SPECIAL REPORT
The Yorktowne Hotel is a Tapestry Collection by Hilton property in York , Pa ., that is managed by GF Hotels & Resort .
some costs associated with or prescribed by the brand ,” he said .
Many owners choose to partner with TPMCs when they want to diversify their holdings across multiple brands , said Justin Jabara , president of Meyer Jabara Hotels . Most third-party managers , he said , have long-standing relationships with the various hotel companies and they understand the operational nuances between the different flags .
Offering a brand point of view is Julienne Smith , chief development officer , Americas for IHG Hotels & Resorts . She said owners must ask themselves many questions about their management partner , including : Will they help with the feasibility of the project to determine the best brand fit and
programming of the hotel ? Is leadership or field support based near the owner or hotel project ? Do they have a good reputation for building and retaining onproperty and corporate talent ? Do they have in-house revenue management and field marketing capabilities ? Are they at a scale that fits with the owner ’ s scale and expectations for engagement ? Do they have contacts in the broader industry that can recommend needed consultants , suppliers and / or capital sources ? Do their cultures complement each other ? Would they invest in the project if desired ?
And Paul Daly , SVP of global franchise operations and owner relations for Hyatt , said an owner will recognize the importance of aligning with a management company that is experienced in what the hotel will offer its guests . As an example , he explained , an owner opening a lifestyle hotel will need a management company that has a breadth of experience in food and beverage operations whereas an owner opening a select-service property with limited F & B may not have the same requirement .
CATEGORY MATTERS A funneling has taken place whereby brands — for the most part — will retain management of a significant percentage of
luxury properties , as well as big convention hotels and other prime assets , while all other segments will be franchised and either owner or third-party managed . Even cracks exist in this scenario .
Patrick Short , president of Peachtree Hospitality Management , said that brands do seem to be allowing more owners to franchise or use third-party management today than they have in the past , with certain approval processes in place .
For instance , he pointed out , Kimpton never used to franchise its hotels ( or did so on an extremely limited basis ), but now several groups have proven themselves to be stewards of the brand and have been approved to manage on a third-party basis , allowing owners more flexibility and choice .
In many cases , said Steve Contos , EVP of Davidson Resorts , branded organizations have restrictions on who they allow to manage their luxury brands , therefore
IT ’ S NOT THE BRAND AGAINST THE TPMC — EACH HAS A CLEAR ROLE TO PLAY AND IT IS A SYMBIOTIC RELATIONSHIP
A king guestroom at The Gantry London , Curio Collection , which is managed by RBH Hospitality Management .
– KAUSHIK VARDHARAJAN , BOSTON UNIVERSITY SCHOOL OF HOSPITALITY ADMINISTRATION
10 hotelsmag . com September 2023