I'm seeing more "off-market" hotel properties available lately and have been hearing from investors about the need to have their research include looking into the reputation of the location. With customer service quickly becoming extinct in all industries, hotels have fallen victim to frustrated guests and bad reviews more than many other industries.
Consumers spending in three figures per night for accommodations continue to expect better treatment than going to the front desk and being told to "Call housekeeping". These are aggravations which contribute to fewer and lower tips and bad recommendations, as address in the link below.
Performing market research for investors, developers, and brokers over the years has shown me that determining the extent of customer problems should be a factor in an investor's decision to say yay or nay on a purchase. There are times when a name change and an "Under New Management" sign only makes people say, "Oh, that place" and not want to bother.
Of course, the financial numbers need to work, whether an off-market or listed property. The point is that in the hospitality business there is a lot to be said for the mood of the customer base. Guests want to be greeted, be able to contact a real person with their specific needs, and not be nickel and dimed upon checkout.
Meanwhile, investors (buyers) want to come in to an environment with happy past customers instead of having to start all over again, which lessens the value of their investment.
https://axonify.com/blog/hospitality-survey/
Posts
No comments:
Post a Comment