Nicole Burg, business development executive at La Vie Hotels & Resorts, Woolloomooloo NSW, Australia, wanted to follow her dad’s footsteps and go to work in the corporate office of a big hotel company. Instead, she first went to work at the property level, learning from the ground up about how the business ticks. At a Marriott in Dallas, Burg participated in a rotational program, spending a lot of time in housekeeping and other back-of-the-house functions. “I made good friends with everybody, and I feel like that was the catalyst to me continuing on in this career,” she said.
Led by hotelier Sarah Derry, the Emerging Leaders panel at HICAP ANZ was put to the test by answering questions ranging from advice to a first-time owner, how’d they invest given the capital and what they think the industry will look like 20 years from now.
On advice for first-time owners, Burg suggested understanding how they can add value and learning more about evolving guest expectations. “Spend time in the hotel because the dynamics of it are just so much more unique than other asset classes that some of these owners might have experienced,” she said.
When considering investment trends, Amelia Perez, development manager for Australasia at Hilton said more developers are looking at hotels as an alternative asset class. “There’s a stronger desire to get things done,” she said. “We have also seen a lot more interest towards franchising with owners [in Australasia] becoming more familiar with the model, as well as more third-party operators entering the market.”
She cited examples of Hilton recently signing Curio Collection by Hilton that will employ a third-party operator as well as a new Tapestry by Hilton deal done as a franchise.
Deery also asked the panel how they would invest their capital in the space given the chance.
Perez said, besides cold storage and data centers, she would look to devalued office buildings for conversions to give them a new life. “It could be quirky lifestyle hotel or a focused-service midscale property,” she opined.
CBRE’s Hill said he’d buy or develop a midscale CBD hotel in Sydney. “I’d try to get it below replacement value to refurbish, reposition and then rebrand it,” he said. “I think that’ll allow some pretty good cash flow and capital appreciation.”
Hayden Longmuir, analyst with Dransfield Hotels & Resorts in Sydney would move up the chain scale in Sydney CBD and create a mixed-use hotel product. “Residential rates are selling at three times the rate per square meter,” he added.
The next question focused on how leaders should grow their emerging talent with Hill saying fostering growth and development is critical. “We see a lot of people come in and exit the industry quickly,” he said, adding that they young talent needs to add value, as well. “It’s mutual.”
Perez suggested not overlooking simple conversations to better understand emerging leader’s goals and objectives. “It’s important to know what their priorities are, what they want to achieve and how they want to grow in their careers,” she said. “Some people might just want to do their job and they’re okay with it. So, it’s really important to talk to them, listen and give them the right tools to grow.”
Lastly, the panel was asked to imagine how the hotel world will change in the next 20 years, especially given technological advancements such as artificial intelligence.
Hill said it is a consensus that AI is going to play a big role in all industries. From a hotel perspective, he pointed to facial recognition for check-in, being able to control the in-room experience with custom light, music and temperature controls. “Even from a revenue point of view, things like dynamic pricing or targeted marketing will roll out pretty quickly with AI,” he said.
Longmuir was quick to suggest that will be a battle between automation and experiences. “The core reason people travel is to experience a place or a meeting, and you’re not going to change that,” he said. “Technology can’t replace that, and we need to see how experience will dominate with instead of having that big front desk you’re going to have an experience manager at arrival.”
Perez brought sustainability into the discussion and said it will become the norm inside 20 years. “Hotels are going to be more than just energy efficient – they will be more self-sufficient with many more Net Zero hotels,” she said. “Right now, we’re seeing a lot more funding, better interest rates if you if you have a sustainable building. In 20 years, more of those properties are going to be built, and it’s going to look great.”
BY JEFFREY WEINSTEIN
