“ We gave changed our approach to development within our practice . Now we have an attitude to keeping everything that we can . So , we immediately say to clients , that we ' re not going to demolish this building , we can make it work . Ironically enough , I found that I ran up against the planning authority who wanted me to knock him down . I struggled like hell to persuade them .”
Andrew Linwood , Head of Hospitality at Areen Design , added : “ It ' s the subject of pretty much every presentation . And interestingly , in contrast to how the attitudes of developers a few years ago , where they just looked at the money thinking it ’ s going to cost more , they are now beginning to see that because of changes in the market and the way things are delivered , it doesn ' t cost any more . And indeed , it can be more profitable if you can tick the boxes of ESG .”
“ BUSINESS AS USUAL IS NOT AN OPTION AS IT ' S UNLIKELY THAT THE COST INCREASES CAN BE PASSED ON FULLY IN THE FORM OF RATE INCREASES .”
Despite the hope of greater profitability , owners were still fearing that staffing , ESG and technology would lead to greater costs . Anthony warned : “ Even prior to the onset of the pandemic luxury hotels were already facing margin compression , due to weak rate growth , while continuing to be weighed down by heavy labour and other associated costs necessary to maintain standards as a luxury product .
Luc Boschmans , Managing Director , Hospitality , Tristan Capital Partners , commented : “ We have to understand as an operator , that the owners are taking the biggest risk , and that they are really , suffering the most financially during this type of crisis . That ' s why it ' s very important , of course , to try to maintain a strong relationship .”
This need for a strong relationship within the stack had accelerated the role of asset manager , according to Dimitris Mittas , VP Finance Europe , Global Asset Solutions . He said : “ The owners started looking for the expertise of the asset managers . Some owners were looking for somebody with diversified experience to help them renegotiate the contracts with the operators or to bring in new ideas from all the knowledge they had . Some owners had to get rid of assets . And consequently , thanks to so many opportunities in the market , it was the right time for others to increase their portfolio .
16 ILHA