment and risk exposure and may come with legacy issues such as outdated facilities or a poor reputation.

Franchising

A Franchising strategy involves operating a hotel under a franchise agreement with a hotel chain. It offers lower capital investment and risk exposure, as well as support in design, operation, marketing, and training.

On the downside, Franchising requires payment of franchise fees and adherence to franchise standards and policies, which may limit the flexibility and control over the hotel.

Management Contract

Finally, a Management Contract strategy involves managing a hotel owned by another party under a management contract. It offers lower capital investment and risk exposure, as well as the potential for returns and growth based on performance.

Be careful going down this route, though, as Management Contract strategies require the negotiation of contract terms and conditions and may limit the control over the hotel due to the owner’s involvement.

Complementary Investments: Mixed-Use Developments

In the process of conducting a market opportunity analysis, it’s crucial to consider the potential for complementary investments that can augment the value and viability of your hotel investment.

One such strategy is the incorporation of mixed-use developments, which combine hotel facilities with other uses such as retail, commercial, residential, or serviced apartments. Mixed-use developments can offer several advantages:

Benefits of Mixed-Use Developments

Diversified Income Streams: They can provide additional income streams from varied sources, thereby enhancing the cash flow and return on investment of your hotel project.

• Capital Cost Reduction: By selling off some of the non-hotel components at the end of the construction process, the capital cost of your hotel project can be reduced, lowering the debt burden and risk exposure.

• Demand Increase: The creation of synergies and cross-selling opportunities with other components can boost the demand for your hotel project, enhancing customer experience and loyalty.

• Enhanced Marketability: By creating a vibrant and integrated destination that offers convenience and variety to customers, the marketability and attractiveness of your hotel project can be improved, potentially increasing the occupancy rate and Average Daily Rate (ADR).

However, mixed-use developments also present certain challenges:

Downsides to Mixed-Use Developments

• Complex Planning and Design: Ensuring compatibility and functionality among different components requires more complex planning and design, which can increase the time and cost of your hotel project.

• Sophisticated Management: Harmonising and efficiently coordinating different stakeholders requires sophisticated management, which can increase the operational complexity and risk of your hotel project.

• Careful Market Research: Ensuring alignment and balance among different components requires careful market research and feasibility analysis, which can increase the uncertainty and volatility of your hotel project.

The bottom line: Before deciding to pursue a mixed-use development for your hotel investment, it’s important to carefully weigh the pros and cons.

Mastering Risk Mitigation

Risk mitigation is a critical aspect that demands thorough attention when embarking on a hospitality investment journey. It’s an example of market opportunity analysis areas that are crucial for boosting ROI but that often get either overlooked or aren’t given proper attention.

Risk mitigation involves conducting comprehensive assessments to identify and subsequently mitigate potential risks associated with your investment. The goal is to create a robust strategy that safeguards the venture against uncertainties, ensuring a more secure and resilient investment landscape.

• Financial risks encompass factors like fluctuations in market conditions, interest rates, and currency values, which can impact the profitability of the investment.

• Market risks involve shifts in consumer preferences, changes in demand, or the emergence of new competitors, all of which can influence the success of the venture.

• Operational risks relate to potential challenges in the day-to-day functioning of the hotel, ranging from staffing issues to unforeseen technical glitches.

• Regulatory risks involve changes in laws and regulations that could affect the hospitality industry, requiring a proactive approach to compliance.

Once identified, these risks can be further analysed to understand their potential impact and likelihood of occurrence. This analysis sets the stage for the development of risk mitigation strategies, which may include contingency plans, insurance coverage, diversification of investment portfolios, or negotiation of favourable contractual terms.

Mastering Hospitality Investments: A Winning Strategy

Embarking on a profitable investment journey in the dynamic landscape of the Australian hotel industry demands a strategic and informed approach.

As we’ve explored, market opportunity analysis is a multifaceted process, involving a deep dive into current market trends, identification of untapped regions, competitive landscape analysis, and evaluation of market entry strategies.

In navigating this intricate landscape, Axsia stands ready to provide tailored insights and guidance. Our experienced team is poised to collaborate with investors, ensuring a meticulous and well-informed approach to hotel investments. We can help you with market opportunity analysis templates, additional resources, and done-with-you strategies tailored to your specific needs.

For a personalised consultation and to unlock the full potential of your hospitality venture, get in touch with us today. Your journey to profitable hospitality investments begins here.

There are many challenges in the hospitality industry in Australia – fluctuating demand, technology integration, customer experience management – but perhaps the most challenging for many is attracting and retaining top talent. The aftermath of the COVID-19 pandemic has only intensified this challenge, necessitating a nuanced strategy to bridge the talent gap.

Here, we outline a multifaceted approach required to not only allure but also retain professionals crucial for the sustained success of the industry. In a field as diverse and ever-evolving as hospitality, securing and nurturing skilled individuals is not just a necessity; it’s the cornerstone of lasting prosperity.

Importance of Talent Retention in the Hospitality Industry

Though the doors have thankfully closed on the infamous 2020 lockdown era, the hospitality industry still faces difficulties in its wake.

Experienced hospitality workers shift careers, and international students, a key workforce, hesitate to return to Australia. This dual departure has created a substantial talent gap, posing a threat to the industry’s long-term viability.

Beyond numerical concerns, talent acquisition and retention are crucial for maintaining service standards and operational efficiency. The departure of seasoned professionals leaves an experiential void, while the absence of international students exacerbates the shortage of diverse and adaptable skill sets.

To navigate these challenges, a robust talent retention strategy is essential, not only to address immediate staffing shortfalls but also to fortify the industry against future uncertainties, ensuring sustained success and resilience.

Strategies for Attracting and Retaining Top Talent

Develop a Strong Employer Brand

Creating a positive reputation for your business and emphasising what sets you apart from competitors is crucial in attracting and retaining talent.

Consider factors like company culture, employee benefits, training and development opportunities, and work-life balance. By doing so, you can create a unique identity that resonates with potential employees and sets you apart from other businesses in the industry.

Offer Competitive Compensation and Benefits

Offering competitive pay and benefits packages can help to ensure that your business is attractive to candidates. It is essential to stay up to date with industry standards and to regularly review and adjust your compensation and benefits packages.

This can help to ensure that your business remains competitive and that you can attract and retain top talent.

Provide Opportunities for Growth and Development

Providing opportunities for employees to learn new skills and advance in their careers can help to increase job satisfaction and reduce turnover rates. Think about training programs, mentoring opportunities, and career development paths.

These initiatives help to create a culture of learning and development that encourages employees to stay with your business long-term.

Foster a Positive Work Environment

Fostering a positive work environment is essential for talent retention. Provide a safe and comfortable work environment, promote teamwork and collaboration, and recognise and reward employees for their hard work and contributions.

By doing so, you can create a workplace culture that is supportive, engaging, and fulfilling. This requires a clearly defined business vision and strategy that creates alignment with key stakeholders; employees being one such stakeholder.

Embrace Diversity and Inclusion

It’s essential to show that you value and respect individuals from all backgrounds and create a workplace that is welcoming to all.

Encouraging diversity and inclusion, especially within the hospitality industry in Australia, can help to create a more innovative and creative workforce that is better equipped to meet the needs of a diverse customer base.

Utilise Technology

Technology can be particularly helpful in talent acquisition. Consider using online job boards and social media platforms to advertise job openings and reach a wider audience.

Additionally, using technology to streamline recruitment and hiring processes can help to improve efficiency and reduce time-to-hire.

Assist With Cost of Living

Many hotels and resorts in regional areas face the added challenges of higher costs of living and lack of rental accommodation. This can make it difficult to attract and retain talent, especially in areas that are heavily reliant on transient workers, backpackers, and working holiday visa workers.

To address this challenge, consider offering housing assistance or partnering with local real estate agents to provide affordable rental options for employees.

Offer Flexible Work Schedules

Finally, flexible work arrangements are now just as important to employees as company benefits. Can you offer flexible start and finish times, a nine-day fortnight, or even a four-day work week?

There are plenty of good options being used more and more by competitor companies in the hospitality industry in Australia, so we recommend thinking about what you can offer.

Talent Retention in Regional Areas

In regional areas or untapped suburban markets, it’s common practice to employ hospitality workers from the working holiday visa pool.

These employees will always be with you for a short time, so you need to ensure you have strategies in place to get them productive as quickly as possible and ensure there is little impact when they exit.

Here are some strategies that can help you get the most out of your working holiday visa employees:

• Provide clear job descriptions to ensure that your working holiday visa employees understand their roles and responsibilities. This can help to reduce confusion and ensure that they are productive from day one.
• Offer training and development opportunities to increase the skills, knowledge, and productivity of your working holiday visa employees while reducing the impact when they exit.

Provide feedback and recognition to motivate your international employees and increase their job satisfaction, which in turn can reduce turnover rates.

• Create a supportive work environment to ensure staff feel valued and respected. This can include providing a safe and comfortable work environment, promoting teamwork and collaboration, and rewarding employees for their hard work and contributions.
• Partner with local organisations like universities to offer internships and apprenticeships, local real estate agents to provide affordable rental options, or local businesses to offer discounts and other incentives.

Gain Strategic Success With Axsia

As the hospitality landscape undergoes dynamic growth, Axsia stands ready to collaborate with you in navigating the evolving challenges of talent acquisition and retention.

Our expertise in crafting tailored strategic plans aligns with the unique demands of the hospitality industry in Australia.

