The 2017 report examines how hotel operations create value
The value of hotel operations has been a neglected and misunderstood part of the hotel business. Investors have historically focused on the real estate or brand.
But a new breed of third-party manager has exposed the importance of this aspect of the hotel business. And the 2017 report, The key trends and issues in hotel operations , has just been published by Hotel Analyst, the news analysis service for hotel investors, to highlight the growing importance of this area.
“There are three pillars of value in the hotel business – real estate, brand and operations. This new report focuses on the least understood of the three, hotel operations. It builds on our latest event, the Hotel Operations Conference,” says Andrew Sangster, editorial director of Hotel Analyst.
This report, produced by Sue McKenney and edited by Hotel Analyst’s Editor, Katherine Doggrell, looks at the evolving structures available to owners when they consider the best option for their property, beginning with the bricks, brains and brawns split, in which asset management is playing a rising role.
The report goes on to look at scale and the drive to direct booking, which has retaken some of the power from the OTA’s, but increased the friction between owners and operators as the cost of leveraging loyalty programmes takes its toll.
Focus is given in the report on the changing brands coming into the market, as the experience-driven millennials and the shifting way of work, places different demands on hotels.
The role of technology has never been greater and the report addresses the issues around data breaches – an issue for all hotels – as well as the rise of video streaming and the evolution of TripAdvisor.
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