Developer tips growth in boutique hotels
Boutique hotels would be the key sector to watch out for, says entrepreneur Andrew Taylor.
Taylor is better known for his six year stint at the local development arm of US hotel giant Marriott International.
A lawyer by training, he has now branched out and set up his own company Cre8tive Property which is now focussing on finding sites in Sydney, Melbourne and Auckland and delivering boutique hotels.
According to Taylor, boutique hotels are a better investment than the big cookie cutter models for one reason: they’re better earners.
He forecasts that more boutique hotels will be developed in Melbourne and Sydney over the next few years simply because the economics made sense.
He estimates that boutique hotels command room premiums of 10 to 20 per cent above average hotels.
“And the food and beverage spend as well as the use of onsite facilities such as business facilities is much higher in a boutique hotel,” Mr Taylor told The Australian.
As an example, he cited the food and beverage spend in the Old Clare Hotel, which recently opened in Sydney.
He said it was “phenomenal’’.
He said boutique hotels were challenging the majors and the big hotels knew all about it.
“There’s a demand for boutique hotels which are strongly connected to local neighbourhoods and strong food and beverage,” he said.
“There’s a global phenomenon for boutique hotels. The big brands know the customer is looking for an independent and unique product reflecting the local urban area. They are aware of it and they are trying to wrestle with it.”
Sydney and Melbourne had areas that were crying out for boutique hotels.
In Sydney, Kings Cross, Surry Hills, Redfern and the eastern suburbs were ideal spots, he said.
Fitzroy, Collingwood, Carlton and the ring around Melbourne’s north were the prime areas.
by Leon Gettler, May 22nd 2017