By partnering with Axsia, you unlock the potential for not just attracting and retaining top talent but also fostering a collaborative and cohesive industry environment. From cross-functional teams to facilitating communication between corporate offices and local teams, we offer comprehensive solutions.

Speak with our team today to shape a sustainable and thriving future for your business in the ever-changing hospitality landscape.

Embarking on a strategic journey through the intricate landscape of hotel contract renewals is a crucial endeavour for any savvy hotel business owner. Here, unravel the multifaceted dimensions associated with the end of a contract and what it means for your hotel business.

From cultivating a proactive vision for a successful future to navigating the implications of contract decisions and exploring alternative options like the intriguing Manchise Agreement, our guide aims to equip you with the knowledge to master the complexities of this critical phase.

What the End of a Contract Means for Your Hotel Business

Nearing the end of a contract can be a pivotal moment for a hotel business. It signifies the conclusion of a formal relationship between the hotel owner and the brand. This could mean the cessation of brand support, access to proprietary systems, and the potential loss of brand recognition.

However, it also presents an opportunity for the owner to reassess their business strategy and consider new avenues for growth. It’s important to understand the end of contract and renewal provisions in your agreement, particularly key dates for issuing notices.

Proactive Vision for a Successful Future

The renewal of contracts, particularly in the hotel industry, is a significant process that necessitates careful planning and foresight. It’s not uncommon for hotel owners to underestimate the time and effort required for this process, leading to hasty decisions or missed opportunities.

It’s important to be proactive when dealing with ended contracts and contract renewals. Here are some of our top tips to help you stay on top of things:

Act Now, Not Later

Timely decision-making is crucial to minimise operational hiccups. Delays in decision-making can lead to prolonged periods of uncertainty, which can negatively impact staff morale, customer satisfaction, and overall business performance.

Starting the evaluations and planning early allows ample time to assess the current situation, explore options, and negotiate terms with some competitive tension. It’s also important to communicate your decisions effectively to all stakeholders so no one’s in the dark during the in-between contracts phase.

Define Objectives and Do Your Research

Clearly outline what you want from the contract renewal. This could be better terms, lower fees, more support, or even a complete change of brand to leverage alternative market positioning or change of management.

Once you know what you want for the future of the hotel, it’s a good idea to conduct some research to give you a better idea of how to get there. Understanding the current market conditions, competitor strategies, and industry trends will help inform your decisions and strengthen your negotiating position.

Strategic Renewal Planning

Now it’s time for strategy to take centre stage. Strategic renewal planning involves developing a proactive plan and vision well in advance of the end of a contract. It includes assessing the current market conditions, evaluating the performance of the brand, and considering the future goals of the business.

For hotels with a significant Meetings, Incentives, Conferences, and Exhibitions (MICE) business, the lead time for change can be even longer. MICE bookings often occur 1-36 months in advance, so any changes to the brand or operator can significantly impact this segment of the business.

Seek Expert Advice

Finally, consider engaging a consultant or advisor who specialises in hotel contract renewals, like the team at Axsia HTL. We can provide valuable insights, advice, and support throughout the entire process.

Remember, the goal of the renewal process is to secure a contract that aligns with your business goals and sets your hotel up for future success. So, take the time to plan, prepare, and make informed decisions. We promise it’s worth the effort.

Analysing Performance and Alignment

With all of that initial brainstorming, researching, and broad vision planning under your belt, you’ll want to analyse your current hotel performance and how it aligns with your business goals.

The end of a contract is the perfect time to do this, but as we said above, be careful not to wait until then – be proactive and look ahead so you have plenty of time to make changes. Three key areas of franchise performance analysis include:

Considering the Owner’s Objectives

Owners should evaluate the performance of the brand or operator against their business goals. This includes assessing whether the brand aligns with the owner’s vision, whether the operator has met the owner’s expectations, and whether the hotel is competitive in its market.

Employing the Right Assessment Metrics

Several metrics can be used to evaluate the performance of your agreement. These include revenue growth, brand reputation, and customer satisfaction. These metrics can provide valuable insights into the performance of the brand and can inform the owner’s decision about whether to renew the agreement.

Updating the Investment Plan

The end of a contract is an excellent time for owners to update their investment plans. This process should involve thoughtful consideration of all the above issues and potential strategies for moving forward.

Given the complexities involved, this process could take up to a year, especially if it involves transitioning to a new brand or operator. Take your time with this step and invest some time into researching and planning any updates to the investment plan, including elements like risks vs rewards.

Evaluating the Investment Horizon: Sell vs Hold

So, let’s say you’ve done some excellent research and planning well in advance of your hotel’s ended contract and you’ve hit a snag: things aren’t looking feasible to hold onto. The first step is not to panic, and the second is to consider whether selling is actually in your best interests.

When deciding to sell a hotel, it’s essential to consider the current market value of the property, potential buyers, and the implications of the sale on your overall investment portfolio. Can the proceeds of the sale be invested into higher-return assets?

On the other hand, if you decide to hold, you must consider the costs of maintaining the property, the potential for revenue growth, and the benefits of continuing to operate under the existing brand or exploring new affiliations.

Often, knowing whether to sell or hold (and even making that final decision) can be tough to do alone. This is where an experienced asset manager can make the process much more streamlined while offering that much-needed external voice of reason.

Alternative Options in Management Structures: The Manchise Agreement

As the end of a hotel management agreement or franchise approaches, hotel owners are presented with many alternatives. These can range from exploring other brands that may offer different benefits such as stronger brand recognition, superior reservation systems, or more extensive support services, to considering different management structures like direct management, leasing, or entering a new manchise or franchise agreement.

One such innovative alternative to traditional franchises is the ‘Manchise Agreement’, a unique business model that combines the benefits of a management contract and a franchise agreement.

Understanding the Manchise Agreement

The term ‘manchise’ describes a brand management contract that can be converted into a franchise agreement, offering benefits to both the brand and the owner. A manchise is structured as a two-phase collaboration between the hotel owner and the hotel brand.

During the first phase, the hotel brand typically operates the property under a short-term management agreement, say three to five years. This allows the brand to establish its presence and standards at the property.

In the second phase, the investor has the option to flip to a franchise, providing the owner with more control over their investment, while still benefiting from the use of a well-established brand.

Manchise agreements offer several benefits to hotel owners. They often provide lower fees, and the optionality owners are seeking. Owners can leverage brand resources and distribution channels more effectively. Plus, if a brand-managed contract is terminated, the owner retains the rights to the brand, avoiding an expensive process to find an alternative affiliation.

Navigating the Implications of Contract Decisions: How to Deal With Change

If you decide to make changes, large or small, to your hotel investment’s structure or operations, it’s helpful to know how to roll these changes out and navigate them with your wider team. Here’s what you should understand:

Legal and Financial Impacts

The legal and financial implications of a franchise or manchise contract decision includes understanding the terms of the contract, the costs associated with renewing or terminating the agreement, and the potential impact on the hotel’s financial performance, staff recruitment and retention.

Business Disruptions

Changing operators or brands can cause significant disruption to a hotel’s operations. This can include changes in operational procedures, marketing strategies, and brand standards. Owners must consider these potential disruptions and plan for them accordingly.

Managing Staff During Change

Staffing is one of the most critical aspects affected by change. Employees may feel uncertain and anxious about their future, leading to increased turnover and difficulty attracting new staff. Clear communication is essential during this period to reassure staff and maintain morale.

A clear strategy should be established on how to retain your team. This could involve monetary rewards, opportunities for career growth, or involving them in the change process. Whichever strategies you employ, they should be communicated early on, so that the team knows you are including them in the change process. This not only helps to alleviate their concerns but also fosters a sense of belonging and commitment to the organisation.

Navigate Contract Renewals With Axsia HTL

The end of a contract can be a time of uncertainty for hotel owners and investors, but with careful planning and evaluation, it can also be a time of great opportunity. By understanding what the end of a contract means for your business and evaluating your investment horizon, you can make informed renewal or change decisions that align with your long-term business goals.

Get the edge over your own business this year with our professional advice here at Axsia HTL. Our team can help you research, plan, analyse, and initiate changes in line with your goals and objectives. Remember, it’s never too early to start planning. Act now and speak to us today!

Embarking on the journey of hotel renovations is more than just a facelift—it’s a strategic investment that can elevate guest satisfaction and drive substantial return on investment (ROI).

In this blog, we explore the transformative power of strategic hotel renovations, delving into how thoughtful upgrades can not only enhance the overall guest experience but also serve as a catalyst for maximising profitability.

Join us as we unravel the key considerations and effective strategies for ensuring that your hotel renovation meets aesthetic expectations while aligning seamlessly with your business goals.

The Importance of a Robust Business Plan

A business plan is not merely a document; it’s the bedrock upon which any renovation project is built. It meticulously delineates the owner’s vision, objectives, and strategies for the renovation, serving as a roadmap that guides every decision and action.

A well-crafted business plan is a powerful tool that can unearth opportunities to explore new, underserved markets and establish a competitive edge against key rivals. It can illuminate paths to growth and diversification that may otherwise remain hidden.

Hotel business plan example

A hotel strategically situated near a convention centre could contemplate refurbishing its conference rooms. This move would cater to business travellers and event organisers while effectively enhancing its appeal as a premier meeting venue.

Moreover, the same hotel might weigh the benefits of incorporating leisure facilities, such as a swimming pool or spa. These additions could serve dual purposes: they could be used for events, thereby expanding the hotel’s service offerings, and they could attract a new demographic – the leisure market.

