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Ever-Evolving Sansiri Thai Property Company Sees Collaboration

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Ever-Evolving Sansiri Thai Property Company Sees Collaboration September 2019 | www.hotelsmag.com Ever-evolving Sansiri Thai property company sees collaboration as the way forward in hospitality. PA Harrisburg, AN OFFICIAL PUBLICATION OF #311 Permit PAID POSTAGE U.S. STD PRST Committed to our owners’ success Drive business Lower costs with Boost loyalty with integrated sales strategic sourcing and with award-winning and marketing global distribution Wyndham Rewards TRYP BY WYNDHAM TIMES SQUARE SOUTH WYNDHAM GARDEN ELK GROVE VILLAGE/O’HARE DAYS INN BY WYNDHAM SAVANNAH NORTH I-95 NEW YORK, NY ELK GROVE VILLAGE, IL PORT WENTWORTH, GA The world’s largest hotel franchise company* Visit wyndhamdevelopment.com or call 800-889-9710 *Based on number of hotels. This is not an offer. Federal and certain state laws regulate the offer and sales of franchises. An offer will only be made in compliance with those laws and regulations, which may require we provide you with a franchise disclosure document, a copy of which can be obtained by contacting Wyndham Hotels & Resorts, Inc. at 22 Sylvan Way, Parsippany, NJ 07054. All hotels are independently owned and operated with the exception of certain hotels managed or owned by a subsidiary of the company. © 2019 Wyndham Hotels & Resorts, Inc. All rights reserved. FEATURES 16 COVER STORY Disrupting the disruptors Thai property developer Apichart Chutrakul’s investment in lifestyle hotel developer and operator SEPTEMBER 2019 VOLUME 20, NUMBER 3 Standard International is part of his bigger strategy to acquire a set of like-minded brands that can learn EDITORIAL/PUBLISHING GLOBAL ADVISORY BOARD from each other and even collaborate on projects to Jeff Weinstein Jonathon Zink compete with entrepreneurs disrupting the hotel space. EDITOR IN CHIEF MANAGING DIRECTOR [email protected] Burba Hotel Network, Costa Mesa, California Barbara Bohn 25 FEATURE MANAGING EDITOR Arthur de Haast [email protected] GLOBAL CEO HOTELS 325 Jones Lang LaSalle Hotels, London David Wood PUBLISHER Robert Hecker Read the list of ever-evolving industry giants. [email protected] MANAGING DIRECTOR Horwath Asia Pacific, Singapore What are the biggest hotel companies in the world, Bert Ganzon SENIOR ART DIRECTOR Ramsey Mankarious and how is the complexion of the 325 changing? CEO Steve Vanden Heuvel Cedar Capital Partners, London SENIOR ART DIRECTOR Robert Stiles 4 NEWS UPDATE Brittney Hackbart PRINCIPAL & MANAGING DIRECTOR ASSOCIATE ART DIRECTOR RobertDouglas New faces of homesharing Carolina Martinez Larkspur, California FREELANCE DESIGN Trevor Ward Making co-work pay Amy Carter MANAGING DIRECTOR W Hospitality Group, Lagos, Nigeria PRODUCTION MANAGER Asia Pacific deal pace 38 Q&A Ovolo CEO Girish Jhunjhnuwala Copyright © 2019 Marketing & Technology Group Inc. All rights reserved. Reproduction in whole or part without written permission is prohibited. SUBSCRIPTIONS: Call 847-697-2111 to begin, change or cancel a subscription. 40 CONSTRUCTION Steel-framed modular evolves MINIBAR ENERGY EFFICIENCY AT ITS BEST DOMETIC RH 418NTE AND NTEG Dometic Noiseless Thermoelectric Cooling Technology (NTE) sets new benchmarks in comfort, cooling performance and energy effi ciency. The RH 418NTE solid door, fl agged with an A++ Rating, and the RH 418NTEG featured with both Triple Glazed and Tempered Glass Door achieving an A+ rating, will help enhancing Guests Experience in total silence. For all our products visit dometic.com • Minimized energy cost using • Noiseless cooling NTE technology • Solid or tempered glass doors • A++ rated (solid door) • 20 l class Dometic GmbH In der Steinwiese 16 57074 Siegen Phone +49 271 692 0 Fax +49 271 692 300 Email [email protected] 0023-19-ad-hotels-magazin-0919.indd 1 02.08.19 13:29 www.hotelsmag.com • HOTELS’ Investment Outlook • September 2019 1 NEWS UPDATE Headline Deck HOMEsweet HOMESHARING FOMO may be the biggest factor driving hotel companies to invest in the space – that, and a little firm called Airbnb. he April launch of Homes & Villas business. Guests booking during the like Home Away and VRBO. Lodging by Marriott International pilot test wanted longer stays, larger firms largely have stood by while the T provided the latest confirmation shared spaces, multiple bedrooms, shared economy model carved out its that homesharing has reached the kitchens and other amenities associated own space, rising from nothing to more mainstream. The lodging behemoth with leisure travel. than 8% of the U.S. hotel market in 10 opened up access to 2,000 premium Marriott had good reason for years, according to hotelappraisers.com. and luxury homes in more than 100 caution: Some rivals have struggled to Globally, according to iproperty.com, destinations in the U.S., Europe, the make a go of it. Hyatt Hotels took stakes Airbnb has more than 6 million listings Caribbean and Latin America. in two homeshare firms, Onefinestay in 191 countries, 150 million total users, Marriott didn’t blindly dive into the and Oasis; on an investor conference