Tailored Management Models for Every Hotel Type

I have recently seen some operators historically known for managing and specialising in certain types of hotel properties, with well-established management models for those segments, embarking on new ventures by diversifying their portfolios with more complex properties while retaining their company’s traditional essence. It goes without saying that undertaking such change processes without implementing internal changes beyond simply hiring additional resources is an unequivocal sign of medium-term failure. In this article, we will explore the different types of hotel properties and the challenges and specific circumstances they face, as well as the management models required for each of them and the qualities their general managers must possess. We will also discuss the risks that may arise when applying the management model of one type of property to another, and why companies specialised in one type of accommodation fail when attempting to manage another.

One-size-fits-all solutions—and believing you know everything—are not the answer

Hotel properties are diverse and cater to the needs of different types of guests. From urban hotels to luxury resorts, each has its own specific circumstances and management models. While they share certain similarities in terms of services and operations, they also have significant differences that can affect their profitability and success.

Types of hotel properties and their management models

The hotel industry comprises a wide variety of property types, each with its own characteristics, challenges and management models. In this article, we will explore the different types of hotel properties and the management models each requires. I will focus solely on specific accommodation segments, given their critical mass and the inherent diversity of their management models. These are Urban Hotels, Beach Holiday Hotels, Resorts or Hotel Complexes, Boutique or Charming Hotels, and Luxury Hotels.

1. Urban hotels

Urban hotels are characterised by their location in central areas of cities and tourist destinations. Their guests are primarily business travellers, although they may also welcome leisure tourists. Managing an urban hotel requires a focus on operational efficiency, personalised guest service, and optimising occupancy and rates. Most revenue comes from room sales, so Revenue Management is key.

2. Beach holiday hotels