Operators of independent hotels believe what sets them apart from branded competitors are service, food and beverage and the ability to deliver unique experiences.
While these factors might be what draws many travelers to one-of-a-kind properties and makes them loyal to the concept of independent hotels, it’s not what enables this segment to be successful and be a relevant class of real estate investment. Technology is an ultimate differentiator.
Advancements in Internet-based cloud technology give independents access to the same computing power of branded hotels. It doesn’t matter whether you’re a 35-room boutique in rural Vermont or a 1,500-room big-box hotel in New York City, computing power levels the playing field.
Using cloud computing, in which systems and programs are shared and stored on off-site servers and accessed through the Internet, provides any property with a complete array of best-in-class computing systems—everything from property management to customer relationship management to point of sales and social media marketing and more—at affordable prices.
At one time, hotel owners had to pay for expensive hardware, software systems, air-conditioned server rooms, maintenance contracts and on-site support personnel. A large convention hotel could amortize the costs over its 1,200 or 1,500 rooms. Installing the same array in a 35-room property was economically unfeasible and, as a result, independents often only had rudimentary technology capabilities.
Now just about everything can be operated from a laptop or two in the property connected to the Internet. No other hardware is required, and the costs are easily justifiable for any size hotel.
Of course, it takes creativity and some skills to maximize the effectiveness of technology, and many operators of small properties might not have the expertise. But simplified systems are available to provide sufficient computing power for the smallest of hotels.
And because independents aren’t locked into the sometimes mundane procedures and protocols required at branded properties, operators can exercise some creativity, especially when they’re using sales and marketing and reputation management systems.
Operators of independent hotels can talk about the advantages brands have in terms of recognition, mass marketing and even the ability to attract top talent, but technology is one crucial way operators of unbranded properties can level the playing field.
Now on to recent news from the world of independent hotels:
Independents post strong July results
Hotels in the independent chain scale in the U.S. posted positive results during July in all three performance metrics, according to STR, the parent company of Hotel News Now.
When compared to July 2013, occupancy for the segment increased 3.7% to 71.4%, while average daily rate rose 4.1% to $120.03. Revenue per available room rose 7.9% to $85.70.
Second pot-themed boutique planned in Colorado
The MaryJane Group signed a one-year lease with the owners of the Mountain Vista Bed and Breakfast in Silverthorne, Colorado, with a plan to transform the five-room property into the second Bud and Breakfast.
The property will convert on 1 October and like the Adagio Bud and Breakfast in Denver, it will offer guests unlimited food, drink, marijuana and marijuana edibles.
Two hotels join Stash Rewards
Two independent hotels in the U.S. joined Stash Hotel Rewards, a points-based rewards system for independent hotels:
- the Magnolia Hotel in St. Louis; and
- the 122-room Hotel Granduca in the Uptown-Galleria neighborhood of Houston.
Deals and developments
- NorthPointe Hospitality Management assumed operation of The Partridge Inn, a 144-room hotel in Augusta, Georgia. Partridge Inn Holdings purchased the hotel for $4.25 million during an auction in June.
- Dolce Hotels and Resorts was named manager of the 1,042-room Q Center in St. Charles, Illinois, the largest conference hotel in the Midwest. The property is certified by the International Association of Conference Centers and has 150,000 square feet of function space.
- Marshall Hotels & Resorts signed management contracts to operate two properties in Cape May, New Jersey: the 42-room Madison Avenue Beach Club and the 35-room Jetty Motel.
- Following an extensive renovation, the Eagle Ridge Resort & Spa in Galena, Illinois, has become a certified member of the International Association of Conference Centers.
- A partnership that includes affiliates of Northview Hotel Group and Apollo Global Management purchased the Hotel Madeline in Telluride, Colorado. The ski-in/ski-out hotel has 89 guestrooms, 11 suites and 60 residences. Terms of the deal weren’t announced.
- Heritage Hotels & Resorts opened Palacio de Marquesa, an eight-room boutique hotel in Taos, New Mexico.
- Following a $100-million renovation, The Edgewater in Madison, Wisconsin, has joined Historic Hotels of America.
The opinions expressed in this blog do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to comment or contact an editor with any questions or concerns.