INVESTMENT
push the day-to-day operating of the business back out into the field and almost decentralize the model ,” Dann explains .
However , Highgate centralizes support systems that include technology like 24 / 7 revenue optimization monitoring to help generally less-experienced GMs . “ It ’ s
those skill sets out of the assets and put them into a centralized office , which also serves to create headcount efficiencies . “ They ’ re capturing business and spreading it out into the hotels [ in that cluster ], which has made it very efficient and allows us to be almost monopolistic in geographic clusters . And that these efficiencies create cash flow and better bottom lines ,” Dann says .
When asked about further growth of Highgate Select , Dann says they are taking advantage of situations that are brought to them , adding Highgate is seeing deals daily . “ We have all the firepower we need to do deals . But we have no goal in mind ,”
Highgate ’ s Element hotel in Sedona , Arizona
definitely different from the rest of the way the select world is being managed ,” Dann adds .
Dann further explains that when Highgate bought the Colony assets it created what the call “ geo-clusters ” to help drive top line revenues . In the geo-cluster are sales , revenue management and digital experts who extract all monopoly really works now since we have more mass and hotel count . We have all sorts of different brands in the same marketplace , and we can control the business and disperse it , depending on the price tier in that market .”
Highgate also uses area managing directors to oversee multiple assets in the same geographical areas . “ All he says . Bottom line , Dann says , is that Highgate , like many other investors these days , thinks it is a great time to be in the select-service business . “ It ’ s obviously a great , efficient model , and with the platform that we ’ ve built , we expect that deals will work better for us .”
44 hotelsmag . com May 2022