JLL Hotels & Hospitality Group presents the first in a series of interviews with stakeholders in the accommodation industry.  Off the back of the recent sale of the Marco Polo Best Western Mackay transaction, JLL Hotels & Hospitality group’s Senior Vice President, Gareth Closter, sat down with BWH Hotel Group Australasia, MD Graham Perry to discuss what they are seeing in the Australian market.  As one of the largest global operators with over 14 brands and 4,100 hotels across 100 countries, BWH have a great lens on the market.

Gareth: “Graham, congratulations on retaining the Marco Polo Best Western within the group following the sale.  The incoming owners were impressed with how flexible you were able to be for a corporate operator in the space.”

Graham: Thanks Gareth! Flexibility, collaboration and creating value are at the base of the relationship with our partners – It was pleasing for BWH to retain the property and we are extremely excited to be working with another stakeholder in the industry, and introduce them to the benefits of being part of the BWH group.

Gareth: “It looks like an extremely interesting year ahead for accommodation operators, what are your forecasts on ADR’s and occupancy for the rest of 2023?  Which markets are you most excited about in Australia?”

Graham: The strong ADR growth of 2022 will be maintained throughout 2023. Overall demand is pacing well ahead of same time last year with higher booked ADR and longer length of stay. Cities are particular growth areas as the international markets are resuming travel and airline capacities are increasing. Regional markets with a range of both leisure and corporate drivers will do particularly well in 2023.

Gareth: “What are you hearing is the biggest challenge for operators in the sector at this point in time?  Is staffing still the major talking point with operators?”

Graham: Skill shortages continue to be a major issue across the industry however the nature of the issue has changed. Given the exit of experienced hospitality staff in many regions, operators have had to appoint staff with limited experience. Therefore, the loss of “corporate knowledge” within the team and the time consuming nature of training new staff is proving to be the main issue.  Also, hotels understand the importance of their staff in ensuring high levels of guest satisfaction, especially as rates continue to increase.

Gareth: “In terms of the platform that BWH Group offers to operators, what do you think your biggest value-add is?”

Graham: One of the key value propositions of the the BWH global platform is surely our loyalty program: Best Western Rewards.

With 50+ million members globally and 1.2+ million in Asia Pacific the Best Western Rewards program keeps guests returning time and time again, driving higher ADR and providing cost- effective marketing opportunities that successfully deliver incremental business to every hotel.

In today’s marketplace hotel loyalty programs matter more than ever before as they influence hotel choice; from a consumer perspective 9 out of 10 travelers pick their hotel based on their loyalty to a brand as it creates an enhanced experience with added benefits. From a hotel performance perspective, it drives incremental revenue and marketshare growth by stimulating direct bookings and reducing distribution costs via third party platforms.