During the pandemic, underperformance moved asset managers and owners to initiate significant changes in brand relationships, most notably Service Properties Trust executing its termination rights with Marriott International and IHG Hotels & Resorts and moving those properties under the Sonesta brand.
The adverse effects of the pandemic are unprecedented and managing hotel assets has never been more challenging, nor has the role of the asset manager ever been more essential. While property performance and valuations are derived from market dynamics and asset manager and operator decisions, the underlying impact of associated technology choices also is increasingly consequential to a property’s ultimate success.
Capturing fair-share of the leisure-led recovery requires properties to have the digital infrastructure to cost-effectively promote and maximize bookings across the proper channels. Likewise, the decision to change or affiliate with a new flag often requires committing to a specific, often mandated technology platform embedded with software that is directly tied to property performance, such as revenue management.
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