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Carlson Rezidor has significant expansion
plans for Radisson Red in Australasia
Mantra Pavilion in Wagga Wagga
CARLSON REZIDOR TO ACCELERATE
Carlson Rezidor Hotel Group has revealed its plans
to grow its portfolio in Australasia and the South
Pacific to 15-20 hotels in the mid-term.
Having achieved accelerated growth in Asia
Pacific in 2015, opening 10 hotels and 23 signings,
Carlson Rezidor is on track to achieving its target
of adding 100 operating hotels to its Asia Pacific
portfolio by 2020, the company revealed at AHICE
in Melbourne during May.
Testament to the Group's expanding footprint in
the midscale segment is the upcoming opening of
Park Inn by Radisson Suva Fiji in 2018.
Building on the foundation that Carlson Rezidor
has established in Australasia over the last 18 years,
the Group says it is better positioning itself to
capitalise on growth opportunities.
An example is the recent appointment of
Barry Fleischmann, Director of Development for
Australasia, who is responsible for strengthening
stakeholder relationships and initiating new strategic
partnerships to support Carlson Rezidor's expansion
in this robust and growing market.
"Australasia is an integral part of Carlson
Rezidor's Asia Pacific expansion strategy and we are
committed to growing our presence in this market
by rolling out our brand portfolio and actively
seeking conversion opportunities," said Andreas
Flaig, Executive Vice President -- Development,
Asia Pacific, Carlson Rezidor Hotel Group.
"In addition to addressing the millennial-minded
segment by introducing our Radisson Red brand in
metropolitan cities, we are exploring upscale resort
opportunities along the Gold Coast for Radisson
Blu, while growing our Park Inn by Radisson brand
to capture the midscale segment," said Flaig.
The Group said it was currently in negotiations
with several developers to roll out Radisson Red
in top tier cities such as Auckland, Brisbane,
Melbourne, Perth and Sydney.
Elanor Investors Group acquire
four hotels across Australia
Elanor Investors Group has purchased of four hotels
in a significant boost to the company's portfolio.
The group has purchased Mantra Pavilion
in Wagga Wagga, Best Western Tall Trees in
Canberra, Best Western Plus HW in Port Macquarie
and Parklands Resort and Convention Centre in
Mudgee, joining the six already in the portfolio.
Elanor's CIO and the Head of Leisure, Tourism
and Leisure, Marianne Ossovani, said Elanor's
owned and managed assets have now increased
to approximately AUD$590 million (up from
AUD$173 million at listing in July 2014).
She said the four acquired hotels are part of
Elanor's continued hotel portfolio investment strategy.
She said each hotel was unique in their market
and in their appeal to the traveller, and this most
recent purchase continues the growth in the hotels,
leisure and tourism sector that has been a focus for
Elanor Investors Group over the past 18 months.
Parklands Resort and Convention Centre in
Mudgee has 68 rooms, and is set on 30 acres of
landscaped grounds. It includes substantial grounds,
including a polo field and a convention hall that can
seat up to 1200 people, complete with a performance
stage. Additional meeting and facilities include
conference rooms, indoor pool, restaurant and bar.
Mantra Pavilion in Wagga Wagga is one of the
best hotels in the city and features 45 spacious
guestrooms and a popular high-end restaurant
Best Western Tall Trees is located in an inner
suburb of Canberra and o ers 79 guest rooms and
a breakfast room, with some meeting facilities.
Best Western Plus H.W. Port Macquarie is situated
directly opposite Town Beach and features 44 rooms.
She said these four hotels join the six outstanding
properties already in the Elanor portfolio: Peppers
Cradle Mountain Lodge (TAS), Mantra Bell City
(VIC), Mantra Wollongong (NSW), ibis Styles
Canberra Eaglehawk (NSW), BreakFree on
Clarence (NSW) and ibis Styles Albany (WA).
Ossovani said Elanor Investors Group would
continue its growth with potential for more hotel
assets to be secured in the near future.
You may be aware that at AHICE 2016 in
Melbourne I had the privilege of working
with HM both prior and during this event
as the emcee. I also moderated one of the
panels -- What Owners Want -- which I think
was well received by many delegates.
Something that came up in the session was
that the challenge for many GMs might be
in dealing with very hands-on owners. The
fact is today, because of the cost of money,
the cost of land, building costs (including
CapEx) and operational costs, especially
payroll, owners are more hands on than ever.
There was a time when operators were
king. Owners and investors wanted global
brands at almost any price. They (mainly)
contracted operators with long term
Management Agreements, with overpriced
management fees with pretty much
no involvement from the owner. There
was even a clause written into the hotel
management agreements (HMAs) giving
the operators 'quiet enjoyment' which really
meant, 'don't call us, we'll call you'!
Oh how times have changed and for the
better, in my view. Firstly, owners are very
involved in their assets. You need them to
be. You, the hotel operator and/or GM,
need the owner to love their asset. Keep it
refreshed, safe, appealing and operationally
e cient. This takes money -- owner's money
-- which you need on an ongoing basis.
The more you engage with your owner in
an open and constructive way, the stronger
you'll make the relationship and the more
involved he or she will be -- in helping you
with your concerns about the product.
Secondly, the hotel is the owner's business.
Not yours, not your operator's, not the
brand's, but the owner's.
Every decision you make, strategical
or tactical, will affect the value of your
owner's asset. You owe it to him or her
to tell them about what you're thinking,
what the horizon holds, how is supply and
demand is looking and how the hotel's
financial health is looking.
You are the owner's employee while you're
managing his or her business. Develop the
relationship as strongly as you would as if
you were in command within your company.
Finally, make money. Deliver your promises
(budgets). Don't fudge the forecasts
(against the budget) even if you're
delivering less than positive news. Honesty
is the best policy.
And remember, your next promotion
will depend on how well you are currently
performing for your owner, not just
Howard Kemball owns a Hotel
Performance and Asset Management
company called KCom. Contact him on
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