Hotel Management Company
It’s a fact that we are living in what I call the ‘Age of Consolidation’, the ‘sharing economy’ as it’s coined by others. And the tourism industry is not immune. The airline, car rental, travel services and hospitality industries have undergone massive consolidation over the last few years. The Marriott acquisition of Starwood (at a fine $12 billion), car rental companies being swallowed up, airlines being bought up one after another and online travel portals joining forces. Mergers and acquisitions aplenty. The obvious reasoning: companies must show growth.
As much as people do business with like-minded people, businesses do business with like-minded businesses. There certainly needs to be some sort of a match.
There’s a terrible misconception by hotel management companies that hotel owners are interfering, ill-informed nuisances who should leave hotel management companies to do what they do – manage their hotels. Being a hotel owner and a hotel operator, I find myself in a quandary with this one; I wear both hats.
I have always believed in the organic growth of BON Hotels and have sworn in the past that I would rather go bust than take on a property to rack up the numbers in our portfolio, without being able to add value.
The current hotel climate is certainly experiencing a degree of uncertainty in the form of mixed messages. Reports of an expected hotel boom or vast improvements in tourism numbers are surfacing, yet as we move in the hospitality circles with our ears to the ground we are still noticing a lot of properties that are in distress. So the big question is when is a hotel in trouble? When and who should an owner call for help?