Home' Hotel Management : HM OCTOBER 2016 Contents Express deals in South Africa, the United Arab Emirates,
parts of Asia and Australia. Many senior members of our
hotels and development team have also previously worked
for IHG; so I guess it's fair to say that we've got a quite a
bit of experience working with IHG and this great brand
and feel very privileged to have launched Holiday Inn
Express here in Australia in partnership with them.
So why the select service segment? Because we think
it's one of the most robust and profitable hotel segments
to invest in on a risk adjusted basis. It is a segment that
is highly efficient, addresses the needs of the short stay
frequent traveller, and benefits from strong cash flow/low
CapEx requirements compared to developing traditional
full service hotels. Proof of this segment's success lies
in the sheer weight of the brand's system size and
pipeline. There are currently more than 2,400 Holiday
Inn Express hotels operating today out of 5,070 IHG
hotels globally. With an additional pipeline of 650 hotels,
Holiday Inn Express is clearly IHG's fastest growing
brand where owners are investing their money.
Would you look at any other segments
I really like the lifestyle and branded boutique hotel
segments. They both provide the ability to maximise
ADR due to advantageous pricing elasticity with the
opportunity to implement certain aspects of the select
service model we've come to embrace. I really think there's
an opportunity to partner with great brands and introduce
local F&B concepts that provide guests something
different and 'local'. A hotel experience with social spaces
created to be immersive, authentic, fun and memorable.
How has franchising worked for you and why did
you go down this path?
Just as the Holiday Inn Express brand is designed to
provide guests with "everything they need and nothing
they don't", franchising gives us some flexibility in
determining what we need from a franchisor and what
we don't require. Having established our own hotel management company, we've created
an operating platform using the latest in cloud-based technology and operating systems
combined with the added benefits of partnering with a world class hotel group such as
IHG which provides us with best-in-class distribution systems, revenue management,
guest analytics and other diagnostic tools as well as a strong guest loyalty program.
A huge benefit of franchising is that we have an in-house team that is fully dedicated
to the development, ownership and operation of each hotel. We literally live and breathe
our hotel product every day. Everything we do throughout the design, development and
operational phase of our hotels is about 'engaging efficiency'. We've adopted a philosophy
of challenging traditional hotel thinking and questioning the way things have always
been done. Franchising has led us to create an efficient hotel design and operating model
enabling us to optimise guest satisfaction, net operating profit and increase hotel asset
value for our investors.
You personally procure a lot of products and services for the properties...
tell us about that.
We liaise directly with our consultant teams, interior designer and FF&E
procurement consultants to determine the best methods of procuring IT, operating
systems, FF&E as well as operating supplies and equipment. The fact that we're rolling
out a standardised room product on a portfolio basis provides some efficiencies in our
supply chain in terms of production and delivery timings, as well as pricing advantages.
We also work with our interior designer and furniture manufacturers to review case goods
and furniture items to optimise their design in relation to production cost, durability
and ease of maintenance/replacement. Unlike many other property developers, we have
the advantage of being able to tap into our hotel development and operational expertise
which coupled with guest feedback enables us to determine what works; what hasn't; and
tweak our model accordingly. n
"I really like the lifestyle and branded boutique hotel
segments... They both provide the ability to maximise
ADR due to advantageous pricing elasticity with
the opportunity to implement certain aspects of the
select service model we've come to embrace."
PHIL KASSELIS, Managing Director,
Pro-invest Hotels Group
Contact Richard Dalmanemail@example.com|www.dalman.co.nz|+ 64 3 366 5445
Architects + Interior Designers
New builds + refurbishments
Visually stunning + practical designs
Australia, New Zealand, Pacific
20 years hotel experience
We listen, create and deliver
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