FREQUENTLY ASKED QUESTIONS

To help you gain a better understanding of our management and business philosophy, we have provided brief answers to a few common questions.

1. Why would I need a management company?

When it comes to business, there is not one solution to fix all deficiencies. In fact, not all hotels need a management company. We believe that if your hotel is not achieving your desired goals in the areas of service, operational efficiency, and profitability, then there is probable need to consider introducing additional expertise to the equation. You may need a group of specific services or full management services. In any case, the status of your hotel will determine your needs when compared to your investment and operational goals.

2. Should I go with a brand or be an independent?

It can be a painful realization at times when we must write sizeable checks to a franchise company. The ongoing consideration is whether those dollars were well spent. Could you have gotten that revenue anyway? In today’s business environment competition is driven by global, national, and regional presence. If you own a hotel in an urban or near urban market, chances are you are competing against at least two major brands. As an independent, it would almost certainly be a losing proposition. The level of exposure, training, support, loyalty, and global recognition that is usually received from a brand is essential. While there are some affiliations of independent hotels that do quite well, they are often conducive to primarily specialty hotels, boutiques, or properties of a resort nature. Having a brand is great, however, it is vital to choose the most appropriate brand for your property and market.

3. Why is my hotel not getting its fair share of the market?

This is one of the most common and important questions received from owners during the initial consultation.  There is an old saying: “The proof is in the pudding”; however, in this case the proof is in the hotel. The solutions to improvement often reside in the individual experiences at the property through the guests, employees, and vendors. When conducting an initial SWOT analysis, often the general manager and staff can identify most of the required strategies for change and generally take pride in their work, however, they lack the leadership and empowerment to make effective change. Here are a few items that will get the ball rolling in the right direction.

  • Get involved in the process and be a part of the working solution
  • Ensure clear, detailed, and realistic revenue goals for your hotel
  • Be sure there is an ongoing sales & marketing effort being executed
  • Utilize all available brand promotions, tools, and resources appropriate for your market
  • Set annual, quarterly, monthly, weekly, and daily (revenue, quality & service) goals. Be sure to review them often against performance
  • Have regular revenue meetings and execute them with a set agenda. Identify (negative/positive) trends and implement strategies to gain improvement where necessary
  • Know the pricing sweat spot for your market and your hotel. Set your pricing structure according to optimal market mix to maximize your yield
  • Know your market compression trends and be prepared to maximize rates when available
  • Develop a reward system to encourage successes!

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