Short Term vs Long Term Hotel Business Plans

Hotel operators typically formulate annual business plans. These short-term action blueprints detail the specific tasks, milestones, and steps that your business intends to undertake over the forthcoming twelve months or so, driving your business forward with precision and purpose.

Conversely, long-term strategic plans cast an eye on the distant horizon, outlining your broad strategies for growth. They provide a panoramic view of how the business will reach its objectives, typically spanning a 3–5-year timeline, and occasionally even longer.

Longer-term plans can be bigger, bolder, and more fruitful for your hotel business. You can develop a clear, deep strategic vision, optimise capital expenditure through an asset manager, and unlock real potential with investment growth.

Market Analysis: Components of an Effective Plan

A comprehensive business plan should also analyse key options and scenarios, as well as the current market. This analysis is crucial as it informs decisions, guides the renovation process, and helps ensure that the renovated property meets the needs and preferences of its target customers.

Consider the Owner’s Investment Strategy

Before any market analyses or renovation plans happen, we need to consider the owner’s investment strategy to create an effective business plan. This includes the required ROI and investment horizon.

An owner with a short-term investment horizon might focus on quick, cosmetic upgrades that can boost the property’s appeal and value, while an owner with a long-term investment horizon might invest in extensive renovations that can drive sustained growth over time.

Identify Target Customers

Now it’s time to identify the key target customers. These are the individuals who are most likely to stay at the hotel after the renovation. For instance, if a hotel is located near a convention centre, the key target customers might be business travellers and event organisers.

Understanding who your customers are, their needs, preferences, and behaviours, is crucial for making informed decisions about renovations. This information can be gathered through market research, customer surveys, and data analysis.

Assess the Current Market Position

The next step is to assess whether the hotel currently serves its target market effectively. This involves analysing customer feedback, occupancy rates, and other relevant data. Identify any gaps in customer experience satisfaction and address them in the renovation plan.

For example, if the target market is business travellers, does the hotel offer high-speed internet, comfortable workspaces, and convenient business services? On a larger scale, if the target customers are couples and empty-nesters, a spa or wellness centre could be considered.

Explore New Market Opportunities

In addition to serving the current market, it’s important to explore new market opportunities. These could be under-serviced markets that the hotel can tap into with a new or revitalised product.

For example, if there is a growing demand for eco-friendly accommodations in the area, the hotel might consider incorporating green technologies and practices in the renovation. This could involve identifying underserved markets, emerging trends, or changes in customer behaviour.

Evaluate Hotel Class

It’s beneficial to evaluate whether the hotel is in the right class or if it could be better after the renovation. This involves comparing the hotel with its competitors and assessing its unique selling points.

If the hotel has the potential to offer a superior product or service, the owner might consider elevating it into a higher-yielding class through renovation.

Conduct a Thorough Financial Analysis

Finally, and perhaps most importantly, is the financial analysis. This critical component of a hotel business plan provides a quantitative evaluation of the potential return on investment from different renovation scenarios. This could include:

• The ‘do nothing’ scenario: What happens to RevPAR and overall profitability if no renovations are made? This provides a baseline for comparison with other scenarios.
• Minimal capex scenario: What is the potential return if only minimal capital expenditures are made to maintain the asset for RevPAR growth?
• Significant capex scenario: What is the potential return if significant capital is invested to achieve structural re-positioning against the current competitive set or an elevated competitive set?

By conducting a thorough financial analysis, owners can make informed decisions about the scale and scope of the renovations, ensuring they align with their overall investment strategy and business objectives.

Designers: Creating a Strategic Vision Alignment

A pivotal element in any hotel business plan for renovations must be to create and maintain clear strategic vision alignment between the owner and the designer. You want to aim for a collaborative approach to development for optimal success.

Designers bring invaluable expertise in aesthetics, functionality, and the latest trends, shaping the look and feel of the renovated property. Their input can transform a space, making it more appealing to guests and potentially driving revenue per available room (RevPAR) growth.

While designers of course bring valuable insights and ideas, hotel owners must maintain a clear focus on their strategic objectives throughout the renovation process. Design decisions should not be made in isolation but should align with the broader business strategy and vision.

For instance, designers might suggest improvements that could enhance the current product offering and achieve linear RevPAR growth. This could include updating room decor to reflect the latest trends, improving the layout of public spaces to enhance guest flow, or upgrading amenities to meet current guest expectations.

While these improvements can boost the hotel’s appeal and performance, they represent an evolution of the existing offering rather than a significant shift. This is what is meant by ‘linear RevPAR growth’ – it’s about making better what is already there.

By balancing the expertise of designers with a clear understanding of their strategic objectives and market opportunities, owners can make informed decisions that maximise the return on their renovation investment.

The Power of Branding and the Art of Rebranding

Renovations aren’t only about brick-and-mortar revamps. When we discuss hotel renovation strategies, and particularly when we give hotel business plan examples, one element that sometimes comes as a surprise is branding.

Branding (or rebranding, as we’ll get to soon) is another kind of renovation that can significantly affect guest experience and ROI. In the competitive landscape of the hotel industry, branding is not just a tool, but a potent weapon. A robust brand doesn’t merely draw in loyal customers; it also allows for commanding premium room rates.

How Can a Rebrand Improve a Hotel?

During a renovation, you should determine whether the existing branding resonates with the property’s target market and positioning. In certain scenarios, a rebrand might be the key to unlocking new customer segments and driving superior returns.

This could necessitate a comprehensive revamp of the hotel’s visual identity, encompassing elements like its logo, colour scheme, and interior decor. It could also mean redefining the hotel’s mission, values, and unique selling propositions.

While not easy to do, a successful hotel rebrand can infuse a fresh lease of life into a business, enhancing its appeal to its target customers and distinguishing it from its competitors. If you’re considering rebranding, whether it’s a subtle refresh or a radical overhaul, we recommend seeking the services and guidance of a marketing agency that specialises in the hospitality industry.

Unlock the Power of Strategic Planning With Axsia HTL

A well-crafted business plan is incredibly effective at honing the owner’s focus and narrowing down the brief for the designer, project manager, and potential lenders.

By adopting a strategic approach to planning and executing hotel renovations, owners can maximise their return on investment and pave the way for the long-term success of their property.

If you’re interested in elevating your hotel business plan and striking gold on your ROI with targeted renovations, reach out to us at Axsia. Our expert team can create a comprehensive business plan that ticks all the boxes and exceeds your expectations in a range of diverse areas.

Interested to see more? Check out our portfolio of major project developments to get a feel for how Axsia HTL can elevate your hotel business.

Embarking on a career in hospitality not only promises intrinsic rewards but also opens doors to a global stage where you can craft extraordinary experiences for diverse travellers. Beyond the realm of guest service, it offers pathways into realms such as real estate, leadership, and finance, all intricately tied to the dynamic hotel industry.

In this blog, we delve into the world of hospitality management courses, shedding light on the premier hotel schools and courses that serve as launching pads for your career journey. With these leading courses, you’ll develop the skills required to run a hotel and manage a hospitality business.

From exploring the crème de la crème of educational institutions to understanding why a hospitality manager course is an invaluable investment, we aim to guide you through the avenues that can elevate your career prospects.

The Best Hotel Schools Worldwide

The first step in undertaking hospitality management courses is finding the right school for you. These institutions not only offer rigorous academic programs but also provide immersive experiences that shape well-rounded professionals.

These are some of the best internationally acclaimed hotel schools that are well worth investigating for both their on-campus and online course offerings. These schools offer a variety of courses available in full-time, part-time, and online modes, so it’s important to do your research to find something that would suit your lifestyle and budget.

Credit: Ecole Hoteliere de Lausanne

Ecole Hoteliere de Lausanne (EHL), Switzerland

Considered to be the best hospitality management school worldwide, Ecole Hoteliere de Lausanne (EHL) had to be at the top of our list. This prestigious school is consistently ranked number one by QS World University Rankings for Hospitality and Leisure Management.

EHL has been a pioneer in hospitality management education since 1893. The school offers exceptional hospitality management courses and degree programs, with units of study in both Switzerland and Singapore, giving you that truly international experience and a launching pad of opportunities.

Cornell University, New York – School of Hotel Administration (SHA)

Cornell University’s School of Hotel Administration (SHA) is based out of the Johnson Business School (Nolan), one of the top business schools in the world. Founded in 1922, it was the world’s first four-year intercollegiate school devoted to hospitality management.

Offering undergraduate, graduate, and executive education programs, they have by far the most extensive hospitality course selections available. The courses are offered in a residential format, online, or a combination of both, providing great flexibility for students. Cornell also offers an MBA and residential programs to complement your learning journey.

SHA also offers a program in collaboration with Peking University Shanghai, giving students opportunities to learn in a dual language environment and exposure to 30% of classes being held in Ithaca and New York.

Oxford School of Hospitality Management

Known for its strong focus on research and its close ties with the hospitality industry, the Oxford School of Hospitality Management offers undergraduate and postgraduate studies in Tourism, Event Management, and Hospitality.

The school is closely linked to the Oxford Brookes Business School, offering complementary courses that can enhance a hospitality manager course.

Compulsory practical placement complements each of the courses and close connections to the luxury hotel portfolio in London means a strong foundation for future career paths.

Hotelschool The Hague, the Netherlands

Hotelschool The Hague has a strong emphasis on practical experience as well as academic learning. You’ll discover a range of study options including a fast-track degree program if you have previous studies under your belt.

