BEACON DEVELOPMENT PARTNERS

While many management companies are proficient in brand definition, associated design and articulation, it is traditionally not the hotel managers' responsibility to assign resources and prioritise holistic ROI. Hotel management companies typically concentrate on managers' operational results, not on ROI. This focus can in extreme cases be simplified as a focus on revenue without cost components. This is understandably causing friction between hotel management companies and hotel investors. Conversely, hotel management companies are struggling with hotel investors' unwillingness to prioritise optimising revenues or operational results, often at a high cost. This is often perceived as investors' breach of contract due to unwillingness to follow agreements and brand standards. 

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More and more investors are postponing or entirely declining to employ hotel management companies and/or their design and construction assistance as their services are seen more as an approval or disapproval function and therefore more as a hindrance than genuine assistance and valuable addition to the investor's resources.

Hotel operators' investment value proposition for real estate development services, design and construction or project services are also largely missing, thus resulting in difficulties in engaging investors effectively. 

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The prevailing trend of misaligned investors' and operators' development processes and resources, i.e. diminishing holistic coordination and advisory resources and the resulting lack of appropriate hotel specific expertise in hotel development projects has resulted in the majority of today’s hotel and hospitality investment projects being initiated with false, unrealistic assumptions and insufficient information, culminating in overstretched resources, budgets and programs. Thus, the majority of today’s hotel and hospitality investment projects do not result in effective and profitable hotels or businesses within the intended budget, time frame or even quality and brand standards. Disproportionate amounts of hotel developments never reach completion and the ones which reach completion continue operation with acrimonious investor–operator relationships.