Browsing Tag

Hotel Management

How Smart Hotel Management Companies Attract New Assets

January 4, 2016 • By

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You’re obsessed with producing peak financial returns for your portfolio. Your industry knowledge is unmatched. Most of all, you’re passionate about what you do.

But how can you and your hotel management company compete against the hundreds of other hotel management firms hustling for the same assets?

Here are seven ways to attract new assets:

1. Publish Your Leadership

Becoming the expert on maximizing hospitality assets is one of the top techniques to attracting asset managers and owners. By developing and sharing content that is helpful and useful to them, you can position your hotel management practice as a trusted advisor who clients will rely on for the best solutions and be recognized as an integral part of their own success. Post content to your blog, share tips through a consistent email campaign or via relevant LinkedIn forums.

2. Own a Unique Value Proposition 

What can your team offer that no competing hotel management company can? A combined 100 years of hospitality experience? An up-to-the-minute approach using the latest hotel marketing technology? Advanced market knowledge in a particular destination? A commitment to hiring the best on-property staff? Leverage that unique value proposition to differentiate your company in the marketplace, otherwise you’re making it ten times harder for hoteliers to discover and remember you.

Find ONE thing that separates you and OWN it in the minds of your target audience.

3. Target and Track

Just as you would advise your property teams to utilize organized, targeted marketing to reach hotel guests, your hotel management company needs to use the same techniques for new client outreach. By building a highly targeted list of prospects and tracking them in a CRM system, you can track your sales pipeline with frequent measurement of leads, opportunities and conversions.  With a CRM, you can also easily deploy automation tools for follow-up emails, personalized campaigns, etc.

4. Get Executive Buy-In

Asset attraction starts and ends at the top.

No matter how innovative your marketing team or how creative your business development staff is, appealing to new assets will be an uphill battle if your efforts are constantly blocked by a leader who declines your budget requests, wants to continue to do business “the way it’s always been done,” or is impatient with the time it takes to build trusted relationships with hoteliers.

5. Industry Participation

Mingling isn’t enough. Stand out from standard networking and get in front of asset managers and hoteliers by speaking at events, contributing articles to industry publications, and holding leadership positions in industry groups. Getting in front of industry influencers at events like ALIS or The Hunter Conference will build your network and elevate you instantly as an authority figure worth investing in.

6. Have a Great Product

Most hotel management companies don’t think of their services as a product, but it’s helpful to remember that your hotel management product is made up of two important elements:

•   Service Levels: Going above and beyond for your clients is how you build long-term loyalty, which will convince them to stick by you when competing hotel management companies start knocking on their door.

•   Results: The results you produce for your current clients are paramount to attracting new assets. At the end of the day, no amount of schmoozing can substitute the success and above-market returns that you’ve yielded for the hotels in your current portfolio. 

If you have a great product that delights customers, more will surely follow!

Read: Four Things Hotel Owners Want From Their Asset Management Teams

7.  Put Together Case Studies to Build Trust and Validation

To attract new assets, not only do you need to produce profitable outcomes, you need to prove it! Hoteliers want to see that you understand the issues they struggle with and that you have worked with other properties in similar markets or locations/situations.  Showcase that you can analyze a property and its place in the market, then implement creative solutions tailored to address that property’s unique challenges.

About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com

Four Things Hotel Owners Want From Their Asset/Management Teams

June 22, 2015 • By
Blogphoto It’s the single, most weighted decision hotel owners have to make that will determine their property’s ultimate fate. Choosing a hotel and asset management company is no small task, as the impact of your decision can mean your hotel will either bustle with guests and high revenues or languish miserably with empty hallways and a pile of expenses. We know what we all want from our hospitality assets – long-term competitive advantage, consistent market growth, higher-than-average revenue generation and sound cash flow. But how do you get there? [caption id="attachment_4089" align="alignleft" width="150"]Untitled Jamie Adams, Vice President at the Carlyle Group[/caption]

We sat down with Jamie Adams, Vice President at the Carlyle Group, a global alternative asset manager, who specializes in asset management and held previous stints at Marriott and Homestead Suites. He shared his insight on what hotel owners should look for when choosing a profitability partner to manage their hospitality assets. He also weighs in on the never-ending topic – go with a brand or fly independent?

Top Four Criteria Your Hotel and Asset Manager Should Meet

1. Experience in your geographic market

“Big benefits come from local knowledge,” Jamie said. Look for a management company that already has experience working in your locality. They’ll know the market, the destination’s strengths and weaknesses, your competitors, and ebb and flow of travel to the area, he explained. They can also better anticipate slow cycles and are better equipped to hire the right on-site team to maximize your profitability.

2. Staffing tendencies

“What are they doing at other properties? Are they staffing too heavy? Are they staffing too light?,” Jamie said. “Labor will be your biggest cost, so look out for management companies who tend to over-staff properties.” Look for a management property that hires just the right amount of people for the amount of guests the hotel attracts. Don’t sway too light, or that means your guest experience will suffer. Jamie explains that when he narrows down his own search for local hotel management companies, he checks their hiring habits based on their P&L’s. “Managers should be savvy enough that they can look at a property and already know how to run it,” he said.

3. Potential margins

“The most important factor to look for is the kind of margins they’re capable of running at their other properties,” said Jamie. Are they running efficiently? Do they have too many managers? You’ll be able to spot these immediately in P&L’s. Margins at 25 to 45 percent are optimal, Jamie said, but this can vary. Nonetheless, you should benchmark with other hotels.

Read: 6 Sales and Marketing Metrics Every Hotel Owner Cares About

4. Amount of hands-on attention from senior team Look for the amount of support the regional and corporate team will invest in you. Oftentimes, the larger management companies will have so many properties, they won’t offer a lot of personalized attention. “The regional manager could have 11 hotels to oversee," Jamie said. “So, they’re spread pretty thin.”

Go With a Brand or Go Boutique? “In most major markets, signing on with a easily recognized brand can bring you the best chance of success,” Jamie said. You’ll have immediate access to reservations systems and loyalty programs. “I liken it to opening a spigot,” he said. However, big brands mean bigger costs to pay, including reservation fees, royalty fees and a set of stringent rules to follow. Plus, the fees will promote the brand, not your individual property. So, you’ll have to invest even more in direct hotel internet marketing. If you decide to go boutique or stay independent, you’ll have significantly lower costs and a lot more flexibility. However, you need to invest in smart hotel technology, plus marketing and branding strategies to command traveler recognition and drive reservations. Jamie adds that in some markets that people are traveling to anyway, such as South Beach or San Francisco, boutique hotels can fare off a lot more successfully than big brand properties. “When deciding between going under a brand flag or independent, weigh the incremental cost versus the value a brand could add,” Jamie advises. “How many rooms is it going to generate? Is the ADR going to be higher versus a boutique hotel?” About Tambourine Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com