At The Hague, it’s compulsory to live on campus for the first year. This builds a strong community-focused educational environment and forms the basis for the strong alumni for the future.

There is an onsite hotel, restaurant, and café to gain valuable experience from the beginning of your learning journey.

The Blue Mountains International Hotel Management School

As Australia’s leading hotel management university, the Blue Mountains International Hotel Management School run through Torrens University offers international tourism, hospitality, and hotel management courses and degrees.

A variety of scholarships are available for eligible students, and the faculty is very well connected with the global hotel companies in Australia to assist with compulsory industry placements.

Just like its European counterparts, The Blue Mountains School boasts a strong alumni that further proves its position among the top international hospitality management institutions. This is by far the most well-recognised dedicated hotel school in Australia and offers long-term career prospects for its graduates

Hospitality Courses at Australian Universities

In addition to the Blue Mountains International Hotel Management School, most Australian universities offer areas of study for entry into the hotel industry. But what course is hospitality management, and what should you look for when choosing a university?

Degrees in International Tourism and Hotel Management are the way to go. Griffith University has a very well-regarded Department of Tourism, Sport, and Hotel Management that’s well worth consideration.

Other institutions and courses to consider include:

• The University of Queensland’s Tourism, Hospitality, and Event Management courses
• James Cook University’s Tourism, Hospitality, and Events programs
• Victoria University’s Tourism and Hospitality Management major
• The University of Wollongong’s Advanced Diploma of Hospitality Management
• Southern Cross University’s Tourism and Hospitality Management courses
• Bond University’s Bachelor of International Hotel and Tourism Management

Additional Areas of Study to Consider

Outside of specific hospitality management courses, you don’t just have to undertake a specific course in hospitality to enter the exciting world of hotels. Specialised degrees in Finance, Economics, and Marketing all offer excellent groundwork for a career across a multitude of roles within the industry.

Specialised degrees also give you an alternative career path to more conservative mainstream roles across accounting firms, consulting, and agencies. Joining the hospitality industry gives you exposure to a much broader spectrum of work functions and opportunities. These careers exist in standalone hotels, global hotel companies, and corporate and regional offices.

If you have already embarked on your career in the hospitality industry and would like to further expand your career prospects, including management and leadership skills, we recommend that you look at an MBA course to solidify your management and leadership skills.

If you’re a senior leader, department head, functional leader, or newly promoted manager, we would recommend you complete studies around the following areas. These will give you valuable knowledge to ensure you have an all-round skill set in hospitality management.

Strategic Hospitality Management for Long-Term Value Creation

Strategic management in hospitality involves making decisions and taking action to gain a competitive advantage and achieve organisational goals.

This course would cover topics such as strategic planning, competitive analysis, resource allocation, and performance measurement. It would also delve into the importance of innovation and change management in maintaining long-term value.

Revenue Management and Pricing for Increased Profitability

This course would focus on the principles of revenue management and pricing strategies in the hospitality industry. Topics would include demand forecasting, dynamic pricing, yield management, and distribution channel management.

The goal is to maximise revenue and profitability while maintaining high levels of customer satisfaction.

Guest Experience Management for Loyalty and Career Growth

In this course, students would learn about the importance of providing exceptional guest experiences. Topics would include service quality management, customer relationship management (CRM), customer experience management (CEM), loyalty programs, and handling customer complaints.

The course would also cover how delivering excellent guest experiences can lead to career growth in the hospitality industry.

Hospitality Financial Management for Effective Budgeting

This course would provide students with an understanding of financial management principles relevant to the hospitality industry. Topics would include budgeting, cost control, financial analysis, capital budgeting, and investment decision-making.

The aim is to equip students with the skills needed to make informed financial decisions and effectively manage a hospitality business’s finances.

Leading Hospitality Teams for Managerial Excellence

This course would focus on leadership and team management in the hospitality industry. Students would learn about different leadership styles, team dynamics, conflict resolution, and motivation strategies.

The course would also cover human resource management topics such as recruitment, training, performance appraisal, and employee retention.

Traineeships After Graduation

Most major global companies also offer corporate traineeship programs across a spectrum of positions in the hotel. Students normally gain access to these after they have completed their bachelor’s degree.

Keep this in mind as a stepping stone into a mid-level management position that may give you excellent exposure to departments within the hotel that you may not otherwise have experienced.

Speak to Axsia HTL for Industry Insights

Hospitality is one of the most resilient and adaptable industries to sink your teeth into. By studying for a bachelor’s degree in Hotel Management or an equivalent specialised area, you will learn valuable skills that will set the foundation for an exciting career path and can be transferred into a variety of industries.

If you’re interested in learning more about how to enter into the dynamic and exciting world of hospitality, feel free to get in touch with us at Axsia HTL for expert insights.

As we near the end of 2023, you might have noticed some big ripples of change spanning the Australian hotel market. Big brands are of course still powerful, but many are starting to feel strain – simply put, their speed of growth is exceeding their ability to succeed with the necessary support for all of their booming properties.

Ask any of us here at Axsia HTL whether traditional hotel management agreements (HMAs) are still appropriate to cater to the current hospitality climate, and you’ll get a quick and resounding ‘no’. So, what’s outweighing these structures? You guessed it – franchise agreements, which we believe are poised to surpass HMAs next year and beyond.

In this article, we explore the emerging trends and challenges in HMAs as big brands start to feel the pressure of performance. We shed light on the advantages of franchise agreements and offer key insights into the market outlook for 2024.

Hotel Management Agreements (HMAs)

HMAs have long been the conventional framework for hotel ownership and operation. Traditionally, big brands wielded considerable influence in the Australian market through these agreements, and of course many still do.

While these agreements have served as a cornerstone for hoteliers, however, the rapid growth of big brands has resulted in a stretched operational landscape, where the challenge lies in providing the necessary support to optimise each hotel’s potential.

The landscape is evolving, and hotel owners are reassessing the efficacy of traditional HMAs in the contemporary environment. Axsia HTL, with our pulse on industry dynamics, echoes the sentiment that the traditional HMA model may no longer be universally fit for purpose.

As the market seeks more flexibility and autonomy, hoteliers are exploring alternative arrangements that can better align with their strategic goals. Stepping up to the plate here are franchise agreement contracts.

Franchise Agreements

As the hospitality industry charts a new course, hotel franchising emerges as a beacon of strategic advantage. What sets franchise agreements apart is their unique combination of brand and distribution strength coupled with operational autonomy.

This dynamic equilibrium allows hotel owners to leverage the global recognition of a brand while retaining the flexibility to shape and execute their own strategic vision.

At Axsia HTL, we view franchise agreements not just as contractual arrangements but as catalysts for unlocking better financial yield. The landscape of the hospitality industry is evolving, and franchise agreements offer a refreshing paradigm that aligns with the changing expectations of both hotel owners and modern travellers.

How Does a Franchise Agreement Work?

A franchise agreement is a contractual arrangement between a franchisor (the brand owner) and a franchisee (the individual or entity operating the business) that outlines the terms and conditions under which the franchisee can operate a business using the franchisor’s brand, products, and business model.

Here’s a breakdown of how franchise agreements typically work:

• Brand Licensing: The franchisor grants the franchisee the right to use its established brand, trademarks, and business model. This includes the use of logos, trade dress, and other intellectual property.
• Financial Arrangements: The franchisee usually pays initial fees for the right to use the brand and receives training and ongoing support. Additionally, ongoing royalties or a percentage of sales may be required.
• Training and Support: The franchisor provides training to the franchisee on how to operate the business successfully. Ongoing support, including marketing, operational guidance, and assistance, is often part of the agreement.
• Operating Standards: The franchise agreement establishes specific standards and guidelines for the operation of the business. This ensures consistency in branding, products, and services across all franchise locations.
• Duration and Renewal: The agreement specifies the duration of the franchise relationship. Franchisees may have the option to renew the agreement at the end of the term, subject to certain conditions.
• Territorial Rights: The agreement may define the geographic territory within which the franchisee can operate. This helps prevent conflicts between franchisees in nearby locations.
• Exit Clauses: In some cases, the agreement includes provisions for terminating the franchise relationship, either by the franchisor or the franchisee, under certain conditions.
• Updates and Changes: Franchise agreements often include clauses allowing the franchisor to update systems, products, and operating standards to keep the business model current.

Can You Get Out of a Franchise Agreement?

The ability to terminate a franchise agreement in Australia typically hinges on the specific terms outlined in the contractual agreement. It’s important to have a thorough understanding of these terms, which may include exit clauses, notice periods, and potential financial implications.

Legal considerations also play a crucial role, and hotel owners are advised to seek professional legal counsel. This helps to navigate the complexities of franchise agreement termination within the Australian legal context.

Axsia HTL empowers hoteliers with the knowledge and insights necessary to make informed decisions, ensuring that any decision to exit a franchise agreement aligns seamlessly with both the legal requirements and the broader strategic goals of the hotel owner in the dynamic Australian hospitality market.

Emerging Management Trends

As we’ve outlined above, the realm of hotel management agreements has long been dominated by big brands, wielding significant influence within the Australian hospitality market. These prominent brands have played a pivotal role in shaping the industry, offering recognisable names and established standards.

We’ve identified an interesting trend here—these big brands are experiencing rapid growth that, counterintuitively, pose challenges in delivering the requisite support to unlock the full potential of each hotel under their umbrella.

