"It’s time to start monetize our sunken investments"
First of all – what do I mean when I say sunken investments. I am talking about hard, typically facility, investments that are either underperforming or not even in use. This is especially common amongst the large brands, where rigid standards mandate certain facilities to be in place and are then viewed by local management as a compliance cost item, rather than a potential profit driver.
There is a myriad of areas that I could write about, but for this short teaser, I am going to focus on the 4 and 5 star branded chain hotels and their gym offering. Now we should ask ourselves: Why do hotels even have gyms? Sure, in the 2020s, with very healthfocused emerging millennial business travellers, it makes sense. But hotel gyms have been around since the days of Jane Fonda, and the leotard/legwarmer combos were in fashion.
Most hotels have them because, as I mentioned above, they have to have them to comply with brand standards and local country star classification requirements. But gone are the days when we can get by looking at the minimum possible square footage and a mail-order solitary exercise bike in the corner.
Now, having visited several hotels around Sweden recently, I am delighted right into my core to see hotels investing (or planning to spend) considerable sums in upgraded fitness facilities. And here I have a piece of sage advice: If you are building your new health facilities to impress, then give the architects a free hand, but you will still end up having, a now more expensive, sunken dead investment.
If on the other hand, you want to monetize your existing or new facilities, then before you start renovating or building, you need to engage a specialist to work with you in defining what your concept will actually be and how you can establish a new stream of revenue.
Come and hear more at Lounge Expo 2020 in Stockholm, where I will be speaking on the 1st of April at 12:00 noon on the main stage – there will also be a chance for one-to-one questions afterwards.
By: Daniel Moore, Hotel Management Comsultant, Hoist Group
Ålder: 40 år.
Bor: Stockholm och London. Familj: Me, Myself and I. Bästa hotellminnet: The Pavillions in Madrid. A+ on everything.
Daniel Moore, Hotel Management Consultant, Hoist Group.