Handing The Reins To The Experts
Leading hotel group outlines advantages of third party management
23rd September 2019
Hotel investors looking to bring upscale brands to the European market look to RBH for its extensive operational experience, and the company’s CEO, Helder Pereira, believes third party management is a growing sector in the hospitality industry – as has become evident in the Americas.
A developing trend in the UK for the last 10 years or so, Pereira sees the third party management market continuing to expand in the coming years, particularly as the hotel asset class becomes a more sought after investment sector in the property market asset class.
Investing in third party management is a win-win for all parties so it’s no surprise the sector is growing. RBH alone is adding some really outstanding properties to its growing portfolio – with Aloft Aberdeen TECA and Hilton Aberdeen TECA now open under our management, and a number of excellent properties about to open, like Courtyard by Marriott Inverness Airport and Hampton by Hilton Manchester Northern Quarter. Looking further into the future, we’re preparing to unveil The Gantry in London – a Curio Collection by Hilton hotel – and Westin London City.
Owners and brands involved in these properties have seen the real benefits of third party management for their hotels, and have trusted RBH as experts and partners in the hotel sector to become the operator of their assets.”
Helder believes that the flexibility and operating focus associated with third party management is especially attractive. He continued:
Our offering is all encompassing, but we work with owners and brands to ensure we adhere to their standards whilst providing signature RBH service. Investors can rest assured that our expertise in the franchise style model, will grow their property’s market share far more rapidly than it would have if managed independently.
Our commitment and ability to adapt and innovate makes us an attractive option. RBH was amongst the first to implement central revenue management, which has been a bedrock of our success and a huge benefit to owners. We also have comprehensive sales and marketing support, which supplements the service provided by the brands, both from a direct and social marketing perspective, which is key for sustainable revenues.”
The luxury end of the market is also embracing the benefits of third party management, and RBH is astutely aware of the strategic benefits of working on such properties for all parties involved.
Part of our strategy is to continue growth within the luxury and boutique hotel sector. Historically brands have retained management in this segment but due to our track record of performance and quality the brands have confidence in RBH and we are delighted to have recently signed hotel management agreements with some of the best in the business for future openings including Westin, Canopy by Hilton and Curio Collection by Hilton.
The operational efficiencies we can provide – which is achievable thanks to the scale of our portfolio – is as attractive to the luxury end of the market as it is to the more select service side of the industry.
And whilst we, like anyone else in the sector, face challenges related to staff recruitment and retention as a result of factors such as Brexit, we have contingency plans in place to put owners’ minds at rest and we feel we are better equipped to face these challenges on their behalf than they would be if operating independently.
Looking to the future we will continue to invest in embracing artificial intelligence, in particular but not limited to, revenue management. We’re researching our options and are even considering creating our own bespoke and innovative service to help mitigate increased costs coming into the business. The time and resource we can invest in innovation and business development as well as economies of scale is what sets us apart – and means the future looks bright for the third party management model.”