Another key trend we’re seeing is the availability of more flexible franchising options. This includes leveraging experienced operating teams or hotel asset management companies for property management, allowing hoteliers to both do things their own way and to gain valuable time and resources back thanks to this expert outsourcing.

Additionally, the emergence of manchise agreements allows the conversion of a brand management contract to a franchise agreement post-stabilisation. Manchise agreements offer a great strategic middle ground for hotel owners, providing the initial support and expertise of a management company and the long-term benefits of a franchise relationship.

Utilising the manchise agreement approach allows for a smoother evolution as the property matures and aligns with the owner’s broader business goals, something the traditional HMA system now seems to lack.

Challenges for Big Brands

The accelerated expansion of major brands, while a testament to their success, has resulted in a stretched operational capacity. The sheer scale of their growth has made it increasingly difficult for these brands to provide the necessary support and attention required by individual hotels.

Simply put, as the expansive portfolio demands a considerable allocation of resources, it’s becoming increasingly difficult to ensure that each property performs to expectations – and many are already falling short.

This scenario underscores a critical observation made by Axsia HTL Managing Director David Simpson: the traditional approach embodied by HMAs, wherein big brands centrally manage numerous properties, is encountering limitations that are not going to simply resolve themselves.

The rapid growth has necessitated a reevaluation of the effectiveness of this model, especially concerning personalised support and strategic guidance for individual hotels. As the industry dynamics evolve and hotels seek tailored approaches to cater to diverse markets and consumer preferences, the rigid structure of HMAs is proving to be less conducive to the nuanced demands of each establishment.

In essence, the conventional HMA framework, while successful on a grand scale, is encountering complexities as the industry diversifies. This is prompting a paradigm shift towards more adaptable and tailored management arrangements.

The Franchise Advantage

Franchise agreements today extend beyond a mere shift in management dynamics; they represent a strategic evolution in the hospitality landscape. Thanks to our forward-thinking approach, we recognise the intrinsic benefits that franchise agreements bring to the table, and our clients agree with us.

These agreements blend the robust brand recognition and expansive distribution networks of established brands with a crucial element—operational autonomy. This combination offers owners the dual advantage of leveraging a well-established brand identity while retaining the flexibility to conceive and execute their unique operational strategies.

According to David, franchise agreements emerge as a potent catalyst for elevating financial performance. The symbiotic relationship between brand strength and operational independence cultivates an environment conducive to maximising financial yield.

Franchising offers owners a pathway to strike a harmonious balance between two core elements: the credibility and market presence of a recognised brand, and the nimbleness required to adapt to evolving market trends and consumer preferences.

The autonomy embedded in franchise agreements empowers owners to curate distinctive guest experiences. This is a pivotal factor in attracting and retaining the modern traveller who seeks authenticity and connection, and who is more willing to spend money on experiences rather than solely hotel rooms.

Appealing to Modern Travellers

It’s no secret that Gen Z and millennials are significantly influencing market dynamics. Unlike previous generations, these travellers prioritise experiences over traditional notions of property ownership.

To stay relevant and competitive, hotels must adapt to meet the distinctive needs and expectations of Gen Z and millennial demographics. This involves a level of flexibility and priority shift that HMAs just aren’t designed to facilitate.

Experiences now dominate the younger traveller’s itinerary. The focus extends beyond providing merely a place to stay; it involves crafting immersive and memorable moments that contribute to the overall journey.

To capitalise on this trend, we recommend utilising the more flexible franchise agreement to create and deliver exceptional customer experiences that resonate with the values and interests of these modern travellers. This approach aligns with the broader trend in the industry where the emphasis is shifting from tangible assets to intangible experiences.

Market Outlook for 2024

David and the Axsia team predict a robust year for the Australian hospitality landscape in 2024, with strong Revenue per Available Room (RevPAR) figures and room rates expected to rise. Factors contributing to this optimistic outlook include:

• The return of international business and corporate travellers;
• The resurgence of traditional peak and off-peak seasons;
• Consumer willingness to invest in enhanced accommodation experiences, and
• A boom in the emerging franchise agreement contract trend.

Finally, the need for a nuanced, agile, and supportive approach to hotel management will become paramount in 2024 and beyond. Thinking proactively and collaboratively will help steer the industry towards models that can better harness the unique potential of each property within a brand’s portfolio.

Elevate Your Business With Axsia HTL

We anticipate a transformative year in the Australian hospitality sector, with franchise agreements becoming the preferred model. At Axsia, we encourage owners and developers to align with the evolving needs of modern travellers, emphasising lifestyle brands as the key to success.

As interest rates, building costs, and loan-to-value ratios continue to influence the market, strategic partnerships and flexibility in management agreements will be instrumental in navigating the opportunities and challenges that lie ahead.

Looking to elevate your hotel management model next year? Speak to us about how our asset management services can transform your business and position it at the forefront of the Australian market.

Navigating the dynamic terrain of the hotel industry requires a keen understanding of the pivotal areas that hold the key to success for your investment. In this ever-changing landscape, where competition is fierce and guest expectations are constantly evolving, orchestrating effective strategies becomes more critical than ever. Success is not merely a product of chance but rather the result of meticulous planning, foresight, and unwavering dedication.

For hotel owners and operators, the journey toward prosperity necessitates a collaborative approach, where the collective efforts of key stakeholders, including owners, asset managers, and brand operators, converge harmoniously. Together, they forge a path that defines objectives, nurtures potential, and steers the team towards the realisation of their shared vision.

In this article, we delve deep into the core aspects of how to run a hotel business successfully. We explore the pivotal success factors and strategies that have the potential to transform your hospitality venture into a thriving and enduring establishment. Join us as we unravel the roadmap to prosperity and discover how the amalgamation of these essential elements can lead your hotel business to new heights.

Effective Human Resource Planning

The hotel management landscape has seen significant expansion in recent years, with a surge in development and signings, yet without a proportional increase in corporate office resources. This growth imposes additional pressure on Hotel Executive Teams to devise and implement a unique strategy for their individual hotel.

Due to the rapid expansion of hotel companies, expertise and experience within hotels have become scarce commodities. It’s imperative for hotel owners and companies to invest in effective human resources to ensure the longevity and success of their business. Hotel operators should:

• Invest in on-site leadership: This includes making strategic appointments of a General Manager and Executive Committee Team with an emphasis on commercial expertise to drive performance.
• Offer mentoring and support: First-time General Managers and Executive Team members can benefit through “buddying up” with a senior colleague or with regular mentoring programs.

Asset Managers also play a crucial role in mentoring. For instance, Axsia HTL actively mentors General Managers and Executive Committees, which we consider key to the success of a hotel team’s performance.

In the face of global competition for talent across all industries, effective human resource recruitment and retention strategies have become more critical than ever for companies.

Financial Planning for Profitability

As the annual budgeting cycle commences, hotels and hotel operating companies are tasked with preparing a business plan for the upcoming 12 months. While this is a requirement of Hotel Operators, it’s often seen that hotels merely go through the motions of preparing a budget or business plan.

These plans, by nature, focus on the short term (12 months) and are designed to meet the operator’s targets and appease the owner. However, owners typically have longer-term objectives for their assets. It’s incumbent upon Hotel Operators to develop a strategic plan that extends beyond the 12 months.

This plan should aim to grow EBITDA and increase the asset’s value over the long term, which may involve investing more in the short term for long-term financial returns. For instance, a new or renovated hotel might increase its investment in sales and marketing as it stabilises.

How Much Does It Cost To Run A Hotel?

When it comes to the intricate web of expenses in running a hotel, the numbers can be quite staggering. Beyond the initial investment, a hotel’s daily operations entail various costs that significantly impact its profitability and long-term viability. These expenses encompass a wide spectrum, ranging from employee salaries and utility bills to maintenance and marketing expenditures.

Salaries often constitute one of the most substantial portions of a hotel’s operational costs. From front-of-house staff like concierges and housekeeping personnel to back-of-house teams such as kitchen staff and administrative employees, the workforce is a cornerstone of any hotel’s service delivery. Employee compensation is not limited to basic wages; it extends to benefits, training, and, in some cases, incentive programs.

Utilities, including electricity, water, heating, and cooling, are another major cost category. Hotels consume significant quantities of these resources to maintain guest comfort, often leading to substantial utility bills. Moreover, hotels must adhere to sustainability practices to minimise their environmental footprint, necessitating investments in energy-efficient systems and practices.

Maintenance is yet another significant cost consideration. Ensuring the upkeep and aesthetics of a hotel property is paramount, from interior furnishings to exterior landscaping. Repairs, renovations, and preventive maintenance measures are essential to safeguard the property’s value and guest experience.

Marketing is a cost that no hotelier can afford to overlook. To attract guests, boost occupancy rates, and enhance their brand’s reputation, hotels need to invest in various marketing channels. These may include digital marketing efforts, advertising campaigns, and public relations strategies, among others.

Sustainable Resource Management

The hotel industry accounts for 1% of global carbon emissions, and research predicts that hotels must reduce carbon initiatives by 90% by 2050 to have any impact on their carbon footprint. Embracing sustainability can also result in financial benefits for hotels, and these days, it forms the basis of how to run a hotel effectively.

Sustainability initiatives in the hotel industry encompass a broad spectrum of practices aimed at reducing environmental impact. These include a concerted effort to minimise energy consumption through measures like the use of energy-efficient lighting, heating, ventilation, and air conditioning systems. Additionally, hotels can invest in renewable energy sources, such as solar panels, to further diminish their reliance on fossil fuels.

