SPECIAL REPORT
Charlestowne Hotels ’ Hotel Marcel in New Haven , Conn ., is a net-zero energy hotel and an adaptive reuse project , which opened in May 2022 .
Michael Cady , chief marketing officer of Charlestowne Hotels
THE MARRIOTTS AND HILTONS OF THE WORLD ARE REALLY STARTING TO GET DIALED IN ON HOW SOFT BRANDS DIFFER FROM THEIR TRADITIONAL HISTORICAL BRANDS AND THEY ' RE WANTING INDEPENDENT-MINDED HOTEL MANAGEMENT COMPANIES TO HELP DRIVE THAT SOFT-BRAND UNIQUENESS AND CREATIVITY
- MICHAEL CADY
Tiger and Peacock is a rooftop bar at Charlestowne ’ s The Memphian in Memphis ’ Overton Square neighborhood .
SKIN IN THE GAME Aside from ticking the performance , location and experience checkboxes , owners can also seek out management companies who are willing to invest in the asset in exchange for a contract . Having this so-called “ key money ” can give the owner confidence that the management company will work to keep the asset healthy because there ’ s a vested interest in it . Although , this arrangement can be tricky if the partnership sours and backing out isn ’ t as easy as terminating a contract .
Given all the recent mergers and acquisitions that have happened amongst management companies , some owners are cautious about what the reorganizations will mean for their properties .
NewcrestImage ’ s Patel lamented that the choices are limited , while Cady cautioned that the shuffle can take away from the day-to-day focus on the property .
Hospod pointed out that the management business benefits from scale because it creates more efficiencies . “ But as you develop more scale , the risk is that you lose what made you special in the first place ,” he said . For now , he ’ s watching the long-term picture , examining how a management company with a bigger platform and more resources will be beneficial for his company as it grows its portfolio .
LET ’ S BE FRIENDS There is a litany of factors an owner will consider to select its asset operator , but when it comes down to it , the ultimate deciding factor is much simpler : do I like them ? There is the ongoing relationship to
14 hotelsmag . com May 2023