Hotel & Motel Management - March 17, 2008 - (Page 37) www.HotelMotel.com/digital_edition HotelMotel.com | H&MM March 17, 2008 Special Report 37 Management role changes at boutique By Jason Q. Freed ASSOCIATE EDITOR n the emerging boutique market—a segment that many predict will stand up to a national recession better than others—many third-party management companies that don’t already have independent properties in their portfolio will look to obtain them. Third-party operators have been managing for independent owners for a long time. According to surveys submitted to the The Advisor, Hotel & Motel Management’s end-of-year directory, most third-party management companies already have obtained their first independent or boutique property. These companies are learning that managing an independent as opposed to a brand flag is different, yet very much the same. “It is our company’s philosophy to operate every hotel as if it were an independent,” said Mike Marshall, president and c.e.o. of Marshall Management, based in Salisbury, Md. Still, there are some obvious differences. Although they may have their own standards, independent owners don’t have the strict guidelines set forth by a franchisor, such as quality assurance and customer support. Some of the resources are not available, such as advertising and marketing budgets, so management companies have to step into that role and designate revenue for certain departments. “Some of the internal issues are the same, such as the accounting done in the back of the house,” said Raul Leal, president of Miami-based Tecton Hospitality, which manages branded hotels as well as boutique hotels through the Desires boutique-hotel division. “But [at an independent property] all of a sudden you don’t have a brand providing a variety of brand services. As a management company, you have to have the infrastructure to provide everything a brand would provide.” Marshall said his company operates some large independent properties that are very grouporiented and spend a significant amount of revenue on sales and I marketing. He views it as a tradeoff to the fees a franchisee would pay. “Most franchisees are spending 10 cents on the dollar back to the franchise,” he said. “For an independent, if you take half that, spend 5 cents on the dollar [for sales and marketing], you’re still 5 percent ahead.” Leal also pointed out another benefit independent property owners may miss out on: loyalty or points programs. As an alternative, Tecton has created a recognition and preferences program for its properties. Implemented at the Desires properties, the recogni- tion and preferences program is set up so guests’ preferences are recorded and provided when they check in. “Our concierges are called ‘Managers of See Management | page 38 DISCOVER THE WORLD OF HYATT. Arrive at a Hyatt® hotel anywhere in the world and experience authentic hospitality and the warmth of personal attention that define The Hyatt Touch.® Our exceptional portfolio of world-class hotels and distinguished global brands, attention to local culture and leading technology give Hyatt a cutting edge distinction as an international hospitality leader. For more information, visit hyattdevelopment.com. CIRCLE NO. 130 Hyatt Hotels & Resorts™ encompasses hotels managed, franchised or leased by subsidiaries and affiliates of Global Hyatt Corporation. HYATT, Hyatt Hotels & Resorts,™ Park Hyatt,™ Andaz,™ Grand Hyatt,™ Hyatt Regency,™ Hyatt Place,™ and Hyatt Summerfield Suites® names, designs and related marks are trademarks of Hyatt Corporation. ©2008 Hyatt Corporation. All rights reserved. http://www.HotelMotel.com/digital_edition http://HotelMotel.com http://hyattdevelopment.com http://hyattdevelopment.com
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