Addressing food and plastic waste is another crucial aspect of sustainability. Hotels can implement waste-reduction strategies, such as optimising food portion sizes, donating excess food to local charities, and incorporating composting practices. Reducing single-use plastics in guest amenities and replacing them with eco-friendly alternatives not only curbs plastic pollution but also elevates a hotel’s sustainable image.

Water conservation is paramount, given that the hotel industry consumes vast amounts of water in its daily operations. Implementing low-flow fixtures, regular maintenance checks to repair leaks, and utilising greywater systems for non-potable uses all contribute to significantly decreasing water consumption.

The digitalisation and automation of the customer experience also represent an essential element of sustainable resource management. By minimising paper use through digital check-in and check-out processes, automating lighting and climate control in guest rooms, and employing smart energy management systems, hotels can streamline operations while reducing their environmental footprint.

Streamlining Operations with Technology

The profound impact of the COVID-19 pandemic, along with the emergence of digital-first Gen Z travellers, has catalysed a digital revolution within the hotel industry. Automation and technology enhancements have swiftly transitioned from being optional to becoming indispensable tools for Customer Experience Management (CEM).

One of the most visible changes has been the implementation of contactless solutions, which include mobile check-in and QR codes for menus and ordering. These innovations have drastically reduced physical touchpoints and facilitated a seamless and secure guest experience. Mobile check-in, for instance, allows guests to bypass crowded front desks and head straight to their rooms, while QR codes minimise the need for physical menus and facilitate touchless dining.

Behind the scenes, back-of-house operations have also embraced automation. Functions such as rostering, payroll management, and purchasing processes have been optimised through the integration of technology. Rostering and workforce management software allow hoteliers to efficiently allocate labour resources while adhering to labour laws and regulations. Automated payroll systems simplify salary disbursements and tax reporting, reducing administrative overhead.

Moreover, technology has redefined the procurement and inventory management processes. Automated purchasing systems help hotels optimise their supply chains, monitor inventory levels, and secure the best possible prices for goods and services. This increased transparency within the supply chain ultimately translates to cost savings for the hotel.

Perhaps the most profound impact of this digital transformation is the transition to paperless processes, leading to cost reductions and operational efficiencies. Many hotels are now operating in an environment where paper is replaced by digital counterparts, resulting in streamlined workflows and enhanced guest services.

Further, the data collected through these digital solutions offer an invaluable resource for hotels. The ability to collect, interpret, and analyse data opens new avenues for revenue management, operational optimisation, and sales and marketing strategies. With access to real-time data, hotels can make informed decisions, identify trends, and tailor their offerings to meet the evolving demands of guests.

Customer Relationship Management (CRM) in the Digital Age

In the age of digitalisation, customer relationship management (CRM) has become a crucial aspect of hotel management and forms a critical component of how to run a hotel.

With the help of CRM systems, hotels can gather and analyse customer data to understand their preferences and behaviours better. This information can be used to personalise the guest experience, leading to higher customer satisfaction and loyalty.

Moreover, CRM systems can automate various tasks such as sending out promotional emails or reminders for upcoming stays, freeing up staff time for other important tasks. However, it’s essential to ensure that the CRM system is integrated with other hotel systems for seamless operations and data flow.

Marketing and Branding

In an increasingly competitive market, the effective marketing and branding of a hotel are paramount to attracting guests and establishing a strong brand reputation. A well-structured marketing strategy can significantly impact a hotel’s visibility, customer engagement, and ultimately, its bottom line.

Digital marketing strategies play a pivotal role in modern hotel marketing efforts. These encompass a range of practices, including:

• Search Engine Optimisation (SEO)
• Social Media Marketing
• Content Marketing
• Paid Campaigns
• Search Engine Marketing (SEM)
• Influencer Marketing

Organic activity on social media platforms, such as Facebook, Instagram, and Twitter, provides an invaluable means of connecting with a wider audience. Hotels can leverage these platforms to create engaging content that fosters guest interaction and builds brand loyalty. Regular posts, stories, and live streams keep followers informed and engaged while reinforcing the hotel’s brand identity.

Reputation management is another critical aspect of maintaining a strong brand image, which is at the crux of how to run a hotel business successfully. Hotels should actively seek guest feedback, both positive and negative, to understand their experience and make improvements where necessary. Addressing guest concerns promptly and professionally demonstrates the hotel’s commitment to providing a high-quality guest experience.

Crisis Management and Resilience Planning

The hotel industry has weathered numerous crises in the past, including the Global Financial Crisis (GFC), SARS, 9/11, and most recently, COVID-19. These crises can disrupt the industry on multiple levels, be they global in nature or localised to an individual hotel.

Local crises can include safety and security breaches, loss of key personnel to labour strikes, technology failures, or reputational crises due to negative media coverage.

When it comes to how to run a hotel business successfully in the face of such crises, it’s crucial for hotels to have a comprehensive Crisis Management Plan in place. This plan should include robust procedures that identify potential risks, establish a chain of command, define roles and responsibilities, and set up a communication protocol.

The industry has adapted and learned from each crisis it has faced. A key takeaway is that the industry must be prepared, have robust processes in place, and most importantly, be nimble when a crisis arises. Some owners believe that their obligations as a director have been transferred to hotel operators under the terms of the contract, however this is not true, owners and directors still have the normal directors’ liabilities.

To ensure business continuity in the face of such situations, hotels need to have contingency plans in place. These could involve having insurance coverage, maintaining a crisis management team, and regularly updating and testing emergency response plans. In essence, resilience and adaptability are key to navigating the ever-changing landscape of the hotel industry.

How To Run A Hotel Business Successfully

Managing a successful hotel business involves careful planning and management of various resources. By focusing on these critical success factors, hotels can drive performance, increase profitability, reduce costs, enhance guest experience, ensure business continuity, and build a strong brand reputation.

Remember that success in the hotel industry is not achieved overnight but is the result of consistent efforts over time. Stay focused on your goals, be adaptable to changes in the market environment, and strive for continuous improvement in all areas of your business.

For tailored assistance and guidance in running your hotel successfully, contact Axsia HTL. We are here to help you navigate the ever-evolving hospitality landscape and achieve your goals.

As the hospitality industry evolves, staying ahead of the curve is crucial for sustainable success. Axsia HTL’s Director of Hotels, Daniella Tonetto, recently took the stage at the HICAP ANZ event to explore emerging trends and opportunities.

Daniella led an insightful panel discussion featuring luminaries from the field that delved into the intriguing topic of Gen Z travel trends and young people’s influence on the hotel industry.

This increasingly mobile and discerning demographic is reshaping the travel landscape. They seek immersive experiences that connect them with their destinations. Culture, art, wellness, and sustainability are paramount to this generation, making it essential for hotels to cater to their evolving preferences.

So, what exactly are the emerging trends dominating the Gen Z population, and how can hospitality leaders keep up to not only accommodate them but exceed their expectations? Let’s look at some key points and how we can all stay ‘on trend’ in the competitive hotel industry.

Gen Z Travel Preferences

Gen Z, born between 1997 and 2012, is already making a significant impact on the tourism industry as the newest generation of travellers. This tech-savvy generation, having grown up with technology from a young age, has unique preferences and behaviours that hoteliers must consider in order to cater to their needs and develop loyalty.

Understanding Gen Z’s travel preferences is crucial for hotels to stay relevant and thrive in the evolving travel landscape.

Embrace Technology

Gen Z, as digital natives, embraces technology throughout all stages of their travel journey. They’re smart and adaptable, relying on mobile devices and social media for travel inspiration, research, booking, and cancellations or modifications.

Hotels must provide a seamless digital experience, with mobile-friendly websites, easy online bookings, and personalised interactions through social media platforms. Think along the lines of:

• Digital check-in and check-out
• Premium online booking services
• Online guest portals
• Hotel apps
• QR codes on-site for things like room service, contest entries, and hotel amenities information
• Quality interactive websites
• Active presence on social media

Safety and Security

According to the European Travel Commission (ETC), safety and security rank high on Gen Z’s list of priorities when choosing a travel destination.

Hotels can cater to this preference by emphasising their safety measures, implementing contactless check-ins, and showcasing their commitment to maintaining a secure environment.

Immersive Experiences

Gen Z travellers are not just looking for a vacation; they want immersive experiences that allow them to connect with local culture, gastronomy, and traditions.

Hotels can offer unique local experiences within their premises, such as hosting cultural events, collaborating with local artists, or providing local food and drink options.

If that’s not feasible, try promoting or partnering with local businesses through digital spaces. Cross-posting on social platforms and housing deals or initiatives on your hotel’s website can go a long way in swaying a potential Gen Z guest to book.

Sustainability and Transparency

Gen Z is a generation that cares deeply about sustainability, ethical practices, and authentic experiences. They seek brands that are transparent, truthful, and socially responsible.

Hotels can demonstrate their commitment to sustainable practices by implementing eco-friendly initiatives, promoting local engagement, and sharing their sustainability efforts.

Personalised and Authentic Content

Gen Z travellers heavily rely on peer reviews, travel review sites, official tourism websites, and social media for travel inspiration and itinerary planning.

Hotels should focus on creating engaging and authentic content that showcases their unique offerings, such as local partnerships, personalised experiences, and immersive activities.

Mobile-First Approach

Finally, and possibly most important to generate efficiencies that attract a younger traveller, prioritising your hotel’s mobile-friendliness is key. Gen Z has a strong preference for mobile booking and expects a seamless mobile experience from hotels[^1].

