Florida’s tourism economy is booming.Record number of heads in beds means record bed tax revenues.While marketing directors of hotels and resorts take the bows for improving revenues year over year, they may not be doing as well as they could, according to hotel management consultant, Gilles Arditi of Southwind Hospitality. (SWH)He should know. One of his company’s specialties is managing properties in receivership.
“Managing a hotel, resort or condo-hotel these days requires attention to revenues, expenses, décor, ambiance, service, positioning, branding, marketing and more. Some of it comes down to knowing what needs to be done and hiring the right team to accomplish it. Success also benefits from a knowledge of the internet and strategies to maximize revenues from OTA’s, the online travel agencies like Trip Advisor, Orbitz and Expedia. Knowing which airlines bring visitors to your market and participating in joint promotions can also help. Getting your guests to tell their Facebook friends how much fun they are having at your resort is another great strategy.”
The president of St. Petersburg-based Southwind Hospitality LLC is in the growing business of turning hotels around in Florida and nationwide. The firm, which includes partners Chad Coldren and Stephen Page, addresses the basic aspects of hotel operation, such as safety of the premises and time spent turning rooms, to outside issues like exposure on Internet booking sites and supplier contracts. Stephen is also involved in building two new properties in Madeira Beach. “Most of the money is made in the rooms, the bar and the restaurants” says Arditi, with 20 years of hospitality management experience, who was regional vice president of operations for Dallas-based Prism Hotels & Resorts before starting Southwind. SWH uses revenue management extensively to create demand at all of their hotels and resorts.
“The easiest part is to cut costs, but the most difficult part is to grow revenue. The goal is to rent the right room to the right guest at the right price, every time!” SWH manages several hotels in the Tampa Bay area: Economy Inn, Inn on the Beach and Quality Hotel on the Beach, all in Clearwater; and SWH will be managing the brand new Hampton Inn and Suites in Clearwater Beach. They took over the Howard Johnson Inn & Suites in Jacksonville after recommending changes a month earlier that led to a 65% increase in occupancy and 25% higher revenue. Some fixes are simple, according to Arditi. For instance, it should take housekeepers no more than a half-hour to clean each room. Green initiatives such as skipping linen or towel changes for guests staying over can help save time, and there are also environmentally friendly methods of cleaning bathrooms that save time & money.
When new management is hired at a hotel, Southwind goes through its a checklist of possible changes, determining whether staffing is right for average occupancy and whether contracts for supplies and services should be renegotiated. Guests hardly notice these changes if done correctly” Arditi says. “Our responsibility is to cash flow the property,” he says. However, he adds that it is also the manager’s responsibility to let an owner know whether the efforts are a lost cause and that a hotel would need to be locked up completely, unless the owner is able and willing to reposition the hotel into a more contemporary facility.
Arditi and his partners — Coldren, vice president of operations and a certified hotel administrator, and Page, a veteran real estate developer—can boast prior success with hotel turnarounds. At the Quality Beach Resort in Clearwater Beach, an e-commerce strategy was put in place resulting in more than $1.5 million in new revenue from Expedia. Targeting hotels to nearby businesses can also generate room nights, Arditi advises. “The owners have to find a niche for their hotels,” says Arditi. Often that goes beyond tourism. Hotels along the Gulf Coast may enjoy a boost from winter tourism or Major League Baseball spring training, but that’s only good for a few months of an entire year, he points out.
Arditi sees opportunity in the Paradise NEWS readership area. Owners wanting to retire as well as owners wanting a full service management company should consider hiring SWH since we provide a turnkey solution to all aspects of hotel, and condo hotel management.
SWH can be found online at www.southwindhospitality.com or call their office (727) 803-6926, or Gilles Arditi on his mobile number 469-286-9514.mobile number 469-286-9514.
Story by By Peter Roos
Date: April 2014