Choosing the Right Hotel Management Company: Why Mid-Sized Companies Are a Slam Dunk
By Mike "Woody" Woodward
When I meet new people, they can't help but ask how tall
I am (6'6") and whether I played basketball (yes, at UCONN). There is a
reason that high school and college sports are popular, even for those of us
who don't go pro. The lessons in developing a thick skin, picking yourself up
after a fall, and leading by example stick around much longer than knee
cartilage. I'm still learning from my college team today.
Without being the biggest or wealthiest, UCONN's
basketball team has found the perfect balance to win back-to-back
championships. They can't always back the most famous players or hire the most
prominent coaches, but they can deliver consistent wins that make
national champs. UCONN focuses on finding the right mix of talent that fits the
culture and believes in the goals of the team.
In the same way, mid-sized management companies are focused on offering an ideal mix, whether it's talent, resources, agility or relationships. Companies like HVMG have the means to succeed but remain agile and personal, making them the "just right" option for hotel owners.
1. Personalized Attention with Professional Expertise
Mid-sized companies blend the best of both worlds,
offering both tailored service and extensive industry knowledge.
Large Companies:
-
Often lack personalized service due to managing
a high volume of properties.
-
Properties are grouped into regional clusters,
causing individual needs to be overlooked.
Small Companies:
-
Offer personalized service but may lack the
technology, resources, and industry connections to stay competitive.
Mid-Sized Companies:
-
Provide a balance of personalized service and
operational expertise.
-
Owners receive tailored solutions while
leveraging the experience and resources needed for successful hotel management.
2. Agility and Flexibility in Operations
Agility is important in today's hospitality landscape.
Mid-sized firms outperform larger companies in this area by balancing quick
decision-making with robust support.
Large Companies:
-
Rigid structures and bureaucratic processes can
slow decision-making.
-
Local adjustments, such as changing room rates,
may take longer to approve and implement.
Small Companies:
-
Agile but often lack the resources to execute
large-scale initiatives swiftly.
Mid-Sized Companies:
-
Can make decisions quickly and implement changes
effectively.
-
Offer flexibility and the resources to adapt to
market shifts, like the recent pandemic.
3. Access to Resources Without Overwhelming Costs
Mid-sized firms offer owners access to essential
resources and technology without the steep fees associated with larger
companies.
Large Companies:
-
Provide advanced technology and marketing tools,
but often at high fees, which can erode profits for independently owned
properties.
Small Companies:
-
Offer lower fees but may not have access to the
latest technology or extensive marketing networks.
Mid-Sized Companies:
-
Deliver access to advanced tools comparable to
larger firms without excessive costs.
-
Management fees are more flexible and aligned
with the property's financial goals.
4. Strong Relationships with Owners and Investors
Owner satisfaction is higher with mid-sized companies due
to their proactive communication and transparency.
Large Companies:
-
Owners may feel like "just another
number" with limited direct communication or input into decision-making.
Small Companies:
-
Develop strong personal relationships but may
lack the strategic insights and network to support owners and investors
effectively.
Mid-Sized Companies:
-
Prioritize relationships, giving owners direct
access to executives and decision-makers.
-
Foster collaboration, resulting in more robust
performance outcomes.
5. Proven Track Record of Operational Success
Mid-sized companies achieve vital performance metrics
like RevPAR and guest satisfaction by balancing operational efficiency and
personal attention.
Large Companies:
-
Performance can be diluted across a broad
portfolio, with a focus on corporate-level revenue rather than individual
property success.
Small Companies:
-
May excel in guest satisfaction but struggle to
achieve high operational efficiency and profitability.
Mid-Sized Companies:
-
Combine operational success with personalized
service, leading to higher returns on investment for property owners.
Like UCONN's basketball team, hotel management companies
like HVMG have found the perfect balance of resources, agility, and
personalized service. We offer owners the best of both worlds: hands-on
attention with the tools needed to succeed. For hotel owners looking to
maximize their property's potential, partnering with a mid-sized management
company is a slam dunk.