Hotels need to offer mobile-friendly websites with easy navigation, fast-loading pages, and booking options optimised for smartphone use. Implementing a reliable mobile booking system is crucial to capture and retain Gen Z customers.

Credit: The Hotel Conversation

Staying on Hotel Trends

Staying on the pulse of these evolving trends is key to attracting and retaining guests, especially the tech-savvy, socially conscious Gen Z. However, Daniella states the path to success lies in balancing innovation with product durability and sustainability.

On discussion during the HICAP ANZ panel were several key methods that hotels can employ to stay on trend and remain competitive in the market. Here’s what Daniella and the speakers highlighted:

Balancing Innovation and Lifecycle

While innovation is essential, it must be grounded in a strategic approach that ensures a healthy and profitable lifecycle.

Cutting-edge technology, such as concierge robots and digital room keys, can boost efficiency and reduce environmental impact when adopted effectively.

However, gaining buy-in and understanding across the entire hotel team is essential to harness the full benefits of these advancements.

Tech’s Role in Hotel Efficiency

The hotel industry must recognise that technology isn’t merely a gimmick but a powerful tool that can optimise productivity and guest experience while alleviating labour shortages.

Hotel-wide awareness and comprehension of technology’s advantages for both guests and staff are crucial to success.

Alongside implementing the digital tools we spoke about above, such as digital (or contactless) check-in and online guest portals, think about investing in some high-quality Customer Experience technology (CET).

This kind of software provides hotels and management teams with a wealth of important data in a much more streamlined, automated system, saving time and enabling you to improve the guest experience based on customer preferences.

Sustainability in Hospitality

Sustainability is no longer an option; it’s a necessity, especially among Gen Z travellers. Sustainability should seamlessly integrate into the guest experience, going beyond superficial gestures.

This might be a good time to look at your property asset management and strategy. Is there room for improvement in the sustainability space? Think about on-site water tanks, solar panels, and eco-friendly in-room toiletries.

Meeting Modern Guest Expectations

To meet the expectations of contemporary guests, the industry must embrace a holistic approach that unites culture, technology, sustainability, and remarkable guest experiences.

Having a good customer experience strategy and management system in place also helps to boost loyalty and return bookings, a very fruitful opportunity when considering the many years of travel ahead for Gen Z.

Get the Hospitality Edge With Axsia HTL

The future of the hotel industry is a captivating blend of culture, technology, sustainability, and unforgettable guest experiences, and Axsia HTL stands at the forefront, guiding the industry toward this promising future.

To embark on your journey of embracing these trends, enhancing your property’s value, and ensuring a sustainable and innovative hotel experience, reach out to Axsia HTL. Let our expert team assist you with your hotel investment and asset management ventures, shaping the future of hospitality together.

Your success begins with a conversation—contact us today to get started.

In the dynamic world of the hospitality industry, the brand of a hotel stands as a formidable asset, capable of attracting and retaining customers. This allure becomes particularly potent within the fiercely competitive landscape of Australia.

Yet, as robust as the brand may be, it does not, in and of itself, guarantee the triumph of a hotel. In this ever-evolving market, where guest preferences and expectations are continually evolving, it’s the hotel management team that holds the key to success.

In this article, we delve into the pivotal role played by hotel management in crafting an exceptional guest experience. We’ll explore how the confluence of brand strength and adept customer experience management can elevate a hotel’s market standing, asset value, and overall financial performance.

The Revenue Contribution of Brand Companies

According to our expert asset and customer experience managers here at Axsia HTL, the brand company can contribute an impressive 30% to 50% of the hotel’s revenue per available room (RevPAR) through its strong distribution systems and brand promise.

These twin pillars empower the brand to attract and engage a substantial portion of the clientele, ensuring that rooms are occupied and revenue streams flow consistently. It’s this very strength that often draws hotels into partnerships with renowned brand companies.

The rest of a hotel’s RevPAR depends on managing customer experience in a way that enhances guest satisfaction, loyalty, reputation, and demand through creating a “mini-brand” that resonates with its target market.

This “mini-brand” should mirror the aspirations, preferences, and expectations of the guests, acting as the bridge between brand promise and customer fulfilment. Here, every interaction, from the initial reservation to the final checkout, is a carefully orchestrated act, designed to leave an indelible impression. This is where a strong CEM strategy is essential when looking to enhance overall property asset value.

The Pitfalls of Cost-Cutting in Hotel Management

Unfortunately, many hotel managers resort to cost-cutting measures as a quick fix to maintain profitability, especially in the wake of the COVID-19 pandemic. This can have negative consequences for the quality of service, customer retention, and long-term value creation.

Instead, owners should actively engage with their hotel managers, posing critical questions about the strategy in place and how it aligns with the overarching brand vision and customer requirements. Hotel success is not just about numbers; it’s about creating a memorable and lasting experience for guests that keeps them coming back and recommending the establishment to others.

By taking a holistic approach and focusing on customer experience management, hotel owners can steer their properties towards sustainable success, even in challenging times.

Customer Experience Management (CEM) as a Solution

In the ever-evolving landscape of the hospitality industry, managing customer experience has emerged as a powerful solution to unleash the full potential of a hotel property. At Axsia HTL, we firmly believe that customer experience management (CEM) is the cornerstone upon which a hotel’s success is built.

CEM represents a comprehensive approach to crafting and optimising the interactions between customers and the hotel at every touchpoint of their journey, from the initial pre-arrival phase to the post-departure experience.

It’s more than just ensuring guests have a pleasant stay; it’s about orchestrating a symphony of experiences that resonate with guests on a personal level.

The essence of CEM lies in its dedication to understanding the guests’ unique identity, preferences, and desires. This in-depth comprehension is crucial in shaping the experiences that not only meet but exceed their expectations.

Every guest interaction, be it during the booking process, check-in, dining, or any other aspect of their stay, is seen as an opportunity to delight and create lasting memories.

Customer Experience Management Platforms

Pivotal tools in a hotel’s CEM arsenal are its customer experience management platforms, often referred to as customer experience technology (CET). There are plenty of tools available from the more basic CEM designs to advanced software for large chains.

The technology in these platforms empowers hotels to gather and analyse data from various sources to construct a detailed profile of their guests.

This profile, built upon demographics, behaviours, preferences, and feedback, serves as a blueprint for personalised experiences. From room preferences to dining choices and even recreational activities, a customer experience management platform allows hotels to tailor every aspect of a guest’s stay.

CET allows hotel management to better understand their guests’ behavioural psychology, allowing them to:

• See important customer information
• Track how customers interact with the hotel’s website and booking system
• Navigate the hotel’s website
• Automate better customer interactions with AI
• Identify guest pain points
• Gain valuable data from wider market pools

By integrating a preferred platform into their operations, hotels can ensure a seamless and consistent experience throughout a guest’s journey. This cohesiveness builds trust, enhances guest satisfaction, and ultimately fosters loyalty.

Benefits of Implementing CEM Principles

By applying CEM principles and practices, hotel managers can achieve several benefits, such as:

Increasing Customer Loyalty

Loyal customers are more likely to return, recommend, and spend more at a hotel. They also provide valuable feedback and insights that can help improve service quality and innovation.

Improving Online Reputation

Online reviews and ratings are influential factors for customers when choosing a hotel. Positive reviews can boost the hotel’s visibility, credibility, and attractiveness on online platforms and social media.

Generating More Demand

By creating a distinctive and consistent customer experience that matches the brand promise, hotel managers can differentiate themselves from competitors and attract more customers who are willing to pay a premium for their services.

Enhancing Profitability

By increasing customer loyalty, reputation, and demand, hotel managers can also increase their RevPAR and profit margins. Moreover, by investing in customer satisfaction through key areas like strategic property asset management, they can reduce customer acquisition costs, staff turnover, and operational inefficiencies. This, in the long run, is a much more viable option than cutting costs.

Strategic Approach to Effective CEM

A strategic approach to effective customer experience management (CEM) is the bedrock upon which hotels build enduring relationships with their guests and ensure long-term success in a highly competitive industry.

To successfully implement CEM, hotel managers must embrace a multifaceted strategy that is both proactive and deeply attuned to guest preferences. Here’s a closer look at the strategic approach that underpins effective CEM:

Conduct Comprehensive Customer Research

At the heart of CEM is a profound understanding of the guests. Hotel managers need to conduct extensive customer research to gain insights into their target audience. This research encompasses various dimensions, including demographics, preferences, behaviours, needs, and pain points.

Such in-depth knowledge provides a foundation for crafting experiences that truly resonate with guests. To gather this information, hotels can employ a variety of research methods:

• Surveys: Surveys are a traditional yet highly effective means of collecting feedback and data from guests.

They can be administered before, during, or after the guest’s stay to gain insights into their expectations and experiences.

• Focus groups: Focus groups bring together a select group of guests to explore their perspectives, delve into specific areas of interest, and brainstorm potential improvements.
• Observation: Observing guest interactions and behaviours within the hotel provides a wealth of information. From their choice of amenities to their dining preferences, every action offers insights.
• Online analytics and CET: Leveraging customer experience technology (CET), hotels can gather data from online interactions, booking histories, and website visits to create a more comprehensive view of their customers.

Advanced analytics tools provide real-time data that can be analysed to spot trends and patterns.

