So, I was looking at hotel patterns and development lately and found and interesting report, that made me remember why I love what I do. Help Independent Hotel owners GRAB market share from the Large hotel Brands!!! At first you are going to wonder what private equity and investors have to do with hotel online maket share, however it will unfold in the report findings.
Private equity capital drives hotel-property
NATIONAL REPORT–The current economy is being driven by four key trends–globalization, a revolution in communications, technology and consolidation in industry. A new study, “Hospitality 2000: The Capital,” examines these trends in the sourcing, structuring and use of capital in the international hospitality industry. It’s the fourth study in a series under the Hospitality 2000 banner, which defines critical issues the hospitality industry will face in the future.
Roger Cline, partner with Arthur Andersen and co-author of the study, said the intention of the survey was to find out how hotel capital is sourced and what the investor and lender expectations are. Discovering foreign investment trends and technology investments also were goals of the survey.
“I was very pleased with the respondents,” Cline said. “We wanted to make this as much of a global study as possible. It confirmed what a lot of us were involved in.”
“The overall study was a good representation of the market,” said Mark Warner, director for graduate programs and associate clinical professor at New York University and co-author of the study.
The findings of the study:
* Private equity capital drives hotel-property markets, which are the assets themselves; and public capital markets dominate hotel-company financing, which is the operations part of a company.
* Investors and lenders prefer large hotel companies with recognized brands and full-service hotels and resorts more than smaller, limited-service properties and extended-stay facilities.
This piece was very educational on following the money with the commercial lending squeeze going on. It also puts a lot of pressure on the Brands to provide ultimate value now more than ever. More importantly if you break it down more granular, “investors prefer hotels with Recognized brands.” Recognized where?
Most all advertising is done online with web 2.0 or Travel 2.0 we will call it. So this report crystallizes that if you are a large Independent or Boutique your Internet marketing campaign must be paramount in your to-do list. We at hotel SmartSuite have an act for driving traffic to your hotels website so that you can garner your own hotel bookings! We do have direct connects to the GDS and IDS channels to provide you better tools the big chains have not to stop there, we have a fully integrated with our web-based PMS.
The Best thing about it is…. You don’t have to be a big chain, big hotel or High-end boutique. You don’t have to have all of the tools. If all you need is a booking engine and Internet marketing well we can do that. If you want Electronic Distribution we can provide that too. If you want the fully integrated web-based PMS with full integration of it all we can certainly do that too.
One thing is certain in this market someone is gaining market share and someone is loosing market share. Lets us help you gain, after all that is where investors are putting their money!
