Home' Hotel Management : HM October 2017 Contents Guests’ desires to pay for only those services that they need (and use)
is not a new concept, but is certainly a growing one for today ’s travellers,
who are arguably more informed than ever before.
What’s in the select service development pipeline across the
region for 2017-18?
Many of our new build properties in our confirmed pipeline have been
influenced, in some way, by select service principles. Modern interior
design is increasingly adopting new ways of thinking about hotel
design and amenity, incorporating clever open plan meeting spaces and
crafty work nooks which typify the way guests prefer to live and travel.
Developers and owners are exercising imagination and flair to deliver
assets that offer guests greater flexibility and functionality.
A perfect example of this is the newly-opened Tribe Perth (which
Mantra Group is managing as its first external brand), which offers an
edited hotel experience and provides an innovative alternative for today ’s
traveller. The hotel’s guest rooms have been cleverly crafted to
complement its unique living areas, all complete with free Wi-Fi,
signature beds, smart TVs and more.
Senior Director, Development - Australia, New
Zealand, and Pacific
Why is the select-service segment popular
Successful select service hotels respond effectively to travel consumers
who value customised experiences that focus on the essentials and respect
their budget. Such offerings are not, however, confined to the economy
hotels segment, with select service principles now central to many brands
that occupy the midscale, upscale, and even upper upscale segments.
The popularity of the segment is undeniable, with STR reporting
that in 2016 select service hotels accounted for 70 per cent of all lodgings
in the U.S. For consumers, select-service hotels offer a fresh take on
accommodation, characterized by a respectful recognition of their basic
needs, delivered with a signature flair, at a price they can afford.
In that very way, Marriott International is recognised as the global
pioneer of select-service hotels, with the launch of Courtyard by Marriott
in 1983. A testament to the ensuing growth in the segment is that today
Courtyard is the largest of Marriott ’s 30 brands, with over 1,100 hotels in
For developers, reduced GFA requirements and generally lower
development costs make select service hotels a sound development
proposition, helping to unlock overdue new hotel supply in certain
markets. Operationally, the benefits of a lower-cost operating model
(defined by reduced labour expenses), are far-reaching, delivering
improved operating margins, higher owner returns, and greater
affordability for guests.
Which areas across Australia, New Zealand and the South
Pacific are in significant demand?
CBD, metropolitan, and leisure locations right across the Australia
Pacific region are all fertile territories for select service brands, because of
the appeal of their inherent principles to corporate and leisure travelers
alike, whether from Australia or abroad.
Marriott International has multiple opportunities under assessment
across the region for our five core select service brands, namely:
Courtyard by Marriott, Four Points by Sheraton, AC Hotels, Aloft,
and Moxy. In fact, for the first half of 2017, these select service brands
accounted for the lion’s share of all new hotel development opportunities
assessed by Marriott International in the Australia Pacific region.
During this period, opportunities assessed by Marriott International
have been most prolific in Victoria, followed by New South Wales,
then Queensland. Outside of Australia, hotel development prospects
are becoming more plentiful across New Zealand’s gateway cities,
where investors are eager to capitalise on that country’s sustained stellar
What’s in the development pipeline and what are your
development ambitions in 2017-18?
Globally, Marriott International has a record pipeline of almost 3,000
new hotels, meaning a remarkable 23 per cent of all hotels currently
under construction across the world will carry one of Marriott
International’s brands. In the Australia-Pacific region, 20 new hotels have
been contracted and announced, with Marriott ’s regional portfolio set to
surge beyond our target of 50 properties (12,000 rooms) in the next five
years. Notably, Marriott ’s select service brands are featuring prominently
in the current development rollout across Australia, including the recent
opening of Aloft Perth (224 keys) and Four Points by Sheraton
Docklands (273 keys). Looking ahead, new Four Points by Sheraton
hotels in Auckland, Sydney, and Parramatta, plus an Aloft in South Yarra,
and a Courtyard by Marriott in Perth, all represent exciting near term
advancements for Marriott.
NEXT STORY GROUP
Area Vice President, Business Development
Why is the select service segment popular
With the rise of the sharing economy has brought with
it a new perspective on people’s needs. The new value that is attracting
our guests is a platform to facilitate meaningful exchanges, collaboration,
An artist’s impression of
the new Adina Brisbane
64 HM The Business of Accommodation
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