Get to know Andrew Jolliffe - Director APAC, Ray White Hotels
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Get to know Andrew Jolliffe - Director APAC, Ray White Hotels
Based in Sydney, Andrew Jolliffe is a leading pub broker in NSW.
How did you start in the real estate business?
After a career as an operator in both private equity houses and the listed company arena, albeit in both cases indexed to property related ventures, I was introduced to the real estate opportunity via Ray White Chairman Brian White.
Why did you decide to enter this industry?
Fundamentally, I was of the opinion whilst a contrasting asset class to where I had typically performed roles, a not dissimilar collection of participants orbited the real estate space as did those in my former professional life. Hence, I had surmised that there would be some "rolodex crossover"; as well as many similarities in terms of the pace and complexion of deal structuring.
What do you love about your job? What are some career highlights?
I think that notwithstanding the growing team of employees our business has been fortunate to generate over the past 5 years, the role feature which most resonates with me is the almost primal construct of the "eat what you catch" sales structure. It isn't for the faint hearted, but in and of itself, it plays the role of both deterrent, and enthusiast. Depending, of course, upon your frame of reference and appetite for risk. A career highlight to date would likely be the $500m+ sell side transaction we advised upon when the ASX listed Woolworth's hotel arm acquired a significant portfolio in 2012. This wasn't an easy deal to arrange, but to this day represents an equitable value swap for both the buy and sell side; so there exists post transaction goodwill which still enjoys currency.
What would you say are the biggest issues facing the Australian hotel industry at the moment? What do you think of Airbnb?
A significant issue facing the Australian hotel industry currently is implementation of respective company growth strategies. In a cyclical low in terms of the international debt cycle, when the Australian dollar is attractively priced and where the demand for increased numbers of hotels in gateway cities is patent, there's an inbuilt pressure for groups not to miss the product amplification opportunity. Central to this challenge however, is the availability of suitable sites, the not inconsiderable competition implementing a similar mandate, and the competing interest from other sectors for property when underlying land values are arguably positioned at a value point proud of any other comparable point in the history of land valuations. In relation to Airbnb, I think they are the product of a change in requirements and consumer behaviour. I think ultimately Airbnb is an industry stimulant that deserves acknowledgement, engagement and iteration. There will be others.
What would you like to see done differently in the hotel industry?
I'm not convinced there's any one particular thing the industry needs to do differently. Embracing new technologies and extracting greater profitability and collateral sale opportunities through food and beverage offerings is something of an industry phenomenon over the past 5 years, and I think this area in particular has great distances still to travel. And accordingly, inherent upside events still to take advantage of.
What’s your advice to a young person thinking of entering the real estate business?
Go for it. There are very few vocations available to young people like real estate which rewards perspiration as commensurately as it does hierarchy, or time on the planet.
What is your favorite hotel and holiday destination?
The Ace Hotel in New York springs quickly to mind. A great example of a company which identified counter cyclical geography in the form of an out of favour neighbourhood, and within which to launch a product that deconstructed and then rebuilt the expectations of the consumer. Focusing great attention on detail, produce, positioning; as distinct from position. And all on-message, all of the time.
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