Running A Hotel Group Without Owning A Building

Posted by on Aug 24, 2017 in Uncategorized | 0 comments

Mode of operating hotels and resorts in the world today is changing rapidly where by investors are experiencing both opportunities and issues in these changes.

The managing team only wants to offer services for the operation services but have no attention to possessing the brick assets. Management will offer all methods of operations but leave the property to the owners.

Running a hotel group without owning a building has been attributed to a number of reasons.

The management has realized that it is easier and profitable to have someone else invest in the property side. There is no need to have a lot of capital tied up in the building. This, therefore, saves the management a lot of time and resources as they will have to concentrate on the operation services.

They have come to realize that the cost of operation follow a fairly persistent pattern while the rate of occupancy will go up at times and is inconsistent. They can basically run the business depending on the daily income of operational services.

Operating a hotel without owning a building gives the management ample time to operate and control all the activities that need to be done to keep the hotel operational. There has been tight control of finances in the industry as the management has developed accounting systems over the years. They are able to account for all the resources in the industry.

Running a hotel group without owning a building is a considerable idea for those investors who do not have the experience in property management. They will leave the management of the property to local or international property managers and are left to carry out what they are experienced in. that is resort and hotel management. The failure of their business is minimal since they will have to concentrate on one aspect.

Take an example of Fiji, there has been a boom in the hotel and resort business in the past two years where these hotels and resort businesses are locally owned but are under international management for marketing and operation functions.

International operators have brought changes in the world today. Since they have hundreds of different locations to manage, they will bring in more advanced technology and practices for the brand and also for the customer.

These international operators have rejected anything that derails excellent service provision and have accepted everything that would enhance service provision.

International managers have well-trained staff in all areas of operation who are brought to reinforce in areas with staff shortage or where the locals need more skillful training. This enables the investors to maintain a high profit throughout the season.

International managers have brought world standards in the hotel and resort business by just bringing their management technologies in every location they are in.

International managers will create a brand which will promise their clients of excellent services that are accepted and understood globally. This is evident when you walk into a new hotel or resorts anywhere in the world, the services you will receive are almost similar to the services that will be offered to you in an old hotel or resort.

International management groups do not own a single building where they are operating making them concentrate more on service Providence to their loyal customers.

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