Based in Sydney, Tate has held key roles in the transaction of several of Australia’s largest hotels and most iconic tourism offerings.
 
Tate’s recent assignments include the likes of the InterContinental Sydney Double Bay and South Molle Island in the Whitsundays.
 
Tate joined JLL Hotels & Hospitality Group in 2014, after working in development and strategic property consultancy. Throughout his time at JLL, he has been involved in over $2 billion of hotel transactions spanning from Sydney CBD trophy assets to French Polynesian Island Portfolios.
 
As a ‘young-gun’ in the industry, Tate has become well regarded for his sound understanding of complex investment structures and fresh approach.
 
How did you get into the hotels industry?
 
To be frank, I had never had a great exposure to Hotels as an asset class before joining JLL Hotels & Hospitality Group, but like many things taking the leap was a blessing in disguise.
 
I had a range of property experience before making the move to Sydney to join the team. I had worked at a large national developer and as a land economist for a small boutique advisory firm. Whilst many people working in the industry come from an operational or ‘hotels’ centric background, my grounding was firmly in property and finance.
 
I believe to have the chance to work in the Hotel industry is phenomenal. I don’t think you’d meet too many people who would disagree with that statement. I’m fortunate to have had the benefit of joining a very busy and well respected team in the industry, but the asset class on its own is fascinating, ever evolving and challenging.
 
What advice would you give to anyone looking to get into Hotels Real Estate?

Two things. Reach out and read.

I know it sounds basic but having a cup of coffee with someone in the industry not only increases your knowledge and network but can often lead to opportunities.

Secondly, the industry in Australia is a pretty small compared to other real estate asset classes. It’s important to know what’s happening not just in Australia but globally. I spend a great chunk of my day reading online publications like The Hotel Conversation and traditional print media which offer great insights into the driving factors behind deals and evolution within the industry.

Is what you studied at University applicable in the real world?

The hardest part of university is seeing the direct correlation to your day-to-day job when you finish when you are in the lecture theatre. I studied a commerce degree in finance and a business management degree in real estate and development at the University of Queensland.

Whilst I can say I have absolutely learnt a lot more on the job then in the classroom, maybe a sign of my focus as a student, the fundamentals are important. There are countless elements of my job that I do every day, whether financial modelling or pitching that I utilise raw skills taught at University. I don’t think it is the be-all-end-all, but it has its place.

What are the biggest issues facing the hotel industry at the moment?

I have a very positive view of the industry in general. There is always a cry of concern over disruption, the likes of Airbnb, etc. However operators have proven to be much more adaptable than other industry incumbants facing the same pressures from technology empowered new entrants.

By the nature of the industry, hospitality is a constantly evolving game. New concepts, themes, brands, investment must all take into account where the world is going not where it has been.

OTA’s continue to be a pressure point, but increased M&A and ‘bulking’ of operators will likely continue to provide more weight for negotiation.

I think the industry as a whole is quite cognisant of the need for constant evolution, however the pressure is absolutely on to keep up.

What changes would you like to see over the next two to five years in the industry for younger peers?

More opportunities to lead change. I’ve been fortunate at JLL, as a company we are very focussed on where technology can enhance our service offering. Through several initiatives I have had the opportunity to take the helm regionally and push role-out’s of new services and technology that ultimately lead to a better result for our clients.
 
I think that like my peers progressing through the industry now, growing up surrounded by digital devices from a young age provides a different appreciation for what we can leverage from them, i.e the ‘digital native’ concept.
 
The industry, whether from an operator, investor, advisor perspective should not just enable but encourage ideas from every rank in an organisations. I think this will create more opportunities for younger members of the industry to have a voice in the direction that we are ultimately going.

What is your favourite holiday destination?

Where do you begin with a question like this? I’m originally from Queensland so naturally I love getting back home. Noosa will always be a fond family holiday destination and a favourite of mine.

See also:

Singapore’s Royal Group sells InterContinental Sydney Double Bay

South Molle Island Sold by Peter Harper and Tate Stubbs of JLL Hotels & Hospitality Group

Get to Know Peter Harper - Executive Vice President, Investment Sales of JLL Hotels & Hospitality Group