call and more than 2 million guests each business; last year it ran a pilot test in last spring, CEO Mark Hoplamazian night; By 2020, projected revenue could Europe. “Can we work in a model with pointed to struggles with consistent be as high as US$8.5 billion. management companies to execute quality, an expensive delivery model and Now, Airbnb is shedding its budget against standards successfully, do guests challenging local regulations. Ulti- heritage with the addition of a new tier, think they had a Marriott experience, mately, he said, it was “hard to get to a Airbnb Luxe, which consists of 2,000 and how does this sit against our core point where you are receiving, from a fi- upscale homes, villas, castles, islands business?” were among the concerns, nancial return perspective, a sustainable and other rentals aimed at high-net- says Jennifer Hsieh, vice president of the model.” Accor, which eventually bought worth travelers. Homes & Villas initiative. Onefinestay, has found profitability a New York-based Researcher and The pilot demonstrated the logistics challenge. lodging consultant Bjorn Hanson says of working with property managers anyone involved in the conventional ho- and how to ensure certain standards. A NICHE THAT CAN’T BE IGNORED tel business is now compelled to at least Guests liked the product, and the data The obvious factor driving hotel compa- test homesharing because of shifts in de- suggested that bookings weren’t steal- nies into homesharing is demand, fueled mand. “If the potential is that large, they ing roomnights from the core lodging by the rise of Airbnb and smaller players need to learn this new business,” he says. 4 September 2019 • HOTELS’ Investment Outlook • www.hotelsmag.com NEWS UPDATE A BeMate residence in the Calle de Blasco de Garay, Madrid For companies like Marriott and Choice The idea is to allay some of the anxiety Hotels that have a large loyalty member associated with staking the success of a base, he adds, offering longer-stay family vacation or a milestone anniver- vacation rental inventory is essential, sary trip on an unknown quantity. both for earning and redeeming points. “We recognize that level of anxiety, The other big motivator: attracting and we want to provide the home that younger customers. “We see the trend really delivers against a family vacation especially for younger travelers to stay — one that will look better than or just in alternative accommodations,” says like the pictures, someone you can call Michael Bellisario, vice president and 24/7, and service levels that you would equity research analyst for Robert W. expect from Marriott,” Hsieh says. Baird & Co., Chicago. “Those people Properties in the Homes & Villas will travel for the next 30 to 40 years, network are not exclusive to Marriott; and if Marriott can gain a little of that Marriott acts as a distribution platform. travel wallet early on, they will see Bonvoy members are expected to drive benefits down the road.” bookings: Survey data showed 27% of Bonvoy members had rented a home in APPROACHES VARY the previous 12 months. “One of our Marriott’s foray into homesharing advantages is members’ ability to lean relies on a network of trusted property into the program to earn and redeem management companies been vetted points,” Hsieh says. and instructed in Marriott’s standards. Choice, which debuted Vacation The homes are professionally cleaned Rentals by Choice Hotels in 2016, offers and equipped with high-speed Wi-Fi, about 30,000 rentals in 50 of the top premium linens and amenities and fam- U.S. vacation destinations; all are run ily-friendly conveniences as requested. by local property management firms. The company, which expects to double its portfolio this year, was motivated by Exterior of a home in Sonoma, data that showed that “many guests were California, part of Marriott International’s Homes & Villas looking for longer stays and ways to use their Choice Rewards points,” says Sara Searls, vice president of digital com- merce. Travelers book the properties on a separate site. Accor took a different approach, buying the upscale Onefinestay home- share brand in 2016 for US$166 million and integrating it with its lodging brands and loyalty program. After the purchase, the company sustained a US$288 million writeoff partly attributed to the brand in the second quarter of 2018. But Accor remains committed to the potential of homestay. The portfolio, which has doubled to 5,000 since the acquisition, is divided between an urban collection, with properties in major U.S. and European cities exclusive to the brand, and a villa collection specializing in “We were the first hotel chain that, instead of fighting resort locations and managed by local Airbnb, embraced it and said we can do it better. Now professionals. Accor’s strategy for Onefinestay is everybody is doing it.” to scale “strategically and sustainably - Kike Sarasola, president, Room Mates Hotels so that we maintain brand integrity and consistency along the way,” says its CEO, www.hotelsmag.com • HOTELS’ Investment Outlook • September 2019 5 NEWS UPDATE Thomas Girard.
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