Tim Crooks heads 'off the plan' management rights sales at Resort Brokers Australia and plays a key executive role in driving growth of the family business. 

Working exclusively in the management rights sales sector for many years, Tim forged a reputation as arguably Australia’s foremost expert on both off-the-plan permanent residential and short-term accommodation management rights and hotels in major apartment projects. His expertise includes the evaluation, set-up, marketing and sale of the business and associated real estate. 

Tim consults to and works closely with leading apartment developers across Australia, including Art Series Hotels/Deague Group, Gurner, Frasers, Abacus, Golden Age, Aria, Metro Property and Consolidated Properties, playing a key role in the nation’s expanding and maturing accommodation industry. 

In recent years, he has been particularly instrumental in growing the management rights market beyond its traditional Queensland base to NSW and Victoria. The increasing acceptance of the management rights model by the hotel industry has also resulted in Tim’s expertise being sought by hotel operators, and he now has a key role as a senior Resort Brokers Hotels agent. 

Know-how, experience, energy, and enthusiasm combine to drive Tim’s sales success. High profile sales have included the management rights and associated real estate of many landmarks including Art Series Hotel portfolio consisting of seven hotels and one management rights, the three towers by Metro Property in Newstead consisting of 715 apartments and the sale of FV by Gurner, the first Peppers in Brisbane with 918 apartments and 72 hotel rooms making it the largest Off-The-Plan management rights ever sold in Australia.

How did you get into the Hotels and Management Rights industry? 

My father, Ian Crooks, established Resort Brokers 33 years ago and developed it into one of the largest agencies specialising in this sector. About eight years ago, I saw an opportunity to explore my own passion for this industry and joined the sales team.

I’ve since carved out a niche as our national off-the-plan management rights specialist, first securing market leadership in Queensland and, in recent years, successfully brokering deals in both the New South Wales and Victoria market spaces.

What are some of your career highlights from your time in the industry? 

Relationships I’ve established with major developers of new accommodation stock, including Aria, Mirvac, Gurner, Metro, Galileo, Pellicano, Abacus and Deague Group are very important to me.  In terms of results, some of my high profile sales are obvious highlights, including the management rights and associated real estate of many landmarks. 

Standout deals include the Art Series Hotel portfolio for $52.5 million, including the likes of The Blackman, The Cullen, The Johnson and The Olsen, and FV by Gurner for $28 million, bought by Mantra as the first Peppers in Brisbane, with 918 apartments and 72 hotel rooms. 

This year, we also sold the new Melbourne CBD Avant tower (55 levels, 456 apartments) operation for Singapore-listed World Class Global to international group Minor Hotels as Victoria’s first AVANI hotel.

What are the biggest issues facing the Management Rights sector in Australia?

Queensland has a very successful management rights sector worth more than $5 billion, so the advantages of onsite management are well known. But New South Wales and Victoria have been slow on the uptake.

The biggest issue is the influence that the real estate / project sales agents having vested interests or referral relationships with property management groups.

This dramatically affects the value of the management rights that would otherwise be of value to the developer. In fact, 60-70% of management rights is derived from the number of letting appointments an operator can secure. 

So developers need to build relationships with investor unit buyers, to educate them on why onsite management delivers greater service and returns than any outside agent ever can. We need to prevent project marketing agents (many of whom are now setting up property management divisions or touting outside agents so they can collect referral fees) from chasing letting appointments. 

If considered early, non-competition clauses can be included in agency agreements signed with project selling agents.

What trends do you expect will emerge within the next decade?

We see Melbourne and Sydney being major growth markets for management rights. And we certainly expect continued growth in apartment hotels. Two things will drive it – the advantages to developers who gain the immediate profit boost at settlement, and the increasing popularity of the model with major operators, most of which are now pursuing asset-light expansion strategies.

Hotel companies have really taken to management rights.  Look at the success Mantra achieved, and now their takeover by Accor.  Minor Hotels and their Oaks brand in Australia, have also taken the lead – all major signs of confidence in management rights.

Hoteliers know it allows them to secure prime locations and greatly expand room inventory for a relatively low buy-in cost, while still controlling key operating real estate on title which underpins the security of the asset. They also see it as secure and low-risk, with long tenure, a guaranteed salary component on the income side and no recurring rental on the negative side of their P&Ls (as seen in hotel leasing).

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

I’d like to see states beyond Queensland embrace management rights more rapidly. Momentum is building with the likes of Gurner, Deague Group, WCL and Abacus Property Group who have already successfully incorporated management rights in NSW and Victoria. I think we’ll see a domino effect as understanding grows and opportunities for apartment hotels grow in these states.

It’s a common misunderstanding that management rights are only viable in buildings that are suitable for short-term, but this is incorrect as permanent residential developments, with high investor profiles, are well suited and highly desirable. Developers are realising that it is not just financially beneficial, but also delivers a superior service and stronger returns than those without management rights in place.

What is your favourite hotel and holiday destination?

That’s a tough call.  I’ve been to lots of memorable places and great hotels around the world.  But I really don’t think you can beat what we have right here, for weather, beaches, great dining and top hotels.  So I’d have to say Sofitel Noosa Pacific Resort.

In a busy schedule, it also helps that such an idyllic escape is so close to home.

See also:

First management rights sold in NSW for almost a decade and Brisbane's Chester and Ella deal​

Little Projects’ $210m Signature Broadbeach development management rights for sale