Trilogy Hotels model weaves major brands with local management
By Leon Gettler, Talking Business >>
AUSTRALIA’s Trilogy Hotels business has a unique model for hotels here. It’s a model used by 80% of hotels in the US but it’s only just starting here.
To put it simply, most of the big hotel chains in the US – like Accord, IHG, and Marriott – are now just focused on rolling out their brands. The management of the hotel properties is left to the hotel managers. It’s a case of each part of the business working to its strengths.
Trilogy Hotels CEO Scott Boyes said this is now the model that Trilogy is rolling out in Australia.
“Our model is more about the independence of a company that just wants to operate hotels,” Mr Boyes told Talking Business.
“What we do is we come in and we want to operate a hotel or a collection of hotels for an owner.
“Then we make a decision whether the hotel should be branded or not, and if we are going to brand the hotel, then we look for a franchise partner and the best possible franchise partner to brand that hotel and ‘distribute’ the hotel and sell the hotel.
“The reason why we think that’s better is it’s a model where everybody is playing to their strengths.,” Mr Boyes said. “We’ve got a manager who is just focused on management and operating the hotel in its best possible form that an owner wants to deliver – and then we’ve got a brand that provides the distribution, sales and loyalty framework as well as they do.
“What you’ve got in the traditional model is companies that do everything and, as a result of doing everything, sometimes the attention and focus on parts of that remit are not as they should be.
“We’re saying when everyone is focused on what they’re meant to be doing, the owner has a better outcome.”
Big hotel brands hold on to luxury levels
Mr Boyes said brands would continue to operate some big hotels, particularly in the luxury space where the brand should be front and centre.
“But then there is this space where the owner is looking to get operational expertise to tun their hotel for them, to achieve what they want to achieve, and we think that’s a viable alternative to what has been historically operated by the brands,” he said.
“We want to deliver owners an alternative to what has been a brand-operated landscape.”
Mr Boyes said this is now the model in the US but it’s only just come to Australia though his company.
“It has got a proven track record through performance in the US and Europe and we’re looking to bring that model to Australia and make it far more mainstream than it is today,” he said.
Mr Boyes said the group was already signing hotels here to the model So far, it has signed hotels in Sydney, the ACT and Northern Territory.
“The thing we’re most pleased about is we’ve probably had 150-200 conversations and the model itself stands up to the test of scrutiny, questions and everyone gets it,” he said.
“Everyone understands it, it makes sense.”
About Scott Boyes
Before his role with Trilogy, Scott Boyes worked at Accor for nearly 30 years, most recently as senior vice president of operations for Accor’s Pacific North region, where he was responsible for 85 hotels throughout NSW, ACT, Queensland and Northern Territory. His hotel operations expertise includes all segments from luxury to economy and all facets of F&B strategy, from large-scale events to bespoke concepts. Mr Boyes describes himself as “a proud graduate” of the Blue Mountains International Hotel Management School.
Hear the complete interview and catch up with other topical business news on Leon Gettler’s Talking Business podcast, released every Friday at www.acast.com/talkingbusiness
https://shows.acast.com/talkingbusiness/episodes/talking-business-6-interview-with-scott-boyes-from-trilogy-h
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