Some of our best quotes of the week, including two
referencing the hottest segments – all-inclusive and extended-stay.
QUOTE OF THE WEEK
“You’re operating it differently. These will be very high margin businesses – like 60-plus percent GOP margins. But those GOP margins only hold if you do have an average length of stay that is approaching 20 nights because then you’re turning the rooms over less often, using housekeeping less often. That’s what gets you to fewer FTEs – in the single digits – to run the hotels. That requires you to keep y. our discipline commercially and really treat it as a short-term apartment versus an extended-stay hotel.” – Kevin Jacobs, Hilton, on their new Project H3 extended-stay brand Read story
“External capital, be it Brookfield or GIC investing in
hotels, comes into India because there's a great degree of interest arbitrage
between their cost of raising funds internationally, then deploying it in
India. The returns delta made sense for them to deploy more and more capital
for this territory. But interest rates have really heated up – be it in the
U.S. or the U.K., and that the delta between their cost of capital and the
returns they are getting in India will shrink in the future." – Sonica
Malhotra, MBD Group, on investing in India Read story
“There’s a clear opportunity to turn this amenity into a
profit center by creating unique wellness experiences. That means not only
leveraging the market- and revenue-building potential of the spa facility, but
also capitalizing on other services the hotel can provide, from water sports
and yoga to trekking or cycling. Unique packages with post-activity relaxation
or rejuvenation are an easy sell.” – Judith Cartwright, Black Coral Consulting,
on succeeding in the wellness business Read story
SNEAK PEAK (story coming Monday)
“It took these big companies a while to get into this business, and it has served to increase all-inclusive’s exposure and noise. We’ve gone through four or five crises and with our positioning in the luxury tier, we’ve always been resilient and now everyone is taking notice.” – Javier Coll, Hyatt’s Inclusive Collection