Segment and Target Customers

Building upon the insights garnered from customer research, hotel managers should focus on segmenting and targeting customers. Not all guests are the same, and recognising this diversity is key to delivering personalised experiences. The strategic approach involves:

• Identifying profitable and loyal segments: Not all customers are created equal. Some are more profitable and loyal than others.

By identifying these segments, hotel managers can allocate resources more efficiently and create tailored experiences for their most valuable guests.

• Defining value proposition and positioning: For each customer segment, hotels need to develop a unique value proposition and positioning strategy. This entails crafting a clear and compelling message that reflects what the hotel can offer to that specific segment.

Whether it’s a family-focused experience, a luxury getaway, or a business-oriented stay, the message should align with the needs and preferences of the targeted audience.

Discover Premium Customer Experience Management with Axsia HTL

Elevating your hotel’s customer experience can transform it from a place to stay into a cherished destination where guests return time and time again. At Axsia HTL, we understand the pivotal role of customer experience management in nurturing guest loyalty, enhancing your online reputation, driving demand, and ultimately boosting profitability.

Our strategic approach, grounded in comprehensive customer research and thoughtful segmentation, ensures that every guest’s journey is distinctive and memorable. By offering personalised experiences that align with the diverse needs and preferences of your guests, you can set your hotel apart in today’s competitive landscape.

Contact us today to embark on a journey towards customer-centric excellence. Our CEM services empower your hotel to offer the exceptional experiences that modern travellers crave. It’s time to go beyond traditional hospitality and embark on a path that nurtures long-term success.

Hotel brands are a crucial element in any hotel investment strategy, playing a pivotal role in determining financial success. They offer consumer recognition, trust, and provide critical booking platforms and systems that significantly impact room revenue, often constituting up to 50% of total room revenue.

Investors can choose to acquire brands from recognised international or domestic chains or successful independent hotels, typically through franchise licence agreements or hotel management agreements with brand operators. However, it’s important to note that a brand’s primary focus is on short to medium-term room revenue delivery rather than formulating a strategic, long-term asset value growth plan.

The key to optimising return on investment lies in comprehensive property asset management. So, let’s look at how to optimise your investment return in hospitality with successful property asset management.

What is Property Asset Management and Why is it Important?

Property asset management, a dynamic process, is integral to the financial and reputational performance of a hotel property throughout its lifecycle. This method involves strategic property asset planning, implementation, and consistent monitoring of activities.

Professional property asset managers, like the team here at Axsia HTL, possess the expertise to set and execute these actions in alignment with the investor’s goals and market conditions.

Adding Value Through Property Asset Management

What does a property asset manager do? These figures are instrumental in adding value to a hotel investment in multiple ways:

Developing a Strategic Vision

Property asset managers analyse various facets, including the property’s strengths, weaknesses, opportunities, and threats. They assess the competitive landscape and customer segments, enabling them to define a clear and realistic vision for the property. Additionally, they outline objectives and strategies to achieve this vision.

Enhancing Operational Efficiency

Property asset managers oversee and evaluate the performance of the hotel operator to ensure they deliver expected service quality and customer satisfaction. They identify and implement operational improvements, encompassing cost reduction, revenue management, marketing and sales, human resources, and more.

Optimising Capital Expenditure

Property asset managers are responsible for planning and managing capital expenditure projects aimed at enhancing the property’s value. This may include renovations, expansions, upgrades, and other strategic initiatives. They also ensure that these projects are completed within the designated timeline, budget, and with minimal disruption to the property’s operations.

Maximising Asset Value

Property asset managers continuously monitor and adjust the asset value based on market trends and demand fluctuations. Furthermore, they provide advice on the best timing and terms for activities like refinancing, repositioning, or selling the property.

The Role of Hotel Brands in Investment Strategy

Hotel brands play a pivotal role in shaping the investment strategy of hotel properties. These brands are not mere names; they are powerful symbols of tradition, quality, consistency, and the promise of exceptional guest experiences.

They possess the ability to instill trust and recognition among consumers, making them a crucial element in a hotel’s investment journey. However, their contribution goes beyond the superficial aspects of logos and taglines.

Consumer Trust and Loyalty

When guests choose a hotel associated with a trusted brand, they bring a level of expectation based on previous experiences or the brand’s reputation. This trust is an essential factor in the decision-making process, often leading to higher occupancy rates and consistent patronage.

Hotel brands leverage their historical performance to build consumer loyalty, ensuring that guests return for future stays.

Revenue Generation

Hotel brands are not just a name on the building; they offer a comprehensive system that encompasses booking platforms, distribution channels, and marketing efforts. These systems are designed to drive room revenue, a significant portion of the total revenue for any hotel.

The seamless integration of these brand-provided systems and strategies ensures that the hotel can effectively fill its rooms, achieve competitive pricing, and maximise revenue potential.

Quality Assurance

For investors, the inclusion of a reputable hotel brand offers a level of quality assurance. Brands often have strict standards and quality control measures to maintain consistency across their properties.

Guests, therefore, know what to expect when choosing a brand-affiliated hotel, reducing the risk of unpleasant surprises.

Distribution Power

Hotel brands come equipped with well-established distribution networks, partnerships with online travel agencies, and international exposure.

This translates into increased visibility, both for direct bookings and through third-party platforms, ultimately resulting in higher room occupancy and revenue.

Operational Support

Hotel brands often provide operational support, including staff training, best practices, and access to reservation systems. This support enhances the efficiency of hotel operations and ensures that employees are well-versed in delivering a superior guest experience.

Collaboration is Key

While hotel brands offer numerous advantages, it’s important to recognise that their primary focus is typically on short to medium-term room revenue delivery. The broader strategic goals and long-term asset value growth plans fall beyond their immediate scope.

This is where property asset management comes into play, complementing the efforts of the brand and focusing on the holistic performance and value of the property over its lifecycle. The alignment of these two strategies, and the collaboration between parties, is instrumental in achieving optimal investment returns and positioning a hotel property for long-term success.

Investor Strategies for Property Asset Management

While investors with multiple hotel properties tend to employ in-house asset managers who recognise the value of property asset management for their investment returns, this may not be the case for those with smaller portfolios.

Some may not fully appreciate the benefits or may perceive property asset management as too costly, which is a common misconception that can potentially limit their returns.

Property asset management, however, is not exclusive to large portfolios and offers advantages for any hotel investor seeking to optimise their returns in the hospitality sector.

Various options for accessing property asset management services exist, including outsourcing to external consultants or partnering with specialised firms like Axsia HTL.

By embracing these services, hotel investors can augment their brand strategy with a comprehensive and strategic approach, ultimately enhancing property performance and value.

Unlocking the Potential: Property Asset Management Services

Now we know why asset management is so important in the complex world of hotel investments, let’s take a look at how we actually achieve it.

When performed correctly, property asset planning and management services emerge as the key to unlocking a hotel property’s true potential. At Axsia HTL, we specialise in providing tailored solutions that cater to the distinct needs of each property owner, which is exactly what good property asset management should look like.

A Partnership Built on Success

The foundation of our approach is the alignment of objectives with key stakeholders. By fostering a relationship-centric strategy, we consistently deliver market-leading returns. Our team’s profound understanding of operator brands, their value propositions, and the hurdles they face are pivotal in shaping our property asset management services.

Driving RevPAR Excellence

Revenue management, often defined by the balance between Average Daily Rate (ADR) and occupancy, plays a pivotal role in enhancing a hotel’s performance.

Our deep insights into this equilibrium allow us to craft strategies that result in robust Revenue per Available Room (RevPAR) figures, outperforming competitors and maximising profitability.

Our property asset management services encompass a comprehensive range of activities that can assist in your property ventures:

• Develop a vision statement: To align stakeholders and set a clear and achievable direction for the property.
• Review annual budgets and Capital Expenditure Planning: Ensuring that financial planning is not only realistic but optimised for asset growth and success.
• Key staff recruiting, onboarding, and appraisals: Assisting in acquiring and managing the right talent to steer the property toward its goals.
• Refinance and support asset valuations: Offering insights and guidance for timing and terms when it comes to refinancing or evaluating the property’s worth.
• Operational optimisation: Enhancing efficiency and effectiveness in hotel operations, including areas like restaurants, retail, and amenities.
• Sales and marketing: Crafting strategies that drive occupancy and revenue growth while maintaining the property’s unique appeal.
• Project management: Ensuring that property improvement and expansion projects are executed on time, within budget, and with minimal disruption.
• Contracts, deals, and negotiations: Expertly navigating the complex landscape of agreements to secure the best terms for the property.
• Renovation and repositioning Strategy: Identifying opportunities for renovation and enhancement, aiming for long-term growth.
• Grow revenue and enhance guest experience: Maximising revenue and guest satisfaction by going beyond room rates to include other services, such as F&B, spa, events, and more.

Achieving Consensus for Strategic Success

In the contemporary landscape, progressive asset managers play a crucial role in fostering consensus among investors, brands, and employees.

They possess an in-depth understanding of consumer demographics and their evolving requirements, focusing on engaging all stakeholders toward a common goal. Achieving consensus is pivotal, as no strategic plan can succeed without it.

Enlist a Property Asset Manager Today

Property asset management is an indispensable tool for optimising investment returns in the hospitality sector. It offers a holistic and strategic approach that compliments brand strategies, leading to improved property performance and value.

By embracing property asset management services, investors can gain a competitive edge and achieve their investment goals in the dynamic world of hospitality.

Contact us today to consult with our experienced Asset Managers, who can provide recommendations and a path forward to increase the value of your asset.